upcoming events

Oct 2020
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

Survey

1. What do you consider the largest Risk for your company?

2. What are the Risk Mitigation Strategies you apply?

Submit

Galleries

This event is open for all professionals interested or currently working in Starups in Hanoi, or supply chai professionals in Hanoi, or who are interested in looking for business collaboration for U.S. market through meeting with a delegation of Baylor University (U.S.), Executive Master Program.

CAREER OPPORTUNITIES

PROCUREMENT MANAGER (RETAIL FASHION) - AU CHAU FASHION & COSMETICS CO., LTD

Founded in 2009, Au Chau Fashion and Cosmetic Company (ACFC) - a division of Imex Pan Pacific (IPP) Group, is the seat of some of the world's premium and most admired fashion brands. ACFC is the leader in brand management and distribution company specializing in international brands in Vietnam, a driving force of retail and distribution networks and provides full-service retail management in the country. Some our brands are Nike, Tommy Hilfiger, Diesel, Tumi, Gap, Calvin Klein, Banana Republic, Mango....

PROCUREMENT MANAGER - ABBOTT

Abbott believes in the power of health. With better health, people and communities can live better and achieve more.
- We create new solutions - in diagnostics, medical devices, nutrition and branded generic pharmaceuticals - that help people around the world, in all stages of life, live their best lives through better health.

INTERNATIONAL SOURCING MANAGER - VIETNAM, THAILAND, MALAYSIA, INDONESIA, INDIA - NIMBUS 9

Our company is a rapidly growing company based in The US and Vietnam. We are evolving into an international sourcing business with a focus on Hygiene products. Our clients are mostly US focused and conglomerates.

EVFTA TARIFF INCENTIVES FOR VIETNAM VERY ATTRACTIVEl VCCI

2020-09-28 17:35:48

Share with friends

 

EVFTA TARIFF INCENTIVES FOR VIETNAM VERY ATTRACTIVEl VCCI

Figure 1: Vietnam's Textile & Apparel is giving a great momentum at their economy and at the life of people.

 

 

The EU's tariff incentives in EVFTA are the highest ever a partner has offered Vietnam at the time the deal comes into effect, says a VCCI director.

 

Nguyen Thu Trang, director of the Vietnam Chamber of Commerce and Industry's (VCCI) centre for WTO and economic integration, added: "EU tariff commitments to Vietnam under the EU-Vietnam Free Trade Agreement (EVFTA) are more attractive than those under the CPTPP."

 

"The EU is offering Vietnam a great opportunity," she told an EVFTA seminar Thursday.

 

Originally a 12-member agreement, the Trans-Pacific Partnership (TPP) was thrown into limbo when U.S. President Donald Trump withdrew his country from the deal in January 2017. The remaining 11 countries renegotiated parts of the TPP and in March 2018 signed the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

 

Trang said she chose the CPTPP for reference as most of the 11 partners in this agreement had signed with Vietnam another FTA. The level of commitment in these individual FTAs is lower than that of the CPTPP.

 

Under EVFTA, effective from August 1 this year, the EU eliminated 85.5 percent of tariff lines for Vietnam immediately after the agreement came into force, while CPTPP partners committed to abolish 78-95 percent of import taxes.

 

Trang said the EU incentives looked modest compared to the CPTPP, but that "it is not actually the case."

 

"The reason is many members of the CPTPP like Singapore have fulfilled commitments to erase many tariff lines for Vietnam under previous trade agreements within the ASEAN bloc so their number of removed tariffs under the CPTPP is high."

 

Under the roadmap, the EU will eliminate the remaining tariffs in 3-7 years. By 2027, almost all Vietnamese products exported to the EU would enjoy zero percent tax, except for a small group of "sensitive" goods. For CPTPP, the tax reduction roadmap would take 5-10 years.

 

In terms of each commodity, the EU has also created many advantages for Vietnam, with 100 percent elimination of tariff lines on vegetables and fruits, coffee and honey exports, for instance. Meanwhile, CPTPP partners need 3-5 years to eliminate tariffs on processed and canned vegetables and fruits, Mexico needs 5-10 years for coffee, and Japan needs seven years for honey.

 

For textiles and footwear, the EU abolished 42.5 percent of tariff lines when the agreement took effect, with the rest taking 3-7 years. "This figure may be a bit stricter if you look at Singapore's commitment to eliminate all taxes, and Australia, Canada or Chile with 80 percent or more under CPTPP. As explained above, the numbers do not reveal the entire picture," Trang said.

 

The EU is currently allowing Vietnam to enjoy a general system of preference (GSP), a kind of most-favored nation regime that reduces or exempts import duties on goods. Textiles, garments and footwear are products enjoying GSP with an average preferential tax rate of 3-4 percent.

 

Vietnam will still enjoy GSP in the first two years of EVFTA enforcement. Tariffs in the third year are in line with the EVFTA but in all cases would not be higher than the GSP levels applied by August 1, 2020.

 

By 2025, the value of Vietnam's rice exported to the EU is expected to grow 65 percent, textiles increase by 67 percent, garments rise by 81 percent, and leather and footwear by 99 percent. For pork, beverages and tobacco, the figures are expected to be lower, at 4-5 percent, respectively, according to the Ministry of Planning and Investment.