The utilisation rate of tax incentives set out in the EU-Vietnam Free Trade Agreement (EVFTA) during Q1 soared by over 32%, representing a four-fold rise compared to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
Several of Vietnam’s key export sectors have become magnets for merger and acquisition (M&As) activities, posing a risk of leading enterprises in those sectors being purchased by foreign investors.
Apart from challenges, many opportunities will be offered to the Vietnamese economy in 2021, experts have said.
The National Centre for Socio-Economic Information and Forecasting (NCIF) has released a forecast on Vietnam’s economic performance in 2021, with GDP growth of 6.72 percent and CPI of 4.2 percent under an optimistic scenario.
Local businesses have effectively utilised a number of free trade agreements (FTAs) signed by the country, many of which can be considered to add fresh impetus to boosting exports moving into next year, according to insiders.
If RCEP economies can be united to have a common voice, they will be able to overcome protectionism and unilateralism to develop.
Vietnam is willing and ready to share its experience with the UK if the country wants to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
Competition in Vietnam’s government procurement market is expected to heat up with the involvement of EU contractors, driven by the country’s highest-ever market-opening commitment in this field.
Despite several industries being hard hit by the negative impact of COVID-19 epidemic, the agricultural sector is anticipated to enjoy a rebound thanks to export opportunities brought about by new-generation free trade agreements (FTAs).
Vietnam’s export s are expected to bounce back as many partners are gradually exiting lockdown, in addition to the positive effects of free trade agreements.
The World Bank (WB) has predicted that the EU-Vietnam Free Trade Agreement (EVFTA) could help Vietnam’s GDP and exports grow 2.4 percent and 12 percent, respectively, by 2030, the Ministry of Industry and Trade (MoIT) has reported.
Up to 99% of tariff lines with partner countries are poised to be eliminated over the course of the 10-year roadmap set out in new-generation trade pacts
Strengthening the application of trade defence instruments would be necessary for Vietnam, which was among countries with the highest economic openness level, according to the Ministry of Industry and Trade.