Business Business

01/10/2020 - 06:39

New wave of investment welcomed

The accession to the EU - Vietnam Free Trade Agreement (EVFTA) is of great significance for investment attraction. Director of the Department of Planning and Investment Nguyen Dai Vui emphasized in the conversation with Thua Thien Hue Weekend Newspaper.

Director of the Department of Planning and Investment Nguyen Dai Vui. Photo: ANH PHONG

According to Director of the Department of Planning and Investment, the COVID-19 pandemic exerts a huge impact on the production and import-export situation in Vietnam and worldwide. This year’s economic growth will not reach its target set.

In that context, the effectiveness of EVFTA is of major significance for helping to offset the economic downturn, helping enterprises regain the post-pandemic momentum of growth.

This is because the EVFTA is a comprehensive, high-quality agreement with the highest level of commitment and ensures a balance of interests for both Vietnam and the EU. The EVTFA offers many benefits especially export promotion, investment attraction, economic growth motivation, job creation...

The commitments to open markets intensively and extensively will create many opportunities for enterprises to increase export turnover and help diversify markets and export products, especially in potential areas such as textile and leather shoes, agricultural and aquatic products ...

Which sector is considered to have many prospects on the accession to the EVFTA, sir?

Agriculture is forecast to be one of the sectors that will benefit the most from the EVFTA. Many items will receive a tax reduction of 0%; For seafood, about 50% of tariff lines will be eliminated, the remaining 50% of tariff lines will also be eliminated in the 5-7 year roadmap.

As a result, the export growth rate of some agricultural products will increase significantly until 2025 thanks to the EVFTA. In another aspect, integration also generates more jobs, helps farmers shift from agriculture to other areas, contributing to improving the farmers’ life.

It is followed by the processing and manufacturing industry, especially the textile and garment industry. This is the industry the province has advantage and potential. It is forecast that textile-garment export turnover to the EU market will shoot up compared with the scenario without an agreement.

Textile and garment have many prospects in the market in the time to come

In terms of import, the enterprises will also benefit from the source of imported goods and raw materials with good and stable quality at more reasonable prices. Notably, machines, equipment, high technology / technique will help to increase productivity and improve product quality. In addition, the imported goods and services from the EU will exert competitive pressure on enterprises to strive to improve their competitiveness.

Is that an opening to attract FDI to the province?

“To date, there have been 111 FDI projects in the province, with a total registered investment capital of USD 3,828.17 million, 18 projects of which were invested from the EU countries, with a capital of USD 215 million (especially 2 Danish beer production projects with a total registered capital of USD 122,706 million and Hue Amusement & Beach Park project of Spain with a total registered capital of USD 47 million).

Carrying out the FDI investment attraction well will be the driving force behind the economy, not only contributing to the budget but also creating jobs for workers, ensuring social security,” Mr. Nguyen Đai Vui.

When we proactively join the EVFTA, an important partner in the world is formed; this will have the advantage of becoming an attractive investment destination for European enterprises. The investment environment will be more open and favorable because the more appealing export prospects will attract more FDI from the EU to Vietnam.

Especially for the areas such as service, finance, automobiles, processing and manufacturing, information technology, high technology, processed agricultural products...., the effectiveness of the Investment Protection Agreement (EVIPA) after being ratified by the National Assembly of all EU member countries also opens up new opportunities for Vietnam in general and Thua Thien Hue in particular in the coming time.

For effective enforcement of the EVFTA, according to you, what solutions and tasks should be implemented?

The Department of Planning and Investment is focusing on the important tasks, including enhancing competitiveness for enterprises. It implements the Government's Resolution No. 35 on supporting and developing enterprises; the program to support small and medium-sized enterprises in starting up, creating, joining sectoral associated clusters, value chains; supporting enterprises in implementing digital transformation programs...

In addition, it is imperative to strengthen the propaganda and dissemination of information on the EVFTA to the related stakeholders such as sectoral associations, cooperatives, business community and so on through the media, websites, training classes, workshops...

Does it mean that the investment promotion work also has to be changed to adapt to the new situation?

That's right! In addition to renovating and boosting the efficiency of investment promotion work, we will carry out the investment promotion programs on the basis of the tasks and solutions in accordance with the Resolution 50 by the Politburo on the orientation, completion of institutions and policies, enhancement of the quality and efficiency of foreign investment cooperation to the year 2030

Accordingly, the main focus is on the areas where the EU has strengths and the province has potentialities such as tourism service, high-tech agriculture, processing and manufacturing industry, high-tech use, clean energy, renewable energy, high value added projects which have the spillover effects, connect the global production and supply chains.

Thank you sir.