When Vietnam to participate in the free trade agreements Vietnam – EU VEFTA and proposes appropriate business strategy for the business.. When Vietnam to participate in the free trade ag
Trang 11 Analysis of the positive impact and negatively on the competitiveness of enterprises Vietnam When Vietnam to participate in the free trade agreements Vietnam – EU (VEFTA) and proposes appropriate business strategy for the business.
TABLE OF CONTENTS
TABLE OF CONTENTS 2
RESEARCH OF CONTENT 3
1 Analysis of the positive impact and negatively on the competitiveness of enterprises Vietnam When Vietnam to participate in the free trade agreements Vietnam – EU (VFFTA) and proposes appropriate business strategy for the business 3
1.1 General Presentation of VEFTA 3
1.1.1 The parties negotiated 3
1.1.2 The commitment 3
1.1.3 Status of negotiations 3
1.1.4 Scope of negotiations 3
1.1.5 The effect of VFFTA to the fields of Vietnam 3
1.2 Establishment History and development of the Company 3
1.2.1 Overview of Van Lan Joint Stock Company 3
1.2.2 Scope of Business of the Company 3
1.2.3 Business Process freight 3
1.3 Analysis of the impact of positive and negative of VEFTA to enterprises in Vietnam in general, Van Lan Joint Stock Company in particular 3
1.3.1 Reason for choosing Van Lan Joint Stock Company to research topics 3
1.3.2 Analysis of the positive impact and negatively on the competitiveness of enterprises Vietnam when Vietnam to join the free trade agreements Vietnam - EU (VEFTA) 3
1.3.3 Proposes appropriate business strategy for the business 3
Trang 21.3.4 Proposes solutions for Van Lan Joint Stock Company 3 LIST OF REFERENCES 3
Trang 3RESEARCH OF CONTENT
1 Analysis of the positive impact and negatively on the competitiveness of enterprises Vietnam When Vietnam to participate in the free trade agreements Vietnam – EU (VFFTA) and proposes appropriate business strategy for the business.
1.1 General Presentation of VEFTA
1.1.1 The parties negotiated
Vietnam and the EU: In particular, the EU to negotiate with nature as a
unified block trade, the commitments that the EU offer will bind all the MemberStates of the EU-is composed of twenty-seven countries; In contrast the Vietnam'scommitments will be valid for goods and services from all EU member countries
The EU is Vietnam's major trading partners (particularly in the area of exports)
So getting the free trade agreement with this market will impact directly and in fullscale for several sectors of Vietnam
+ Trade in goods: tariff reduction commitment (to 0% or near 0%) for many (ormost) of the commodity groups
+ Trade in Services: Committed to open services markets in more fields and /
or to schedule an earlier WTO commitments
+ Investment, Intellectual Property: the commitment to create more favorableconditions for investment activities, strengthen the protection of intellectual propertyrights
The commitments in the framework of the free trade agreements are seen as
"exceptions" to the principle of non-discrimination in the WTO and is only applicablefor partners in the deal that did not apply to countries other For the Vietnam side, thenegotiation results are considered beneficial if the EU accepts open market (tax cuts)for the areas in which Vietnam may increase export and reduce the barriers to this
Trang 4market access and Vietnam are not forced to open markets where domesticcompetitiveness is weak.
1.1.3 Status of negotiations
On 2/7, the fourth round of negotiations on the free trade agreement betweenVietnam and the European Union (VEFTA) was officially opened in Brussels, thisnegotiating session lasted from 2-5/7, as the first two sides go into substantivenegotiations and expressed hope negotiations the two sides in the coming daysimplement the roadmap formulated VEFTA negotiation had been through 3 sessionsand the goal was led to the Vietnam and the EU agreed to try to conclude negotiations
by the end of 2014 To reach that goal, the two sides have set a roadmap to workextremely hard
The three are mutually determined by the roadmap is intended to unify thebasic content of the frame agreement to clarify the requirements, the desire of theother party Three rounds of negotiations to start was made with the very positiveattitude of the two negotiating delegations The two sides exchanged for another letter
of agreement of each party for each chapter Essentially, through 3 sessions, both theVietnam-EU has clarified the text that you want in the other party, at the same timewas switched on some important leads as touted on the open commodity market Thisstep is especially important for building the Foundation for the agreement that the twosides are negotiating
Therefore, the fourth negotiating session is very important in the transitionfrom negotiations to clarify the benefit each other's demands to negotiate essentially toopen each other's market like Therefore, the focus of the talks Wednesday would bethe most important issues of the two sides, which is particularly concerned thatproblems such as goods, services, investment, Government purchases as well asother matters related to the frame agreement to mutually make the process of opening
up markets for each other, such as the protection of intellectual property rights, theGeneral regulations on the trade of goods and The two sides expect this Wednesdaynegotiations, Vietnam and the EU will be "the bricks to form the agreement."However, the negotiation process is the same as EVFTA the negotiation of other
Trang 5agreements of the EU recently is the very high standard agreement, so this is a verycomplex process.
