View
24
Download
0
Category
Preview:
DESCRIPTION
Thuyet trinh KTDN
Citation preview
THE RELATIONSHIP BETWEEN VIETNAM AND THE EU
•Lê Nguyên Khánh•Vũ Phương Uyên•Lê Xuân Thuận
Group 7
03
02
01
1. Establishing Vietnam – EU relation
2. Vietnam and EU’s targets
3. Vietnam’s perspective
4. Factors affecting Vietnam – EU relation
5. Conclusion
1. Trade agreements
2. Trade
3. Investment
1. Benefits
2. Challenges
3. Solutions
OVERVIEW
VIETNAM – EU TRADES AND AGREEMNETS
CONCLUSION
Establishing
Vietnam – EU relation
Signing the Framework
Cooperation Agreement on
collaborating and setting basic
principles in order to enhance
the participants’ relations on
July 17th
1990FCA is a long-term framework
agreement, which enters force
on June 1st 1996 with 4 main
objectives. EU’s first diplomatic
mission - the permanent
Delegation of EU to Vietnam
was established in Hanoi
1995 1996Vietnam and the European (the
European Community at the
time – The EU’s precursor)
officially established a
diplomatic relation, forming a
firm base for an overall long-
term relationship
4
1 2
3 4
To support sustainable economic development in Vietnam, especially takes notice in improving living conditions for the poor.
To support environmental protection and the sustainable management of natural resources.
To secure the conditions and promote the development of bilateral trade and investment on the base of win-win principal and grant each other MFN statute.
To enhance economic cooperation, including support to Vietnam’s efforts to move towards a market economy.
Establishing
Vietnam – EU relation
Vietnam and EU agreed on a
mutual economic corporation
and development strategy in
order to enhance Vietnam’s
conversion process to a market
economy
1996
In June, EU-Vietnam Framework
Agreement on Comprehensive
Partnership and Cooperation
(PCA) was signed. FTA
negotiations with Vietnam
started
2012
The agreement in principle
reached on 4th August 2015 for
a free trade deal includes the
elimination of nearly all tariffs
(over 99%)
2015
Establishing
Vietnam – EU relation
Finally, after 3 years and 14 rounds of talks, on 2nd December
2015, the EU and Vietnam declared to officially complete
negotiations for an EU-Vietnam Free Trade Agreement (FTA).
In 2015, the EU and Vietnam are celebrating the 25th anniversary
of diplomatic relations.
2015
Vietnam’s Target
Exporting is one of Vietnam’s main targets. European Union has been
and still is one of the Vietnam’s biggest partner, a wide and potential
consuming market for Vietnam’s products such as shoes, textiles,
agriculture commodities, handicrafts, joineries, plastic products and
aquatic products, etc.
EU is also a highly economic developed zone, which can easily satisfy
the rising needs of technology imports and input sources for several
industries, eventually serving Vietnam’s economic development and
executing the nation’s industrialization and modernization.
Earning foreign investments from the EU is another target. Indeed,
The EU is one of the largest foreign investors in Vietnam.
Supporting the sustainable economic development of Vietnam and the improvement of living conditions of the poor
Encouraging the integration of Vietnam in the world economy and trading system and supporting the process of economic and social reforms.
Supporting Vietnam's transition to an open society based on sound governance, rule of law and respect for human rights.
Raising the profile of the European Union in ASEAN generally and in Vietnam specifically.
EU’s Target
EUROPE
Vietnam’s perspective
Strengthening relations with EU also indicates the consistence in Vietnam’s Party and
Government’s foreign policies of multilateral and diversified international politics and
economic relations, in which EU is the priority. However, it is important that Vietnam does not rely on EU or the relation between the two, as Vietnam needs to be economically
strong and independent.
The appearance
of the EU and a mutual
currency
PoliticsGlobalization
Vietnam’s rapid growth
pace and human right
problems
The Cambodia
matter
The Cambodia
matter
The appearance of the EU and a mutual currency
Vietnam’s rapid growth
pace and human right
problems
Globalization
Politics
A1992 Vietnam and European Communities signed textile agreement.
A1997 Vietnam joined ASEAN –EU cooperation agreement.
A2005 Vietnam adopted a Master Plan and Action plan in developing Vietnam – EU relations towards 2010 and orientations towards 2015.
A1995Vietnam and European Community signed Vietnam – EC framework cooperation agreement.
A2003Vietnam – EU human rights dialogue was launched.
A2008 The negotiations on a Framework Agreement on Comprehensive Partnership and Cooperation (PCA) were launched.
