Once the Vietnam-EU free trade agreement (FTA) is signed, Vietnam will need to renovate its economic policies and institutions and be prepared for agreement enforcement, noted Danish Ambassador to Vietnam John Nielsen.
Speaking at a workshop on the FTA, jointly held by the Central Institute for Economic Management (CIEM) and the Danish Embassy on June 25, Nielsen pointed out challenges accompanying the agreement, including requirements to improve product quality, competitiveness and the business and investment climate.
CIEM Director Nguyen Dinh Cung stressed that benefits brought by FTAs depend heavily on policy and institution reform to turn challenges into opportunities and opportunities into benefits. Vietnam has to modify its policies, mechanisms and institutions to increase the positive impacts and reduce negative impacts of the agreement on the economy.
Delegates also shared international experience in renovating institutions and adjusting policies as learned by developing countries when enforcing FTAs.
Vietnam and the EU started negotiations on the agreement in June 2012 and have so far undergone 12 rounds of discussions. Along with tariff cuts and trade facilitation, the two sides’ commitments include investment, the environment, competition and sustainable development.
The FTA between Vietnam and the EU, once signed, could help expand Vietnam’s GDP by 7-8 percent by 2025. Vietnam’s exports to the EU are likely to increase by 10 percent.-VNA
Speaking at a workshop on the FTA, jointly held by the Central Institute for Economic Management (CIEM) and the Danish Embassy on June 25, Nielsen pointed out challenges accompanying the agreement, including requirements to improve product quality, competitiveness and the business and investment climate.
CIEM Director Nguyen Dinh Cung stressed that benefits brought by FTAs depend heavily on policy and institution reform to turn challenges into opportunities and opportunities into benefits. Vietnam has to modify its policies, mechanisms and institutions to increase the positive impacts and reduce negative impacts of the agreement on the economy.
Delegates also shared international experience in renovating institutions and adjusting policies as learned by developing countries when enforcing FTAs.
Vietnam and the EU started negotiations on the agreement in June 2012 and have so far undergone 12 rounds of discussions. Along with tariff cuts and trade facilitation, the two sides’ commitments include investment, the environment, competition and sustainable development.
The FTA between Vietnam and the EU, once signed, could help expand Vietnam’s GDP by 7-8 percent by 2025. Vietnam’s exports to the EU are likely to increase by 10 percent.-VNA
