Evaluating the impact of EVFTA in investment and trade activities
Publish date 15-04-2021 11:59

In order to recommend investment opportunities and strengthen investment capital flow into Da Nang from domestic and foreign investors, on April 9th the European Chamber of Commerce in Vietnam (EUROCHAM) cooperated with the Da Nang Investment Promotion Agency (IPA) and KPMG Viet Nam to organize the meeting on "The Impact of EVFTA in Investment and Trade Activities in 2021" with the participation of business representatives from the City.

For exports from both Viet Nam and Da Nang. The Agreement will diversify export markets and commodities, especially farm and aquatic products and others which Viet Nam has competitive advantages, strengthen free trade and cooperation, and contribute to economic recovery from the impacts of COVID-19.

The EU is presently one of the leading trade partners of Viet Nam in general and Da Nang in particular. Trade between the EU and Da Nang in 2020 was 385 million USD with Da Nang’s exports worth 255 million USD and 130 million USD for imports. Da Nang’s main exports to the EU included garments and textiles, aquatic products, shipbuilding industry, handicrafts, spare parts and components, finished rubber, toys, and fishing rods. The City imported from EU chemicals, material rubber, medicines, machines, garment materials, pharmaceutical product manufacturing materials, automobiles, and different types of timber.

These industries have major potential for enterprises, especially export and import businesses in Da Nang that know how to take advantages of EVFTA. Da Nang has obtained 892 FDI Projects with total investment of more than 3.86 billion USD. FDI enterprises may also take advantages of this Agreement.

As stated by Mrs. Huynh Lien Phuong, Director of IPA, the commitments for equal treatment, equality, and secure and adequate protection for investments and investors in IPA and EVFTA will contribute to building a legal and explicit investment environment where Viet Nam and Da Nang will attract more investors from the EU and other countries.

"Da Nang, together with related Central Government Ministries and Agencies, has built an action plan to carry out EVFTA with many important missions including the enhancement of enterprises’ perceptions of the conditions for executing the Agreement, engaging in the Agreement, and taking full advantages of it", said Mrs. Huynh Lien Phuong.

At the meeting, business representatives shared information on production and trade markets and activities of investment, trade, export and import impacted by EVFTA. Mr. Jose Sanchez Barroso, representative of EUROCHAM in the Central Region and Spanish Honour Deputy General Consul, said that EU enterprises highly appreciated the investment and trade environment in Da Nang and Quang Nam Province. Companies’ leaders show optimism and the trust of the business community has been gradually reinforced, especially with Viet Nam’s management of COVID-19.

Business representatives hope that the promotion of cooperation through EVFTA will form a basis for socio-economic growth in Viet Nam and Da Nang in the coming time. Furthermore, enterprises should actively invest in human resources, machines, and technologies aiming to develop products and enhance productivity, enhance managerial skills aiming to explicit production, and raise labor awareness of international economic cooperation.