- Trade and investment exchanges between Vietnam and the EU have achieved positive results.
- Besides, there are still many difficulties that need solving soon to promote stronger growth.
After one year since the signing of the EVFTA Agreement, trade and investment exchanges between Vietnam and the European Union (EU) have achieved positive results, despite many difficulties caused by the Covid-19 pandemic.
Total import and export turnover reached 54.6 billion USD, up 11.9%, in which exports increased by 11.3% and imports increased by 12.4% over the same period. Regarding investment attraction results, as of September 2021, there are 2,242 projects, accounting for 6.57% of the number of projects, still valid in Vietnam with registered investment capital of 22.24 billion USD, equivalent to 5.58% of total investment capital.
The Netherlands ranked first with 382 projects and 10.36 billion USD, accounting for 46.5% of the total EU investment capital in Vietnam. France ranked second with 632 projects and 3.62 billion USD, equivalent to 16.25% of total investment capital. Right after, Germany is in third place with 405 projects and 2.25 billion USD, accounting for 10.13% of total investment capital.
The EU still mainly focuses on investment in high-tech industries, however, recently the trend of development is more focused on service industries, the clean energy sectors, supporting industries, food processing, high-tech agriculture, pharmaceuticals, etc.
Difficulties still exist
Some key export products of Vietnam to EU countries such as textiles and garments, coffee, iron and steel products, etc. recorded a relatively modest rate of C/O EVFTA. In the first seven months of 2021, the C/O rate for textiles and garments is only about 15.7%, while for coffee and steel it is only 9%.
In addition, only 38/63 provinces and cities have import-export activities with EU countries. Many localities still focus on traditional markets instead of promoting to EU countries.
Regarding the construction of legal institutions, the submission of the revised Law on Trade Unions to the National Assembly was slower than originally planned. The amendment of the Trade Union Law has an important meaning, ensuring synchronization with the provisions of the 2013 Constitution, the Labor Code 2019, and the Resolution No. 02-NQ/TW dated June 12, 2021 of the Ministry of Government on organizational renewal of Vietnamese trade union activities in the new situation. This is one of the issues that receive the EU’s attention during the implementation of labor commitments in the EVFTA Agreement.