|Vietnam’s export to the EU is expected to rise (photo: VNA)
Bilateral trade between Vietnam and the EU grew strongly last year and in the first months of this year, even compared to the pre-pandemic period. The EVFTA has created new opportunities for businesses in Vietnam and the EU to penetrate each other’s market. In the first 10 months of 2022, bilateral trade totaled 52.5 billion USD including 40 billion USD for Vietnamese export.
Nguyen Thao Hien, Deputy Director of the European-American Market Department of the Ministry of Industry and Trade said exports to the two markets have been diversified. The EVFTA has increased the competitiveness of Vietnamese products and expanded the Vietnamese market in the EU.
According to Eurostat, Vietnam produced 1.8% of the EU’s total imports in the first 8 months of 2022. These are positive results and a favorable start for further Vietnam-EU economic and trade ties.
Vietnam’s exports to the EU market face several challenges which are forcing businesses to innovate and devise new strategies. Do Thi Thu Huong,
Deputy Director of the Import-Export Department of the Ministry of Industry and Trade, said: "Vietnam has had quite a lot of success since the free trade agreement was signed. The biggest barrier is the technical regulations of the import market. Businesses need together to join the global supply chain."
Businesses also need to have a long-term vision and business strategy for each product and each target market, diversify markets, and focus on products with competitive advantages. On the other hand, businesses should access new markets through supermarket chains and retail stores in different target countries in Europe.
Ms. Nguyen Thao Hien, Deputy Director of the European-American Market Department of the Ministry of Industry and Trade, said that in addition to strictly complying with EU import standards and regulations, Vietnamese businesses also need to pay attention to traceability and meeting the rules of origin.
They are advised to strengthen cooperation, link chains, and build concentrated raw material regions to improve productivity and product quality. Businesses should look for foreign investment partners to give them technology and capital as well as the experience of developed countries.