EVFTA affirms VN’s position

The European Council on June 25 passed the EU-Viet Nam Free Trade Agreement (EVFTA) and the EVIPA and authorized the European Commission to ink the documents with Viet Nam on June 30 in Ha Noi. 

Minister of Industry and Trade Tran Tuan Anh highlighted the significance of the two agreements in the relations between Viet Nam and EU. 

According to Mr. Tuan Anh, Viet Nam has already signed about 12 bilateral and multilateral FTAs with foreign partners. 

However, the EVFTA is of extreme significance in Viet Nam’s integration strategy as it is a new generation of FTA with high-quality and comprehensive standards.  Negotiations for the EVFTA and the EU-Viet Nam Investment Protection Agreement (EVIPA) were launched and concluded amidst the sound Viet Nam-EU partnership, especially in economy and trade.

With 12 chapters and two attached protocols, the EVFTA is expected to provide a springboard for Viet Nam to boost exports, and diversify export markets and products, especially agro-aquatic ones.

In addition, thanks to the EVFTA and EVIPA, Viet Nam’s position will be affirmed vigorously in the international arena as one of countries which made great and responsible contributions to globalization and trade facilitation. In addition, the deal also took into consideration differences in development levels between the two sides.

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

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

Viet Nam’s key exports will enjoy preferential tax rates and favorable 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, Viet Nam’s export to the EU will grow by 20% and is predicted to reach 70-80% 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 Viet Nam to further develop and form a common value chain with partners, thus enhancing the investment efficiency for economic sectors, asserted the minister.

The Minister proposed businesses be more proactive in accessing resources, particularly, small-and-medium-sized enterprises, should make comprehensive preparations and careful research of opportunities and challenges.

Enterprises were recommended to ensure that their products meet EU’s requirements on traceability, technical standards, as well as plant and animal safety and hygiene criteria./. 

By Khanh Phuong