On August 1, 2020, the EVFTA Agreement officially took effect after it was ratified by the National Assembly of both sides. The Agreement is expected to promote two-way trade, opening up new opportunities for the economic development of Vietnam in general as well as for exporting enterprises in particular, especially in the difficult context of the Covid-19 pandemic. cause.
According to economic experts, the approval of EVFTA has opened up great opportunities for Vietnamese businesses to penetrate the potential EU market with more than 500 million people, with a gross domestic product (GDP) of about 18,000 billion USD. . According to calculations, the EVFTA Agreement will help Vietnam's export turnover to the EU increase by about 42.7% in 2025 and 44.37% in 2030 compared to the time without the Agreement.
This agreement also contributes to making Vietnam an important "link" in the network linking with leading economies in the world; create favorable conditions for Vietnamese goods and services to participate more deeply in global value chains, and promote economic growth.
In particular, Vietnam's ratification of EVFTA at this time is appropriate and timely, creating momentum for a domestic economic recovery after the Covid-19 pandemic. The Agreement will be a huge boost to Vietnam's exports, helping to promote bilateral trade relations between Vietnam and the EU in a more comprehensive and deeper manner.
According to TS. Dinh Viet Hoa - President of the National Start-up Association, the EU is the second largest commodity import market in the world with a total import turnover of about US $ 2,338 billion per year. The implementation of EVFTA helps Vietnam have more advantages to enhance the competitiveness of products, including agricultural and aquatic products and agricultural products.
Along with that are other conditions for the implementation of the trade facilitation mechanisms that Vietnam has signed with 27 countries, allowing the organization to access the market in a more methodical and specific way and enjoy the conditions for more publicity and transparency in market access. Among the Free Trade Agreements Vietnam has signed and implemented, EVFTA is considered to be a comprehensive, high quality, open and balanced agreement of interests for both Vietnam and the EU.
“The tax reduction will lead to an increased flow of Vietnamese goods such as coffee, seafood, machinery, components, footwear, textiles to 27 member countries. If the implementation goes smoothly, Vietnam will not only have better access to European goods and services, but also benefit from strong export growth. In addition, the Agreement also promotes trade relations between Vietnam and the EU to a new height, contributing to the recovery of economic growth on both sides after the profound effects of the CoVid-19 pandemic ”, PhD. Dinh Viet Hoa emphasized.
It can be said that Vietnam in general and Vietnamese businesses in particular are facing a great pressure after the Covid-19 pandemic. According to statistics, each month, Vietnam has about 910,000 businesses closed. The implementation of the EVFTA Agreement can be seen as a lifesaver for businesses to help them recover in the future. The most important problem for businesses is the market and output, which in the current period, businesses are facing many difficulties. The EVFTA Agreement is expected to open a large market to help businesses.
Economic expert Nguyen Minh Phong said that EVFTA is the hope, the pillar, and a very important fulcrum for Vietnamese enterprises in the current context.
Because with EVFTA, Vietnamese businesses will enjoy preferential tariffs; have access to technology and high quality products from the EU. At the same time, it is supplemented with raw materials, creating a connection between supply and demand to form a new supply chain.
“In order to keep the initiative and efficiency in investment with EU partners, Vietnamese enterprises need to re-see themselves,“ reposition ”themselves in terms of capacity, forte as well as limited adjustment to meet new requirements set out. In addition, businesses should also be cautious, need to carefully evaluate all factors to minimize risks, thereby make effective use of benefits and opportunities from EVFTA ”, PhD. Nguyen Minh Phong said./.
Source: VOV.vn
2.jpg)
Comments