Ha Noi proactively takes advantage of opportunities from EVFTA

21/08/2020

VGP - Appreciating the export advantages brought by the European Union (EU)-Viet Nam Free Trade Agreement (EVFTA) to Vietnamese enterprises in general and businesses in the city in particular, Ha Noi has proposed many solutions to take advantage of opportunities from this important deal.

Large room for exports

Speaking at a recent virtual conference on an action plan to implement the EVFTA, a representative of the Ha Noi People’s Committee said that  23 out of the 27 EU member states are investing in the city with a capital of US$4.16 billion, accounting for nearly 10% of the total US$46 billion poured by foreign investors into the locality.

According to economic experts, the EU is a potential export market for Viet Nam as a whole and Ha Noi in particular. This is a vast market with the population of about 500 million and an annual gross domestic product (GDP) of US$18 trillion. The bloc is also an important trading partner of Viet Nam, with two-way trade reaching US$55.8 billion in 2018.

Particularly, with a strong commitment to market opening and elimination of import duties on nearly 100% of its tariff lines, the EVFTA is expected to open up great export opportunities for Vietnamese enterprises and Ha Noi’s companies as well. 

Specifically, many forecasts say that Viet Nam’s exports to the EU will increase by about 42% in 2025 and approximately 45% in the following five years.

Measures to boost exports

From the aforementioned analyses, the Ha Noi People’s Committee assessed that the implementation of the EVFTA will help accelerate trade growth between Ha Noi and the EU in the near future.

To conquer the EU market, the city will carry on with its administrative reform, improve the investment-business environment and participate in investment promotion programs to attract EU investors.

Illustration photo

Given these advantages and challenges, the Ha Noi People’s Committee proposed that the Prime Minister promptly promulgate an EVFTA implementation plan, asking ministries, departments and sectors to issue specific instructions to help cities and provinces, including Ha Noi, implement and enhance the efficiency of cooperation contents under the agreement, thus increasing export opportunities for enterprises in the city and the whole country.

Over recent times, following the direction of the Prime Minister, Ha Noi has drafted the comprehensive implementation of investment promotion programs as well as cooperation programs between the city and EU countries, especially with localities and countries that have long-term and traditional relations with Ha Noi./.

By Vien Nhu