EVFTA shows European investors' confidence in Vietnam: EuroCham

The EU - Vietnam Free Trade Agreement (EVFTA) has strengthened Vietnam's attractiveness for European investors, stated a survey by the European Chamber of Commerce in Vietnam (EuroCham) on July 31.

At a garment and textile company in Vietnam (Photo: VNA)

At a garment and textile company in Vietnam (Photo: VNA)

The EU - Vietnam Free Trade Agreement (EVFTA) has strengthened Vietnam's attractiveness for European investors, stated a survey by the European Chamber of Commerce in Vietnam (EuroCham) on July 31.

According to the EuroCham Business Confidence Index (BCI) survey conducted by Decision Lab, released as the EVFTA approaches the fourth anniversary of its entry into force on 1 August 2024, the EU, already a major investor in the country, has poured 28 billion EUR (nearly 30.3 billion USD) into 2,450 projects, underscoring its continued confidence in Vietnam's potential.

Notably, EU investors have added 800 million EUR in foreign direct investment between January and September 2023, bucking the global trend of declining FDI.

The EVFTA has also significantly boosted Vietnam’s exports to Europe, surging from 35 billion EUR in 2019 to over 48 billion EUR in 2023, with growth particularly being pronounced in sectors such as electronics, textiles, footwear, agriculture, and seafood, the survey said.

However, it noted that the increase in EU exports to Vietnam has been far more modest, rising from 11 billion EUR to only 11.4 billion EUR over the same period, adding to a substantial trade imbalance.

The BCI survey said that the EVFTA has undoubtedly opened doors for European businesses, but challenges remain. However, it also pointed out a number of obstacles that European businesses face in fully leveraging the EVFTA, including complex regulatory requirements and a lack of recognition for international standards by local authorities.

Additionally, a lack of understanding of the agreement among the stakeholders, combined with customs valuation issues and opaque clearance procedures, complicate trade, technical barriers, particularly in the areas of certification and product testing, also remain a significant hurdle, it said.

According to Chairman of EuroCham Vietnam Dominik Meichle, the survey shows that while progress has been made, challenges remain. He stressed the importance to continue working on simplifying procedures, aligning standards, and ensuring everyone understands how the EVFTA works.

EuroCham is committed to cooperating with relevant stakeholders to streamline regulatory compliance, advocate for greater recognition of international standards, and develop comprehensive education and awareness programmes on the EVFTA, EuroCham Vice Chairman Jean-Jacques Bouflet said.

It will also continue to push for solutions to technical barriers to trade, particularly in certification and testing, and advocate for further tariff reductions and streamlined customs procedures, he added.

EuroCham Vietnam is actively championing the full ratification of the EU-Vietnam Investment Protection Agreement (EVIPA) as a critical step in unlocking the full potential of the EVFTA for attracting foreign direct investment. Meanwhile, EU institutions have already given their approval, the EVIPA still requires inpidual ratification from all 27 EU member states, therefore EuroCham Vietnam is working tirelessly with European stakeholders to encourage the remaining states to follow suit.

Thue Quist Thomasen, CEO of Decision Lab, stated the findings highlight that while the EVFTA is a powerful tool for economic growth, its success hinges on continued efforts to address regulatory complexities, technical barriers, and awareness gaps. He stressed that a targeted approach to support businesses, particularly SMEs, in navigating these challenges is crucial./.

Source: VNS
en.vietnamplus.vn

Related News

Latest News

Foreign investors flock to invest in southern provinces and cities

Foreign investors flock to invest in southern provinces and cities

Foreign investors have recently rushed to southern Vietnamese provinces and cities to look for investment opportunities and locations.
New step in tracing seafood origin, meeting export requirements

New step in tracing seafood origin, meeting export requirements

VCN - Using the electronic seafood traceability application (eCDT VN) will help seafood exporting enterprises more conveniently apply for export product traceability documents (SC, CC). This will help the Vietnamese seafood industry better adapt to the trend of international integration and the demand for transparency in seafood origin of the export market.
Việt Nam

Việt Nam's pangasius exports expected to reach $2b in 2024

Pangasius export turnover in the first ten months reached $1.56 billion, an increase of 8.9 per cent over the same period in 2023.
VN’s first pharmaceutical industrial park to be built

VN’s first pharmaceutical industrial park to be built

Located in Thái Bình Province, the park is expected to provide jobs for 18,000 people when going into operations.

