According to various comprehensive evaluations, the European Union-Vietnam Free Trade Agreement (EVFTA) is expected to have profound positive impacts on Vietnam across multiple aspects.
Considering the sheet metal fabrication industry in Vietnam, while the EVFTA does not explicitly mention this sector, its impact is significant.
Politics, National Security, and International Strategy: The EVFTA strengthens bilateral partnerships between Vietnam and the EU, encompassing 28 member countries. This collaboration enhances political ties, national security, and international strategic cooperation, fostering a mutually beneficial relationship.
Economy: The EVFTA opens doors to expanded markets for both Vietnam and the EU, reducing or eliminating tax barriers and facilitating smoother trade. This creates opportunities for Vietnam to export agricultural, seafood, textile, healthcare, and other products to larger markets, while also fostering a more competitive environment for Vietnamese-made products.
Labor, Jobs, and Social Security: The EVFTA promotes job creation and improves labor conditions by encouraging foreign investment and market expansion. It facilitates economic growth, leading to improved social security measures and enhanced livelihoods for Vietnamese workers.
Metal sheet products are widely utilized in various industries mentioned in the agreement, including textiles, seafood, healthcare, logistics, electronics, and IT. Therefore, the benefits of the EVFTA extend to the sheet metal industry as well.
The benefits for the sheet metal industry in Vietnam after signing the EVFTA are as follows:
1. Market Access: The EVFTA provides access to a broader customer base and enables the sheet metal industry to tap into new markets within the EU. Lower or eliminated tax barriers for specific products facilitate easier trade and market entry.
2. Export Opportunities: With the EVFTA, Vietnamese sheet metal manufacturers have increased opportunities to export their products to larger and more lucrative markets. The agreement enhances the competitiveness of Vietnamese-made sheet metal products, positioning them favorably against competitors.
3. Technological Advancement: The EVFTA enables Vietnamese enterprises to adopt modern production methods and upgrade their production capabilities. With lower import taxes and improved access to European countries' advanced machinery, Vietnamese sheet metal manufacturers can invest in modern equipment, enhancing product quality and efficiency.
4. International Recognition: The EVFTA's provisions contribute to raising the profile of Vietnamese sheet metal industry players in global supply chains. This recognition attracts attention from foreign manufacturing enterprises seeking reliable and high-quality sheet metal fabrication services.
One exemplary company in the sheet metal fabrication industry is Smart Vietnam. Renowned for its application of modern and intelligent technologies, Smart Vietnam is gaining attention from industry customers. The company stands to benefit from the EVFTA by attracting potential customers and offering them high-quality, competitive, and reliable services.
With its extensive experience in executing projects of varying scales and utilizing advanced technologies imported from renowned manufacturers like Trumpf in Germany, Smart Vietnam is confident in delivering high-quality products suitable for export. The lower tax barriers and improved logistics services under the EVFTA further facilitate Smart Vietnam's export activities, enabling the establishment of a reputable brand in the international market.
The EVFTA presents substantial opportunities for the sheet metal industry in Vietnam. By leveraging the benefits of the agreement and overcoming associated challenges, companies like Smart Vietnam can thrive and contribute to the growth and development of the industry, ultimately bolstering Vietnam's overall economic success.