After more than 1 month, EVFTA took effect, many export products of Vietnam have had positive changes in the EU market. Estimated value of agricultural and fishery exports to the EU in August 2020 reached US $ 350 million, up 17% compared to July 2020.
According to the report of the International Cooperation Department (Ministry of Agriculture and Rural Development), the Free Trade Agreement between Vietnam and the European Union (EVFTA) signed on June 30, 2019 in Hanoi was signed by the European Parliament. Ratified by Europe and Vietnam's National Assembly, officially took effect from August 1, 2020. This agreement creates an opportunity for Vietnamese goods to lower costs when exporting to the European market, improving their competitiveness with products that have not had an FTA with the EU, especially agricultural products.
The report of the Department of International Cooperation also stated that Vietnam has advantages in production and export of agricultural, forestry and aquatic products, while the EU has a great demand for these items with an import value of about 160 billion USD / year, accounting for about 8% of total annual import value. The signing and implementation of EVFTA create a great opportunity for Vietnam's export of agricultural, forestry and fishery products through tax incentives.
A series of products such as seafood, rice, coffee, honey, wood and wood products, sugar, fresh and processed fruits and vegetables ... exported to this market will be eliminated by the EU according to the EU. roadmap, including many tax items to 0% as soon as the agreement takes effect.
Mr. Nguyen Do Anh Tuan - Director of International Cooperation Department provides preliminary information and statistics after more than a month that EVFTA has been in effect and implemented, many export products of Vietnam have had positive changes in the market. EU market. Estimated value of AFF exports to the EU in August 2020 reached US $ 350 million, up 17% compared to July 2020.
According to Mr. Tuan, coffee products are also considered to add value to the EU market in the near future when the tax rate is reduced from 15% to 0%. In August 2020, Vietnam's coffee export value to the EU market was estimated at nearly $ 76 million, up 34.7% from July 2020, down 0.2% from the same period last year. .
Currently, the EU is the market that consumes the most coffee in Vietnam, accounting for 40% of the total volume and 38% of the total export turnover of the country (average coffee export value to the EU is 1.2–1, USD 4 billion / year for the past 5 years). Among 39 geographical indications of Vietnam committed by the EU to protect when EVFTA is officially put into effect, there is Buon Ma Thuot coffee. This is a huge competitive advantage for Vietnam's coffee industry with competitors in the EU market.
 Export of agricultural, forestry and aquatic products to EU market increased strongly in August
The export value of Vietnam's fruit and vegetable products to the EU market in August was estimated at US $ 14.7 million, up 25.2% over the previous month, and up 6% over the same period in 2019.
Similarly, Vietnamese rice exported to Europe also has positive signals. In one month of EVFTA implementation, the positive effects have spread to the rice export industry. Accordingly, the price of Vietnam's rice exports to the EU market increased popularly from 80-200 USD / ton depending on type compared to the time before EVFTA took effect.
It is estimated that Vietnam's rice export value in August 2020 to the EU market may reach more than $ 1.2 million, up 93.5% from July 2020, and up 35.6% over the same period. period last year.
“It can be seen that the export of some Vietnamese branded rice products to the EU market is not only the initial success of the enterprise itself, but also marks the official milestone of Vietnamese branded rice products. reputation in the international market ”, Mr. Tuan Anh said.
At the ceremony to export shrimp to Europe on September 11, Deputy Minister of Agriculture and Rural Development Phung Duc Tien said that the EVFTA Agreement is considered a new generation of free trade agreements (trade agreements) with commitments. extensive and comprehensive compared to the "traditional free trade deals": the deepest commitment level (tax reduction is almost 0% with a short roadmap); has a strict enforcement mechanism and moreover, it covers areas that are considered "non-traditional" such as labor, environment, state-owned enterprises, transparency, and dispute settlement mechanisms about invest…
"We see this as an opportunity to deeply engage in a global market of high value and quality". According to Deputy Minister Phung Duc Tien, the EU with 27 member countries, 511 million people, GDP per capita is over 35,000 USD, is a large market with high income.
Trade relations between the EU and Vietnam are mutually complementary, not directly competitive. In particular, the EU is famous for high-tech mechanical products, machinery, pharmaceuticals, temperate and processed agricultural products that Vietnam needs. And Vietnam has a strong point in labor-intensive industrial products and tropical agricultural products that the EU market needs.
Through this relationship, Vietnam is expected to absorb modern technology and governance capabilities, gradually standardize and upgrade Vietnam's production processes to link with the global value chain.
Recently, with the activeness and initiative of all levels, sectors, international sectors and close cooperation of EU partners, the implementation of the EVFTA Agreement has taken place quite synchronously, creating New impetus for growth and international integration of Vietnam.
Particularly in the agricultural sector, after more than 1 month, EVFTA took effect, many export products of Vietnam have had positive changes in the EU market. For example, in the field of exported seafood, in August, export orders to the EU increased by 10% compared to July 2020. Other groups of agricultural and aquatic products of Vietnam exported to this market also increased strongly in August.
"Taking good advantage of this opportunity, I am confident that Vietnam's agriculture will continue to rise to new heights in the global value chain", Deputy Minister Phung Duc Tien emphasized.
Comments