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EVFTA, CPTPP bring about great economic benefits for Vietnam

EVFTA, CPTPP bring about great economic benefits for Vietnam

Women work at a textiles and garments company in Go Vap District, HCMC. The EVFTA and CPTPP have significantly facilitated Vietnam’s exports to the EU and CPTPP members - PHOTO: VNA

HCMC - Vietnam has enjoyed significant economic benefits, especially in terms of exports, from new-generation free trade agreements (FTAs) such as the EU-Vietnam Free Trade Agreement (EVFTA) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), according to a report sent to the prime minister by the Ministry of Industry and Trade.

Thanks to these FTAs, Vietnam’s exports to the European Union (EU) and member states of the CPTPP have seen positive achievements despite the complicated Covid-19 situation, the ministry said in the report.

Data of the ministry showed that two-way trade between Vietnam and the EU reached US$55.4 billion in 2020, falling 1.8% from 2019. The country exported goods worth US$40.1 billion to the EU, while it imported US$15.3 billion, leading to a trade surplus of US$24.8 billion last year with the bloc.

Vietnam’s biggest importers among the European countries in 2020 were Belgium (US$2.3 billion), Germany (US$6.6 billion), the Netherlands (US$6.9 billion), France (US$3.3 billion) and Italy (US$3.1 billion).

The country’s key products for exports to the EU were footwear, plastics, rice, textiles and garments, and vegetables and fruits.

Meanwhile, two-way trade between Vietnam and member states of the CPTPP amounted to US$79 billion in 2020, increasing 1.9% year-on-year.

Vietnam exported goods worth US$38.7 billion to these countries and spent US$40.3 billion on imports, leading to a trade deficit of US$1.6 billion last year.

Particularly, the country’s export value to Mexico and Canada surged 11.8% and 12.1% year-on-year, respectively.

Vietnam’s key products for exports to member states of the CPTPP included seafood, footwear, textiles and garments, peppercorn, wood and wooden products, and machinery and equipment.

The EVFTA and CPTPP have also helped Vietnam attract more foreign direct investment (FDI).

According to the Ministry of Industry and Trade, FDI of the CPTPP members to Vietnam reached US$11.6 billion in 2020, soaring 23.4% compared with 2019. Meanwhile, EU investors poured US$1.4 billion into the country last year, falling 6.7% year-on-year.

However, data of the Vietnam Chamber of Commerce and Industry (VCCI) showed that only 29% of Vietnamese companies that export goods to CPTPP member states have enjoyed tariff incentives as regulated by the agreement.

Besides, only 38 of 63 cities and provinces in the country have import/export activities with the EU.

VCCI suggested that trade and investment potential from the EVFTA and CPTPP remains high and Vietnamese enterprises should try harder to take advantage of these FTAs.

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