INSIDE THIS ISSUE

Bnh Dng Province p.7

VND Depreciation p.8
Green-Biz 2011 is coming
to HCMC p.11
EuroCham and Chairman
receive awards p.16
EuropeanFood Festival in
HCMC p.16
EuroCham AGM p.17
EU Vietnam Free Trade
Agreement p.18
First Quarter 2011 Issue 19
Message from the Chairman
Dear EuroCham Members,
In this Newsletter, we would like to focus on
the recent Vietnam Provincial Competitiveness
Index Report (PCI) that ranks the business
climate in each of the countrys 63 provinces.
We will also kick-start a series on different
provinces in Vietnam with a focus on Binh
Duong province in this Newsletter. As usual,
you will find the latest updates on our advocacy
efforts and other recent EuroCham events
and activities.
I am pleased to report that in January 2011, EuroCham has been
awarded the Prime Ministers Certificate of Merits for its "active contribution
to the development of economic relations between Vietnam and European
countries". This makes EuroCham the first foreign chamber of commerce
in Vietnam to receive the prestigious award.
At this years AGM held on March 3rd, a new EuroCham Executive
Committee has been elected. We would like to thank our outgoing
Vice-Chairman Ashok Sud for his precious support for the chamber over
the years and wish him the very best for the future. We would also like
to bid farewell to Executive Committee members Tim Baxter, Harry
Beirnaert, Thomas Gruzke, Oliver Massmann, Michele Morichi and
Jeffrey Alan Noble and thank them for all their great support over the last
year.
I would also like to take this opportunity to extend a warm welcome to
our new EuroCham Executive Committee members: Tomaso Andreatta
from Intesa Sanpaolo, Erdal Elver from Siemens Ltd. Vietnam, Kristof
Claes from Brand Partner, Elmar Dutt from Tanner Vietnam, Costantino
Sambuy from Piaggio Vietnam, Andreas Stoffers from Deutsche Bank
AG and Louis Taylor from Standard Chartered Bank. You can see the
full 2011 Executive Committee on page 17.
I would also like to draw your attention to Green-Biz 2011: Green-Biz
2011 will be the biggest ever exhibition showcasing European Green
Business Solutions for Vietnam. Green-Biz 2011 will share knowledge
and ideas on European Green Business Solutions for Vietnam and will
focus in particular on sustainable cities and energy efficiency. Find more
information about Green-Biz 2011 on page 11 of this Newsletter.
Last, but not least, we would like to thank all our members and partners
for joining us over the years and we hope you will continue to support us
to make this year the our most successful yet!
With kind regards,
Alain Cany, Chairman
Chair
Alain Cany, Jardine Matheson
Vice Chairs
Tomaso Andreatta, Intesa Sanpaolo
Erdal Elver, Siemens Ltd. Vietnam
Christophe Hirtz, Sanofi-Aventis
Preben Hjortlund, HITC
Le Duy Thanh, Shell Vietnam
Treasurer
Hielke Booijink, TNT Vietnam
Committee Members
Peter Born, Commerzbank AG
Jean-Michel Caldagues, EADS
Kristof Claes, Brand Partner
Elmar Dutt, Tanner Vietnam
Olivier Jacquet, Schneider Electric
Wieger Otter, VC Invest
Costantino Sambuy, Piaggio Vietnam
Andreas Stoffers, Deutsche Bank AG
Louis Taylor, Standard Chartered Bank
Executive Director
Dr. Matthias Dhn
The EuroCham newsletter is published
quarterly by the European Chamber of
Commerce in Vietnam with offices at:

G/F, Sofitel Plaza Hanoi
1 Thanh Nien Road, Ba Dinh District
Hanoi, Vietnam
Tel: (84-4) 3715 2228
Fax: (84-4) 3715 2218
Email: info-hn@eurochamvn.org
and:
EuroCentre
49 Mac Dinh Chi Street, District 1
Ho Chi Minh City, Vietnam
Tel: (84-8) 3827 2715
Fax: (84-8) 3827 2743
Email: info-hcm@eurochamvn.org
Hotline: (84-8) 3997 1263
Website: www.eurochamvn.org
Editorial contact
Jan Wiehler
Marketing and Services Manager
EuroCham (Ho Chi Minh City)
Tel: (84-8) 3827 2715
Email: services@eurochamvn.org
Cover photo by Christian Berg:
www.christianbergphoto.de
The Provincial Competitiveness Index (PCI) Report 2010
The PCI ranks the business climate in each of Vietnam 63 provinces based on a
robust survey of the private sector business community the report is based on inputs
from over 7,300 Vietnamese enterprises and - for the first time - also on inputs from
over 1,155 foreign invested enterprises.
1. Overview
The 2010 PCI Report was launched in Hanoi on 16
th
March and HCMC on 18
th
March. The PCI ranks the business
climate in each of Vietnam 63 provinces. On occasion of the PCI Launch in HCMC, EuroCham has also held on 18
th

