The EU-Vietnam Free Trade Agreement (EVFTA) will create new opportunities for growth and development on both sides.
Advantages of the EVFTA
The implementation of the EVFTA gives Quang Nam exports more chances to the European Union (EU). Among them are garments. Domex Quang Nam Company Limited, which is specializing in garments in the Ha Lam- Cho Duoc Industrial Cluster (Thang Binh district, Quang Nam province), is attempting to meet the criteria for product quality in hope of exporting its products to the EU market.
Another garment business in Quang Nam that is also ready for joining the export journey to the EU market under the EVFTA is Panko Tam Thang Company Limited.
The first and foremost preparation is the quality of products which is ensured from the input to the output and safe for the environment.
Besides product quality, both the companies have also built strong relationship with several partners in the EU countries to export their goods directly to this market and reduce third-party costs.
Moreover, some joint-ventures with famous brands such as Gucci, French Connection, Lacoste and Prada have been formed to facilitate exports to the EU. It is expected that the products made by Quang Nam businesses will soon be known in this market.
According to Prime Minister Nguyen Xuan Phuc, to take advantages of the EVFTA, Vietnamese businesses should change, bettering their product quality.
Besides, it is necessary to improve the quality of human resources, implement administrative reform, perfect the infrastructure of transportation, energy and telecommunications in order to attract more investors to Vietnam.
Chairman of the Quang Nam provincial People’s Committee Le Tri Thanh suggested Government’s financial supports for businesses in the context of the EVFTA entering into force. However, he also emphasized on businesses’ abilities of adaption and growth.
Quang Nam actions
To support businesses, Quang Nam keeps on promoting administrative reform, having business support policies and mechanisms, boosting up trade and investment promotion.
The EVFTA should be considered as a driving force for sustainable export, market diversification and the sustainable development of Quang Nam province.
The problems of rules of origin should be especially paid more attention. The EU has become a large market of Vietnamese agricultural, forestry and fishery products since the EVFTA came into effect in August 2020.
However, the rules of origin have become a barrier against these products. The Tam Quang fish port coming into operation recently will help Quang Nam overcome the difficulties of the provincial seafood origin.
Furthermore, Quang Nam needs to tightly control all the stages of process and production so as to make sure of the product quality and safety. In addition, it is important to raise the locals’ awareness of obeying the rules of origin.
At the same time, the labours’ rights and interests should be ensured under the EVFTA.
According to the EVFTA, businesses are obligated to guarantee employees’ rights and interests, helping improve their income, contributing to poverty alleviation and to the local sustainable development.