EU-Vietnam Free Trade Agreement (EVFTA) is a new generation FTA between Vietnam and 28 European Union member states. EVFTA and Trans-Pacific Partnership (TPP) are two of the largest new-generation free trade agreements ever negotiated by Viet Nam. EVFTA and EVIPA were ratified by the European Parliament on February 12, 2020, and approved by the Vietnamese National Assembly on June 8, 2020. After ratification, the EVFTA came into force on August 1, 2020
NATIONAL ECONOMICS UNIVERSITY FACULTY OF ECONOMICS RESEARCH PROPOSAL ASSESSING THE IMPACT OF EVFTA ON VIETNAM'S AGRICULTURAL PRODUCTS Hanoi, 2022 INTRODUCTION EU-Vietnam Free Trade Agreement (EVFTA) is a new generation FTA between Vietnam and 28 European Union member states EVFTA and Trans- Pacific Partnership (TPP) are two of the largest new-generation free trade agreements ever negotiated by Viet Nam EVFTA and EVIPA were ratified by the European Parliament on February 12, 2020, and approved by the Vietnamese National Assembly on June 8, 2020 After ratification, the EVFTA came into force on August 1, 2020 After one year of implementation, EVFTA has encouraged export promotion in many fields, including agricultural products It is forecasted that in 2022, items such as coffee, cashews, pepper, rice, and tea will continue to make a great contribution to the total export turnover of Vietnam's agriculture to the EU With 27 member countries, a population of about 516 million people, and GDP per person over $35,000 per year, the EU market needs to import a large number of goods, especially agricultural products (more than $160 billion a year) from all over the world EU is the third-largest export market for manufactured goods of Vietnam with a turnover of about 5.5 billion USD/year; However, Vietnamese agricultural products have only 4% of this market share and are imported from the EU The region alone uses more than 1% of the market share In 2021, Vietnam's fragrant rice exports to the EU reached 60 tons, being worth 41 million USD, up nearly 1% in volume, but up more than 20% in value compared to 2020 According to the European Statistics Agency (Eurostat), among the 10 major sources of external suppliers to the EU, Vietnam's rice exports to the EU achieved the strongest price increase, up 20.3%, reaching an average of 781 USD/ton In 2021, the export turnover of Vietnamese nuts to Europe reached about US$864 million, accounting for 24% of the country's total export value of US$3.6 billion Agricultural products such as coffee, cashews, vegetables, pepper, rice, and tea will continue to be major contributors to total agricultural exports to the EU and will grow strongly in 2022 In particular, according to the Vietnam Food Association (VFA), Vietnam's rice exports in 2022 to the EU market will reach a minimum of 60,000 tons The fruit sector is one of the capable products that Vietnam needs to focus on to exploit profits from EVFTA Fruit consumption is increasing in the EU, as people are getting used to eating it to protect and build up their strength Potential fruits for rapid growth in the EU market shortly include Fresh tamarind, jackfruit, litchi, plum, passion fruit, dragon fruit, guava, mango, mangosteen In addition, the EU is committed to eliminating tariffs on standard products when the agreement comes into force, especially for processed products that previously had a tax rate of 5-9% However, according to the attached commitments of the EVFTA, the EU's origin requirements are also very strict For goods to enjoy preferential tariffs, raw materials must meet TBT and SPS standards This is considered the biggest challenge for Vietnam because the production technology and product quality control are still low Thus, it can be seen that the EVFTA is both a great opportunity and a challenge for Vietnam's agricultural export sector, requiring drastic changes in the agricultural industry The research proposal "Evaluating the impact of EVFTA on Vietnamese agricultural products" will assess achievements and challenges as well as provide solutions for Vietnamese businesses to boost agricultural exports to the EU market PURPOSE AND SCOPE OF THE RESEARCH 2.1 Purpose - Identify and analyze the purpose and role of the EVFTA agreement for Vietnam's agricultural sector; - Identify opportunities and challenges for Vietnam's agricultural industry after EVFTA; - Evaluate achievements after one year of EVFTA coming into effect; - Assess advantages and disadvantages in the process of exporting agricultural products to the EU market; - Provide some orientations and solutions for Vietnam's agricultural industry to boost the export turnover of agricultural products to the EU 2.2 Scope - Time scope: From August 2020 to August 2021 Spatial scope: Viet Nam LITERATURE REVIEW Maliszewska et al (2019) said that the EVFTA Agreement will greatly impact Viet Nam, even surpassing the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) This will be an opportunity for Viet Nam to take advantage of accelerating economic growth, increasing export turnover, as well as eradicating poverty, and improving people’s living standards According to Do Thi Hoa Nha and the authors (2019), Vietnam’s export turnover to the EU has increased continuously in the past period and has a lot of potential for development due to factors such as diplomatic relations between Vietnam and the European Union remain quite stable and the structure of goods exchange between the two sides has little competition According to data from the General Department of Customs, the total export turnover of Viet Nam’s main agricultural products (including