Vietnamese Goods Week in Europe: A Long-term Look towards EVFTA

The question for Vietnamese businesses is whether now is the "ripe" time to create a long-term strategy for themselves?

Following a series of Vietnamese Goods Weeks in Europe, we have initially achieved promising results in important products that Vietnam has strived to promote in this important market. This could be the first positive signal about the interest of the Auchan supermarket chain in Vietnamese rice; or Thanh Binh Jeune supermarket - following lychees, will import Vietnamese branded coffee to sell in France... Or starting in the weekly activities, there have appeared booths promoting Vietnamese brands such as Sobica coffee...

EVFTA is expected to continue promoting trade relations between Vietnam and the EU.

Preparing a long-term vision and strategy to seize opportunities as soon as the Vietnam – EU Free Trade Agreement (EVFTA) is officially signed and comes into effect is something that businesses need to do immediately.

Speaking at the workshop “Vietnam – a rapidly growing economy” (held within the framework of trade promotion in Lyon), Mr. Philippe Valentin, Vice President of the Lyon Chamber of Commerce and Industry, emphasized that the conclusion of EVFTA negotiations creates important opportunities for Vietnamese and European businesses in general, and French businesses in particular.

Mr. Philippe Valentin emphasized: "The completion of the Vietnam-EU Free Trade Agreement is of particular importance and businesses need to quickly seize the great opportunities from this agreement, especially tax incentives. In addition, Vietnam's active membership in the newly established ASEAN Economic Community and the TIPP Agreement also create many important benefits. French and Vietnamese businesses have long promoted relations, so we need to cooperate to take advantage of the great benefits that the agreements bring."

Also at the workshop, representatives of DS Law Firm, the General Confederation of Small and Medium Enterprises of the Rhone Alpes region and successful businesses in Vietnam discussed with the Vietnamese business delegation many aspects to succeed when the Vietnam-EU Free Trade Agreement is signed. Delegates speaking at the workshop in France or Italy all affirmed that the opportunities are huge and it will be delayed if there is no long-term strategy right now.

For her part, Deputy Minister of Industry and Trade Ho Thi Kim Thoa went into detail about the particularly attractive tax incentives when the EVFTA is signed and implemented. The Deputy Minister said: "The EVFTA will continue to promote trade relations between Vietnam and the EU, helping to further expand the market for exports, especially products in which both sides have strengths. When the agreement is implemented, most of the EU's important export products and some Vietnamese products such as agricultural products, textiles, footwear, seafood, etc. will receive more preferential treatment when accessing the other side's market. The two sides will eliminate import taxes on more than 99% of tariff lines."

According to Ms. Ho Thi Kim Thoa, with Vietnam's dynamically developing economy and market of over 90 million consumers, the potential for French businesses to further develop economic and trade relations with Vietnam after the FTA is very clear.

Going into details, Mr. Dang Hoang Hai, Director of the European Market Department, emphasized that businesses' preparation only needs to start with reading the tax regulations as well as the requirements for their products in the Agreement.

Mr. Dang Hoang Hai said: "Businesses probably do not need to think too much about the benefits of FTAs, they just need to start with very simple things like opening the agreement to see the parts related to them, the tax lines directly related to their products, how the tax lines will be reduced, what is the roadmap, when they will be cut, how much percentage will be cut so that they can calculate the cost of their products. Next, look at the rules of origin so that their goods can really benefit from the agreement, then for items related to product quarantine and inspection, they must carefully read the SPF programs, to bring their products to the international market, then, if the product is related to technical barriers, or related to other manufacturers in large quantities, they should read the chapter on trade defense. The best way to take advantage of the FTA is to open up and read the parts related to them and have long-term preparation."

In seminars organized by the Ministry of Industry and Trade in Italy or Lyon, France, leaders and businesses on both sides emphasized the great benefits that the EVFTA Free Trade Agreement will bring to businesses of the two countries.

Valentin Tran, Export Director of Casino, shared: "I am very optimistic about exporting goods from Vietnam to Europe when EVFTA is signed. When EVFTA is available, the export tax will drop to 0%, which will greatly benefit Vietnamese goods. For example, Vietnamese rice is currently unable to compete with Cambodian rice in Europe due to high taxes, and Casino must now export Vietnamese rice to Africa to compete... To take advantage of the benefits, Vietnamese businesses need to research the market and make themselves known to the local market."

Mr. Valentin Tran's advice is: "You need to participate in product displays and fairs in Europe; and you need to visit supermarket chains in France and Europe to understand consumer tastes and business practices. And of course, the root of success is still product quality - you need to improve and affirm product quality by meeting international standards."

Textile and garment industry faces many opportunities and challenges when EVFTA comes into effect

On the Vietnamese side, businesses are also very aware of the need to build a competitive brand. Ms. Tran Tuong Anh, Hoa Tho Garment Company said: "We will also have to design our own brands. Regarding this issue, our textile group focuses on perfecting to have products with our own brand. And this is also the general policy of the Vietnam Textile Group."

Obviously, for Vietnamese businesses, to be successful and get ahead of EVFTA, long-term preparation is needed from now, otherwise it will be too late.

Bringing goods directly through distribution chains, as the Ministry of Industry and Trade is promoting trade, helps Vietnamese goods undergo European standard tests, learn how to manage the quality of goods and, importantly in European business culture, learn a long-term view.

Long-term in ensuring product quality; long-term with cooperation agreements as well as long-term in the vision of building and developing Vietnamese brands - only then can we create competitiveness for the Vietnamese economy and products in Europe in particular, and the world in general./.

According to VOV