Vietnam’s aluminium profile manufacturers from the north have formed an association and it made it first public appearance in Hanoi on July 23.
It was during a workshop on the EU-Vietnam Free Trade Agreement (EVFTA) held in Hanoi that the announcement was made regarding the Association. The workshop was organized as a part of a launching event for businesses to discuss opportunities and challenges for the aluminium profile sector. The event highlighted the benefits of a free trade agreement between Vietnam and the EU countries.
Vice Chairman and Secretary General of the Association Vu Van Phu said Vietnam’s aluminium exports to the EU make up only five per cent of its total aluminium import.
The European Union signed a landmark free trade deal with Vietnam in June, the first of its kind with a developing country in Asia, paving the way for tariff reductions on 99% of goods between the trading bloc and Southeast Asian country. The deal will eliminate 99% of tariffs on Vietnamese exports, although some will be cut over a 10-year period and some will be limited by quotas.
Vice President of the European Chamber of Commerce in Vietnam (EuroCharm) Nguyen Hai Minh said the tariff on Vietnamese aluminium exports to the EU will be reduced to zero per cent within eight years when the EVFTA takes effect. He however, mentioned that after the removal of tariffs, businesses must meet the market’s conditions to enjoy incentives.
With this deal, European businesses will shift their investment to Vietnam, then export to the Association of Southeast Asian Nations (ASEAN) and explore the Asian market. He suggested that the SMEs must change their mind set and working strategies to leverage on the opportunities to be brought about by EVFTA.