Webinar “Vietnam: the great potential of the free trade agreement with the EU”

Today took place the webinar “A trip across post-Covid Southeast Asian markets” organized by Confindustria Vicenza and FarExport, in collaboration with Intesa Sanpaolo.

This was the last appointment of the cycle of webinars about ASEAN Countries that took place over the last month, and the protagonist today was Vietnam.

On this occasion ICHAM Executive Director Pham Hoang Hai intervened and explained how cities like Hanoi and Ho Chi Minh City are among the most dynamic of the last year (2019), and that imports and exports with the EU and especially with Italy are growing more and more.

The country’s young and growing workforce, together with its competitive economy and the stable and growth-oriented government, make Vietnam a promising market.

In less than 5 years, Vietnam has climbed 10 positions in the global competitiveness ranking. Data shows that from 2017 to 2020, both the middle and wealthy class, together, will almost triplicate, with an increase from 12 to 33 million.

Growth of the Middle Class

 

 

 

 

 

 

 

 

 

In this perspective, a positive trend for the FDI is noticed. Especially, regarding the commercial relationship Italy-Vietnam, some sectors stand out among others. The Vietnamese economy is focused on import, but also on export.

The TOP 3 EXPORT 2019 (million EUR) are:

  • Machinery: 271.2
  • Accessories and leather: 150
  • Chemical products: 39.5

TOP 3 IMPORT 2019 (million EUR) are:

  • Telecommunications equipment: 836.2
  • Footwear: 240
  • Agricultural products: 242

Other sectors worthy of note are the DIGITAL ECONOMY, the E-COMMERCE, the FOOD & BEVERAGE, the MACHINERY and the FORNITURE SECTOR.

Then the Chief Representative of Ho Chi Minh City (Intesa Sanpaolo) Tomaso Andreatta outlined the Vietnamese economy with a strong presence of many young people who want to build a prosperous future, as well as the country’s growth at the time of the Coronavirus, whose management has been excellent.

The third and last intervention was made by dr. Alessandro Dal Zotto of Confindustria Vicenza, who gave us a detailed and exhaustive explanation of how to benefit from the Europe Vietnam Free Trade Agreement EVFTA. This agreement will reduce duties and tariffs in most of the sectors in which Italy operates, giving benefits to both Italian and Vietnamese investors.

 

 

Specifically, EXPORT liberalization in by sector:

  • Upon entry into force: 100% fabrics, 70% chemicals, 50%pharmaceutical products.
  • After 5 years: 100% dairy products.
  • After 7 years: 100% mechanical components, 100% alcohol, 50% pharmaceutical products, 30% chemicals.

Agricultural products will not be fully liberalized, in order to safeguard the 169 European products of protected origin.

Vietnam also undertakes to gradually comply with European quality and manufacturing standards, as well as with intellectual property regulations.

The EVFTA also helps IMPORTERS, not only exporters, as the reduction in tariffs is wider for goods exported from Vietnam and the bilateral treaty allows a local content to include products from the EU and South Korea (minimum 40% to enforce the treaty).

Strategy, adaptation, flexibility are the keys when making business in Vietnam.

Special thanks go to the Vice President of Confindustria Vicenza, Remo Pedron for organizing the event, and above all because he made it possible for two countries as distant as Italy and Vietnam to interact in this difficult time.

VietNam Breaking News, All the latest news in Vietnam