A1990Vietnam and European Communities officially established diplomatic relations.
A1996European Commission set up its permanent Delegation to Vietnam
A2004First Vietnam – EU Summit in Hanoi
A2010
Vietnam – EU PCA was initialed.
A2012
Vietnam – EU PCA was officially signed and the negotiations for a Vietnam – EU Free Trade Agreement (FTA) started.
A2015
Officially finish Vietnam – EU FTA negotiations after 3 years and 14 talk rounds.
The EU- VN FTA
1.1 – Eliminating customs duties1.2 – Reducing non-tariff barriers to European exports 1.3 – Protecting European Geographical Indications 1.4 – Allowing EU companies to bid for Vietnamese public contracts1.5 – Creating a level playing field for EU companies and innovative products.1.6 – Opening the Vietnamese market for EU services operators.1.7 – Promoting and protecting investment.1.8 – Establishing an efficient mechanism to resolve future disagreements.1.9 – Safeguarding social and environmental protection standards.1.10 – Promoting democracy and respect for human rights.
Eliminating customs dutiesA few concrete examples:
Almost all EU
exports of
machinery and
appliances will be
fully liberalized at
entry into force
and the rest after
5 years.
Car parts will be
duty free after 7
years. Roughly
half of EU
pharmaceuticals
exports will be
duty free at entry
into force and
the rest after 7
years.
The totality of EU
textile fabric
exports will be
liberalized at
entry into force.
Close to 70% of
EU chemicals
export will be
duty free at entry
into force and
the rest after 3, 5
and 7 years.
Vietnam will also open its market for most EU
food products, both primary and processed, allowing EU high quality
exports to reach its growing middle class
consumers.
Wines and spirits will be liberalized
after 7 years.
Frozen pork meat will be duty free after 7 years, beef after 3 years and dairy products after a maximum of 5 years and food preparations after a
maximum of 7 years.
Chicken will be fully liberalized after 10 years.
The EU- VN FTA
1.1 – Eliminating customs duties1.2 – Reducing non-tariff barriers to European exports 1.3 – Protecting European Geographical Indications 1.4 – Allowing EU companies to bid for Vietnamese public contracts1.5 – Creating a level playing field for EU companies and innovative products.1.6 – Opening the Vietnamese market for EU services operators.1.7 – Promoting and protecting investment.1.8 – Establishing an efficient mechanism to resolve future disagreements.1.9 – Safeguarding social and environmental protection standards.1.10 – Promoting democracy and respect for human rights.
The EU and Vietnam have also agreed
on disciplines fully in line with
Government Procurement Agreement
(GPA) rules, achieving a degree of
transparency and procedural fairness
comparable to other EU FTAs with
developed countries and more advanced
developing countries. EU businesses will
be the first foreign companies to get
such a level of access to Vietnamese
procurement markets.
Vietnamese ministries, including for
infrastructure such as roads and ports,
important state-owned enterprises such
as the power distribution company and
the nationwide railway operator, 34 public
hospitals in the two biggest Vietnamese
cities, Hanoi and Ho Chi Minh City.
Allowing EU companies to bid for Vietnamese public contracts
The EU- VN FTA
1.1 – Eliminating customs duties1.2 – Reducing non-tariff barriers to European exports 1.3 – Protecting European Geographical Indications 1.4 – Allowing EU companies to bid for Vietnamese public contracts1.5 – Creating a level playing field for EU companies and innovative products.1.6 – Opening the Vietnamese market for EU services operators.1.7 – Promoting and protecting investment.1.8 – Establishing an efficient mechanism to resolve future disagreements.1.9 – Safeguarding social and environmental protection standards.1.10 – Promoting democracy and respect for human rights.
TRADE
In 2014, the EU constituted one of the
most important overseas markets for
Vietnam (EU came second after it was
closely overtaken by the US by only US$ 500
million)
The EU purchased as much as 18.6% of the country's global exports in 2014. The two way trade expanded by 8.8%, mainly owing to the impressive growth rate of Vietnam's exports to the EU which made year-on-year increase of 14.7% (US$ 27.9 billion)
The EU was also the second largest trading partner of Vietnam after China (excluding intra-ASEAN trade)
In particular, the continuous surplus of US$19 billion that Vietnam enjoys in its bilateral commercial links with the EU significantly helped to balance Vietnam's huge trade deficits with China and South Korea and led to an estimated global trade surplus of about US$ 2 billion
Thus, 2014 marks another year in which Vietnam enjoys a record-high trade surplus with the EU. Meanwhile, the EU's exports to Vietnam tumbled by 5.9% during 2014
Vietnamese exports to the EU concentrated on labor intensive products including assembly of electronic items/ telephone sets, footwear, garments and textiles, coffee, seafood and furniture. The main commodities of EU exports to Vietnam are high-tech products, including boilers-machinery & mechanical products, electrical machinery & equipment, pharmaceutical products, and vehicles.