March a joint luncheon with AmCham, presenting the findings of the PCI 2010. Based on a robust survey of the private
sector business community, the 2010 PCI Report is the sixth annual PCI and provides information valuable to many
different audiences. The 2010 PCI Report is based on inputs from over 7,300 Vietnamese enterprises and for the first
time also on inputs from over 1,155 foreign invested enterprises. What is the PCIs main use? At the central government
level, it can provide a valuable comparison of provincial performance in different parts of the country and help identify
areas where the central government may wish to focus greater attention. At the provincial level, it provides information
on where a province is excelling in economic governance, as well as, areas where improvement is needed to become
more competitive and achieve greater economic growth. For investors and businesses considering investment or
expansion of existing investments in Vietnam, it provides valuable information regarding the business climate in each
of Vietnam 63 provinces.
2. The Ranking of Provinces 2010
Da Nang city continued its reign as the top-performing
province with a weighted score of 69.77- its third year in a
row at the top. But, Da Nang firms rated the province
worse than the previous year on average, recording a
weighted PCI score that was 6.19 points lower than in
2009. Lao Cai and Dong Thap round out the Excellent
Tier with scores of 67.95 and 67.22 respectively. Surprisingly,
after three consecutive years at the top of the rankings
(from 2005 to 2007) and two subsequent years in second
place, Binh Duong suffered an 8.28 point drop and fell to
fifth place. This is also the first time since the PCI initiation
five years ago that Binh Duong has fallen out of the
premier group of performers in the country (the Excellent
Tier). The Mekong Delta continues to amaze with its
steady and consistent improvement across the region. If
one includes Can Tho and Long An, the Mekong Delta
accounts for 9 of the 22 provinces and cities that are ranked in the Excellent and High Tiers in the 2010 PCI.
3. Key Indicators for Economic Performance
This year, a larger number of enterprises express optimism about the economy and their plans for increasing investment,
although larger foreign and domestic firms are much more optimistic than sole proprietorships, which raises concerns
about how to support small enterprises that are critical to job creation. In more detail:
Labor: In the median province, the percentage of firms expressing satisfaction with general education and labor training
increased steadily from 35.2 percent in 2008 to 45.45 percent in 2009 to 46.99 percent in 2010. Although there is no
increase in the percentage of firms using labor exchange services (currently around 40 percent), the quality of these
services have seen improvements - 62.5 percent of the firms claim they planned to use the service again, compared to
27.78 percent in 2009. These changes are welcome, as the most common complaint among employers is the low quality
of the workforce, which they argue prevents upgrading.
Business Support Services (BSS): The number of BSS providers in the median province leapt from one enterprise
in 2008 to five in 2009. In 2010, the median province has 12 BSS providers. The percentage of firms using business
information search services increased from 60.36 percent in 2009 to 64.35 percent in 2010.
There is a noticeable increase in the number businesses
selecting private service providers over government, which is
an excellent sign for future development. Moreover, many
firms see the quality of BSS improving. In 2010, over half of
the firms said they would continue to use the service, compared
to only 16.44 percent in 2009.
Entry Costs: Market entry is correctly considered the most
important economic reform in Vietnam over the past two
decades. Indeed, the sub-index measuring the costs of
business entry has shown the greatest improvements and
least cross-provincial variance among all PCI sub-indices.
Between 2006 and 2009, average registration periods have
been cut in half an impressive achievement. However,
reform progress stagnated in 2010 - the number of days
required for registration and change of registration remain
exactly the same as in 2009 (10 days and 7 days respectively).
Businesses requiring additional documentation increased,
and consequently the percentage of firms (in the median
province) waiting more than a month to complete all steps
necessary to start business jumped from 19.35 percent in
2009 to 24.39 percent in 2010. Likewise, the percentage of
firms waiting more than three months increased from 4.44
percent to 5.77 percent over the same period.
Transparency: The most worrisome trend in 2010 continues
a pattern observed in 2009. Transparency is declining in Vietnam in dramatic fashion: The PCI 2010 findings show
declines in nearly every transparency indicator compared with 2009. Accessibility of planning documents related to
business enterprises and of legal documents both decreased noticeably. On a 15 scale (in which 1 is impossible to
access and 5 is very easy to access), accessibility of planning documents averaged 2.31 points, falling from 2.44 in
2009 and hitting the lowest level in all six years of PCI. The best performing province scored only 2.62 points, against
