VN businesses slow in preparing to enjoy preferential tariffs in EVFTA

 Experts have raised concerns that Vietnamese businesses are slow in preparing conditions to enjoy preferential tariffs in the Viet Nam-EU Free Trade Agreement (EVFTA).

VN businesses slow in preparing to enjoy preferential tariffs in EVFTA
The country expects to surpass Bangladesh to become the second largest textile and garment exporter to the world market after the EVFTA comes into effect. — Photo baodautu.vn

Nguyen Hai Minh, EuroCham vice chairman, said the EVFTA has taken effect from August 1, but only 2 per cent of 8,600 local enterprises know the details of this FTA and about 20 per cent of them know about the agreement at all. The important thing is that they must really understand the content of this agreement and its conditions.

Minh said some textile enterprises are choosing whether or not to meet the rules of origin to enjoy preferential tariffs in this FTA. At present, the main import material of Vietnamese textile enterprises is still from China, so if they do not change suppliers their products can not satisfy the origin requirements in the EVFTA.

“Some businesses say that if they buy the materials from eligible suppliers with higher prices to enjoy tariff preferences, it still won't be as profitable as buying materials from China to enjoy the tariffs according to the EU's Generalised scheme of preferences (GSP) at present.

“However, Vietnamese businesses need to know that right after the EVFTA comes into effect, the GSP tariffs would end,” Minh told the Dau Tu (Investment) newspaper.

In addition, the EVFTA's rules on origin are quite complicated. The complexity is the reason that many Vietnamese face mask manufacturers are ineligible to export to the EU, even if they already have customers, because they do not have the required medical certificates.

Vietnamese businesses also do not understand clearly about food hygiene and safety conditions when working with European partners, Minh said.

Another problem is the material region. He said, at the beginning of this year, when EU enterprises announced they would stop using plastic packaging, instead of recyclable materials, many Vietnamese businesses have immediately changed to use paper and bamboo packaging.

However, when the EU businesses required information about material region for producing the packaging, Vietnamese enterprises could not identify eligible material regions.

The planning of raw material regions for Viet Nam’s many export products is challenging for businesses and also the Government, Minh said.

 

Truong Van Cam, deputy chairman of the Viet Nam Textile and Apparel Association, said the association continues to request the Ministry of Industry and Trade to complete the Textile and Apparel Development Plan until 2035, which must clarify requirements for the construction of concentrated industrial parks for textiles and clothing, including waste water treatment.

Therefore, the textile and garment industry could have large dyeing and textile projects with products meeting the EVFTA's origin requirements and also CPTPP requirements, Cam said.

The country expects to surpass Bangladesh to become the second largest textile and garment exporter to the world market after the EVFTA comes into effect. It could be difficulty reaching this goal if the domestic textile and garment sector does not have a supporting industry, Deputy Minister of Industry and Trade Tran Quoc Khanh said.

Vu Tien Loc, chairman of Viet Nam Chamber of Commerce and Industry (VCCI), also agreed with this proposal and said that it is an important issue that needs attention from ministries and sectors.

Viet Nam could not promote textile and garment exports if the country does not create favourable conditions to develop the auxiliary industry for the textile and garment sector as well as call on investment to this industry.

VCCI has proposed the National Assembly to formulate the Law on Auxiliary Industry for receiving a new wave of foreign direct investment, Loc said.

The State also needs institutional reforms, complete the legal framework, and improve investment and business environment to meet the EVFTA requirements, he said. — VNS

Vietnam fulfills international commitments as EVFTA takes effect

Vietnam fulfills international commitments as EVFTA takes effect

Vietnam will continue to fulfill its international commitments so that it can take full advantage of the EU-Vietnam Free Trade Agreement (EVFTA) and recover its economy amid a resurgence of COVID-19 pandemic.  

Many businesses indifferent to EVFTA

Many businesses indifferent to EVFTA

EVFTA is expected to pave the way for Vietnam’s enterprises to exploit the EU market and its 500 million consumers and GDP of $18 trillion.

 
 

Other News

.
Foreign investment into Vietnamese start-ups expected to rise despite COVID-19
Foreign investment into Vietnamese start-ups expected to rise despite COVID-19
BUSINESSicon  17/09/2021 

Foreign investment into Vietnamese startups is predicted to increase although the COVID-19 pandemic has left negative impacts on the economy, according to experts.

Businesses propose new regulations to replace Directives 15, 16
Businesses propose new regulations to replace Directives 15, 16
FEATUREicon  18/09/2021 

Associations of businesses have asked the Prime Minister to issue new directives on pandemic prevention and control to replace Directives 15 and 16 with regulations that fit the new circumstances.

Pandemic will continue to hit State budget revenue in the coming months
Pandemic will continue to hit State budget revenue in the coming months
BUSINESSicon  17/09/2021 

The Ministry of Finance (MoF) is concerned the COVID-19 pandemic would continue to affect State budget revenue in the coming months.

