EVFTA helps offset the recession caused by COVID-19

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Nguyên Thi Thu Trang, Director of the WTO and International Trade Center under the Vietnam Chamber of Commerce (VCCI), has been 1 since the EVFTA came into effect.er In August 2020, trade between Vietnam and the European Union (EU) recorded remarkable growth.

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

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

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 will be used for exports of US $ 2.35 billion and 15.1% of shipments to the EU will benefit from preferential rates. In the first seven months of 2021, she said the numbers were US $ 5.15 billion and 22.5%, respectively.

Economic expert Lê Dang Doanh said EVFTA’s signature is to diversify Vietnam’s foreign economic relations to avoid excessive reliance on a single market or a single source of funding and mitigate risks to the economy. Explained that it is a proof of success.

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.

Diversification of market opportunities

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 due to 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.