Free Trade Agreement (FTA) can be understood generally is an agreement between 2 or more members to eliminate the barriers to the most of trade between the members.
EU-VIETNAM Free Trade Agreement bring big opportunities to Vietnamese agricultural products export
There is a movement for Vietnam agriculture export to EU is EU-VIETNAM Free Trade Agreement (FTA) signed on 30 June 2019, opening a big export opportunities to most of Vietnamese enterprises. With the commitment to eliminate almost 100% of the tariff and export turnover from Vietnam to the EU in goods trade, this can be considered as the highest level of commitment for a Vietnamese partner in the FTA agreements.
For agricultural products, the tax rate reduction for the first year and after 10 years are 74.6% and 97.3 respectively, some grain products will have a tax reduction to 0%, according to information from Minister of Industry and Trade Tran Tuan Anh.
For fruits and vegetables, the tax will be eliminated when EVFTA has its effect, 50% of seafood products in the tax lines will be eliminated when EVFTA takes effect. The 50% remaining will be implemented in the 5-7 year roadmap.
Development opportunities for Vietnam agriculture
At the moment, Vietnam has been implementing 11 FTA agreements with partners in ASEAN, Japan, India, Australia-New Zealand, China and the latest European Union- EU (EVFTA). Thanks to these agreements, most Vietnamese goods exported to these countries are entitled to 0% tax rate. This is definitely an advantage for us to develop further exports to these countries.
Moreover, the market for agricultural products consumption is also broaden and reached to the peak of 40.02 trillions of USD in recent year 2018.
According to the Ministry of Agriculture and Rural Development, FTA helps expand export markets with strategic commodities and commitments of reduce tariffs. Additionally, the supply of raw materials for our agricultural production is also diversified. FTAs also open up investment opportunities for Vietnamese enterprises in foreign countries and also attract foreign investment in Vietnam.
Certainly, with diversified development, Vietnamese enterprises will have to transform themselves to adapt to the development of the world, to approach high technology gradually, improve management skill and innovating skill to position and grow with the market.
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