EU-MUTRAP Continuing Trade Policy and Investment Support for Vietnam

The Ministry of Industry and Trade and the Delegation of the European Union to Vietnam on December 11 launched the European Trade Policy and Investment Support Project (EU-MUTRAP) which is the continuation of the successful Multilateral Trade Policy Assistance Projects (MUTRAP) and a milestone for a new and important era of cooperation between Vietnam and the European Union.

 

EU-MUTRAP has a total budget of 16.5 mil Euro, of which the EU contributes 15 mil Euro and the remaining 1.5 mil Euro is from Vietnam. The project will be implemented in 5 years (2012-2017).

 

The project operates in the context of the recently signed EU-Vietnam Partnership and Cooperation Agreement (PCA) and of the negotiations for the Vietnam – EU Free Trade Agreement (FTA). Therefore, apart from supporting Vietnam to further its integration into the global, ASEAN and sub-regional trading systems, one of the project’s main objectives is to strengthen trade and investment relations between Vietnam and the EU.

 

As pointed out by the Head of the EU Delegation to Vietnam, Mr Franz Jessen, EU-MUTRAP “will crucially accompany the process of the further integration of Vietnam in the world economy and support it throughout the Vietnam – EU FTA negotiations.”

 

The project’s main purpose is to support Vietnam in facilitating sustainable international trade and investment through improved capacity of the Ministry of Industry and Trade and relevant agencies for policy making, policy consultation, negotiation and implementation of related commitments, particularly vis-à-vis the EU.

 

According to the Minister of Industry and Trade, Mr Vu Huy Hoang - a highlight of the project, which is also a new component of this phase of MUTRAP, is technical assistance to improve the investment policy frameworks with a particular focus on the environmental and social issues in trade and investment-related policies and legislation.

 

The Minister, and the Ambassador - Head of the European Union Delegation to Vietnam, Mr Franz Jessen, confirmed their commitment to support and cooperate with relevant government agencies and stakeholders to ensure the successful implementation of this important project.

 

We commit to further promote the cooperation between EU and Vietnam, and the EU is looking for many other activities and supports to create favourable conditions for more investment from the EU in particular, and other countries, to Vietnam. Since August 2012, EU-MUTRAP has conducted important preparations for Vietnam on international integration, and we wish to see the successful cooperation of the two sides in a bid to help Vietnam improve the investment environment and economic restructuring.

 

Over the past 15 years, MUTRAP projects have been landmarks in EU-Vietnam cooperation in supporting trade and investment development. EU-MUTRAP marks a new, important cooperation stage between Vietnam and EU, especially in 2013-2018 which is considered a critical period for Vietnam, when the country is going to restructure the economy, renew the growth model, and comprehensively integrate into the world economy.  

 

The EU and the Vietnamese Government have agreed to spend more capital from EU-MUTRAP on projects conducted by business associations, research institutes, and universities in order to enhance competitive capacity and access to foreign markets for Vietnam’s products, as well as continue to call for the participation of the private economic sector in building and implementing trade and investment policies. I suggest that the project’s components need to be effectively implemented, not only in the five-year period, but also in the long run, to bring long-term benefits for Vietnam’s sustainable development and integration. 

The EU is currently one of the leading trade partners of Vietnam after 20 years of diplomatic relations. In the first 11 months of 2012, the EU was the largest export market of Vietnam, with export value of US$18 billion, up 21.3 percent over the same period last year.

 

The EU is an important partner to Vietnam, therefore, EU-MUTRAP's overall objective will focus more on trade and investment relations between Vietnam and the EU.

There are five different components and results of the project, including the improvement of EU-Vietnam trade and investment relations, and negotiation and implementation of EU VN FTA; strengthened capacity to negotiate and implement multilateral and regional trade commitments; improved investment framework, with a particular focus on environmental and social issues; access to information on Vietnam’s international trade and investment improved, increased stakeholder participation; supported EU-Vietnam dialogue in economic areas of the Partnership and Cooperation Agreement.