The EU-Việt Nam Free Trade Agreement would provide a big impetus to Việt
Nam''s exports to the EU and be key to Vietnamese companies penetrating
one of the largest and most lucrative markets in the world, experts have said.
Jean Jacques Bouflet, deputy chairman of EuroCham in Việt Nam, said Việt
Nam is only the second country after Singapore in Southeast Asia that has
“privileged access” to Europe’s 500-million consumer market following the
signing of the agreement in June.
Việt Nam is among the top 10 exporters to the EU. It is the EU’s second
biggest trade partner and largest exporter in Southeast Asia.
Speaking at a seminar titled “Identifying the opportunities for trade and
investment in the context of EVFTA” in HCM City on April 14, Bouflet said
Việt Nam’s exports to the EU would increase by 20 per cent in a decade and
40 per cent in the following decade.
EU investment in Việt Nam in key sectors such as automobiles and
motorcycles, food, agriculture, aquaculture, green growth, transportation,
and logistics have all contributed to its development, he said.
The EVFTA has a very short time frame for tariff reduction with many
Vietnamese exports to the EU becoming exempt from tariffs within a few
years.
Việt Nam''s competitors in the region such as China, Thailand and Malaysia
have not signed a trade deal with the EU, but that does not mean they never
would, and businesses must move quickly to take advantage while Việt Nam
is in an advantageous position, Bouflet said.
Nguyễn Sơn Trà, deputy head of the WTO and trade negotiation division at
the Ministry of Industry and Trade’s multilateral trade policy department,
said the EU trade deal would be good for Việt Nam since right in the first
year after the deal takes effect taxes on 70.3 per cent of the country’s exports
to the EU would be reduced.
With a population of more than 500 million and a combined GDP of over
US$15 trillion, accounting for 22 per cent of the world''s GDP, the EU is an
extremely large market and the largest exporter and importer in the world
with annual trade of $3.8 trillion.
However, Việt Nam’s trade with the bloc is focused on certain countries like
Germany, France, the UK, Netherlands and Italy.
Thus, there remain other countries with huge potential and opportunities for
Vietnamese enterprises to seize when the EVFTA comes into effect since they
have strength in tropical agricultural products, fisheries, textiles and
garments, footwear, and furniture, experts said.
Recommendations
Trà said the country must adhere to Rules of Origin (RO) when exporting to
the EU, especially because traceability regulations in importing countries
have become increasingly strict.
Bouflet said since the EU is a highly demanding market, so exporters should
also meet food safety and hygiene standards and management procedures
set by it and incorporate social responsibility and transparency of
information related to labour and the production environment.
A legal framework for the origins of Vietnamese products and products with
“Made in Việt Nam” labels should also be created, he said.
Producers’ self-certification of origin must comply with Vietnamese
regulations as well as EVFTA requirements on RO to prevent origin fraud,
he warned.
The use of modern methods would ensure strict control over goods’
authenticity, quality and origin, he added.
Source: Vietnam News, Vietnam Friday, 16 August 2019