Local firms must meet requirements on goods origins: expert

02-Aug-2019 Intellasia | The Saigon Times | 6:02 AM Print This Post

Vietnamese exporters must meet strict requirements on product origins and traceability if they want to benefit from the EU-Vietnam Free Trade Agreement (EVFTA), stated Vu Duc Giang, chair of the Vietnam Textile and Garment Association.

At a conference called “EU-Vietnam Free Trade Agreement—a new horizon for extensive and comprehensive cooperation,” jointly held by the EU Delegation to Vietnam and the European Chamber of Commerce in Vietnam (Eurocham) in HCM City on July 30, Giang said local firms should use locally made materials for their products.

Textile and garment firms, for instance, are required to use locally produced fabrics for their products to be entitled to tax incentives in EU countries. However, the sector is currently dependent on imported materials.

To combat this, the sector is striving to enhance investment in production facilities.

According to the Ministry of Industry and Trade, apparel, footwear, mobile phones, computers and farm produce are Vietnam’s key export items.

Speaking at the conference, deputy minister of Industry and Trade Hoang Quoc Vuong pointed out that the cooperation of the government, associations and enterprises as well as consultancy services from economic experts are necessary to utilise incentives provided by the EVFTA.

He noted that bilateral trade between Vietnam and the bloc had surged from $4.1 billion in 2000 to $55.8 billion in 2018, of which $41.9 billion came from Vietnam’s exports.

As of June, 27 EU countries had invested $53.1 billion in more than 3,200 projects in Vietnam. Thus, the European Union is an important trade partner of and investor in Vietnam, Vuong added.

Miriam Garcia Ferrer, head of the Economics and Trade Section of the EU delegation to Vietnam, remarked that the EVFTA will open up more opportunities for cooperation between Vietnam and the European Union. The bloc is now Vietnam’s second-largest import market and fifth-largest investor.

The EVFTA will bring both opportunities and challenges for small and medium-sized enterprises. They must meet requirements on production, labourers and goods origins. Agricultural product processing firms will have to work harder to popularise their products among European consumers.

For her part, Nguyen Son Tra, deputy head of the WTO and Trade Negotiation Division, under the Ministry of Industry and Trade’s Multilateral Trade Policy Department, stressed that Vietnamese enterprises should be more proactive in learning about the EVFTA and improving their product quality to utilise available opportunities.

https://english.thesaigontimes.vn/70231/local-firms-must-meet-requirements-on-goods-origins-expert.html

 

Category: Economy, Vietnam

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