EVFTA officially took effect, the road to the EU is wider with rice, shrimp, and wooden products in Vietnam

Published 2020년 8월 1일

Tridge summary

The Europe-Vietnam Free Trade Agreement (EVFTA), which became effective from August 1, 2020, is set to revolutionize the trade dynamics between the EU and Vietnam. This agreement marks a significant milestone in eliminating tariffs and quotas, offering Vietnamese rice, wood products, and seafood a path to the EU market. Historically, rice exports from Vietnam to the EU were limited due to high tariffs, but with the EVFTA, an increase of 60% in rice exports to the EU is forecasted by 2025. The agreement also promises to boost the wood industry by providing Vietnamese enterprises with improved market access and modernization opportunities. Furthermore, the seafood sector anticipates a competitive edge against countries without FTAs with the EU, with significant tariff reductions for key products like shrimp and tuna. This agreement is expected to bolster Vietnam's economic growth, with the European Commission projecting an increase in the EU's GDP by 29.5 billion USD and exports to Vietnam by 29% by 2035.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

"Under the EVFTA commitment, the EU will grant Vietnam a quota of 80,000 tons of rice (0% tax) on milled rice and fragrant rice, and abolish the tax on broken rice in 5 years. This is an opportunity to push forward." strongly export rice to the EU in the coming time, because this region is consuming about 2.5 million tons of rice / year "- Mr. Tran Thanh Hai, Deputy Director of the Import and Export Department (Ministry of Industry and Trade) emphasized. Up to this point, Vietnamese rice is still an unfamiliar name to the EU market. In 2019, Vietnam can only export a limited number of rice to the EU with a modest value of 10.7 million USD. One of the reasons that makes Vietnamese rice difficult to find its way to the EU is because the tax rate that the EU is imposing on rice imported from Vietnam is quite high, specifically the absolute tax of 175 EUR / ton for milled rice, 65 EUR. / ton for broken rice, 211 EUR / ton for rice. But with EVFTA officially taking effect, all tax rate ...

Source: Danviet