Vietnam and the European Union (EU) are intensifying their investment and trade connections, driven by a bilateral free trade agreement. The EU has committed to supporting Vietnam in the implementation of this agreement.
Bernd Lange, the Chairman of the European Parliament’s (EP) Committee on International Trade, visited Vietnam for the sixth time in four years to oversee the country’s execution of the EU-Vietnam Free Trade Agreement (EVFTA). His visit included an evaluation of the performance of local organizations responsible for overseeing FTA implementation and related policies in Vietnam.
Lange stated, “Vietnam is the EU’s most important partner in the ASEAN. The remarkable trade growth supported by the EVFTA reflects their enormous potential for development cooperation. The EVFTA has produced positive effects on both sides, with increased trade and investment flows.” He confirmed that the EP will continue to support Vietnam in the deployment of the EVFTA.
Since the EVFTA took effect in August 2020, bilateral trade between Vietnam and the EU has surged by 20%, with Vietnam boosting its exports to the EU.
Lange reported, “About 71% of tariff lines for Vietnamese exports to the EU have been removed so far, while 65% of tariff lines for EU goods exported to Vietnam have also been liberalized.”
Julien Guerrier, Ambassador and Head of the European Delegation to Vietnam, mentioned that the EVFTA has enhanced Vietnam’s attractiveness to EU and non-EU investors. The EU is the sixth-largest foreign direct investment partner of Vietnam out of 144 countries and territories.
Guerrier stated, “Despite the global nearshoring trend where investors tend to reduce their geographically distant investments and bring them back closer to their home countries, EU investors continued to pour an additional $810 million into Vietnam during January-September 2023.”
Data from the Ministry of Planning and Investment reveals that the EU has a total investment stock of approximately $28.3 billion in Vietnam, involving around 2,450 projects. The total trade between Vietnam and the EU is estimated to reach $59.1 billion last year, with the country’s export and import turnover of $44.1 billion and $15 billion, respectively.
Marko Walde, Chief Representative of AHK Vietnam – Delegation of the German Industry and Commerce in Vietnam, Myanmar, Cambodia, and Laos, highlighted Vietnam as a dynamic destination for foreign investors. German companies increasingly recognize the vast opportunities it offers, with mergers and acquisitions becoming a prominent strategy for entering and expanding in the Vietnamese market, according to Walde.