EVFTA and EVIPA bring great and balanced benefits to both Vietnam and EU

VCN - Talking with Customs Newspaper, Vu Anh Quang, Ambassador Extraordinary and Plenipotentiary of Vietnam to the Kingdom of Belgium, Grand Duchy of Luxembourg, Head of the Vietnamese Delegation to the European Union (EU) said that the Vietnam-EU Free Trade Agreement (EVFTA) and the Vietnam-EU Investment Protection Agreement (EVIPA) will bring about great and balanced benefits for both Vietnam and the EU; helping Vietnam promote economic restructuring, creating conditions for Vietnamese enterprises to participate more deeply in global value chains.
evfta and evipa bring great and balanced benefits to both vietnam and eu EVFTA makes Vietnam more attractive to EU investors: German media
evfta and evipa bring great and balanced benefits to both vietnam and eu EVFTA to boost logistics industry development
evfta and evipa bring great and balanced benefits to both vietnam and eu Exporters warned of potential trade barriers under EVFTA
evfta and evipa bring great and balanced benefits to both vietnam and eu
Vu AnhQuang, Ambassador Extraordinary and Plenipotentiary of Vietnam to the Kingdom of Belgium, Grand Duchy of Luxembourg, Head of the Vietnamese Delegation to the European Union (EU).

Mr. Ambassador, how do you assess the relationship between Vietnam and the EU today, especially on trade and investment? Are those results commensurate with the potential of Vietnam and the EU?

Vietnam is one of the Asia-Pacific countries with extensive cooperation with the EU; is the second ASEAN country with a Comprehensive Partnership-Cooperation Agreement (PCA) with the EU; is the first ASEAN country to sign a Defence-Security Cooperation Agreement with the EU, a Partnership Agreement on Forest Law Enforcement, Forest Governance and Trade. Notably, Vietnam is the second ASEAN country to sign the new generation EVFTA and EVIPA on June 30, 2019.

Economics, trade and investment are always the focus of Vietnam - EU relations. Vietnam is the second largest trading partner of the EU in ASEAN and the EU is Vietnam's second export market. Two-way trade has increased every year; in 2018 it exceeded 54 billion euros (over US$60 billion). The EU is currently the fifth largest foreign investor in Vietnam with a total value of $44 billion. EU investors have a technological advantage, which has contributed to the creation of new high-tech industries in Vietnam.

However, the above-mentioned results of trade and investment cooperation are not commensurate with the potential of both EU and Vietnam and there is plenty of room for both sides to strengthen cooperation and connectivity. The economic and commodity structure of Vietnam and the EU is not competitive but complementary. The potential of EU market is very large with 512 million people, per capita income of $36,580/year, total GDP of $18,800 billion, accounting for 22 percent of the world economy and bigger than the market of 11 countries participating in the Comprehensive Partnership Agreement and the Trans-Pacific Strategy (CPTPP). EU enterprises still have plenty of room to exploit the potential of Vietnam's market with more than96.2 million people, economic and living standards of the people growing rapidly andthe socio-political situation is stable. The EU being the fifth foreign investor in Vietnam is still too modest.

Both Vietnam and the EU are looking forward to EVFTA and EVIPA. According to the National Assembly's Foreign Affairs Committee, two new generation agreements can be approved by the European Parliament in the first half of 2020. What do you evaluate in terms of the feasibility of the EVFTA and EVIPA agreements being approved in the first half of next year?

Right! The EVFTA and EVIPA are very important for both Vietnam and the EU, not only for trade and investment. Therefore, both sides want the two agreements to come into effect soon.

Following the process in the European Parliament (EP), the EP's International Trade Commission is processing the EVFTA - EVIPA dossier, which is expected to vote on the two agreements on January 21, 2020 and submit to the EP. The EP is expected to review and vote to ratify the 2 Agreements in February 2019. I hope the EP will complete the procedure for ratifying the two agreements in the first quarter of 2020. I understand the National Assembly of Vietnam is also planning to ratify EVFTA and EVIPA agreements at the May 2020 meeting.

After taking effect, which opportunities will EVFTA and EVIPA bring to Vietnam, especially in terms of promoting exports ofgoods and attracting investment?

The EVFTA and EVIPA will bring great and balanced benefits for both Vietnam and the EU, not only economically but also in politics, society and environment; not only for enterprises but also for workers and consumers. Of course, the benefits of trade and investment are huge, because Vietnamese and EU economic products are complementary. The EVFTA, with the removal of 99 percent of tariff barriers, will create new opportunities and advantages for Vietnamese goods to increase access to the EU market, which is our second largest export market now.

