27-member EU, with over half billion of consumers and income per capita of over US$21,000 a year, is a fertile market and leading partner for Vietnam. Vietnam-EU relations continue to develop and upgrade in recent years. Mr Nguyen Canh Cuong, Deputy Head of European Market Department, Ministry of Industry and Trade made such statement at the seminar “Upgrading Vietnam-EU trade relations” sponsored by VCCI-HCMC Branch and EU Federation in Vietnam.
Speaking at the seminar, VCCI-HCMC Director Vo Tan Thanh said that 2011 will mark several important events that will expand and deepen Vietnam-EU relations. One, it is the approval and ratification of the Frame agreement on Vietnam-EU partnership and all-round cooperation initialed by Prime Minister Nguyen Tan Dung and EC President Barroso in October 2010, an important milestone in Vietnam-EU cooperation. Two, concerned authorities the two sides are actively preparing for the first round of negotiation o n Free Trade Area (FTA). In addition, EU is considering a new financial mechanism when Vietnam becomes a country of average income replacing the existing mechanism that will end by 2013.
According to Mr Jean Jacques Bouflet, EU Minister Counselor in Vietnam, Vietnam-EU has great potentials for development. In capacity of ASEAN Chairmanship, Vietnam played the role of ASEAN coordinator in FTA negotiation with EU. However, in recent years, progress has not been made as expected. Therefore, in late 2009, EU decided to negotiate FTA with each member of ASEAN. By the end of this year, Singapore and EU will conclude the negotiation. For its part, EU-Malaysia FTA is in third and fourth rounds and will be concluded by mid-2012. Meanwhile EU and Vietnam have not started the negotiation. Mr Jean Jacques Bouflet recommended that Vietnamese government and EU should accelerate FTA negotiation as once FTA is signed, bilateral relations will be upgraded.
Mr Jean Jacques Bouflet also said that Vietnamese products make up nearly 20 percent of EU market share. However, Vietnamese exporters are confronted with several challenges as they do not take advantages of supporting policy and tax reduction. Therefore, Vietnam and EU should accelerate negotiation on EU-Vietnam FTA to increase efficiency of bilateral cooperation and product competitiveness so as to boost import-export value and investments.
According to Mr Nguyen Canh Cuong, Vietnamese products are under strong pressure from not only other exporters but also new EU members. While EU 15 have complementary products supporting Vietnamese industries, new EU members with EU special preferential treatment make it more difficult for Vietnamese products. Therefore, FTA is optimal solution to increase competitiveness of Vietnamese commodities in EU market.
Mr Cuong believed that in 2011, Vietnam-EU trade relations will continue to increase but not in all markets as some EU members still have certain economic problems, and both Vietnam and EU are applying austerity policy. In 2012, the bilateral trade relations will increase more significantly as EU market will recover with successful economic reform under way. For the time being, Vietnam and EU must dismantle many problems especially too high technical requirements, food safety criteria, certificates of origin regarding import products. If those problems could not be solved in FTA negotiation, they will become barriers to the efficiency of the agreement and hamper the bilateral relations.
The removal of barriers when EU and Vietnam start FTA negotiation will help Vietnam improve and develop the production and service to attract FDI. Vietnamese businesses are following with great interest the coming round of FTA negotiation and hope that satisfactory results will be achieved in mutual interests.
My Chau
Vietnamese
