"The Vietnam - European Union (EU) - (EVFTA) Free Trade Agreement, a modern expressway linking Vietnam and the EU", was the theme of the seminar hosted by the Government Portal March 23rd. The seminar was very interested by the business community (DN) in the context of the complicated Covid-19 translation, significantly affecting production and business activities.
Speeding
EVFTA is considered as a "modern expressway", but according to Mr. Luong Hoang Thai, Director of Multilateral Trade Policy Department (Ministry of Industry and Trade), to take advantage of the opportunity and smoothness throughout this expressway is It is not easy, especially in the context of the Covid-19 epidemic affecting many economies around the world, including Vietnam. However, Mr. Thai said that with a high-level connectivity agreement such as EVTFA, it will promote close relations and cooperation between Vietnam and the EU when the disease is controlled and the agreement comes into effect.
Ms. Nguyen Thi Thu Trang, Director of Center for WTO and Integration, Vietnam Chamber of Commerce and Industry (VCCI), hopes EVFTA will be one of the ways for businesses to use, to overcome difficulties when translating. the disease is under control. However, she also noted that on this "high speed", although the speed of movement is favorable, there are few barriers, but not everyone can take advantage of the opportunity without careful preparation.
Import and export of goods at Cat Lai port (District 2, HCMC)
Director of the Center for WTO and Integration - VCCI said that in order to enjoy the benefits of EVFTA, businesses must change and invest to meet the conditions, which means that it takes fees to go on the "highway". This, thereby making good use of the opportunities. The remaining responsibility is for state management agencies, to "maintain" for the smooth route, convenient enterprises to participate and enjoy incentives.
According to Ms. Nguyen Thi Thu Trang, in the context of the complicated Covid-19 epidemic, many countries around the world restrict travel, trade in goods, the domestic market has declined but after the epidemic was controlled, demand demand will rise again. Therefore, if EVFTA comes into effect at the time when the translation is controlled, it will be a boost for businesses in particular and the economy of Vietnam in general.
In the context of this epidemic, Mr. Luong Hoang Thai said that the Ministry of Industry and Trade has considered options when the epidemic goes through, it is necessary to have solutions to create new markets, restore production and business for enterprises. In particular, the progress of completing the dossier has been accelerated and submitted to the Government and the National Assembly for the early effective effect of EVFTA. "We are consulting the members of the Government, then submitting to the President to submit to the National Assembly at the next meeting in May. This is an important time, we are very urgent" - Mr. Thai said.
In addition, relevant ministries and agencies are urgently preparing legal terms to be able to implement as soon as the agreement takes effect. However, Mr. Luong Hoang Thai also noted that the agreement only creates a premise, but how to use the opportunity depends on businesses, as well as the authorities of Vietnam.
Businesses actively change
Director of Multilateral Trade Department Luong Hoang Thai also emphasized that EVFTA offers many opportunities for businesses but also has many mandatory conditions, in which rules of origin are extremely important. If domestic enterprises do not meet the rules of origin under the agreement, they will have to comply with common tariffs. To clarify this rule, Mr. Thai said that depending on each commodity group, there will be different regulations. "When negotiating an agreement, the goal is not to apply the easiest rules of origin, because then the added value per item will be low. We aim to negotiate to reach the equilibrium point. , Businesses can meet, not too easy "- Mr. Luong Hoang Thai said.
Mr. Thai also said that the Ministry of Industry and Trade is developing a draft circular guiding the implementation of the agreement. According to the normal process, it takes 45 days for the circular to take effect, but for the convenience of businesses, the Ministry of Industry and Trade will ask for permission so that when the agreement is approved and takes effect, the circular will also be issued. take effect immediately. "The EU is a very important market, the effective agreement will help businesses have longer-term incentives, but instead, businesses must actively change and adjust to the new framework to make good use of opportunities. Association "- the representative of the Ministry of Industry and Trade emphasized.
Talking about the opportunities of Vietnamese enterprises in EVFTA, Ms. Nguyen Thi Thu Trang said that in terms of competitiveness, we are not equal to the EU, but among specific industries, Vietnamese enterprises have advantages. Therefore, EVFTA is bringing additional competition, we focus on occupations that are not strong in the EU yet. Therefore, businesses must have a certain adjustment, for example, the rules of origin. "I document the supply requirements, businesses need to change, can find domestic supply with higher prices but will meet the rules of origin to EU instead of buying from some countries in the region" - Ms. Analysis page.
It's not cheap
The director of the Center for WTO and Integration - VCCI said that in order to enjoy the incentives, businesses must accept investment, maybe in the first few years. "To reach customers, persuade them to buy, it's not just cheap, but it must be the commitment of rules such as using labor, intellectual property. In return, businesses take advantage of the opportunity. from this potential market "- said the representative of VCCI.
