EVIPA ensures FDI flow in medium to long term
Foreign direct investment (FDI) is to continue flowing into Việt Nam from Europe in the medium to long-term thanks to the EU-Việt Nam Investment Protection Agreement (EVIPA), which was ratified in August last year, experts said.
A year later, two-way trade and investment have seen significant progress. Việt Nam-EU trade has increased by 11.9 per cent year-on-year to reach US$54.6 billion. By the end of September this year, EU members were running 2,242 projects in the Southeast Asian country with a total investment registered of $22.2 billion, 5.58 per cent of all foreign investment in Việt Nam.
The agreement, which focuses on the liberalisation of non-direct investments and the procedure for settling disputes between investors and the State, replaced the 20 previous bilateral investment agreements between Việt Nam and 21 EU countries.
EVIPA has been designed to strengthen the protection of investments of both parties by ensuring a high level of security and to commit both sides to the principle of non-discrimination and the rejection of any expropriation without prompt and adequate compensation.
Investment from the EU has been said to play a vital part in the development of Việt Nam's domestic industries through cooperation and integration with and into the global supply chain. It has also been expected to be a driving force for a rapid digital transformation for the developing economy.
There was still, however, a lot of ground to cover on Việt Nam's part if the country was to take full advantage of the agreement, experts said.
Vietnamese policymakers must be fully prepared to implement prudent monetary and financial policies as soon as the agreement comes into effect as it'd help save time and reduce opportunity costs for both sides, said Prof. Andreas Stoffers, national director of the Friedrich Naumann Foundation for Freedom in Việt Nam, a German foundation for liberal politics.
Việt Nam must stay committed to international trade agreements including the European Union – Việt Nam Free Trade Agreement (EVFTA) and the Regional Comprehensive Economic Partnership (RCEP), two major trade pacts which Việt Nam is a part of, to ensure Việt Nam's position as an attractive destination for foreign investments, he said.
The country must continue improving on labour relations and labour dispute resolution, industrial and logistics infrastructure as well as human resources and product quality standards, experts said.
Việt Nam must take the initiative in adopting the latest technologies to improve efficiency and productivity to meet European standards.
Meanwhile, Vietnamese policymakers and businesses should conduct extensive studies of the EVIPA and European laws and customs to avoid potential legal disputes in trade and investment activities in the future. — VNS
Related News
Meets standards to attract FDI into supporting industries
15:40 | 24/03/2024 Import-Export
Bright spots at the beginning of the year
10:51 | 23/03/2024 Headlines
Adaptive, fundamental, and synchronous solutions to improve the effectiveness of attracting FDI
09:52 | 26/03/2024 Headlines
Creating breakthrough solutions to attract large-scale FDI projects
09:36 | 21/03/2024 Import-Export
Latest News
ASEAN, RoK agree on transposition of AKFTA product specific rules
15:00 | 28/03/2024 Import-Export
Opportunities for digital technology businesses to go global
14:58 | 28/03/2024 Import-Export
Vietnam, China eye stronger border trade
14:57 | 28/03/2024 Import-Export
Improve competitiveness and sustainable development of the seafood industry
09:51 | 28/03/2024 Import-Export
More News
Business environment reform needs further promotion: expert
14:47 | 27/03/2024 Import-Export
Singapore is the largest foreign investor in VN in Q1
14:43 | 27/03/2024 Import-Export
Thai Binh boosts investment, trade cooperation with Germany
14:38 | 27/03/2024 Import-Export
Lifting obstacles to develop industrial parks
10:24 | 27/03/2024 Import-Export
Unlock capital flows and create favorable conditions for investors
10:22 | 27/03/2024 Import-Export
More than 300 businesses, manufacturers to attend VGMF 2024
15:55 | 26/03/2024 Import-Export
Connecting with FDI firms helps boost wood exports: insiders
15:52 | 26/03/2024 Import-Export
Doosan Vina exports nearly 2,000 tonnes of modules to US
15:51 | 26/03/2024 Import-Export
Wood processing enterprises strive to increase the proportion of individually designed goods
09:50 | 26/03/2024 Import-Export
Your care
ASEAN, RoK agree on transposition of AKFTA product specific rules
15:00 | 28/03/2024 Import-Export
Opportunities for digital technology businesses to go global
14:58 | 28/03/2024 Import-Export
Vietnam, China eye stronger border trade
14:57 | 28/03/2024 Import-Export
Improve competitiveness and sustainable development of the seafood industry
09:51 | 28/03/2024 Import-Export
Business environment reform needs further promotion: expert
14:47 | 27/03/2024 Import-Export