Opportunity awaits EU- Vietnam FTA

The conference attracted more than 100 Government representatives from a wide range of ministries, government authorities and provinces in addition to European embassies.

A large contingent of leading European business leaders and companies were also in the audience, reflecting the strong interest of the business community of both societies in Vietnam and the trade treaty.

In a keynote speech, H E Bruno Angelet, ambassador-head of the EU Delegation, said the treaty represents an important milestone in the bilateral commercial, economic and investment links between the EU and Vietnam.

Mr Angelet said the trade agreement between the two economies and societies evidences the EU's commitment to Southeast Asia and represents an important building block towards an eventual similar region-to-region treaty with the Association of Southeast Asian Nations (ASEAN).

Dr Vu Tien Loc, president and chair of the Vietnam Chamber of Commerce and Industry (VCCI) in turn spoke about the future impact of the agreement both for Vietnamese and foreign companies.

Mr Loc also announced the signing of a strategic cooperation agreement between the European Chamber of Commerce in Vietnam (EuroCham) and VCCI to facilitate giving effect to the treaty.

In addition, other speakers shared their insights and thoughts about the prospects for enhanced trade, investment, growth and employment with the audience.

They said the import tariff scheme currently in place between the two economies is to be largely phased out over a seven to ten-year period, which should provide a boon for business interests on both sides. 

The treaty was intended to help trigger a new wave of high quality investment in both directions, they said, supported by an updated permanent investment dispute resolution system.

As to the types of investment we would most likely see in the future as a result of the new treaty they said to expect heavy involvement from EU companies in large-scale privatizations of Vietnamese State-owned enterprises. 

The European Commission (EC) is already promoting the new deal by noting that EU companies will be able to bid for public contracts with Vietnamese ministries including for infrastructure such as roads and ports, power distribution companies, railways, and 34 public hospitals.

British investors, in particular, are poised to become involved in the metro rail project for Ho Chi Minh City and massive pavement projects scheduled for roads across the country.

EU mining companies will look to invest in Vietnam’s largely undeveloped mineral resources, especially bauxite (a key raw material necessary for the production of aluminum).

For many in the EU and Vietnam, opportunity awaits.