x Import-Export Enterprises need to learn more about what the EVFTA Agreement is?
What is the commitment? x Do you want to know what the impact of EVFTA is on Vietnam's economy today?
x Do you want to find a reputable, reasonably priced unit specializing in importing and exporting Vietnamese - European goods?
In the current trend of globalization, we are certainly no longer unfamiliar with world trade agreements, especially the EVFTA Agreement. So right here, PROSHIP.VN will answer questions related to the EVFTA Agreement, and at the same time highlight many of its strengths in professional and quality International Intermodal Rail Container Transport Services. Top. Along with that, Proship's door-to-door delivery service network also spreads throughout Europe and has unlimited transportation capacity, ready to serve all customers' needs.
Shipping contact hotline:
Ms Tien: 0909 986 247
Ms Dung: 0939 999 247
Ms Duy: 0902 581 247
What is EVFTA agreement?
What is the EVFTA Agreement? EVFTA stands for European Union - Vietnam Free Trade Agreement. EVFTA is a free trade agreement between Vietnam and 27 member countries in the EU. Includes Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Greece, Germany, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain and Sweden. At the same time, this is also one of the two Agreements with the widest scope of commitments of Vietnam to date (previously with the Trans-Pacific Partnership Agreement - TP).
After many negotiation sessions, the Agreement ended its negotiation process on December 1, 2015 and on February 1, 2016, the official text of the Agreement was announced. June 26, 2018 marked a new step for EVFTA, officially splitting this Agreement into two: Trade Agreement (EVFTA) and Investment Protection Agreement (EVIPA). At the same time, the legal review process of both Agreements was officially ended.
The EVFTA Agreement was signed on June 30, 2019 and ratified by the European Parliament on February 12, 2020. On the Vietnamese side, the National Assembly officially approved it on June 8, 2020. On March 30, 2020, the European Council also approved EVFTA to complete ratification procedures. At the same time, the Agreement will take effect from August 1, 2020. The EVIPA Agreement requires ratification from 27 member countries (after the UK completes Brexit) in the EU to officially take effect.
What do the commitments in the EVFTA Agreement include?
Once you clearly understand what the concept of EVFTA is, it is also very important to learn about the commitments in the European Union - Vietnam Free Trade Agreement (EVFTA). Commitments of Vietnam and the EU in some key areas of the EVFTA Agreement are as follows:
- Cut import and export taxes;
- Tariff quotas;
- Rules of origin;
- Services – Investment;
- Government Procurement;
- Intellectual Property;
- Trade and Sustainable Development.
Some main contents of the EVFTA Agreement's commitments
- Trade in goods:
For exports, as soon as the EVFTA Agreement takes effect, the EU will eliminate import taxes on about 85.6% of tariff lines, equivalent to 70.3% of Vietnam's export turnover to the EU. After 7 years, the EU will eliminate import taxes on 99.2% of tariff lines, equivalent to 99.7% of Vietnam's export turnover.
For about 0.3% of the remaining export turnover, the EU commits to giving Vietnam a tariff quota with an import tax within the quota of 0%. For EU exports, Vietnam commits to eliminate tariffs as soon as the Agreement takes effect on 48.5% of tariff lines (accounting for 64.5% of import turnover).
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After 7 years, Vietnam eliminated import taxes on 91.8% of tariff lines, equivalent to 97.1% of export turnover from the EU. After 10 years, the tariff elimination rate is about 98.3% of tariff lines (accounting for 99.8% of import turnover). For about 1.7% of the remaining EU tariff lines, Vietnam applies a roadmap to eliminate import taxes over 10 years or apply tariff quotas according to WTO commitments.
- Trade in services and investment:
Vietnam and the EU's commitment to trade in investment services aims to create an open and favorable investment environment for the operations of businesses from both sides.
- Government Procurement:
Vietnam and the EU agreed on contents equivalent to the WTO's GPA Agreement. With some obligations such as online bidding, setting up an electronic portal to post bidding information,... Vietnam has a roadmap to implement. The EU also commits to providing technical assistance to Vietnam to implement these obligations.
- Intellectual Property:
Commitments on intellectual property include commitments on copyright, inventions, inventions, commitments related to pharmaceuticals and geographical indications, etc. Basically, Vietnam's intellectual property commitments are in accordance with current legal regulations.
- Other contain:
The EVFTA Agreement includes Chapters related to competition, state-owned enterprises, sustainable development, cooperation and capacity building, legal and institutional. These contents are consistent with Vietnam's legal system, creating a legal framework for the two sides to strengthen cooperation and promote the development of trade and investment between the two sides.
For important product groups, the EU's commitments are as follows
- Textiles, footwear and seafood (except canned tuna and fish balls): The EU will completely eliminate import taxes on Vietnamese products within 7 years from the date the Agreement takes effect. With canned tuna, the EU agrees to give Vietnam a satisfactory amount of tariff quota.
