The Head of the EC delegation to Vietnam Ambassador Sean Doyle said that the Vietnamese leather shoe industry continued to develop strongly despite being subject to an anti-dumping tax by the EU.

In 2007, the leather shoe industry hit a record earning of 1.97 billion Euros in export turnover to the EU market.

Positive results were also achieved in Vietnam’s seafood exports to the EU. Vietnamese businesses are gaining a foothold in the European market despite the demanding standards. This shows that Vietnam has been successful in devising development strategy, said Mr Doyle.

Most countries in the world are now facing challenges due to the food crisis and price rises in oil, petroleum and other essential goods. However, as Vietnam is the world’s large food exporter, it will still be able to export agricultural products at reasonable good prices.

Some Vietnamese businesses have been worried about rumours that the EU would not apply the Generalised System of Preferences on footwear products, which would greatly affect export turnover. However, the EC representative said that this would provide an opportunity for Vietnamese businesses to create high quality products at more competitive prices.

In the face of the recent economic fluctuations such as the soaring inflation rate and trade deficit, the Vietnamese Government has adjusted its policies in a reasonable and correct manner.

If Vietnam reaches a GDP growth rate of 7 percent in 2008, this will remain a high growth rate compared to other countries in the world and the Vietnamese Government’s policy will have been proved correct, said Mr Doyle.

Vietnam should play a more active role in negotiating the Free Trade Agreement (FTA) between the EU and ASEAN and push for an early signing of the agreement. The move will offer good opportunities for ASEAN businesses including those from Vietnam to take full advantage of the EU’s large 500 million-consumer market and stable tax policy.

Regarding Vietnam’s economic development policy, the EC has recommended that Vietnam should enhance its protection of intellectual property right in order to attract more foreign investment in the high-tech sector.

According to Mr Doyle, the protection of intellectual property is a matter that particularly concerns foreign investors, especially EU investors when investing in high-technology projects in Vietnam.