Exports of ceramics from vietnam to eu in the context of the evfta agreement

Vietnam’s ceramic industry has always had a wellknown reputation in the global market. However, due to difficulties in tariff barriers, as well as strict import regulations and the strong competition between the countries in the same area, the exporting of ceramic products has been hampered over the years. Fortunately, since 2020, the Vietnamese ceramic exportation industry has developed greatly in accordance with the signing of the new EVFTA between Vietnam and the EU. Therefore, in this research paper, our group of authors would like to examine Vietnam’s reality of exporting ceramics to the EU under the new EVFTA, how the new EVFTA has helped to lower the barriers for ceramic exportations, as well as the current opportunities, threats and proposals for improvements in the future. Keywords: export, ceramic, EU–Vietnam

Exports of ceramics from vietnam to eu in the context of the evfta agreement Vũ Huyền Phương Giảng viên viện Kinh tế Kinh doanh quốc tế Trường Đại học Ngoại thương, Hà Nội, Việt Nam Abstract Vietnam’s ceramic industry has always had a well-known reputation in the global market However, due to difficulties in tariff barriers, as well as strict import regulations and the strong competition between the countries in the same area, the exporting of ceramic products has been hampered over the years Fortunately, since 2020, the Vietnamese ceramic exportation industry has developed greatly in accordance with the signing of the new EVFTA between Vietnam and the EU Therefore, in this research paper, our group of authors would like to examine Vietnam’s reality of exporting ceramics to the EU under the new EVFTA, how the new EVFTA has helped to lower the barriers for ceramic exportations, as well as the current opportunities, threats and proposals for improvements in the future Keywords: export, ceramic, EU–Vietnam Free Trade Agreement, EVFTA Literature review Since the EVFTA Agreement was signed in 2020, many studies have been carried out about export activities of different types of goods across Vietnam under the new context However, according to the group of author's research, there has not been any study on the export of ceramics of Vietnam in particular under the current context Some studies related to ceramic exportation in Vietnam in the period before the EVFTA agreement, as well as studies on the handicrafts goods in general, have helped the group to create a premise for references, application, and improvements for this new topic Before the agreement was signed, domestic studies had focused on market analysis and in-depth understanding of solutions to boost ceramic exports to the European market in the period from 2000 to 2015 A study conducted by author Nguyen Ngoc Tuan from the University of Economics Ho Chi Minh City “Some measures to promote the export of fine art ceramics of Dong Nai province to the EU market by 2015” (2007 ) applied economic theories to analyze the EU market and the fine art ceramic industry of Dong Nai province, thereby proposing solutions to overcome challenges from this market Similarly, the study on "Solutions to improve the efficiency of exporting ceramic products to the European market of Tropicdane Vietnam in the period 2006-2010" (2005) by Tran Thi Ha Minh from the University of Economics Ho Chi Minh City also analyzed the European market and the situation of Tropicdane in order to focus on proposing marketing solutions for ceramic export In addition, the study "Vietnam's fine ceramic exports to the Japanese market, the current situation and development solutions" (2006) by author Pham Thi Kim Thuy and the study "Building a strategy for the development of fine art ceramic export Vietnamese to the US market by 2015" by Thai Ngoc Huong from the University of Economics Ho Chi Minh City, although focusing on the Japanese and US markets, have improved the two above studies’s lack of an overview of Vietnam's ceramic export industry Regarding the group's topic, foreign studies mainly focus on the general handicraft export market and have more updated information relevant to the matter The thesis "Expansion of the Vietnamese handicraft industry: From local to global" (2008) by author Rachael A.Szydlowski from Ohio University provided qualitative information on two craft villages and three handicraft export companies, thereby showing the current situation, potential as well as the expansion direction of these goods to the world Similarly, the study "Contemporary Issues in Global Market: Analysis on Handicraft Industry in Vietnam" (2014) of the author group Poh-Chuin Teo, Johan Lim Kii Geat, Theresa C.F Ho and Choo Wei Ting from Abdul Rahman University College use economic models to assess the competitiveness of this market, thereby aiming to direct improvements for the quality of handicraft goods Most notably is the report "Sustainable Impact Assessment EU-Vietnam FTA" (2020) by the group of authors Paul Baker, David Vanzetti & Pham Thi Lan Huong from European Trade Policy and Investment Support Project, in which mentioned