A Free Trade Agreement (FTA) between Vietnam and EU will boost economicreform and support development in Vietnam, David O'Sullivan, chiefoperating officer of the European External Action Service said at a Mar 2press conference in HCM City.
More free trade and trade liberalisation are important for both economies, he stressed.
Against the backdrop of persistent macroeconomic challenges thatVietnam has been facing currently, it is important to keep the marketopen, he said.
The FTA can help both sides avoid tradeprotectionism, especially when Vietnam continues to increase exportsin the coming years while waiting for an increase in domesticconsumption.
Sullivan said he will press for progress inthe negotiation of a mutually beneficial EU-Vietnam FTA, which wouldalso act as a catalyst for Vietnam 's economic liberalisationstrategy.
The EU is already an important trading andinvestment partner of Vietnam , but there is more potential to berealised. Towards this, "we would like to see negotiations progress for acomprehensive free trade agreement between the EU and Vietnam .
"We have been discussing with Vietnamese authorities for a number ofyears and we are now ready to move forward. We hope negotiations for theFTA between Vietnam and EU will be announced at the EU-ASEANbusiness summit taking place in Phnom Penh on April 1," he said.
Typically, the negotiation can take about 2-3 years. They will cover afull range of topics related to trade and investment relations.
With the ASEAN region in general and Vietnam in particular markedfor dynamic economic growth, the EU is keen to strike a win-wincooperation deal with Vietnam , Sullivan said.
He saidVietnam is a country with enormous potential and significanteconomic achievements in recent times, and it can do better in thecoming years.
"The EU's economic crisis does not restrictimport-export, or reduce investment, but it has increased trade andengagement with the world, particular with ASEAN – a major source ofeconomic growth – We want more trade and investment," he said.
While cheaper labor costs in Vietnam is a very important elementfor investment decisions, there are many other influencing factors suchas corruption and investment guarantees.
" Vietnamneeds to work on all elements if they wish to be an attractivedestination to investors. What Vietnam wants to do is move up the valuechain, so they need to use the labour cost advantage in the beginning tobuild up their capacity and added value to make their economy morecompetitive," Sullivan said.
Besides, Vietnam stillfaces challenges including high inflation and increasing exports of lowcost items, which can damage the economy, he added./.
More free trade and trade liberalisation are important for both economies, he stressed.
Against the backdrop of persistent macroeconomic challenges thatVietnam has been facing currently, it is important to keep the marketopen, he said.
The FTA can help both sides avoid tradeprotectionism, especially when Vietnam continues to increase exportsin the coming years while waiting for an increase in domesticconsumption.
Sullivan said he will press for progress inthe negotiation of a mutually beneficial EU-Vietnam FTA, which wouldalso act as a catalyst for Vietnam 's economic liberalisationstrategy.
The EU is already an important trading andinvestment partner of Vietnam , but there is more potential to berealised. Towards this, "we would like to see negotiations progress for acomprehensive free trade agreement between the EU and Vietnam .
"We have been discussing with Vietnamese authorities for a number ofyears and we are now ready to move forward. We hope negotiations for theFTA between Vietnam and EU will be announced at the EU-ASEANbusiness summit taking place in Phnom Penh on April 1," he said.
Typically, the negotiation can take about 2-3 years. They will cover afull range of topics related to trade and investment relations.
With the ASEAN region in general and Vietnam in particular markedfor dynamic economic growth, the EU is keen to strike a win-wincooperation deal with Vietnam , Sullivan said.
He saidVietnam is a country with enormous potential and significanteconomic achievements in recent times, and it can do better in thecoming years.
"The EU's economic crisis does not restrictimport-export, or reduce investment, but it has increased trade andengagement with the world, particular with ASEAN – a major source ofeconomic growth – We want more trade and investment," he said.
While cheaper labor costs in Vietnam is a very important elementfor investment decisions, there are many other influencing factors suchas corruption and investment guarantees.
" Vietnamneeds to work on all elements if they wish to be an attractivedestination to investors. What Vietnam wants to do is move up the valuechain, so they need to use the labour cost advantage in the beginning tobuild up their capacity and added value to make their economy morecompetitive," Sullivan said.
Besides, Vietnam stillfaces challenges including high inflation and increasing exports of lowcost items, which can damage the economy, he added./.
