On 24th August 2016, EuroCham, in cooperation with the Vietnam Chamber of Commerce and Industry (VCCI) of Hai Phong, and Deep C Industrial Zones (DVIZ), held a half-day seminar entitled “European – Vietnam Free Trade Agreement (EVFTA) – What is in for me?”. The event took place in Hai Phong and was over 60 participants representing European and Vietnamese companies, as well as European embassies and local authorities.
In the morning, DVIZ invited participants for a tour of the industrial zone to show its live operations to participants and potential investors, providing a good perspective on the development pace of Haiphong City. The tour also highlighted the upcoming Lach Huyen Deep Sea Port, expected to boost the investment potential in this strategically well situated economic hub.
In the afternoon, experts shared their insights on the changes and opportunities brought by the EVFTA. Miriam Garcia Ferrer, Head of the Trade Section of the EU Delegation to Vietnam, delivered a smart overview of the EVFTA. In turn, Prof. Claudio Dordi, Team Leader of the EU-MUTRAP Project, delved into the more specific matter of the Rules of Origin enshrined by the EVFTA and their regional implications in EU-ASEAN trade.
Finally, Remco Gaanderse, Deputy Chair of EuroCham, delivered a presentation on EuroCham’s Engagement in the EVFTA implementation roadmap, the EVFTA’s impact on EU trade to Vietnam, and opportunities and challenges for EU companies. Mr. Gaanderse also took the opportunity to highlight some of the industries that can be most influenced by the EVFTA, while stressing the support EuroCham can provide businesses in understanding and making the most of the favourable business conditions offered by the upcoming implementation of the EVFTA.
In addition to the Trans-Pacific Partnership (TPP), and the ASEAN Economic Community (AEP), the EVFTA will significantly enhance the links of Vietnam to key world markets.
The EVFTA will come into force from 2018, connecting Vietnam – one of ASEAN’s most dynamic manufacturing hubs – with the EU – one of the world’s biggest markets (with a GDP of over 18 trillion USD, representing 20% of the world’s GDP). The EVFTA highly increases market accessibility for both sides:
Imports to Vietnam from EU: 65% of tariffs eliminated at entry into force. 99% of tariffs eliminated within 7 years. EU companies can seek opportunities from market niches such as increasing demand for better quality and healthier food products, pharmaceuticals.
Exports from Vietnam to EU: 85.6% of tariffs eliminated at entry into force. 99% of tariffs eliminated within 10 years, including Vietnam’s major exports such as textile, footwear, agricultural products.
