EVFTA: Opportunities and challenges
(QNO) - The European Union (EU) - Vietnam Free Trade Agreement (EVFTA) officially coming into effect on August 1st, 2020 has promoted the EU-Vietnam trade cooperation.
The EU is one of the major export markets for Vietnam. In 2020, the bilateral trade turnover between Vietnam and the EU was USD 49.79 billion.
The Vietnam’s export markets in the EU were the Netherlands, Germany, France, Italy, Austria, Belgium, Spain, Poland, Sweden, and Slovakia.
In the first 6 months of 2021, the trade value between the EU and Vietnam reached USD 27 billion, up 18% compared to the same period of last year. It is a remarkable achievement in the global context of the Covid-19 crisis.
It is believed that vaccines will help control the Covid-19 pandemic and EVFTA will open new opportunities for the development of export markets.
Both businesses and consumers then enjoy benefits from removing tariffs and opening markets.
There will be an increasing demand for Vietnamese products in the EU, including vegetables and fruits, aquatic products, and key industrial products such as textiles, footwear, and furniture.
However, the EU requirements for the quality of goods are considered a challenge to Vietnamese businesses.
It is also an opportunity for Vietnamese businesses to increase their production capacity, improve their competitiveness for sustainable development, and penetrate deeper into the global value chain.