EuroCham facilitates high-level dialogue on enhancing economic cooperation between Vietnam and Europe

EuroCham, in collaboration with the Ministry of Foreign Affairs (MOFA) and the Delegation of the European Union to Vietnam, convened a high-level meeting on June 21 with the objective of bolstering economic cooperation between Vietnam and Europe. It took place at the Mazars office in Hanoi, serving as a platform for direct engagement and constructive dialogue between Vietnamese business associations and representatives from European countries.

Nguyen Minh Vu, the Standing Vice Minister of MOFA, expressed the Vietnamese government’s appreciation for the cooperation between Vietnam and the European Union. Highlighting a mutual commitment to addressing climate change, promoting green growth, and ensuring sustainability, Vice Minister Vu commended the Vietnamese government’s endeavors in cultivating a transparent, responsible, green, and sustainable economy. He emphasized the seminar’s significance as an effective communication channel, facilitating direct interaction between Vietnamese business associations and representatives from EU countries to ensure the successful implementation of new regulations.

H.E. Giorgio Aliberti, the Ambassador of the European Union to Vietnam, alongside Gabor Fluit, Chairman of EuroCham, and European ambassadors, reiterated Team Europe’s commitment, as well as that of the business community, to support and collaborate with Vietnamese enterprises in adapting to the new regulatory framework.

Dr. Carsten Schittek, the Minister Counsellor and Head of Trade Section of the EU Delegation to Vietnam, delivered a comprehensive presentation on vital EU regulations, focusing specifically on the Directive on Corporate Sustainability Due Diligence and the Carbon Border Adjustment Mechanism (CBAM). Dr. Schittek provided an extensive overview of the legislation, current circumstances, and key aspects of the OECD Due Diligence Guidance, among other pertinent topics.

During the session, Mr. Fluit underscored the substantial documentation required to ensure compliance with these regulations. European companies are facing mounting pressures in terms of disclosing company objectives, adapting to new regulatory requirements, and maintaining partnerships with Vietnamese enterprises. Mr. Fluit further emphasized the pivotal role of the upcoming GEF 2023 and GEFE 2024 events in promoting green economic engagement between Europe and Vietnam.

Representatives from various business associations shared their perspectives on the new regulations. Mr. Vu Duc Giang, Chairman of the Vietnam Textile and Apparel Association (VITAS), acknowledged the efforts made by textile enterprises in adhering to regulations stemming from the implementation of free trade agreements. These regulations encompass considerations for human rights, including the eradication of child labor, and mitigation of environmental impacts, such as phasing out the use of fossil fuels and ensuring water protection.

However, Mr. Giang emphasized that corporate due diligence plays a secondary role in securing orders within the textile industry, as factors such as price, timely delivery, and product quality remain the primary determinants. He also extended an invitation for EuroCham board members, EU Delegation officials, and European country ambassadors to visit the VITAS factory in Thai Binh on November 14, 2023.

Representatives from Vietnamese trade associations expressed gratitude for the support provided by the EU Delegation, EuroCham, and European country ambassadors. These organizations have played instrumental roles in assisting Vietnamese businesses in accessing information, overcoming obstacles, and navigating the complexities associated with compliance.