the export patterns of handicrafts in the context of the EVFTA agreement, although the information on ceramic products was still limited Based on previous research results, together with an in-depth study of the current context of Vietnam's ceramics export industry, the authors hope to assess the specific situation more relevantly, thereby making a discussion about the opportunities and challenges of the industry as well as proposing solutions for improvements Export of ceramics from Vietnam to EU in the context of the EVFTA agreement 2.1 Overview of the EVFTA FTAs refer to trade preferences by eliminating tariffs and trade barriers on trade in goods or services between countries that have signed free trade agreements Initially, the focus was on trade liberalization or tariff reduction in commodity trade, but since the launch of the WTO system, the scope of agreements such as services, investment liberalization, intellectual property rights, government procurement, and trade relief systems has been gradually expanding The EU–Vietnam Free Trade Agreement (EVFTA) is a new generation FTA signed between Vietnam and 27 European Union member states The EVFTA is divided into two agreements, one is the Trade Agreement (EVFTA), and the other is the Investment Protection Agreement (EVIPA) Negotiations for the two countries' FTAs began in 2012 and paid off after about nine years of effort The EVFTA itself was concluded in 2015, but the signature was delayed until 2020 It was adopted by the Council Decision of the EU on March 30 and officially came into force in Vietnam on August The objectives of this Agreement are to liberalize and facilitate trade and investment between the Parties in accordance with the provisions of the EVFTA 2.2 The main content of the EVFTA EVFTA is a new-generation FTA, with a wide range and high degree of commitments The Agreement consists of 17 Chapters, Protocols and some understandings The main contents are as follows: Trade in Goods Including general provisions (called written commitments); and specific tariff schedules (called market access commitments) Trade and investment in services The EU's benefits to Vietnamese investors are higher than those under World Trade Organization (WTO) agreements, guaranteeing the highest level of autonomy among the EU's recent FTAs Vietnam's degree of autonomy to the EU is higher than that under the WTO, and it is the highest level that Vietnam applies to other partners in existing trade agreements (e.g CPTPP), focusing mainly on areas such as business services, the environment, banks, and insurance Government Procurement The EVFTA Agreement includes the principles of Government procurement (public tendering) that are equivalent to the provisions of The WTO Government Procurement Agreement (GPA) Intellectual property rights Agreed to provide a high level of protection for copyright, patent, etc State-owned Enterprises and Subsidies Regarding state-owned enterprises (SOEs): The two Parties agree on the principles for SOEs; These principles, together with those on subsidies, aim to ensure an environment of fair competition between SOEs and private enterprises when SOEs engage in commercial activities For domestic subsidies: There will be transparency rules and consultation procedures Labour, Environment and Sustainable Development EVFTA includes agreements that apply the basic rules and protocols of the International Labor Organization (ILO); deregulate not to attract trade and investment; not to undermine the effectiveness of domestic labor and environmental laws; and agreements on climate change and environmental protection, sustainable management of biodiversity, and greater transparency and accountability Dispute Settlement Mechanism EVFTA envisages a flexible mechanism: a mediation mechanism, to deal with problems related to measures which have negative impacts on bilateral trade and investment in order to settle disputes that may arise between Vietnam and the EU in the interpretation and implementation of the commitments in the Agreement; Immediately after the entry into force of the FTA, Vietnam decided to exempt about 65% of tariffs on EU products and gradually apply tariff-free for the rest over 10 years Immediately after its entry into force, the EU decided to exempt about 71% of tariffs on Vietnamese products and gradually apply tariff-free for the rest for seven years For Vietnam, the EU is the second largest export market after the United States Vietnam is also an important partner in expanding the ASEAN market 2.3 The commitment between Vietnam and the EU concerning ceramics exportation 2.3.1 About Trade in Goods The majority of ceramics will benefit from the tax-free regime from the entry in force of the EVFTA This is valid for bricks, pavings or roofing tiles, ceramics used in laboratory or ceramic decorations such as statuettes or porcelains, also kitchenware, tableware or indoor furniture such as sinks or baths These will be tax-free within years from the entry in force of the EVFTA for the European custom; for Vietnamese customs, all the products mentioned