Workers produce motorised vehicle spare parts at a factory of the Japanese-invested Keihin Vietnam Co. Ltd in Thang Long II Industrial Park, Yen My district, Hung Yen province (Photo: VNA)Hanoi (VNA) – Members of the European Union (EU)have expressed their belief in the positive impact that the bloc’s free tradeagreement with Vietnam (EVFTA) will have on bilateral trade relations.
The deal, signed in Hanoi on June 30, is thefirst the EU has inked with a developing country in Asia, paving the way forthe gradual reduction of up to 99 percent of tariffs between the two sides, aswell as for the opening of the service and public procurement markets.
Vietnam is currently the second biggest ASEANtrade partner of the EU, which is also one of the key trade partners of theSoutheast Asian nation. Bilateral trade reached 55.8 billion USD in 2018.
Vietnam’s key exports to the EU include telecomdevices, footwear, apparel, furniture and agricultural products. Meanwhile, theEU mainly ships to the country machinery, transportation equipment, chemicals,food and beverages.
According to German Federal Minister for EconomicAffairs and Energy Peter Altmaier, the EVFTA will consolidate rules-based tradeand resist protectionism. It will ensure German products’ access to Vietnam aswell as German businesses’ investments in this growingly important market.
Volker Treier, Chief Executive of Foreign Tradeat the Association of German Chambers of Industry and Commerce,said the EVFTA creates a significant impetus to Germany’s economy. Thebilateral trade is currently below 13 billion EUR (14.7 billion USD), but itwill increase considerably to around 20 billion EUR in the next several years.
Meanwhile, Lucie Vondrackova, Director of theDepartment of Trade Policy and International Economic Organisations under theCzech Ministry of Industry and Trade, believed that the agreement will generatebig benefits for both Vietnam and the EU. Particularly, the removal of the 99percent of tariffs will help exporters and importers of both sides save cost.
That will facilitate Czech firms’ exports theyhave strength in like textile-garment, glass, automobiles, mechanic andelectronic products, food and chemicals.
Echoing this, Vice President of the CzechChamber of Commerce Borivoj Minar said the deal will help bolster trade betweenVietnam and the EU, including the Czech Republic, noting that his country hasstrength in and stands ready to cooperate with Vietnam in machinemanufacturing, mining, food and agricultural product processing, and beerproduction.
According to a recent article on the websiteirishexaminer.com of Ireland, the EVFTA is a good deal for the EU memberstates, particularly Ireland, as it will help Irish exporters of goods increasefrom the current 65 million EUR. More importantly, there is the long-standingservices trade connection which last year amounted to exports of 164 millionEUR.
Apart from officials, businesses of the EU havealso put a high valuation on the trade deal with Vietnam.
Pascale Rouhier, Secretary General of theEuropean Liaison Committee for Agricultural and Agri-Food Trade, said the dealwould cause positive impact on Europe’s farm produce with the hope that Vietnamwill become a medium-sized but important export market of the EU.
Once the deal becomes effective, it will promotethe trade of some products that the bloc is unable to produce like nuts,coffee, tea and aquatic products, she added.
For his part, Pierre Groning, head of theBrussels Office of German Chemical Industry Association,described the EVFTA as a deal with a country whose economy is complementary tothe EU’s.
Vietnam is a big producer of many products andcan meet the EU market’s demand. It is also able to import a number of EUproducts, including chemicals, he said, expressing his belief that hisassociation’s chemical exports will increase strongly once the pact takeseffect. -VNA
VNA
