MOIT VIETNAM | EVFTA Agreement - A new opportunity for logistics services for imported and exported goods from Vietnam to the EU

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EVFTA Agreement - A new opportunity for logistics services for imported and exported goods from Vietnam to the EU

9th December 2020 post by MOIT Vietnam

For an increasingly efficient two-way trade exchange between Vietnam and the EU to optimize the quality and form of logistics services for Vietnam - EU imports and exports in new economic conditions under the impact of Covid transactions -19 and towards the post -Covid-19 is one of the urgent solutions.

Prospects for the development of trade

Recently, some logistics services for goods moving between Vietnam and the EU have become expensive and in short supply, businesses also have to meet some new requirements and conditions due to administrative procedures. Imports and exports, the EU's international goods control process has changed ... it has made it difficult to export goods to the EU.

Speaking at the Vietnam - EU 2020 e-commerce logistics forum in Hanoi on the afternoon of December 8, Mr. Wu Ba Fu, Director of Trade Facilitation Department (Ministry of Industry and Trade) noted that the EU is an important partner for Vietnam in trade cooperation. ... Trade relations between Vietnam and the EU have developed rapidly and efficiently in recent years. In the first 10 months of 2020, Vietnam's exports to the EU, although slightly decreased by 3.8% compared to the same period in 2019, nevertheless reached a high level of 33.23 billion US dollars; while imports of Vietnam from the EU increased by 3.1% over the same period last year, reaching $ 12.42 billion. The EU is currently one of the three largest export markets in Vietnam, in addition to the US and China.

Mr. Vu Ba Phu emphasized that the EVFTA Agreement, effective from August 1, 2020, is creating a great boost for the development of Vietnam - EU trade. However, in the context of the Covid-19 epidemic, two-way trade between Vietnam and the EU is facing many challenges, including difficulties from some logistics activities that do not happen as usual.

In particular, on the side of the Ministry of Industry and Trade, relevant agencies under the Ministry are continuing to review administrative procedures on import and export in order to promote export, facilitate and effectively support import and export businesses. import and logistics service enterprises. Regarding the prospects of developing Vietnam's export circulation to the EU from EVFTA, Mr. Tran Thanh Hai - Deputy Director of the Import and Export Department (Ministry of Industry and Trade) - said that in the context of the economy is affected by Disease. The Covid-19 disease, the implementation of the EVFTA Agreement, has an important meaning to compensate for the economic slowdown, providing opportunities to expand the market to diversify business activities, helping businesses regain momentum. Post-epidemic growth contributes to the resumption of international trade and global supply chains.

At the same time, Vietnam signed the Comprehensive Regional Economic Partnership (RCEP) between ASEAN in November. If CPTPP or EVFTA aims to open up the market, reduce taxes to 0%, RCEP aims to be the central role of ASEAN, facilitating trade and consolidating production to form a common manufacturing space that connects a large regional economy. Thus, RCEP will become an important link for the participation of enterprises in regional and global supply chains, contributing to the formation of a new trade structure in the region, contributing to globalization towards liberalization. and facilitating trade, as well as promoting regional supply chain restructuring following the end of the Covid-19 pandemic and economic recovery.

Consequently, according to Mr. Hai, the next generation of free trade agreements such as CPTPP, EVFTA and RCEP will have a positive impact on institutional reform by increasing the competitiveness of goods, businesses and the economy through access to preferential export markets. tariffs, trade liberalization and facilitation; and lower input costs through cheaper technology transfer and favorable import of inputs.

Efforts to develop logistics services

According to the World Bank's Logistics Performance Index (LPI), Vietnam is also among the top emerging markets with high growth rates in the logistics industry at 13-15%. The number of logistics service enterprises currently numbers about 4,000 enterprises, including warehousing, forwarding, transportation, ... is the result of the Vietnamese government's reform efforts to create a business environment, increase the competitiveness of enterprises in the economy. in general and in the field of logistics services in particular, as well as trying to improve the word within the company. The development of the logistics industry will also create the conditions for Vietnam to quickly become a new manufacturing center in the region with high labor productivity and good competitiveness.

Regarding cooperation opportunities with Vietnam's logistics industry, Mr. Nguyen Tuong, Deputy Secretary General of the Vietnam Logistics Business Association (VLA), said the EU is currently Vietnam's third largest trading partner. EU import and export activities will continue after the deployment of EVFTA. It is also a very favorable precondition for the logistics service enterprises of both sides to expand their business and serve more manufacturing and commercial enterprises.

The VLA also stressed that today Vietnam is still sorely lacking in opportunities to increase business opportunities between the two parties and expand opportunities to participate in logistics infrastructure investments.

Mr. Tran Thanh Hai said that in order to advance the logic industry in order to develop and simplify the import and export of goods, Vietnam should participate in the implementation of technology application technologies in logistics, promote the training of logistics personnel and cooperation in new areas such as urban logistics, circular logistics ... and green logistics.