The bilateral trade between Viet Nam and Northern Europe has yet to exceed the US$1 billion mark as there are shortcomings in trade promotional activities. — VNA/VNS Photo Danh Lam

HCM CITY (Biz Hub) — Product quality is the key to the North European market, including Finland, trade experts told businesses at a workshop in HCM City late last week.

In addition, it is advisable for Vietnamese businesses to make full use of the European Union's Generalised System of Preferences as most domestic exporters lack a thorough understanding of the system.

The bilateral trade between Viet Nam and Northern Europe has yet to exceed the US$1 billion mark as there are shortcomings in trade promotional activities.

According to Nguyen Tuan Hai, Deputy head of the VCCI's Department of International Relations, Vietnamese exports have great potential in Northern European countries as they have huge demands for farm and aquatic produce.

However, Le Ky Anh, Economics and Trade Officer of the Delegation of the European Union to Viet Nam, said these countries, including Finland, are choosy markets that have many strict demands for quality, food safety, and hygiene, together with environmental protection and green growth standards, including those related to women or child workers.

He stressed that businesses should be more proactive in improving their product quality and market study.

Deputy head of the Economics and Trade Section at the Delegation of the European Union to Viet Nam Jana Herceg noted that the up-and-coming Free Trade Agreement (FTA) between the European Union and Viet Nam is expected to exert strong impacts not only on trade but also on foreign investment interests, technological transfer, economic reforms, and restructuring.

In order to optimise the benefits of the deal, Viet Nam should make good preparations and adopt specific strategies to integrate into the global economy, she recommended.

With commitments made on many key issues, the two sides recently concluded the 7th round of negotiation on the bilateral FTA.

Under the Viet Nam-European Union trade pact, 95 per cent of the tax line will be reduced and a free trade zone will be established.

The workshop was held by the Viet Nam Chamber of Commerce and Industry, the Finnish Embassy in Viet Nam, and the Finnish Ministry of Foreign Affairs' Finnpartnership programme, with a goal to promote the trade between Viet Nam and Northern Europe. — VNS