1.

The requirement of LCR for Vietnamese products

Decree No. 31/2018/ ND-CP draft regulation: Goods manufactured in Vietnam and sold in
Vietnam will be impacted by the 30 percent local sourcing requirement.
Vietnam reserved the ability to apply export duties on 57 tariff lines in EVFTA, including vital
items like crude oil and coal (except coal for coking and coking coal). Vietnam agreed on export
tariff caps of 20% for tariff lines with relatively high existing export tariff rates for a maximum
duration of 5 years (except for manganese ores with a ceiling of 10 percent ). In the case of other
items, Vietnam committed to abolish export duties over a maximum of 16 years.

2. Which industry will have benefit under EVFTA?

According to a Ministry of Planning and Investment study, if the commitments on tariff and non-
tariff reductions are fully implemented, combined with some elements or factors such as trade
war, Brexit, or policy changes in other countries..., Vietnam's economic growth will improve or
bloom in the short, medium, and long term.
Some industries with strong export growth rates include:
- Agricultural and aquatic product industry: The EVFTA will provide a significant market
opportunity for Vietnamese agricultural and aquatic export items such as rice, sugar, pig, cattle
and poultry meat, drinks and tobacco, and seafood.
- Manufacturing and processing industry: It is predicted that the textile and garment industry's
export turnover to the EU market will increase rapidly by about 67 percent by 2025 compared to
the non-agreement scenario.
- For the footwear sector, Vietnam's exports to the EU will also increase significantly, with the
growth rate expected to double by 2025. Its total exports would likewise increase by around
34%, while output will climb by 31.8%.