Vietnam, New Zealand urged to take full advantage of FTAs

Since both countries first established the Comprehensive Partnership in 2009 and signed the ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA) in 2010, there have been a range of significant changes in terms of economic relations, with bilateral trade witnessing robust growth over the past decade.

Last year, despite the adverse impact caused by the COVID-19 pandemic, bilateral trade surged by 6.9% to reach NZD1.93 billion compared to 2019. Vietnam also represented the 16th largest partner in importing goods from New Zealand.

New Zealand’s major imports include electronic products, garments, footwear, wooden products, tropical agricultural products, and aquatic products, while key Vietnamese imports from New Zealand include raw milk and dairy products, wine, along with garments and textiles.

Duong Phuong Thao, Vietnamese Trade Counselor in New Zealand, noted that both sides are members of new-generation free trade agreements, including the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Regional Comprehensive Economic Partnership (RCEP).

In addition to the AANZFTA, these FTAs can serve to greatly elevate bilateral trade in the near future.

It can therefore be considered that the two nations can seize upon these opportunities to enhance capacity building in agricultural production, apply higher food safety standards as a way of improving product quality, and transfer processing technology in agricultural and aquatic products to boost exports to markets of partner countries.

Due to these factors, local businesses are advised to closely co-ordinate with their import partners to ensure that their goods meet the stringent regulations set in terms of the rule of origin, as well as undergoing quarantine set by the demanding markets in future, according to the Vietnamese Trade Office in New Zealand.