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The EU and ASEAN represent more than 1 billion people and 25 per cent of global economic power

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Issuing date: 26/11/2020 Issuing authority: Ministry of Industry and Trade

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Vietnam is continuing to feel the economic impact of Covid-19 – as is every country around the world. Since August, however, the country has been boosted by the signing of a free trade deal with the European Union (EU).

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Vietnamese exporters should further exploit the 28-member European Union to increase their market share in the promising region, Vietnam Trade Counsellor in Germany Bui Vuong Anh has said.

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Vietnam and the United Kingdom, which have been in a strategic partnership since 2010, are expected to strike a free trade agreement soon. Vietnam’s Prime Minister Nguyen Xuan Phuc expressed hope for an agreement

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Plenty of local firms have weathered the COVID-19 crisis by selecting niche markets and diversify products to enhance their competitiveness and gain access to the EU market.

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According to the Department of Crop Production, the EU's total demand for imported rice is 2.3 million tons per year, with a value of 1.4 billion euros in 2019.

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With the tariffs being slashed to 0% under the EU-Vietnam Free Trade Agreement (EVFTA), Vietnamese coffee exports to the Scandinavian market, including Sweden, Denmark, and Norway

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The EU-Vietnam Free Trade Agreement (EVFTA) is likened to a "highway" leading Vietnamese goods, including agricultural products, to the large and potential EU market quickly and effectively. However, to go on that "highway", Vietnam is suggested to prepare a "vehicle" that satisfies the European standards.

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Along with tariff incentives brought about by the implementation of the EVFTA, local businesses have been advised to enhance their capacity to join new supply chains as a means of fully tapping into opportunities presented by the trade pact, according to insiders.

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