Three years into EVFTA: Vietnam’s agricultural exports grow impressively

04/08/2023    440

Since the EU-Vietnam Free Trade Agreement (EVFTA) took effect in August 2020, most commitments in the agreement have been implemented and left positive impacts on business activities, especially trade, said Do Viet Ha of the Trade Office of the Vietnamese Embassy in Germany.

She cited statistics from the General Department of Vietnam Customs which showed Vietnam’s total export turnover to 27 member countries of the European Union (EU) in the period 2020-2022 recorded good growth.

Specifically, in 2022, total value of Vietnam’s export to the EU reached 46.83 billion USD, marking a year-on-year increase of 16.7%, and accounting for 12.6% of Vietnam's total export turnover. Particularly, exports to Germany totalled 8.97 billion USD, up 23.1% compared to 2021.

Meanwhile, data from the German Federal Statistical Office (Destatis) showed Germany's import turnover from Vietnam reached 15.4 billion USD, up 21% compared to 2021, Ha said, explained that the difference between the figures is due to statistical methods and different rules of origin applied.

She listed some Vietnamese export items that recorded impressive growth to Germany, which were cameras, camcorders, and components, up 265.9%; toys and sports equipment up 126%; footwear 53.8%; textiles 37%.

The export of some agricultural and aquatic products grew steadily, with aquatic products increasing by 26.1%; vegetables by 8%; coffee by 13.1%; tea by 14.6%.

The EU is Vietnam's third-largest trading partner and an import market for agricultural products with strong growth after the EVFTA came into effect. Vietnam's agricultural sector is considered one of the biggest beneficiaries of the EVFTA.

Vietnam's key agricultural products exported to the EU are seafood, rice, and vegetables, which all enjoy preferential tax rates right after the EVFTA comes into effect, while rules on origin and protection of geographical indications give Vietnamese agricultural and aquatic products opportunities to enhance their brands and product value on the EU market.

The official noted that rice is not a key item in export to the EU, but its export turnover in this market has increased steadily in recent years. This shows that EVFTA has actively supported Vietnam's exports. Businesses also make the most of the rice quotas to enjoy the 0% tax rate that the EU gives Vietnam.

Last year, rice exports to the EU market increased sharply, reaching 94,510 tonnes and exceeding the annual quota of 80,000 tonnes set in the EVFTA. Rice exports to some EU markets posted strong growth such as the Netherlands (44%), Poland (68%), Spain (89%), and Belgium (149%).

Regarding the benefits of the agreement for EU countries, Ha said that Vietnam has made a strong commitment to cutting taxes under the EVFTA,  thereby offsetting the high transport costs from EU to Vietnam and increasing EU products' competitiveness.

Products from Germany/EU enjoy tariff reduction under EVFTA including vehicles, electrical machinery and equipment, plastic products, iron and steel, mineral oil, meat and poultry, sausages, milk, and dairy products.

In addition, Vietnam's commitments related to customs reform and trade facilitation, food hygiene and safety, animal and plant quarantine, technical measures for trade, and trade remedies make it easier for EU goods to access the Vietnamese market.

However, when entering the EU market, Vietnamese goods still face difficulties, particularly in meeting the rules of origin to enjoy preferential tariffs, and the risk of increasing trade remedies, Ha said.

To overcome these difficulties and maximise benefits from the EVFTA, the official said that businesses need to proactively study the guidelines of the agreement, the standards of goods exported to the EU market, as well as the EU market, people's tastes and consumption need, with a view to suitably improving product quality and design.

According to Ha, the government needs to develop an overall strategy to provide orientations and roadmaps for ministries, sectors, and localities to fully and promptly implement the commitments of the EVFTA; develop mechanisms to facilitate the development of domestic enterprises, prepare solutions to support industries under great competitive pressure when implementing the agreement.

More policies are also needed to attract foreign investment from the EU to Vietnam, she said.

Vietjet offers tickets to Japan, Singapore, Indonesia from only 0 VND

Vietjet is offering thousands of attractive international flight tickets from 0 VND on every Wednesday, Thursday, Friday in August, reported Vietnam News Agency.

Especially, with this week's zero-dong flight menu from August 2 to August 4, Vietjet invites travel fans to discover some of the most favourite destinations this summer: Japan, Indonesia, Singapore at and Vietjet Air mobile app.

