The fulcrum helps businesses overcome difficulties
Online trade conference on footwear, textiles, carpets and curtains Vietnam - Netherlands 2020. Trade Promotion Department - Ministry of Industry and Trade
In addition, 52% advised family members, friends and acquaintances to buy Vietnamese products; 36% said that in the past, a habit of buying products from foreign countries stopped buying (or buying less), instead buying Vietnamese goods.
A representative of the Domestic Market Department (Ministry of Industry and Trade) said that the current proportion of Vietnamese goods in modern distribution systems is maintained at a high level.
For example, the amount of Vietnamese goods at Co.opmart accounts for 90-93%, Satra 90-95%, Vinmart 96%, Vissan 95%, Hapro 95% ... Along with that, the proportion of Vietnamese goods in foreign supermarket systems. like Lotte, BigC, AEON - Citimart, Emart also accounted for 65-96%.
However, the Domestic Market Department also emphasized that Vietnamese products are facing many challenges to compete with imports from the EU.
Because when EVFTA takes effect, by 2035, EU exports to Vietnam will increase by about 29%, equivalent to about 15 billion Euro.
Moreover, goods from the EU with high-quality and globally famous such as cosmetics, pharmaceuticals, food ... will create great pressure to compete with Vietnamese goods.
Not only that, the import tax for many products from the EU to Vietnam will be reduced according to the roadmap to 0% when EVFTA takes effect from the beginning of August 2020.
In order to implement the commitment to open the goods market in EVFTA, the Ministry of Finance is currently drafting a decree on Vietnam's preferential export tariffs and special preferential import tariffs for the period of 2020-2022. Many items imported into Vietnam such as automobiles are expected to decrease by 14.2 - 15.6% after the next 2 years.
Frozen pork imported from the EU into Vietnam will reduce from the tax rate from 13.1% to 11.2% and 9.3% in two years 2021 - 2022; Frozen beef will reduce taxes from 15% to 10% and 5% in the next two years ...
Particularly for the dairy industry, import tax will be reduced within 3 years and will compete fiercely with powdered milk and domestic dairy products. The cost of milk production in Vietnam is also higher than that of the EU, together with low average productivity, which makes Vietnam's milk production advantage lower than that of the EU.
Along with the tax cuts, other factors such as consumer psychology who want to use hygienic and quality products will increase the competition of Vietnamese goods in the domestic market. Moreover, Vietnamese consumers are also seeking assurances about product quality as well as prestige and brands.
Based on the survey results, it can be seen that nearly two-thirds of Vietnamese consumers are willing to pay more for quality, health and safety products. That is well above the global average of 49%.
This will have a great impact on Vietnamese businesses, especially when EVFTA comes into effect, the goods that reduce the inflow of tax will create a change in the trend of Vietnamese consumption.
Therefore, this is the time when domestic enterprises need to optimize and have the right strategy, specifically about prices, promotions, product innovation, packaging, and sizes with many different prices to suit. in line with the new standard of value and transition in shopping channels.
In this context, experts believe that, besides the achieved results, the implementation of the Campaign "Vietnamese people give priority to using Vietnamese goods" in the past 10 years still has limitations and shortcomings.
Counterfeit goods, fake goods, poor quality goods, fake labels, especially smuggled goods that are not originating, but fake Vietnamese goods labels are a worrying situation for consumers when buying fake goods and goods. low quality.
Therefore, if viewed from a positive perspective, this competitive pressure will help domestic businesses and goods to improve their competitiveness, consumers will also benefit from both sides.
In particular, this is also the time for the domestic manufacturing industry to restructure the market, apply science and technology, improve the quality of human resources to increase competitiveness in the domestic market and ensure penetration into the market. 500 million population of Europe.
According to Deputy Minister of Industry and Trade Do Thang Hai, the industry and trade sector has well implemented the supervision of Vietnam's consumption of goods in shopping centers, supermarkets, traditional markets and the situation of enterprises taking advantage of Vietnamese goods' prestige. Nam, affix Vietnamese labels on goods of foreign origin for consumption, profiteering, adversely affecting Vietnamese goods.
Currently, the Ministry of Industry and Trade is focusing on developing the domestic market, effectively implementing solutions to stimulate domestic consumption, promoting the movement "Vietnamese people give priority to using Vietnamese goods".