The free trade agreement EU-Vietnam once formed will create a morefavorable environment for Vietnam, the taxes to zero for most goods such asagricultural products, food products, footwear, apparel and This expectedcommercial activity will be promoted, as well as bring more safety in the process ofenterprise's investment At the same time, the free trade agreement EU-Vietnam isalso expected to European business to invest more aggressively into Vietnam in thecoming time
Vietnam and the EU have signed off the comprehensive partnership agreement(PCA) on 8/10/2010 tonight-a text which the EU usually signed before the talks andthe signing of the FTA with the partners So the future of the free trade agreement,Vietnam-EU is relatively certain However no formal round of negotiations would beconducted Due to the fundamental issue of the FTA has not been decided should bethe opportunity to comment and suggestions on the content of the FTA and thepossibility the proposals being considered are also larger
1.1.4 Scope of negotiations
Because there have been no official decision on the matter will be discussedand are committed in the framework of this FTA should not yet able to define exactlythe scope of negotiations However, the EU has signed several FTAS with many otherpartners, including partners in the developing countries is similar to Vietnam couldspeculate that for Vietnam, they can also apply the same range The scope of this FTA
is basically also matches the statement guide/disambiguation about the scope of theEU's FTA (especially the EU Global 2006)
Specifically, EU's FTA usually follow the following directions:
a) The specific commitments to achieve a wider opening commitments under the WTO ("WTO +" FTAs), namely:
- Tariffs and quotas are eliminated for ninety to ninety-five tariff lines;
- To intensify liberalisation in services (including most of the service sector) and investment;
- Go beyond the WTO in matters relating to government procurement,
competition, intellectual property rights and commercial goods
- Including the provisions related to labor and environmental standards
Trang 6- Simplification of rules of origin
- Non-tax issues is enhanced (transparency Bill, acknowledge each other, in accordance with international standards, discussed regulatory issues and
- Can accept the roadmap is open longer than
- Not too interested in the services sector and investment are not open as well asthe settlement of disputes between investors with the Government, to allow fornegotiations on the "protection" with partners in a number of sensitive servicessectors (e.g health, education, communications etc.)
- Not too stressed to the strong binding elements in domestic law
- No more demanding agreement on intellectual property rights in the WTO(TRIPS +) with respect to intellectual property issues (except for the issue ofgeographical indications)
- Do not necessarily require WTO + issues, labor standards, the environment(adopted international standards included)
b) Pay attention to the non-trade issues (for "EU export model" to other countries through FTAs), for example:
- "Social Justice": FTA with the aim of strengthening the European values,including issues of environmental standards, social and cultural diversity worldwide
- Link the trade issues with climate change (FTA provisions on trade andsustainable development)
- The statement of the FTA on climate change, democracy, and human rightsissues
c) The issues to manage risks in international trade (related to SPS and TBT): use caution with the standard trade restrictions with the network of safety and health (which not be based on international standards).
- The scope of the FTA that the EU often concluded with developing countries,
as mentioned above, we can see Vietnam can achieve favorable agreements with the
Trang 7EU that trade-offs are not so much about the opening market (not too stressed by the
EU in this issue), but Vietnam may have to accept commitments beyond issues oftrade (such as environmental, labor, social values EU,etc, )
- Businesses can refer to the scope of the FTA that the EU has signed to makepreliminary plans or proposals for each group of issues related to their industry in linewith the interests of the EU industry and ease the acceptance receive
1.1.5 The effect of VFFTA to the fields of Vietnam
Food production, Vietnam is the largest impact will be subject to the reduced11-26% of output and 13-30% of workers (both skilled and simple labor) The incomefrom this sector will decline because of both output and prices are falling So farmers
in Vietnam will have difficulty when consumers benefit because the price reduction
On trade, Vietnam will experience more difficult, Vietnam will boost exports 44% thanks to the low initial levels However, due to the market share of the foodtrade in the total trade between the EU and Vietnam small so not much substantiveimpact As for the food-processing industry, Vietnam will reduce manufacturing(Vietnam rising 14.99-33.05%) and price
26-Textiles, apparel & footwear: Vietnam will increase 154.1% footwear and rose133.1 percent of labor and 14.6% of the production of apparel However, in the textileindustry, Vietnam's production will fall by 17% and 23.3% reduced labor Overall,Vietnam is considered to be most beneficial and will be the transformation of labourbetween 3 field
Production of autos and parts: Vietnam will decrease production Due to theinitial trade (prior to the FTA) of this sector are very low, Vietnam will reduceproduction at most (28-47%) and reduced revenue by about 35%
Financial services & insurance: Vietnam has advantages in the field offinancial services, but will have difficulty in insurance services However, if both thisfield 2, the output is steadily increasing for all ASEAN countries FTA will notimpact heavily on the price of financial services, but in Singapore the price ofinsurance will decrease while increases in Vietnam
The biggest impact of the FTA for theVietnam trade in financial services andinsurance, particularly imports In the field of financial services and insurance,
Trang 8Vietnam are all rising exports, increased imports and reduced labor for Vietnam, anegative effect to insurance services will reduce about 25% of labor.
