Business
Vietnam-EU free trade pact could boost GDP 15%
The potential payoff from the EU-Vietnam Free Trade Agreement (EVFTA) that could be concluded and ratified as early as 2014 is an estimated 10-15% boost in GDP along with a concurrent expansion of Vietnamese exports by 30-40%.
The information was unveiled by Maylis Labayle, Advocacy Manger of European Chamber of Commerce (Eurocham) at a seminar in Hanoi on September 24, discussing opportunities and challenges in the EU market.
She said two-way trade volume between Vietnam and the EU has been on a steady uptick over recent years, reaching EUR26.6 billion in 2013. Of which, Vietnam’s exports to the EU market was EUR21.3 billion and imports from the market was just EUR5.3 billion.
Last year, Vietnam’s trade surplus with the EU hit EUR16 billion, which is a huge advantage for Vietnam and bodes well for exports upon the signing of the EVFTA, said Ms Maylis Labayle.
Ms Labayle added another advantage for Vietnamese businesses is that their employees will receive further training support and transfer of technologies from the EU subsequent to the FTA coming into effect.
She noted the EVFTA will also provide a fresh impetus for the signing of the Trans-Pacific Agreement (TPP) in the not so distant future.
However, the expert cautioned Vietnamese exports to the demanding market should obey principles of transparency and protection of consumer rights through trade protection measures.
Ta Hoang Linh, Deputy Head of the Vietnam Trade Promotion Agency (VIETRADE) under the Ministry of Industry and Trade said the EU is now Vietnam’s most important trade partner, which has set high standards for goods to penetrate the market.
At present, just 42% of Vietnamese goods enjoy the EU's Generalized scheme of preferences (GSP). However, if the EFTA is signed, at least 90% of Vietnamese goods would be exempt from tariffs.
Therefore, Vietnamese businesses should seize every opportunity to improve their competitiveness and obey regulations on standards, technical requirements to penetrate the market.
Especially, businesses should update information on the FTA negotiations, regulations on certificates of origin, and devise plans to join the regional supply chain. In addition, they should learn more about technical standards and consumer habit to fully tap export opportunities.
As of the end of 2013, the EU had 1,402 projects in Vietnam with investment of US$18,024 billion. The EU poured US$656 million in foreign direct investment capital in Vietnam in 2013, ranking it sixth among foreign investors.
The final negotiation round of the VEFTA are set to take place in Danang on September 25-26. Experts predict that the agreement will be signed late this year.
Last year, Vietnam’s trade surplus with the EU hit EUR16 billion, which is a huge advantage for Vietnam and bodes well for exports upon the signing of the EVFTA, said Ms Maylis Labayle.
Ms Labayle added another advantage for Vietnamese businesses is that their employees will receive further training support and transfer of technologies from the EU subsequent to the FTA coming into effect.
She noted the EVFTA will also provide a fresh impetus for the signing of the Trans-Pacific Agreement (TPP) in the not so distant future.
However, the expert cautioned Vietnamese exports to the demanding market should obey principles of transparency and protection of consumer rights through trade protection measures.
Ta Hoang Linh, Deputy Head of the Vietnam Trade Promotion Agency (VIETRADE) under the Ministry of Industry and Trade said the EU is now Vietnam’s most important trade partner, which has set high standards for goods to penetrate the market.
At present, just 42% of Vietnamese goods enjoy the EU's Generalized scheme of preferences (GSP). However, if the EFTA is signed, at least 90% of Vietnamese goods would be exempt from tariffs.
Therefore, Vietnamese businesses should seize every opportunity to improve their competitiveness and obey regulations on standards, technical requirements to penetrate the market.
Especially, businesses should update information on the FTA negotiations, regulations on certificates of origin, and devise plans to join the regional supply chain. In addition, they should learn more about technical standards and consumer habit to fully tap export opportunities.
As of the end of 2013, the EU had 1,402 projects in Vietnam with investment of US$18,024 billion. The EU poured US$656 million in foreign direct investment capital in Vietnam in 2013, ranking it sixth among foreign investors.
The final negotiation round of the VEFTA are set to take place in Danang on September 25-26. Experts predict that the agreement will be signed late this year.
