31st Sea Games - Vietnam 2021 Covid-19 Pandemic
Home / Economy / Trade - Service
EVFTA opens up opportunities for SMEs to grow
Ngoc Thuy 19:49, 2021/03/26
SMEs are having huge opportunities for development with the presence of free trade agreements, the Industry 4.0 and new business models.

The EU – Vietnam Free Trade Agreement (EVFTA) would lay the ground for small and medium enterprises (SMEs) to grow, as such, they should take this opportunity with both hands.

 Overview of the conference. Photo: congthuong.vn

Ambassador and Head of the EU delegation to Vietnam Pier Giorgio Aliberti gave the remarks at a conference discussing the benefits of the trade deal for SMEs on March 26.

Aliberti, however, urged the Vietnamese government to provide better mechanism and solutions to aid the development of SMEs, while expressing his belief that the EU has made the right decision in investing in developing countries such as Vietnam.

The EU’s Ambassador expected the deal to continue improving Vietnam’s business environment, in turn making it easier for both Vietnamese and European companies operating in the country.

Meanwhile, Vice Minister of Planning and Investment Tran Duy Dong said poor competitiveness is restricting local enterprises from joining the regional and global value chains.

According to Dong, given the fact that the majority of Vietnamese firms is of small size, they are hesitating in allocating funds for R&D as well as expanding international cooperation.

“Local enterprises should draft a long-term vision and improve linkages with other partners to further enhance their competitiveness,” Dong said, noting one of the government’s priorities is to promote stronger linkage between the private and foreign invested sectors.

Head of the Department of Business Environment and Competitiveness Research under the Central Institute for Economic Management (CIEM) Nguyen Minh Thao said SMEs currently account for 98% of total operational enterprises in Vietnam and 40% of the GDP.

“Given its prominent role in the economy, SMEs are having huge opportunities for development with the presence of free trade agreements, the Industry 4.0 and new business models,” Thao said.

“However, small scale of operation could hinder enterprises from improving their productivity and business efficiency,” she added.

The EVFTA is the second trade agreement the EU has concluded with an ASEAN member state, following the recent agreement with Singapore. It represents an important milestone in the EU's engagement with Asia, along with existing agreements with Japan and South Korea.

A pre-Covid-19 study from Vietnam’s Ministry of Planning and Investment showed that the EVFTA and EVIPA would help Vietnam’s GDP grow an additional 4.6% and boost the country’s exports to the EU by 42.7% by 2025.

Meanwhile, the European Commission estimated the bloc’s GDP would be added US$29.5 billion by 2035, along with additional growth of 29% in exports to Vietnam. 

RELATED NEWS
TAG: Vietnam EU EVFTA SME trade deal covid-19 pandemic European Union
Other news
20:16, 2022/16/29
Vietnam to hold a 60-hour livestream shopping with numerous promotions
Online Friday will be the biggest online shopping day of the year, with the participation of numerous companies offering exclusive discounts of up to 100%.
16:05, 2022/05/29
Handicrafts: Key to socio-economic growth of Hanoi's district
The value of industrial and craft production amounted to VND11.3 trillion (US$456 million) in January-September, up 9.2% year-on-year.
18:14, 2022/14/27
Hanoi's tourism shows strong recovery since March 2022
Eight months after the reopening of international travel, Hanoi has seen substantial development in the tourism sector.
07:24, 2022/24/26
Embassy key to boosting the Vietnam-Philippines economic relations: National Assembly Chairman
National Assembly chairman Vuong Dinh Hue visited the Vietnamese Embassy in the Philippines during his tour of this country.
22:11, 2022/11/25
Vietnamese firm exports first electric cars to the US
VinFast, the car-making arm of Vietnam's private conglomerate Vingroup, today shipped 999 electric units to the US.
21:59, 2022/59/25
Hanoi Midnight Sale offers high discounts to attract consumers
"Hanoi Midnight Sale" and "From online to street vending" are trade promotion events running at Big C Thang Long supermarket since November 24.