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Major trade agreements support export growth during the pandemic

06/09/2021

According to the General Statistics Office, in the first eight months of 2021, export turnover of goods is estimated at USD 212.55 billion, an increase of 21.2% over the same period last year. Currently, the country has 30 products with export turnover of over USD 1 billion.

According to the Ministry of Industry and Trade, new-generation agreements such as CPTPP, EVFTA, UKVFTA will continue to create conditions for Vietnamese goods to penetrate major markets, promoting stronger export growth in the coming period.

Recently, Mr. Nguyen Canh Cuong - Vietnam Trade Counselor in the UK, commented: The free trade agreement (FTA) between Vietnam and the UK (UKVFTA) signed by the two governments at the end of the year 2020 in a timely manner has helped many Vietnamese agricultural products have a competitive advantage in the UK market compared to similar products originating from countries that have not yet had an FTA with the UK.

Accordingly, Vietnam's agricultural products entering the UK are exempt from tax, creating opportunities for potential products such as coffee, cashew nuts, pepper, seafood, etc. To support Vietnamese enterprises to export agricultural products to this market, the Vietnam Trade Office in the UK has made efforts to organize a variety of trade connection activities.

Vietnam's exports to European countries (EU) also increased after the EU-Vietnam Free Trade Agreement (EVFTA) was put into effect. Citing export data before and after the EVFTA coming into force, Dr. Vu Tien Loc - Chairman of the Vietnam Chamber of Commerce and Industry (VCCI) stated:

During the first 7 months of 2020, Vietnam's exports to the EU dropped continuously with a decrease of 5.9% over the same period in 2019. However, under the impact of EVFTA, in the last 5 months of 2020, while the total EU's imports from the world still decreased by 20%, imports from Vietnam to this market increased by 3.8%. In particular, in the first half of 2021, exports from Vietnam to the EU increased continuously and stably, at 18.3% over the same period, in which the strong growth was in the group of agricultural, forestry and fishery products.

With the benefits brought by the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), Vietnam's exports have also grown strongly. In particular, this opportunity is further expanded when recently Peru has officially voted to become the 8th member country to ratify the CPTPP.  According to economic experts, CPTPP is the largest export market of Vietnamese shrimp enterprises. Vietnam's fruit and vegetable exports have grown strongly to this market since the CPTPP took effect.

 

Kylie Nguyen

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