Accordingly, from 0:00 to 23:59 from August 2 to August 4, passengers have opportunities to hunt 0 VND tickets on routes including Hanoi – Fukuoka/Nagoya, Ho Chi Minh City – Bali/Jakarta, Hanoi – Bali, Da Nang – Singapore at or Vietjet Air mobile app with flexible flight time from August 10, 2023 to March 31, 2024.

The new-age carrier Vietjet has not only revolutioniszed the aviation industry in Vietnam but also been a pioneering airline across the region and around the world. With a focus on cost management ability, effective operations, and performance, applying the latest technology to all activities and leading the trend, Vietjet offers flying opportunities with cost-saving and flexible fares as well as diversified services to meet customers’ demands.

Vietjet is a fully-fledged member of International Air Transport Association (IATA) with the IATA Operational Safety Audit (IOSA) certificate. As Vietnam’s largest private carrier, the airline has been awarded the highest ranking for safety with 7 stars by the world’s only safety and product rating website and listed as one of the world's 50 best airlines for healthy financing and operations by Airfinance Journal in many consecutive years. The airline has also been named as Best Low-Cost Carrier by renowned organizations such as Skytrax, CAPA, Airline Ratings, and many others.

Traffic accidents decline over seven months

The numbers of traffic accidents and related deaths and injured people during the first seven months of 2023 decreased compared to the same period last year, reported Vietnam News Agency according to statistics from the National Traffic Safety Committee.

Chief of the committee’s Office Tran Huu Minh said that 5,928 traffic accidents were recorded during the period (from December 15, 2022 to July 14, 2023), killing 3,428 and injuring 4,117 others.

The respective figures fell 659 (10%), 411 (10.71%), and 143 (3.36%) year on year.

Among the accidents, 5,858 happened on roads with 3,379 deaths and 4,104 injured people, down 9.88%, 9.87% and 3.25% from a year earlier, respectively.

There were 52 railway accidents with 38 deaths and 13 injured people (down 14.75%, 15.56%, and 13.33%), 13 inland waterway accidents with nine deaths and no injured people (down 38.1%, 72.73%, and 100%), and five maritime accidents with two deaths and none sustaining injuries (the numbers of accidents and injured people were unchanged while deaths decreased 83.33%).

Meanwhile, one aviation accident and 53 incidents threatening flight safety occurred during the seven months, dropping 13% year on year in total.

However, traffic accidents increased during June 15 - July 14, when there were 958 accidents with 563 deaths and 646 injured people, respectively rising 12.05%, 14.9%, and 12.35%, statistics show.

Vingroup raises funds from bond issuance for VinFast factory in Hai Phong

Vingroup, the largest private economic conglomerate in Vietnam, is going to issue bonds to mobilise VND10 trillion for its affiliate VinFast’s car manufacturing plant in Hai Phong, reported the Voice of Vietnam.

The group is expected to raise VND6 trillion from 36-month term bonds and VND4 trillion from 24-month term bonds, offering a price of VND100,000 each bond.

Holders of 36-month term bonds will enjoy an annual interest rate of 15% for the first two years, and then a floating interest rate equal to the reference interest rate plus 4.5% in the following years.

Meanwhile, holders of 24-month term bonds will enjoy an annual interest rate of 14.4% for the first two years, and then a floating interest rate equal to the reference interest rate plus 4% in the following years.

The money to be raised from bond issuance will be used to invest in VinFast’s car manufacturing plant in Dinh Vu Economic Zone in the northern port city of Hai Phong.

Established in 2017, VinFast, an affiliate of Vingroup, owns a state-of-the-art automotive manufacturing complex with globally leading scalability that boasts up to 90% automation in Hai Phong.

VinFast is committed to its mission of creating a sustainable future for everyone. The company converted into a fully EV manufacturer in 2022, and has delivered four EV models: VF e34, VF 8, VF 9 and VF 5 to customers in Vietnam to date.

VinFast recently crossed an important milestone on the journey to becoming a recognised global EV brand with the first VF 8 EVs exported to North America earlier this year. It hosted a groundbreaking ceremony on July 28 for its electric vehicle plant in North Carolina, USA.

The company has also opened its flagship stores in Europe in an effort to make inroads into this lucrative market./.

Source: Communist Party of Vietnam