In an interview granted to the Vietnam News Agency (VNA)’s correspondents in Berlin on the occasion of the three years of implementing the E.U. - Vietnam Free Trade Agreement (EVFTA) (August 1, 2020), the expert noted that Vietnamese firms would benefit more from the deal.
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Marko Walde, Chief Representative of the Delegation of the German Industry and Commerce in Vietnam, Myanmar, Cambodia and Laos |
This is the fourth free trade agreement the E.U. has signed with an Asian nation, and the second with a member of the Association of Southeast Asian Nations (ASEAN), he stressed.
Walde said thanks to the deal, trade between the two sides has been growing despite impacts of the COVID-19 pandemic over the past three years, adding it has also created more opportunities for German enterprises in Vietnam.
However, Vietnamese businesses have yet to take full advantage of the agreement, with Vietnamese goods making up only about 2% of the E.U.’s total imports, he said.
The expert pointed out that complex administrative procedures are a main barrier to companies from Germany in particular and Europe in general although Vietnam has made efforts in streamlining them.
Other limitations are infrastructure, he said, suggesting Vietnam improve its capacity, especially in renewable energy to maintain economic growth, and modernize its roads, railways, seaports and airports to ensure smooth business and trade operations.
According to Walde, partnerships with European businesses, including those from Germany, have facilitated technology transfer and Vietnam’s integration into supply chains.
Vietnamese enterprises need to raise their awareness and understanding about standards and regulations set by the E.U., he continued, suggesting them seek support from competent agencies, especially through programs launched by the Government, in order to sharpen their competitiveness.
They should optimize technical support from the E.U. and Germany to improve supply chain connectivity, he said.
Besides, visa and work permit procedures remain a challenge, he went on, stressing the need for Vietnam to invest more in human resources development to become more attractive to European investors who are seeking skilled laborers and long-term partnership.
Source: VNA