New Zealand has adjusted and cut tax for some Vietnamese export items, including seafood. — VNA/VNS Photo
Viet Nam and New Zealand expect to meet a NZD2.5 billion (US$1.7 billion) bilateral trade and service turnover target this year as the two countries have many opportunities to boost economic co-operation.
According to Keith Conway, New Zealand Charge D'affaires to Viet Nam, New Zealand welcomed Viet Nam’s ratification of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) as it is an important step to improve trade rules, contributing to promoting investment and business between the two countries.
In addition, 2020 is also an important year for Viet Nam and New Zealand as the former is ASEAN 2020 Chair; the two countries celebrate 45 years of bilateral relations and New Zealand Prime Minister Jacinda Ardern will attend the ASEAN-New Zealand Leaders' Summit in Da Nang.
This will be an opportunity for leaders of Viet Nam and New Zealand to discuss and thereby propose ways to expand co-operation between the two countries, especially in trade.
Currently, both Viet Nam and New Zealand are making good progress by making full use of the CPTPP, but firms of the two countries need to raise their awareness about the agreement in order to effectively exploit opportunities.
New Zealand also proactively assists Vietnamese agencies in training and consulting in areas such as public procurement and customs.
To help bilateral trade between Viet Nam and New Zealand grow stronger, Industry and Trade Minister Tran Tuan Anh proposed New Zealand support Viet Nam in developing high-tech and clean agricultural production in association with sustainable development.
Co-operation mechanisms between the two countries, such as the Joint Trade Commission, should provide practical support to firms, Anh suggested.
According to the minister, the negotiation and signing of the Regional Comprehensive Economic Partnership (RCEP) Agreement is expected to give Vietnamese firms the opportunity to boost exports, participate in new value chains and attract foreign investment from New Zealand.
Le Hoang Oanh, director of the Ministry of Industry and Trade’s Asia-Africa Market Department, said the ASEAN-Australia-New Zealand Free Trade Area (AANZFTA) was at the end of the roadmap to eliminate tariffs so New Zealand only imposes import tariffs of 3-10 per cent on 240 product lines and aims to eliminate all import taxes in 2020.
In particular, for Viet Nam, New Zealand has adjusted and cut tax for some Vietnamese export items, including electrical and electronic equipment, computers, yarn and wool, plastic beads, apparel, footwear, construction materials, auto parts, generators, seafood, leather materials and many other consumer goods.
However, in order to increase the exports to New Zealand, Oanh recommended Vietnamese firms should pay more attention to trade promotion so as to make Viet Nam-made products more popular in the market.
According to Viet Nam’s trade office in New Zealand, Viet Nam is currently the 16th largest trading partner of New Zealand. — VNS