EVFTA adds fresh impetus to exports amid COVID-19 epidemic

Specifically overall import and export turnover reached US$74 billion, an annual rise of 2.4 per cent, as a result of Samsung boosting exports of their latest S20 products and therefore maintaining growth momentum over a two-month period.

The outbreak of the COVID-19 in China at the end of January caused the country’s trading activities to be negatively affected. It is widely expected that the import and export of goods will have to face a host of difficulties in the short term, with unfavourable factors being caused by the epidemic spreading widely outside of China.

This can best be seen in the damage it has caused in some of the nation’s leading trading partners such as Japan and the Republic of Korea. If the epidemic persists it may result in a negative impact on the export growth target that has been set for the entire year.

These challenges have given fresh impetus to the country’s export growth to come from new generation FTAs, namely the EVFTA . The trade deal is poised to come into effect in July whereby close to 100 per cent of import taxes on the nation’s export turnover to the EU will be eliminated.

Minister of Industry and Trade Tran Tuan Anh stated this trade pact represents the highest level of commitment given by a partner to the country in an FTA agreement. The EVFTA will therefore provide significant benefits, with the EU expected to grow into one of Vietnam’s main export markets in the near future.

The European Parliament originally voted to approve the EVFTA and the EU-Vietnam Investment Protection Agreement (EVIPA) on February 12. The EVFTA is viewed as extra leverage for growth and will open up an array of good opportunities for local enterprises to make inroads into the highly lucrative EU market that has a GDP of US$18,000 billion, the trade official added.

As the world largest economy with 28 members, the EU’s total trade value is estimated to be at US$4,000 billion, with service exports taking the top spot in the global market.