More News

Accelerating investment to meet "green" standards

Accelerating investment to meet "green" standards

VCN – Many businesses are implementing large-scale investments in technology, energy transitions, and production processes to meet the increasingly stringent "green" criteria set by the EU market.
US initiates investigation into pharmaceutical capsule shells imported from Việt Nam

US initiates investigation into pharmaceutical capsule shells imported from Việt Nam

Hard capsule pharmaceutical shells from Brazil, China and India are also being investigated.
UKVFTA gives advantages to Vietnamese fishery products in the UK, urging focus on quality for further expansion

UKVFTA gives advantages to Vietnamese fishery products in the UK, urging focus on quality for further expansion

To better exploit the tariff incentives from the UKVFTA, it is necessary for Vietnamese fishery producers and exporters to focus on improving quality and supply capacity to expand market share in the UK
Agricultural, forestry and fishery trade surplus value shoots up

Agricultural, forestry and fishery trade surplus value shoots up

VCN - According to the Ministry of Agriculture and Rural Development, the total export turnover of agricultural, forestry and fishery products in the first 10 months reached 51.74 billion USD, up 20.2% over the same period in 2023. Notably, the trade surplus value recorded a spectacular increase year on year.
New export and business cooperation opportunities from "dual conversion"

New export and business cooperation opportunities from "dual conversion"

VCN - According to a recent study from NielsenIQ, 16% of Vietnamese consumers consider a sustainable future as one of the important factors in their consumption decisions.
VN

VN's food processing industry struggles to improve quality and value chain integration

Despite accounting for 19.1 per cent of Việt Nam’s processing sector, the food processing industry has been struggling with major issues such as poor-quality raw materials and subpar value chain integration, said industry insiders and economists.
Approach strategy of the seafood industry when implementing UKVFTA

Approach strategy of the seafood industry when implementing UKVFTA

VCN - As one of Vietnam's strong export industries to the UK, especially when the Vietnam - United Kingdom of Great Britain and Northern Ireland Free Trade Agreement (UKVFTA) comes into effect, with a detailed information approach strategy, it has created a great driving force to promote the export of Vietnamese seafood products to this market.
Mid-November: Vietnam

Mid-November: Vietnam's trade volume matches 2023 total, eyes record-breaking growth

VCN - By mid-November 2024, Vietnam's total import-export turnover reached an impressive US$681.48 billion, equaling the full-year trade figure for 2023
Vietnamese enterprises facing challenges from cross-border e-commerce platforms

Vietnamese enterprises facing challenges from cross-border e-commerce platforms

VCN – In recent years, with the rapid development of cross-border e-commerce (CBEC) platforms, domestic enterprises in Vietnam have been facing numerous difficulties and challenges.
Read More

Your care

Latest Most read
Foreign investors flock to invest in southern provinces and cities

Foreign investors flock to invest in southern provinces and cities

Foreign investors have recently rushed to southern Vietnamese provinces and cities to look for investment opportunities and locations.
New step in tracing seafood origin, meeting export requirements

New step in tracing seafood origin, meeting export requirements

VCN - Using the electronic seafood traceability application (eCDT VN) will help seafood exporting enterprises more conveniently apply for export product traceability documents (SC, CC). This will help the Vietnamese seafood industry better adapt to the tr
Việt Nam

Việt Nam's pangasius exports expected to reach $2b in 2024

Pangasius export turnover in the first ten months reached $1.56 billion, an increase of 8.9 per cent over the same period in 2023.
VN’s first pharmaceutical industrial park to be built

VN’s first pharmaceutical industrial park to be built

Located in Thái Bình Province, the park is expected to provide jobs for 18,000 people when going into operations.
Accelerating investment to meet "green" standards

Accelerating investment to meet "green" standards

VCN - Founded in 1998, Ton Dong A Corporation specializes in manufacturing steel and coated steel products catering to various demands, from industrial and residential construction to transportation infrastructure and home appliances.
Mobile Version