|
EU trade pact would boost local economy
A free trade agreement (FTA) with the European Union would create conditions for Viet Nam to increase its competitiveness, attract more foreign investment and promote exports, a senior EU official said on Wednesday.
Minister Counselor of the EU Delegation to Viet Nam, Jean-Jacques Bouflet, was speaking at a seminar titled "Scaling up VN – EU Trade and Investment Relations" held under the auspices of the European Days celebrations in HCM City.
A study carried out by the Multilateral Trade Assistance Project, Phrase III (MUTRAP III), on the potential impacts of an EU-VN FTA on the Vietnamese economy also shows positive results.
A report said exports would increase on average by four per cent per year, with key sectors like garment and textiles, footwear and furniture doing even better at more than six per cent. Export growth opportunities would be created when tariffs are cut, sometimes to zero per cent, it said.
The report said imports could increase by 3.1 per cent per year due to Viet Nam's commitments to open up the domestic market.
The country would receive a substantial amount of FDI from the EU and the quality of investment would be better, the report said. It also said that impacts on local industries, domestic prices, jobs and wages would be favourable.
Viet Nam is currently a minor partner of the EU (ranked 31st in imports and 41st in exports), and there is considerable potential to improve up on this, with a rapidly growing economy, a young population with high demand for goods and services, and an attractive and stable investment climate, the report said.
"Bilateral trade, EU's investment and professional services will strongly increase, creating more jobs for both sides and finally both GDPs will go up as FTA comes into effect," said Nguyen Canh Cuong, Deputy Director General of the European Market Department under the Ministry of Industry and Trade.
To prepare for the FTA, the Vietnamese Government should upgrade current trade law framework to meet international standards in export, import management, food hygiene, trade environment and competition management, he said.
The Government should accelerate the processes of signing bilateral agreements and increase awareness of FTA benefits, he added.
He urged businesses to consider their development strategies with EU partners, increase co-operation in technology transfer and exchange of management skills.
In the last decade, the EU was the pivotal, important trade partner of Viet Nam both in terms of trade and investment but also politically, seminar participants said. They noted that bilateral trade turnover had been growing at 15-20 per cent per year in recent years.
Today, EU is Viet Nam's second largest trade partner with two-way trade of around US$15.5 billion last year. The regional bloc is also the second largest ODA provider for Viet Nam.
vietnamnews
|
