After 4 years of implementation, the Vietnam - EU Free Trade Agreement (EVFTA) has brought positive results: Expanding markets for Vietnam's key export industries such as textiles, footwear, and agricultural products. ... and create opportunities for domestic businesses to access EU equipment, technology and high techniques, and at the same time help Vietnam have conditions to further improve institutions, policies and laws in a transparent direction. transparent, more consistent with international practices.

Positive effects

Effective from August 1, 8, EVFTA is one of Vietnam's first new generation free trade agreements (FTAs) and also the first new generation FTA that the EU signed with a developing country. development in the Asia-Pacific region.

After 4 years of implementation, Vietnam's export turnover to the EU increased by nearly 50%, making Vietnam the EU's leading trading partner among ASEAN countries. In the opposite direction, Vietnam's imports from the EU also increased by more than 40%.

Statistics from the General Department of Customs show that in 2023, trade turnover between Vietnam and EU member countries will reach 72,3 billion USD, with a trade surplus of 34,3 billion USD. Many important Vietnamese products exported to the EU continue to increase, such as: Seafood increased by 29,5%, vegetables and fruits increased by 34,2%, footwear increased by 49,7%, textiles increased by 43,4%, Wood and wood products increased by 85,2%... The main export markets are the Netherlands, Germany, Italy, Belgium, France...

In June 6, export turnover to the EU increased by 2024% compared to May 7,85 and increased 5% compared to June 2024, reaching over 19,54 billion USD. In the first 6 months of 2023, export turnover to the EU reached over 4,28 billion USD, up 6% over the same period in 2024.

Exports to most key markets in the EU increased in turnover compared to the same period in 2023. Of which, the largest exports were to the Dutch market reaching over 6,14 billion USD, accounting for 24,88% of the total. total export turnover of goods to the EU, increasing by 27,12% over the same period in 2023; In June 6 alone, the turnover reached nearly 2024 billion USD, an increase of 1,15% compared to May 13,59 and an increase of 5% compared to June 2024.

Ranked second is the German market with nearly 2 billion USD, accounting for 3,82%, a slight increase of 15,46%; In June 3,27 alone, the turnover reached over 6 million USD, an increase of 2024% compared to May 634,96 and an increase of 7,73% compared to June 5.

Ranked third is the Italian market with nearly 3 billion USD, accounting for 2,53%, an increase of 10,23%; In June 9,23 alone, turnover reached 6 million USD, up 2024% compared to May 385,97 and up 0,6% compared to June 5.

Exports to the Spanish market reached nearly 1,97 billion USD, accounting for 7,96%, an increase of 20,68%; In June 6 alone, turnover reached 2024 million USD, up 308,19% compared to May 7,51 and up 5% compared to June 2024.

Notably, thanks to the EVFTA Agreement, Vietnamese consumers are increasingly having more opportunities to access diverse and high-quality products from Europe at more reasonable prices, when import taxes are reduced. Many products from Europe to Vietnam are reducing according to the roadmap to 0% according to the commitments of the EVFTA Agreement. People have been able to buy agricultural products from Europe (such as vegetables, fruits, milk and cereals) at reasonable prices; Along with that, many imported products such as machinery and equipment from Europe also began to decrease according to the roadmap to help domestic businesses improve production processes and create value-added products. High.

On the contrary, industries with export advantages to the EU such as textiles, footwear and transportation have created many new jobs for Vietnamese workers. Workers also have the opportunity to improve their professional qualifications to meet new requirements from EVFTA.

“The implementation of the EVFTA has marked an important step in the 30-year process of cooperation and development between Vietnam and the EU, opening a new phase for a comprehensive partnership that is in-depth, practical and effective. more effective", Mr. Trinh Minh Anh - Chief of Office of the Interdisciplinary Steering Committee for International Economic Integration commented and assessed that after 4 years of implementing EVFTA, it has shown the positive impacts of this agreement on development. Vietnam - EU trade relations.

Mr. Phan Van Co - Marketing Director of Vrice Co., Ltd. said that thanks to preferential tariffs from EVFTA, Vietnam's rice exports to the EU market have more competitive advantages than rice in other markets. . Although the volume of rice exports to the EU is not much, Vietnam has exported high-quality rice varieties, especially fragrant rice with high value.