Aquatic products: FTA does not cause big impact, but in the short runproduction of Vietnam will decrease Production will increase for most ASEANcountries, except Vietnam However, due to Vietnam's exports to the EU will increaseand with the price of EU market than many other markets should the producers wouldbenefit, while consumers will not benefit due to the price increase With theimplementation of FTA, seafood exports of ASEAN countries are producing strongfisheries will increase soon After the long-term restructuring process, exports willfocus on items with higher value, however specific level will depend greatly on theagreement on rules of origin for these products in the FTA, because some countrieshave to import raw seafood Raw material exports will decline due to her for theprocess industry
1.2 Establishment History and development of the Company
1.2.1 Overview of Van Lan Joint Stock Company
Certificate of business registration no: 0203002084 Corporation by theplanning and investment of Hai Phong city signed on 27 February 2006, theregistration level change for the third time on May 29, 2008
Head Office address: 110 Km, Highway 5, Dong Hai Ward I, Hai An district,Hai Phong city
Since March 20, 2013, Office construction company Van Lan switch back tothe new address at: room 311-312 new petroleum hotel building, at 441DaNang street, Dong Hai I Ward , Hai An district, Hai Phong city
Phone number: 0312.219.255; Corporate fax number: 0313.979.538
Charter capital: 1,650,000,000 VND
Face value of shares: 1.000.000 VND
The value paid shares: + The number of shares : 1.650 stake
+ The value of shares :1.650.000.000VND.1.2.2 Scope of Business of the Company
Transportation and freight services, passenger waterway - the road
Sales of petroleum products, construction materials, fuel, internal combustionengines, machinery, equipment, automobiles, construction machinery,
Trang 9materials, tires, automotive parts, motorcycles, drugs domestically producedtobacco, wine, beer, soft drinks, candy
Business and mining
Business, processing and aquaculture - seafood
Recycling of scrap, waste
Production of agricultural products - native products, handicrafts, textiles,paper, leather, animal feed, fertilizers, materials, machinery, equipment, tools,technology information
Business services, travel, dining restaurants
Construction of civil, industrial, transportation, public
Freight forwarding services, customs brokerage
Services export goods
In fact, the main line of business of business is business freight services 1.2.3 Business Process freight
Signing contracts with freight transport lessee
Perform freight
Transportation of goods: Goods deemed to have been delivered to the shippingcompany to be computed from the received enough goods company, tocomplete the procedures and give tenants transportation bill send commodities
Check the name and status of goods; Sealing goods
Store products in transit
Delivery to the consignee
1.3 Analysis of the impact of positive and negative of VEFTA to enterprises in Vietnam in general, Van Lan Joint Stock Company in particular.
1.3.1 Reason for choosing Van Lan Joint Stock Company to research topics
Van Lan Joint Stock Company is import-export business, specializing in thefield of automobiles and auto parts, and food processing FTA is negotiated, so theunknown will exclude what However the rate in terms of macro, until the year 2015,
2020 and 2025 Through the subdivision for agriculture, industry, services, tariffpolicy of the EU for goods exported from Vietnam have specific changes Thebranches are likely to benefit the most include textile and garment, footwear, foodprocessing However, the degree of expansion of production capacity to meet rising
Trang 10demand by the EU of a number of items that will decide the overall increase onexports have significantly or not; service areas according to the expectations alsoexpanded significantly and can increase performance for the entire economy If there
is no such intensive review will not see the tremendous impact because the EU is thelargest export market of Vietnam
Even so, VEFTA would still be considerable pressure to the country'sexporters The EU market is quite rigorous in asking about the quality of the product,the origin of goods, sanitary epidemiological, labor standards and But if you look
on the positive side, this is an opportunity to convert the production platform,encouraging clean technology investments, improve competitiveness and corporateresponsibility So, besides its positive effects, the VEFTA still poses for businessesnot small challenges, including the Van Lan Joint Stock Company The business ofthe company is one of the main subjects under the influence of VEFTA, with a directimpact to the business
1.3.2 Analysis of the positive impact and negatively on the competitiveness ofenterprises Vietnam when Vietnam to join the free trade agreements Vietnam - EU(VEFTA)
a) The positive impact:
First, if VEFTA was signed, the EU will waive tariffs for most products
exported from Vietnam, bringing an important comparative advantage for Vietnam'sgoods with other competitors store information on the EU market, reduces the risk ofnot being entitled to preferential tariff regulation (GSP) Vietnam tariff reductionfollow FTA between the two sides also benefit if EU exports of goods and technology,raw materials, trade, service,etc, High quality in Vietnam, in the long termcontribute to increase capacity competition for Vietnam business; Vietnam on theother hand will also improve the legal framework in non-commercial areas better
Second, benefits from VEFTA should be viewed from many different aspects,
not just in the balance of import and export Even after the FTA, if Vietnam became anet importer in trade relations with the EU (an unlikely possibility), this is also goodfor Vietnam when can supply high quality and durable replacement than focusingimported goods of poor quality, outdated technology from one country today