Thursday, October 29 2020

VietNamNews

Legal framework being improved to implement EVFTA

Update: July, 06/2020 - 09:47

 

Shrimp processed for export. Tax policies are being specified and customs procedures simplified to improve the legal framework to facilitate the European Union – Việt Nam Free Trade Agreement enforcement. — VNA/VNS Photo

HÀ NỘI — Tax policies are being specified while customs procedures simplified to improve the legal framework to facilitate the European Union – Việt Nam Free Trade Agreement (EVFTA) enforcement.

Deputy Director of the General Department of Customs Lưu Mạnh Tưởng said the department pledged to create the favourable conditions for firms in conducting customs procedures.

Tưởng said the customs watchdog was hastening administrative reforms and modernisation to improve the business climate and the national competitiveness of enterprises and the whole economy. The information system for customs management was also improved to adapt to the Industry 4.0.

EVFTA would give a push to the bilateral trade because of setbacks caused by the COVID-19 pandemic, increasing trend of protectionism and escalating trade wars, Tưởng said, adding that the trade deal was an opportunity for Việt Nam to speed up administrative reform, improve the investment climate and institutional reform.

Âu Anh Tuấn, director of the Customs Control and Supervision Department, said a plan for customs management to implement the EVFTA was being developed and would be soon submitted to the Ministry of Finance for approval.

Tuấn urged firms to study and comply with rules of origins to enjoy preferential tariffs provided by the trade deal.

Tuấn said that the Ministry of Industry and Trade issued Circular No 11/2020/TT-BCT about rules of origin in the EVFTA on June 16 which provided instructions for origin certification.

According to Hà Duy Tùng, director of the International Cooperation Department under the Ministry of Finance, said that the ministry was also drafting detailed plans to implement the EVFTA which would be submitted to the Government this month.

Tùng said that a decree about EVFTA’s preferential import-export tariffs was being developed together with a circular about rules of origin.

Ngô Chung Khánh, deputy director of the Ministry of Industry and Trade’s Multilateral Trade Policy Department, when the trade deal came in force, Việt Nam should pay attention to developing sectors like services, finance, automobile, processing and manufacturing, information technology, high technology and processed food which the EU had strength in and might invest in Việt Nam.

Khánh said that Vietnamese firms must focus on improving product quality and intellectual property protection to meet the EU’s requirements.

According to Nguyễn Hải Minh, vice chairman of Eurocham Việt Nam, said that European investors were paying attention to three major factors in Việt Nam, including improvement in infrastructure system, human resource quality and investment climate, especially customs administrative reforms to facilitate trade.

The trade deal is planned to take effect on August 1.

The General Department of Customs estimated that the EVFTA with the roadmap of tariffs cut would cause a decrease of import and export taxes contributed to State budget revenue by around VNĐ1.1 trillion (US$47.5 million) per year.

The decrease would gradually be widen, depending on the impacts of the trade deal on growth. However, domestic revenue contributed to the budget would increase because the trade deal would lift trade, investment and economic growth.

Analysis by the Ministry of Planning and Investment showed that the EVFTA would help increase Việt Nam’s export revenue to the EU by 20 per cent this year, 42.7 per cent in 2025 and 44.37 per cent in 2030. The trade deal would also help push up the country’s gross domestic product (GDP) by around 2.18-3.25 per cent in 2019-23 period, 4.57-5.3 per cent in 2024-28 and 7.07-7.72 per cent in 2029-33 period. — VNS

Comments:

Send Us Your Comments:

See also: