EVFTA Expected To Bring 800,000 People Out Of Poverty By 2030
The World Bank (WB) has predicted that Eu-Vietnam Free Trade Agreement (EVFTA) could help Vietnam’s GDP & Exports grow 2.4% and 12%, respectively, by 2030 and bring 100,000-800,000 people out of poverty. Also, proposed Vietnam conducts overall economic and institutional reform to comply with EVFTA’s conditions, Vietnam could claim greater benefits from it, reported by MoIT.
The EVFTA will help increase Vietnam’s export revenue to Europe by about 42.7% in 2025 and 44.37% in 2030 compared to a no-deal scenario. At the same time, the country’s imports from the EU are also expected to surge by about 33.06% and 36.7%, respectively. Experts also predicted that the EVFT A will contribute to hiking Vietnam’s GDP by 2.18-3.25% per year on average in the 2019-2023 period, 4.57-5.3?tween 2024 and 2028, and 7.07-7.72% in the period from 2029-2033.
Following Mr. Ousmane Dione – WB Country Director in Vietnam, it is possible for Vietnam to archive unprecedented benefits if Vietnam is determined to tighten the distance in deploying ability and legal appropriateness. However, he defined one of Vietnam’s obstacle is the number of Made-in-Vietnam products still reply on imported materials – 62% in electronics and 53% in automobiles.
On the other hand, he remarks the improvement of Vietnam in linking domestic suppliers and foreign enterprises that leads the global supply chain. The WB Country Director also believes that Vietnam will become a destination for EU and global investors because of EVFTA, however, the number of trade complaints will also increase. Therefore, he advised Vietnam to be well-prepared by launching a systematic, mechanism to deal with it. At the same, priority should be given to key currency earners post-COVID -19
Mr. Dione also said in order to optimize benefits from EVFTA, policies supporting economic recovery after Covid-19 need to prioritize main industries that account for the most exports of Vietnam to EU.
MoIT will partner with the Ministry of Science and Technology this year to supplement and amend the revised Law on Intellectual Property 2009 and review decrees relating to the EVFTA.
From 2021-2025, it will work with the Ministry of Finance to supplement and amend the revised Law on Insurance Business 2010.
In the near future, it will popularise the complaint settlement mechanism in the EVFTA and other FTAs to which Vietnam is a member.