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Vietnam enjoys significant benefits from EVFTA

01/12/2023    422

Ambassador Karl Van den Bossche of the Kingdom of Belgium in Vietnam has highlighted that Vietnam is reaping significant benefits from the EU-Vietnam Free Trade Agreement (EVFTA), surpassing the advantages for the EU by more than fourfold.

On November 30, the Ho Chi Minh City People's Committee, in collaboration with the Embassy of the Kingdom of Belgium in Vietnam and other relevant entities, held a high-level conference on Environmental, Social, and Governance (ESG) under the theme "ESG: Evolving to the Next Level." This event also commemorated the 50th anniversary of diplomatic relations between Vietnam, the Kingdom of Belgium, and the Kingdom of Luxembourg.

Speaking at the event, Ambassador Karl Van den Bossche of the Kingdom of Belgium in Vietnam highlighted that Vietnam is reaping significant benefits from the EU-Vietnam Free Trade Agreement (EVFTA), surpassing the advantages for the EU by more than fourfold. The relaxation of tax policies has spurred development and equitable growth for both Vietnam and the EU. In the upcoming time, the EU is committed to providing financial support and contributing significant efforts to assist Vietnam in achieving the Net Zero goal by 2050 through the Global Gateway Initiative.

Discussing this matter, Vice Chairman Vo Van Hoan of the Ho Chi Minh City People's Committee said that the EVFTA has unlocked significant market potential in the EU for Vietnamese businesses. Nevertheless, to explore this market, Vietnamese enterprises must navigate technical barriers, including compliance with ESG regulations. In reality, many businesses in Vietnam lack knowledge and encounter challenges in ESG management and reporting. Hence, there is a crucial need for support and experience-sharing from EU enterprises to assist Vietnamese businesses in boosting their attractiveness for investment, improving competitiveness, and establishing a positive international reputation.

Mr. Vo Van Hoan, Vice Chairman of the Ho Chi Minh City People's Committee, added further information for EU businesses, emphasizing that Ho Chi Minh City is the largest economic hub in the country, contributing around one-fifth of the GDP and over a quarter of the national budget. It leads the nation in foreign direct investment (FDI) attraction and import-export activities and hosts 40 percent of the active businesses nationwide.

The city is actively working towards developing significant hubs for economics, finance, commerce, and science-technology in the Southeast Asia region. To realize these objectives, the city requires substantial support in terms of finance, technology, and expertise from international partners, particularly EU investors. The city is dedicated to implementing specialized mechanisms and policies to facilitate rapid and sustainable development while ensuring a stable political and social environment, thereby creating favorable conditions for the long-term and effective operations of EU businesses.

At the conference, Mr. Olivier Do Ngoc, Honorary Consul of the Grand Duchy of Luxembourg in Vietnam, articulated a shared viewpoint on intensifying cooperation, fostering exchanges, and committing support to Vietnam, especially on green finance, urging consensus to enhance collaboration between stock exchanges and bolster financial resources to assist Vietnam in implementing its Green Growth Strategy.

Through this ESG conference, the Grand Duchy of Luxembourg exhibits a strong spirit of collaboration and a firm commitment to supporting Vietnam's transition and environmental conservation. This involves two projects valued at 7 million euros, focusing on environmental protection and climate change adaptation.

EU businesses pledge investments in human resources and the promotion of a sustainable development culture in Vietnam. Additionally, they have unveiled the initiation of a resource mobilization plan for the Just Energy Transition Partnership (JETP).

Source: SGGP