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Local firms urged to get ready for FTA with Australia, NZ
Trade experts have called for Vietnamese companies to get prepared for the ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA), which is expected to take effect from early next year.
Nguyen Hong Ha, deputy director of the Vietnam Chamber of Commerce and Industry (VCCI) in HCMC, said that in addition to the support of Government agencies, companies should be active and creative in exploring the opportunities the region-wide agreement would bring.
“The chance is in the hand of businesses,” Ha said at a news briefing in HCMC last week, which was also attended by Australian consul general Graeme Swift and New Zealand consul general Graham Sims.
Australia’s senior trade commissioner Tony Burchill said the pact would lift most tariffs when it came into force, hopefully no later than January 1, 2010.
Burchill said 90-100% of tariff lines would be eliminated for Vietnam and other ASEAN nations and that Australia and New Zealand would exempt all tariffs on imports from Vietnam by 2020.
Ha of VCCI said the deal would benefit Vietnamese companies, especially exporters of farm produce and consumer’s products including food, textile, footwear and furniture.
The agreement will also enable local companies to import raw materials, machines and technology with more reasonable prices.
Burchill clarified Australia and New Zealand were committed to free tariffs for such items as fish and fish products; fresh and dried fruit and nuts; sugar; pulp and paper; and wood and wood articles imported from Vietnam by 2010.
Vietnamese companies will enjoy mostly free tariffs for plastics, minerals, textiles and textile articles bound for the two countries.
Burchill said Vietnam’s tariff commitments included an annual reduction by 5% from 2010 for dairy imports from Australia and New Zealand, and a tariff waiver for some products of this type by 2016-2017.
Vietnam will offer phased tariff reductions for beef, pork and lamb imports from Australia and New Zealand, as well as a tariff exemption for breeding animals by 2010 and other live animals by 2016. As for automotive parts, Vietnam will eliminate most tariffs or reduce rates to 5% by 2018.
Ha of VCCI said two-way trade between Vietnam and Australia and New Zealand had grown steadily in the past five years, but the real value remained modest and below expectations.
She demonstrated Vietnam’s trade with Australia stood at US$5.6 billion and with New Zealand at around US$300 million last year.
Figures from Australia’s Department of Foreign Affairs and Trade show two-way trade between Australia and Vietnam grew an average of 22% a year over the last five years, and their goods and services trade reached A$8 billion in 2007-2008.
Of the total value, Vietnam exported more than A$5.6 billion worth of oil, gold, furniture, fruit, nuts, crustaceans and recreational travel. The country imported metals, paints and pigments, plastic sheeting, wheat, dairy products, education and training among others from Australia in 2007-2008.
Companies of Australia and New Zealand have invested more than US$1 billion in over 190 projects in Vietnam, according to VCCI.
Ha said it was expected that the AANZFTA would serve a springboard for strong trade and investment growth between Vietnam and the two countries after its entry into force.
Ha said the pact was inked in Thailand in February this year. The Ministry of Industry and Trade is making preparations for it to be ratified.
VietNamNet, SGT
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