Business
Vietnam expects to benefit from EVFTA
A seminar themed “European Union - Vietnam Free Trade Agreement: What’s in it for me?” was organised recently in the northern Hai Phong Port City to learn about what the trade pact entails.
The event, jointly held by EuroCham, Vietnam Chamber of Commerce and Industry’s Hai Phong branch, and Deep C Industrial Zone, drew the participation of more than 80 representatives from companies in the city, Hanoi and from EU countries’ embassies in Vietnam.
The audience learned about changes in trading regulations, market access, and regional implications as well as talked about their expectations.
The European – Vietnam Free Trade Agreement (EVFTA) would promote the flow of high-quality investments from the EU into the country with commitments on goods and services market access, the opening of Government procurement, investment policies and policy transparency.
The EVFTA will come into force from 2018, connecting Vietnam - one of ASEAN’s most dynamic manufacturing hubs with the EU – one of the world biggest markets with GDP of over 18 trillion USD, accounting for 22% of the world’s total GDP and a population of over 500 million people.
“EU is a common market with 28 member countries and 508 million people. Goods imported into the EU would have to meet strict standards. However, once the country meets the standards, goods will be able to access all EU member markets,” said Miriam Garcia Ferrer, Head of the Trade Section of the EU Delegation in Vietnam.
Once the EVFTA agreement goes into effect, the EU will eliminate import duties on approximately 85.6 percent of its tariffs lines on Vietnamese products. After seven years, 99 percent of EU tariffs will be removed for Vietnamese products. Vietnamese textiles, footwear, and seafood products (except for canned tuna and fish balls) will incur no import duties within seven years after the agreement takes effect.
Vietnam will eliminate 65 percent of its import duties on EU items and has drawn up a roadmap to eliminate tariffs (over 99 percent) over 10 years. The remaining export items will be offered tariff quotas with an import duty of zero percent.
According to Claudio Dordi, EU-MUTRAP Project team leader, the EVFTA benefits are not only limited to tariffs, but it would also contribute to eliminating other trade barriers and benefit member countries.
Vietnam in the recent years has been one of the most active players in negotiating and implementing free trade agreements, emphasising its privileged position and potential in becoming the world’s manufacturing and trading hub.
The EU is currently Vietnam’s second biggest export market and Vietnam is EU’s 11th biggest source of import. About 900 European enterprises have invested in Vietnam, making it the destination in the ASEAN region with the largest European business community.
The audience learned about changes in trading regulations, market access, and regional implications as well as talked about their expectations.
The European – Vietnam Free Trade Agreement (EVFTA) would promote the flow of high-quality investments from the EU into the country with commitments on goods and services market access, the opening of Government procurement, investment policies and policy transparency.
The EVFTA will come into force from 2018, connecting Vietnam - one of ASEAN’s most dynamic manufacturing hubs with the EU – one of the world biggest markets with GDP of over 18 trillion USD, accounting for 22% of the world’s total GDP and a population of over 500 million people.
At the seminar
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Once the EVFTA agreement goes into effect, the EU will eliminate import duties on approximately 85.6 percent of its tariffs lines on Vietnamese products. After seven years, 99 percent of EU tariffs will be removed for Vietnamese products. Vietnamese textiles, footwear, and seafood products (except for canned tuna and fish balls) will incur no import duties within seven years after the agreement takes effect.
Vietnam will eliminate 65 percent of its import duties on EU items and has drawn up a roadmap to eliminate tariffs (over 99 percent) over 10 years. The remaining export items will be offered tariff quotas with an import duty of zero percent.
According to Claudio Dordi, EU-MUTRAP Project team leader, the EVFTA benefits are not only limited to tariffs, but it would also contribute to eliminating other trade barriers and benefit member countries.
Vietnam in the recent years has been one of the most active players in negotiating and implementing free trade agreements, emphasising its privileged position and potential in becoming the world’s manufacturing and trading hub.
The EU is currently Vietnam’s second biggest export market and Vietnam is EU’s 11th biggest source of import. About 900 European enterprises have invested in Vietnam, making it the destination in the ASEAN region with the largest European business community.