The EVIPA will make EU enterprises reassuredto increase investment in Vietnam, especially strong EU industries such as high technology, clean energy, automation, finance-banking, transportation-ports, infrastructure andlogistics. The two agreements will help Vietnam promote economic restructuring, change the growth model, increase competitiveness, and create conditions for Vietnamese enterprises to participate more deeply in global value chains.

The EU is a "strict" market and the EVFTA and EVIPA are new generation deals, with many strict terms that Vietnam must overcome. Could you please evaluate the preparations of Vietnam and recommendations for policy makers and the Vietnamese business community to make best use of the opportunities provided by these agreements?

The World Trade Organization and the EU assess them as "new generation, comprehensive" agreements, linked to "social, labour and environmental standards". The EVFTA has a high level of commitment compared to the FTAs that we have signed, such as rules of origin of goods and customs, food safety, intellectual property, legal-institutional issues andsustainability.

Ministries, branches and business associations have researched and organized many workshops to inform and exchange about the opportunities and challenges of the EVFTA and EVIPA. Following the EU commitment, the National Assembly passed the revised Labor Code in November 2019, acceded to the International Labor Organization (ILO) Convention in June 2019, offered a roadmap for accession two basic conventions on remaining labour.

The EVFTA and EVIPA are two new generation comprehensive agreements, so to make good use of opportunities, policy makers should integrate their implementation into Vietnam's Socio-Economic Development Strategy in the 2021-2030 period, the socio-economic development programme in the 2021-2025 period, associated with the policy of restructuring the economy towards inclusive development, bringing benefits to enterprises and workers (such as creating more jobs, increasing income and improving working conditions), so that people are the main beneficiaries of the EVFTA and EVIPA agreements.

evfta and evipa bring great and balanced benefits to both vietnam and eu EVFTA gains in telecoms and banking

Even though a bigger lift in foreign ownership cap could become a driving force to lure further ...

In addition to policy making, creating a favourable business environment by the State, the role of business associations is very important, such as supporting access to information on markets, industries, investment and supporting connect, helping Vietnamese enterprises reduce costs, especially small and medium enterprises. Besides taking the initiative to seize opportunities, Vietnamese enterprises should be aware that to export goods to the EU market, with product quality, enterprises need to fulfill their social responsibilities, ensure labour standards and environmental protection as the EVFTA has prescribed.

By Anh Hong-Thanh Nguyen (recording)/ Binh Minh

Related News

Sustainable production will bring advantages to Vietnamese pepper and spices

Sustainable production will bring advantages to Vietnamese pepper and spices

VCN - Adjusting production and adapting to new requirements is key for Vietnam to maintain its leading position in the international market of pepper and spices.
The capital of wooden furniture exports has many opportunities for breakthroughs

The capital of wooden furniture exports has many opportunities for breakthroughs

VCN - More than 1,200 wood processing and exporting enterprises in Binh Duong are enjoying many favorable conditions and active support from management agencies to boost production and product export.
Vietnamese businesses in the face of the wave of international e-commerce platforms: Benefits and challenges

Vietnamese businesses in the face of the wave of international e-commerce platforms: Benefits and challenges

VCN - In the context of the increasingly vibrant e-commerce market in Vietnam, the emergence of international e-commerce platforms with attractive incentives is creating a new wave for consumers. However, this development not only brings benefits but also poses many challenges for Vietnamese businesses, especially small and medium enterprises.
Revising policies to adapt to two-way impact of FTAs

Revising policies to adapt to two-way impact of FTAs

VCN - One of the most obvious positive impacts of Free Trade Agreements (FTAs) is to promote export growth, thereby contributing to increasing state budget revenue. However, the implementation of FTAs ​​also has a negative impact on state budget revenue under commitments on tariff reduction and elimination.

Latest News

Seafood exports expected to exceed $10 billion in 2025: expert

Seafood exports expected to exceed $10 billion in 2025: expert

The achievement of the $10 billion export milestone in 2024 is attributed in part to efforts to open and strengthen connections with key markets such as the US and the EU.
Top 10 Reputable Animal Feed Companies in 2024: Efforts to survive the challenges of nature

Top 10 Reputable Animal Feed Companies in 2024: Efforts to survive the challenges of nature

VCN - In the Report announcing the Ranking of Top 10 Reputable Animal Feed Companies in 2024 on December 12, 2024, Vietnam Report Joint Stock Company said that Vietnam's animal feed industry has faced many challenges from natural disasters and epidemics. But overcoming all, the industry continues to survive and has confidence in the future.
Vietnam's import-export surges 15.3%

Vietnam's import-export surges 15.3%

Vietnam's total import-export turnover reached 745 billion USD as of December 14, marking a robust 15.3% growth compared to the same period in 2023, according to the General Department of Vietnam Customs.
More Vietnamese firms interested in Saudi Arabia: Ambassador

More Vietnamese firms interested in Saudi Arabia: Ambassador

An increasing number of Vietnamese enterprises are showing interest in Saudi Arabia, particularly in the sectors of Vietnam's advantages and the Middle East country's needs, a diplomat has said.

