The Vietnam-Eurasian Economic Union Free Trade Agreement signed onMay 29 is forecast to offer both ample opportunities and toughchallenges to Vietnamese businesses.
According to theagreement, Vietnam will have great opportunities to sell strong productsto the Eurasian Economic Union (EAEU), encompassing Russia, Belarus,Kazakhstan, Armenia and Kyrgyzstan. Aquatic products, garments andleather will be the key beneficiaries of the deal as they enjoy a zeropercent tariff.
Dang Phuong Dung, Vice President and SecretaryGeneral of the Vietnam Textile Association (VITAS) felt upbeat aboutVietnamese textile and garments’ market share in the Union, predictingthat two-way garment trade will grow by 50 percent the first year of theagreement’s implementation and 20 percent over the next five years.
Vietnam will be the Union’s fourth provider of apparel from the current eighth place, she said.
Thanksto the signing of free trade deals between Vietnam and the Republic ofKorea, the EAEU and the EU, a wave of foreign capital has flown into thegarment and textile sector from the outset of this year, broadeningopportunities for Vietnamese products.
However, Dung said thatenterprises need to make efforts to increase their competitiveness, amove to leverage potential spurred by the signed agreements.
Onthe contrary, the deal will bring major competition to the Vietnamesesteel sector as Russian steel has low production costs and high quality,said Nguyen Van Sua, Vice Chairman of the Vietnam Steel Association.
Eachyear, Russia produces 70 million tonnes of steel using advancedtechnology. Each tonne of steel billet produced in Russia costs 50kilowatt hours of power, while Vietnam consumes 10 times higher toproduce the same.
Furthermore, most Vietnamese steel enterprises are small-scale operations and lack advanced technology.
Suasuggested that Vietnamese enterprises need to expand their knowledgeabout international trade to protect their production, and theGovernment should deploy legal trade tools to protect and supportdomestic steel production.
Meanwhile, a representative from theassociation said steel businesses should increase their competitivenesscapacity for effective production and fight trade fraud.-VNA
According to theagreement, Vietnam will have great opportunities to sell strong productsto the Eurasian Economic Union (EAEU), encompassing Russia, Belarus,Kazakhstan, Armenia and Kyrgyzstan. Aquatic products, garments andleather will be the key beneficiaries of the deal as they enjoy a zeropercent tariff.
Dang Phuong Dung, Vice President and SecretaryGeneral of the Vietnam Textile Association (VITAS) felt upbeat aboutVietnamese textile and garments’ market share in the Union, predictingthat two-way garment trade will grow by 50 percent the first year of theagreement’s implementation and 20 percent over the next five years.
Vietnam will be the Union’s fourth provider of apparel from the current eighth place, she said.
Thanksto the signing of free trade deals between Vietnam and the Republic ofKorea, the EAEU and the EU, a wave of foreign capital has flown into thegarment and textile sector from the outset of this year, broadeningopportunities for Vietnamese products.
However, Dung said thatenterprises need to make efforts to increase their competitiveness, amove to leverage potential spurred by the signed agreements.
Onthe contrary, the deal will bring major competition to the Vietnamesesteel sector as Russian steel has low production costs and high quality,said Nguyen Van Sua, Vice Chairman of the Vietnam Steel Association.
Eachyear, Russia produces 70 million tonnes of steel using advancedtechnology. Each tonne of steel billet produced in Russia costs 50kilowatt hours of power, while Vietnam consumes 10 times higher toproduce the same.
Furthermore, most Vietnamese steel enterprises are small-scale operations and lack advanced technology.
Suasuggested that Vietnamese enterprises need to expand their knowledgeabout international trade to protect their production, and theGovernment should deploy legal trade tools to protect and supportdomestic steel production.
Meanwhile, a representative from theassociation said steel businesses should increase their competitivenesscapacity for effective production and fight trade fraud.-VNA
