The European Parliament’s ratification of the European Union – Vietnam Free Trade Agreement (EVFTA) on February 12 will open up a golden opportunity to improve value chains, said President of the Vietnam Chamber of Commerce and Industry (VCCI) Vu Tien Loc.

Illustrative image (Photo: VNA)

Loc described the EP’s ratification of the deal and its adoption by the Vietnamese National Assembly during the next session as a milestone in the Vietnamese economy’s process of reform and global integration.

The European Union – a demanding market with the world’s highest standards, has officially recognised Vietnam’s efforts to reform, build a market economy and promote sustainable development, and stayed determined to enhance cooperation with Vietnam, he said.

As a new-generation free trade deal, the EVFTA has been dubbed an expressway to the west, connecting Vietnam with a wide and promising market in terms of finance, technology and market size.

The EU will cut 85.6 percent of tariff lines, thus improving the competitiveness of 70.3 percent of Vietnam’s exports to the region. Meanwhile, Vietnam will also remove 48.5 percent of tariff lines, or 64.5 percent of its imports, which will reduce input costs for the manufacturing and services sectors.

With the support of European partners, Vietnam hopes to increase value-added and hi-tech content in production, he said, adding that efforts to meet global standards in terms of corporate governance, labour and the environment will create new energy for Vietnam’s sustainable development strategy.

He suggested that businesses should learn about commitments, opportunities and challenges in their sectors while improving their competitiveness regarding governance, workforce, goods and services to reach European standards.

Loc also highlighted the need to reform institutions to facilitate transparent and fair competition, support micro-small, small and medium-sized enterprises, develop the support industry, and create an ecosystem beneficial to both domestic and foreign firms.