European ‘Eagles’ poured billions of dollars into Vietnam

After more than one year, the government has just sent a report to the National Assembly on implementing the Free Trade Agreement between Vietnam and the European Union (EVFTA).

The Government’s report shows that after one year of implementing the EVFTA, trade and investment exchanges between Vietnam and the European Union (EU) have achieved positive results despite many difficulties and obstacles caused by the COVID-19 pandemic.

The total import-export turnover between Vietnam and the EU reached 54.6 billion USD, up 11.9% over the same period.

In which, export turnover from Vietnam to the EU reached 38.5 billion USD, up 11.3% over the same period last year, while Vietnam’s import turnover from the EU reached 16.2 billion USD, up 12.4% compared to the previous year with the same period.

In the first seven months of 2021, import and export turnover between Vietnam and the EU reached 32.4 billion USD, up nearly 18% over the same period in 2020. If counting exports alone, export turnover in the first seven months of 2021 reached 22.81 billion USD, up 17% compared to the first seven months of 2020.

Meanwhile, the import turnover of goods from the EU market in the first seven months of 2021 reached US$9.61 billion, up 18.9% over the same period in 2020.

As of September 2021, the EU has 2,242 projects (an increase of 164 projects over the same period in 2020) from 26/27 EU countries still valid in Vietnam with registered investment capital of 22.24 billion USD (an increase of 483 million USD over the same period in 2020), accounting for 5.58% of the total registered investment capital of countries and territories into Vietnam and for 6.57% of projects.

Some large EU corporations are operating effectively in Vietnam, such as Shell Group (Netherlands), Total Elf Fina (France – Belgium), Daimler Chrysler (Germany), Siemens, Alcatel Comvik (Sweden)…

The EU’s investment trend is still mainly focused on high-tech industries. However, recently, there has been a tendency to focus more on service industries (post and telecommunications, finance, offices for rental, retail), clean energy, supporting industries, food processing, high-tech agriculture, pharmaceuticals…

The Government forecasts that FDI flows from the EU into Vietnam will increase significantly in the medium and long term with many high-quality and high value projects. 

However, the Government assessed several essential export products of Vietnam to EU countries such as textiles, coffee, iron and steel products, etc., noting that the C/O EVFTA sample issuance rate is still relatively modest. In the first seven months of 2021, the C/O rate for textiles and garments is about 15.7%, for coffee and iron is about 9%.

In addition, only 38/63 provinces and cities have import-export activities with EU countries. Many provinces and cities currently still focus on traditional markets, not promoting to EU markets. There are localities with huge export turnover, but the proportion of export value to EU countries is still relatively modest.

(Source: vtc.com)