Vietnam's EU deals imperil Thai trade

[Viet]

Thai-made vehicles await shipment at Laem Chabang port in Chon Buri. The government says automotive suppliers should prepare for many car makers to relocate manufacturing facilities to Vietnam.



Thai exports of cars, computers and electric circuits are at risk from Vietnam's trade and investment deals with the EU, says the Trade Policy and Strategy Office.

Thailand has no free trade agreement (FTA) with the EU, which cut the Generalized System of Preferences for Thailand in 2015, so all Thai export products are subject to EU tariffs.

The European Union-Vietnam Free Trade Agreement (EVFTA) and the EU-Vietnam Investment Protection Agreement (EVIPA) were signed on June 30 in Hanoi with an effective period in 2019.

"This FTA is the most ambitious and comprehensive that the EU has made with a developing country," said Pimchanok Vonkorpon, the office's director-general. "So Vietnam can gain more advantages and benefits than Thailand from both agreements."

In the EVFTA, there is a reduction of customs duties for both territories. Vietnam's tariffs will decline for 65% of EU products, then for all the remainder within 10 years.

The EU will enjoy reduced tariffs on 71% of Vietnamese products, with the remainder getting tariff reductions within seven years.

"The EVFTA covers 99% of exported products from both territories," Ms Pimchanok said.

Under the EVIPA, the EU will help Vietnam develop in terms of investment, law enforcement and transparency in order to attract investment flows.

Ms Pimchanok said automotive suppliers in Thailand should prepare for many car makers to relocate manufacturing facilities to Vietnam.

The local industry must improve efficiency and speed up production of new-generation vehicles, she said.

In addition, the Vietnamese government has been enforcing Decree 116 as a non-tariff barrier to Thai-made automotive products.

Ms Pimchanok said computers, related components and electric circuits also face relocation to Vietnam because the country is now competitive enough to develop its own electronics industry.

Other sectors that could see an impact include garments/textiles, jewellery/accessories, rice and processed seafood. Vietnam has lower wages than Thailand.

The Trade Policy and Strategy Office will monitor the impact of the EU-Vietnam agreements, Ms Pimchanok said.

"Thailand needs to develop skilled labourers and adopt higher technologies and innovations to add value to products and maintain competitiveness," she said.

The office is optimistic that the EU will engage in similar negotiations with Thailand because the bloc wants access to the local market's medicines, cars and alcoholic beverages.

The office said Vietnam-EU trade value in 2017 stood at US$50.43 billion, a 11.6% rise. Vietnam had a trade surplus of $26.17 billion.

Thailand-EU trade value was $44.54 billion in 2017, up nearly 11%. Thailand had a trade surplus of $2.89 billion.


https://www.bangkokpost.com/business/1707886/vietnams-eu-deals-imperil-thai-trade

 

[Viet]

Not a problem
Thailand can focus on tourism?

@somsak

 

[TNT]

Why is the west sucking up to vietnam now? I guess they see india failing to contain china and hence errect vietnam.

 

[Sharky]

Strong Thailand bhat is not helping its exports either. The bubble will burst soon.

 

[Viet]

Why is the west sucking up to vietnam now? I guess they see india failing to contain china and hence errect vietnam.

The West needs a country that can offer an alternative manufacturing base to China. They don’t want to rely on a single source for mass production, and they don’t like chinese blackmail, ether. We have a population of 100 million people. That is not small. Vietnam and the West share a common interest. By strengthening Vietnam economy, the West will strengthen Vietnamese military. That is the desired outcome.

 

[TNT]

The West needs a country that can offer an alternative manufacturing base to China. They don’t want to rely on a single source for mass production, and they don’t like chinese blackmail, ether. We have a population of 100 million people. That is not small. Vietnam and the West share a common interest. By strengthening Vietnam economy, the West will strengthen Vietnamese military. That is the desired outcome.

So in other words west wants to use vietnam to shoulder their gun against china. Which shares a border with vietnam. I see little other commonality between west and commies.

 

[fadine]

So in other words west wants to use vietnam to shoulder their gun against china. Which shares a border with vietnam. I see little other commonality between west and commies.

