Looking back at the first year of EVFTA implementation, it is undeniable that the Agreement's role is not only a lever to promote two-way trade but also a preeminent advantage for the business communities of the two sides in the economic context. Global trade has been severely affected by the Covid-19 pandemic. Impressive figures of trade and investment even during the outbreak of the epidemic in EU countries and then to Vietnam prove this:

Firstly, on trade: According to calculations from the General Department of Customs of Vietnam, two-way trade exchange between Vietnam and the EU after one year of implementation of the Agreement reached 54.87 billion USD, an increase of 12.1 % over the same period last year, in which export turnover reached 38.48 billion USD, up 11.3% and import turnover reached 16.39 billion USD, up 14.04%.

Although Vietnam was severely affected by the 4th outbreak of the epidemic in the southern key export region, in the first 11 months of 2021, two-way trade between Vietnam and the EU still recorded positive growth, including compared to the pre-pandemic period, with a turnover of US$ 51.3 billion, up 13.8% over the same period in 2020, of which exports reached US$ 35.96 billion, up 12.6% and imports reached US$ 35.96 billion, up 12.6%. 15.34 billion USD, up 16.6% over the same period in 2020. Vietnam has a trade surplus with the EU of 20.6 billion USD, up 9.8% compared to the same period last year.

Secondly, more and more businesses are taking advantage of incentives from the EVFTA Agreement through the use of preferential certificates of origin (C/O). In the first year of implementation of the Agreement, the agencies and organizations authorized to issue C/O form EUR.1 have issued about 207,682 certificates of C/O form EUR.1 with a turnover of about 7.71 billion USD. 27 EU countries. In addition, enterprises exporting goods to the EU also carry out self-certification of origin for 6,115 consignments entitled to preferential tariffs under EVFTA.

Third, the competitiveness and market share of Vietnamese goods have improved markedly in the EU market. Vietnam is currently the EU's 15th trading partner and has risen to become the EU's largest goods trading partner in the ASEAN region, with two-way trade turnover in 2020 reaching 43.2 billion euros (according to Eurostat), and ranked in the Top 10 countries supplying the largest goods to the EU market.

Fourth, on investment: With a strong commitment to ensuring transparency, openness and convenience in the business-investment environment, Vietnam has received high-quality investment from the EU with projects having advanced technology, creating common values ​​and benefits for the business communities of the two sides. The EU is currently the 6th largest investor (FDI) in Vietnam with a total accumulated registered investment capital of 22.4 billion USD by November 2021.

In the context of the outbreak of the COVID-19 pandemic and complicated developments, which negatively affected the entire world's trade and investment activities as well as Vietnam, causing global trade to decline, many markets tightened. tightening non-tariff barriers, increasing domestic protection, etc., the implementation of the EVFTA Agreement is of great significance to help offset the decline of the economy and provide more diversified market opportunities for businesses, helping businesses regain their post-epidemic growth momentum. In addition, this is also an opportunity for businesses to join a new supply chain to replace the traditional supply chains that have been interrupted or stalled due to the Covid-19 epidemic.

Vietnam's most obvious advantage is the EVFTA Agreement with strong incentives to cut tariffs and open markets, giving Vietnamese businesses a huge competitive advantage when accessing and exploiting effectively the market. EU. At the same time, the EU is also the world's second largest import market with the import value of goods from foreign markets reaching $2,160.2 billion (2020); Meanwhile, the market share of Vietnamese exports in the EU is only about 2%, the structure of import and export of Vietnamese and EU goods is also mostly complementary and not directly competitive. Therefore, the market potential is still relatively large in the coming time, when the EU economy recovers and grows again and the demand for consumption and import of goods increases.

With the commitments in the EVFTA on sustainable development, digital trade will create favorable conditions for Vietnam to access modern and advanced "digital and green" technology of the EU to accelerate the economic restructuring in accordance with the law. the direction of "foreseeing shortcuts" towards a digital and green economy, being environmentally friendly, converting to high-standard technology, helping Vietnamese goods have the advantage in quality, meeting technical and environmental standards. market as high as the EU market.

The trend of shifting production chains and investment flows will bring great opportunities for Vietnam to increase its competitiveness and attract investment from the EU, with a solid foundation from the EVFTA. EU investment is currently mainly focused on high-tech industries, however, there is a tendency to develop more in service industries (post and telecommunications, finance, office leasing, retail). ), clean energy, supporting industries, food processing, high-tech agriculture, pharmaceuticals... European investors have technological advantages, so they will actively contribute to creating establish a number of new industries and new products with high technology content. Investment flows from the EU into Vietnam in the medium and long term will increase significantly with many high-quality projects of high value, while promoting technology transfer support.

In 2022, Vietnam's goods exports to the EU market are expected to grow more positively than in 2021 because Vietnamese businesses are increasingly taking advantage of incentives from the EVFTA Agreement. Meanwhile, after 2 years of the Covid-19 outbreak, both Vietnam and the EU are adapting better and better to the disease, speeding up the vaccination process and booster shots. The Vietnam - EU economy and trade with a solid foundation from the EVFTA will face many promising opportunities after the pandemic, bringing practical benefits to the business communities of both sides.

Source: Steering Committee 35 Ministry of Industry and Trade