return icon

EVFTA puts pressure on Vietnamese firms to better competitiveness

The EU-Vietnam Free Trade Agreement (EVFTA) is expected to put pressure on Vietnamese enterprises to increase their competitiveness in order to make inroads into the European market.

The EVFTA is inked on June 30.


The trade deal, which is signed on June 30, is a new generation FTA with highercommitments than regulations of the World Trade Organization (WTO) on marketopening, protection of intellectual property rights, labour, the environment,sustainable development, and dispute resolution.

The EU has given Vietnam some incentives in implementing EVFTA. This is both agesture of goodwill of the EU and proof of the good relationship between thetwo sides.

According to Prof. Nguyen Mai, Chairman of the Vietnam’s Association of ForeignInvested Enterprises, in terms of trade and investment, the EU's commitment toVietnam is higher than those made by the EU within the World Trade Organisation(WTO) and equivalent to the highest level of the EU in some new FTAs.

As soon as the agreement comes into effect, the EU will remove import duties forabout 85.6 percent of tariff lines of Vietnam, equivalent to 70.3 percent ofVietnam's export turnover to the EU.

On the contrary, Vietnam commits toeliminate import duties for 48.5 percent of tariff lines on EU goods when theagreement takes effect, accounting for 64.5 percent of its import turnover fromthe bloc.

As a result, FDI enterprises,import-export firms, distributors, retailers and wholesalers in the market,including contractors, of the two sides will benefit greatly in trade andinvestment cooperation activities, he said.

Packaging shrimp for exports 



Sharing Mai’s opinion, Pham Thi Du, lecturer from the faculty of Economics -Law of the Vietnam University of Commerce, said export enterprises expected Vietnam'sexports to EU member countries to increase by 50 percent by 2020 once the EVFTAis signed and takes effect.

The trade structures of the two sides complement each other in terms ofadvantage and import and export demand, with only a few goods directly competing.

Vu Tien Loc, Chairman of the VietnamChamber of Commerce and Industry (VCCI) stressed that under the pact, thecompetitive edge of Vietnamese goods in the short and medium terms will risefurther  compared to goods of other ASEANcountries in the EU market.

Industries such as seafood; textiles;leather, footwear and bags sector  willget more and more opportunities for development as nearly 90 percent of taxlines in those fields are removed.

It is also important that domestic businesseswill have chances to access hi-tech equipment and techniques from EU countries,which will help increase labour productivity and better the quality ofproducts.

The EVFTA will bring both benefits and challenges to the business community andeconomy of Vietnam, experts said, noting that enterprises themselves need to betake the initiative in updating information related to tariff reduction.

At the same time, they should strive to meet technical,labour and environmental requirements, while investing in renovating technology;training human resources; building and promoting brand names; seeking andsetting up ties with partners in EU member nations; and strictly complying withEU regulations on trade and investment.

State agencies need to roll out policies to promote cooperation between FDIcorporations and Vietnamese enterprises in order to develop the supportindustry, with the focus on a number of key products.

This will not only turn Vietnam into a factory of the world manufacturing manyhi-tech products, but also create increasingly higher added value for domesticenterprises. -VNA


Authority maintains tough stance on safety violations on Hanoi’s “railway café street”

The Vietnam Railway Authority has insisted that it will take a hard line on railway traffic safety violations along Hanoi’s popular "railway café street" sketching across the inner districts in its recent report to the Ministry of Transport.

Foreign hi-tech firms expand investment in Vietnamese market

Molex, the world’s leading supplier of connectors and interconnect components, has unveiled its ambitions to expand its existing manufacturing plant in the Vietnamese market by developing its plant in Hanoi.


Hai Phong lures more than 1.24 billion USD in first nine months

Vietnam rakes in US$16.05 billion from tourism in nine months

Vietnam earned some 394.2 trillion VND (16.05 billion USD) from tourism in the first nine months of this year, equivalent to 78% of the figure recorded in 2019 before the COVID-19 pandemic broke out.


Vietnam invests in 10 energy technologies

Vietnamese poetry collection published in Canada

A poetry collection from five female translators based in Hanoi, entitled Ngũ Sắc Ánh Sáng (5 Sights of Light), has been introduced to Canadian readers by Ukiyoto Publishing.

Multi-billion thermal power project needs more capital

The Ministry of Industry and Trade (MOIT) has asked for ministries' opinions on solutions to problems related to the balance sheet of the Vung Ang 1 thermal-power plant.

The best September photos on VietNamNet

Hot air balloons with the Vietnamese national flag of 1,800m2 on the banks of the Saigon River, Typhoon Noru making landfall in Quang Nam Province, the roofs of many houses being blown away...

BSR to expand Dung Quat Oil Refinery

The Ministry of Industry and Trade (MOIT) has asked Binh Son Refining and Petrochemical JSC (BSR) to clarify some issues related to its project on expanding Dung Quat Oil Refinery.

Dutch conductor to lead concert at Opera House

Conductor Leon Bosch from the Netherlands will lead a concert featuring masterpieces by European composers at the HCM City Opera House on Saturday, October 8.

‘578’ to represent Vietnam at Oscars

An action film starring Miss Universe Vietnam 2018, H'hen Niê, 578: Phát Đạn Của Kẻ Điên (578: Magnum), has been selected as Vietnamese representative at the 95th Oscars, 2023.

USD surges to VND24,000, US$1.7 billion withdrawn from circulation

The State Bank of Vietnam (SBV) withdrew nearly VND41 trillion ($1.7 billion) through open market operations as the US dollar rose to over VND24,000 on September 26-30, 2022.

HCM City to build a series of new traffic projects

HCM City is speeding up procedures to start the construction of key traffic works at gateways by the end of the year, according to HCM City's Department of Transport.

Burning garbage in Hanoi threatens residents' health, property

There have been consecutive fires caused by people's poor awareness, who were burning garbage and straw in residential areas, causing fires recently in Hanoi.

New cargo airline still waiting for license

After the Prime Minister agrees on the establishment of IPP Air Cargo, the Ministry of Transport (MOT) will implement procedures to grant a license to the air carrier, according to MOT Deputy Minister Le Dinh Tho.