Vietnam’s calculation of the localization rate should be consistent with international practices, which are based on the proportion of domestically generated value rather than the parts produced within the country.
2022 would remain to be a favorable year for trade, especially as enterprises have improved their resilience and several economic sectors continue to benefit from CPTPP, EVFTA, and RCEP.
Trade turnover this year could be well over US$667 billion, representing an increase of 22.4% year-on-year, which resulted in a surplus of $3 billion.
Both the EU and Vietnam have in hands required tools to ensure the bilateral relations’ long-term prospects.
Free trade agreements like CPTPP and EVFTA are driving Vietnam’s trading performance during a difficult economic year.
Diversification of export markets and higher product quality helped Vietnam maintain the agricultural sector’s resilience against the pandemic and continue its upward trend.
Intellectual property, labor rights, and environmental protection are issues that Vietnam should focus on to meet requirements from the EU-Vietnam Trade Agreement.
The EU-Vietnam Free Trade Agreement (EVFTA) and the upcoming EU-Vietnam Investment Protection Agreement (EVIPA) would lay the foundation for Vietnam to continue attracting foreign direct investment (FDI) from Europe.
Vietnam currently makes up 1% of total EU imports of vegetables and fruits.
Vietnam’s export turnover may expand by 10% this year, exceeding the original target of 4-5% set by the Government.