above will be tax-free in years 2.3.2 About Rules of Origin Rules of origin are standards required to identify a product's national source or its ‘‘economic nationality’’ The EVFTA trade agreement stipulates strict requirements on the origin of products Under the EVFTA, if European and Vietnamese goods meet the criteria for ‘‘originating products’’, they may be eligible for a decrease in customs taxes According to the EVFTA, goods can be regarded as ‘‘originating products’’ when being in one of the following cases: 1/ Wholly obtained products: Includes the products which were naturally formed in the territory of Vietnam or any EU member country 2/ Materials have undergone sufficient working or processing: Includes the products produced in Vietnam or EU with incorporating materials which were not wholly obtained from Vietnam or EU, meet the criteria in Annex II, Protocol of the EVFTA - Certificate of Origin: The EVFTA stipulates two different types of origin certification, including Self-certification and issuance of a Certificate of Origin: For self-certification, exporters issue Certificates of Origin of their goods themself Specifically, for goods exported from Vietnam, if the total value of the consignment doesn’t exceed 6,000 euros, Vietnamese exporters can issue self-certification If the total value doesn’t exceed 6,000 euros, they have to apply its traditional mechanism Otherwise, competent authorities of the exporting country issue a Certificate of Origin for the goods based on the documents provided by the exporter Exporters based in the EU should gather the data allowed by Protocol of the EVFTA in order to obtain a certificate of origin Vietnamese law outlines conditions that, while comparable to those described above, must be met by anybody attempting to export goods from Vietnam to the EU The situation of exporting ceramics from Vietnam to the EU in the context of the EVFTA agreement 3.1 Overview of Vietnamese ceramics exportation Ceramic production is one of the traditional industries in Vietnam with more than 1,000 years of history, and the country's ceramics are known for their unique designs and high-quality materials Vietnam's ceramics industry is mainly concentrated in the northern region of the country, particularly in the provinces of Ha Noi, Bac Ninh, and Thai Binh The ceramics sector in Vietnam has been expanding rapidly in recent years, with the government's support and initiatives In recent years, Vietnamese ceramic products have expanded export markets to foreign countries and received much support from local people The industry has experienced significant growth over the years, with exports increasing from $300 million in 2010 to $460 million in 2018 Vietnam is the 9th largest export market of construction ceramics in the global market in the period 2016-2020, with an average growth rate of 8.2% per year with the proportion of exports expanded Table 1: Groups of Vietnam’s ceramic products exported to the EU in 2020 Product code Product label Proportio n (%) 6904 Ceramic building bricks, flooring blocks, support or filler tiles and the like (excluding those of siliceous fossil meals or similar siliceous earths, refractory bricks of heading 6902, and flags and pavings, hearth and wall tiles of heading 6907 and 6908) 0.26 6901 Bricks, blocks, tiles and other ceramic goods of siliceous fossil meals, e.g kieselguhr, tripolite or diatomite, or of similar siliceous earths 0.02 6903 Retorts, crucibles, mufflers, nozzles, plugs, supports, cupels, tubes, pipes, sheaths, rods and other refractory ceramic goods (excluding those of siliceous fossil meals or of similar siliceous earths, and refractory bricks, blocks, tiles and similar refractory ceramic constructional goods) 1.97 6905 Roofing tiles, chimney pots, cowls, chimney liners, architectural ornaments and other ceramic constructional goods (excluding of siliceous fossil meals or similar siliceous earths, refractory ceramic constructional components, pipes and other components for drainage and similar purposes) 0.04 6907 Unglazed ceramic flags and paving, hearth or wall tiles; unglazed ceramic mosaic cubes and the like, whether or not on a backing (excluding of siliceous fossil meals or similar siliceous earths, refractory ceramic goods, tiles specially adapted as table mats, ornamental articles and tiles specifically manufactured for stoves) 6.78 6909 Ceramic wares for laboratory, chemical or other technical uses; ceramic troughs, tubs and similar receptacles used in agriculture; ceramic pots, jars and similar articles used for the conveyance or packing of goods (excluding millstones, polishing stones, grindstones and the like of heading 6804; refractory ceramic goods; household articles; containers for shops; electrical devices, insulators and other insulating fittings) 0.06 6911 Tableware, kitchenware, other household articles and toilet articles, of porcelain or china (excluding baths, bidets, sinks and similar sanitary fixtures, statuettes and other ornamental articles, pots, jars, carboys and similar receptacles for the conveyance or packing of goods, and coffee