EU seeks to boost trade ties with Vietnam

EU trade commissioner Karel De Gucht

As part of ongoing efforts to bolster the EU's trade links with ASEAN countries, EU trade commissioner Karel De Gucht will travel to Vietnam on March 17-18. His stay in Vietnam is part of his March 17-20 travel to Vietnam, Cambodia and Myanmar, in order to boost trade ties with these nations.

Gutch will hold high level talks with his counterparts in each country. His arrival in Hanoi will coincide with the start of the 7th round of talks for an EU-Vietnam free trade agreement (FTA), while in Myanmar capital Nay Pyi Taw the commissioner is expected to launch negotiations for an EU Myanmar investment protection agreement.

“I'm looking forward to constructive talks with our partners in Southeast Asia,” Gutch saidt. “Experience is showing how opening up to trade is helping these dynamic countries raise living standards. At the same time, their markets

provide opportunities for European exporters, so we really do have a win-win situation.”

In Hanoi, he will meet Prime Minister Nguyen Tan Dung and Minister of Industry and Trade Vu Huy Hoang to take stock of progress in the ongoing FTA negotiations. Together, the leaders will open the latest round of talks that began in June 2012. The round will run from March 17-21.

Both sides are looking for a swift conclusion of the negotiations so that businesses can start reaping the benefits of what is expected to be an ambitious agreement. Once in place, the agreement will boost EU-Vietnam trade and investment ties and provide more business opportunities on both sides.

The EU and Vietnam, one of the 10 ASEAN countries, announced the start of bilateral FTA negotiations in Brussels in June 2012.

Vietnam is the third ASEAN country to hold FTA negotiations with the EU after Singapore and Malaysia, and followed by Thailand. The FTA will cover trade in goods and services, investment, government procurement, intellectual property rights, including geographical indications, and other regulatory issues such as non-tariff barriers, animal and plant health and hygiene issues, technical barriers to trade, customs and trade facilitation, and trade and sustainable development.

The EU and Vietnam have strong trade ties. In 2013, Vietnam became the EU's 4th largest trading partner in ASEAN (and 32nd overall). In 2012, two-way trade amounted to almost €24 billion ($31.2 billion), with EU exports to Vietnam amounting to €5.3 billion ($6.89 billion) and EU imports from Vietnam to €18.5 billion ($24.05 billion). The EU is one of the largest foreign direct investors in Vietnam, committing €1.37 billion ($1.78 billion) in total.

While pursuing a bilateral approach, the EU is not losing sight of the ultimate goal of achieving an agreement with ASEAN as a whole, one of the most dynamic regions in the world. The EU is therefore looking to reach an ambitious agreement with Vietnam that is coherent with other individual FTAs with ASEAN members.

EU exports are mainly high-tech products – electrical machinery and equipment, aircraft, vehicles, pharmaceutical products and iron and steel. Vietnam's key exports to the EU include telephone sets, electronic products, footwear, textiles and clothing, coffee, rice, fishery products, and furniture.