Processing tra fish at the Hung Ca Compnay in Cao Lanh city, the Mekong Delta province of Dong Thap (Photo: VNA) Hanoi (VNA) – Vietnam hasn’t had any free tradeagreements (FTAs) with EU member countries, but with the importance ofVietnam-EU relations, a bilateral new-generation FTA is critical to promotingtheir economic ties.
The remark was made by President of the VietnamAcademy of Social Sciences Nguyen Quang Thuan at an international workshop inHanoi on October 25. The event aimed to assess the country’s labour quality andsuggest policies to improve local workforce once the EU-Vietnam Free TradeAgreement (EVFTA) takes effect.
Thuan noted the EU is the second biggest tradepartner of Vietnam with bilateral trade estimated at over 45 billion USD in2016. Meanwhile, they have few commodities that directly compete with eachother.
The negotiation on the EVFTA officially finishedon February 1, 2015. The deal is expected to take effect in 2018.
Analysing its impacts, economists at theworkshop said amidst Vietnam’s strong economic integration, the EVFTA and otherFTAs have great influence as they will contribute to Vietnamese firms’development and reform and help both foreign and domestic investors to grow inmarkets with FTAs.
Trade in goods will be the most promising fieldfor Vietnam and the EU since tariff cuts will fuel export and import activitieswhich have already been thriving. To the EU, some service sectors that it is strongin such as finance-banking, distribution and transportation will benefitimmediately when the EVFTA comes into effect.
Participants noted that the commitments andregulations in the trade pact will create a more favourable business climate,helping Vietnam to perfect relevant policy system and create a solid foundationfor both sides’ businesses to capitalise on the EVFTA.
During the deal negotiation, Vietnam and the EUalso agreed on a framework for cooperation and capacity building programmes inthe areas of mutual concern. This framework will also help Vietnam build legalsystem and implement its commitments in the FTA, thereby enhancing bilateralwin-win trade and investment activities.-VNA
VNA