VIETNAM BUSINESS NEWS SEPTEMBER 17
VIETNAM BUSINESS NEWS SEPTEMBER 17
BUSINESSicon  17/09/2021 

Vietcombank to spend $3.6m to buy Vietnam Airlines’ new shares

American investor earns VND1,000 billion from Vietnam’s hot stock
American investor earns VND1,000 billion from Vietnam’s hot stock
BUSINESSicon  17/09/2021 

The largest private equity fund management company in the US has just sold Vinhomes shares and made a profit of more than VND1,000 billion (nearly US$ 43.5 million) after a year.

Vietnam’s auto market hits bottom
Vietnam’s auto market hits bottom
BUSINESSicon  17/09/2021 

Although car manufacturers have cut prices deeply to stimulate demand, the Vietnamese auto market witnessed a record decrease in monthly sales over the past five years when fewer than 9,000 cars were sold in August 2021.

E-commerce turns small businesses into big cross-border traders
E-commerce turns small businesses into big cross-border traders
BUSINESSicon  17/09/2021 

Many business owners have found major partners after joining international B2B marketplaces.

Airfare scheme may deprive 43 million passengers of opportunity to fly at low cost
Airfare scheme may deprive 43 million passengers of opportunity to fly at low cost
FEATUREicon  17/09/2021 

If a proposed airfare scheme is applied, the fees will make it impossible for low-income earners to travel by air.

FDI in Vietnam, resilience during challenging time
FDI in Vietnam, resilience during challenging time
BUSINESSicon  16/09/2021 

Vietnam’s commitment for success of FDI companies and foreign investors can be seen through the Government’s efforts to improve the investment climate over the last few years.

VIETNAM BUSINESS NEWS SEPTEMBER 16
VIETNAM BUSINESS NEWS SEPTEMBER 16
BUSINESSicon  16/09/2021 

Foreign investors maintain confidence in Vietnam’s economy

Hanoi office market will see large changes after pandemic
Hanoi office market will see large changes after pandemic
BUSINESSicon  16/09/2021 

The office market in Hanoi is experiencing many changes amid the COVID-19 pandemic in terms of rental prices, occupational profile and new demands for office spaces, according to Savills Vietnam.

GDP to reach 3.5-4 per cent this year
GDP to reach 3.5-4 per cent this year
BUSINESSicon  16/09/2021 

The country’s GDP this year is expected to reach 3.5-4 per cent if the COVID-19 pandemic is controlled in September and a 'new normal' achieved from the fourth quarter, said Minister of Planning and Investment Nguyen Chi Dung.

Vietnam’s economy will recover after lockdown is lifted: WB economist
Vietnam’s economy will recover after lockdown is lifted: WB economist
BUSINESSicon  15/09/2021 

Vietnam’s economy will recover on the back of solid growth achieved in the first half of 2021 after the lockdown is lifted, Dorsati Madani, Senior Economist at the World Bank (WB) Vietnam, has said.

Fruitful results in 30-year dialogue relations and a new chapter for 18-year CABIS
Fruitful results in 30-year dialogue relations and a new chapter for 18-year CABIS
BUSINESSicon  16/09/2021 

The 18th China-ASEAN Business and Investment Summit (CABIS) was held on September 10-11 in Nanning, Guangxi, China.

HCM City seeks VND17.2trn from state budget for key urban projects
HCM City seeks VND17.2trn from state budget for key urban projects
BUSINESSicon  15/09/2021 

HCM City has sent an urgent request to the Ministry of Planning and Investment for a VND17.2trn (USD753m) state fund allocation during the 2021-2025 period to complete three key projects in the city.

Many Vietnamese seafood exporters are not subject to US anti-dumping tariffs
Many Vietnamese seafood exporters are not subject to US anti-dumping tariffs
BUSINESSicon  15/09/2021 

The US Department of Commerce (DOC) has announced the preliminary results of the 17th period of review (POR17) for the period from August 1, 2019 to July 31, 2020, regarding Vietnam’s tra and basa fish (pangasius) exported to the US.

Vietnam builds ‘fortress’ to fight pandemic, not the economy
Vietnam builds ‘fortress’ to fight pandemic, not the economy
FEATUREicon  18/09/2021 

The economy reflects the operation of all 13 southern cities and provinces, and different behaviors of each is hindering economic development.

Local specialties plummeting in price
Local specialties plummeting in price
FEATUREicon  16/09/2021 

While Phu Yen lobster prices are surging, VND100,000 per kilogram more expensive than the previous crop, other aquatic specialties including ca lang (hemibagrus) and hau sua (oyster milk) have seen prices plummet, causing big losses for farmers.

Hope rests on economic recovery plan
Hope rests on economic recovery plan
FEATUREicon  16/09/2021 

Hopes for the ease of social distancing measures and recovery of the economy are rising along with the decrease in the nber of new cases.

Vietnam earns over $1 billion/day in 15 days in August
Vietnam earns over $1 billion/day in 15 days in August
BUSINESSicon  15/09/2021 

In the last 15 days of August 2021, Vietnam’s exports grew strongly compared to the first 15 days of the month.

 
 
 
Leave your comment on an article

OR QUICK LOGIN