3.08 points in 2009. Transparency of the legal documents is calculated at 3.05 on average, compared to 3.11 in 2009,
which implies that transparency has declined to the 2007 level. As many as 78.64 percent of firms surveyed in PCI 2010
say that a relationship is important to get access to provincial information, an increase of more than 17 percent from
the 2009 index.
4. The PCI 2010 Thermometer of Business Sentiment
In the 2009 PCI report, business sentiment was at its lowest level in five years. This years report indicates the onset of
a trend of improvement: The percentage of firms intending to expand their business increased 6.3 percent in the past
year, to 69% of the total sample. However, optimism still has not met the levels reached in 2007 and 2008. One key
area of concern appears to be an increasing disparity in business sentiments. Sole proprietorships, typically small in
size, tend to be much less optimistic than larger-sized firms, such as limited liability companies or joint stock companies.
The percentage of sole proprietorships intending to expand operations in the next two years (43.25 percent) is about
half that of joint stock companies (79.38 percent). By way of comparison, FIEs record a thermometer score of 67%,
which approximates the domestic average.
5. The Results of the PCI Survey of Foreign Invested Enterprises
The survey of 1,155 FIEs from 47 different countries located throughout Vietnam provides a valuable perspective on
the current FDI footprint in Vietnam today. As Vietnam explores strategies to move to the next stage of development,
the country needs to attract higher quality investment to increase productivity and prosperity. This will require improved
contract enforcement and control of corruption to reduce the costs and risks of investing and doing business in Vietnam.
Labor is a key area of concern for existing FIEs that experience labor shortages and high turnover due to in Vietnam.
Infrastructure Quality: This year, the PCI research team continued to
track the quality of infrastructure at the provincial level as business
owners and policy makers continue to cite it as one of the most
critical barriers to investment and growth in the country. Compared to
2009, the 2010 infrastructure witnessed positive changes in firm
perceptions in road quality (the percentage of asphalted roads
increased by 20% points and satisfaction of firms increased
correspondingly). Firms are also marginally more satisfied with
improvements in telecommunications quality and internet access.
Nevertheless, rolling blackouts continue to be a problem actually
growing in 2010: On average, the electricity outage hours of each
firm in the month prior to the survey (June 2010) almost doubled
from 50 hours in 2009 to 89 hours in 2010.
Labor is a key area of concern for existing FIEs that experience labor shortages and high turnover due to low quality
and inadequate supply of workers. Rethinking current education policy is essential to improve labor quality to retain
existing FIEs and attract higher value-added investment.
One key message of the PCI 2010 is that Vietnam currently does not yet have sufficient FDI investors that it hopes to
attract: The current median investor in Vietnam is relatively small, export-oriented, and operating a low added-value
margin business. These FIEs source a surprisingly small amount of intermediate goods and services from domestic
producers, which implies that technological spillovers remain limited. For the most part, these investors are attracted to
Vietnam for the cost advantages offered by Vietnams cheap labor and the political stability. There is no doubt that
these FIEs have contributed remarkably to Vietnamese economic development through employment creation, revenue
generation, and integrating the country into global export markets. Nevertheless, it is clear that Vietnamese economic
strategists seek a different type of FIE to move the country to the next stage of economic development.
Final 2010 Provincial Competitiveness Index Rankings
For more information about the 2010 PCI report, please visit: www.pcivietnam.org
a Nang
tao Cai
ong Tbap
Tra Vinb
nb Doong
ac Ninb
Qoang Ninb
Hao Giang
Vinb tong
cn Trc
Ninb nb
tong An
Can Tbo
An Giang
Vinb Fboc
Qoang Tr|
Soc Trang
TT-Hoc
k-VT
nb |nb
Ycn ai
Tbai nb
TF.HCM
Ticng Giang
ong Nai
Qoang Nam
kicn Giang
nb Tboan
tam ong
ac tico
Fbo Ycn
ac Giang
Tay Ninb
Toycn Qoang
Hai Doong
nb Fbooc
Ha Tinb
ak tak
kon Tom
kbanb Hoa
Ninb Tboan
Tbai Ngoycn
Ha Noi
Tbanb Hoa
Nam |nb
Qoang nb
icn icn
Hai Fbong
Ha Giang
Gia tai
Ca Mao
Cao ang
Fbo Tbo
Ngbc An
Qoang Ngai
Ha Nam
tai Cbao
ac kan
tang Son
Hoa nb
Hong Ycn
Son ta
ak Nong
1
2
3
4
S
6
7
8
9
10
11
12
13
14
1S
16
17
18
19
20
21
22
23
24
2S
26
27
28
29
30
31
32
33
34
3S
36
37
38
39
40
41
42
43
44
4S
46
47
48
49
S0
S1
S2
S3
S4
SS
S6
S7
S8
S9
60
61
62
63
0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90
69,77
67,95
67,22
65,80
65,72
64,48
64,41
63,91
63,40
63,11
62,85
62,74
62,46
61,94
61,73
61,61
61,49
61,31
60,55
60,37
60,16
60,04
59,67
59,63
59,49
59,34
58,90
58,45
58,26
58,20
58,18
58,02
57,93
57,90
57,51
57,24
57,22
57,20
57,01
56,75
56,61
56,54
55,73
55,68
55,63
55,22
55,12
54,64
53,94
53,65
53,57
53,55
52,47
52,38
52,21
52,18
51,77
51,49
50,20
49,89
49,77
49,26
48,91
Excellent
High
Mid-high
Average
Mid-low




