Open AccessThe potential impacts of the EVFTA on Vietnam’s exports of agricultural products: an application of SMART model
Author(s) -
Duc Manh Doan,
Dac Hieu Nguyen
Publication year - 2021
Publication title -
international economics and management
Language(s) - English
Resource type - Journals
ISSN - 2615-9856
DOI - 10.38203/jiem.021.2.0028
Subject(s) - agriculture , european union , tariff , business , international trade , agricultural economics , international economics , natural resource economics , economics , ecology , biology
The study aims to identify and analyze the impact of the European Union - Vietnam Free Trade Agreement (EVFTA) on Vietnam’s exports of agricultural products. The secondary data from the World Bank and the SMART model under two scenarios are applied. The simulations suggest that the tariff elimination would result in a significant increase in Vietnam’s agricultural exports. The exported value of fish products from Vietnam shows the highest increase. In one scenario, as the European Union (EU) lowers the tariff to other competing countries, Vietnam’s exports of agricultural products exhibit minor reductions compared to the other scenario. Through examining the slight reduction and the revealed comparative advantage of Vietnam, it is found that crustaceans, mollusks, and other aquatic invertebrates are among the agricultural export products of Vietnam that potentially take the most advantage from the EVFTA.