German expert gives ways to help Vietnamese enterprises further penetrate into EU market28/08/2023 93
Marko Walde, chief representative of the Delegation of the German Industry and Commerce in Vietnam, Myanmar, Cambodia and Laos, has suggested that local firms utilize the support of competent agencies, international trade promotion agencies, and associations in order to achieve greater penetration into the fastidious EU market.
In a recent media interview given to mark the occasion of the three-year enforcement of the EU-Vietnam Free Trade Agreement (EVFTA) on August 1, 2020, the expert noted that Vietnamese businesses would benefit more from the deal.
This marks the fourth free trade agreement that the EU has signed with an Asian nation, as well as being the second with a member of ASEAN, he stressed.
Walde said thanks to the deal, trade between the two sides has been growing despite the impact of the COVID-19 pandemic over the past three years, adding that it has also created further opportunities for German enterprises based in Vietnam.
However, Vietnamese businesses have yet to take full advantage of the agreement, with goods from the nation making up only around 2% of the EU’s total imports, he continued.
The expert pointed out that complex administrative procedures serve as the main barrier to companies from Germany in particular and Europe in general, although the nation has made efforts to streamline them.
Other limitations include infrastructure, he said, suggesting that the country strive to improve its capacity, especially in renewable energy to maintain economic growth, as well as working to modernise 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 continued Vietnamese integration into supply chains.
Local enterprises must therefore raise awareness and understanding about standards and regulations set by the EU, he continued, suggesting that they seek support from competent agencies, especially through programmes launched by the Government, in order to sharpen their competitiveness.
They should attempt to optimise technical support from the EU and Germany to improve supply chain connectivity, he said.
Moreover, visa and work permit procedures remain a challenge, he went on, stressing the need for Vietnam to invest more in human resources development as part of efforts to become more appealing to European investors who are seeking skilled labourers and a long-term partnership.