Once the EU-Vietnam Free Trade Agreement (EVFTA) takes effect, over 99 percent of tariff on goods from both sides will be lifted, a Vietnamese official has said.
Nguyen Canh Cuong, Vietnamese trade counsellor in Belgium and the European Union
In an interview granted to the Vietnam News Agency (VNA), NguyenCanh Cuong, Vietnamese trade counsellor inBelgium and the European Union, pointed out that apart from garment-textilesand footwear that account for over 10 percent of the market share in the EU,other Vietnamese products make up only from 3 percent to 5 percent of themarket share.
Thanks to the deal, Vietnamese consumers will have more options,he said, adding that products of Vietnam and the EU are supplementary.
Besides, investors from other countries will have to compete with thosefrom Europe in the Vietnamese market, and such competition would benefit thelocal economy, Cuong noted.
The EVFTA and the EU-Vietnam Investment Promotion Agreement(EVIPA), which are set to be signed in Hanoi on June 30, will offer moreopportunities to European enterprises to access the Vietnamese market withtheir rights and interests protected better.
They, together with Vietnamese firms, will create new production capacityand competitive edge, he stressed.
Moreover, domestic businesses will have more chances to accessEuropean technologies, standards and management methods to raise productivity,quality and competitiveness.
The trade pact will also enable Vietnam to step up the export oftra fish and shrimp to the EU in the time ahead, he said, mentioning someVietnamese firms’ plan to ship chicken to the market.
This would be a good direction as the EU has great demand forchicken. However, the businesses should invest in material facilities to meetregulations on food safety and hygiene, Cuong said.
He warned that the EU may issue stricter regulations on foodsafety in the future and urged Vietnamese firms to prepare for that.
European partners can transfer technologies or inject investmentsto help agricultural producers in developing countries to satisfy food safetyrequirements set by the EU, according to the official.
Vietnamese businesses, especially small-and medium-sizedenterprises, should set up partnerships with EU enterprises on the basis oftrust and friendliness, he suggested.-VNA