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Great economic benefits from EVFTA and CPTPP

05/08/2021

Participating in new-generation trade agreements is bringing great economic benefits to Vietnam. In 2020, Vietnam's exports to Europe reached more than USD 40 billion, to countries participating in the CPTPP reached more than USD 38.7 billion.

According to the Ministry of Industry and Trade, in the context of the outbreak of the COVID-19 pandemic in 2020, exports to the European market and the markets of countries participating in the CPTPP still achieved positive results.

Accordingly, trade exchange between Vietnam and European Union (EU) member countries reached USD 55.4 billion, decreased by 1.8% compared to 2019. Specifically, Vietnamese enterprises have exported to the EU USD 40.1 billion, while importing from the EU about USD 15.3 billion. Vietnam's trade surplus with the EU is about USD 24.8 billion in 2020.

EU countries with a large import value of Vietnamese goods are Belgium (USD 2.3 billion), Germany (USD 6.6 billion), the Netherlands (USD 6.9 billion), France (nearly USD 3.3 billion), and Italy (USD 3.1 billion).

Goods with great export value to Europe are footwear, plastic and plastic products, rice, textiles, and vegetables.

According to the Ministry of Industry and Trade, in 2020, many Vietnamese enterprises have initially taken advantage of the advantages from the EVFTA to boost their exports to the EU.

Also according to the Ministry of Industry and Trade, in 2020, two-way trade between Vietnam and CPTPP member countries reached USD 79 billion, increased by 1.9% compared to 2019.

In which, exports of Vietnamese enterprises to CPTPP countries reached about USD 38.7 billion, imports from these countries reached USD 40.3 billion. Vietnam's trade deficit from CPTPP countries is about USD 1.6 billion.

For the 5 countries that have implemented the CPTPP, namely Mexico, Canada, Japan, Singapore and Australia, Vietnam's export value reaches USD 33.9 billion, Vietnam has a trade surplus of about USD 3.5 billion. Especially to the Mexican and Canadian markets, the export value of Vietnam increased by 11.8% and 12.1%, respectively.

Goods with great export value to CPTPP countries are seafood, footwear, textiles, pepper, timber and wood products, machinery and equipment.

Besides the positive signals from exports, Vietnam's participation in new-generation trade agreements such as EVFTA and CPTPP has strongly attracted FDI inflows.

 

Kylie Nguyen

© 2019 Vietnam Bank for Agriculture and Rural Development No. 2 Lang Ha street, Ba Dinh district, Hanoi, Vietnam
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