More News

“Give and Take” in the Value Chain of the CPTPP Market

“Give and Take” in the Value Chain of the CPTPP Market

VCN - Vietnamese businesses have many opportunities and advantages if they take advantage of resources from imports and technology transfers when joining the supply chains of FDI companies within the CPTPP.
Binh Dinh province works to attract investment from Japan

Binh Dinh province works to attract investment from Japan

The People’s Committee of Binh Dinh province on December 18 inked a cooperation deal with the Japan - Vietnam Friendship Association of Sakai city as part of the south-central province’s efforts to attract more investment and development resources from the Northeast Asian country.
Agricultural, forestry and fishery exports “reach the target” early

Agricultural, forestry and fishery exports “reach the target” early

VCN - According to a report from the Ministry of Agriculture and Rural Development, the export turnover of agricultural, forestry and fishery products in November 2024 is estimated at US $5.3 billion, up 13.9% compared to November 2023. It is notable that it not only “reaching the finish line” early, the agricultural sector also exceeded the annual plan by over US $ one billion.
Thailand remains Vietnam’s biggest trading partner in ASEAN

Thailand remains Vietnam’s biggest trading partner in ASEAN

The activities conducted by the Vietnam Trade Office in Thailand in 2024 have enriched the trade and investment relations between the two countries, contributing to helping Thailand maintain its position as Vietnam's largest trading partner in the Association of Southeast Asian Nations (ASEAN), according to Le Huu Phuc, Vietnam's Trade Counsellor in Thailand.
Rubber value soars in 2024: VRA

Rubber value soars in 2024: VRA

All Vietnam's rubber’s top 15 export markets saw growth in export values in 2024, with Malaysia recording the highest increase, expanding fivefold, followed by Sri Lanka at 3.7 times, according to the Vietnam Rubber Association (VRA).
Vietnamese businesses struggle to access green finance

Vietnamese businesses struggle to access green finance

VCN - Green finance is gradually becoming an indispensable tool in Vietnam to support businesses, promote sustainable development, and move towards the goal of Net Zero. However, the path to accessing green capital is full of barriers, especially for small and medium enterprises.
E-commerce: a gateway to boost Vietnamese commodities in the UK market

E-commerce: a gateway to boost Vietnamese commodities in the UK market

E-commerce stands out as a promising channel to further enhance Việt Nam’s trade presence in this dynamic market.
Agro-forestry-fisheries exports top 62 billion USD in 2024

Agro-forestry-fisheries exports top 62 billion USD in 2024

Vietnam’s agro-forestry-fisheries exports are projected to reach over 62 billion USD in 2024, and continue to grow next year, heard at a conference in Ho Chi Minh City on December 16.
Removing “bottlenecks” for digital transformation in industrial production

Removing “bottlenecks” for digital transformation in industrial production

VCN - Although implementing digital transformation towards smart production creates many opportunities, it also poses significant challenges for businesses, especially in terms of investment costs and human resources.
Read More

Your care

Latest Most read
Seafood exports expected to exceed $10 billion in 2025: expert

Seafood exports expected to exceed $10 billion in 2025: expert

The achievement of the $10 billion export milestone in 2024 is attributed in part to efforts to open and strengthen connections with key markets such as the US and the EU.
Top 10 Reputable Animal Feed Companies in 2024: Efforts to survive the challenges of nature

Top 10 Reputable Animal Feed Companies in 2024: Efforts to survive the challenges of nature

VCN - In the Report announcing the Ranking of Top 10 Reputable Animal Feed Companies in 2024 on December 12, 2024, Vietnam Report Joint Stock Company said that Vietnam's animal feed industry has faced many challenges from natural disasters and epidemics.
Vietnam's import-export surges 15.3%

Vietnam's import-export surges 15.3%

Vietnam's total import-export turnover reached 745 billion USD as of December 14, marking a robust 15.3% growth compared to the same period in 2023, according to the General Department of Vietnam Customs.
More Vietnamese firms interested in Saudi Arabia: Ambassador

More Vietnamese firms interested in Saudi Arabia: Ambassador

An increasing number of Vietnamese enterprises are showing interest in Saudi Arabia, particularly in the sectors of Vietnam's advantages and the Middle East country's needs, a diplomat has said.
“Give and Take” in the Value Chain of the CPTPP Market

“Give and Take” in the Value Chain of the CPTPP Market

Vietnamese businesses have many opportunities and advantages if they take advantage of resources from imports and technology transfers when joining the supply chains of FDI companies within the CPTPP.
Mobile Version