One-year implementation of EVFTA under review

VOV.VN - A webinar aimed at reviewing the one-year implementation of the EU-Vietnam Free Trade Agreement (EVFTA) was jointly held on August 27 by the Vietnam Chamber of Commerce and Industry (VCCI) and the European Chamber of Commerce in Vietnam (EuroCham).

Participants pointed out difficulties in implementing the deal and proposed solutions aimed at maximising the benefits brought about by it.

Vu Tien Loc, chairman of the VCCI, said that after becoming effective in August, 2020, when the economies of both sides and the whole world were faced by difficulties caused by the COVID-19 pandemic, the agreement became one of the drivers for the businesses and economies of both sides.

He went on to underline the need to devise solutions from both State policies and strategies from businesses in order to handle risks both at present and in the future.

Alongside Vietnam, the EU has signed FTAs with three economies in Asia, including Japan, the Republic of Korea, and Singapore, although the nation has no direct competitors among these, Loc said.

The EVFTA has also made remarkable contributions to Vietnamese aquatic export achievements in recent times, with up to 50% of tariff lines being reduced to 0% before 2020, including tax rates for key exports.

However, the COVID-19 pandemic is currently strongly impacting raw material production, reducing the opportunity for the country to take advantage of preferential tax lines, he noted.

Moving into the remaining months of the year, the nation’s aquatic exports to the EU is predicted to be severely affected by the pandemic, possibly dropping by at least 9% over the same period last year to US$3.66 billion.

Vietnamese aquatic exports are also forecast to rake in US$8.6 billion this year, marking an annual increase of 2.7%.