EVFTA, EVIPA offer prospect of high quality FDI to Vietnam

Enterprises should participate in the legislation process of Vietnam’s commitments to the EU-Vietnam Free Trade Agreement (EVFTA) in order to make the most of it.

The authorities should share information related to the EVFTA with businesses, while conveying recommendations it receives back to relevant State agencies about amendments to policies and laws being drawn up to implement the trade pact.

The banking sector will become more attractive to European investors than ever before as Vietnam has pledged to allow them to hold up to 49 percent of charter capital at two Vietnamese banks.

The Vietnamese banking sector, now undergoing drastic restructuring, will have more opportunities to improve its financial capacity as well as learn modern business models and management from their European partners after the EU-Vietnam Free Trade Agreement (EVFTA) takes effect.

It's a big chance for Vietnam!

Enterprises, business associations and investors are hoping to fully tap the benefits of the EVFTA – one of the most important new-generation FTAs ever signed – to promote export growth and institutional improvements in Vietnam.

European credit institutions must comply with Vietnam’s regulations on procedures for mergers and acquisitions, as well as safe and competitive conditions, comprising limits on shareholding rate for individual and institutional investors on the basis of national treatment.

As the largest organisation representing the Vietnamese business community, the VCCI need to be ready to support businesses in all issues related to FTAs, including the EVFTA.

Let take best advantage of the deal!

More European investors will jump into the Vietnamese banking sector in the time ahead, attracted by heightened foreign ownership rates at local banks.

Larger room for foreign investors will undoubtedly help Vietnamese joint stock banks access to a large amount of capital while expanding their credit activities, especially in the context that the loan-deposit rate at commercial banks is limited at 85 percent.

The deals will help Vietnam increase its GDP by 4.6 percent and its exports to the EU by 42.7 percent by 2025. Meanwhile, the European Commission has projected the EU’s GDP will increase by 29.5 billion USD and its exports to Vietnam by 29 percent by 2035.

I think the agreement is a triumph for Vietnam!

The investment commitment will replace bilateral investment agreements between Vietnam and EU members, helping the country continue reforming its economic structure, fine tune the business environment and institutions, and facilitate EU investment in Vietnam.

European investors will eye those banks which have some good criteria, such as clearing bad debts, focusing on core credit activities and meeting the State Bank of Vietnam’s standards.

The new trade agreement between Vietnam and the European Union opens many doors for agriculture.

The EU is a large market with the world's leading purchasing powers and the EVFTA Agreement marks a new phase for Vietnam with favourable conditions for the local enterprises, including the agriculture firms, to increase exports.

The reduction of import tariff on livestock products from the EU will improve their penetration of the Vietnamese market and pose significant competition to domestic products.

the country should apply further modern technology to ensure clean production as well as avoid child labour in the production to improve agriculture production to better grasp the chance from the EVFTA.

Hope for a new era in cooperation between the two sides!