grinders and spice mills with receptacles made of ceramics and working parts of metal) 2.48 6912 Tableware, kitchenware, other household articles and toilet articles, of ceramics other than porcelain or china (excluding baths, bidets, sinks and similar sanitary fixtures, statuettes and other ornamental articles, pots, jars, carboys and similar receptacles for the 2.23 conveyance or packing of goods, and coffee grinders and spice mills with receptacles made of ceramics and working parts of metal) 6914 Ceramic articles, n.e.s 46.14 6906 Ceramic pipes, conduits, guttering and pipe fittings (excluding of siliceous fossil meals or similar siliceous earths, refractory ceramic goods, chimney liners, pipes specifically manufactured for laboratories, insulating tubing and fittings and other piping for electrotechnical purposes) 0.00 6902 Refractory bricks, blocks, tiles and similar refractory ceramic constructional goods (excluding those of siliceous fossil meals or similar siliceous earths) 0.07 6910 Ceramic sinks, washbasins, wash basin pedestals, baths, bidets, water closet pans, flushing cisterns, urinals and similar sanitary fixtures (excluding soap dishes, sponge holders, tooth-brush holders, towel hooks and toilet paper holders) 7.86 6913 Statuettes and other ornamental ceramic articles, n.e.s 31.84 Source: ITC Trademap ITC Trademap states that there are 14 codes of ceramics products, and 6914- ceramic articles account for the largest of the total ceramic products that Vietnam exported to the EU, with 46.14% in 2020 Ceramic articles were exported to the EU in large quantities from 2003 to 2008, then declined sharply and stayed stable at about $35 million in the 2012-2018 period In recent years, the demand for ceramic articles tends to increase; especially in 2021, it rose to $64.36 million which was a significant number Figure 2: List of importing markets from Europe for 6914 - Ceramic articles exported by Vietnam Source: ITC Trademap Figure 3: List of importing markets from Europe for 69 - Ceramic products exported by Vietnam Source: ITC Trademap According to ITC Trademap, in the 2001-2021 period, Germany, the United Kingdom, France, the Netherlands, and Italy were the EU countries that imported the most ceramic products from Vietnam Germany was the country with the biggest total amount of importing Vietnam’s ceramic products from 2001 to 2021, however, the demand dropped by nearly half from 2014 Meanwhile, the United Kingdom’s demand for importing ceramic has increased rapidly from 2012 to recent years Of the countries above, the Netherlands, France, and Italy stayed quite stable in the amount of imported ceramic from Vietnam for the last years 3.2 The EVFTA agreement and exporting ceramics from Vietnam to EU 3.2.1 Vietnam’s ceramics exportation before the EVFTA Figure 4: Vietnam’s Ceramic products exports to EU over the years Source: ITC Trademap; UN Comtrade In the early 2000s, Vietnam's ceramic exports to the EU were relatively low, with an export value of about $80,000,000 in 2001 One of the main challenges that Vietnamese ceramic exporters faced during this period was the high tariff rates imposed by the EU Looking at the figure, in 2008, Vietnam's ceramic exports to the EU started to increase, reaching more than $130,000,000 in export value Unfortunately, this amount dramatically fell to $95,000,000 in 2009 before fluctuating gradually below the amount of $100,000,000 over a decade From 2010 to 2019, the value of ceramic export varied between $85,000,000 and $95,000,000 There was no significant change in the export value of ceramic during this period Throughout this time, Vietnamese ceramic exporters faced increasing competition from other countries, particularly China, which had a larger and more established ceramic industry China was a major competitor in the EU market, as it had a large ceramic industry and was able to produce and export ceramics at lower prices than Vietnam Other countries, such as Italy and Spain, were also major players in the EU ceramic market, and they had a reputation for producing high-end and luxury ceramic products Figure 5: List of importing markets from EU for 69 - Ceramic products exported by China Source: ITC Trademap One of the main challenges faced by Vietnamese ceramic exporters mentioned above was the high tariff rates imposed by the EU The EU had a Common External Tariff (CET) in place, which imposed tariffs on imported goods from non-EU countries These tariffs varied depending on the type of product, but they could be as high for ceramic products This made it difficult for Vietnamese ceramic exporters to compete with other countries that had lower tariff rates, such as China Another challenge was the strict regulations and standards imposed by the EU on imported ceramic products The EU has strict regulations on product safety and quality, which are designed to protect consumers and the environment These regulations include requirements for labeling, packaging, and testing of ceramic products The EU also has regulations on the use of chemicals and hazardous substances, such as lead and