EVFTA to give a big push to Vietnamese exports to EU: Minister
The elimination of tariffs will open wider market access for Vietnamese goods.
The EU- Vietnam Free Trade Agreement (EVFTA) will drive up Vietnamese exports to the EU as the union will eliminate over 99% of tariff lines, or 99.7% of Vietnamese exports, for Vietnamese goods to 28 member countries within seven years from the enforcement, said Minister of Industry and Trade Tran Tuan Anh.
Vietnamese Minister of Industry and Trade Tran Tuan Anh
|
This is the highest level of commitment for Vietnam so far and its benefits are significant as the EU is one of the country’s largest export markets.
On the other hand, Vietnam commits to eliminate 48.5% of tariff lines for the EU’s exports, accounting for 64.5% of the exports to the EU after the enforcement and will phase out 91.8% of the tariff lines in the next seven years.
The commitments pave the way for Vietnam to boost exports in a number of commodities such as textiles, footwear, agricultural and aquatic products including rice, sugar, honey, vegetables, and furniture, the minister said.
The Ministry of Planning and Investment estimated that EVFTA would help lift the Vietnamese export turnover to the EU up 20% by 2020 and nearly 44.4% by 2030 compared to the pre-signing period of the trade deal.
The import value from the EU will also rise, however, at a lower rate than that of exports, estimated at about 15.28% in 2020 and 36.7% in 2030.
This agreement also helps Vietnam increase the GDP by an average of 2.18-3.25% in the period of 2019-2023 and 7.07-7.72% by 2033.
The minister acknowledges the challenges for Vietnam. The competition in the markets of goods and services is tougher when domestic enterprises are mainly small and medium-sized businesses. The implementation plans of the signed commitments will be devised, thus the Ministry of Industry and Trade will have to propose to the government the approval of the comprehensive action plans to put the trade deal into practice.
After the signing ceremony, which is slated to take place on June 30, the agreement will need ratification from the EU parliament by the end of this year while EU-Vietnam Investment Protection Agreement (EVIPA) will need approval from all 28 EU members, country by country.
21:14, 2024/10/31
Vietnam, Brazil: Building bridges through shared history and new partnerships
Vietnam and Brazil are forging a future of mutual development, bridging continents through their shared history and new partnerships.
16:41, 2024/10/31
Hanoi develops quality farming models
Agricultural extension in the city continues to face challenges, including the adverse effects of climate change and the complex disease situation affecting crops and livestock.
22:28, 2024/10/30
Suburban Hanoi accelerates OCOP development in co-ops and villages
Local authorities are stepping up their support for members of the One Commune One Product (OCOP) program.
18:35, 2024/10/30
Hanoi to host Vietnam-Asia Smart City Summit 2024
The summit aims to share best practices and promote cooperation among Vietnam's provinces and cities in building and developing smart cities.
16:54, 2024/10/29
Hanoi to attract tourists by showcasing local specialties at wholesale markets
Hanoi aims to enhance supervision of food safety and traceability, along with promoting cashless transactions.
15:53, 2024/10/29
Vietnamese spend $8.9 billion on ecommerce
The total transaction volume in the Jan-Sep period increased by 37.7% compared to the same period last year.
- Hanoi steps up inspections to crack down on unsafe food
- National E-commerce Week, Vietnam Online Shopping Day 2024 set to kick off
- Hanoi's bamboo industry faces shortage of raw materials
- Prime Minister urges quick construction of National Exhibition Center
- SEMIEXPO Vietnam 2024 to foster growth of semiconductor industry
- Vietnam launches national Halal certification center