Sign up | Log in



Home  >>   Daily News  >>   Vietnam News  >> Trade  >> FTA with EU would boost exports
NEW UPDATES Asean Affairs   15 May 2014  

FTA with EU would boost exports

The Viet Nam-EU Free Trade Agreement expected to be signed by October will bring "win-win" opportunities of success for both sides' business communities, delegates told a forum organised in HCM City yesterday.

The EU continued to be the most important market for many key exports of Viet Nam, said Jean-Jacques Bouflet, Minister-Counsellor and head of the Trade and Economic section of the EU delegation to Viet Nam.

Vietnamese exports to the EU currently enjoy the EU's Generalized System of Preferences (GSP), which provides developing countries preferential access to the EU market through reduced tariffs. However, preferential tariffs under GSP are unstable since GSP is subject to revision every three years, according to Bouflet.

"It is high time for Viet Nam to find a more predictable and stable legal framework for bilateral commercial trade, as the country has achieved a certain level of strong competitiveness in overseas market," he added.

"An FTA is definitely an answer for this as it is a preferential access arrangement for Vietnamese products contractually guaranteed by treaty," he said.

It would enable Vietnamese firms to enjoy lower export duties than that offered by GSP when exporting to the EU because, under the FTA, tariffs on most Vietnamese products exported to the EU would gradually drop to zero, he said.

The bilateral FTA would also have a wider impact, including an increase in the flow of quality investment from Europe, acceleration of shared expertise and transfer of advanced green technology, and the creation of more jobs and better incomes for the Vietnamese people.

The two sides had completed seven rounds of negotiation for the bilateral FTA, and the next round would take place next month, Bouflet said.

He added that the EU and Vietnamese negotiators had targeted the conclusion of the FTA by October.

However, to be able to enjoy the many benefits of the FTA, local companies needed to be aware of technical barriers to trade imposed by the EU and increase investment to improve product quality, delegates said.

The EU had many trade regulations to protect human health and safety, animal and plant life and health and the environment, Frank Juettner, general director of TUV Rheinland Viet Nam, said.

They include REACH, the European Community Regulation on chemicals and their safe use, FLEGT or Forest Law Enforcement, Governance and Trade aiming to reduce illegal logging, and IUU, the regulation against illegal fishing.

Vietnamese firms should spend time studying the EU requirements and adjust their products and production processes to comply with such requirements, he said, adding that they should not sacrifice innovation for efficiency.

In addition, companies were urged to conduct research to understand European consumers' tastes and demands.

Le Ky Anh, an expert with the EU delegation to Viet Nam, said the Export Helpdesk website for businesses on how to export to the EU would provide essential information for Vietnamese exporters, including information on EU tariffs, import requirements and preferential arrangements.

Speaking at the forum, Dang Hoang Hai, head of the Ministry of Industry and Trade's European Market Department, advised Vietnamese firms to work directly with and export their products to EU supermarkets.

Once their products can enter EU supermarket chains, they can enter other distribution channels there, he said.

Vo Tan Thanh, director of the Viet Nam Chamber of Commerce and Industry in HCM City, said the EU had surpassed the US in 2012 to become Viet Nam's largest export market and the second largest trading partner of Viet Nam.

Last year, Viet Nam-EU bilateral trade reached US$33.6 billion, a year-on-year increase of 16 per cent, of which Viet Nam's exports accounted for $24.4 billion.

The EU is one of the biggest investors in Viet Nam, with 1,401 investment projects with total registered capital of $18.02 billion in various sectors, including industry, construction and services, he said.

Viet Nam mainly exports apparel, footwear, coffee, furniture and seafood to the EU, while the EU exports machinery, medicine, aircraft, equipment and vehicles.

The "Viet Nam-EU FTA: Opportunities and Challenges for the Business Community" forum was co-organised by the Viet Nam Chamber of Commerce and Industry in HCM City and the delegation of the European Commission to Viet Nam.

Debuting in 2007, the annual event is held to promote mutual understanding and improve the two countries' trade and investment activities.

Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
Online Ad Rates

Comment on this Article. Send them to

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below

Today's  Stories                            May 15, 2014 Subsribe Now !
• Suthep asks public to push Senate for interim PM Subcribe: Asean Affairs Global Magazine
• Tourism Ministry mulling Thailand travel warning
• BlackBerry launches Z3 in Jakarta
Research Reports
on Thailand 2007-2008

• Textiles and Garments Industry
• Coffee industry
• Leather and footwear industry
• Shrimp industry

• FTA with EU would boost exports
• Yangon transport plan will need varied funding sources, meeting told
Asean Analysis                    May 15, 2014

• Asean Analysis May 15, 2014
Toward a Way Out in China-Vietnam Tensions in the South China Sea
Advertise Your Brand

Asean Stock Watch    May 14, 2014
• Asean Stock Watch-May 14, 2014
The Biweekly Update
• The Biweekly Update  May 2, 2014

ASEAN NEWS UPDATES      Updated: 04 January 2011

 • Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent
• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore • Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline • Vietnamese PM projects 10-year socioeconomic plan


This year in Thailand-what next?

AseanAffairs   04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More






1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

Our Products | Work with us | Terms of Use | Site Map | Privacy Policy | Refund Policy | Shipping/Delivery Policy | DISCLAIMER |

Version 5.0
Copyright © 2007-2015 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand