Market issues ironed out for EVFTA

The challenges on market access, circulation of products, and tax in the Vietnamese market are expected to be solved ahead of the European Parliament’s crucial vote for the ratification of the EVFTA scheduled for early 2020. 

Market issues ironed out for EVFTA

Market issues ironed out for EVFTA 

Hundreds of representatives from European enterprises gathered at last week’s high-level dialogue between the prime minister’s Advisory Council for Administrative Procedure Reform (ACAPR) and the European Chamber of Commerce in Vietnam (EuroCham) which discussed the hurdles of doing business in Vietnam and solutions which can help streamline procedures for international companies.

The event is significant as it is aimed to prepare the ground for the smooth implementation of the EU-Vietnam Free Trade Agreement (EVFTA), which is expected to be ratified in early 2020 and take effect within the next year. To that end, Vietnam is required to address the concerns of the European Parliament and remove the barriers that EU companies face in doing business in Vietnam.

ACAPR chairman Mai Tien Dung said “The Vietnamese government is determined to strengthen administrative reform, improve the business climate, increase national competitiveness, and solve businesses’ concerns. In 2019, the government issued three decrees to cut over 100 conditional business lines, thus saving nearly six million working days, or VND893.9 billion ($38.86 million) annually. This work will continue in the time to come.”

Barriers untied

At the dialogue, ministries announced solutions to deal with the barriers to product registration, import-export procedures, customs processes, and tax.

A value-added tax (VAT) refund is now applied for exports and investment, but there is no VAT refund for manufacturing and business. “We will consider revising the prevailing regulation to add a VAT refund for manufacturing and business,” said a representative of the General Department of Taxation.

The other challenge is market access for goods and investment, focusing on product registration, import-export procedures, and customs processes.

Elsewhere, a long-awaited revision of Decree No.116/2017/ND-CP issued in 2017, regulating the requirements for manufacturing, assembly, and imports of motor vehicles as well as the trade of motor vehicles, warranties, and maintenance services, is being completed with one of the key improvements being the category-based approval for imported completely built-up products.

“The draft amendment to Decree 116 is expected to be issued this month to facilitate international automobile manufacturers and importers,” said Dung.

According to the Ministry of Transport (MoT), a circular amending Circular No.03/2018/TT-BGTVT guiding the implementation of Decree 116 from 2018 is now ready for issuance.

The MoT also issued Circular No.46/2019/TT-BGTVT on November 12 to amend Circular No.25/2019/TT-BGTVT, dealing with all concerns caused by the UN Economic Commission for Europe (ECE) test certificates not being accepted for test exemption.

“This new circular, which will take effect from December 27, will accept the ECE certificates for test exemption, and all the certificates granted during the effectiveness of Decree 116, thus crushing the current worries that certificates qualified with the Decree 116 will potentially expire by December 31,” said an MoT representative.

Moreover, many barriers to the circulation of products have been solved. Specifically, the Ministry of Industry and Trade (MoIT) has finished the amendments to Decree No.105/2017/ND-CP from 2017 on wine and spirits trading and submitted it to the government for approval.

 

“The amendments remove the ban on selling beverages with at least 15 per cent alcohol online, to be consistent with the newly-approved Law on Prevention and Fighting Harmful Effects of Liquor and Beer, which will take effect from January,” said an MoIT representative. “There will also be no sanctions if the tax stamps on imported alcohol products are damaged or broken.”

More investment inflows

The dialogue, which follows EuroCham’s recent mission to Brussels to advocate for ratification of the EVFTA, shows the Vietnamese government’s strong efforts to further improve the trade and investment environment and sends a positive signal at a crucial time in the ratification process.

According to Nicolas Audier, chairman of EuroCham, the EVFTA represents a historic change in the EU-Vietnam relations.

“Vietnam is quite an attractive trade and investment destination for European companies and will become even more so once the EVFTA is ratified and takes effect,” he said.

Around 80 per cent of EuroCham members have said that the EVFTA would have either a ‘significant’ or ‘moderate’ impact on their medium- and long-term business plans. Manufacturing will also remain one of the most attractive sectors for European companies. according to EuroCham.

The FTA will leverage high-quality EU investment inflows into Vietnam, driven by greater market access, growing middle-class consumers, and high demand for European products and services; from world-leading cars to medical devices, as well as more innovative service sectors across the board.

“Even before the landmark agreement is ratified and implemented, new European firms have been opening representative offices and branches or are looking for sourcing partners in Vietnam, in anticipation of the benefits that this historic agreement will bring,” Audier told VIR.

“The EU is set to import ever greater quantities of agricultural products and seafood from Vietnam, taking advantage of lower prices once tariff reductions come into effect,” he added.

EuroCham now has over 1,000 members in Vietnam. As shown by statistics from the Ministry of Planning and Investment, investors from 23 out of 28 EU member states has registered about $25 billion into more than 2,200 projects over the course of the past 28 years.

Among EU member countries, Vietnam sees most investment from the Netherlands, France, Luxemburg, and Germany. VIR

Bich Thuy

Agri-trade to blossom through EVFTA

Agri-trade to blossom through EVFTA

Agricultural businesses are amplifying investment to make use of opportunities provided by the EU-Vietnam Free Trade Agreement, which promises to increase Vietnam’s export of agricultural products.

EVFTA to advance German activity across the board

EVFTA to advance German activity across the board

German businesses are looking at Vietnam to grasp new opportunities ahead of enforcement of EU-Vietnam Free Trade Agreement, scheduled for next year.

