Minister of Industry and Trade Tran Tuan Anh stated that the Free Trade Agreement between Vietnam and the European Union (EVFTA) and the Investment Protection Agreement (EVIPA) set out many institutions that force member countries to implement. In particular, the most important is the amendment and supplementation of the domestic legal system in accordance with commitments.
Avoid violating commitments
According to Minister Tran Tuan Anh, the two agreements with a wide range of coverage, including non-traditional fields, so the amendment of domestic laws does not stop at the system of laws related to the opening of commodity markets. , services that are also in the fields of public procurement, intellectual property, labor, environment … “The amendment of the law requires a lot of time, if not done in time, it is easy to fall into status of committed violations ”- said the Minister.
Over the past time, the National Assembly has proposed a roadmap to revise many important legal documents such as the Labor Code, the Intellectual Property Law, etc. as active steps to prepare for the implementation of EVFTA.
“Accepting international principles in bidding, though not easy, but if done well, can help us significantly improve the efficiency of public procurement. Extensive commitments on services and investment will also contribute to promoting reforms towards creating a more open business environment and increasing the attraction of foreign investment in a number of areas with potential for future development. towards the new supply chain formed when the agreement is put into effect ”- Minister Tran Tuan Anh assessed.
He also said that although the amendment of the law shows the great effort of the Government in preparing for the implementation of commitments in the new generation of free trade agreements (FTAs), it is still not enough. . “Vietnam has specific provisions on the minimum wage, working time, occupational safety and health, child labor, environmental protection … in accordance with international standards. But in fact, some businesses (DN) not strictly comply. At that time, it may lead to the risk that the whole manufacturing industry will not enjoy preferential import tax rates from the violations of a small number of enterprises ”- the Minister analyzed to show that the law enforcement from enterprises is very important.
Economic expert Pham Chi Lan assessed the new generation FTAs as the driving force for Vietnam to reform its institutions and put them into serious implementation. “Many resolutions and decrees have been passed by the National Assembly and the Government but need to be implemented more seriously. If we do not, we will fall into a state of commitment that cannot be fulfilled. This deprives the opportunities that Vietnam can get from the agreement by not fulfilling its commitments, there is no reason for our partners to give us incentives ”- Ms. Lan emphasized.
Expert Pham Chi Lan also commented on a number of issues that Vietnam needs to continue to improve, such as not transparent about taxes, fees, cumbersome investment and business procedures, but the law is not transparent and easy to change, making businesses difficult to predict … “The agreement was passed with a high percentage of votes but remember there is still a significant percentage of opposition votes and blank votes, indicating that there are concerns from the partner. The rate should not be increased through poor implementation of Vietnam, but by institutional and legal reforms, improving enforcement capacity to convince them, “the expert said.
Mango growers in the Mekong Delta hope to benefit from EVFTA. Photo: NGOC TRINH
Not benefited immediately
Assoc.Prof. Dr. Tran Hoang Ngan, Director of Ho Chi Minh City Development Research Institute, cited EU market data of 27 countries, a population of 450 million, annual GDP of about US $ 16,000 billion, showing the breadth and strength attractive to Vietnam in promoting export acceleration through this market.
In 2019, Vietnam exported to the EU market US $ 41.7 billion, on par with exports to China. With the immediate removal of 85.6% of tariff lines between Vietnam and the EU, the textile, footwear and leather industries … will have the advantage of reducing the cost of importing raw materials, which can grow every year by 20%. drag other industries such as finance – banking, tourism, air transport … to develop.
However, because the EU has a per capita income of US $ 36,000 per year, which is three times higher than China's per capita income of US $ 10,000, this market is very fastidious, requiring Vietnam's export goods to meet. standards of EU countries take advantage of EVFTA's opportunity.
“Right at this moment, ministries and branches can draft and implement appropriate legal documents, instructing businesses what advantages are from EVFTA. If the enterprise has a long-term investment plan in technology, large-scale production, product quality assurance, food hygiene and safety, origin and design, environmentally friendly products … then Consumers in the EU will accept our country's agricultural products ”- Mr. Tran Hoang Ngan recommends.
Dr. Bui Quang Tin (Banking University of Ho Chi Minh City) said that after our National Assembly passed EVFTA in the upcoming May meeting, the agreement will take effect within 1 month. However, it has to wait for a while for the National Assembly to continue passing the amended laws related to EVFTA, so Vietnamese enterprises have not been immediately benefited from the agreement.
Mr. Tin commented that in order to implement the agreements with EU partners, Vietnam had to amend many legal documents, especially documents on tax and trade … Specifically, with the 2005 Commercial Law, the Import and export legal documents are still strict and have not kept up with EVFTA regulations. After EVFTA takes effect at the earliest in July, 2020, businesses that want to import production materials from the EU while not changing relevant laws and regulations will not enjoy this advantage. In contrast, because the EU market is very difficult, businesses that want to export goods to the EU to enjoy the 0% tax rate will have to spend a long time to meet the requirements of product quality of this market.
“Enterprises have to try a lot, especially in the context that we have difficulty with other markets, the EU is a great hope. The situation of Covid-19 with economic impacts is an insightful lesson for enterprises to rise up and move towards other markets instead of dealing with risky and restrained markets in the backward ”- expert Pham Chi Lan summed up.
He Nicolas Audier, President of EuroCham:
Make sure EVFTA goes smoothly
The European Parliament on February 12 approved the EVFTA Agreement and the EVIPA Investment Protection Agreement, a historic moment of European-Vietnamese relations, opening a new chapter on increasing trade and investment between both sides. These agreements will allow European businesses to stay ahead of the socio-economic development trend in Vietnam, to have more opportunities to participate in European markets, products and services. Similarly, European companies can also penetrate deeper into Vietnam's thriving market.
This vote is the crystallization of nearly a decade of relentless efforts, but it is only the beginning. Right now, we need to ensure the smooth implementation of the EVFTA so that businesses and consumers in Vietnam and Europe can take advantage of every opportunity that this agreement offers. EuroCham will always accompany and continue to accelerate this process. We are committed to working with the Government of Vietnam, the Vietnam Chamber of Commerce and Industry and our partners to ensure the benefits of the agreement are achieved.g.
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