FTAs open new chances for Vietnamese farm produce to access big markets
Opportunities created by free trade agreements (FTAs) for Vietnamese farm produce to access big markets in the world were explored at the 4th national farmers’ forum in Hanoi on October 11.
Vietnam joined two new-generation FTAs in 2018 and 2019, which were the Comprehensive and Progress Agreement on Trans-Pacific Partnership (CPTPP) and the EU-Vietnam Free Trade Agreement (EVFTA).
The two deals are expected to open up great opportunities for Vietnamese farm produce in 37 markets with a combined population of over 1 billion.
Deputy Minister of Industry and Trade Do Thang Hai emphasised the prospect of cooperation with new partners through the CPTPP such as Canada, Chile, Mexico and Peru, thanks to the application of 0% tariffs for most key farm exports of Vietnam immediately after the pact took effect or after just three to five years.
The EVFTA also gradually reduce import tariffs on Vietnam’s farm exports to 0% over a short course, with 99.7% of Vietnam’s agricultural exports eligible for the 0% tariff after seven years.
The tariff cut is particularly significant because the EU has been one of the top two export markets of Vietnam for consecutive years with bilateral trade reaching nearly US$56 billion in 2018, Deputy Minister Hai said.
Vietnam exported US$30.02 billion worth of agro-forestry-fishery products in the first nine months of 2019, a year-on-year rise of 2.7%.
Products with export turnover of more than US$2 billion include wood and timber products, coffee, rice, cashew nut, vegetables and fruit, and shrimp.