The growth of Vietnam’s exports to the EU has recovered, from minus 1.8% in 2020 to 14.2% in 2021 and 16.8% last year. (Photo: VietnamPlus) Hanoi (VNA) – Despite numerous difficulties and adverse impact of the COVID-19 pandemic, Vietnam has still promoted integration into the global economy. In particular, the EU - Vietnam Free Trade Agreement (EVFTA), coming into force in August 2020, has created more momentum for the country to perfect the institutional capacity to meet new requirements in the new context.
The assessment was made at a workshop held in Hanoi on October 27 to release a report reviewing the three-year implementation of the EVFTA. The event was organised by the Central Institute for Economic Management (CIEM) within the framework of the Macroeconomic Reforms/Green Growth Programme, implemented by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ).
Nguyen Anh Duong, head of CIEM’s General Research Department, said the EVFTA has helped accelerate the recovery of Vietnam’s exports to the EU, especially in the first two years since it took effect.
Trade between Vietnam and the EU, excluding the UK, tended to expand in terms of value and partnership, with the respective annual export and import growth rates of 10.5% and 6.4% on average. Notably, the Southeast Asian country’s exports to this bloc have bounced back, from a contraction of 1.8% in 2020 to increases of 14.2% in 2021 and 16.8% in 2022, statistics show.
The October 27 workshop launching the report that reviews the three-year implementation of the EVFTA (Photo: VietnamPlus) Meanwhile, investment flows from the EU to Vietnam have improved considerably. With many tariff incentives and the removal of barriers to market entry in various fields, the EVFTA has made it easier for EU investors to access and expand investments in the Southeast Asian nation, according to the report.
The EU investments in Vietnam have increased after the COVID-19 pandemic, with the Netherlands, France, Luxembourg, Germany, Denmark, and Belgium being the biggest investors, Duong went on.
At the same time, the pact has played a role in promoting institutional reform, he said. Analysis shows that such fields as trade, investment, intellectual property, sustainable development, financial services, and public procurement have seen many regulation adjustments. Most legal documents and rules have been aligned with the commitments in the EVFTA.
Proposals focus on the creation of an optimal business environment, the intellectual property right protection, sustainable development initiatives, and the rationalisation of processes. (Photo: VietnamPlus) To maximise benefits from the EVFTA amid Vietnam’s economic institutional reform and international integration, the report set out several policy recommendations. These included reviewing and perfecting legal rules and documents during the deal implementation to fulfill Vietnam’s commitments. It suggested the consideration of the higher-level adjustment of domestic policies compared to the commitments if necessary.
Authorities from the central to grassroots levels should enhance coordination and step up communications to popularise the EVFTA among businesses, especially small- and medium-sized ones, further improve the investment and business climate, and enhance the competitiveness of businesses and the whole economy.
Ministries and agencies should conduct reforms, increase trade promotion activities, and review and simplify regulations and procedures on granting certificates of origin to exporters, the report said.
At the workshop, experts also investigated lessons in the EVFTA implementation during 2020 - 2023. Proposals focus on intellectual property rights protection, sustainable development initiatives, and the rationalisation of financial services and public procurement processes in line with the EVFTA./.
