VietNamNet Bridge - According EuroCham, the free trade agreement signed with the EU could open up more opportunities for Vietnam, when, along with goods, capital and technology can also penetrate the market more easily.

The statement was released by a representative of the European Chamber of Commerce (EuroCham) at the ceremony to release the 2016 White Paper on prospects of economic cooperation between the European Union and Vietnam, which took place on March 2 in Hanoi.

In this publication, EuroCham said the Free Trade Agreement between Vietnam and the EU (EVFTA) is considered a major milestone for both sides, because the EU is an important market of Vietnam in terms of trade. When the agreement takes effect, it is estimated that Vietnam's GDP could rise above 15% and the value of exports to the EU by nearly 35%.

Furthermore, when 99% of tariff lines are removed, Vietnam will liberalize 65% import tax for EU-originating goods (applied on the rest in the next 10 years). Vietnam consumers will use various products from the EU, with a more appropriate price, from wine to cars, motorcycles ...

The authors identified a series of changes that come along with the EVFTA will not only enhance trade but also facilitate the improvement of safety standards and quality for Vietnam.

Increasing FDI from the EU will bring new skills, knowledge and technology transfer to help Vietnam avoid the "middle income trap". Moreover, in addition to the EVFTA, the EU will continue to promote development and cooperation with Vietnam.

According to EuroCham, Vietnam has built a solid foundation to continue to develop successfully. However, this organization also stressed the fact that the implementation of free trade agreements will also require great efforts in improving the legal framework, transparency and removing protective measures.

Besides, with the end of negotiations of the Trans-Pacific Partnership (TPP) in 2015 and the signing of the principle agreement will make strong impact on Vietnam. Many obstacles will arise because Vietnam will have to comply with new standards on packaging, labor conditions, design, antibiotic residues ...

The participation in the TPP will force Vietnam to comply with new standards for labor unions and intellectual property rights, and it must not give preference for state-owned enterprises. "These factors will trigger changes in the overall economy of Vietnam,",Eurocham said

As for a regional perspective, the first major change to Vietnam is the signing of the formation of the ASEAN Economic Community (AEC) in late 2015 and it came into effect in January 2016, representing an important progress for regional integration at all levels.

With the integration of regional economies, the AEC will connect 600 million people with a total GDP of $2,400 billion.

According to a study by the Institute of Asian Development Bank, thanks to the establishment of the AEC, ASEAN could raise the per capita income by three times by 2030. The member countries will achieve strong improvements in quality of life, reaching the level of the member states of the Organisation for Economic Co-operation and Development (OECD).

Son Tung