HCM City (VNA) – Reforming administrative proceduresand improving infrastructure quality are decisive factors in capitalising onthe EU-Vietnam Free Trade Agreement (EVFTA), heard a dialogue between officialsof Ho Chi Minh City and the European Chamber of Commerce in Vietnam (EuroCham)on July 28.

EuroCham Vice Chairman Jean Jacques Bouflet saidover the past years, Vietnam has made considerable strides in adjustingbusiness conditions, improving the investment climate and modernising the legalframework to seize new investment and business opportunities. 

The business climate index recently unveiled byEuroCham showed EU businesses’ growing confidence in the country’s development,he said, adding that the EVFTA, already ratified and about to become effectivein August, could be considered a vote of confidence from the EU for Vietnam’sinternational integration efforts.

As the coronavirus outbreak has been causingserious losses to the global economy, the EVFTA is expected to create a momentumfor trade and investment in the post-pandemic period.

However, to implement this deal effectively togain economic benefits and strongly attract FDI from the EU, Vietnam needs tostep up administrative reforms and trade facilitation, according to Bouflet.

Bob Fletcher, deputy head of the Transportationand Logistics Sector Committee at EuroCham, noted although Vietnam has madeefforts to streamline administrative procedures and align its legal documentswith international practices, there remain many problems in reality, such asthose related to the granting of certificates of origin and the customssector’s management mechanism.

Meanwhile, Alexandre Sompheng, head of the chamber’sDigital Sector Committee, pointed out that the country is working hard todigitalise its economy and boost IT application to socio-economic activities.Yet, some local banks still refuse to accept contracts with electronicsignatures and ask for paper contracts and photocopies which pose higher risksof being falsified, thus confusing many EU firms.

Given these, EU businesses hope that Vietnamwill enhance the consistency and efficiency in policy implementation, step upthe building of mechanisms for self-certification of product origin, and createconditions for enterprises to receive preferential treatments in line withcommitments, especially when the EVFTA is about to come into force soon.

Aside from administrative reforms, EU firms alsocalled for promotion of infrastructure and logistics quality to better servecommercial activities, particularly e-commerce that is developing strongly.

This will help facilitate not only theirdistribution of products but also the flow of goods in the country, therebysubstantially cutting down transportation expenses.

At the dialogue, Chairman of the HCM CityPeople’s Committee Nguyen Thanh Phong said the EU has been an importanteconomic partner of his city for many years, and it is currently the third largestimporter of goods from the southern metropolis of Vietnam.

However, the revenue and market share of HCMCity’s exports to the EU have yet to match potential, he said, adding that asthe EVFTA is about to take effect soon and promises bright export chances, itis necessary to swiftly remove barriers in terms of mechanism and policy.

Phong affirmed that municipal authorities willtake into account EU enterprises’ opinions when building action plans and quicklyaddress local shortcomings in policy implementation. They will also submitproposals to higher authorities on issues beyond the city’s jurisdiction so asto create the best possible conditions for foreign businesses, including EUones, to operate in the long term./.