VN FIRMS ASKED TO PREP FOR FTA WITH EU

The trade pact will go into force in 2018. But without careful preparations, the Government and enterprises might be shocked when the FTA takes effect, Bruno Angelet told a conference held in HCMC on March 3 on the Whitebook 2016 launch and the FTA prospects.

The event was organized by the European Chamber of Commerce in Vietnam (EuroCham) in collaboration with the Vietnam Chamber of Commerce and Industry (VCCI) and the EU Delegation to Vietnam.

As for capable countries, market openness is no problem. However, countries with limited capabilities should prepare a to-do list.

Vietnam is strong in export but this is not enough and preparations depend largely on the Government, Angelet said. He hoped the Government will continue reforms to enable the nation to benefit from the FTA.

Angelet said the challenges Vietnam would likely face are how to maintain growth, make use of its young population and improve the performance of the manufacturing sector, as much of the nation’s export revenue is contributed by foreign direct investment (FDI) enterprises.

With the gradual removal of tariffs as committed in the agreement, close to 99% of Vietnam’s goods exported to the EU will be tax-free. This, according to Angelet, is a big advantage for Vietnam.

Angelet told reporters on the sidelines of the conference that to ensure the pact would produce as good results as expected, the Government would have to step up reforms while the corporate sector should make preparations. 

Vietnam’s preparations help the EU know what the Southeast Asian nation needs in terms of technical and financial assistance in the next two years, he continued.

As requested by the business community and EU member states, the EU will publish a handbook on the FTA in English, so that EU companies can understand implications and benefits of the agreement and have an overview before the FTA takes effect.

The EU Delegation to Vietnam will also partner with VCCI to produce a similar handbook for Vietnamese enterprises. The handbook is expected to be launched this May to help local enterprises better understand the agreement.

According to the Whitebook 2016, the EU’s Food and Feed Safety Alerts pointed out that between January and September 2015, more than 25 products of Vietnam were refused for import into the market while around 40 other products sought import licenses.

Last year, up to 126 Vietnamese-made products failed to get quick import licenses from the EU market.

Source: The Saigon Times