Among the top-5 performing provinces in the Vietnam Provincial Competitiveness Index 2010 is
Binh Duong. Starting our new In Focus series, we would like to take a closer look at this
province that is increasingly becoming a hub for European foreign direct investment.
Overview
Development
In Focus
Binh Duong is a trade gateway to Ho Chi Minh City, Viet Nams
economic powerhouse, and is serviced by key highways such as
National Highway 13, Highway 14, and the Ho Chi Minh street,
Trans Asia street; 10-15 km to Tan Son Nhat International
Airport, to seaports. In recent years, economic growth has
been high with GDP achieving an annual average increase
of 15%. The economic structure is improving, industry and
services are growing rapidly. By August 2010, Binh Duong
had 28 concentrated industrial zones, more than 9,600
domestic enterprises with total registered capital of
more than US$65,000 billion, and nearly two thousand
foreign-invested projects with total investment of over
US$13 billion

There are a vast number of major construction projects currently underway in Binh
Duong province to improve and develop infrastructure, education, housing projects,
cultural and commercial centres, telecommunications and industrial parks. The
provincial government is looking to develop the service sector from to 45%
from 35% currently by 2020. Services are the fastest growing sector in
Binh Duong with about 16% average annual growth.
Competitiveness
The PCI 2010 states that Binh Duong, Dong Nai, and HCMC are the three
powerhouse industrial provinces of the North Southeast, which alone
account for a quarter of the non-oil gross domestic product in the country
receive the three highest scores for infrastructure (industrial zones, road
and transport, utilities, telecommunications and information technology.)
Binh Duong did observe some backsliding in provincial competitiveness
compared to previous years, mainly related to entry costs and business
support services. More selective and strategic investment promotion
policy of Binh Duong authorities, along with the increased expectations of
firms operating in the locality, may have resulted in such changes in the
provinces performance.
Despite these changes, Binh Duong remains one of the most attractive
provinces for doing business in Vietnam. Among the main reasons for
investing there are still tax and land incentives, the wide availability of
industrial zones and relatively low labour costs. With all the ongoing
development, the province will continue to remain firmly in the focus of
both domestic and foreign investors.




28

15%






2,695,5 Km
1,500,000
800,000
18,000 ha
9,600 projects
with capital of
VND 65,000 Bil
2,000 projects
with capital of
US$ 14 Bil from
34 countries &
territories

Area :
Population (ppl.):
Working adult :
Industrial Land:
Industrial Zones:
GDP growth / annum:
Domestic investment:
Foreign investment:
* 2011 Becamex

