A forum on capitalizing on the Vietnam-EU Free Trade Agreement (EVFTA) and the evolving logistics industry to enhance Vietnam’s exports to the European Union (EU) was held by the European-American Market Department under the Ministry of Industry and Trade (MoIT) in Ho Chi Minh City on September 23. Nguyen Thao Hien, Vice General Director of the Department, noted that 2024 marks the fourth year since the EVFTA came into effect. In recent years, the agreement has played a key role in helping Vietnam and the EU maintain positive growth in bilateral trade, even amidst global challenges like the COVID-19 pandemic.
In the first eight months of 2024, bilateral trade between Vietnam and the EU reached nearly $45 billion, a 15.8% increase year-on-year. Vietnam’s exports to the EU grew by 17.4% to $34.1 billion compared to the same period in 2023. Hien highlighted that these figures reflect both the economic recovery in the EU and the agility of Vietnamese businesses in utilizing the EVFTA. The logistics sector, in particular, has contributed to this growth through improved efficiency and enhanced international partnerships.
Despite this success, challenges remain, including market unpredictability and the fragile recovery of consumer demand in the EU. Additionally, the EU market is increasingly focused on sustainable practices, requiring greener production and transportation throughout the value chain. To remain competitive, Vietnam’s logistics sector must continue to upgrade infrastructure, enhance operational capacity, and reduce costs. Chandler So, CEO of GEODIS Vietnam, pointed out that Vietnam’s involvement in various free trade agreements (FTAs), such as the EVFTA and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), has driven production growth and expanded export opportunities. Vietnam has emerged as a major manufacturing hub in ASEAN due to its diversified transportation networks and favorable trade conditions.
Carlos Zepeda, a senior maritime economist, emphasized that Vietnam’s growth in production and demand for raw materials has significantly boosted its maritime trade over the past two decades. Vietnam has become a leading exporter for multinational companies, and as a result, the logistics sector has evolved to meet the growing demand for export transportation. Zepeda added that Vietnam is establishing itself as a key supplier of consumer goods, fashion, and high-tech products to Europe. By 2050, the volume of container trade between Vietnam and Europe is expected to double, underlining the need for Vietnam to enhance its logistics infrastructure, particularly by integrating large-scale ports with industrial zones.
Tran Ngoc Quan, Vietnam’s Trade Counselor in the EU and Belgium, noted that Vietnamese exporters need to comply with the EU’s environmental regulations, such as the Carbon Border Adjustment Mechanism (CBAM) and emissions control requirements in maritime transport, which could increase logistics costs. Currently, Vietnam ranks as the EU’s 16th largest trading partner, the third-largest exporter, and the fifth-largest importer of goods to the region. Major exports include electronics, footwear, machinery, and textiles.
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