After two years of enforcement, the EU - Vietnam Free Trade Agreement (EVFTA) has generated initial results, but rising inflation in the EU and the euro depreciation are affecting Vietnamese firms, requiring urgent solutions to those difficulties.
Vietnam has taken various measures in a bid to protect the interest of Vietnamese products and exporters in the EU markets, according to the Trade Remedies Authority of Vietnam under the Ministry of Industry and Trade (MoIT).
Vietnam has joined many multilateral and bilateral trade agreements in recent years. The question is what the country receives from these trade relations.
China remained the largest supplier of goods to Vietnam in 2020 as Vietnam ran a trade deficit of US$35.2 billion with the neighboring country last year, up 3.7% against 2019, according to the Ministry of Industry and Trade.
Vietnam's export value saw a year-on-year increase of 4.7 percent to an estimated $82.9 billion in the first four months of this year, according to the General Statistics Office (GSO).
The COVID-19 pandemic has already made it quite difficult for Vietnamese goods to enter the US and EU markets and the outlook for the second quarter is also gloomy, according to Cong Thuong (Industry & Trade) newspaper.
Vietnam ran a trade surplus of $2.8 billion in the first quarter of this year, higher than 1.5 billion USD recorded in the same period last year, despite the growing COVID-19 pandemic in the country’s major export markets.
Vietnam has taken full advantage of the CPTPP to gain strong growth in exports to Canada and Mexico, according to the Ministry of Industry and Trade (MoIT).
The US has proposed to reduce the import tax on some of its agricultural products, including chicken, some fruits, wheat, potato, pork and dairy products.