On the other hand, the Ministry also carried out the Government's Resolution No. 84 / NQ-CP of May 29, 2020 on tasks and solutions to continue removing difficulties for production and business, promoting disbursement of capital. public investment and ensuring social order and safety in the context of the COVID-19 pandemic; ...
In particular, strengthening the direction, inspection and handling of fake, counterfeit and poor quality goods contributed to improving the quality of the campaign "Vietnamese people give priority to using Vietnamese goods".
However, in addition to the support policies from the State, Vietnamese enterprises must promote brand development, develop specific products and specialties to enhance the advantages of Vietnamese products compared to imported ones. password and good competition at home.
Source: Ministry of Industry and Trade
In the context of the serious Covid-19 pandemic worldwide, the organization of the seminar via online format was assessed by businesses of both sides as the most effective way of exchanging businesses, associations, trade promotion organizations at home and abroad grasp useful information, before EVFTA officially comes into effect from August 1, 2020.
At the seminar, the Vietnamese bridgehead was attended by Minister of Industry and Trade Tran Tuan Anh, French Ambassador to Vietnam, Mr. Nicolas Warnery, Representative of French Trade and Investment Agency (Business France). ) in Vietnam and the relevant Departments of the Ministry of Industry and Trade. French bridge with the participation of the Head of the European Ministry and French Foreign Affairs, Mr. Francois Delattre; President of the French Trade and Investment Agency, Mr. Christophe Lecourtier. In addition, there are online participation of more than 400 key French businesses and more than 100 Vietnamese businesses.
The seminar gave French businesses access to Vietnam's trade and investment policies in effect after the EVFTA Agreement came into effect, new information about the potential market. nearly 100 million people and is the gateway of ASEAN region with over 600 million people.
On the side of French businesses, they expressed their wish that the Vietnamese Government would create the most favorable conditions for French production and business activities and projects in Vietnam. The current common trend of French and European businesses is to link and build strategic partnerships with local enterprises to build new production and supply chains, effectively taking advantage of EVFTA and EVIPA agreements. This means that Vietnamese businesses face many opportunities to cooperate with European partners to participate in the global value chain. On the other hand, challenges will go hand in hand, requiring Vietnamese businesses to proactively innovate business thinking, production methods and governance, to meet quality standards, to keep up with the development trend of the market. European market.
On this occasion, Minister Tran Tuan Anh congratulated the new French Government and hoped that under the guidance of Prime Minister Jean Castex, cooperation activities between Vietnam and France would continue to develop stronger and more substantially. supporting the development of the business community of the two sides growing more and more sustainable.
According to statistics, the two-way trade value between Vietnam and France has more than tripled from about 1.6 billion USD in 2009 to 5.3 billion USD in 2019 (ranked 3rd in Europe after Germany and the Netherlands). Regarding direct investment, accumulated until the end of May 2020, France has 588 investment projects in Vietnam with a total investment capital of 3.56 billion USD, ranked second among European investors. in Vietnam (after the Netherlands).
In the first 5 months of 2020, due to the influence of Covid-19, the import-export turnover between Vietnam and France reached US $ 1.77 billion, down 18.66% compared to the same period in 2019. Of which, exports reached 1 , 20 billion USD, and imports reached 572.37 million USD. Bilateral trade is expected to only grow again in the last months of the year after France re-starts the economy and the economy gradually recovers.
The above information was assessed by Minister of Industry and Trade Tran Tuan Anh at the conference "Supporting enterprises to take advantage of opportunities to develop exports of agricultural, forestry and fishery products to the EU market, effectively implementing the EVFTA Agreement".
Conference "Supporting businesses to take advantage of opportunities to develop exports of agricultural, forestry and fishery products to the EU market, effectively implement the EVFTA Agreement"
The conference was hosted by the Ministry of Industry and Trade, in collaboration with the Ministry of Agriculture and Rural Development and the Ho Chi Minh City People's Committee held in Ho Chi Minh City. Ho Chi Minh.
The conference was also attended by Mr. Nguyen Xuan Cuong - Member of the Party Central Executive Committee, Minister of Agriculture and Rural Development; Mr. Nguyen Thanh Phong, Member of Central Party Committee, Deputy Secretary of City Party Committee, Chairman of City People's Committee Ho Chi Minh; with representatives of ministries, departments, local branches, associations, production enterprises, agriculture, forestry and fishery.
