The EVFTA fourth anniversary is on August 1.

The EU has invested €28 billion (~$30.3 billion) in 2,450 projects in Vietnam, the EuroCham Business Confidence Index (BCI) survey conducted by Decision Lab found.

EU investors added €800 million in foreign direct investment (FDI) between January and September last year.

The country’s exports to Europe rose from €35 billion in 2019 to over €48 billion in 2023, with pronounced growth in several, including textiles and footwear, the survey said.

However, the rise in EU exports to Vietnam has been far more modest—from €11 billion to only €11.4 billion over the same period, adding to a substantial trade imbalance.

Hindrances for European businesses include complex regulatory requirements and a lack of recognition for international standards by Vietnamese authorities, a Vietnamese news agency reported.

Moreover, stakeholders lack understanding of the agreement, and there are customs valuation issues, opaque clearance procedures and technical barriers, particularly in the areas of certification and product testing, the survey report said.

EuroCham Vietnam is actively championing the full ratification of the EU-Vietnam Investment Protection Agreement (EVIPA) as a critical step in unlocking the FDI potential of the EVFTA.

While EU institutions have approved the EVIPA, it requires individual ratification from all 27 member states.

Fibre2Fashion News Desk (DS)