EU(European Union)-Vietnam free trade agreement (EVFTA) and investment protection agreement (EVIPA) have just been ratified by the European Parliament.
The ratification of the EVFTA provides opportunities and benefits for both Vietnam and the EU. Nearly 100% of Vietnamese exports to the EU is exempt from import tax after 10 years, which facilitates Vietnamese powerful exports to the EU such as products of textile and garment, leather, agro-fishery and wood.
It is estimated that Vietnam's total export turnover to the EU will increase by 42.7% in 2025 and 44.37% in 2030 compared to when there are not the deals.
The EVFTA not only helps to promote institutional and policy reform, improve investment and business environment, and competitiveness but has a great impact on export growth, investment flows and economic development.
It gives Vietnamese companies great opportunities to access to the potential EU market.
The EVFTA also help to increase the number of Vietnamese businesses deeply participating in the global supply chain. The approval of the EVFTA is a positive event for Vietnam’s economy, removing it from relying too much on Chinese economy. Besides, it is also a good chance for Vietnam to attract more FDI from the EU.
Opportunities for businesses
The ratification of the EVFTA is expected as a chance for more jobs, raising companies’ profits, promoting economic growth, improving people’s lives, and multilateralization of international economic relations.
It is necessary for businesses to search for market information, make good use of opportunities to reduce market risks.
They should also assess their potential, strengths and weaknesses, bettering equipment and human resources, and joining regional supply chains.
Besides, they have to take advantage of cooperation with foreign businesses and connect with competent domestic distributors.
According to the Quang Nam provincial People's Committee, the province is able to provide enough products for exports.
Textile and garment products are considered the provincial key exports in the next years. Besides, footwear and agricultural products are seen as local advantages.
If Quang Nam businesses take good advantage of opportunities, they can access to the big EU market.