Despite pandemic, EU-Vietnam free trade pact boosts two-way trade

Van Dat Thursday | 10/14/2021 12:19

Photo: Vietnam News Agency

Despite the COVID-19 pandemic, the EU-Vietnam Free Trade Agreement, which entered into force in August 2020, has helped to boost two-way trade and buffer the impact of the economic downturn.

Bilateral trade between Vietnam and the EU amounted to $27 billion from January to June this year, up 18 percent annually, a remarkable achievement in the midst of a global pandemic, The Business Times cited data from the European Chamber of Commerce in Vietnam.

After 1 year of implementing the EVFTA, trade and investment exchanges between Vietnam and the European Union have achieved positive results despite many difficulties and obstacles caused by the pandemic.

Latest data that the Government has reported to the National Assembly on the implementation of the Free Trade Agreement between Vietnam and the European Union after more than 1 year shows that total import-export turnover between Vietnam and the EU reached $54.6 billion, up 11.9% over the same period.

Export turnover from Vietnam to the EU reached $38.5 billion, up 11.3% over the same period last year, while Vietnam's import turnover from the EU reached $16.2 billion, up 12.4% compared to the same period last year. with the same period.

In the first 7 months of 2021, import and export turnover between Vietnam and the EU reached $32.4 billion, up nearly 18% over the same period in 2020. If counting exports alone, export turnover in the first 7 months of 2021 reached $22.81 billion, up 17% compared to the first 7 months of 2020.

Meanwhile, the import turnover of goods from the EU market in the first 7 months of 2021 reached $9.61 billion, up 18.9% over the same period in 2020.

The EVFTA, the second one that the EU has concluded with an ASEAN country after Singapore, is not the only major free trade deal that is driving Vietnam's growth. In the last few years, a string of FTAs have come into force in Vietnam, including the Comprehensive and Progressive Agreement for Trans-Pacific Partnership and the Regional Comprehensive Economic Partnership, The Business Times wrote.

In term of investment, as of September 2021, European firms has invested 2,242 projects in Vietnam, an increase of 164 projects over the same period in 2020. The projects were invested by enterprises from 26/27 EU countries with registered investment capital of $22.24 billion, up $483 million over the same period of 2020.

Large EU corporations have operated effectively in Vietnam include Shell Group (Netherlands), Total Elf Fina (France - Belgium), Daimler Chrysler (Germany), Siemens, Alcatel Comvik (Sweden)...

The European firms mainly focused on high-tech industries. However, recently, there has been a tendency to develop service industries such as post and telecommunications, finance, 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 projects of high value.

The free trade agreement was signed on June 30, 2019, and approved by the National Assembly of Vietnam on June 8, 2020. The agreement officially took effect on August 1, 2020.

► World Bank lowers Vietnam’s 2021 economic growth to 2 – 2.5%

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