cadmium, in ceramic products Vietnamese ceramic exporters had to ensure that their products met these regulations and standards to be able to export to the EU To address these challenges, Vietnamese ceramic exporters not only tried to negotiate with EU buyers to reduce the prices of their products but also worked to improve the quality and safety of their products They looked for other markets outside the EU, such as the United States and Japan, where the tariff rates were lower Some exporters also tried to differentiate their products by focusing on unique designs and high-quality materials They invested in new technology and equipment to improve the production process and reduce the use of hazardous substances as well as hired experts to help them comply with the EU's regulations and standards 3.2.2 Exporting ceramics from Vietnam to EU under EVFTA The EVFTA is expected to bring positive impacts in numerous fields of Vietnam, according to the Ministry of Industry and Trade Nearly 100% of Vietnam's exports to the EU will be eliminated only after a little time frame This is currently the highest level of commitment a partner has for Vietnam in any negotiated free trade agreement, which benefit is especially significant given that the EU is currently Vietnam's most significant partner and one of its two main export destinations Figure 6: Vietnam’s ceramics exportation to EU and the world Source: ITC Trade Map; UN Comtrade Seizing opportunities from the EVFTA agreement, ceramic exports to the EU have been increasing significantly Trade Map data shows that when the EVFTU came into effect in 2020, Vietnam’s ceramic exports to the EU only went up by US$7 million over the previous year to reach US$105 million Nevertheless, one-fifth of Vietnam's total exports of ceramics went to the European Union in that year Surprisingly, in the following year, the revenue of ceramic products exported to the European region jumped by 20%, reaching US$126,4 million This figure continued to rise steadily to US$147.9 million in 2022, resulting in a 17% increase in revenue This trend is considered to be the most consistent increase in Vietnam's export revenue to the EU region in the last decade Table 7: Vietnam ceramic exports to Europe market in 2019 - 2020 Market Europe Aggregation Exported values in 2019 2020 (thousand USD) Market shares in 2019 - 2020 (%) 231,535 100 United Kingdom 68,686 29,66 Germany 34,732 15,00 Netherlands 32,988 14,25 France 27,748 11,98 Italy 18,434 7,96 Source: ITC Trade Map Table displays the top European countries that imported the most Vietnamese ceramic products in 2019 - 2020 It is evident that the United Kingdom was by far the most prominent market in Europe, with a 29.66% market share, which was almost double that of Germany’s counterpart The Netherlands maintained a competitive figure with Germany’s market share at 14,25%, followed by France and Italy with 11,98% and 7,96% respectively.Conclusion can be drawn that even after the EVFTA went into effect, the order of Europe's top import markets remained the same 3.3 Evaluation of Vietnamese ceramics exportation to EU over the years In general, Vietnam's exports of ceramic products have greatly benefited from the EVFTA Due to the new tax-free barriers, Vietnam's exportation to the EU has seen a high increase and the chance to expand to further markets, despite challenges and threats brought on by the Covid-19 pandemic as well as the regression of the world’s economy Exporting ceramics from Vietnam to the EU was a difficult task prior to the EVFTA taking effect in 2020 for a number of reasons As was already mentioned, the high tariff rates imposed by the EU on ceramic goods could reach 25% Due to this, Vietnamese exporters of ceramic products found it challenging to compete with nations like China, Italy, or Spain that had lower tariff rates Vietnam will have a better chance of competing with these nations and expanding its market share with the new tax-free policies in place during the next six years However, since 2023, inflation in EU markets has increased, affecting the demand for handicrafts and decorative products in these markets, which held the largest portions of Vietnam’s ceramic exportation According to the General Department of Vietnam Customs, in February 2023, Vietnam's export of fine art porcelain to the EU market reached 4.05 million USD, down 14.9% compared to January 2023 and down 5.7% compared to February 2023 In the first two months of 2023, the export of fine art porcelain to the EU reached 8.81 million USD, down 44.1% over the same period in 2022 This situation signals the importance of the Vietnamese ceramic market’s ability to adapt to such political and economic context, as well as striving to meet up with the current strict import regulations by the EU Discussions & Proposals 4.1 Opportunities and threats of the EVFTA to ceramics export from Vietnam to the EU 4.1.1 Opportunities: According to Ms Ha Thi Vinh - Director of Quang Vinh Ceramics Co., Ltd., Vietnam's signing of the EVFTA Agreement has created very good opportunities for export activities