At the Vietnam-EU business forum held in HCM City on November 27 (Photo: VNA) Director General Ta Hoang Linh of the Ministry of Industryand Trade’s European-American Market Department said after the pandemic andongoing political instabilities accelerating the supply chain shift, manyglobal partners, including the EU, are actively diversifying their supplysources and choosing Vietnam as a strategic destination in the Indian Ocean-Pacific.
The EU is currently the third-largest export market and thefifth-largest import market of Vietnam. Meanwhile, Vietnam has surpassedSingapore to become the largest trade partner of the EU in ASEAN and ranks11th among the biggest commodity suppliers to the bloc.
According to customs statistics, two-way trade was valued at USD 62.24 billion USD last year, up 9.2% year-on-year, withVietnam's exports to the EU reaching 46.82 billion USD, an annual rise of 16.7%. In the third quarter of 2023, bilateral trade turnover stoodat 15.12 billion USD, down 1.5% year-on-year. However, this decline isconsidered temporary, as the slowdown has significantly eased and the EU'seconomy is gradually recovering.
Linh added that the EU-Vietnam Free Trade Agreement (EVFTA)has effectively supported the sides’ goods in accessing each other's markets,meeting their diversification needs.
President of EuroCham Vietnam Gabor Fluit stressed thatVietnam's strong commitment to the EU standards in sustainability will be a keydriver attracting FDI, particularly from Europe.
Compliance with new market regulations from the bloc,especially the Carbon Border Adjustment Mechanism (CBAM) and the CorporateSustainability Due Diligence Directive (CSDDD), requires significant investmentfrom Vietnam in modernising infrastructure, advancing green technology, and developinghuman resources, he noted.
Nguyen Quoc Khanh, CEO of Research and Development at Vinamilk, shared that theVietnamese dairy firm has long implemented a circular economy model, taking it as essential. In the near future, not only Europe but most of the global markets willdemand products to meet green and sustainable standards, and companiesfailing to comply will struggle to compete.
Investment issues are the main challenge for most of the businessesin the green production transition. However, it can be said that the benefitsgained will outweigh the costs of conversion, Khanh said./.
VNA
