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Trade surplus to the EU increased impressively thanks to EVFTA

03/06/2022

In the first five months of 2022, the export of goods to the EU market continues to prosper thanks to the advantages of EVFTA.

According to the General Statistics Office, in the first five months of 2022, the total export turnover reached USD 152.81 billion, an increase of 16.3%.

Particularly, exports to the European Union (EU) market area recorded an increase of 20.3% over the same period, a trade surplus of USD 13.4 billion, an increase of nearly 47%.

Trade in goods between Vietnam and the EU has prospered compared to the previous quarters thanks to the advantages brought about by the EU-Vietnam Free Trade Agreement (EVFTA) and European countries' economic recovery, increasing consumption.

Exports of agricultural products (cashew, coffee, vegetables, fruits, seafood, rice, furniture) to the EU have accelerated. For example, with the cashew industry, only in the first four months of the year, exports to the EU reached 48,680 tons, worth USD 290.23 million, an increase of 21.8% in volume and 21.4% in value compared to March.

According to General Secretary of the Vietnam Cashew Association Dang Hoang Giang, the EU is currently Vietnam's second largest cashew nut export market, accounting for 23% of output and 22% of the total value of the industry. The EU market has great potential for Vietnamese cashew nuts to occupy the No. 1 position.

With the EVFTA, the tax rate for cashew products imported from Vietnam will be reduced to 0%. This is a great opportunity for cashew businesses, because without the EVFTA, cashews exported to the EU were subject to 7-12% tax.

Meanwhile, seafood to the EU also accelerated. According to the Association of Seafood Exporters and Producers (VASEP), in the first four months of this year, the export turnover of the whole seafood industry reached nearly USD 3.6 billion, an increase of 44.5% over the same period last year, of which to the EU reached USD 422 million, an increase of 47.3%, etc.

In 2021 alone, seafood exports to the EU of about USD 1.077 billion, an increase of 12.3% compared to 2020, making the EU the third largest market after the US and Japan.

Similarly, with the textile and garment industry, exports to the EU also had a good increase. The European market all increased imports of textiles, garments and footwear from Vietnam, promoting the export of these two industries to increase sharply, of which in the first four months of the year, textiles and garments to the EU reached USD 1.3 billion, an increase of 34.6%, footwear exports reached USD 1.77 billion, an increase of 19% over the same period.

 

Kylie Nguyen

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