coffee, cashew nuts, rubber, vegetables, pepper, rice, and tea) to the EU market in the first 11 months of 2021 reached about 2.2 billion USD and increased by 10.1% over the same period in 2020 With this result, the EU is one of the largest export markets for agricultural products in our country, accounting for 13.7% of the total export turnover of main agricultural products Source: Calculated from the data of the General Department of Customs According to information from the WTO and Integration Center, the EVFTA has promoted exports in many fields, including agricultural products It is forecasted that in 2022, commodities such as coffee, cashews, pepper, rice, and tea will continue to make large contributions to Vietnam’s total export turnover to the EU Conclusion It can be seen that the EVFTA has opened up a lot of opportunities for Vietnam’s agricultural products industry to boost exports to the EU market After more than a year since the EVFTA took effect, Vietnam’s agricultural export to the EU have been changing as Vietnamese businesses actively promote the export of products eligible for EVFTA incentives, while the partner also prioritizes choosing a product from Vietnam because of the more competitive price METHODOLOGY Desk study synthesized based mainly on secondary data Information is collected from government reports, newspapers, research… Primary information: the collection methods include an expert interview, survey questions, discussions For reviews, comments, and recommendations, an in-depth interview method will be used frequently to get opinions from experts We will build an online survey on the Google Form According to Comfrey and Lee (1992), the number of survey votes is determined by intervals: 100 = bad, 200 = fair, 300 = good, 500 = very good, 1,000 or more = excellent The research team will create an online questionnaire and 300 survey votes will be collected Table 5.1: Expected survey questions for businesses General information Enterprise's perception of EVFTA Business activities Have known and studied deeply Export I know but partially understand Import Ever heard of Type of business Do not know Limited liability company- LLC Enterprise information channels about EVFTA State-owned enterprise- SOE Through information channels from specialized agencies Private enterprise Through radio and the internet Joint-stock company- JSC Through business association Agricultural products of production activities Enterprise's implementation of food labeling regulations Export of agricultural products (fruits, vegetables) The export sticker is similar to the sticker in the market Export of seafood Private label has the difference between export goods and domestic goods Import of agricultural products (fruits, vegetables) Stickers ensure standards according to the EVFTA Agreement Current capital of the business Food safety certification when exporting goods after the EU? < billion VND IFS certification? 5>10 billion VND SQF certification? 10-50 Billion VND FSSC 22000 certified? 50 billion VND Global Gap Good Agricultural Practice Certification? PLANNED STRUCTURE Chapter I: Synthesizing several policy orientations for the development of agriculture and agricultural products of Vietnam 1.1 Overview of trade policies on sustainable agricultural products 1.2 Sustainable agricultural products in the provisions of EVFTA Chapter II: Evaluating results and limitations in agricultural products development in the context of Vietnam’s participation in EVFTA 2.1 Actual situation of implementing EVFTA agreement on agricultural products in Vietnam 2.2 Difficulties and challenges when implementing EVFTA commitments on sustainable agricultural products Chapter III: Proposing orientations and solutions for agricultural products to meet the requirements of new generation FTAs such as EVFTA 3.1 Some policy recommendations from the perspective of the state 3.2 Some policy recommendations from the perspective of businesses WORK PLAN No Activity Literature review and data collection Conduct of the study Jan/2022 Feb/202 Mar/202 Apr/202 In-depth interview with experts and stakeholders The first draft Consultation meeting and review of the Report The Final Report Translation REFERENCES Online Customs Newspaper (2021) Agricultural product race to conquer the “difficult” market Visit at: https://haiquanonline.com.vn/nong-san-dua-nhau-chinh-phuc-thitruong-kho-tinh-151721.html The WTO and Integration Center (2022) The EU market opens up many opportunities for Vietnam’s agricultural products Visit at: https://trungtamwto.vn/chuyen-de/20121-thi-truong-eu-mo-ra-nhieu-cohoi-cho-nong-san-viet Maryla Maliszewska, Maria Pereira, Israel Osorio-Rodarte, Olekseyuk, Zoryana (2019) Economics and distributional impacts of the EVFTA and CPTPP in Vietnam USA: World Bank Do Thi Hoa Nha, Nguyen Thi Oanh, Ngo Hoai Thu (2019) Analyzing the export situation of Vietnam’s commodity groups to the EU market Journal of Science and Technology, Thai Nguyen University, No 03 T.196 ... Vietnamese National Assembly on June 8, 2020 After ratification, the EVFTA came into force on August 1, 2020 After one year of implementation, EVFTA has encouraged export promotion in many fields,... recommendations from the perspective of the state 3.2 Some policy recommendations from the perspective of businesses WORK PLAN No Activity Literature review and data collection Conduct of the study... as coffee, cashews, pepper, rice, and tea will continue to make large contributions to Vietnam’s total export turnover to the EU Conclusion It can be seen that the EVFTA has opened up a lot of