FTA helps promote Vietnam – EU trade, investment ties: Gov’t report

The total import-export turnover between the two sides witnessed a surge of 11.9% to reach US$54.6 billion against the same period from last year.

In detail, Vietnam’s exports to the EU rose 11.3% year on year to US$38.5 billion, while its imports from the EU bloc also increased 12.4% year on year to US$16.2 billion.

The opening seven months of 2021 alone saw their two-way trade expanded 18% to US$32.4 billion, including US$22.8 billion worth of Vietnamese exports, up 17% year on year, and US$9.6 billion worth of its imports, up 18.9%.

As of September, the EU had 2,242 valid projects valued at US$22.24 billion in Vietnam, thereby accounting for 6.57% of project numbers and 5.58% of total investment capital by countries and territories in the Vietnamese market.

Most notably, a number of large EU corporations are operating effectively in the country, including Shell Group of the Netherlands, Total Elf Fina of France and Belgium, Daimler Chrysler of Germany, in addition to Siemens and Alcatel Comvik of Sweden.

Typically, their investment projects focus on high-tech and service industries, clean energy, supporting industries, food processing, high-tech agriculture, and pharmacy.

In the medium and long term, FDI inflows from the EU into the country are projected to increase significantly with several high-quality projects, according to the Government report.

However, the issuance rate of certificate of origin (C/O) for a number of key Vietnamese export products, such as textiles, coffee, iron and steel to EU member states remains relatively modest.

For instance, the C/O issuance rate for textile products in the first seven months of this year stood at approximately 15.7%, while the rate for both coffee and iron items was at 9%.

At present, only 38 out of 63 provinces and cities nationwide conduct import-export activities with EU member states.