The European Union (EU) expects it and Vietnam can soon conclude negotiations over a free trade agreement (FTA), and this will make it possible for the EU to recognize Vietnam as a market economy, said the Ambassador and Head of the EU Delegation to Vietnam.

Speaking to the Daily at a press conference on the 25th anniversary of the EU-Vietnam diplomatic relations held in Hanoi on January 29, Franz Jessen said he hoped that the FTA would lead to changes in Vietnam’s economic structure.

Jessen said Vietnam would be able to meet criteria for a market economy after FTA negotiations are wrapped up.

Vietnam has repeatedly requested the EU to recognize it as a market economy in the past years but has yet to succeed despite a number of nations worldwide have announced their recognition.

Jessen said the EU did not hesitate to give a market economy status to Vietnam and will announce this once Vietnam satisfies its technical criteria for a market economy.

According to Jessen, the Vietnamese economy has improved in recent times and the Government has strived to make changes. However, meeting the criteria for a market economy cannot be done overnight as this will take time to adapt and make changes. 

The latest round of negotiations for the FTA took place in Belgium over one week ago and both sides will need one more round before they consider signing the trade agreement.

Jessen described the results of negotiations as positive, saying the two sides would end FTA talks soon.

Jessen expected the FTA will foster bilateral relations and help Vietnam boost internal reforms which the country’s leaders are determined to do. Both sides need to closely cooperate in government procurement and use of State funding transparently and effectively for the sake of Vietnamese people.

The EU has recently announced more non-refundable aid for Vietnam, increasing from 300 million euros to 400 million euros in the 2014-2020 period regardless of the tight fiscal policy in Europe.

The EU together with its member states has become the biggest provider of grants for Vietnam.

To mark the 25th anniversary of establishment of diplomatic ties, a series of activities will be organized throughout the year. They include events for youths, public forums with the participation of scholars from Europe, film and music festivals, seminars, a writing contest about the EU for young people in Vietnam to write about their feelings, understanding and thinking about the EU and EU-Vietnam relations.

The activities will be held by the EU Delegation in Vietnam in coordination with Vietnam’s Ministry of Foreign Affairs, European cultural centers and EU-funded project operators.