The delegation, including 47 representatives industries from the EU, led by Antonia Tajani,  the European Commission’s Vice President and acting commissioner for the European Enterprise and Industry visited the country on November 12 and 13.

“European entrepreneurs want to invest in Vietnam. They want to organise joint ventures with Vietnamese companies. For us, the agro-food, chemical, mechanical, and tourism sectors are the most important for good cooperation in Vietnam,” Tajani said at a press conference held in Hanoi on November 13.

Trade and investment relations between the EU and Vietnam have been steadily growing over recent years. European companies consider Vietnam a potential production base, a lucrative and growing market and one that has the potential to be a gateway to an increasingly integrated ASEAN market.

However, when compared to Asian competitors, the share of European trade and investment is slowly falling, as small to medium-sized European enterprises (SMEs) face difficulties in establishing a permanent foothold in Vietnam.

In order to further help EU businesses operate in Vietnam, Tajani was part of the launch ceremony of the new EU - Vietnam Business Network in HCM City.

The two sides have also signed a Letter of Intent to establish a dialogue on policy for SMEs to ensure better cooperation between export-oriented SMEs. The two sides will exchange information to create SME friendly legislation, public-private business consultations and cooperation in research and innovation. They will also exchange the best practices for SME internationalisation and cooperation and the development of strong business associations.

Vietnam is becoming an increasingly important trading partner for the EU. Last year, the EU surpassed the US to become the most important export market for Vietnamese products. A large proportion of the value of EU’s exports to Vietnam comes from machinery and electrical equipment (22.3%), as well as vehicles and transport equipment (20.9%).

Currently, the EU is Vietnam’s second largest two-way trade partner, after China, with an estimated trade deficit last year of over EUR13 billion (USD17.5 billion). Vietnam’s main export items to the EU include agricultural products, footwear and clothing accessories.

Negotiations for a bilateral Free Trade Agreement (FTA) between the EU and Vietnam were launched in June 2012. The two sides have recently finished the fifth round of negotiations. “We want to reach our set goals by the end of next year. To date, there have remained two negotiating issues yet to have been completed,” he added.