INVESTMENT
The electric production
and distribution and
estate & business
planning come second
and third, with $3,54
and $3,4 billion in
registered capital
According to the
Foreign Investment
Agency of the
Vietnamese Ministry of
Planning and Investment,
investors from 22 out of
28 Member States of the
EU injected a total
committed FDI worth
US$21.48 billion into
1710 projects over the
course of the past 25
years (by December 20th
2015).
The investors
concentrated on
manufacturing, electric
production and
distribution, estate and
business planning.
Manufacturing has 590
projects and the total
capital is $6.62 billion.
The projects be set in
52/63 provinces and
crowded in Ho Chi
Minh City, Hanoi, Ba
Ria – Vung Tau
province, Quang Ninh
province, Dong Nai
province
In 2014 the EU ranked
fifth among the big FDI
partners of Vietnam.
From January to mid-
December 2014, the
EU had a combined
committed FDI of
US$587.1 million
EU investment in
Vietnam is mainly in
two forms: a joint
venture and 100%
foreign capital
In 2015, The
Observation Complex
in the Thu Thiem New
Urban Area in Ho Chi
Minh City’s District 2,
with investment capital
of $1.2 billion were
broken on December
2nd 2015
It is a joint venture
among two
Vietnamese partners -
the Tien Phuoc Real
Estate JSC and the
Tran Thai Real Estate
Company - and the
UK’s Denver Power
Ltd under Gaw Capital
Partners
Two Vietnamese
partners and the
foreign partner hold
50% investment
capital respectively
INVESTMENT
CONCLUSION
Benefits
For EU
For Vietnam
THE STRATEGY TOWARDS ASIA OF THE EU
Secondly, the EU promotes
cooperation and mutual
understanding at the international
level to contribute to stability in
Asia
Firstly, the EU improves the economic
presence in Asia to maintain its
dominant role in the world economy
Finally, the EU contributes to developing
and consolidating democracy, the rule of
law, as well as the human rights and
fundamental freedom in Asia.
Thirdly, the EU encourages economic development
of poor countries. The EU and its members
continue to contribute to alleviate poverty and
create sustainable growth in Asia region
Resources and market
Europe is an area which has disadvantages about natural
resources, climatic condition and population, but it has much
experiences of accumulating experience of development, appreciable capital and high
technology level. Viet Nam has strategic position, diversity of natural
resources, workforces, big market with demand of capital, technology
and management experience.
The Vietnamese community in Europe
There is a large number of Vietnamese people living in Europe. Vietnamese people in Europe are who were born in or immigrated to Europe, or moved to the EU in order to look up for jobs. Obviously, the demand for Vietnamese products is remarkably high. To meet the demand of this community benefits to both Vietnam and Europe.
01
02
03
04
Trade plays an important role in the relationship between Vietnam and EU. Currently the EU is the 3rd largest trading partner and the 2nd largest export market of Vietnam
The EU is one of the most important partnership and market
It’s one of the most important resource for Vietnam development
Investment from the EU
Poverty reduction and sectors setting the foundation for inclusive and sustainable growth, including good governance; social protection, health and education; supporting a favorable business environment and deeper regional integration; and sustainable agriculture and clean energy, helping to provide safeguards against external shocks and turn challenges of food security and climate change into opportunities for growth
Technical and financial co-operation
The EU is the world’s largest provider of financing for humanitarian aid operations. Altogether, the European Commission and the governments of the 28 EU Member States pay for more than 50% of the assistance that comes from official channels
Humanitarian Aid
.
Benefits for Vietnam
Challenges
Business
environment
Vietnamese
state
enterprises
The protection
of intellectual
property rights
Infrastructure
Debt crisis in
Europe
Popularity of
Vietnamese
products
Transportation
cost
Competitiveness
of other
countries
zerothe
Solution for businesses/enterprises
Decreasing transportation
costs
Enhancing competitive ability
Promotion strategies
Offering financial and advising supports
Solutions for Government
Promoting Vietnam’s images, especially through natural
wonders and diverse cultures, in the EU nations should be
intensified in order to push tourism
Establishing laws to ensure recognition to technology’s
origin
Establishing favorable rules and policies to encourage EU
enterprises and investors
Recommended