Improving the policy system and legal framework based on international trade practice is one of the important factors for Vietnam to integrate more deeply into the global value chains and attract investment capital from Europe as well as create a level playing field for domestic and foreign enterprises, Ambassador Giorgio Aliberti, Head of the European Union Delegation to Vietnam, has said.
Up to 35 percent of European business leaders see administrative procedures as a barrier in the implementation of the European Union - Vietnam Free Trade Agreement (EVFTA), according to the 2021 White Book released recently by the European Chamber of Commerce (EuroCham) in Vietnam.
Aliberti said that there is great investment potential from the European Union, especially in high-value sectors. EuroCham is committed to supporting the Vietnamese Government in setting up a sustainable development roadmap to bring better investment opportunities in the future for the business communities of the two sides, he added.
In early 2021, European business leaders made a positive and optimistic assessment about Vietnam’s trade and investment environment.
The Business Climate Index (BCI) of Vietnam reached 73.9 points in the first quarter of this year, the highest score recorded since the third quarter of 2019, before the COVID-19 pandemic hit global trade and investment. However, the fourth wave of COVID-19 infections in many provinces and cities across the country caused the BCI to drop by nearly 30 points in the second quarter of this year to only 45.8 points.
According to Aliberti, the outbreak of the pandemic led to certain disruptions during the social distancing period in Vietnam and other countries in the region.
However, Vietnam has made remarkable reforms to implement the EVFTA such as its efforts related to certification of origin and geographical indications with very specific improvements, he said, adding that this is a very important starting point.
The official said the EU and Vietnam will witness the opening of their markets along with tariff reductions, opening a new wave of trade for the business communities of the two sides in the future. If the two sides cooperate to solve difficulties, the post-pandemic recovery will quickly achieve desirable results, towards a brighter and more prosperous future in the relationship between Vietnam and the EU, he said.
