Nguyen Thi Thu Trang, Director of the VCCI’s Centre for WTO and Economic Integration, addresses the workshop in Hanoi on October 23 (Photo: VNA) Hanoi (VNA) – The European Union (EU) – VietnamFree Trade Agreement (EVFTA) is set to have considerable impact on the futureof the financial and telecom sectors of Vietnam, heard a workshop in Hanoi onOctober 23.
At the event, Vice Chairman of the VietnamChamber of Commerce and Industry (VCCI) Hoang Quang Phong said the EVFTA,signed on June 30 this year and currently in the ratification process, includesmany notable commitments regarding financial services like banking, insuranceand securities, and telecom services.
The openness of the Vietnamese market hasalready been higher than the commitment to the World Trade Organisation (WTO),and the country has also issued many minimum standards for the State’smanagement of these services. Meanwhile, the EU has strength in financial andtelecom services. Therefore, the EVFTA is predicted to have considerableinfluence on the future of the financial and telecom sectors in the country, henoted.
Nguyen Thi Thu Trang, Director of the VCCI’sCentre for WTO and Economic Integration, said the EVFTA will not have too bigdirect impact on foreign investment in the financial sector, noting thatreinsurance ceding service is the only new one to be opened for foreigninvestment under the pact, while the commitment level is unchanged compared tothat in the WTO.
Under the EVFTA, no more new areas in thetelecom sector will be opened for foreign investment, and the commitment level wouldalso not change much in the first five years of the agreement’s enforcement.After that, the sector’s openness to foreign investment would be higher thanthe commitment to the WTO.
Trang noted the financial sector’s businessclimate will become more stable and predictable while the telecom market willalso be more stable and transparent thanks to commitments in the trade deal.
Indirect impact of the EVFTA will include higherservice demand, better business environment, and chances created for investmentin EU economies and for cooperation with EU partners.
Aside from opportunities, many economic sectorsof Vietnam, especially the financial and telecom sectors, will also facestronger competition from foreign service providers. Additionally, clients’requirements for services will increase. Challenges relevant to IT application,information security and transaction safety will also be part of the indirectimpact of the EVFTA, according to the centre director./.
VNA
