TÜV Rheinland Blog - Insights from Asia and Africa

Positive Impact of EU-Vietnam Free Trade Agreement for Exporters

Posted by TUV Rheinland on Dec 14, 2020 10:00:00 AM
TUV Rheinland

An exclusive interview with Dr. Nguyen Ba Hoai Anh, Country Manager, TÜV Rheinland Vietnam

The EU-Vietnam free trade agreement has opened up many opportunities for Vietnamese exporters, especially in the textile and footwear industry. Since it came into force from 1st August 2020, TÜV Rheinland has helped many local companies gain a competitive advantage and achieve growth in this short period of time.

Amidst his busy schedule, Dr. Hoai Anh, Country Manager of TÜV Rheinland Vietnam, has agreed to this interview to share his insights of the impact of the EU-Vietnam free trade agreement on businesses in Vietnam.


Q: How can customers and community benefit from testing, inspecting, and certification of TÜV Rheinland?

As a reputable independent Testing, Inspection and Certification (TIC) organization with nearly 150 years of experience, we provide services at each stage of the manufacturing - from research & development of products to building and implementing management systems, across the entire supply chain.

As an expert in quality assurance, TÜV Rheinland has accumulated many years of technical experience in testing for consumer goods such as textiles, footwear, toys, food-contact products, packaging, furniture, and electrical and electronic products.

Understanding that customers will be more inclined to use products which comply with safety standards and manufactured in a responsible manner, businesses will gain a competitive advantage over their competitors as they will be able to demonstrate their commitment to product safety, high product quality and environmental sustainability.


Q: What are the long-term benefits that manufacturers for textile, leather, and shoes can gain from investing in testing and certification with TÜV Rheinland?

Testing and certification provide the independent inspection that the company's products and processes comply with both global and local regulatory requirements. And this translates into a great advantage for companies in the textile and footwear sector to demonstrate their measures to assure related stakeholders that they produce a safe and sustainable product.

In addition, TÜV Rheinland provides companies with a competitive advantage to protect their brand and establishes trust and transparency with all stakeholders including respected government bodies. Within businesses, managers can identify opportunities that increases their profits and protects their benefits.


Q: The EU-Vietnam Free Trade Agreement, which has been in effect from August/2020, is expected to create many opportunities for manufacturers of textile, leather, and shoes. Can you share your thoughts about this event? As a leading testing provider, how can TÜV Rheinland provide more competitive advantages to Vietnamese exporters when we enter EVFTA?

According to the Vietnam Ministry of Industry and Trade (MOIT), in terms of exports, EVFTA is expected to increase Vietnam's exports to the EU by 42.7% in 2025 and 44.37% in 2030 as compared to no Agreement.

Export growth of some industries, such as textiles and footwear, to the EU is expected to achieve high growth rates.

According to data from the Ministry of Industry and Trade, it is forecasted that the textile and garment exports to the EU market will increase rapidly at about 67% by 2025 as compared to the scenario without the Agreement. Generally, in terms of output, EVFTA has a positive impact on output with a growth rate of 6% (for the textile industry) and 14% (for the garment industry) by 2030. Further, the growth rate of exports to the EU is forecasted to double by 2025 for the footwear industry. Also, the total leather footwear exports will increase by about 34%, and the industry output will increase at 31.8%.

Thus, there is a wide range of opportunities for Vietnamese textile and footwear enterprises to expand and develop to Europe. TÜV Rheinland prepares Vietnamese businesses for opportunities by providing comprehensive testing and certification services through a network of experienced professionals worldwide.

In addition, TÜV Rheinland Vietnam has also invested in 3 modern laboratories that are in accordance with international standards (e.g. ISO 17025). With these laboratories and a team of experienced experts, it will support businesses by ensuring safety, quality standards, and health, and at the same time, complying with local regulations. Vietnamese enterprises are assured of focusing on production when working with third parties like TÜV Rheinland that provides independent testing and testing services.


Q: 2020 has witnessed many events globally, especially the Covid-19 pandemic. In your opinion, what are the challenges that companies will be facing in terms of adapting to the new normal? How will TÜV Rheinland stand side-by-side with companies in these challenges?

The COVID-19 pandemic made whirlwind on the production industry and import-export not only in Vietnam but all over the world. Many economists also assert that businesses will be facing changes and adapting to the new normal environment.

The breaking of the supply chain, especially for the textile, garment, and footwear industries, has caused significant losses to many enterprises who are deeply involved in the production network. However, in a challenging period, there are always opportunities. Businesses need to improve their competitiveness and refresh themselves to find new directions aiming towards sustainable development. Besides, businesses need to comply with standards and regulations to develop a sustainable and adaptive market in a new normal.

TÜV Rheinland Vietnam always accompanies the development of the business. As the independent and reputable 3rd party in quality certification, we provide assurance that your products comply with the standards and requirements of the industry and market, and help businesses save costs and time when doing testing in Vietnam.


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