11:04 | 03/02/2017 Economy
Two waves of European investment will hit Vietnam after the European Union – Vietnam Free Trade Agreement is signed, a foreign expert has forecast.
|Illustrative image (Source: VNA)|
Vincent Repay, who has nearly 30 years of experience in international contracts and over 10 years training Vietnamese officials in market economics, said the first investment wave will be short-term with the shifting of European manufacturing facilities to Vietnam to use the country’s competitive costs and young workforce, and take advantage of a lack of import tariffs in Europe.
The second wave will be medium and long term, he said, adding that European firms will produce items of demand for Vietnam by improving their manufacturing capacity.
He advised Vietnam to thoroughly check the quality of materials used for production scheduled for export while heeding quality management and accessing training offered by EU nations.
Trade ties between Vietnam and the EU have been growing in recent years. Two-way trade between the two sides averages 40 billion EUR each year and is expected to hit 100 billion EUR by 2025.