More than 73% of German businesses believe that EVFTA will increase competitiveness in Vietnam
The German Chamber of Commerce and Industry in Vietnam has just announced the results of a survey to assess German business confidence in Vietnam. In which, more than 73% of German businesses believe that the implementation of the Free Trade Agreement between the European Union and Vietnam (EVFTA) will increase their competitiveness in Vietnam.
According to a survey by the German Chamber of Commerce and Industry in Vietnam, German businesses in Vietnam believe in business prospects and have positive expectations for Vietnam's economic growth, with nearly 93% of businesses saying they will continue to invest in Vietnam and more than 64% expect the business to do better in the next 12 months.
German enterprises participating in the survey also expressed that the most important factors for their investment and business decisions in Vietnam are the stable political situation, having high-quality human resources in the technical industries. engineering and other industry groups, and transportation and logistics.
As for taking advantage of opportunities from the EVFTA Agreement, the survey results show that 73% of German businesses believe that the implementation of the EVFTA between the EU and Vietnam increases their competitiveness in Vietnam. It is the EVFTA that helps improve the competitiveness of German exporters in the Vietnamese market. The agreement eliminates more than 99% of tariffs.
In addition, the EVFTA increases Vietnam's competitiveness as a supply market. In fact, before the EVFTA comes into effect, companies can export under the provisions of the EU's Generalized Tariff Preferences (GSP) program.
Enterprises also emphasized that the implementation of free trade agreements (FTAs), including the EVFTA, also help Vietnam have favorable conditions to attract investment capital from abroad. Global dangers are worsening economic and business prospects, but Vietnam also has many advantages to increase its competitiveness in the world supply market.
Mr. Robin Hoenig - Senior Consultant on Trade Policy (Asia/ASEAN) - assessed, Vietnam is one of two countries in ASEAN that have a Free Trade Agreement with Europe, along with Singapore. This is a high-quality agreement, not only related to the reduction of tariffs but also non-tariff factors such as opening up input markets, regulatory requirements for state-owned enterprises or other activities. e-commerce, sustainable development... This is also a strength of Vietnam to attract German and European businesses to invest and do business.
According to statistics of the Ministry of Planning and Investment, as of May 2022, Vietnam has attracted 422 valid investment projects of German enterprises, with a total registered capital of 2.31 billion USD, ranking 18th. /139 countries and territories invest in Vietnam.
German businesses also said that they regularly take advantage of the FTA between ASEAN and China (ACFTA) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
However, German businesses still want Vietnam to further strengthen its capacity, technology, and improve the quality of human resources, because of its high-quality human resources, who are able to operate modern and proficient machinery. production operation skills will help Vietnam better attract investment from Germany and other countries. Along with that, in order to attract capital flows from German businesses, Vietnam also needs to strengthen dialogue with the business community, thereby having appropriate policies, increasing the attractiveness of the investment environment.