According to Vice General Director of the Department Nguyen Thao Hien stated that 2024 marks the 4th year since EVFTA came into effect. In recent years, the agreement has served as a lever to help Vietnam and the E.U. maintain growth momentum in bilateral trade cooperation, despite the negative impacts of the COVID-19 pandemic as well as geopolitical conflicts.
    |
 |
|
Participants at the forum |
In the first eight months of 2024 alone, bilateral trade between Vietnam and the E.U. reached nearly 45 billion USD, up 15.8% year-on-year. Vietnam's exports to the E.U. amounted to 34.1 billion USD, a 17.4% increase compared to the same period in 2023.
Hien said these figures reflect the economic recovery in the E.U. and the adaptability of Vietnamese businesses in seizing opportunities brought by the EVFTA, including positive contribution of Vietnam's logistics sector and its partners.
However, she noted that import-export activities between Vietnam and the E.U. are also facing numerous challenges due to the unpredictability of the market, the fragile recovery of consumer demand in the E.U., and the ongoing political and military conflicts in several regions showing no signs of easing.
Additionally, export markets, particularly the E.U., are increasingly demanding greening of the value chain including production and transportation of goods. In this context, to boost export efficiency, along with efforts made by manufacturing businesses, Vietnam's logistics sector needs to continue improving infrastructure and operational capacity, and minimizing costs to remain competitive.
Chandler So, CEO of GEODIS Vietnam, said that Vietnam's participation in many FTAs, such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the EVFTA has helped boost production growth for exports.
Trade wars and the COVID-19 pandemic have forced manufacturers to diversify their transportation networks, So said, adding that these factors have contributed to Vietnam's emergence as a leading manufacturing hub in ASEAN.
Carlos Zepeda, a senior maritime economist, said production growth and the related demand for raw materials for production have driven Vietnam's maritime trade over the past 20 years.
Regional value chain linkages, and low labour costs, have turned Vietnam into an export base for many multinational companies. This serves as the foundation for promoting the development of Vietnam's logistics sector to meet the demand for export cargo transportation, he said.
Regarding trade relations with the E.U., Zepeda said Vietnam is emerging as a major supplier of consumer goods and fashion to Europe. The Southeast Asian nation has also positioned itself as a key supplier of other value-added products, becoming the third-largest high-tech goods supplier of Europe after China and the U.S. It is forecasted that the volume of container trade between Vietnam and Europe could double by 2050.
Vietnam needs to make efforts to improve infrastructure by integrating large-scale ports with industrial zones and clusters to maximize efficiency and reduce logistics costs, he noted.
Tran Ngoc Quan, Vietnamese Trade Counselor in the E.U. and Belgium, stated that in addition to the E.U.'s Carbon Border Adjustment Mechanism (CBAM), Vietnamese export firms need to pay attention to the E.U.'s requirements for emissions control in maritime transport, as this could increase international logistics costs.
Vietnam is currently the E.U.'s 16th biggest trading partner, the 3rd largest exporter, and the 5th largest importer of Europe. The country primarily exports phones, electronic products, footwear, machinery, and textiles to the E.U.
Source: VNA