EU's GSP is opportunity & challenge for Vietnamese exports

28 Feb '14

2 min read

The implementation of the new Generalised Scheme of Preferences (GSP) by the EU since January 1 this year presents both opportunities and challenges for Vietnamese exports, Vietnam’s Assistant Minister of Foreign Affairs Nguyen Ngoc Son has said, according to a press release.

The Minister said this while speaking at a workshop on “The EU’s new regulation on Generalised Scheme of Preferences (GSP) – New opportunities for exports to the EU”, jointly held in Hanoi by the Ministry of Foreign Affairs, the EU Delegation to Vietnam and the Vietnam Nam Chamber of Commerce and Industry (VCCI), with financial support of the European Trade Policy and Investment Support Project (EU-MUTRAP).

Addressing the event, the Minister emphasized that “GSP rules shall facilitate Vietnam’s access to the EU market, speeding up industrialization, creation of jobs, improvement of income and contributing to economic growth.”

“However, beside advantages, the new GSP regulation might create a number of challenges which require businesses to have long-term vision and business strategy to overcome, for sustainable development, quality improvement and compliance with the EU’s requirements and standards on a number of issues such as labelling and non-toxic products,” he added.

Dr. Franz Jessen, Ambassador-Head of the EU Delegation to Vietnam, who co-chaired the workshop, said, “The strong growth of Vietnamese exports to the EU is partially due to the benefits that Vietnam products have been entitled thanks to the GSP. Since the start of 2014, some export products, including footwear, benefit from even more favourable tariffs under the new GSP, giving Vietnam’s traditional export products an additional boost.”

“It is therefore crucial for the Vietnamese Government and Vietnamese exporters to fully understand and exploit the opportunities offered by the new EU-GSP,” he added.

The workshop was the last of a series of 3 workshops, the first 2 being held in Ho Chi Minh City and Da Nang respectively in July and September 2013. These GSP workshops were aimed at providing Ministries and relevant agencies, associations and businesses throughout the country with information on the EU’s new GSP regulation applied to developing countries, including Vietnam.

The workshops also offer opportunities to exchange experience in order for Vietnamese businesses to take advantage of such preferences under the new rules to boost their exports to the EU market.

More than 120 participants from Ministries and relevant agencies, provincial departments as well as associations and businesses in Northern region took part in the GSP workshop in Hanoi.

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