- Rice: The EU gives Vietnam a significant quota for milled rice, unmilled rice and fragrant rice. Rice imported under this quota is completely tax-free. As for broken rice, import tax will be eliminated according to the roadmap. For rice products, the EU will bring import tax to 0% within 7 years.
- Honey: The EU will eliminate tariffs as soon as the Agreement takes effect and will not apply tariff quotas.
- Vegetable and fruit products, processed fruits and vegetables, other fruit juices, bags, suitcases, plastic products, glass-ceramic products: Tariffs will basically be eliminated as soon as the Agreement takes effect. .
Some key features of commitments in some service sectors follow
- Banking services: Within 5 years from the date the Agreement takes effect, Vietnam commits to consider favorably allowing EU credit institutions to increase foreign holdings to 49% of charter capital. in 02 joint stock commercial banks of Vietnam. However, this commitment does not apply to the four joint stock commercial banks in which the state holds controlling shares: BIDV, Vietinbank, Vietcombank and Agribank.
- Insurance services: Vietnam commits to allowing cross-border reinsurance, and commits to providing voluntary health insurance services according to Vietnamese law. As for the request to allow the establishment of a reinsurance company branch, we only allow it after a transition period.
- Telecommunications services: We accept the equivalent level of commitment in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). Especially for value-added telecommunications services without network infrastructure, we allow the EU to establish 100% foreign-owned enterprises after a transition period.
- Distribution services: We agree to waive the requirement to test economic needs after 5 years from the date the Agreement takes effect but reserve the right to carry out distribution system planning on a non-discriminatory basis. We also agree not to discriminate in the production, import and distribution of alcohol, allowing EU businesses to reserve the conditions to operate under current licenses and only need one license to carry out their activities. import, distribution, wholesale and retail activities.
Shipping contact hotline:
Ms Tien: 0909 986 247
Ms Dung: 0939 999 247
Ms Duy: 0902 581 247
Impact of the EVFTA Agreement on Vietnam's economy
With strong commitments in the EVFTA Agreement, the Vietnam - EU trade market will develop strongly and expand the market for export products. Committing to eliminating import taxes up to nearly 100% of the tariff schedule, increasing export opportunities for products that have advantages in Vietnam such as textiles, garments, leather shoes, agricultural products, wooden furniture...
Through the EVFTA Agreement, Vietnam's export turnover to the EU will increase by about 20% (2020). In the future, it will increase by 42.7% (2025) and by 2030 by 44.37% compared to when there was no Agreement. At the same time, import turnover from the EU to Vietnam also increased from 15.28% (2020); 33.06% (2025) and expected to be 36.7% in 2030.
The Government's commitments on services and investment in procurement as well as specific regulations on market opening in the EVFTA Agreement will create opportunities for EU goods and service businesses to easily access Vietnam. Male. Thanks to that, domestic consumers will have access to high-quality services in the pharmaceutical, beauty, public infrastructure industries... from the EU. In addition, commitments on state governance will ensure a stable and open business and legal environment for both sides and businesses and investors of Vietnam and the EU.
Through EVFTA and IPA customs clearance, EU Investors not only have the opportunity to access the Vietnamese market, but also serve as a bridge to help the EU promote relations with ASEAN and each country in the ASEAN bloc. From there, create money to discuss an FTA Agreement that will benefit both sides in the future.
>>See more: What is the RCEP Agreement?
Proship.vn – Provider of freight transport services by rail containers from Vietnam to Europe with reputation, safety, and competitively priced
In order to best meet the increasing demand for sending goods to Europe, PROSHIP.VN we provide to the market a complete package of "Vietnam - Europe railway container freight transport service" with Commitments to accuracy, high safety, competitive prices, top reputation and flexible schedules help make shipping more convenient. From here, it also contributes to promoting the sustainable development of the EVFTA Agreement signed between our country and EU member countries.
Proship always has a close connection with related units, complete infrastructure, vehicles, strong human resources, etc., helping the plan to transport large quantities of goods by rail containers go more smoothly. . The extensive warehouse system in the Northern region helps improve the ability to store goods and be proactive in the time it takes to transport large quantities of goods to the European market.
For shipments to Europe, we will transport cold containers, hot containers, and dry containers of a variety of goods from consumption to production and business. Applying transportation solutions reduces 20-35% of Logistics costs in the enterprise's cold supply chain. The company is proud to be a pioneer in the application of spontaneous refrigerated containers in Vietnam and specializes in international rail container transport business to serve businesses.
Vehicles used to send goods from Vietnam to Europe by International Intermodal Railway Containers will be equipped with 170 P cars to carry gasoline and liquid goods, 150 Mc cars to transport all kinds of containers, 15 Mcc wagons transport refrigerated containers. In addition, there are about 50 high-walled open-roof H wagons transporting all kinds of components and containers, 20 NR wagons transporting cars, etc. Proship is currently a trusted partner of many individuals and companies. Large companies/groups, many international organizations, many factories, many other domestic freight companies,...