Minister of Industry and Trade Tran Tuan Anh
Speaking at the opening of the Conference, Minister of Industry and Trade Tran Tuan Anh shared, the role and results of international economic integration are increasingly being comprehensively manifested in the fields of economic life, including agriculture and rural development.
Vietnam is the first developing country in the Asia-Pacific region and has a free trade agreement with the EU. On June 8, 2020, EVFTA Agreement was ratified by the National Assembly at the meeting with 100% of the delegates present and the Agreement will come into effect on August 1, 2020.
According to the Minister Tran Tuan Anh, EVFTA is the highest commitment agreement that a partner for Vietnam of all FTAs has been signed, when 99% of import tariff lines between the two sides are removed. Abolish in 7-10 years, especially for some agricultural products that Vietnam is strong in production and export such as rice, seafood, coffee, vegetables, cocoa, palm oil, ...
The signing and implementation of the EVFTA Agreement not only provides opportunities for export growth but also helps Vietnam's agricultural sector to accelerate restructuring and enhance competitiveness through product quality, quality control and origin, packaging, etc., contributing to bringing Vietnam's agricultural, forestry and fishery goods more deeply into global supply chains.
Also according to Minister Tran Tuan Anh, besides the opportunities and potentials from the EVFTA Agreement, Vietnam's agricultural, forestry and fishery export products to the EU market in the coming time will enter the big playground. currently comply with EVFTA regulations.
Specifically, the technical barriers to imports of agricultural, forestry and fishery products from the EU are very tight, up to now the EU is still a market with very high technical barriers, especially in quarantine. animals and objects; quality control, food safety and hygiene; combating illegal, undeclared and unregulated fishing (IUU); Declaring the origin of illegal timber ...
The implementation of the EVFTA Agreement, for Vietnamese enterprises, is still a continuation in the process of complying with these requirements from the EU.
Minister of Agriculture and Rural Development Nguyen Xuan Cuong said that Vietnam's ratification of EVFTA at this time is very timely, creating momentum for economic recovery after the Covid-19 pandemic.
The agreement is truly a golden opportunity, creating a big push for the export of agriculture, forestry and fisheries, especially with products with strengths and competitive advantages such as seafood, vegetables, rice, cashew, coffee. , pepper, wooden products….
Minister Nguyen Xuan Cuong emphasized that EVFTA is a new generation agreement with high level of commitment, great influence and promises to bring many new opportunities but also many great challenges for the economy. country. To make best use of trade and investment opportunities, Vietnam's agriculture needs to meet a series of stringent requirements for product origin, quality standards and food safety (Food Safety).
Meanwhile, Mr. Nguyen Thanh Phong - Chairman of City People's Committee. Ho Chi Minh stressed that up to now, Vietnam has signed 13 bilateral and multilateral free trade agreements (FTA) (of which 12 have entered into force); under negotiation to continue signing 03 FTAs. The signing of the EVFTA Agreement will open a vast door for Vietnam's export goods.
Chairman Nguyen Thanh Phong shared, currently export turnover of the city. Ho Chi Minh City to the EU accounted for about 10% of the total export turnover of the City.
In 2019, the city's export turnover to the EU reached US $ 5.01 billion, up 5.4%, of which the export of agricultural, forestry and fishery products alone reached US $ 712 million. Import turnover from EU reached 3.56 billion USD, up 0.6% over the same period.
In the first 6 months of 2020, export turnover is estimated at 2.26 billion USD. Import turnover reached 1.29 billion USD.
Agreeing with the solutions mentioned by the ministries and branches at the conference, Chairman Nguyen Thanh Phong added that, in order to effectively implement FTAs, including EVFTA, in the coming time, the city will continue to deploy. many solutions to support businesses, stabilize production development, business and export. Direct city agencies and agencies to intensify dissemination and intensive training on contents in EVFTA Agreement.
In order to effectively implement the EVFTA Agreement, Chairman Nguyen Thanh Phong hoped that in the future, he would continue to receive the attention and support of the ministries, central agencies, especially the Ministry of Industry and Trade, the Ministry of Agriculture and Rural Development in coordination with city. Ho Chi Minh City to support businesses in agriculture, forestry and fisheries to develop export markets, especially the EU market.
At the conference also took place seminars of experts sharing in-depth analysis.