in general, and handicrafts and ceramics in particular Vietnam's participation in the signing of the EVFTA has helped craft villages, businesses, households and cooperatives have more opportunities to diversify and expand export markets and increase their products’ competitiveness when accessing the EU market Above all, the EU market imposes lower tariff barriers on Vietnamese ceramics than those of other countries like China This is a positive sign that the opportunity for Vietnam's ceramic export market share is expanding in this market To be more specific, on December 12 2019, the European Commission issued new penalties on ceramics from China, imposing a 36% tax rate imposed on Chinese exporters of tableware and kitchenware, who violates EU Anti-Dumping Law; while the import tax rate for Vietnamese enterprises at that time was only from 3.5 - 6% depending on different product groups and reduced to 0% from August 2020 when the EVFTA took effect On the other hand, traditional competitors of Vietnamese handicrafts including China, India and Indonesia are gradually losing their inherent market share, due to the increasing cost of labor in these countries, and long delivery time due to insufficient labor for production For those above reasons, it is clear that the EVFTA and other FTAs have opened numerous opportunities for the handicraft industry of Vietnam 4.1.2 Threats: Although the export turnover of ceramics of Vietnam has increased significantly in recent years, it still accounts for a small proportion compared to the great capacity of the industry, mainly due to the current production situation – Exports are still limited, making Vietnam's competitiveness still low compared to its competitors and not yet meeting the higher requirements of the export market Vietnamese ceramics are currently competing with products of the same type produced by major competitors, such as China, India, Thailand, Indonesia, etc Like other products, exported ceramics also face a number of technical barriers and product quality standards For example, products in contact with food such as bowls, plates, etc must meet strict requirements on heavy metal content, lead content, etc in each product Notably, each country has its own criteria forcing manufacturers to meet that criterion However, the cost for product quality verification is relatively high, about 400-500 USD/parameter Some inexperienced businesses also face many difficulties in the export process, even being returned goods On the other hand, the problem of planning mines to exploit raw materials as well as poor mining techniques, meanwhile, mining with different geological strata leads to the disturbance of the unified source of raw materials, which affects the overall quality of the raw materials Unprofessional sources of raw materials makes it difficult for manufacturers 4.2 Proposals 4.2.1 For the government: - Solving problems related to raw materials Currently, the problem of stable raw materials for the ceramic industry is still a very difficult problem, so ceramic manufacturers need to find stable raw material suppliers with diversified processing capacity The difficulties in finding a stable raw material are causing businesses to consider importing raw materials from other countries This is considered by many experts to be quite wasteful In addition to imports, buying floating materials with unstable quality also poses risks to businesses For this reason, the Government and functional agencies need to promote programs to connect and support businesses and handicraft production establishments to find raw materials At the same time, according to Mr Nguyen Thanh Hai - Deputy Director of Hanoi Department of Industry and Trade, in order to support businesses to find a stable source of raw materials to meet export demand, it is necessary to actively advise and propose to all levels related to support and preferential policies, especially prioritizing the creation of raw material areas, exploitation and processing of raw materials The Department also proposes to support provinces and cities with specific mechanisms to act as raw material production centers to encourage localities to develop and provide stable input materials for the ceramic industry - Support to promote trade promotion According to the Ministry of Industry and Trade, with the strong commitment to open the market, the EVFTA will create a big boost for Vietnam's export growth, helping to diversify export markets and products Signing the EVFTA also means that the EU-Vietnam Investment Protection Agreement (EVIPA) will help to create a more open and transparent market This also means that European businesses will increase investment in Vietnam, creating favorable conditions for businesses Vietnam has access to many sources of imported goods and materials as well as high-quality machinery, equipment, technology and techniques from the EU with stable and good quality at reasonable prices, thereby improving productivity and improve the quality of its exported products This is an important motivation for ministries, localities and