Five key exports of Vietnam – seafood, fruit, woodwork, footwear and apparel goods – will have a good chance to boost their growth into the EU market thanks to tariff reduction brought about by the EU – Vietnam Free Trade Agreement (EVFTA), according to the Ministry of Industry and Trade.

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The deal, signed in Hanoi on June 30, is the first the EU had inked with a developing country in Asia, paving the way for the gradual reduction of up to 99 percent of tariffs between the two sides, as well as for the opening of the service and public procurement markets.

The ministry recommended exporters who want to expand their market share in the EU comply with regulations set by the bloc, particularly those on product origin and food safety. 

Attention should also be paid to compulsory regulations on social responsibility as well as information transparency related to labour and production environment, it said.

Meanwhile, exporters of seafood products ought to be careful in ensuring the principle against illegal, unreported and unregulated (IUU) fishing.

Echoing the view, Chairman of the Vietnam Textile & Apparel Association (VITAS) Vu Duc Giang said in preparation for meeting the FTA’s requirements, since the beginning of 2018, the association has supported firms in accessing financial funds to make their production become more environmentally friendly.

However, he also pointed his finger at the short supplies, as over 60 percent of production materials for the garment-textile, leather-footwear, plastic, and food sectors, among others, have to be imported.

In the long-term, the shortage could turn into a hurdle for Vietnam to take advantage of tariff policy of the FTAs it has signed.

Vietnam is currently the second biggest ASEAN trade partner of the EU, which is also one of the key trade partners of the Southeast Asian nation. Bilateral trade reached 55.8 billion USD in 2018.