Proship receives goods in Ho Chi Minh City, Hanoi, Da Nang and delivers in Europe
* Receive goods in Ho Chi Minh City, Hanoi, Da Nang:
- In Ho Chi Minh City area: District 1, District 2, District 3, District 4, District 5, District 6, District 7, District 8, District 9, District 10, District 11, District 12, Thu Duc, Tan Phu, Tan Binh, Phu Nhuan, Go Vap, Binh Thanh, Binh Tan, Binh Chanh, Can Gio, Cu Chi, Hoc Mon, Nha Be,...;
- In Hanoi area: Hoang Mai District, Tu Liem District, Hoan Kiem District, Long Bien District, Ba Vi District, Dong Anh, Gia Lam, Thanh Tri, Thuong Tin, Thanh Xuan, Dong Da, Ha Dong, Me Linh, Thanh Oai, Quoc Oai,...;
- In Da Nang area: Hai Chau District Cam Le District Thanh Khe District Lien Chieu District Ngu Hanh Son District Son Tra District Hoa Vang District Hoang Sa District,...
- From large Industrial Parks in Vietnam: Phuoc Dong, Duc Hoa III, Nhon Hoi Binh Dinh; My Phuoc 3, Tan Khai, Minh Hung, Dong Xoai, Tan Phu Trung, Ham Kiem; Binh Thuan, Bau Xeo, Loc An - Binh Son, Giang Dien, An Tay, Bim Son, Long Duc, Du Long, An Hoa; Long Huong, Tam Diep II, Tram Vang, Cat Trinh, My Yen – Tan Buu – Long Hiep; Khanh Phu, Ba Thien 2, Nhon Hoa, Yen Phong II, Cong Hoa, Dong Anh, Soc Son; Ascendas – Protrade, ITAHAN, Ong Keo, Long Khanh, Dau Giay; Tan Thanh, Soai Rap Ship, Khai Quang Vinh Phuc, Gian Khau, Thanh Duc Industrial Park; Song Cong 2 Industrial Park, North Dong Phu Industrial Park, Thuan Yen Industrial Park,…
* Delivery in European countries: Germany, Netherlands, France, Belgium, Poland, Russia, England, Austria, Czech Republic, Denmark, Hungary, Kazakhstan, Uzbekistan, Tajikistan,...
Items are shipped from Vietnam to Europe
- Construction materials for houses, buildings, factories, etc.;
- Fashion items: clothes, shoes, bags, belts, wallets, wallets,...;
- Handicrafts: tables, chairs, cabinets, altars, bamboo and woven garments, etc.;
- Dried foods: dried fish, candy, rice paper, pepper, coffee,...;
- Agricultural products, fruits, frozen seafood,...;
- Wooden furniture, interior equipment,...;
- Electronic items, electronic components, machinery, USD, CDs, phones, computers;
- Spare parts for cars, motorbikes,...;
- Western medicine, Southern medicine, Chinese medicine;
- Herbal tea; dry tea;…;
- Functional foods;
- Cosmetics: lotion, lipstick, powder,... and many other items.
* Note: Goods are not accepted for export to Europe:
- Goods on the list of prohibited exports or imports in Europe;
- Stimulants, drugs, marijuana, etc.;
- Dangerous items that are flammable and explosive;
- Depraved cultural products, reactionary documents, secret national documents, etc.;
- Currency, cash, high-value items such as gold, silver, and precious stones;
- Illegal goods, other unknown origin,...
Transportation support services are included when sending goods to Europe
- Support packaging and packaging;
- Free storage (if storage time is not too long);
- Support loading and unloading goods at the warehouse.
How to receive and deliver goods from Vietnam to Europe
- Transporting Container goods from Station to Station;
- Transporting goods by Container from Station to Warehouse;
- Transporting goods by Container from Warehouse to Warehouse;
- Other accompanying services if requested by the customer.
Shipping costs to Europe (expensive or cheap) depend on several factors
- Is the quantity of goods sent to Europe for export large or small?
- What is the packing volume and dimensions of the goods?
- What is the type of goods, what are the characteristics of the goods? Attached documents (if any)?;
- Recipient address, phone number and other information if the goods need customs clearance, etc.?
With the basic knowledge that Proship has compiled and presented, we hope to help readers understand more about what the EVFTA Agreement is , the importance and impact of EVFTA in order to effectively support everyone. activities related to import and export of goods from Vietnam - Europe. Domestic and Foreign Enterprises, when needing to transfer goods for trade, business or consumption, do not hesitate to contact 0909 344 247 for specific advice on the service you are interested in. Proship is confident to be a bridge to help bring your products/goods closer and faster to your country.
Shipping contact hotline:
Ms Tien: 0909 986 247
Ms Dung: 0939 999 247
Ms Duy: 0902 581 247
