Small and medium enterprises (SMEs) in Vietnam are a priority target under the newly-signed European Union-Vietnam Free Trade Agreement (EVFTA), Vu Tien Loc, president of the Vietnam Chamber of Commerce and Industry (VCCI), told a recent conference. Experts, however, pointed out limitations like the lack of information access among Vietnamese SMEs.
For example, many enterprises in key manufacturing sectors did not know when the tax rate of products exported to the EU will return to zero per cent or what that rate is for upcoming years, the experts said.Small and medium enterprises (SMEs) in Vietnam are a priority target under the newly-signed European Union-Vietnam Free Trade Agreement (EVFTA), Vu Tien Loc, president of the Vietnam Chamber of Commerce and Industry (VCCI), told a recent conference. Experts, however, pointed out limitations like the lack of information access among Vietnamese SMEs.#
The conference titled ‘The EVFTA: What happens next’, was organized by VCCI and the European Chamber of Commerce (EuroCham). The EVFTA was signed in Hanoi on June 30 after nine years of negotiations.
Loc said the VCCI and EuroCham will jointly carry out counselling and support programmes for Vietnamese enterprises, according to a Vietnamese media report.
EuroCham chairman Nicolas Audier said Vietnamese businesses need to learn European standards and find ways to apply these, and look for EU partners to easily access markets.
VCCI and EuroCham will jointly establish the EU-Vietnam Business Council, and hold an annual event called the ‘Vietnam-EU Economic Summit’ to promote economic, trade and investment cooperation between the two sides.
The EU will eliminate 99.7 per cent of tariff lines for Vietnam's exports in seven years after the deal comes into force. Up to 70.3 per cent of Vietnamese products exported to the EU will be free of tariffs immediately, said minister of industry and trade Tran Tuan Anh. Only 42 per cent now enjoys zero tariffs.
In response, Vietnam will eliminate tariffs on 64.5 per cent of imports from the EU, rising to 97.1 per cent in seven years. (DS)
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