Page 71 - Ebook HTKH 2024

international integration process, which was implemented in the spirit of the Resolution
of the 6th Party Congress in December 1986.

The Vietnam - EU cooperation relationship was initiated on humanitarian issues
overcoming the consequences of war, then leading to the signing of the Framework
Agreement on Cooperation between the two sides (FCA) in July 1995. Since then, the
EU has accompanied Vietnam throughout the challenging period of integration with
many important support activities.
Vietnam and the EU currently have a very deep and extensive relationship,
typically: The Vietnam - EU Comprehensive Partnership and Cooperation Agreement
(PCA), effective since 2016, with substantive cooperation mechanisms in the fields of

politics, economics, trade, investment, sustainable development, security-defense, rule
of law-governance; the Free Trade Agreement (EVFTA) effective from August 1, 2020
and the upcoming Investment Protection Agreement (EVIPA). Between the two sides,
there is also the Voluntary Partnership Agreement on Forest Law, Governance and
Trade (VPA-FLEGT) effective in June 2019; the Framework Agreement on Defense-
Security Cooperation (FPA) in October 2019; The annual Human Rights Dialogue

mechanism... These cooperation frameworks have made Vietnam one of the Asian
countries with the most comprehensive and extensive relations with the EU, the only
ASEAN country with all pillars of cooperation with the EU.
With a market of more than 500 million people, accounting for 22% of the world's
GDP, and an average income per capita of 36,580 USD/year, the EU is a leading
economic partner of Vietnam, one of the three most important trade partners and export
markets of Vietnam (after China and the United States). Vietnam-EU trade turnover has

increased 17 times over the past 20 years, reaching 56.45 billion USD in 2019 and
Vietnam is the EU's second largest trade partner in ASEAN (after Singapore), of which
Vietnam exported 41.54 billion USD of goods to the EU and imported 14.9 billion USD
from the EU. The EU has always been Vietnam's second largest trade surplus market
(after the United States), with increasing volume, helping Vietnam offset the large trade
deficit with China, South Korea, etc.

The EU is among the five largest foreign direct investors in Vietnam (along with
South Korea, Japan, Singapore and Taiwan - China). The EU's investment trend is
mainly focused on high-tech industries, recently tending to develop into service
industries (post and telecommunications, finance and banking, office leasing, retail,
etc.). EU investors have advantages in technology, actively contributing to technology
transfer, creating a number of new industries, occupations and new products with high
technology content, creating more new jobs. Vietnam's investment in the EU is not
much, but these investment projects have contributed to helping Vietnamese enterprises

exploit business advantages, access and expand the EU market with high purchasing
power. For the above reasons, Vietnam needs to prioritize attracting FDI into high-tech,
advanced industries and fields, environmentally friendly technology, clean energy,
renewable energy; high-tech agricultural production, smart agriculture;

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