Hanoi (VNA) – The EU-Vietnam Investment Protection Agreement (EVIPA), which was signed on June 30 in Hanoi, not only marks a new step of development in the Vietnam-EU partnership and comprehensive cooperation but also will help improve the quality of foreign investment flows into Vietnam, according to Minister of Planning and Investment Nguyen Chi Dung.
Minister of Planning and Investment Nguyen Chi Dung (Photo: VNA)
The minister told the press that the EVIPA will drive forward economic restructuring in Vietnam, along with improvement of institutions and business environment, thus facilitating the operation of EU investors and helping Vietnam achieve balance between investment attraction and the protection of national and public interest, thanks to the more progressive stipulations compared to agreements of the same kind between Vietnam and EU member nations.
Dung said the FDI flow from the EU into Vietnam will also increase, prompted by greater liberalization of investment flow from the EU, particularly in the fields of specialized services such as finance, telecommunication, transport and distribution, or EU’s strong industries like processing, hi-tech manufacturing, clean and renewable energy.
Tighter rules on origin in the EVFTA will also prompted foreign investors invest in manufacturing goods in Vietnam to make use of the country’s advantage in accessing the EU market.
The minister went on to say that the EVIPA will support the development of the domestic private sector thanks to the pervasive effects from European investors’ FDI projects.
Besides, investors from non-EU countries will also come to Vietnam in search for opportunities to access the EU market.
But in order to make the best use of arising opportunities, Minister Dung emphasized thorough preparations on the part of State management agencies and business community in Vietnam.
The content of the EVIPA should be popularized among State agencies at all levels, business and trade organisations, the business community, especially small and micro enterprises, farmers and fishermen.
A roadmap should be built early for the effective enforcement of the agreement, while measures should continue to be implemented to improve the business environment and enhance the economy’s competitiveness.
The minister noted that the focus of the FDI attraction policy should be shifted from quantity to quality and high added value, with priority given to projects using hi-tech and modern administrative forms and having linkages with global supply chains that suit the country’s economic restructuring directions and the goal of sustainable development.
He said the Ministry of Planning and Investment is working on amendments and supplements to existing laws along with some new laws with a view to further facilitating market participation.
The minister also highlighted that the EVIPA marked a notable advance in preventing, curbing and settling disputes between the State and investors compared to other investment protection deals that Vietnam has already signed with EU member nations, thanks to more detailed and clearer commitments which ensure the consistent interpretation and application of the deal’s provisions, preventing disputes and in the case of disputes, helping arbitrators apply provisions in a transparent and consistent manners./.