EU-Vietnam Free Trade Agreement: A Multifaceted Strategic Partnership

Strategic Insights -

The EU-Vietnam Free Trade Agreement (EVFTA) has been a crucial instrument for connecting the two continents and has further strengthened the strategic trust between Vietnam and the EU over the past 35 years. Deputy Minister of Foreign Affairs Nguyen Minh Hang likened the EVFTA to a "modern expressway" that has promoted trade relations between the two sides, enhancing Vietnam's position as an attractive investment destination. The commitments within the trade deal have driven institutional reforms, improving Vietnam's legal system in line with international standards.

Key Takeaways:

  • The EVFTA has proven to be a vital instrument for economic cooperation, especially in the context of global upheavals such as the COVID-19 pandemic and rising geopolitical tensions, according to Nguyen Van Thao, Vietnamese Ambassador to Belgium.
  • The deal has not only boosted trade and investment relations but also contributed to mitigating disruptions in global supply chains.
  • The economic structures of Vietnam and the EU are complementary rather than competitive, which helps expand the scope for cooperation.
  • The EU has shown strong interest in and commitment to the bilateral relationship, with over 1,400 EU enterprises operating in Vietnam and recent high-level visits from EU member states.
  • Vietnam has highlighted its growth in importance in the EU's regional strategy, and the country is a party to 17 free trade agreements.
  • The two sides have identified five strategic pillars of cooperation, including supporting a rules-based multilateral trading system, diversifying cooperation, enhancing cooperation in high value-added sectors, institutional reform, and promoting EU investment.
  • Both Vietnamese and EU officials have emphasized the need to expand cooperation, especially in trade and investment, and have reaffirmed their commitment to the existing partnership.
  • The EU hopes to upgrade the relationship to a Comprehensive Strategic Partnership and is ready to closely cooperate with Vietnam to promote free trade and enhance the effective implementation of the EVFTA.

Statistics:

  • The EVFTA was likened to a "modern expressway" that has promoted trade relations between Vietnam and the EU.
  • Over 1,400 EU enterprises operate in Vietnam, highlighting the country's growing importance in the EU's regional strategy.
  • Vietnam is a party to 17 free trade agreements, playing a central role in the EU's Indo-Pacific Strategy.
  • The COVID-19 pandemic and rising geopolitical tensions have posed significant challenges for global trade, emphasizing the importance of the EVFTA.

Sources:

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