the Vietnamese business community to promote trade promotion activities for products exported to the EU - Create a favorable macro environment for export It is important to develop, improve, and supplement economic and trade procedures and policies consistently reviewing the system of legal papers, as well as current instruments and policies, to identify content that is in conflict with international laws and FTA agreements, and then changing, completing, and enacting new legal documents as necessary Strengthen the system of economic, labor, administrative courts, and arbitration institutions as well as the industry, municipalities, and commercial legal institutions fostering a welcoming, transparent, and open business atmosphere Actively defending the legitimate interests of the Vietnamese government, businesses, and consumers in disputes involving international trade and investment Building a modern Vietnamese market economy institution, which ensures systematic, open, transparent, and stable as well as provides favorable conditions for export and import activities Promoting the export of deep processed goods and encourage the import of modern machinery 4.2.2 : For enterprises: In addition to support from the government and ministries, businesses, cooperatives and craft villages themselves also need to self-assess and improve their production and quality control processes to ensure the production and export of high quality and competitive ceramics in the EU and international markets - Actively research the market According to the Trade Promotion Agency, the EU is a common market block, but each member market has different characteristics, needs, import regulations and consumer preferences In the context that Vietnamese enterprises are mainly small and medium-sized, the production scale is still limited, the competitiveness of products is still a gap that needs to be improved, so it is advisable to have an appropriate market approach Therefore, in order to further promote the export of fine art ceramics to the EU, businesses first need to learn about the needs and tastes of this market The EU ceramic kitchenware and foodstuffs market is very well segmented with low-, mid-range and high-end market segments with various consumer dynamics Geographically, many EU markets are saturated with ceramic kitchenware and tableware, such as Germany, France, the Netherlands and Italy Markets with more opportunities include Poland and the Baltic countries Those markets are characterized by marked differentiation, high demand for goods, and sensitivity to prices - Improve production techniques and product quality To take full advantage of the opportunities that EVFTA brings to Vietnam's ceramic industry, businesses need to focus on updating modern production techniques, ensuring product quality meets standards and regulations on imported goods of the EU as well as carefully preparing export plans for each item, each target market; focus on improving the quality of goods, applying advanced quality standard systems to meet the increasingly strict technical requirements of the import markets - Improve the quality of the workforce According to Mr Ha Van Lam - Deputy Head of the Representative Board of Bat Trang Traditional Pottery Village, current craft villages are doing traditional vocational training, not being multi-functional, inexperienced, unscientific, and lacking in planning approach, inherit and creative Preferential policies for handicrafts and artisans have existed but have not yet become reality In addition, the elderly artisans died without being able to pass on the quintessence of their craft to the next generation and some artisans had to quit their jobs because the economy was not enough to make a living Enterprises, craft villages and cooperatives need to focus on improving the quality of the workforce Especially for young laborers who not have much experience, it is necessary to promote the transmission of experience from previous generations of artisans, ensuring a source of young workers with high qualifications At the same time, it is necessary to promote cooperation with pottery training centers and vocational training centers to ensure stability in quality human resources Conclusion In this article “Export of ceramics from Vietnam to EU in the context of the EVFTA agreement”, our group has analyzed the situation of Vietnamese ceramic exportation to the EU both before and under the EVFTA agreement, which demonstrates the differences the agreement has made to the Vietnam ceramic export market Even under the effect of the Covid-19 pandemic, the signing of the EVFTA has benefited Vietnam’s economy greatly, most notably helping to lower the former tariff barriers, raising Vietnam competitiveness and market share among other countries in the area Consequently, exporting ceramics from Vietnam to the EU under the EVFTA has reached its peak output in 2022 In the future, both the Vietnamese government as well as the enterprises in the field need to adapt to such changes to face the 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