Your thinking is the thinking of a typical Chinese person, I think you show the wrong flag.
The trade agreement is not a privilege provided by the other party, it is an arrangement of interests between the two parties. Vietnam wishes to have it, went to EU negotiate and finally received it. It is as simple as that.

You will probably ask why China does not have such a trade agreement. It is possible that China simply does not care, or it is possible that this trade and investment agreement has a very high standard that Chinese people do not want to meet. In front of a deep river, unable to touch the stone to wade through, the Chinese will not dare to swim through. Such cowardice is not the motto of the Chinese people, is not?

 

[Viva_Viet]

Y

You will probably ask why China does not have such a trade agreement. It is possible that China simply does not care, or it is possible that this trade and investment agreement has a very high standard that Chinese people do not want to meet. In front of a deep river, unable to touch the stone to wade through, the Chinese will not dare to swim through. Such cowardice is not the motto of the Chinese people, is not?

EU require VN to have an independence labour union to protec the workers. VN can do that while CN can not, Cnese bosses like Jack Ma always force workers to work from 9 am to 9pm ( 9 9 6) ( if CN workers work only 8 hours, then Jack will not get enough profit).

Btw, everyone can see the chaos/civil war is coming to CN due to hundred million jobless Cnese get angry wt the Govt( maybe in 2023), so its time to withdraw their factories in CN before chaos...or their factories will be burned and destroyed.

CN is the next Syria, its good for selling weapons to "rebels" in HK, TW etc, not good for opening factories anymore

 

[Viet]

So in other words west wants to use vietnam to shoulder their gun against china. Which shares a border with vietnam. I see little other commonality between west and commies.

No. China is not the primary motive, Vietnam wants prosperity. That’s the primary motive. The trade pact is the tool. Like many other tools to come.

We want to export more daily stuffs as agra products to the EU. The Europeans want to sell more luxury goods to Vietnam.

We want to acquire technology.

Win win.

 

[TNT]

No. China is not the primary motive, Vietnam wants prosperity. That’s the primary motive. The trade pact is the tool. Like many other tools to come.

We want to export more daily stuffs as agra products to the EU. The Europeans want to sell more luxury goods to Vietnam.

We want to acquire technology.

Win win.

Lolz u jist said urself west will strengthen ur military, what for??? Everyone knows its china. So the west will use vietnam for its own weapons sale and to contain china. If it fails, vietnam is destroyed n west will find a new pony. Simple as that.

 

[vi-va]

Lolz u jist said urself west will strengthen ur military, what for??? Everyone knows its china. So the west will use vietnam for its own weapons sale and to contain china. If it fails, vietnam is destroyed n west will find a new pony. Simple as that.

Vietnam is too smart to be used as cannon fodder, just pretend to be fooled and milk the West.

No ASEAN countries are willing to be cannon fodder. US colonized Philippines and still have huge influence, Philippines almost did it in 2016, but Duterte just stopped it. How disappointing.

As time go by, ASEAN countries see more and more Chinese destroyers and aircraft carriers, we will have real peace and harmony in this region.

China has zero interest to pick a fight with ASEAN countries or any other neighbors.

 

[Viet]

Vietnam is too smart to be used as cannon fodder, just pretend to be fooled and milk the West.

No ASEAN countries are willing to be cannon fodder. US colonized Philippines and still have huge influence, Philippines almost did it in 2016, but Duterte just stopped it. How disappointing.

As time go by, ASEAN countries see more and more Chinese destroyers and aircraft carriers, we will have real peace and harmony in this region.

China has zero interest to pick a fight with ASEAN countries or any other neighbors.

The same can be said:

As time go by, China and ASEAN countries see more and more Vietnamese warships and military presence, we will have real peace and harmony in this region.

Lolz u jist said urself west will strengthen ur military, what for??? Everyone knows its china. So the west will use vietnam for its own weapons sale and to contain china. If it fails, vietnam is destroyed n west will find a new pony. Simple as that.

Human life is limited. If going down why not in a Big Bang?