The EU-Vietnam free trade agreement (EVFTA) should be considered alongside other agreements to evaluate the opportunities and challenges it brings about, thus aiding the renovation of Vietnam’s growth model, economists have said.
Experts at a March 5 seminar in Ho Chi Minh City remarked that Vietnam wants to spur export and lure more investment through the agreement in order to open itself up to the region and the world.
However, they are concerned about non-tax measures imposed by the EU, and suggested Vietnam gather more consultations before making decisions regarding these EU regulations while enhancing its capacity to fulfill new requirements.
EU procedures should be publicised among businesses interested in the ongoing negotiations in a bid to accelerate export and raise competitiveness, they said.
Pham Thi Lan Huong, an expert of the European Trade Policy and Investment Support Project (EU-MUTRAP), proposed Vietnam increase its import of machinery, equipment and materials from the bloc to take advantages of its high-technology.
Apart from tax advantage, it is necessary for Vietnam to pay more attention to the agreement’s impact on attracting foreign investment, heightening production and business capacity and generating jobs, she said.
Le Trieu Dung, deputy head of the Multilateral Trade Policy Department under the Ministry of Industry and Trade, said most of agreements Vietnam has signed only focus on tax reduction and commercial priorities, not the renovation of the growth model or the improvement of the business environment and economic efficiency.
Claudio Dordi, technical assistance team leader of EU-MUTRAP , said the EU is placing more importance on such issues as origin of products, intellectual property rights, competitiveness policies, the recognition of product quality and the settlement of disputes in trade agreements it sign with other partners. The bloc also emphasizes the importance of sustainability and environment factors in such agreements, he said.
Truong Dinh Tuyen, former minister of trade and now an expert from EU-MUTRAP, said the EVFTA is a comprehensive and high-quality agreement meeting the standards set by the World Trade Organisation (WTO).
Along with goods, services and technical barriers, Vietnam’s commitments will target investment, Government procurement, sustainable development and renewable energy, he said.
A report released by EU-MUTRAP reveals that the EVFTA is expected to promote investment and technological renovation, thus increasing productivity while expanding the service sector.
Garments and textiles, footwear and food processing sectors will benefit most from the pact, the report said, adding that however, whether exports will increase or not depends on the level of improvement in production capacity.
The 28-member EU market has a gross domestic product (GDP) of about 18 trillion USD, making up 22 percent of the global figure.
The bloc’s total outbound investment accounts for nearly 40 percent of the global FDI while it receives 20 percent of foreign investment.
Vietnam’s export turnover to the bloc - the country’s leading importer - grows about 15-20 percent on average each year.
The EU is also Vietnam ’s second largest official development assistance (ODA) supplier and the country’s largest non-refundable aid supplier. Between 2007 and 2013, the bloc provided 5.2 billion USD in ODA to Vietnam , of which 43 percent was non-refundable aid-VNA
Experts at a March 5 seminar in Ho Chi Minh City remarked that Vietnam wants to spur export and lure more investment through the agreement in order to open itself up to the region and the world.
However, they are concerned about non-tax measures imposed by the EU, and suggested Vietnam gather more consultations before making decisions regarding these EU regulations while enhancing its capacity to fulfill new requirements.
EU procedures should be publicised among businesses interested in the ongoing negotiations in a bid to accelerate export and raise competitiveness, they said.
Pham Thi Lan Huong, an expert of the European Trade Policy and Investment Support Project (EU-MUTRAP), proposed Vietnam increase its import of machinery, equipment and materials from the bloc to take advantages of its high-technology.
Apart from tax advantage, it is necessary for Vietnam to pay more attention to the agreement’s impact on attracting foreign investment, heightening production and business capacity and generating jobs, she said.
Le Trieu Dung, deputy head of the Multilateral Trade Policy Department under the Ministry of Industry and Trade, said most of agreements Vietnam has signed only focus on tax reduction and commercial priorities, not the renovation of the growth model or the improvement of the business environment and economic efficiency.
Claudio Dordi, technical assistance team leader of EU-MUTRAP , said the EU is placing more importance on such issues as origin of products, intellectual property rights, competitiveness policies, the recognition of product quality and the settlement of disputes in trade agreements it sign with other partners. The bloc also emphasizes the importance of sustainability and environment factors in such agreements, he said.
Truong Dinh Tuyen, former minister of trade and now an expert from EU-MUTRAP, said the EVFTA is a comprehensive and high-quality agreement meeting the standards set by the World Trade Organisation (WTO).
Along with goods, services and technical barriers, Vietnam’s commitments will target investment, Government procurement, sustainable development and renewable energy, he said.
A report released by EU-MUTRAP reveals that the EVFTA is expected to promote investment and technological renovation, thus increasing productivity while expanding the service sector.
Garments and textiles, footwear and food processing sectors will benefit most from the pact, the report said, adding that however, whether exports will increase or not depends on the level of improvement in production capacity.
The 28-member EU market has a gross domestic product (GDP) of about 18 trillion USD, making up 22 percent of the global figure.
The bloc’s total outbound investment accounts for nearly 40 percent of the global FDI while it receives 20 percent of foreign investment.
Vietnam’s export turnover to the bloc - the country’s leading importer - grows about 15-20 percent on average each year.
The EU is also Vietnam ’s second largest official development assistance (ODA) supplier and the country’s largest non-refundable aid supplier. Between 2007 and 2013, the bloc provided 5.2 billion USD in ODA to Vietnam , of which 43 percent was non-refundable aid-VNA
