Vietnam to enjoy more benefits from signing FTA with EU
QĐND - Saturday, June 30, 2012, 20:56 (GMT+7)
PANO – The kick-start of Free Trade Agreement (FTA) negotiations between Vietnam and the European Union (EU) marked an important milestone in their relations’ development and would bring considerable benefits to both sides, said Ambassador Franz Jessen, Head of the EU delegation to Vietnam, at a press conference in Hanoi on June 29th.
|Ambassador Franz Jessen, Head of the EU delegation to Vietnam, addresses the press conference
He also added that the process of negotiating a bilateral (FTA) officially began in Brussels on June 26th by Vietnamese Minister of Industry and Trade Vu Huy Hoang and European Commissioner for Trade Karel De Gucht. At present, two sides are seeking a comprehensive agreement on of tariff, non-tariff barriers and trade-related commitments on policies, competition, services and sustainable development.
Reporter: Could you please talk about what would be discussed at the first round of Vietnam - EU FTA negotiations?
Ambassador Franz Jessen: Before the first round, we had several rehearsals to identify concrete scale and contents of the talks. Apart from tariff issue, we also exchange views on intellectual property, trade facilitation, ensuring that the inspection of Vietnamese exports to EU will transparently and clearly be conducted as the EU’s goods to Vietnam. In addition, two sides also plan to debate legal issues relating to food safety and quarantine regulations. As to investment, we will not only approach markets for service investors but also negotiate for two sides’ investment protection to ensure the EU-Vietnam FTA is a comprehensive agreement.
Reporter: You have said that Vietnam will enjoy many benefits when signing the FTA with the EU. So, what are these benefits, Sir?
Ambassador Franz Jessen: There are obvious benefits for Vietnam from signing the bilateral FTA. Firstly, Vietnam can easily penetrate into the EU’s market because more than 90 different tax lines will be exempted. It means that many materials can enjoy tax free. Secondly, more EU’s products will be exported to Vietnam, making a competitiveness in local market which benefit Vietnamese consumers to have more choices to use the best quality items with competitive prices. Thirdly, Vietnam will obviously draw more foreign direct investment (FDI) from EU businesses, that also means more jobs for local workers. Finally, the signing the the FTA would force Vietnam to apply international standards to issues with legal aspects such as the protection for geographical direction of the “Phu Quoc” fish sauce. The EU has been dealing with this issue and is about to recognize this product soon. However, there remain many Vietnamese products that need protection for geographical directions and intellectual property.
Reporter: Which impacts can take influence on Vietnam and EU economies after the bilateral FTA is signed?
Ambassador Franz Jessen: There exist a number of differences in the economy of Vietnam and of EU. However, these differences are important as they would complement each other. Namely, the EU countries do not get upper hand with Vietnamese exports to the EU, including footwear, garments, agricultural products and seafood while Vietnam purchases the EU-made heavy machines or high-tech devices and products. So, FTA has big influences on the two sides’ economies but they are positive influences.
Reporter: Thank you very much !
Translated by Van Hieu