Making news

EVFTA hoped to boost Vietnam’s exports: minister

The EU-Vietnam Free Trade Agreement (EVFTA) is hoped to provide a springboard for Vietnam to boost exports, and diversify export markets and products, especially agri-aquatic ones, according to Minister of Industry and Trade Tran Tuan Anh.

The minister said that the EVFTA is a comprehensive, high-quality deal which has had balanced interest and taken into consideration differences in development levels between the two sides.

According to Anh, negotiations for the EVFTA and the EU-Vietnam Investment Protection Agreement (EVIPA) were launched and concluded amidst the sound Vietnam-EU partnership, especially in economy and trade.

Commitments included in the EVIPA will contribute to building a transparent legal and investment environment, thus helping Vietnam attract more investors from the EU and other markets.

The negotiations and implementation of the agreements conveyed a positive message on Vietnam’s determination in promoting its intensive integration into the world economy, said the minister.

Alongside, Vietnam’s major products will enjoy preferential tax rates as well as favourable conditions for trade activities, he said, adding that farm produce, rice, coffee, bee honey, livestock and fruit will benefit most from the deal.

Minister Anh held that products with high prospects in the EU market include apparels, footwear, wooden furniture, IT and industrial products.

If the EVFTA takes effect in 2020, Vietnam’s export to the EU will increase 20 percent and is predicted to reach 70-80 percent in 2025-2030, giving a boost to GDP. At the same time, it will put domestic sectors in a fiercer competition, prompting them to restructure and enhance capacity.

This is a chance for Vietnam to further develop and form a common value chain with partners, thus enhancing the investment efficiency for economic sectors, asserted the minister.

He noted that the EU is the leading trade and investment partner of Vietnam.

The EU’s strong sectors such as services, finance, automobile, processing and manufacturing, IT, high technology, agriculture and food processing are the areas that Vietnam needs investment for comprehensive development, said Anh.

He said that the conclusion of negotiations is the prerequisite, but the readiness of enterprises which will be directly impacted by the deal is more important.

Businesses should be more proactive in accessing resources, particularly, small-and-medium-sized enterprises, should make comprehensive preparations and careful research of opportunities and challenges, thus rolling out responding solutions to improving their products’ quality, competitiveness, and productivity.

He also stressed that businesses should ensure that their products meet requirements on traceability, technical standards, as well as plant and animal safety and hygiene criteria of the EU.