Vietnam strategically utilizes the EVFTA agreement to enhance its role in global value chains.
Vietnam is actively leveraging the European Union-Vietnam Free Trade Agreement (EVFTA) to solidify its position as a key player in global supply chains. Since its implementation in August 2020, the EVFTA has provided a significant boost to Vietnam's trade relations with the EU, opening new avenues for Vietnamese businesses and attracting foreign investment.
The EVFTA eliminates tariffs on over 99% of goods traded between the EU and Vietnam. This has made Vietnamese exports more competitive in the European market, leading to increased sales of products such as textiles, footwear, electronics, and agricultural goods. Simultaneously, the reduction of tariffs on EU imports has provided Vietnamese consumers and businesses with access to high-quality products and advanced technologies.
Beyond tariff reductions, the EVFTA includes provisions on intellectual property protection, investment liberalization, and sustainable development. These provisions create a more transparent and predictable business environment, further encouraging foreign investment and technology transfer. As a result, numerous European companies are now considering Vietnam as an attractive destination for manufacturing and sourcing.
Experts believe that Vietnam's strategic location, competitive labor costs, and proactive government policies, combined with the benefits of the EVFTA, position the country as a vital link in global value chains. The agreement is not only boosting trade but also driving economic diversification and upgrading Vietnam's industrial capabilities.
However, challenges remain. To fully capitalize on the EVFTA, Vietnam needs to address issues such as improving infrastructure, enhancing workforce skills, and streamlining administrative procedures. The country also needs to ensure compliance with EU standards on product quality, environmental protection, and labor rights.
Looking ahead, the EVFTA is expected to continue to be a key driver of Vietnam's economic growth and integration into the global economy. As global supply chains become more complex and diversified, Vietnam's strategic utilization of the EVFTA will be crucial for maintaining its competitive edge and attracting further investment.
Vietnam is actively leveraging the European Union-Vietnam Free Trade Agreement (EVFTA) to solidify its position as a key player in global supply chains. Since its implementation in August 2020, the EVFTA has provided a significant boost to Vietnam's trade relations with the EU, opening new avenues for Vietnamese businesses and attracting foreign investment.
The EVFTA eliminates tariffs on over 99% of goods traded between the EU and Vietnam. This has made Vietnamese exports more competitive in the European market, leading to increased sales of products such as textiles, footwear, electronics, and agricultural goods. Simultaneously, the reduction of tariffs on EU imports has provided Vietnamese consumers and businesses with access to high-quality products and advanced technologies.
Beyond tariff reductions, the EVFTA includes provisions on intellectual property protection, investment liberalization, and sustainable development. These provisions create a more transparent and predictable business environment, further encouraging foreign investment and technology transfer. As a result, numerous European companies are now considering Vietnam as an attractive destination for manufacturing and sourcing.
Experts believe that Vietnam's strategic location, competitive labor costs, and proactive government policies, combined with the benefits of the EVFTA, position the country as a vital link in global value chains. The agreement is not only boosting trade but also driving economic diversification and upgrading Vietnam's industrial capabilities.
However, challenges remain. To fully capitalize on the EVFTA, Vietnam needs to address issues such as improving infrastructure, enhancing workforce skills, and streamlining administrative procedures. The country also needs to ensure compliance with EU standards on product quality, environmental protection, and labor rights.
Looking ahead, the EVFTA is expected to continue to be a key driver of Vietnam's economic growth and integration into the global economy. As global supply chains become more complex and diversified, Vietnam's strategic utilization of the EVFTA will be crucial for maintaining its competitive edge and attracting further investment.
Source: Economy | Original article