Transparency, confidence building needed to penetrate European market: expert
Transparency, confidence building needed to penetrate European market: expert
Transparency and confidence building will be key for local firms trying to gain a foothold in the European Union, said an expert at a workshop on July 24 in Can Tho City.
Florian Beranek, a United Nations Industrial Development Organization lead expert in corporate social responsibility, expects the European Union-Vietnam Free Trade Agreement (EVFTA) to be passed by Vietnam’s National Assembly and its counterparts in the bloc.
While several trade pacts have been approved, the EVFTA is a major bridge between Vietnam and EU state members, according to the member of the European Chamber of Commerce in Vietnam (EuroCham).
Duties for tariff lines will be gradually slashed in both Vietnam and the EU in a competitive and fair manner, Beranek said.
Vietnam’s small enterprises are not keen on exports, which pose a real threat, he stressed, adding that certain imports from the bloc to the country can compete with local products.
According to the expert, local producers might consider products from the bloc as high priced; in other words, that they may find it difficult to compete with local products.
However, he pointed out, this view was inaccurate, since firms from the bloc could offer their products, especially chicken and pork, at low prices and of high quality.
The EU is a large market which is mindful of environmental protection, labor quality, and price issues, he said.
Therefore, Vietnamese firms need to build business confidence with their European partners, who he said are seeking firm, long-term relations with them.
Also, local firms must pay more attention to technical and intellectual property issues, which require transparency between them and their partners, he said.
In his opening speech at the workshop, Nguyen Phuong Lam, director of the Vietnam Chamber of Industry and Commerce in Can Tho City, said Vietnam is the second largest trade partner of the EU in the ASEAN region.
He said data indicated that the bilateral trade turnover between Vietnam and the EU has reached US$55.7 billion. Vietnam mainly exports phones, computers, electronic parts, footwear, and seafood to the bloc.
He noted that the EU is the largest importer of Vietnamese seafood, accounting for around 18% of the sector’s total exports.
