EVFTA expected to help Vietnam's economic
The European Union (EU)-Vietnam Free Trade Agreement (EVFTA)
is expected widen Vietnamese exports to the European bloc
and help the country’s economy regain its growth momentum
after a tough pandemic period. With the EVFTA’s strong
commitment to market liberalisation, there is greater scope
for Vietnam now to raise its exports, especially in
garments, footwear, farming and timber products.
Though many economists earlier believed that the
implementation of the Comprehensive and Progressive
Agreement for Trans-Pacific Partnership (CPTPP) would not be
as effective as expected without US participation, but the
agreement did bring about positive changes to Vietnam’s
Data from the country’s ministry of industry and trade (MOIT)
showed that its exports to CPTPP economies in the first year
of implementation were estimated at nearly $40 billion, up
by 7.2 per cent from a year earlier.
Exports to Canada and Mexico, with which Vietnam has yet to
enter into a trade agreement, grew sharply by 29.9 per cent
and 27.6 per cent respectively. It is apparent that
Vietnam’s export revenue of $260 billion and trade surplus
of $10 billion in 2019 saw a fair amount of contribution
from the CPTPP, according to a Vietnamese media report.
Similarly, if the EVFTA is soon fully implemented, it will
create a great deal of exports opportunities. For years,
Vietnamese enterprises have been struggling to establish a
firm foothold in the EU market due to strong competition
from other countries, especially China.