Hanoi (VNS/VNA) - Tax policies are being specified while customs proceduressimplified to improve the legal framework to facilitate the European Union – VietnamFree Trade Agreement (EVFTA) enforcement.

DeputyDirector of the General Department of Customs Luu Manh Tuong said thedepartment pledged to create the favourable conditions for firms in conductingcustoms procedures.

Tuongsaid the customs watchdog was hastening administrative reforms andmodernisation to improve the business climate and the national competitivenessof enterprises and the whole economy. The information system for customsmanagement was also improved to adapt to the fourth Industrial Revolution.

TheEVFTA would give a push to the bilateral trade because of setbacks caused bythe COVID-19 pandemic, increasing trend of protectionism and escalating tradewars, Tuong said, adding that the trade deal was an opportunity for Vietnam tospeed up administrative reform, improve the investment climate andinstitutional reform.

AuAnh Tuan, Director of the Customs Control and Supervision Department, said aplan for customs management to implement the EVFTA was being developed andwould be soon submitted to the Ministry of Finance for approval.

Tuanurged firms to study and comply with rules of origins to enjoy preferential tariffsprovided by the trade deal.

Tuansaid that the Ministry of Industry and Trade issued Circular No 11/2020/TT-BCTabout rules of origin in the EVFTA on June 16 which provided instructions fororigin certification.

Accordingto Ha Duy Tung, Director of the International Cooperation Department under theMinistry of Finance, said that the ministry was also drafting detailed plans toimplement the EVFTA which would be submitted to the Government this month.

Tungsaid that a decree about EVFTA’s preferential import-export tariffs was beingdeveloped together with a circular about rules of origin.

NgoChung Khanh, Deputy Director of the Ministry of Industry and Trade’sMultilateral Trade Policy Department, when the trade deal came in force, Vietnamshould pay attention to developing sectors like services, finance, automobile,processing and manufacturing, information technology, high technology andprocessed food which the EU had strength in and might invest in Vietnam.

Khanhsaid that Vietnamese firms must focus on improving product quality andintellectual property protection to meet the EU’s requirements.

Accordingto Nguyen Hai Minh, Vice Chairman of Eurocham Vietnam, said that Europeaninvestors were paying attention to three major factors in Vietnam, includingimprovement in infrastructure system, human resource quality and investmentclimate, especially customs administrative reforms to facilitate trade.

Thetrade deal is planned to take effect on August 1.

TheGeneral Department of Customs estimated that the EVFTA with the roadmap oftariffs cut would cause a decrease of import and export taxes contributed to Statebudget revenue by around 1.1 trillion VND (47.5 million USD) per year.

Thedecrease would gradually be widen, depending on the impacts of the trade dealon growth. However, domestic revenue contributed to the budget would increasebecause the trade deal would lift trade, investment and economic growth.

Analysisby the Ministry of Planning and Investment showed that the EVFTA would helpincrease Vietnam’s export revenue to the EU by 20 percent this year, 42.7 percentin 2025 and 44.37 percent in 2030. The trade deal would also help push up thecountry’s gross domestic product (GDP) by around 2.18-3.25 percent in 2019-23period, 4.57-5.3 percent in 2024-28 and 7.07-7.72 percent in 2029-33 period./.