Vice Chairman of Binh Duong People's
Committee Mr. Le Thanh Cung and
EuroCham Chairman Alain Cany on a
EuroCham Executive Committee visit to the
province in January 2011.
On March 30 2011, Princess Mxima of the
Netherlands visited FrieslandCampina
Vietnam training centre in Binh Duong.
EuroCham member FrieslandCampina
has been active in the province since 1995
and has established a training centre where
thousands of Vietnamese farmers have
been trained in cow raising techniques as
well as providing scholarships and building
schools for poor children in remote areas.
EuroCham Executi ve
Committee visit to European
invested production facilities
in Binh Duong
In Focus: Bnh Dng Province
7
VND Depreciation - A step in the right direction
High inflation and currency devaluation have been concerning
local business in the past three years. The Vietnamese dong
(VND) has devalued by 30% against the US dollar (USD) since
2008 and we expect consumer prices to rise by 16% on average
in 2011. This implies that the inflation rate is going to rise further by
the summer before easing in Q4.
The good news is that the authorities are taking the inflation
challenge much more seriously, by raising interest rates as well as
tightening their lending growth target. The attempt to de-dollarise
the economy by reducing the usage of USD and gold should also
help to shore up support for the VND in the medium term, although
there may be some teething problems for the business sector as the authorities look to devise a suitable financial
regime to increase the usage of VND while facilitating day-to-day trade.
The bottom line is that Vietnam continues to be an attractive investment destination for Asian, and international,
businesses. Many of the issues facing Vietnam today are those facing other emerging economies during their various
stages of economic development. Risk diversification, cost advantage, attractive local demographics, urbanisation and
rising household income are all positive factors that lead us to include Vietnam in Standard Chartereds 7% Club, a
group of economies that can sustain growth at 7% for an extended period, which will double the size their economies
every ten years.
We now expect inflation to peak at 18.6% in Q3, and a return to 2008 is unlikely
Inflation averaged 15.7% in Q1-2011,
higher than our previous forecast of 12.6%.
The traditional decline in the consumer
price index (CPI) did not take place this
March. In fact, headline inflation rose 2.2%
in March relative to February. A surge in
transportation costs (+6.7% m/m) and in
housing and construction materials (+3.7%
m/m) were the two items responsible for the
surge in the March headline, while food
rose 2% m/m in March.
For the overall Q1 inflation numbers, three
one-off factors led to the average 2% m/m
number, which was last seen in Q2-2008.
First, the surge in global food prices in late
2010 and early 2011 clearly contributed to
the rise in headline inflation, as food is 40% of the CPI basket. Second, the 7.2% devaluation in the VND in February
likely led to a rise in import prices. Third, the 15% increase in the electricity tariff in early March would also have started
to show its effect in the preliminary figures.
In August 2008, headline inflation reached 28.3% y/y, fuelled by a combination of strong growth and high global
commodity prices. The circumstances seem similar this time, but we believe the risk of inflation returning to such a level
is limited. To hit such a level would require headline inflation to rise by 2% each month for the rest of the year, which
implies global food and energy prices to rise continuously throughout the year. While the situation in the Middle East
and North Africa remains uncertain, hence creating more upward pressure on energy prices in the near term, food
prices are expected to stabilise in H2 as supply, especially rice, improves. Lending growth is also expected to ease on
the back of recent interest rate increase and the more stringent lending growth target.
By Tai Hui
0%
5%
10%
15%
20%
25%
30%
Feb-
07
Aug-
07
Feb-
08
Aug-
08
Feb-
09
Aug-
09
Feb-
10
Aug-
10
Feb-
11
Aug-
11
Inaton y/y
Forecast
Chart 1. Inflation to rise further before stabilising in Q4
Sources: Bloomberg, Standard Chartered Research
Downward pressure on the VND to persist, but crisis can be avoided with right policies
The latest surge in inflation is expected to keep local investors unsettled and encourage them to look for protection to
the US dollar (USD) and gold, and this is likely to remain the case in the months ahead, based on our projections.
Although the government has implemented
measures to limit the use of the USD and
gold in the local financial system, their
efficacy is yet to be assessed. But we see
this as an important first step to
de-dollarisation in the medium term.
An encouraging sign is that the trade deficit
has been stable in the past two years. After
hitting a high of USD 18bn in 2008,
Vietnams trade deficit has corrected sharply
to USD 12bn in 2009 and 2010. This correction
is even more significant relative to the size of
the economy. We expect the trade deficit to
expand to USD 14bn in 2011, in line with the
pace of the USD 3bn trade deficit we have
-20
-18
-16
-14
-12
-10
-8
-6
-4
-2
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4

