The recent ratification of the EU-Vietnam Free Trade Agreement (EVFTA) and the EU-Vietnam Investment Protection Agreement (EVIPA) by the National Assembly, along with the decision by the European Parliament (EP) to adopt the two agreements, confirms the desire and determination of the two parties to further deepen bilateral relations 30 years after establishing diplomatic ties, according to Deputy Foreign Minister Bui Thanh Son.
|Deputy Foreign Minister Bui Thanh Son (Photo: VNA) |
The official told the media that the quick implementation of the two deals would create stable and long-term frameworks that maximise the potential for cooperation, bringing bilateral economic, trade, and investment ties to the same level as the comprehensive cooperative partnership.
The implementation of the EVFTA also affirms the strategic development of bilateral relations, linking the two parties with each other’s position in diplomatic, development, and integration strategies.
As a comprehensive agreement with high-level commitments, the EVFTA is expected to bring major benefits to both, he said.
Primarily, the deal will help Vietnam continue diversifying its economic, trade, and investment relations. This is significant in the context of the global economy being seriously impacted by the COVID-19 pandemic.
Secondly, the EVFTA will help promote exports to the EU, attract investment, create momentum for economic growth, and generate jobs. Commitments to open markets will present a host of opportunities for businesses to raise export turnover, especially in fields of potential such as garments and textiles, footwear, and agro-fishery.
Thirdly, the implementation of the EVFTA’s high standards will drive economic reforms, change growth models, and restructure exports, in particular increasing the volume of technology used in exports and creating a competitive and innovative economy in the long term.
Fourthly, it will generate competitive advantages for Vietnam in making use of opportunities from shifting supply and production chains and attracting high-quality FDI.
Fifthly, its commitments on labour and sustainable development will help Vietnam more effectively implement sustainable development goals and environmental protection efforts.
Besides its advantages, the EVFTA also presents a great many challenges, such as stronger competition and the need for agencies, localities, and businesses to implement commitments.
Overall, the ratification and implementation of the EVFTA is an important and timely step for Vietnam as it is implementing its foreign policy of independence, self-reliance, multilateralisation, diversification, and active international integration.
Son suggested preparing a roadmap to proactively implement and make best use of the benefits and opportunities from all FTAs, especially new-generation agreements.
It is necessary to remain abreast of new trends and digitalisation to seek new momentum for economic growth, renovation, and sustainable development.
He called on officials, localities, and businesses to make use of shifting capital and production value chains as well as global waves of trade and investment to attract high-quality projects.
Reinforcing and developing multilateral cooperation and trade systems is crucial, in addition to improving policies and legal frameworks and ensuring that international technical criteria and standards are met, the official concluded.