EU businesses and EVFTA opportunities

Sodex Sport is a French company located in Nha Trang city since 1991. Sodex’s CEO Alann Bouvot accepted the signing and ratification of the EU-Vietnam Free Trade Agreement and the EU-Vietnam Investment Protection Agreement as a matter of course since Vietnam-EU trade relations have thrived in recent years.

He said Vietnam has achieved rapid economic growth and stronger competitiveness. Bouvot said that after 27 years in Vietnam, he is positive about Vietnam’s investment environment. In 2017 he invested in a 15,000 square meter facility. From Vietnam his company has expanded to Cambodia, Malaysia, Indonesia, and the Republic of Korea.

Economist Alessandra Bonfigliolo of the School of Economics and Finance at Queen Mary University of London said that in addition to removing tariff barriers, the agreements offers EU businesses favorable conditions to enter Vietnam’s multi-billion euro public market, such as infrastructure and healthcare.

With skilled workers and fairly low labor costs, Vietnam is now targeting high-tech fields like telephones and electronic devices rather than garments, textiles, and agriculture. EU businesses can directly invest in Vietnam through joint ventures or new projects in beverages, tires, and construction materials.

Nguyen Hai Nam, President of the Vietnamese Business Association in France, said EU businesses have been waiting for the free trade agreement because it allows them to penetrate some of Vietnam’s lucrative sectors such as ports, hospitals, the food industry, and high-tech services.