Enterprises need to make use of EVFTA

The EU-Vietnam Free Trade Agreement (EVFTA) officially came into effect on August 1. It is the first FTA the EU has signed with a developing country in the Asia-Pacific region. The level of commitment Vietnam has made is the highest of any such agreement it has signed.

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The EU is Vietnam’s third-largest trade partner and second-largest export market. According to research from the Ministry of Planning and Investment, the EVFTA will result in Vietnam’s GDP rising by an average of 3.25 percent by 2023 and 7.72 percent by 2033.

Given the breaking of supply chains by Covid-19, Vietnamese enterprises may struggle to make proper use of the valuable EU market. But, in general, their competitive edge will improve thanks to institutional reforms and an enhanced legal framework.

In the context of the challenges presented by the pandemic, the efforts of the Government, ministries, and agencies in reform will help local businesses stay ahead of their rivals.

To fully tap into the new-generation agreement, Vietnamese businesses need to actively bolster their competitiveness by developing long-term plans, raising production and business capacity, and proactively creating supply chains./.

VNA