Trade between Vietnam and the EU rose 14.8% in 2021 to US$63.6 billion despite the impact of the prolonged COVID-19 outbreak.
According to the Ministry of Industry and Trade, Vietnam exported US$45.8 billion worth of goods to the EU in 2021, up 14.2% year on year, while importing US$17.9 billion worth of products from the market, a rise of 16.5%.
The ministry attributed the results to the EU-Vietnam Free Trade Agreement (EVFTA), which took effect more than one year ago.
Notably, the export revenue of products using the EUR.1 certificate of origin (C/O) reached about US$7.8 billion, which showed Vietnamese firms’ greater attention to optimising incentives from the deal.
The EVFTA is a bilateral commitment with incentives and long-lasting value.
At present, 20% of local enterprises have taken export tax incentives from the EVFTA with the EUR.1 certificate of origin (C/O). For shipments to the EU worth less than EUR6,000, local enterprises are allowed to self-certify origin. This helps ensure smaller businesses do not have to spend time applying C/O, while still being able to enjoy tax incentives.