Vietnam’s export turnover to the European market reached a sum of US$277 million during the first month of the European Union-Vietnam Free Trade Agreement (EVFTA) being implemented, according to figures released by the Ministry of Industry and Trade.

At the event. Photo: Bao Quoc Te (International Newspaper)

This comes after the Vietnam Chamber of Commerce and Industry (VCCI) organised a seminar on the EVFTA on September 24 in Hanoi with the aim of updating both businesses and the Government on the implementation of the EVFTA two months on from coming into force.

Participants therefore assessed that the EVFTA, which took effect in early August, has brought about a number of initial benefits for local firms.

According to the Ministry of Agriculture and Rural Development, the country’s agro-forestry-fishery exports have already shown signs of flourishing, specifically with seafood orders to the EU enjoying a rise in  August with a 10% increase in turnover compared to July. Elsewhere, the price of Vietnamese rice products also witnessed an improvement following the EVFTA entering into force, with the first 126 tonnes of fragrant rice exported to the EU on September 22 enjoying a tax rate of 0%.

These initial results can be considered relatively positive, especially in the context of markets facing a difficult period due to the impact of the novel coronavirus (COVID-19) pandemic, in addition to a bedding in period with the EVFTA being new to the majority of local enterprises.

During the course of the seminar, a guide to the EVFTA was also presented to businesses, including commitments that are capable of having the most direct impact to the interests of firms.

The handbook aims to interpret commitments in a concise and easy-to-understand way, providing an initial assessment of the impact on businesses, alongside notes on concerning issues.

Nguyen Van Tuyen, director of Tien Dat Production Trading and Service Company, highlighted the importance of the seminar among the business community as it gives many local enterprises the chance of grasping the advantages of the trade deal.

The manual will therefore serve to help exporters penetrate into the potential EU market. When enterprises fully understand the import criteria, as well as the requirements and available advantages, it will be a precious gift from state agencies that is given to businesses, especially small and medium sized enterprises, Tuyen noted. According to Vu Tien Loc, VCCI Chairman, businesses need to have a thorough grasp of specific commitments if they are going to enjoy the great opportunities of the EVFTA in the long run, whilst managing business activities so that they are able to fully utilise commitments in a proper manner.

“With a desire to help businesses ease difficulties in their journey to learn about the most core commitments on the EVFTA, VCCI has compiled a Guide to Enterprises on EVFTA. This handbook was compiled by many experts based on their in-depth knowledge and rich experience in consulting enterprises on FTAs in recent years," the VCCI leader added.