The EU-Vietnam Free Trade Agreement (EVFTA) greatly benefits the European Union’s sustainable development projects in Vietnam, making it a leading partner with in climate change mitigation and green transformation
EVFTA proving effective
The EVFTA, in force since August 2020, is the first deal that commits Vietnam to sustainable development, demonstrating the country’s interest in balanced trade promotion and environmental protection. The agreement offers Vietnam opportunities to access advanced EU technologies and draw more projects to accelerate the growth of the green and digital economy as well as renewable energy. It also helps Vietnamese products meet technical and environmental requirements in the EU market.
Sustainable development cooperation between the two sides has been implemented positively and effectively over the years through the institutions within the EVFTA. According to the General Department of Vietnam Customs, trade turnover between the EU and Vietnam reached US$57 billion in 2021, an increase of 14.5 percent compared to the previous year. Of the total, Vietnam’s exports reached US$40.1 billion, up 14.2 percent, while imports increased by 15.3 percent to US$16.9 billion.
According to the Agency of Foreign Trade under the Ministry of Industry and Trade, in the first year of EVFTA implementation, authorized agencies granted 207,682 certificates of origin (C/O) form EUR.1 for goods exports to the EU worth US$7.71 billion. In addition, Vietnamese businesses exporting goods to the EU conducted self-certification of origin for 6,115 batches of goods to enjoy preferential tariffs under the EVFTA.
Promoting technology transfer
During a recent meeting with Executive Vice President of the European Commission (EC) Frans Timmermans, Vietnamese Minister of Industry and Trade Nguyen Hong Dien emphasized the country’s determination to switch from traditional fossil energy sources to renewable energy resources to reduce greenhouse gas emissions, with international financial and technological help.
The two sides discussed specific measures to promote cooperation in energy and green transition, including continued EU technical and financial support and technology transfer to Vietnam’s sustainable energy transformation programs and the Vietnam Energy Partnership Group (VEPG). Vietnam also highlighted the need for improving the capacity of Vietnamese businesses and building production models and quality control systems to ensure compliance with EU regulations and standards.
Timmermans praised Vietnam’s strong commitments at the 26th United Nations Climate Change Conference of the Parties (COP26) held last year in Glasgow, affirming that the EU wishes to accompany Vietnam in the process of sustainable development and is ready to share experience, provide technical support, mobilize resources and strengthen public-private partnerships to help Vietnam successfully implement its commitments.