Businesses continue to utilise incentives from EVFTA

15:53 16/06/2021
The EU-Vietnam Free Trade Agreement (EVFTA) has been effectively utilised by local firms, with 180,551 EUR.1 certificates of origin (C/O) being issued for goods exported to the EU worth a total of US$6.6 billion since the enforcement of the trade deal in August 2020.

According to details provided by the Ministry of Industry and Trade, the majority of certified goods included footwear, aquatic products, textiles and garments, agricultural products, cereal products, and electronic goods.

Tran Thanh Hai, deputy director of the Import and Export Department, said the robust export growth to the EU market can largely be attributed to domestic firms' efforts to maximise the numerous advantages of the EVFTA and effective dissemination on the trade pact’s incentives through channels such as the FTA Portal, the Internet, and Facebook.

Furthermore, the recent shipments of Vietnamese fresh lychees to the EU market, in particular France, has affirmed the quality and brand of the fruit and other Vietnamese goods in the international market.

Experts have noted that the EVFTA also poses a range of challenges for Vietnamese enterprises, forcing them to adjust production methods and enhance their overall competitiveness by investing in advanced technologies and equipment that are capable of launching products in line with the stringent requirements of the EU market.

With regard to agricultural products, the nation has 39 sets of geographical indications that are protected in the EU, thereby paving the way for local farm produce to gain entry to the demanding market.

Most notably, more than 6,335 hectares of fruit growing areas nationwide have applied VietGAP/GlobalGAP standards and have been granted area codes for export to the fastidious market.

With regard to the local textile and garment industry, domestic businesses have also invested in yarn production with a higher localisation rate as several raw material production areas have been successfully established on a larger scale.

Furthermore, enterprises are gradually shifting to importing raw materials to markets that have signed trade agreements with the EU in order to meet the rules of origin set out as part of the trade pact.

The EVFTA is ultimately considered to be the gateway that can help Vietnamese goods make deeper inroads into the potential EU market of approximately 500 million people.

The trade deal is expected to increase Vietnamese export turnover to the EU by 42.7% in 2025 and 44.37% ahead in 2030.