Mr. Luong Hoang Thai - Director of Multilateral Trade Policy Department, Ministry of Industry and Trade analyzed EVFTA's strategic benefits and recommendations for agriculture, forestry and fishery enterprises; Strategic benefits, effective date and implementation plan of EVFTA Agreement and the highlights of EVFTA Agreement.
According to Mr. Tran Thanh Hai - Deputy Director of Import and Export Department, Ministry of Industry and Trade, EVFTA is the Agreement with the highest level of commitment in FTAs, specifically when the Agreement comes into effect, it will eliminate tariffs immediately 85.6% the number of tariff lines, equivalent to 70.3% of Vietnam's export turnover to the EU; Tariff elimination after 07 years is 99.2% of tax lines, equivalent to 99.7% of Vietnam's export turnover to the EU.
Mr. Tran Quoc Toan - Director of Agricultural Product Processing and Market Development Department, Ministry of Agriculture and Rural Development shared about the organization of agricultural production in order to improve the quality of exported goods to the EU market. implementation of EVFTA Agreement
Mr. Tran Quoc Toan - Director of Department of Agricultural Product Processing and Market Development, Ministry of Agriculture and Rural Development
In order to meet the technical standards of exporting agricultural, forestry and fishery products to the EU market, Mr. Ly Hoang Hai - General Director of Eurofins Sac Ky Hai Dang Company proposed to raise farmers' awareness of the banned substances. in agricultural production. Develop a database to support exporters to update technical standards changes.
State management agencies shall promptly issue regulations and policies in accordance with EU requirements, criticizing unreasonable regulations. At the same time, create bridges connecting relevant units in the supply chain, from farmers to producers, to importers and technical intermediaries to improve efficiency and enhance accuracy. and quick information to support businesses and farmers.
Opening ceremony of electronic certification system under EVFTA
At the conference, the opening ceremony of the electronic certification system under the EVFTA Agreement and the Dialogue and answering questions of enterprises was held by the Minister Tran Tran Anh and Minister Nguyen Xuan Cuong. Reply with participants at the conference.
In the dialogue with delegates and businesses, Minister of Industry and Trade Tran Tuan Anh said that: To make the Agreement come into practice soon, there is a lot of work to be done and in the Government's action plan 5 big task. In particular, there is a task that needs to be drastically focused on legalizing and organizing the promulgation of specific guidelines, laws and guidelines for the agreement to come into effect immediately.
Dialogue between the two Ministers and businesses at the Conference
Therefore, the task of the Government is to promulgate and implement the action plan soon. At present, the Ministry of Industry and Trade has completed the general synthesis and asked the Ministry's final opinions to submit to the Government for approval.
At the same time, there must be guidance on implementation and the Ministry of Industry and Trade has recently issued Circular 11/2020 / TT-BCT to guide the certification of origin for products when exported to the European Union. enterprises, especially small and medium enterprises of Vietnam and EU in penetrating each other's market.
Source: Ministry of Industry and Trade
On June 18, the Ministry of Foreign Affairs, together with other ministries and branches, presented Official Notes announcing Vietnam's ratification of the Vietnam-EU Free Trade Agreement (EVFTA) and the Investment Protection Agreement (EVIPA) to Phai. European Union (EU) delegation in Hanoi.
The fact that Vietnam awarded the notes of the EVFTA and EVIPA agreements right after the National Assembly ratified is important, meaning that the two sides informed each other that they have completed the legal procedures, and helped the two sides set the time. Official entry into force of this agreement.
Thus, according to the provisions of the agreement, EVFTA will take effect on August 1. The EVIPA Agreement will enter into force after it has been ratified by the Parliament of all EU member states.
Permanent Deputy Minister of Foreign Affairs Bui Thanh Son proposed the relevant ministries, branches of Vietnam and EU agencies to continue working closely to make the EVFTA Agreement come into effect. EU Ambassador Giorgio Aliberti also affirmed that he would continue to work closely with Vietnam to effectively implement the EVFTA Agreement and promote member countries to ratify EVIPA soon.
On June 8, the National Assembly approved the Vietnam - EU Free Trade Agreement with nearly 100% approval. EVFTA and EVIPA agreements are free trade and investment protection agreements with a wide and comprehensive level of commitment.
According to research by the Ministry of Planning and Investment, the agreements are expected to boost Vietnam's GDP by 4.6% and exports to the EU by 42.7% by 2025. The European Commission estimates EU GDP will increase by USD 29.5 billion and export to Vietnam by 29% by 2035.
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