 
 

Other News

.
From retail to finance, Vietnam all set to rebound with poise
From retail to finance, Vietnam all set to rebound with poise
FEATUREicon  08/06/2020 

Vietnam’s early efforts to weather the COVID-19 storm have helped its economy to reopen much sooner than others, with many sectors that have suffered badly from the outbreak – from retail to finance –now recovering with poise.    

Chance of a lifetime
Chance of a lifetime
FEATUREicon  08/06/2020 

Would the movement of the international capital flow together with the re-arrangement of the global supply chain since the start of the Sino-U.S. trade war and especially under the impact of the Covid-19 pandemic 

“Old normalcy” remains far distant
“Old normalcy” remains far distant
FEATUREicon  07/06/2020 

Vietnam’s air carriers expect their business opportunities to be gradually better again as of the beginning of this year’s third quarter.

Post-pandemic focus for new investments
Post-pandemic focus for new investments
FEATUREicon  03/06/2020 

A series of favourable policies are expected to be issued by the government’s upcoming taskforce in the country’s bid to attract a new investment wave after the health crisis.

Dual lightning strikes to turn Vietnam’s e-commerce equilibrium upside down
Dual lightning strikes to turn Vietnam’s e-commerce equilibrium upside down
FEATUREicon  04/06/2020 

The e-commerce market is looking at two high-calibre developments with the merger of Tiki and Sendo and the entry of heavyweight competitor Facebook. 

Can Vietnam could take advantage of new foreign investment strategies?
Can Vietnam could take advantage of new foreign investment strategies?
FEATUREicon  03/06/2020 

Over the past few decades, many companies worldwide have come to China, seeking a place to set up production bases and do business as they were lured by the country’s low labour costs and enormous domestic consumer market, 

Former top striker Ngoc Cham still living her passion
Former top striker Ngoc Cham still living her passion
FEATUREicon  05/06/2020 

Though she's been retired from football for a decade, former national team striker Do Thi Ngoc Cham is still giving back to the beautiful game.

"Passion - The Mother of Invention", says Vietnamese scientist
"Passion - The Mother of Invention", says Vietnamese scientist
FEATUREicon  02/06/2020 

No half measures. That’s the one thing that has stood out about Vu Ngoc Tam since he was a kid.

An initiative of national strategic importance
An initiative of national strategic importance
FEATUREicon  01/06/2020 

HCMC authorities put forward a proposal to develop the Eastern Creative City during a working session with the Prime Minister early this month. 

Four key measures help Vietnam control coronavirus
Four key measures help Vietnam control coronavirus
FEATUREicon  29/05/2020 

Vietnam did not shy away from broadcasting the seriousness of Covid-19.

What foreign ambassadors say about Vietnam's coronavirus fight?
What foreign ambassadors say about Vietnam's coronavirus fight?
FEATUREicon  29/05/2020 

It seems that Vietnam has adapted to a "new normal" state after it reopened the economy in late April.

Vietnam to study health standard validation before reopening to foreign tourists
Vietnam to study health standard validation before reopening to foreign tourists
FEATUREicon  27/05/2020 

With the Covid-19 pandemic under control in Vietnam, the country now seeks to breathe life back into its tourism industry.

The world in the post-Covid-19 era (Part 6)
The world in the post-Covid-19 era (Part 6)
FEATUREicon  26/05/2020 

Despite the best scenario, the consequences that the invisible Covid-19 enemy has caused to nations and international relations are severe, which will affect the world decades later.

Child-like man in Ly Son finds success in tourism
Child-like man in Ly Son finds success in tourism
FEATUREicon  25/05/2020 

A 34-year-old man with childlike appearance is a the successful investors in tourism in Ly Son District, Quang Ngai Province.

Covid-19 pandemic: Policy responses to stop shutdowns
Covid-19 pandemic: Policy responses to stop shutdowns
FEATUREicon  25/05/2020 

The pandemic and the healthcare crisis it triggers have ignited an economic storm in many countries. If the economic turbulence is not managed well, it will lead to a financial crisis and/or a debt crisis. 

Researcher devotes 30 years to preserving Raglai ethnic language
Researcher devotes 30 years to preserving Raglai ethnic language
FEATUREicon  26/05/2020 

Mau Thi Bich Phanh has spent nearly 30 years of her life researching the value of the ethnic Raglai language.

Vietnam’s automation future at work
Vietnam’s automation future at work
FEATUREicon  25/05/2020 

Are robots coming to take Vietnamese jobs? Are iPads invading Vietnamese workplaces? 

The world in the post-Covid-19 era (Part 5)
The world in the post-Covid-19 era (Part 5)
FEATUREicon  23/05/2020 

Science and technology help people cope with pandemics like Covid-19 and help society adapt to pandemics.

The world in the post-Covid-19 era (Part 4)
The world in the post-Covid-19 era (Part 4)
FEATUREicon  22/05/2020 

American scholar Stephen Walt, a realist and an ardent supporter of nationalism, said the post-epidemic world is a world that is less open, less prosperous and less free.

From small teen to “natural born killer”: A Vietnamese boxer’s journey to Tokyo Olympics
From small teen to “natural born killer”: A Vietnamese boxer’s journey to Tokyo Olympics
FEATUREicon  23/05/2020 

Boxer Nguyen Van Duong is proud to be heading to Tokyo next year after defeating the renowned Chatchai-decha Butdee from Thailand in the Olympics qualifiers in Jordan in March, 

 
 
 
Leave your comment on an article

OR QUICK LOGIN