On 20 November 2024, EuroCham Vietnam hosted a high-level dialogue with Mrs. Dora Correia, Director at DG Trade, European Commission, and her delegation to address critical trade and investment challenges affecting Vietnam-EU economic relations. Led by EuroCham Vice Chair Mr. Jean-Jacques Bouflet, the meeting brought together chairs and representatives from key EuroCham Sector Committees to discuss actionable solutions across various sectors.
Attendees include:
- DG Trade Delegation – led by Mrs. Dora Correia, Director at Director-General of Trade, European Commission, Deputy Director General in charge of Directorates B and C > Africa, Caribbean and Pacific, Asia (II), Trade and Sustainable Development, Green Deal (TRADE.C)
- EuroCham Vietnam Delegation – led by Mr. Jean-Jacques Bouflet, EuroCham Vice Chair in charge of Advocacy.
- Mrs. Diep Truong, EuroCham Advocacy Manager
- Mr. Olivier Fages, Chair of EuroCham Wine and Spirits Sector Committee (WSSC)
- Ms. Giang Trinh, Member of WSSC
- Darrell Oh, Chair of EuroCham Pharma Group (PG)
- Ms. Thuy Nguyen, Director of EuroCham Pharma Group
- Andreas Klingler, Chair of EuroCham Mobility Sector Committee (MSC)
Wine and Spirits Sector
The Wine and Spirits Sector Committee (WSSC) emphasized the impact of the proposed Special Consumption Tax (SCT) increase, set for review by the National Assembly later this month. The proposed hike could negatively affect Vietnam’s hospitality and tourism industries, drive unrecorded alcohol use (currently 63% of consumption), and undermine EVFTA commitments. The WSSC reiterated its long-standing recommendation for a hybrid taxation method and urged postponing the SCT implementation to 2027, allowing businesses time to adapt. EuroCham also advocated for responsible consumption policies and measures to address illicit trade in Vietnam’s alcohol market.
Pharmaceutical Sector
The Pharma Group addressed critical barriers to market access in Vietnam’s pharmaceutical sector, valued at €8.11 billion. Lengthy drug approval processes—often taking 8-9 years—limit patient access to innovative medicines, with only 9% of global launches available in Vietnam. Despite progress under the EVFTA, challenges persist in regulatory data protection, procurement mechanisms, and administrative burdens. The group called for closer collaboration between Vietnam’s Drug Administration of Vietnam (DAV) and the European Medicines Agency (EMA), supported by DG Trade’s facilitation. Recommendations also included capacity-building initiatives and enhanced dialogues to improve policy implementation and align with Vietnam’s aspirations to join the global pharmaceutical supply chain.
Mobility Sector
The Mobility Sector Committee (MSC) highlighted inequities in Vietnam’s vehicle registration fee policies, which disproportionately favor CKD vehicles over CBU imports. This imbalance undermines fair competition and EVFTA principles. MSC representatives also raised concerns over inconsistent homologation standards, despite Vietnam’s commitments to align with UNECE standards. To promote green growth, EuroCham called for urgent standardization and expansion of Vietnam’s electric vehicle (EV) charging infrastructure. The current lack of interoperability between charging stations risks slowing EV adoption and hindering Vietnam’s green transition goals.
Conclusion and Next Steps
The meeting reflected the shared commitment of EuroCham and DG Trade to address trade challenges while fostering sustainable growth. Mrs. Correia affirmed DG Trade’s support for enhanced EU-Vietnam collaboration, particularly in aligning Vietnam’s policies with EVFTA commitments. EuroCham and its Sector Committees remain dedicated to advancing practical, mutually beneficial solutions to strengthen the Vietnam-EU partnership.
