Seminar discusses benefits of Eurasia-Vietnam FTA

Following the signing of the FTA agreement last year, interest in the Eurasian market has grown among Vietnamese companies as was evident at the seminar, which attracted more than 200 attendees.

The joint strategy seminar on the FTA covered a wide range of topics including an outline of the free trade benefits and how these could be successfully utilized by Vietnamese and Eurasian companies.

In his opening remarks at the event, Dang Hoang Hai, head of the European Market under the MoIT, urged businesses of both countries to take full advantage of the FTA and expounded on some of the current opportunities for Vietnamese companies doing business with or investing in Eurasia.

Chief among the advantages of the FTA is a reduction of import tariffs, for which he said nearly 59.3% of tax lines would be eliminated immediately upon the FTA coming into effect, which could be as early as this year.

He also discussed the complicated rules of origin applicable to the FTA and pointed out they are especially favourable to seafood exports as they allow for up to 40% of raw materials to come from non-regional suppliers and still qualify for tariff exemption.

Nguyen Khanh Ngoc, deputy head of the European Market, in turn spoke saying he agreed with Mr Hai’s assessment.  He added that one of the greatest disadvantages of trade with Eurasia is the geographical distance, which adds not only transportation costs but additional cost factors, particularly as it relates to perishable goods.

He also reminded everyone that opportunities are a reality, but, companies must follow strict regulations and compete equally with rivals from other countries. Thus, they must thoroughly study and prepare to compete with rivals to boost exports of high quality products at reasonable prices.

Mr Ngoc said, 2016 has been a banner year for the Eurasia-Vietnam business relationship, with the passing of the FTA.

The key now is to see Vietnamese and Eurasian companies take advantage of the opportunities on offer under the bilateral FTA, he said, and today's seminar was a great opportunity to learn more about the methods for accessing these opportunities.

The MoIT, he underscored, looks forward to continuing to cooperate with their Eurasian counterparts to promote the Vietnam-Eurasia business relationship.