|Up to 99% of tariff lines with partner countries are poised to be eliminated over the course of the 10-year roadmap set out in new-generation trade pacts such as the EVFTA and CPTPP
With regard to the EVFTA, the nation has fully committed to eliminating 48.5% of tariffs lines once the trade deal comes into effect, equivalent to 64.5% of import turnover.
During the initial seven years, the country will be expected to abolish 91.8% of tariff lines for EU products, equivalent to 97.1% of export revenue gained from the EU.
Furthermore, over the course of the subsequent decade, the tariff elimination rate will be roughly 98.3% of all tariff lines, accounting for 99.8% of import turnover.
For the additional 1.7% of remaining EU tariff lines, the nation will apply the roadmap as a means of eliminating import duties over a longer period of time, or alternatively apply tariff rate quotas (TRQ) in line with the World Trade Organization commitments or non-commitments.
With regard to the CPTPP, the country has committed to eliminating import duties on 66% of tariff lines once the agreement takes effect, with 86.5% of tariff lines being eliminated three years after the trade deal first came into force.
Tariffs on all remaining commodities are scheduled be removed under the tax reduction plan for the next five to 10 years. In the case of particularly sensitive commodities, the nation will be required to devise a roadmap of over 10 years or apply a TRQ.
In terms of the EU's commitment to eliminating import duties in line with the EVFTA and the level of EU commitment compared to CPTPP member countries, the Ministry of Industry and Trade noted that as soon as the EVFTA comes into effect, the EU has committed to abolishing import duties on some 85.6% of tariff lines, equivalent to 70.3% of the country’s export turnover to the EU.
Once seven years have passed, the EU will then eliminate import duties on 99.2% of tariff lines, equivalent to 99.7% of the nation’s export turnover. For all remaining commodities, equivalent to approximately 0.3% of export turnover, the EU side has committed to providing the country with tariff quotas on import duties in the quota which stand at 0%.
Under the new-generation FTA, close to 100% of Vietnamese export items to the EU will enjoy the elimination of import duties in line with the roadmap set over the next seven years.
Elsewhere, CPTPP members have committed to eliminating between 97% and 100% of total import tariff lines for goods which originate from Vietnam, depending on the commitments of each respective country and the reduction roadmap.
The implementation of the EVFTA is expected to increase Vietnamese export turnover to the EU by 42.7% in 2025, and grow by 44.37% in 2030.
Most notably, the export growth of several sectors to the EU is expected to enjoy high growth, including agro-forestry- fisheries, rice, sugar, pork, forestry products, cattle and poultry, beverages and tobacco, and seafood products in the period from 2020 to 2030.