EU further Intensifying Trade Relations with Vietnam
The newly appointed Trade Commissioner Peter Mandelson will pay his first visit to Vietnam on April 26-27, 2005. This reflects the commitment by Europe to build on improved trade relations, to give Vietnam further support in its WTO accession process, and to encourage it to pursue an active role within ASEAN.
The visit follows a string of substantive improvements in European Union (EU)-Vietnam trade relations over recent months, culminating in the conclusion of bilateral WTO accession negotiations in October 2004 and a bilateral Agreement on Market Access agreed in December 2004. With this agreement, the EU is suspending textile and clothing quotas for Vietnam with immediate effect. This is a major gain for Vietnam, which hopes to use it to more than double exports to the EU (from USUS$0.7 billion in 2004 to USUS$1.5 billion).
In exchange, it secures early implementation by Vietnam of key elements of Vietnam’s WTO commitments, thus offering opportunities to EU companies in such sectors as distribution, environmental services and shipping.
The agreement was signed in Brussels on March 31, 2005 by Mrs Martine Schommer, Permanent Representative of Luxembourg which currently holds the Presidency of the EU, Mr Paul Vandoren, acting Director, DG Trade, European Commission, and Mrs Phan Thuy Thanh, Ambassador of the Socialist Republic of Vietnam.
The EU remains Vietnam’s the first trading partner, accounting for 13.3 per cent of Vietnam’s total trade. Vietnam’s key exports to the EU are footwear (43 per cent), garments (14 per cent), coffee (6 per cent), furniture (9 per cent) and seafood (2 per cent). Major EU exports to Vietnam are machinery (26 per cent), electrical equipment (15 per cent), aircraft and spare parts (12 per cent) and pharmaceutical products (6 per cent). The EU also remains the biggest investor in Vietnam, with over USUS$4.7 billion of aggregate implemented investment, followed by Japan with USUS$4.2 billion.
Mr Peter Mandelson will participate in the high-level meetings with the Vietnamese Government and participation in the ASEAN-EU Ministerial Consultation in Halong Bay.
In preparation for the Commissioner’s visit, the EC Vietnam Trade and Investment Working Group will convene in Hanoi on April 22, 2005 with participants from key Vietnam ministries. The main topics will be the new GSP scheme (General System of Preferences), implementation of the Market Access Agreement, trade related technical assistance, Vietnam’s bid for “market economy status” in anti dumping procedures and the EU-ASEAN cooperation framework.
“I am delighted that the Market Access Agreement has now formally come into effect - an Agreement which is a win-win deal that fully demonstrates the importance of the EU-Vietnam trading relationship. It offers key benefits to both sides, and will allow the EU and Vietnam to reinforce their position as top-level trading partners,” said Mr Markus Cornaro, Head of EC Delegation to Vietnam.
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