Local firms still unfamiliar with EVFTA
Local firms still unfamiliar with EVFTA
The number of local firms deeply engaged in research on the European Union-Vietnam Free Trade Agreement (EVFTA) accounts for a mere 1.55%, while 65.3% of businesses have little to no understanding of the pact, heard attendees at a forum held in HCMC on December 19.
Speaking at the forum themed “Enhancing the capacity for accessing the EU market under the EVFTA,” Vu Xuan Phong, former vice chairman of the Vietnam International Arbitration Center, noted that the signing of the EVFTA had opened up various opportunities for comprehensive cooperation between Vietnam and the European Union.
However, the majority of Vietnamese firms have yet to start any in-depth research on the free trade agreement, he remarked.
“This is a worrying sign if we look to make the most of the pact in the coming days,” Phong stressed, adding that to effectively integrate into the EU market and capitalize on the EVFTA, Vietnamese enterprises should be well-prepared in terms of knowledge and skills and should consider potential risks.
Speaking of Vietnam’s export opportunities to the European Union, Nguyen Thao Hien, deputy head of the European-American Markets Department, under the Ministry of Industry and Trade, stated that the European Union was the country’s second largest buyer in 2018, after the United States.
The growth rate of Vietnam’s exports to the EU market is on a downward trend, as between January and November this year, the country shipped US$38.4 billion of products to the market, down 1.26% year-on-year, Hien explained.
Hien added that under the pact, the European Union had set up strict requirements on the quality of products to protect its customers, so local firms should proactively research Vietnam’s commitments under the EVFTA.
In addition, local firms were advised to comply with regulations on exports to the EU market, map out a business plan for the medium- and long-term periods, raise their competitiveness and build trademarks.
Also, Hien suggested Vietnamese manufacturers enhance their competitiveness by modernizing production and processing systems and improving the quality of their products.
Truong Dinh Hoe, general secretary of the Vietnam Association of Seafood Exporters and Producers (VASEP), noted that local seafood exporters have made preparations to meet requirements set by the European Union to be granted certificates of origin and food safety.
VASEP had set a target of exporting US$2 billion worth of seafood to the EU market this year, but it failed to fulfill the target due to delays in the adoption of the EVFTA, which was signed in June. The association has retained this shipment target for next year, expecting it to account for 20% of total seafood exports.
