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Vietnam Trade Agreement With China

By on December 19, 2020 in Uncategorized

The first phase focused on the first six signatories who, until 2010, expressed support for the abolition of their tariffs on 90% of their products. [6] Between 2003 and 2008, trade with ASEAN increased from $59.6 billion to $192.5 billion. [7] China`s transformation into a major economic power in the 21st century has led to an increase in foreign investment in the bamboo network, with a network of Overseas Chinese companies operating in Southeast Asian markets and sharing family and cultural ties. [8] [9] In 2008, ASEAN members and the People`s Republic of China had a nominal gross domestic product of about $6 trillion. [10] [11] Starting in 2018, ASEAN will be Hong Kong`s second largest trading partner in goods trade and fourth in services trade. Hong Kong`s total exports to ASEAN increased by 7.3 per cent over the previous year to $2.8 billion, while imports were $73 billion, an increase of 20.1 per cent over the previous year. Given that China has been ASEAN`s largest trading partner since 2009, trade is expected to continue to grow as Hong Kong is increasingly re-exported. Hong Kong`s importance as a business in trade between mainland China and Vietnam will continue to grow with the entry into force of the free trade agreement. Re-exports of ASEAN products to China via Hong Kong have increased by 6.4% on an annual average since 2012.

After the first six signatories reached their target by 2010, the CLMV countries (Cambodia, PDR, Myanmar, Vietnam) pursued the same customs policy, with the same goal to be achieved by 2015. [6] In 2010, the ASEAN-China Free Trade Area became the largest free trade area in terms of population and the third largest in nominal GDP. It was also the third volume of trade after the European Economic Area and the North American Free Trade Area. [12] [7] On 1 January 2010, the average tariff on Chinese products sold in ASEAN countries increased from 12.8% to 0.6% until the remaining ASEAN members implemented the free trade area. Meanwhile, the average tariff rate on ASEAN products sold in China increased from 9.8% to 0.1%. [13] Up to 2015, ASEAN`s total merchandise trade with China reached $346.5 billion (15.2% of ASEAN trade), and ACFTA accelerated growth in Chinese direct investment and trade cooperation. [6] Volvo from Sweden, Adidas from Germany and Zara from Spain are European companies that have increased their investments in Vietnam in recent years. Analysts expect this trend to deepen with the entry into force this summer of the Vietnam-Euized trade agreement, adopted by the Vietnamese National Assembly earlier this month, especially as companies seek to reduce their dependence on neighbouring China. ASEAN members together have a population of more than 650 million. Indonesia accounts for more than 40% of the region`s population and its population has been the most opposed to the agreement. [17] [13] The trade agreement is also good news for multinationals outside the EU. Among Japanese companies, clothing companies such as uniqlo Fast Retailing are visiting Vietnam, while manufacturers of auto parts and machinery want to increase sales from Vietnam to Europe.

Hanoi has high hopes for the free trade agreement. The Ministry of Planning and Investment estimates that Vietnam`s export earnings to the EU will increase by 42.7% by 2025 and by 44.37% by 2030 compared to the non-agreement scenario.

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