Over recent times, Vietnamese exports to the EU market have increased sharply, particularly to Britain, France, Germany, Sweden and the Netherlands. Industrial exports rose slightly, while farm products and seafood made up more than 85 percent of Vietnam’s export turnover. The country imported machines, chemicals, garment materials, leather, steel, medicines and fertiliser from the EU market.

Vietnam and the EU concluded bilateral negotiations on Vietnam’s accession to the World Trade Organisation (WTO) during the ASEM 5 Summit in October 2004. This breakthrough made positive impacts on bilateral negotiations between Vietnam and other partners.

Since Vietnam issued the Law on Foreign Investment in December 1987, EU-member countries have invested in Vietnam. In 2005, the EU’s direct investment in Vietnam increased by 15 percent compared to the previous year, with 500 projects worth approximately US$7 billion. This demonstrated that the co-operation opportunity in trade and investment between Vietnam and the EU is great. With such a development impetus, investment from the EU to Vietnam will continue to increase rapidly in the coming years.

There are bright prospects for Vietnamese exports to the EU. Dr. Markus Corano, Ambassador and head of the European Commission (EC) mission in Vietnam, said: "Vietnamese export items are subject to preferential tariffs under the Most Favored Nation (MFN) status. Accordingly, unsensitive goods will enjoy a 3.5-percent tax rate, while sensitive ones will face a 20-percent tax rate. In addition, thousands of Vietnamese products will also enjoy tax exemptions when they are exported to the EU market.

Chairman of the European Chamber of Commerce (EuroCham), Alain Cany said Vietnamese enterprises should develop negotiation skills in doing business with European businesses. They should conduct several surveys to penetrate European markets. At the same time, they should respond quickly to proposals from foreign customers. When exporting to EU markets, Vietnamese enterprises should gain prestige from customers, and it is important to have a certificate of origin and timely delivery.

Vietnam has improved the role of a law-governed State in the fields of economics, created a legal framework with an attractive investment environment. Besides, the State is promoting activities relating to court system, trade and investment, and creating a mechanism for lawyers to operate effectively to cope with economic cases.

The country’s short-term task is to boost the renovation of State-owned enterprises, and reform the banking system and stock market. Fulfilling the task will help attract foreign investment into Vietnam and create an equal playing field among private enterprises and State-owned enterprises. At the Vietnam-EU Business Forum, Deputy Prime Minister Vu Khoan also affirmed that the EU is a leading important partner of Vietnam in the field of trade, investment and official development assistance. The EU is also the first partner to reach an agreement on Vietnam’s accession to WTO. Therefore, Vietnam has set up a comprehensive development strategy with the EU.

In conclusion, the EU is a leading important partner of Vietnam and Vietnam also attaches importance to co-operation with the EU.