VietNamNet Bridge - Viet Nam, having signed a series of Free Trade Agreements with Japan, China, the Republic of Korea, India, Australia and New Zealand to increase trade and investment opportunities, is negotiating FTAs with the EU.

The Deputy Head of the Ministry of Industry and Trade's Multilateral Trade Policy Department, Le Quang Lan, spoke to reporters in Ha Noi regarding the process of infiltrating Europe.

While Viet Nam and the EU have been negotiating a one-year Free Trade Agreement (FTA), common ground has yet to be found. What is the main reason for the slow progress?

Although FTA negotiations have been in progress for nearly one year, despite best efforts, a clear direction has been largely absent from the table.

To date, we've only been involved in the initial stage of negotiations, setting out how a possible FTA could benefit both sides. As part of such an agreement, Viet Nam is set to export textiles, seafood and agricultural products to the EU, which will in turn export machinery, equipment and automobile parts to Viet Nam.

Currently negotiation timelines are clashing. It took Viet Nam two years to sign an FTA with Japan and two to three years to sign one with ASEAN member states for example.

What is your opinion on the competitiveness of domestic companies on the back of signing an FTA?

The production capacity of Vietnamese businesses is still limited due to difficulties in accessing up to date information.

However, the FTA is an opportunity to help domestic companies with whom we are working to compete and deal with their weaknesses.

We want local businesses to up their games and boost exports to the EU.

In order for them to enjoy preferential EU tariffs, negotiations have to take into account regulations based on product origin, in line with local business capacity.

Some textile companies have shown concern that an FTA could overcomplicate exporting to the EU?

Absolutely not. On the contrary, an FTA would provide companies with increased export opportunities while significantly boosting foreign trade.

You have said that the EU considers signing an FTA with Viet Nam as a ‘cushion step' in accessing the ASEAN community. Does this mean that the EU would be willing to make concessions during negotiations?

The EU has already approached various ASEAN member states, including Singapore and Malaysia, in its efforts to gain a co-operative foothold in this part of Asia.

ASEAN members see FTAs as small bricks in developing a common consensus with the EU.

Are there any elements of the FTA negotiations that go against the Trans-Pacific Partnership (TPP)?

Negotiations are taking place in accordance with the World Trade Organisation principles at all times, erasing any opportunity for possible conflict.

Source: VNS