Viet Nam - EU Trade Journal QIII/2021
By: European-American Market Department and the Trade and Industry Information Center - Ministry of Industry and Trade
In the third quarter of 2021, the EU's economy continues to maintain its recovery momentum in the context of the member states' governments gradually easing many restrictive measures and the European Central Bank (ECB) still maintaining maintaining loose monetary policy with a record support package of 1,850 billion euros. According to preliminary data from the European Statistics Office (Eurostat), the EU's GDP in the third quarter of 2021 increased by 2.1% compared to the previous quarter and by 3.9% compared to the third quarter of 2020. Facing the positive developments of the EU economy, in the World Economic Outlook report released in October 2021, the World Monetary Fund (IMF) raised its GDP growth forecast for the Eurozone from 4 6% to 5% in 2021.
In the fourth quarter of 2021, the EU economy is supported by a positive outlook of domestic consumption demand, export activity and the service sector with the reopening of the tourism sector. However, the recovery trend of the EU economy also faces many risks, especially in the context that inflation has reached a record high in nearly 13 years with an estimated increase of 4.1% in October. 2021, while supply chain disruptions, shortages of raw materials, difficulties in logistics activities... are still ongoing.
Meanwhile, Vietnam's bilateral trade with the EU market in the third quarter of 2021 encountered many difficulties given the domestic economy was seriously affected by the 4th wave of Covid-19 epidemic. Many localities across the country had to apply social distancing and implement the "3 on the spot" option, causing the production and export of goods of many businesses to be halted.
According to statistics of the General Department of Customs, in the third quarter of 2021, bilateral trade turnover between Vietnam and the EU reached 13.6 billion USD, down 2.9% compared to the second quarter of 2021. In which, export turnover decreased by 3.3% and import decreased by 1.8%.
However, thanks to good growth results in the first half of 2021, in the first 9 months of 2021, the bilateral trade turnover between Vietnam and the EU reached 41.3 billion USD, still up 13.4% compared to that of the EU. in the same period of 2020. In which, exports increased by 11.7% and imports increased by 17.6%, bringing the trade balance in the first 9 months of 2021 to USD 16.4 billion. In the fourth quarter of 2021, trade activities between Vietnam and the EU are expected to gradually recover, but the growth rate will be difficult to spike compared to the same period last year in the context that production activities cannot soon recover while Freight rates remain at record highs.
Some notable information
- The European Commission (EC) issued a notice amending regulation No. 1881/2006 regarding the maximum level of cadmium in certain foods such as vegetables, fruits and rice, meat.
- The European Commission has issued Regulation No (EU) 2021/1378 on the issuance of certificates to exporters in third countries regarding the importation of organic products into the EU and establishing list of accredited control bodies in accordance with Regulation (EU) 2018/848.
- According to data from Eurostat, in the first eight months of 2021, the EU's trade surplus with the external market reached €93.4 billion, lower than a surplus of €110.6 billion in the first eight months. 2020.
Source: Vietnam Free Trade Agreement Portal (fta.moit.gov.vn)
The journal (Vietnamese) is attached below:
- Report: "Vietnam after two years of EVFTA implementation from a business perspective"
- EVFTA with Viet Nam's Trade Journal on Agricultural Products QIV/2021
- EVFTA with Viet Nam's Trade Journal on Timber and Wooden Handicraft Industry QIII/2021
- E-commerce at the Border: Understanding customs and indirect taxes for United States and European Union markets