Illustrative photo. (Source: VNA)Hanoi (VNA) - The World Bank (WB) hasissued several recommendations to help Vietnam enhance its internationalintegration and capitalise on the EU-Vietnam Free Trade Agreement (EVFTA),which is expected to come into effect shortly.
In a recently-released report entitled “Vietnam:Deepening International Integration and Implementing the EVFTA”, the WBsuggested the country perfect its legal framework and improve its implementationcapability so as to fully reap the benefits.
The report estimated that full implementation ofthe EVFTA could increase Vietnam’s GDP by 2.4 percent, boost exports by 12percent, and lift an additional 100,000 to 800,000 people out of poverty by2030. These benefits are necessary for sustaining economic achievements while thecountry is dealing with the COVID-19 pandemic.
Benefits from its participation innew-generation FTAs such as the EVFTA and the Comprehensive and ProgressiveAgreement for Trans-Pacific Partnership (CPTPP) would be even greater ifVietnam implemented a comprehensive economic and institutional reform programme,according to the WB. These reforms would give a boost to productivity, helpingits GDP increase by a further 6.8 percent to 2030.
It also said Vietnam should promote its capacityto comply with rules of origin, sanitary and phytosanitary measures, and theState-investor dispute settlement mechanism.
The report called on the country to bolsterlinks between domestic suppliers and foreign-invested enterprises that are leadfirms in major global value chains. The EU’s strict food safety requirementsalso require that Vietnam improve sanitary and phytosanitary measures in a moretransparent and consistent manner.
Thanks to the EVFTA, Vietnam will become adestination for a number of investors from Europe and around the world, andwhen the inflow of foreign investment surges, grievances, complaints, andlawsuits will also increase, the report noted, advising that Vietnam acceleratethe development of a systemic investment response mechanism for resolvinginvestor-State disputes.
The WB also suggested that to maximise the benefits,support policies for post-COVID-19 economic recovery should prioritise keysectors that account for the majority of Vietnam’s exports to Europe./.
VNA
