Vietnam's goods exports to Germany increased sharply after 1 year of implementing the EU-Vietnam Free Trade Agreement (EVFTA).
According to Mr. Hoang Quang Phong - Vice President of the Vietnam Chamber of Commerce and Industry (VCCI) - said that, despite being a long-standing market of Vietnam, since the implementation of the European Free Trade Agreement (EU). -Vietnam (EVFTA), the potential for two-way trade between Vietnam and Germany is growing.
“In 2020, in terms of exports, Germany is the second largest market in the EU and the seventh largest market in the world for Vietnam. Regarding imports, Germany is the EU's 2nd largest source of goods and our 14th world. Vietnam and Germany have a complementary product structure mainly," said Mr. Hoang Quang Phong.
Based on the structure of commodity sources and climate characteristics, Vietnam has strengths in light industrial products, consumer products and agricultural and food products and has a high demand for many raw materials and machinery. manufacture. Meanwhile, Germany is a powerhouse of heavy industry, exporting a lot of fuel and machinery and also importing a lot of consumer goods, agricultural products and food. These commodities complement each other without competing, which is an important factor in commercial relations.
According to Ms. Nguyen Cam Trang - Deputy Director of the Import-Export Department (Ministry of Industry and Trade), after 1 year of implementing the EVFTA, it has also given Vietnamese businesses a lot of experience for the EU market in general and the German market in particular. .
“Many key export products of Vietnam have taken advantage of opportunities from the EVFTA in the past year to sharply increase exports to the German market such as: Machinery and equipment (up 83.6%); means of transport and spare parts (up 71.6%); iron and steel (up 53.2%); computers and electronics (up 34%); seafood (up 15.5%). In particular, with the main seafood products from the group of immediate tariff reductions... showing that businesses have been able to take advantage of the agreement's opportunities from the very first day," - Ms. Nguyen Cam Trang comment.
Many key products of Vietnam benefit.
Realizing that the potential for exporting Vietnamese goods to the German market is huge, VCCI Vice President Hoang Quang Phong said that businesses need to fully understand the commitments of Vietnam and Germany in the EVFTA. Along with that, both exporters and importers need to have a thorough understanding of the size, needs, tastes of the market and the import and export regulations of the two sides.
Dr. Pham Hung Tien - Deputy Director of the Vietnam FNF Institute - gives 3 principles that Vietnamese businesses need to pay attention to when they want to boost exports to the German market through the EVFTA: Exploiting opportunities from improving production capacity domestic export instead of just increasing export capacity; cooperate with small and medium enterprises instead of just looking for "eagles" and recognize EU standards instead of just improving product quality.
According to VCCI's assessment, Germany is a strict partner in both legal regulations and consumer requirements. Germany is also a highly competitive market, with strong domestic industries and strong foreign competitors. Therefore, in order to do business successfully with this market, Vietnamese enterprises must be equipped with complete and up-to-date knowledge and information about the market, and at the same time need to fully exploit the unique advantages of the EVFTA.
Germany is currently one of the leading important trade partners of Vietnam in the EU and in the world. Over the past decade, two-way trade has grown by more than 80 percent. With the EVFTA coming into effect, import and export activities between Vietnam and the EU's largest market are expected to have a positive breakthrough.
Vu Long