EuroCham Participates in EVFTA Roundtable on the Digital Economy

On November 5, the Delegation of the European Union to Vietnam, the Vietnam Software and IT Services Association and EuroCham organised a roundtable on the digital economy, digital transformation in Vietnam and the EVFTA. The event attracted more than 100 attendants from ministries, government agencies, EU member states, associations, academic institutions, and businesses.

During the event, participants discussed the challenges and opportunities of Vietnam’s digital economy The EVFTA was also high on the agenda, including its role in spurring Vietnam’s digital transformation. Also at the seminar, the panelists held a discussion themed “Vietnam’s Digital Economy and the EVFTA: Potential Impact, Prioritised Policies, and Actions to Maximize its Benefits”. 

In his opening statement, Giorgio Aliberti, EU Ambassador to Vietnam, said that the COVID pandemic has highlighted the importance of digitalisation more than ever before. Vietnam is one of the fastest-growing economies in the world and it is also an attractive market for European businesses. Nowadays, we can transport things, ship goods, buy online, and do procedures quickly thanks to the advancement of digital technology. With these changes, processes will become less complicated and less time-consuming. And the EVFTA is a very promising platform for sharing common values, not only economic benefits but also a solution for both sides to win.
    

Lead economist of the World Bank in Vietnam, Jacques Morisset, pointed out three megatrends which will have huge impacts on the economy: (de)globalisation, contact-free, and value of life. Vietnam is moving toward a contact-free economy and this trend has been accelerated by COVID-19. However, beyond tools, changes in mindset are required if Vietnam wants to create the foundations for future growth in a digitalised world.

Representing EuroCham, Mr. Alexandre Sompheng, Chairman of the chamber’s Digital Sector Committee, shared that the EVFTA will certainly bring about positive results, but opportunities always come with challenges. For Vietnamese enterprises, the challenge lies in how to meet strict international standards related to confidentiality, intellectual property and traceability of goods.

 

Regarding the exchange of business data, there is a need to facilitate the establishment of a legally binding agreement in the context of the GDPR between a Vietnamese and a European company. Besides the government's efforts, businesses need to be more active and proactive in finding solutions to these problems.

In recent years, Vietnam’s digital economy has been booming and is the second-fastest-growing market in Southeast Asia. It is expected to benefit from the recently-implemented EVFTA and from the impact of COVID-19.

 The internet economy of Vietnam has reached a value of $12 billion in 2019, with an annual growth rate of 38 percent since 2015, and is expected to surge to $43 billion by 2025.