POTENTIAL AND INVESTMENT OPPORTUNITIES Updated at 08:42:02 08/18/2020  (Views:  77 )
EVFTA paves the way for Binh Thu

EVFTA paves the way for Binh Thuan’s advantageous goods penetrating to the EU markets

BTO - The Vietnam - European Union Free Trade Agreement (EVFTA), which officially took effect from August 2020, is expected to bring many favorable opportunities for our country. Along with the country, Binh Thuan is also actively preparing conditions and constantly making efforts to join the "high speed route" and bring local advantageous goods and products to the EU market …

Opening great opportunities

Immediately after taking effect, Prime Minister Nguyen Xuan Phuc chaired an online conference on the implementation plan of the EVFTA to 63 provinces and cities nationwide.  As this is one of the new generation Free Trade Agreements that Vietnam has joined with many deep and wide commitments. Moreover, it is the first developing country in the Asia-Pacific region to have free trade relations with the EU.

Particularly in Binh Thuan, the EU is one of the main commodity export markets of the local businesses. Statistics show that the yearly export turnover of goods to the EU market accounts for 20% of the local export turnover of goods, mainly: Seafood (fresh and frozen), agricultural products (part many are dragon fruits) and footwear products with main markets from the Netherlands, Italy, Germany, Belgium, France, the UK …

Considered as an "expressway" to the west connecting Vietnam with a market of more than 450 million people and having the leading potential in the world, the EVFTA Agreement really opens great opportunities for our country. Accordingly, when deployed, the EVFTA Agreement commits to open the strong markets as well as eliminate import duties up to nearly 100% of the EU tariff. Therefore, Vietnamese businesses are expected to increase exports to the EU by 42% in 2025, up to nearly 45% by 2030 compared to the scenario without agreements and increase investment FDI attraction to Vietnam …

Garment is one of the Binh Thuan's advantageous exports to the EU market.

Using in effectively way

However, the implementation of the agreement also poses many challenges for Binh Thuan enterprises when most of them are small-scale, limited capital resources and production processes have not met EU standards. Some local businesses are so far still lacking in human resources with foreign languages, professional trade promotion negotiation skills to carry out export activities to the EU market ... Therefore, in order to take advantages of opportunities and cope with challenges associated with EVFTA, the locality needs to deploy a number of solutions related to the agreement immediately .

In the coming time, the province and functional sectors will focus on disseminating and raising awareness for Binh Thuan enterprises about international economic integration in general, especially about opportunities and challenges from the EVFTA Agreement. Particularly in terms of how to take advantage of EVFTA commitments in business activities suitable with local characteristics and socio-economic development conditions. Continuously, a number of solutions to remove difficulties are kept on while increasing turnover to the EU market through products with export advantages such as seafood, garment, agricultural and forestry products …

Along with promoting the brand image of Binh Thuan's export advantageous products to the EU market, the locality will support businesses to participate in trade promotion events in this market. At the same time, it also strengthens the quality control of key export products from production, harvesting, purchasing, processing, and packaging to ensure food safety so as to meet strict requirements when exporting to EU market.

To local businesses, Binh Thuan needs to boldly invest in renovating technology and equipment for the production of advantageous products, focusing on training and attracting high-quality human resources. Especially in the development and application of appropriate quality management systems and brand protection for the manufacturing sector, first of all, priority is focusing on groups of aquatic products, agricultural and forestry and garment products, etc.

For traditional markets such as the Netherlands, Germany, the UK, France, Italy, and Belgium, which are considered as the gateway market spreading to other countries in the EU, Binh Thuan enterprises need to exploit to the maximize the EVFTA-offered advantages so that they can expand market shares and promote their competitive advantages and so on.

 Translated by Uyên Linh  (Source: Binh Thuan Newspaper)

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