Vietnam and the EU have many conditions for strong economic and trade cooperation.

According to Deputy Minister Nguyen Hoang Long, Vietnam and the EU face many favorable conditions to develop economic , trade and investment cooperation on a solid foundation.

On the afternoon of November 7, in Ho Chi Minh City, the Vietnam - EU Cooperation Forum 2024: "Adaptation efforts for a sustainable prosperous future" took place, an event organized by the Ministry of Industry and Trade .

Speaking at the forum, Deputy Minister of Industry and Trade Nguyen Hoang Long shared that over the past years, despite many difficulties and challenges from the pandemic, geopolitical instability, and trade conflicts in the international arena, the EU has maintained its growth rate and position as Vietnam's leading partner in the fields of trade and investment; actively contributing to the socio-economic development, integration and energy transition in Vietnam. That achievement cannot fail to mention the turning point that the EVFTA Agreement brought about more than 4 years ago and is clearly demonstrated through trade statistics.

“Since the EVFTA came into effect, we have witnessed a positive shift in the market structure, not only maintaining and developing exports to large markets and gateways in the Bloc such as the Netherlands, Germany, Belgium, Spain, but also gradually expanding to small markets and niche markets in Eastern Europe, Northern Europe, and Southern Europe with an average double-digit growth rate, typically Ireland (54.4%/year), Czech Republic (43.5%), Bulgaria (33%), Luxembourg (31.5%), Portugal (11.7%), Denmark (8.9%)...” , Deputy Minister Nguyen Hoang Long said.

Deputy Minister Nguyen Hoang Long spoke at the Vietnam - EU Cooperation Forum 2024: "Adaptation efforts for a sustainable prosperous future".

At the same time, the structure of export goods to the EU market is also increasingly diversified, not only focusing on key products but also promoting the export of many other industrial and agricultural products. In addition, Vietnam also increased the import of many products from the EU, especially raw materials for production.

Deputy Minister Nguyen Hoang Long also said that the preferential tariff reduction under the EVFTA also significantly contributes to helping Vietnam and the EU improve their competitiveness and expand their market share in each other's markets. Vietnam is currently in the Top 10 largest suppliers of non-bloc goods to the EU and is the EU's largest trading partner in ASEAN. In the opposite direction, the EU is also the 5th largest supplier of goods to Vietnam.

Along with that, it is undeniable that the EVFTA is one of the FTAs ​​that brings the most positive results among the new generation FTAs ​​that Vietnam has participated in. EVFTA creates a great competitive advantage for Vietnam when currently only 4 Asian countries have signed FTAs ​​with the EU, in ASEAN there are only Vietnam and Singapore.

Vietnam's goods export turnover to the EU in 2023 - 2024.

“As one of the first new-generation FTAs ​​that the EU has signed and implemented with a developing country, EVFTA not only brings Vietnam opportunities to expand trade and diversify markets, but more importantly, it also supports economic restructuring, improves the business and investment environment, and takes advantage of cooperation with the EU in new and important areas such as green economy, circular economy, energy transition, sustainable development, etc. These are areas of strength and focus in the EU's policy. At the same time, it is also consistent with current development trends, as well as the orientations of Vietnam's socio-economic development strategy,” Deputy Minister Nguyen Hoang Long affirmed.

Deputy Minister Nguyen Hoang Long also emphasized that Vietnam is striving to pursue a green growth roadmap, aiming at sustainable national development and realizing commitments at COP26. In the process of realizing this goal, state resources play a guiding role, thereby leading and attracting the participation of the private sector and foreign investment. External resources play a very important supporting role from the perspective of capital, technology and governance.

In recent times, Vietnam has received high-quality investment from the EU with advanced technology projects, creating common values ​​and benefits for the business communities of both sides. The EU is currently the 6th largest foreign investor in Vietnam with 2,625 projects, total registered capital of 29.9 billion USD accumulated up to September 2024, accounting for 6.08% of total registered FDI capital in Vietnam, according to data from the Ministry of Planning and Investment.

It is worth mentioning that with incentives from EVFTA, along with Vietnam's economic development orientations, EU investors have come to the Vietnamese market not only for the consumer market or as a springboard for development in ASEAN markets as well as countries with FTAs ​​with Vietnam, but also because of the policy of prioritizing the development of green energy and low emissions, of which the Lego Group's investment decision is a typical example.

According to Deputy Minister Nguyen Hoang Long, Vietnam and the EU face many favorable conditions to develop economic, trade and investment cooperation on a solid foundation.

According to Deputy Minister Nguyen Hoang Long, the EU is currently a leading partner with strong commitments and actions in the green transformation, adaptation to global climate change and has made great strides. With rich experience and practice, along with the technological and financial potential of the EU, Vietnam wishes to promote investment attraction, technology transfer, and support projects from EU partners to promote economic restructuring towards green and sustainability, including the use of clean energy, renewable energy, high-tech transformation in production, helping Vietnamese goods meet EU regulations, technical and environmental standards, deeply participate in sustainable supply chains, and benefit the EU.

“The two sides are facing many favorable conditions to develop economic, trade and investment cooperation on the solid foundation of the comprehensive partnership and great advantages from the EVFTA and the upcoming EVIPA,” Deputy Minister Nguyen Hoang Long emphasized.

However, Deputy Minister Nguyen Hoang Long also said that to anticipate and realize new opportunities also poses many challenges, requiring great determination and efforts from both the Government and the business community, especially in the context of the international situation still evolving complicatedly and unpredictably, especially regional and global geopolitical instabilities that have not shown signs of cooling down, posing many risks of economic recession, high inflation, and increasingly urgent energy and food security issues. The global economic transition continues to be strongly promoted, requiring Vietnam - a highly open economy, to quickly adapt, proactively participate in restructuring new supply chains, and become an important link in the global value chain.

According to the General Department of Vietnam Customs, after 4 years of implementing the EVFTA, two-way trade turnover between Vietnam and the EU has continuously increased from 48.9 billion USD the year before the Agreement came into effect to 63.7 billion USD in the 4th year of the Agreement coming into effect, with an average growth rate of 7%/year; in which exports to the EU market increased by an average of 8.7%/year, imports from the EU market increased by an average of 2.8%/year. The EU is currently the third largest export market and the fifth largest import market of Vietnam.

Source: https://congthuong.vn/thu-truong-nguyen-hoang-long-viet-nam-va-eu-co-nhieu-dieu-conditions-de-hop-tac-kinh-te-thuong-mai-vung-chac-357426.html