The EU - Vietnam Free Trade Agreement is hoped to facilitate five Vietnamese staples, namely aquatic products, vegetables, wood products, footwear and garments. However, many challenges are awaiting businesses.
Thanks to the EU - Vietnam Free Trade Agreement, revenues from exports to the EU are hoped to increase by 20 percent in 2020 and nearly 43 percent in 2025. Under the deal, more than 99 percent of tariff lines will be removed.
Most Vietnamese businesses are small and medium-sized ones who are short of technology, finance and management capacity. Their production rarely complies with international standards. Given that, domestic firms need to change their mindset to meet requirements in a new era.
In addition to opportunities, the EU - Vietnam Free Trade Agreement poses challenges on local firms as more European partners come to the Southeast Asian market. The important thing is that Vietnamese businesses need to be proactive in seeking markets, improve their competitiveness and follow the rules to avoid losses.-VNA
