HCM City forum fosters Vietnam – EU cooperation

The forum placed a strong emphasis on sustainability in Vietnam – EU partnership, with a focus on tackling non-tariff barriers and trade defense measures, and adapting to new policy regulations. It aimed to guide businesses on how to align with emerging regulations, and explore potential avenues for cooperation in sectors that keep pace with current global trends, such as green economy, digital economy, circular economy, and energy transition.

In his opening speech, Vietnamese Deputy Minister of Industry and Trade Nguyen Hoang Long emphasized the EU’s role as a key partner for Vietnam in trade and investment. He highlighted the importance of the EU-Vietnam Free Trade Agreement (EVFTA) and the impending EU-Vietnam Investment Protection Agreement (EVIPA), which provide significant opportunities for enhancing bilateral cooperation. The agreements are pivotal for driving economic restructuring towards green and digital economies, particularly in energy transition and high-tech manufacturing.

Long also acknowledged the positive trade growth between the two sides, noting that despite the global economic challenges, cooperation has been strengthened. With the support of EU projects and technology transfer, Vietnam aims to align its industries with EU standards, ensuring its integration into global value chains and achieving sustainable economic growth.

Taking the floor, Julien Guerrier, the EU Ambassador to Vietnam, appreciated the EVFTA’s role in enhancing bilateral cooperation. He particularly highlighted the EU’s commitment to energy transition, citing the Just Energy Transition Partnership (JETP) as a key mechanism for supporting Vietnam’s emission reduction targets.

This corresponds with both the EU’s energy transition goals and Vietnam’s broader socio-economic development plans, he stated.

Meanwhile, Nguyen Xuan Thang, vice president of EuroCham, praised Vietnam’s competitive advantages in green transition, particularly its abundant renewable energy potential. He expressed optimism about the country’s growing attractiveness for investment, noting its efforts in pursuing a green economy and sustainable development.

Speakers at the forum also explored various challenges posed by the current global economic climate, which remains vulnerable to risks and instability. They emphasized the growing trend towards greener, more sustainable trade standards, citing policies like the Carbon Border Adjustment Mechanism (CBAM), the EU Deforestation Regulation (EUDR), and the Corporate Sustainability Due Diligence Directive (CS3D), all of which are expected to significantly impact trade and investment between the two regions.

While these new regulations present challenges, they also offer opportunities for businesses to enhance sustainability and corporate responsibility, which in turn can help increase the value and branding of export products.

Representatives from companies like Dong A Steel, Viettel Post, and H&M shared their experiences in sustainable growth strategies, smart logistics solutions, and supply chain support programs, demonstrating the practical implementation of green initiatives in business operations.

Organized by the Ministry of Industry and Trade, the Vietnam – EU Cooperation Forum aims to foster interactions between government bodies and businesses from both sides. It provides a platform for discussing policies, market updates, and opportunities for business connections, particularly in light of current global trends such as green economy and energy transition.

The forum also focuses on enhancing cooperation in areas like supply chain integration, trade facilitation, and sustainability practices, which are central to future economic growth for both Vietnam and the EU.

According to the General Department of Vietnam Customs, two-way trade between Vietnam and the EU has steadily increased after four years of implementing the EVFTA. Trade volume rose from US$48.9 billion before the agreement came into effect to US$$63.7 billion in 2023, representing an average annual growth rate of 7%.

Currently, the EU is Vietnam’s third largest export market and fifth largest import market.