After 10 years of negotiation, legal review and approval, EVFTA officially takes effect from August 1. Vietnam and the EU committed to eliminate almost all tariff lines according to the 7-10 year schedule.
After being ratified by the National Assembly of Vietnam and the EU Parliament, the EU-Vietnam Free Trade Agreement (EVFTA) officially came into effect on August 1st.
This is the first free trade agreement that the EU has signed with a developing country in Asia. At the same time, this is also the most advanced and open agreement that Vietnam has ever participated with unprecedented favorable commitments.
The two sides pledged to abolish almost all tariff lines according to the 7-10 year schedule. The few remaining tax lines also enjoy quotas with 0% tax rate. At the same time, the EU and Vietnam are committed to opening attractive investment and service markets such as banking and finance, e-commerce, logistics ... and new areas such as government procurement, trade and Sustainable Development...
DOUBLE BENEFIT AGREEMENT
Speaking at the forum for trade and industry cooperation with EU partners on July 31, Deputy Minister of Industry and Trade Hoang Quoc Vuong affirmed that EVFTA will promote trade and investment relations between Vietnam and the EU, thereby meet the needs of people and businesses both sides.
The commitments in EVFTA are expected to expand the market for Vietnam's strong export goods such as tropical agricultural products, seafood, footwear, textiles, wooden products, etc. automotive products, pharmaceuticals, chemicals, machinery, auxiliary equipment ... of the EU.
In particular, EVFTA creates great advantages for European investors to thrive in the market which is considered the most dynamic in Southeast Asia and the gateway of the region.
According to research by the Ministry of Planning and Investment, together with the EU-Vietnam Investment Protection Agreement (EVIPA), EVFTA is expected to boost Vietnam's GDP by 4.6% and export to the EU by more. 42.7% by 2025. The European Commission estimates that EU GDP will increase by 29.5 billion USD and exports to Vietnam will increase by 29% by 2035.
In the last 18 years, the two-way trade turnover between Vietnam and the EU has increased nearly 14 times from 4.1 billion USD in 2000 to 56.45 billion USD in 2019. Of which, EU is the second largest export market. two of Vietnam (after the US), and Vietnam is the second largest trading partner of the EU (after Singapore) in ASEAN.
The latest survey in the European Business Association in Vietnam (EuroCham) shows that 74% of the business leaders of the member firms consider EVFTA will have a positive impact on business activities of enterprises in the period. short time. In the long term, the positive rating rate is up to 90%.
Sharing the expectation after EVFTA, Mr. Guru Mallikarjuna, General Director of Bosch Vietnam, said that this new agreement will push Vietnam to improve the quality of its personnel and accelerate the digital transformation process at businesses in order to improve the competitiveness in the international market.
In terms of investment, for this entrepreneur, EVFTA not only encourages FDI, but more precisely encourages high-quality FDI, ie investment in technology and components that bring economic value. High demand in the supply chain. Therefore, like many other European businesses in Vietnam, he is waiting for mechanisms to attract FDI into these areas.
In this regard, he also proposed Vietnamese small and medium enterprises (SMEs) to become partners of multinational companies. Thereby, Vietnamese SMEs can integrate the technologies, operating processes, production and business of these large units into daily operations to improve productivity and quality.
PRIORITY IS THE FORCE OF EACH BUSINESS
Deputy Minister Hoang Quoc Vuong said that Vietnamese businesses need to change their global approach, strive to actively improve production capacity and ability to participate in international trade to take advantage of the EVFTA Agreement.
Deputy Minister of Foreign Affairs Bui Thanh Son handed a note of approval of EVFTA to EU Ambassador to Vietnam Giorgio Aliberti on June 18. Photo: Ministry of Foreign Affairs.
Mr. Tran Ngoc Quan, Vietnam Trade Counselor in Belgium and EU recommends that each business needs to be self-aware in order to establish sustainable and long-term relations with the EU.
At the same time, not participating in commercial frauds, origin frauds to profit from EVFTA is also a way for businesses to protect themselves and their businesses.
Deputy Minister Hoang Quoc Vuong affirmed that the Government and the Ministry of Industry and Trade, along with the system of Vietnamese Trade Offices in EU countries, will make every effort to support Vietnamese enterprises in market information, connecting with EU partners. and support to solve difficulties and problems arising in the process of market penetration and business.
At the same time, Vietnam will also select businesses that have the strength, determination and desire to cooperate with European businesses.
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