Negotiations on the EVFTA are a positive development in Vietnam-EU relations.

Prime Minister Nguyen Tan Dung met with President of the European Council Herman Van Rompuy during his visit to Europe on October 13, 2014. (Photo: Duc Tam/VNA)

On March 24th, Vietnam and the European Union (EU) will continue the 12th round of negotiations in Hanoi on the Free Trade Agreement (EVFTA). This can be considered the final round of negotiations for both sides to resolve differences and reach a conclusion and sign the agreement.

Joseph Waldstein Wartenberg, spokesperson for the European Commission's Trade Office, affirmed that Vietnam is a friend and a reliable partner of the EU, and that the signing of the Partnership and Cooperation Agreement, as well as the ongoing negotiations on a Free Trade Agreement, are positive steps in the bilateral relationship.

Mr. Wartenberg emphasized that this year, the EU and Vietnam are also celebrating the 25th anniversary of the establishment of bilateral relations. The EU is very interested in strengthening its relationship with Vietnam, including boosting economic and trade ties. The future signing of the EVFTA will promote growth and employment in both Vietnam and the EU.

The EU is Vietnam's second-largest trading partner (after China). In 2013, bilateral trade reached €27 billion, with the EU importing goods from Vietnam worth €21 billion.

Vietnam is also the EU's fourth largest trading partner in ASEAN and ranks 30th among the EU's trading partners. Vietnam's exports to the EU increased by 28% from 2009 to 2013.

Assessing the Vietnamese economy, Mr. Wartenberg remarked that Vietnam is one of the fastest-growing countries in the ASEAN region and a prime example of an open, trade-oriented economy.

This country has a young population and a highly skilled workforce, and possesses significant untapped potential in EU trade and investment relations. Therefore, the EU is keen to strengthen trade relations with Vietnam through an FTA.

An FTA is an ambitious and comprehensive agreement on goods, services, investment, and government procurement. Beyond tariffs and the removal of non-tariff barriers, negotiations are focusing on addressing other trade-related issues, legal matters, competition, and intellectual property rights, including geographical indications.

Furthermore, the agreement will further strengthen EU-Vietnam trade and investment relations and create business opportunities for both sides. Mr. Wartenberg stated that the EU and Vietnam are complementary economies, with many benefits stemming from closer cooperation than ever before.

EU exports to Vietnam include high-tech products such as machinery, electrical equipment, aircraft, automobiles, and pharmaceuticals. Vietnam's main exports to the EU are footwear, clothing, coffee, rice, seafood, and wood products.

To prevent Vietnam from becoming a low-skilled labor market after signing the EVFTA, Mr. Wartenberg said there will be a chapter on trade and sustainable development, including commitments to International Labour Organization (ILO) standards, multilateral environmental treaties and agreements, and regulations that do not harm or fail to effectively enforce domestic labor and environmental laws to attract trade and investment, especially to avoid a "race to the bottom," as well as creating mechanisms for civil society participation.

In addition, Vietnam must also commit to the conservation and sustainable management of biodiversity (including wildlife), forestry (including combating illegal logging), and fisheries, as well as climate change.

Mr. Wartenberg emphasized Vietnam's commitment to reform, with its "Doi Moi" (Renovation) policy implemented since the mid-1980s leading to significant socio-economic achievements. Vietnam's commitment to economic and political reform is impressive. The EU will continue to support this process through the EVFTA negotiations.

According to VNA