International integration is an important highlight of the Industry and Trade sector in 2020. Never, within a year, Vietnam has entered into 3 Trade Agreements, opening up a large market, including a Trade Agreement. Vietnam – European Union (EVFTA) free trade, RCEP Regional Comprehensive Economic Partnership Agreement and Vietnam – UK Free Trade Agreement (UKVFTA), bringing the total number of free trade agreements trade that Vietnam participates in number 15.
In 2020, Vietnam has joined 3 Trade Agreements, opening up an unprecedented large market
According to experts, the continuous and extensive tariff reduction, the Trade Agreements with the commitment to open the market for Vietnamese products and services in a transparent and open manner, have opened. to create future prospects in a way that benefits Vietnam when participating in an economic region with GDP accounting for 60% of global GDP.
The newly signed and implemented Free Trade Agreements (FTAs) have brought positive signals. Particularly for the two Agreements in effect, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Vietnam-European Union Free Trade Agreement (EVFTA), the Government and the Ministry of Industry. Thuong paid special attention to implementation. The set target not only supports agencies, organizations and the public to grasp the content of CPTPP and EVFTA commitments, but also applies and promotes the Agreement’s incentives effectively, thereby making the most of the and minimized challenges.
5 months after the EVFTA Agreement was implemented, the total export turnover of Vietnam to the EU reached about 15.4 billion USD, up 1.6% over the same period. This is a very encouraging result in the context that the EU GDP is still growing negatively and continues to face difficulties, the Covid-19 epidemic is complicated.
With the CPTPP, export turnover to member markets that did not have previous FTAs with Vietnam has grown highly. Specifically, exports to Canada were estimated at US $ 4.4 billion, up nearly 12% from the previous year; exports to Mexico were estimated at $ 3.2 billion, up 12%. As for EVFTA, since the Agreement entered into force until December 18, 2020, the authorized organizations have issued nearly 62,500 certificates of origin (C / O) to enjoy preferential markets in the market. EU with turnover of 2.35 billion USD. This shows that the efficiency in exploiting benefits right after the Agreement is put into effect is very positive.
In 2020, as ASEAN Chairman, the Ministry of Industry and Trade presided over, proposed and built 13 initiatives, prioritizing economic cooperation and was supported and appreciated by ASEAN countries. These initiatives help strengthen intra-regional connectivity, and restructure regional supply chains towards sustainability.
Especially in 2020, despite facing many difficulties due to the Covid-19 epidemic, Vietnam has proactively coordinated closely with ASEAN countries and partner countries to actively seek solutions to solving problems to Completely conclude the negotiation of the RCEP Agreement after 8 years and make every effort to complete a legal review of the contents of the Agreement. In addition, Vietnam also quickly completed domestic procedures for the signing of the RCEP Agreement as well as successfully organized the signing ceremony of the Agreement in November 2020.
The signing of the RCEP – the world’s largest free trade agreement, facilitating the development of new supply chains in the region, thereby opening up many opportunities for Vietnamese businesses to participate. The establishment of the RCEP Agreement will also provide a long-term stable export market for Vietnam and ASEAN countries as well as create a new regional trade structure in which ASEAN plays a central role, while enhancing prestige. credit of Vietnam and affirmed the leading role of ASEAN.
Thus, it can be said that, although in the context of the Covid-19 epidemic, the negotiation and signing of FTAs continue to achieve important results, 2020 is the year the EVFTA Agreement comes into effect. the signing of the RCEP Agreement. Especially on the evening of December 29, 2020, the Vietnam – UK Free Trade Agreement (UKVFTA on December 29, 2020). UKVFTA together with other Agreements will continue to contribute to facilitating Vietnam’s trade activities with major economies in the world.
As committed, after 6 years UKVFTA takes effect, the UK will abolish import duties on 99.2% of tariff lines, equivalent to 99.7% of Vietnam’s export turnover. Vietnam will eliminate tariffs as soon as the agreement comes into force with 48.5% of tariff lines, accounting for 64.5% of import turnover. After 6 years, the number of tariff lines will be removed, increasing to 91.8%, equivalent to 97.1% of export turnover, and after 9 years it will be about 98.3% of tariff lines (accounting for 99.8% of turnover).
The UK is currently Vietnam’s third largest trading partner in Europe, with about 400 ongoing projects investing over $ 3.6 billion by August 2020. The UKVFTA Agreement is expected to bring about new investment capital flows, promoting technology transfer activities and more transactions from the UK to Vietnam.
Le Kim Lien