Vietnam is not only an important partner of the EU in the Indo-Pacific region but also a very ambitious partner that has set significant domestic and international goals.

Vice President of the European Commission (EC) and EU Trade Commissioner Valdis Dombrovskis came to Vietnam in mid-November with many initiatives to promote bilateral cooperation. VietNamNet would like to introduce his views in promoting the bilateral cooperation relations.

Climate change is the typical example showing that all of us are on the same boat. The discussion about green economy and our cooperation opportunities is significant.

Vietnam is an ambitious partner. First of all, it has set the goal of becoming a developed country by 2045. Second, it wants to reduce net emissions to zero by 2050.

And I believe that the EU is in the unique position to help Vietnam obtain the goals.

EU-Vietnam trade

Vietnam has achieved rapid growth over the last 40 years. According to the International Monetary Fund (IMF), Vietnam gained the lower middle income level in 2010 and it has been witnessing impressive growth since then.

Of course, economy is something very complicated and its performance depends on many factors. But I am sure about one thing: trade could be a very strong driving force for the economy if there are suitable conditions.

Though EVFTA (EU-Vietnam Free Trade Agreement) just took effect in 2020, this is really a success story.

The agreement helped the trade flow increase by 30 percent in 2022. Thanks to EVFTA, Vietnam’s total export turnover to the EU increased from 34.5 billion euros in 2020 to 51.5 billion euros in 2022. This has turned Vietnam into one of the EU’s leading goods trading partner.

Meanwhile, the service trade value reached 7.2 billion euros in 2021. Vietnam can get big benefits from the FTA implementation.

We can make trade gain bigger successes if we further promote it. We believe that Vietnamese partners will implement all of the commitments in automobile industry, agriculture and food. We also believe that Vietnam will soon set a legal framework which is predictable and practical, in the field of pharmacy. Labor rights are also a factor that helps enhance the power of trade.

We appreciate the ongoing reforms in Vietnam in terms of labor principles, especially the approval of 25 ILO (International Labor Organization) conventions 

Nowadays, FTAs not only mean tariff cuts and quotas. They also serve as tools for involved parties to cooperate to solve global challenges. They talk about clean technology and flexible supply chains and lay a foundation for cooperation.

Cooperation in green transition

The year 2050 will be an important milestone for both the EU and Vietnam.

For the EU, 2050 proves to be the year of the most important commitments of the European Green Deal (EGD). The EU aims to become the first climate neutral continent in that year.

Meanwhile, Vietnam strives to become a country with net emissions of zero by 2050.

Green transition is an important field in which Vietnam and the EU can work together. That is why the EU and Vietnam need to support each other to accelerate the process of shifting from fossil fuels to renewable energy.

At the EU-ASEAN Summit in Brussels last year, the EU and Vietnam signed JETP (Just Energy Transition Partnership), marking an important milestone in the two countries’ mutual efforts to adapt to climate change.

The EU also wants the cooperation in green technology. It has developed green technology of its own and it wishes that it can share the technology with those who want to use it effectively.

The EU gives support in agricultural transformation in Mekong Delta. It also cooperates with EVN to implement energy transition projects. 

The EU has pledged the grant of $16 million for technical assistance. And European investors are willing to make investment, the country with young population, talented workforce and important geopolitical position, provided local conditions are favorable.

Global Gateway project

I would like to talk about one of the EU’s most important initiatives which can play a very important role in all these issues – Global Gateway.

In order to overcome the challenges of the transition, we need huge investments in infrastructure and human resources. And it is necessary to diversify investment sources. A reasonable legal framework to attract investments will be the answer in current conditions. This is why Global Gateway is needed.

Global Gateway is the EU’s strategy to connect the world in a sustainable way. In Vietnam, within the framework of Global Gateway, support has been provided with the focus on hydropower, near-shore wind power, and the first pumped storage hydropower station in Ninh Thuan.

Viet Nam Net