EVFTA – The New Door To The Vietnam Export Industry In The Time Of Covid-19.

13/02/2020, 14:14 PM

Face with the Covid-19, Vietnam's export of goods to China had a lot of difficulties leading to serious damage to the home country economy, the EVFTA agreement as a new door with many opportunities for Vietnam to export goods into the EU.

"TheCovid-19 epidemic is expected to cause small impacts on the regional economies, including Vietnam. Certainly the export operation to China is very detriment, at least in the second quarter. In this context, the approved EVFTA agreement opens up a great opportunity for Vietnamese enterprises to penetrate the EU market for GDP to 18,000 billion." – Said by the statement from the Minister of Industry and Trade.

EVFTA is a comprehensive, high-quality agreement and it will bring economic benefit to Vietnam, which is nearly 100% of Vietnam's exports to the EU will be removed import tax after a roadmap of about 10 years. Even when EVFTA is in effect, the EU will delete the import tax with approximately 85.6% of the tax line, equivalent to 70.3% of Vietnam's export turnover to the EU.

So far, this is the highest level of commitment a partner for Vietnam has signed in free trade agreements (FTAs). This benefit is especially meaningful when the EU is continuously one of the two largest export markets of Vietnam.

The EVFTA trade agreement is seen as a positive "kick" on the current Vietnamese economy, however, it is possible to take advantage of how much it depends on Vietnam's response.