|Processing seafood for export in Vietnam
It noted that the two will eliminate 99% of import tariffs within a decade, which will help Vietnam increase its exports to the bloc, which accounts for some 15% of the country's total. Japanese enterprises working in Vietnam are also expected to benefit from the deal.
As the world third-largest apparel exporter behind China and Bangladesh, the space for Vietnam to bolster its garment exports remains huge. Several Japanese companies are producing apparel in Vietnam, notably Fast Retail - the owner of the well-known Uniqlo brand - and also manufacturing auto spare parts and machinery for export to Europe. The EVFTA will therefore help them expand production and enter Europe more easily.
Conversely, the EU ships aircraft and automobiles to Vietnam. With a population of around 97 million, the third-largest in Southeast Asia, and with an average income per capita of about US$3,500 each year, Vietnam is forecast to see growing domestic consumption.
As the first country in Southeast Asia to normalise economic activities following the COVID-19 pandemic, the EVFTA is expected to boost Vietnam’s exports in the near future, the paper wrote.