In a column originally published in the Vietnam Investment Review’s 1-7 August edition, Eunjung Han, Consultant at Rouse Legal Vietnam and Vice-Chair of the Digital Sector Committee of the European Chamber of Commerce in Vietnam, looks at how the implementation of EU-Vietnam Free Trade Agreement (EVFTA) and relevant government policies make impacts on the growth of the local tech market.

The Europe-Vietnam Free Trade Agreement (EVFTA) has made a positive impact, creating an open and comprehensive market, while prompting the textile and garment industry to make greater efforts to invest in technological innovation. This is as well as promoting automation and digital governance in order to meet the very strict rules of origin set out in the terms of the EVFTA.

Vietnamese enterprises have been advised to develop raw material areas which fall in line with EU regulations in order to make further inroads into the demanding market, according to industry insiders.

The socio-economic impacts of the two-year-old EU-Vietnam Free Trade Agreement (EVFTA) along with issues that the deal poses for Vietnam were under focus at a scientific seminar held in Hanoi on August 4.

WVR - EVFTA is a win-win agreement for both Vietnam and the EU. European businesses are looking for reliable and dynamic markets. Vietnam is the country that meets that condition.

After two years of enforcement, the EU - Vietnam Free Trade Agreement (EVFTA) has generated initial results, but rising inflation in the EU and the euro depreciation are affecting Vietnamese firms, requiring urgent solutions to those difficulties.

He further cited that last year, Vietnam ranked 11th among exporters to the EU globally. In Asia, the country came fifth, only after China, Japan, the Republic of Korea and India.

During the first six months of 2022, Vietnam enjoyed a significant trade surplus with the EU, at US$15.5 billion – a strong indicator of Vietnam’s economic recovery post-pandemic, and growing Vietnam-EU bilateral trade. Vietnam Briefing analyses growing Vietnam-EU trade relations and the top-performing industries between the two partners.

Local firms have no other alternative but to opt for higher product quality to ensure sustainable exports to the EU market.

The European Union (EU) appreciates Vietnam's potential and wishes to further strengthen cooperation with the country to build a sustainable agricultural product supply chain, Janusz Wojciechowski, EU Commissioner for Agriculture, has said.