Vietnam's exports to Europe skyrocket

August 1 marks the 4th anniversary of the EU-Vietnam Free Trade Agreement (EVFTA) coming into effect. The European Chamber of Commerce in Vietnam said that the EVFTA has strengthened Vietnam’s attractiveness to European investors. Vietnam’s exports to Europe have skyrocketed.

European Chamber of Commerce in Vietnam (EuroCham) has just announced the results of a survey with European businesses on the impact of this agreement.

EVFTA has significantly boosted export Vietnam's exports to Europe are expected to surge from 35 billion euros in 2019 to more than 48 billion euros in 2023. Growth is evident in the electronics, textiles, footwear, agriculture and seafood sectors. However, the increase in European exports to Vietnam is more modest, from 11 billion euros to 11.4 billion euros in the same period.

According to Eurocham, EVFTA has strengthened Vietnam's attractiveness to foreign investors. European investors. The European Union (EU), which is a major investor in the country, has poured 28 billion euros into 2,450 projects. Eurocham stressed the EU's confidence in Vietnam's potential.

European businesses report facing some obstacles from legal requirements (illustrative photo).

The Business Confidence Index (BCI) survey shows that the EVFTA certainly opens up opportunities for European businesses, however, challenges remain. Nearly two-thirds of survey participants said they have received benefits, but to varying degrees. However, a quarter of companies said they have not seen any benefits.

European businesses report facing a number of obstacles from legal requirements complex, local authorities do not recognize international standards.

“In addition, the parties involved do not fully understand the agreement, customs valuation issues and customs clearance procedures are not transparent, complicating trade activities. Technical barriers exist especially in the field of product certification and testing,” Eurocham said.

However, Mr. Dominik Meichle - Chairman of EuroCham Vietnam - affirms that EVFTA has certainly created new opportunities for European businesses in Vietnam.

Entering the fifth year of the agreement, Eurocham Chairman emphasized efforts to simplify procedures, unify standards and ensure everyone understands how the EVFTA works.

EuroCham representatives also said that they are actively supporting the full ratification of the EU-Vietnam Investment Protection Agreement (EVIPA). This is an important step to unlock the full potential of the EVFTA to attract FDI.

"EuroCham is committed to supporting its members to make the most of the opportunities offered by the EVFTA. We will continue to work closely with the Vietnamese authorities to Solve the challenge remains, ensuring that both European and Vietnamese businesses can take full advantage of this landmark agreement,” Mr. Meichle affirmed.

Source