Viet Nam gains benefits from EVFTA and CPTPP: Ministry of Industry and Trade

Update: 17:35 | 05/08/2021
Joining new-generation agreements like the European Union-Viet Nam Free Trade Agreements (EVFTA) and the Comprehensive and Progress Agreement for Trans-Pacific Partnership (CPTPP) has brought great economic benefits to Viet Nam, according to the Ministry of Industry and Trade (MoIT).
Vietnam gains benefits from EVFTA and CPTPP: Ministry
Illustrative photo. (Photo: VNA)

Last year, the export turnover of Vietnamese goods to the European market and CPTPP member countries reached more than 40 billion USD and 38.7 billion USD, respectively.

These figures were revealed by the MoIT in a report on the implementation of the CPTPP and the EVFTA which has been submitted to the Prime Minister.

The ministry said that exports to the European Union and CPTPP countries still achieved positive results amidst the outbreak of the COVID-19 pandemic in 2020.

Accordingly, two-way trade between Viet Nam and EU member countries obtained 55.4 billion USD, down 1.8 percent compared to that of 2019.

The country exported goods worth 40.1 billion USD to the EU, while it imported 15.3 billion USD, leading to a trade surplus of 24.8 billion USD last year with the bloc.

The biggest importers of Vietnamese goods among European countries include Belgium (2.3 billion USD), Germany (6.6 billion USD), the Netherlands (6.9 billion USD), France (nearly 3.3 billion USD) and Italy (3.1 billion USD).

According to the MoIT, goods with great export value to the EU include footwear, plastic products, rice, textiles and garment, and farm produce.

Along with the export growth thanks to the EVFTA, Viet Nam's export turnover to CPTPP members also rose in 2020 compared to the previous year, it said.

Total import-export turnover between Viet Nam and other CPTPP member countries reached 79 billion USD last year, a year-on-year increase of 1.9 percent. Viet Nam exported goods worth 38.7 billion USD to these countries and spent 40.3 billion USD on imports, resulting in a trade deficit of 1.6 billion USD last year.

The country enjoyed a trade surplus with some countries namely Canada and Mexico with a year-on-year rise of 11.8 percent and 12.1 percent, respectively.

Key products for exports to the CPTPP member countries are aquatic products, textile and garments, footwear, pepper, and wooden products.

Viet Nam's participation in new-generation trade agreements has helped the country attract more foreign direct investment (FDI), the MoIT said.

In 2020, FDI investment from CPTPP member countries into the country hit 11.6 billion USD, up 23.4 percent compared to that in 2019 while investment capital of EU enterprises into Viet Nam stood at 1.4 billion USD, down 6.7 percent over the same period last year.

Despite the fact that Vietnamese businesses have initially taken opportunities from EVFTA and CPTPP, there is still much room to improve.

According to a survey by the Viet Nam Chamber of Commerce and Industry, only 29 percent of the enterprises that export goods to CPTPP member countries have enjoyed preferential tariffs as regulated by the agreement.

Regarding the EVFTA, only 38 out of 63 provinces and cities in Vietnam run import-export activities with EU countries.

Thus, it was necessary for Vietnamese enterprises to make more efforts to exploit the advantage of the new-generation trade agreements, the VCCI said.

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(Source: VNA)