Many commentators consider the EVFTA to represent a comprehensive and high-quality agreement that balances the interests of both parties.
With the trade pact set to come into force in the near future, nearly 100 per cent of the country’s goods to the EU will see import tariffs eliminated in line with the seven-year roadmap.
The benefits of this can best be seen in the garment and textile sector, with enterprises expected to enjoy plenty of room to expand into new markets due to the regulations setting out tax reductions.
According to the Ministry of Planning and Investment, Vietnam's textile and garment export turnover to the EU will increase by 81 per cent.
Most notably, in the context of unpredictable developments globally such as trade protectionism, trade tensions, and the ongoing impact of the novel coronavirus, the trade deal could help local garment and textile firms boost their exports, diversify markets, and achieve a higher added value through the establishment of fresh supply chains.
Truong Van Cam, Vice President and General Secretary of the Vietnam Textile and Apparel Association, said the agreement could be advantageous for the nation in terms of access to raw materials due to the country’s heavy reliance on China.
Indeed, as soon as the EVFTA is ratified, domestic enterprises have been advised to seek new sources of raw material from other countries instead of China.
The EVFTA is therefore expected to present a wealth of opportunities to Vietnamese textile and garment businesses. However, as a means of enjoying the maximum benefits of preferential tariffs, enterprises must ensure that their goods meet the requirements set out by the rules of origin.