Dong Nai Customs supports businesses to implement EVFTA to revive their production

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Leaders of Dong Nai Customs Department implement the EVFTA for enterprises.

Many opportunities for key items

According to Dong Nai Customs Department, in 2017-2019, Dong Nai's export turnover to the EU has grown and accounted for about 13% - 14% of businesses’ total export turnover in the area. Of which, export turnover in 2019 reached US$2.87 billion, up 6% compared to 2018.

In the first nine months of 2020, despite the Covid-19 pandemic, Dong Nai saw a trade surplus of US$1.34 billion into the EU. Of which, Dong Nai's export turnover to the EU hit nearly US$1.7 billion.

Items produced in Dong Nai for export to the European market are diverse, in which, the industries with export turnover account for a high proportion include: iron, steel and other metals accounting for more than 10%; and machinery, equipment and means of transport accounted for nearly 13%. Additionally, many agricultural products with potential in Dong Nai such as pepper, coffee, cashew nuts, and fresh fruits have a low proportion of exports to the EU, accounting for less than 5% of total export turnover to this market.

This showed there are many opportunities for businesses in Dong Nai to boost exports to the EU, especially agricultural products, footwear and textiles.

According to Dong Nai Customs Department, the use of incentives in the EVFTA to boost exports to the EU will revive export activities after the Covid-19 pandemic, and enhance competitiveness and the development of Vietnam’s export markets in general and Dong Nai province’s in particular.

Support businesses to implement EVFTA

Despite many opportunities, the EVFTA also brings challenges for Vietnamese enterprises if they want to take advantage of its incentives, including issues of rules of origin, trade remedies, technical barriers and product quality. Based on benefits and challenges of the EVFTA, when the agreement came into effect, Dong Nai Customs Department has gathered information materials on the EVFTA and translated them into Chinese, Korean and Japanese for foreign investors in Dong Nai.

In September, the unit held three seminars with more than 300 local import-export enterprises to provide detailed information related to the EVFTA. At these seminars, Dong Nai Customs Department specifically analysed the opportunities and challenges from the EVFTA and the regulations businesses need to comply with to enjoy tax incentives. The unit also answered many questions related to enjoying preferences when exporting goods to the EU.

Dong Nai Customs Department also said that in addition to providing information at conferences and seminars, other support channels have been ready to receive and answer questions from businesses. There are officials and civil servants in charge of directing the procedures for enterprises at every branch. Moreover, "Consulting on online customs procedures" on the Dong Nai Customs Department’ website has become a familiar information channel of the business community. Up to now, the unit has received and answered more than 23,000 questions from businesses.

Dong Nai Customs Department has implemented the Customs - Enterprise information exchange system, developed by Dong Nai Customs Department, allowing a quick, convenient and accurate two-way exchange of information to cut time and costs for businesses. The number of enterprises participating in the system as well as the number of their questions has increased. As of mid-September, more than 1,000 questions from enterprises have been handled and nearly 20,000 documents have been received and processed through the system with 1,640 enterprises participating.