Exporting to the EU: Can earn 8 times more value if production is sustainable

09/20/2023 15:05 Van Hang Print article

ANTD.VN - According to Mr. Ngo Chung Khanh - Deputy Director - Multilateral Trade Policy Department (Ministry of Industry and Trade), if exporting sustainably to the EU, instead of only earning 10 VND in value, businesses can earn up to 70-80 VND.

Hàng hóa xuất khẩu sang EU cần đảm bảo yếu tố bền vững ảnh 1

Goods exported to the EU need to ensure sustainability

The EU is currently one of Vietnam’s key export markets. However, according to the Ministry of Industry and Trade, this is a demanding, high-demanding market. Enterprises wishing to participate in the global market and increase their value must aim for sustainable development.

Mr. Ngo Chung Khanh said that EVFTA is not a normal trade agreement but an agreement with very important factors on sustainable development. “EVFTA is an agreement that focuses on sustainable development, so businesses that want to export to the EU need to pay close attention to sustainable development, environmental issues, and labor issues,” Mr. Ngo Chung Khanh emphasized.

EVFTA is also the first agreement with a fairly clear enforcement mechanism. The two sides agreed to establish a Committee on Sustainable Development and have representatives of the Governments and management agencies of both sides meet annually or periodically to review the implementation process of both sides, in which they will present experiences as well as issues that need to be addressed.

In addition, the trend of consumers in the EU market is to increasingly care about how businesses make products, whether the products affect the environment or not, whether they are sustainable or not, and how they treat workers?

On the contrary, if sustainable development is effectively implemented, it will help businesses increase their value and also help businesses orient the building of Vietnamese brands and Vietnamese businesses in the European market.

“Building a brand is a very difficult story, but not impossible. If we care about sustainable development, it is a very important factor for us to gradually build brand value and from there, the money we bring back will be more. For example, instead of 10 dong in exports, we can bring back 70-80 dong” – a representative of the Ministry of Industry and Trade said.

Therefore, to make good use of EVFTA in the coming period, Vietnamese enterprises must proactively produce sustainably because without waiting for EU regulations, consumers in this market will boycott and stay away from products of unclear origin regarding environmental protection or labor issues.

According to the Ministry of Industry and Trade, Vietnam’s export turnover to the EU market is estimated at 29.4 billion USD in the first 8 months of this year. Although down 8.3% compared to the same period last year, the EU is still Vietnam’s third largest export market after the US and China.

Vietnam's exports to the EU are increasing due to the positive impact of EVFTA.

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