09:45 | 30/08/2019 Trade
(VEN) - Germany is one of the major export markets for Vietnamese goods in the European Union (EU). The recently inked free trade agreement between Vietnam and the EU (EVFTA) will create new opportunities for Vietnamese goods to enter this market.
General Department of Vietnam Customs data show that since 2017, the Netherlands, the UK and Germany have been the top three importers of Vietnamese goods in the EU. In 2017, trade between Vietnam and Germany reached US$9.5 billion, including US$6.3 billion worth of Vietnamese exports to Germany. In 2018, bilateral trade increased to more than US$10 billion, including US$6.86 billion worth of Vietnamese exports to this market.
In the first half of 2019, Vietnam exported more than US$3.3 billion worth of goods to Germany. Major exports included leather, footwear, handbags, textiles, garments and seafood.
According to the Ministry of Industry and Trade, Germany is Vietnam’s largest trading partner among the 28 EU member states. The EVFTA will help increase the presence of Vietnamese goods in the German market.
Nguyen Son Tra, Deputy Director of the WTO and Trade Negotiation Division of the Ministry of Industry and Trade’s Multilateral Trade Policy Department, said that EU member states are committed to reduce 85.6 percent of tariff lines as soon as the EVFTA takes effect. Over seven years after the agreement takes effect, 99.2 percent of tariff lines applied by the EU to Vietnamese exports will be reduced to zero, meaning that 99.7 percent of Vietnam’s export value to the EU will be free of tax.
Experts have warned businesses that compared with general EU regulations, those applied by Germany are stricter. Therefore, to promote exports to this market, domestic companies need to pay special attention to three factors: quality, product hygiene and social responsibility. However, any brand or product accepted in the German market could open the doors to other EU markets.
Businesses should also learn about German technical standards and tariff regulations. Participation in fairs and exhibitions in Germany will also facilitate their successful access to this market.
To help businesses access the German market, the Ministry of Industry and Trade, in association with the Swiss
Import Promotion Program (SIPPO) and partners, have developed a trade and investment promotion program in
Germany, launched in June 2019 and ending in December. Businesses will be provided with information about market
demand and instructions to prepare sample goods and marketing documents.