Vietnam thus becomes the first emerging market country in the Asia-Pacific countries to establish free trade relations with the EU, and at the same time, the second ASEAN country to establish free trade relations with the EU after Singapore. Vietnamese businesses will have access to the EU market, which has a population of 500 million, while Vietnamese consumers will have access to cheaper EU products and services.
The entry into force of the agreement will give a big boost to Vietnam's economy. At the same time, there are opportunities and challenges for Chinese companies in Vietnam. Chinese firms can use Vietnam as a base to increase exports to the EU, while conversely they need to compete with EU goods entering duty-free in Vietnam's local market. After the agreement comes into force, both Chinese products and Chinese companies in Vietnam will face significant challenges. For example, in the EU market, Chinese products, especially labor-intensive products such as textiles and garments, will face competition from Vietnamese products. And in the Vietnamese market, China's mechanical and electrical products may face competition from EU products.
According to the head of Vietnam's garment enterprises told the media, the current production of fabrics mainly imported from China and other countries, and to enjoy zero tariffs in the European Union, the enterprise can not use imported fabrics, but the existing weaving printing and dyeing enterprises in Vietnam are only a few.
Huang Xingqiu said there are at least more than 2,000 Chinese-funded enterprises in Vietnam, which need to carefully study the terms of the agreement, benchmark the quality and technical requirements of EU products, and take advantage of the opportunity to continue to expand their business in exporting to the EU.
It is important to be clear in thinking that Chinese enterprises in the Vietnamese market has the possibility of being defeated by the EU products, and to plan ahead and make more first moves in order to be invincible.
Chinese-funded enterprises can not be too hasty, especially in the current epidemic, the need to comply with a series of measures taken by the Vietnamese government to combat the epidemic, prudent and steady to promote the resumption of work and production.
It is hoped that Chinese enterprises will clearly recognize the crisis and prepare in advance. to meet the challenges they may face.