The free trade agreement between the European Union (EU) and Vietnam opens up new opportunities for Vietnamese business in the optics, photonics, and analytical and medical technology sectors, the trade association Spectaris is pleased to report: The agreement, which came into force on August 1, 2020, immediately abolishes customs duties on 65 percent of all EU exports to Vietnam.

With few exceptions, the remaining customs duties are to be dismantled over a period of ten years. In addition, European companies will be able to participate in public tenders organised by the Vietnamese ministries, major state-owned companies, 34 public hospitals and the two largest Vietnamese cities of Hanoi and Ho Chi Min City. In addition, the agreement contains a separate chapter with a catalogue of commitments on human rights, worker protection and environmental standards.

Export of camera technology to Vietnam is booming

In particular, exports of optical components, which amounted to around EUR 163 million in 2019, grew by a good 15 percent compared to the previous year.  In the camera and photographic technology sector, German exports boomed with exports amounting to around EUR 5 million and an increase of around 58 percent compared to the previous year. And Vietnam also offers promising business opportunities for German and European manufacturers in medical technology with exports amounting to around 112.4 million euros and a growth rate of almost 10 percent, as well as in analytical, bio and laboratory technology with exports amounting to around 77.8 million euros and a plus of 3 percent. However, imports also increased significantly last year: The German ophthalmic optics industry has discovered Vietnam as a sourcing market, which means that imports increased by around 26 percent in 2019.

The emerging middle class in Vietnam is growing continuously. This goes hand in hand with an increasing demand for medical products, but also for camera and photographic technology. Vietnam is also increasingly investing in its healthcare, infrastructure and industry. High-tech solutions for medical care, optical components and laboratory technology for the food, agricultural and textile industries are in demand here.