Sharing the joy with rice products, Mr. Dang Phuc Nguyen - General Secretary of the Vietnam Fruit and Vegetable Association shared that domestic vegetable and fruit export enterprises have taken good advantage of opportunities from EVFTA to boost exports to other countries. main market. Currently, the EU is Vietnam's third largest fruit and vegetable export market. If in 3, vegetable and fruit exports to the EU increase by 2023% compared to 30, this year, it is forecast that vegetable and fruit exports to this market will continue to grow by double digits, estimated to reach more than 2022 million USD.

Vietnamese coffee is also a product that benefits greatly from FTAs, including EVFTA. According to the Vietnam Coffee and Cocoa Association (Vicofa), in 2022, Vietnam's coffee exports will reach over 1,77 million tons, reaching over 4,05 billion USD. The EU market alone accounts for 38,3% of the country's total coffee export volume. In 2023, the EU will spend about 1,66 billion USD buying coffee from Vietnamese suppliers. EVFTA has helped the coffee industry increase value and continue to expand market share here.

Not only that, in recent times, the EVFTA Agreement has contributed to improving the favorable business and investment environment and promoting direct investment from the EU and other countries into Vietnam. Investment in Vietnam is increasing due to taking advantage of the advantages created from EVFTA, attracting more and more investment capital into high-tech manufacturing fields, attracting large capital flows into service sectors. high quality such as finance, banking, insurance, energy, telecommunications, transportation... According to statistics, as of May 20, 5, the EU's total FDI in Vietnam reached 2024 billion USD (excluding investment through a third party). The EU ranks 29,88th out of 3 countries and territories investing in Vietnam.

Make good use of the C/O "passport".

Along with propaganda efforts of authorities, localities, and the media, proving the origin of goods is increasingly of interest to Vietnamese businesses and the Certificate of Origin (C/O) plays an important role. Acting as a "golden key" to help businesses expand exports, especially helping goods take advantage of tariff incentives under trade agreements from EVFTA.

According to statistics from the Import-Export Department (Ministry of Industry and Trade), in 2023, the rate of using C/O form EUR.1 is 35,2% of export turnover, equivalent to export turnover using C/ O is 15,4 billion USD, an increase of 26,1% compared to 2022.

Some commodity groups have a very good rate of preferential use of C/O form EUR.1 such as seafood (89,2%), vegetables and fruits (88,3%), and rice (taking full advantage of the quota of 80.000 tons of rice). EU grants to Vietnam every year). Footwear - one of Vietnam's key export products to the EU market with an export turnover of 4,8 billion USD, has a preferential C/O issuance rate of EUR.1 up to nearly 100%. In the first quarter of 2024, the rate of using C/O form EUR.1 is 34,3%.

"The above results show that EVFTA has initially promoted the effectiveness of a substantive and highly expected agreement, but this is still an agreement with much room to exploit." – the leader of the Import-Export Department shared and added that, in order to take advantage of the space provided by the EVFTA Agreement, in recent times, Vietnam has made efforts to negotiate with the EU to unify the understanding of standards. Specify specific products in accordance with modern production practices, creating favorable conditions for export enterprises (such as textile and garment products). Regarding rice quotas, the Ministry of Industry and Trade is coordinating with the Ministry of Agriculture and Rural Development to negotiate amendments to the list of rice types to suit the current practice of Vietnam's strong rice types (such as rice ST 24, rice ST 25), replacing rice types DT8, OM5451.

Clearly, the EVFTA Agreement is considered one of the good supports for Vietnam - EU trade. Many ASEAN countries are trying to have an Agreement like Vietnam. Therefore, Mr. Tran Ngoc Quan - Commercial Counselor of the Vietnam Trade Office in the EU and Belgium said that protecting benefits from EVFTA is extremely necessary. And this stems from ensuring that Vietnamese goods are produced and exported in a methodical manner, complying well with EU regulations, especially in terms of quality and product safety.

Notably, according to Mr. Tran Ngoc Quan, currently some Vietnamese product industries are subject to expanded investigation or tax imposition, which affects direct benefits from EVFTA. Therefore, Vietnamese goods exported to the EU need to ensure that there are no goods from third countries disguised as entering Vietnam to benefit from the EVFTA or entering Vietnam to avoid self-defense tax or devaluation and then export to the EU.

Ms. Nguyen Cam Trang - Deputy Director of the Import-Export Department (Ministry of Industry and Trade) also recommended that Vietnamese businesses need to proactively take advantage of opportunities from EVFTA, grasp information about the world market, and the impacts of world economy... to be proactive in production, sales and delivery plans. At the same time, proactively innovate production and business methods, innovate technology, create quality products and goods, better meeting the needs of the EU market.

Source: Vietnam.vn

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