European Union–Vietnam Free Trade Agreement (EVFTA) Overview The situation of Vietnam’s plastic industry in the context of implementing EVFTA Opportunities and Challenges, Recommendation, and Comparison Opportunities and Challenges Recommendation Comparison with Vietnams Competitors
May 2023 OPPORTUNITIES AND CHALLENGES for Vietnamese Plastic Exporters with the agreement of EVFTA Group 12 Our team Vu Ngoc Ha - 2114110099 Le Thi Thuy Linh - 2114110179 Nguyen Minh Phuong - 2112150190 Pham Nguyen Hoai Phuong - 2112150138 Bui Nguyen Hai Quynh - 2113150059 Nguyen Kieu Trang - 2112150171 Contents European Union–Vietnam Free Trade Agreement (EVFTA) a Overview b The situation of Vietnam’s plastic industry in the context of implementing EVFTA Opportunities and Challenges, Recommendation, and Comparison a Opportunities and Challenges b Recommendation c Comparison with Vietnam's Competitors EVFTA Overview The situation of Vietnam’s plastic industry in the context of implementing EVFTA a Overview Introduction of the EVFTA Agreement Overview of the plastic industry in Vietnam EVFTA's Commitments Related to the Plastic EU–Vietnam Free Trade Agreement (EVFTA) The EVFTA is a new-generation FTA that was negotiated between Vietnam and the 27 member states of the European Union With its extensive commitments, profound liberalization, and stringent standards, EVFTA is expected to make a substantial impact on the Vietnamese economic system and the business activities of Vietnamese enterprises Overview of the plastic industry in Vietnam REGARDING THE STRUCTURE OF PLASTIC PRODUCTS, The Vietnam Plastics Association (VPA) categorizes plastic products produced in Vietnam into four main product groups Main groups of plastic products produced by Vietnam Packaging plastic Household plastic Construction plastic Engineering plastic 0% 10% 20% Source: VPA report 30% 40% Overview of the plastic industry in Vietnam Main plastic products exported from Vietnam to the EU in 2019 EU MARKET The EU is the largest market for plastic exports from Vietnam, accounting for 15% of Vietnam's total plastic export turnover in 2019 Vietnam mainly exports finished products to EU Source: ITC Trademap Full table - next slide Main plastic products exported from Vietnam to the EU in 2019 Source: ITC Trademap Overview of the plastic industry in Vietnam Vietnam plastic industry growth rate from 2010-2020 16% - 18% ranked 3rd Only after telecommunications and textiles GROWTH RATE In early 2020, the COVID-19 pandemic had a significant impact on the global market, including Vietnam's export industry However, Vietnam's plastic industry experienced less impact from the pandemic First 10 months of 2020 3.7% Compared to the 2019 QUESTION What is the average percentage of GSP tax applied to Vietnamese plastic products exported to the EU before EVFTA? A 3% C 4% B 5% D 6% What is the picture about? (2) (5) (3) (4) QUESTION In 2021, which EU country (27) has the highest value of plastic imports from our country? A Netherlands C Sweden B France D Germany QUESTION In 2021, which EU country (27) has the highest value of plastic imports from our country? A Netherlands C Sweden B France D Germany What is the picture about? (5) (3) (4) QUESTION How long after the EVFTA comes into effect, will the GSP preferential tax on Vietnamese plastic products exported to the EU officially no longer apply? A months C years B years D years QUESTION How long after the EVFTA comes into effect, will the GSP preferential tax on Vietnamese plastic products exported to the EU officially no longer apply? A months C years B years D years What is the picture about? (5) (4) QUESTION Where does Vietnam rank in the list of countries exporting plastic products to the EU in 2022 (ranked by export value)? A 15 C 13 B 12 D 11 QUESTION Where does Vietnam rank in the list of countries exporting plastic products to the EU in 2022 (ranked by export value)? A 15 C 13 B 12 D 11 What is the picture about? (5) QUESTION Vietnam accounts for how much % of the total import value of plastic products of the EU after implementing EVFTA for year? A C > 10% > 2% B 2% D < 2% QUESTION Vietnam accounts for how much % of the total import value of plastic products of the EU after implementing EVFTA for year? A C > 10% > 2% B 2% D < 2% What is the picture about? THANK YOU FOR LISTENING!