FTA with Eurasian Economic Union: Will open many “golden” opportunities?

13/05/2020 - 04:47  

In late May, the Free Trade Agreement between Vietnam and the Eurasian Economic Union (FTA EAEU), including Russia, Armenia, Belarus, Kazakhstan and Kyrgyzstan was officially signed. According to Prime Minister Nguyen Tan Dung, FTA brings many opportunities and advantages for Vietnam in economic development, while also posing new challenges.

Sharing at the seminar “FTA Vietnam – EAEU: In order for businesses to actively seize the opportunities”, Mr. Duong Hoang Minh – Deputy Director of the European Market Department – Ministry of Industry and Trade said: After the agreement comes into effect will create many opportunities for Vietnamese businesses to export goods. Especially, right after the Agreement comes into effect, the fisheries, textile, footwear … will be cut taxes immediately to nearly 90%, in which the tax lines are completely eliminated.

Mr. Duong Hoang Minh also noted that, in order to make the most of the advantages brought by the Agreement, enterprises must carefully study the specific contents of the Agreement with each tax line of each product; Especially, for fisheries, it is necessary to study regulations on rules of origin, issues on food hygiene and safety, quality of goods, etc.

Agreeing with the views of the Deputy Director of the European Market Department, Ministry of Industry and Trade, Mr. Nguyen Hoai Nam, Deputy General Secretary of the Association of Seafood Exporters and Producers, emphasized: “In recent years, Vietnamese enterprises have always identified Russia and countries of the Eurasian Economic Union are potential markets, but Vietnam’s seafood export rate is still quite small due to difficulties in food safety control and inspection. on your side ”.

According to the provisions of the Eurasian Economic Union, an enterprise that has been certified by the State management agency as eligible for export, your side will accept that enterprise. But in fact, Vietnamese enterprises have not been accepted yet because the Eurasian Economic Union has not trusted the Vietnamese inspection and quarantine system. At this point, the countries of this Union will review Vietnam’s quarantine system to draw a final conclusion, if approved, this will be a good signal for Vietnamese seafood exporters. Male.

Mr. Nguyen Van Sua, Vice Chairman of Vietnam Steel Association also shared that Vietnamese enterprises can import high quality steel products with import tax rate of 0%, thereby producing steel products. domestic quality, improve product competitiveness.

But because most domestic steel enterprises are small-scale, only a few hundred thousand tons / year, so these businesses are under pressure when participating in the competitive arena, high production costs leading to product costs. high. Therefore it is difficult to be accepted at the “game”.

According to the representative of the Ministry of Industry and Trade, the negotiations with the Eurasian Union also consider opening partial markets for each different commodity group according to the immediate opening schedule, after 5 years, 7 years and 10 years. Accordingly, it is hoped that the steel industry will have enough time to improve its competitiveness in the future, meeting the requirements of the Eurasian Union and other agreements.

Sharing the same opinion, the representative of the Steel Association affirmed: “There is no other way that businesses must try their best to improve their competitiveness in terms of quality, price, brand and ability to supply and translate. after sales service ”.

He also said that steel enterprises must take measures to innovate technology, apply the most advanced, high quality products, reasonable prices and scale up only a few hundred tons a year up. 4 – 5 million tons to apply the most advanced technology.

Phuong Dung