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COVER STORY
TRADE BY 2030
Year-on-year
2030 forecast $535 billion increase to 2030

7.0%

India Mainland China US
Key opportunity corridors

Source: General Statistics Office (GSO)

ments along with roadmaps. Import duties OVERCOMING THE OBSTACLES not eradicate it or live in lockdowns forever,
will continue to be eliminated or reduced Though the prospects are positive, and it is inevitable that new variants will
in partner countries, creating more com- EuroCham research points out that there emerge. But this should not knock us off
petitive advantages for exports. The struc- are still many challenges to achieving trade the positive course that the government
ture of exports has changed significantly, goals. Vietnam’s first challenge in the post- has set: learning to live with the virus.
from labor-intensive industries such as pandemic period will be adapting its trade Other stakeholders have also made
textiles and garments, footwear, fisheries, and investment environment to the realities recommendations to the government.
and mineral resources such as coal and of the “new normal”. First and foremost, According to KorCham, in the short term,
crude oil to high-tech commodities such continued travel restrictions inhibit not just if Vietnam wants to maintain trade
as phones, computers, and machinery. the aviation and tourism industries but all growth, it needs to create a favorable
Mr. Cany also noted that the Prime Min- sectors with foreign investment. For instance, environment for startups through fiscal
ister is targeting economic growth of between it remains difficult for international com- tools such as easing or allowing the delay
6 and 6.5 per cent in 2022. “This is an ambi- panies to bring shareholders and technical of financial obligations. In the long term,
tious but achievable aim, and one which specialists to Vietnam, with time-consuming the Vietnamese Government will need
requires Vietnam to grasp all the opportu- and burdensome procedures leading some to come up with legal support measures
nities on the table,” he added. “The EuVFTA investors to postpone their plans. Therefore, to create new growth engines for indus-
gives it a chance to boost trade with one of a fast-track procedure for the entrance of tries such as high technology and the
the world’s largest trading blocs. However, vaccinated investors and experts would digital economy in the future. “I hope
for the agreement to live up to its full poten- help foreign companies make a full contri- that the government will become a model
tial, we need to ensure that certain ‘teething bution to Vietnam’s future growth. in pandemic prevention next year, and
problems’ are resolved.” For instance, in Second, making some of the interim at the same time I think that in order to
some sectors - such as pharmaceuticals and measures introduced to support businesses grow trade, Vietnam needs to improve
automobiles - the implementation periods during the pandemic permanent and accel- the quality of its exports,” Mr. Hong Sun
intended to give Vietnam time to adjust to erating their implementation would help said. “We expect flexible policies from
the new tariff regime have, instead, been spur economic development. For instance, the government in the context of Covid-
used to erect new barriers to trade. This the greater use of e-government solutions 19, such as easing pandemic prevention
undermines the spirit - if not quite the letter such as digital signatures helped to reduce measures and implementing direct edu-
- of the agreement, he said, and risks the contact during the pandemic and also led cation activities.”
confidence of international business that to greater efficiencies for business while Mr. Cany also said that Vietnam should
has taken so long to build. speeding up administrative procedures. step up its digital trade promotion policies.
Amid Covid-19, visits by senior officials Therefore, EuroCham encourages the gov- “The world remains unpredictable, at least
from Vietnam and South Korea to each ernment to continue this positive roll out of for the foreseeable future, but we can be
other and effective and practical exchanges e-government processes. This could reduce sure that the shift towards digital - which
and cooperative activities between central the bureaucratic burden on both enterprises accelerated during the pandemic - is now
and local governments are increasing, and authorities, giving companies more a permanent feature of business activities,”
strengthening trust. Mr. Hong Sun believes time and capital to invest in their operations he added. “In this light, traditional trade
that imports and exports between the two which, in turn, will contribute to growth. promotion activities should be moved
countries will also continue to grow signif- Third, with new variants emerging online, not least because large, in-person
icantly in the time to come. “To achieve around the world, it is essential for Vietnam gatherings remain problematic. This would
this, I think it is necessary to further expand to maintain its ambitious vaccination pro- help to better connect domestic and foreign
the terms of the FTAs between the two gram. Covid-19 will be with us for the enterprises and, in turn, help to boost
countries,” he added. foreseeable future, Mr. Cany said. We can- trade in this post-pandemic period.” %

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