With comprehensive commitments outlined through the EU-Vietnam Free Trade Agreement (EVFTA), the trade deal is expected to promote bilateral trade and investment relations between both sides whilst accelerating Vietnam’s international economic integration process.

Deputy Minister of Industry and Trade Tran Quoc Khanh speaks at the event 

The statement came from Deputy Minister of Industry and Trade Tran Quoc Khanh during a seminar held on June 29 in Hanoi aimed at discussing about how to help local firms enjoy the full advantages of the EVFTA.

Deputy Minister Khanh noted that with the trade deal set to officially take effect soon, it will greatly contribute to the country’s renewal and modernization process.

Despite the negative impact caused by the novel coronavirus (COVID-19) on the nation’s economic and trading activities, the EVFTA is anticipated to create a fresh impetus for the recovery and development of domestic enterprises.

Indeed, it is predicted that businesses will have the opportunity to gain access to a market of roughly 460 million people with an average GDP totaling over US$35,000.

Most notably, a tax rate of 0% will be applied on more than 85% of taxable goods immediately after the trade deal comes into force.

Moreover, local firms will be able to enter new supply chains that are capable of replacing traditional supply chains that have suffered disruption caused by the coronavirus epidemic, whilst simultaneously expanding and diversifying the import and export markets.

Deputy Minister Khanh underlined the importance of issuing relevant legal documents that relate to the trade pact alongside increasing the dialogue with the business community in an effort to remove hurdles that enterprises face during their production and business activities.

Furthermore, local businesses were also advised to actively gain greater insights into the EVFTA’s contents whilst fully preparing both human and financial resources in order to meet the stringent requirements set by both trade pact and the EU market.

The Deputy Minister therefore expressed his hope that the seminar will provide domestic businesses with plenty of useful information regarding the EVFTA and the Government’s plans to implement the details of the trade pact.

Furthermore, businesses should strive to draw out concrete strategies aimed at removing obstacles and seizing upon the opportunities brought about by the impending trade pact.