Vietnam, EU take advantage of EVFTA

Vietnamese Minister of Industry and Trade Nguyen Hong Dien (right) and First Vice President of the Belgian Senate Andries Gryffroy - photo: Ministry of Industry and Trade

Vietnam, EU’s leading trade partner in ASEAN

The EVFTA is one of Vietnam’s first new-generation FTAs and also the EU’s first new-generation FTA with a developing country in the Asia-Pacific region.

After three years of EVFTA implementation, the value of Vietnam’s exports to the EU grew by nearly 50 percent, turning Vietnam into the EU’s leading trading partner in ASEAN. Farm products such as rice, cashew, pepper and rubber contributed significantly to this growth. Meanwhile, Vietnam’s imports from the EU also increased by more than 40 percent, with major imports including machinery, spare parts, materials and accessories for textile and garment production, leather and footwear, milk and milk products, and confectionery.

The first three years marked a significant period in EVFTA implementation, during which most of the obligations were enforced. At the meeting, Vietnam and the EU reviewed the EVFTA implementation in areas related to trade in goods, animal and plant quarantine measures, trade and sustainable development, and discussed cooperation in dealing with issues of mutual interest.

The EU’s data show that Vietnam’s exports to the EU are more than fourfold the EU’s exports to Vietnam. Due to this unsustainability, the EU requested Vietnam to further its efforts to implement the EVFTA, especially in the fields of labor - trade union, pharmaceuticals, register of automobiles imported from the EU, and approval of farm produce imported from the EU.

Promoting Vietnam-Belgium economic cooperation

On the sidelines of the third meeting of the EVFTA Trade Committee, Minister of Industry and Trade Nguyen Hong Dien had a working session with Andries Gryffroy, First Vice President of the Belgian Senate and President of the Belgian-Vietnamese Alliance (BVA). Minister Dien also had meetings with representatives of some European companies.

Minister Dien and Andries Gryffroy discussed measures to increase economic cooperation and trade between Vietnam and Belgium. Minister Dien praised the results of cooperation between BVA and Vietnamese trade promotion agencies in supporting Vietnamese and Belgian businesses.

Minister Dien requested Andries Gryffroy to urge the Belgian Senate to soon ratify the EU-Vietnam Investment Protection Agreement (EVIPA). He also requested the EC to soon remove the “yellow card” for Vietnamese seafood exports to the EU. These efforts will give a boost to bilateral economic relations, trade and investment for mutual benefit.

At his meeting with representatives of Pharos Energy, Minister Dien encouraged the company to continue expanding investment in Vietnam and coordinate with the Vietnam National Oil and Gas Group to submit specific proposals to relevant authorities for approval according to the Law on Oil and Gas to ensure investment effectiveness and harmonize the interests of all parties involved.

Addressing the Vietnam-Belgium Business Forum, Minister Dien praised the progress of bilateral economic cooperation and trade. Belgium is currently Vietnam’s sixth largest trading partner in the EU, while Vietnam is Belgium’s 18^th largest export market.

Minister Dien emphasized that efforts to increase economic cooperation and trade between ASEAN and the EU will benefit both Vietnam and Belgium.

According to Minister Dien, there’s still much room for Vietnam and Belgium to increase bilateral trade because Vietnamese and Belgian imports and exports do not compete but complement each other.

Forum participants listened to presentations on Vietnam’s international cooperation capacity and potential as well as the EVFTA’s preferences. Efforts to strengthen Vietnam-Belgium relations will encourage businesses of the two countries to expand investment in each other’s markets, contributing to increasing bilateral economic cooperation and trade for mutual benefits.