EVFTA requires Vietnam to relax trade rules
EVFTA requires Vietnam to relax trade rules
Regulations on trade policies and climate are in need of reform and liberalization after the EU-Vietnam Free Trade Agreement (EVFTA) and the EU-Vietnam Investment Protection Agreement (EVIPA) were signed on June 30, said Vu Tien Loc, president of the Vietnam Chamber of Commerce and Industry (VCCI).
Loc told a dialogue on “EVFTA and EVIPA: Opportunities for Business,” held on July 1 by the Ministry of Industry and Trade that EVFTA is the best FTA Vietnam has ever signed, the local media reported.
The signing of the EVFTA is expected to not only ensure freedom and fairness in trading activities between the two sides, but it also creates a common outlook for the sustainable development of the two, Loc said.
Vietnam is heading to a foreign direct investment (FDI) generation, with higher quality, more advanced technologies, higher added value and more eco-friendly environment, so the EVFTA will open the door for EU companies to complete these targets, he said.
The EVFTA and EVIPA will encourage innovation and reform in Vietnam to drive up the development of Vietnamese firms and the country’s economy as a whole, making them first bricks in building a legal environment in Vietnam, Loc said.
The VCCI president said that after the signing of the EVFTA, Vietnam will face both pressure and motivation to reform regulations and institutions, which is expected to help develop firms, especially small and medium-d enterprises, and raise their competitiveness. The Government should introduce practical reforms to support the business community, Loc said.
Echoing this view, Nicolas Audier, chairman of the European Chamber of Commerce in Vietnam, said that multiple European firms producing goods in Vietnam have faced obstacles in terms of policies and technical standards when exporting their products to the Philippines.
These reforms not only stimulate the development of domestic firms but also create more favorable conditions for European investors in Vietnam, Audier said.
Addressing the dialogue, Minister of Industry and Trade Tran Tuan Anh said that the two agreements would be a stimulus for Vietnam to enhance reforms of regulations related to the business environment to make life easier for domestic and European firms.
The EVFTA is expected to help Vietnamese goods producers expand their markets, increase exports and attract more capital from Europe into Vietnam, Anh said.
In addition to the EVFTA, the EVIPA will help Vietnam strengthen its position in the global market as a contributor to global growth, Anh said.
Besides this, Loc also discussed problems with human resources after the signing.
A survey by VCCI showed that 70%-80% of FDI firms in Vietnam found it hard to employ a managing director.
