"As a major entity in the Southeast Asia, Vietnam becomes the first place of the EU mission for growth in their working trip to some of ASEAN countries namely Thailand and Myanmar. The trip is aimed to promote investment and do market survey so Vietnam needs to show EU investors its competitiveness to reinforce the determination of EU investors when choosing Vietnam as an investment destination," said Mr Preben Hjortlund, Chairman of the European Chamber of Commerce in Vietnam (EuroCham ) at the “EU - Vietnam Business Forum and Trade Exchanges" held by the Vietnam Chamber of Commerce and Industry, Ho Chi Minh City Branch (VCCI – HCM) in collaboration with the EU mission to Vietnam.
Speaking at the Forum, Director of VCCI - HCM Vo Tan Thanh assessed that the potential for cooperation between Vietnam and the EU was still very abundant, especially in the export sector. However, Mr Thanh noted that the EU market is very strict, so Vietnam has to ensure exports goods quality as well as the time of delivery, the products must ensure environmental requirements: clean, green and social responsibilities.
Appreciating the efforts of Vietnam in economic development and building regulatory system related to trade and investment, Mr Preben Hjortlund said Vietnam was an important partner of the EU in the ASEAN, the potential market for the EU’s export and investment, and also an important gateway for EU to penetrate into the ASEAN market.
Sharing of the EU investment direction in the coming time, Mr Preben Hjortlund said that different from investment form of shifting production to countries with cheap labour and full of risk, in the future, the EU businesses will focus on direct investment in each sector in the form of a joint venture with Vietnam businesses as well as helping reinforce the links between the two side businesses.
According to Mr Antonio Tajani, Vice President and Commissioner for Enterprise and Industry of the European Commission, with vitality and the dynamics in markets, the EU small and medium enterprises have contributed to the economic development. So if they expand investment cooperation in Vietnam, this business group may propose useful initiatives in many fields, bringing tangible benefits to the development of Vietnam's economy. But lately the market share of trade and investment of EU businesses in Vietnam tends to shrink against other Asian countries (Korea, Japan) because the EU small and medium enterprises face many barriers in establishing a foothold in Vietnam. Therefore, to enhance the cooperation between small and medium enterprises of the EU and Vietnam, Mr Antonio Tajani recommended Vietnam focus on improving the transparent investment environment, creating a fair playing field for investors, especially small and medium investors.
After more than 20 years of diplomatic relations, bilateral ties between Vietnam - EU have improved into practical, sustainable and effective depth. In economic cooperation, the EU is one of the largest trade partners of Vietnam with two-way trade turnover increased by an average of 15-20 percent/year from US$1.5 billion (1995) to US$29 billion (2012). In September 2013, exports between Vietnam and the EU reached US$24.8 billion, an increase of 20.8 percent over the same period in 2012, in which Vietnam exported more than US$17.8 billion, up 25.1 percent. It’s expected that the total bilateral trade will reach the US$32-33 billion in 2013.
In October 2010, Prime Minister Nguyen Tan Dung and EC President José Manuel Barroso announced the start of negotiating a bilateral free trade agreement between Vietnam and the EU (VEFTA) after completing technical issues. So far, negotiations for VEFTA have undergone 5 sessions (the 5th negotiating session took place from 4 – 8, November 2013 in Hanoi) and the target was agreed by the leader of Vietnam and the EU to try to complete the negotiations by the end of 2014, especially preceding Oct 2014 for a formal declaration on the occasion of 10th Asia - Europe Meeting (ASEM 10) taking place in Oct 2014 in Milan, Italy.
Particularly, in terms of cooperation in the field of investment, there are 23 out of 28 EU member states having investment projects in Vietnam. As of September 2013, the EU member countries had invested in Vietnam more than valid 1,800 investment projects with the total registered capital of over US$32.8 billion and implemented capital of US$13,101 billion.
The EU - Vietnam Business Network Centre was opened in Ho Chi Minh City. The centre is expected to be a bridge supporting the business community to overcome obstacles, successful penetrate into the Vietnam market and expand into other countries in the region.
The establishment of The EU - Vietnam Business Network Centre is also one of the program marking the launch of the "Project to support European businesses to find investment opportunities in Vietnam and Asia" by EU mission and the France’s Chamber of Commerce & Industry in Vietnam.
Thanh Tan
Vietnamese
