The claims were made at a joint Eurocham, Ministry of Foreign Affairs and conference held on October 26 in Ho Chi Minh City.
Most of Vietnam’s key export commodities are in the top 15 worldwide export such as black pepper, coffee and seafood. However, according to the EuroCham's Food and Agri-Business Committee, Vietnam has a competitive edge based on cheap prices, not quality. When the FTA between Vietnam and the EU takes effect, Vietnam will have to comply with stricter EU regulations on quality in order to increase exports to the bloc.
The implementation of FTA with the EU will create better conditions for European businesses operating in Vietnam in agricultural products processing and other industries. These activities will help to spread technology and create added value.
If Vietnam want to enjoy 0% tax, it have to comply with rules of origin. To succeed, Vietnam will have to develop support industries and increase localisation.
"Vietnamese companies have to use materials produced in Vietnam or other countries that have free trade agreements with EU, for example South Korea", said Dr. Nguyen Xuan Thanh, Director, Fulbright Economics Teaching Programme.
Vietnamese agricultural products are becoming more well-known in Europe. However, when the EU FTA takes effect, 39 Vietnamese products will benefit from Geographical Indication protection in European markets. This protection will create better conditions for Vietnamese products to get consumer confidence in the EU.
