EVFTA helps offset the recession caused by Covid-19 | Economy

The implementation of the Hanoi (VNA) -EU-Vietnam Free Trade Agreement (EVFTA) has greatly helped offset the economic downturn caused by the outbreak of Covid-19, experts said during the meeting. .. Seminar held on Friday, February 25 in Hanoi.

Workers are working on garments for export to the EU at a factory in Thai Nguyen Province (north). Photo: VNA

Nguyên Thi Thu Trang, director of the WTO and the International Trade Center under the Vietnam Chamber of Commerce (VCCI), said trade between Vietnam and the EU has been recorded since the EVFTA came into force on August 1, 2020. Remarkable growth.

Despite many epidemic-related difficulties, Vietnam’s exports to the EU still reached $ 40.06 billion, and last year’s imports increased 14.1% and 15.3% to $ 16.89 billion, respectively. It is 15.3% compared to 2020.

More than a year after the introduction of EVFTA, more and more companies are using the preferential rates under this contract. From the effective date to the end of 2020, the EUR.1 certificate of origin was used for exports of $ 2.35 billion and 15.1% of shipments to the EU benefited from preferential rates. She said in the first seven months of 2021, the figures were $ 5.15 billion, or 22.5%, respectively.

Economic expert Dr. Lê Dang Doanh said the EVFTA signature diversified Vietnam’s external economic relations to avoid excessive reliance on a single market or single source and mitigate economic risks. He explained that it was a proof that he had succeeded in doing so.

He said the implementation of the agreement would benefit both sides because the economies of Vietnam and Europe are complementary, and that Vietnam can import products that cannot be produced. Vietnam can import advantageous products from the EU. Clothing and agricultural products.

EVFTA will also help promote Vietnam’s institutional reforms, he added.

Trade experts say that in the face of the effects of the health crisis on all trade and investment activities around the world, including Vietnam, the application of EVFTA will offset the recession, diversify market opportunities and create posts. He said it was very important to help-epidemic growth momentum.

They also added that it is also an opportunity for companies to engage in a new supply chain that replaces the traditional supply chain that is currently suspended or stagnant for Covid-19.

However, due to limited capacity, Vietnamese companies still face some problems with the use of preferential rates, they said.

Nguyên ThiThu Trang emphasized the need to improve the capabilities of domestic companies in order to seize opportunities and encouraged companies to be more proactive in all business activities.

In addition, authorities also need to provide the necessary support for market information, trade promotion and improving the business environment, she added. – VNA