Vietnam – EU to kick off FTA negotiations

Vietnam can look forward to free trade with the European Union (EU) as the two sides would officially kick off negotiations at the top level in 2011.That was one of three major goals proposed by the EU in its investment and collaboration plan with Vietnam this year, said the EU Ambassador and Head of the EU Delegation Sean Doyle this morning in Hanoi.

The EU-Vietnam Partnership and Cooperation Agreement (PCA), initialed by Prime Minister Nguyen Tan Dung and President Barroso of the European Commission in 2010, would also take effect after the official signing of the agreement planned to be carried out this year, he said.

In 2011, the EU also hoped to find a more efficient way of assisting Vietnam's development to accompany the country's rapid progress and its middle-income status, according to the ambassador.

Doyle said the Free Trade Agreement, after being implemented, would bring significant benefits to both Vietnam and its potential partners in the EU as trade would be carried out more reliably and there would be fewer risks under this legal framework. The agreement would reflect the trade relationship of Vietnam and the EU and consist of detailed trade rules on tariffs or anti-dumping regulations, for example.

"Services, a dominant sector of the world trade, will also benefit from this agreement," Doyle said.

Hungarian Ambassador to Vietnam Laszlo Vizi, whose country will manage the rotating, six-month "Home" Presidency of the EU ministers' meeting during the first half of 2011, said the EU committed to supporting the upcoming Asia – Europe Meetings (ASEM) in Budapest in June. During their term, Hungary will prioritise growth, jobs and social inclusion. It will also oversee other EU policies and initiatives to enlarge the EU to Croatia, (and facilitate ascension for Turkey).

The EU is Vietnam's biggest source of development assistance in grants, its second largest export market and its biggest source of committed Foreign Direct Investment (FDI). In 2010, exports to the EU reached US$12 billion, an increase of almost 16 per cent from 2009.