1
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1
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F
-25%
-20%
-15%
-10%
-5%
0%
Trade bal ance (USD bn, LHS) as % of GDP
Chart 2. Trade decit gradually stabilising
Source: Standard Chartered Research
Tai Hui is the Regional Head of Research, Southeast Asia, of Standard Chartered Bank
seen in Q1-2011. This implies that the trade deficit as a percentage of GDP should remain the same as in 2010, at
11.5%
In addition, inflows from inward remittances and foreign direct investment (FDI) should be relatively strong in 2011
given the global recovery. However, Vietnams balance of payments (BoP) dynamics remain challenging given the
countrys dependence on imports for capital investments. We forecast further VND weakness in 2011 and we pencil in
an additional one-off devaluation in Q3. However, a full-blown balance-of-payments crisis can be avoided by appropriate
monetary and economic policies, some of which have already been adopted by the authorities in the past two months.
An alternative to currency devaluation would be to further enhance investor confidence in the VND. Local investor
sentiment could act as a lynchpin since the foreign investor position on VND assets is very light. If the State Bank of
Vietnam (SBV) is able to exhibit resolve in maintaining price stability and subsequently the value of the VND
investors will be less inclined to sell VND in favour of the USD and gold. Compensating investors with a higher interest
rate would also achieve the same result. These measures should help to prevent further losses of FX reserves.
Vietnam in the 7% Club
While foreign businesses often find it difficult to meet the challenge of currency devaluation, foreign currency shortage
and high inflation, investors around the world continue to seek investment opportunities in Vietnam. The rising cost of
doing business in China, especially with regards to labour cost, is encouraging businesses to explore alternatives and
Vietnam regularly features on their radar screen. These investors are also looking for risk diversification as they are
concerned with rising protectionism from the west against products made in China.
Meanwhile, urbanisation and the rise of the middle class are attractions drawing businesses to enter into this market.
These two factors are critical to our concept of the global Super Cycle, where emerging markets are likely to contribute
to a period of superior global growth in the next two decades. We believe Vietnam will be one of emerging markets
contributing to this phenomenon. With a population of 90mn people, rising middle class and higher income, Vietnams
economic growth is able to reach 7% on average provided that the government is able to better maintain price stability
and local confidence in the VND. The latest measures are a step in the right direction in achieving this long-term goal.
9
Ministry of Finance (MoF) clarifies invoice presentation requirements
under Circular 153
EuroCham - Tourism and Hospitality Sector Committee (TH SC):
Advocacy Commitment for 2011
Under Circular 153, all invoices are required to be displayed in Vietnamese language. This had recently been interpreted
as including correct Vietnamese accents on all characters. This requirement had caused many of our members problems,
as on the preprinted invoice, there is no space to display Vietnamese with full accents. Also, members customers
currently use invoices without accents. For the adjustment and using Vietnamese with full accents, our members would
have to fix all management data software of goods, customers and suppliers. Also, under Circular 153, after the digit
of billions, millions, thousands, our members have to use a separator dot (.). However, due to use of foreign software
and for the purpose of integration of data into the global system, most of our members are currently using a separation
comma (,) after the digit of billions, millions, thousands.
Being required to change the software that is employed globally by their headquarters for group reporting purposes
would have been a great challenge both for local management and headquarters. EuroCham has had a meeting with
the General Department of Taxation (GDT) under the MoF, to address these issues on 22 March 2011. At the meeting,
our members METRO and Unilever have explained in detail the problems and costs they are facing due to the recent
interpretation of Circular 153. In an effort to resolve this dilemma and to enable foreign invested corporate taxpayers to
operate in line with their global management systems, the MoF has issued Official Letter (OL) 4016/BTC-TCT on 28
March 2011, providing more lenient rules in respect of the legitimacy of official invoices. The most important changes
under OL 4016 are:
Official invoices are now permitted to use simplified Vietnamese typing, i.e. Vietnamese wording without accent
marks.
Internationally recognized practice for numerical separators is now permitted on Vietnamese official invoices, i.e.
the use of commas (,) as thousands separators and a full stop (.) for the decimal mark in digit grouping. In this
case, it is required that to avoid any confusion, the total amount of the invoice must be restated in words.
In order to adopt the new relaxed ruling in respect of invoice presentation, prior documented registration with the
tax authority is required.
This is a great success for EuroCham. We believe that the clarifications under OL4016 should have a positive impact
on a large number of foreign invested enterprises in Vietnam. Companies should now proceed quickly with the required
registration to enable them to enjoy the new and more favorable rules on invoice presentation.
The TH SC Kick-Off Meeting - 25
th
April 2011 - is an encouraging signal that EuroCham businesses are committed to
improve the business climate in this area.
At EuroCham we understand the importance of this sector that currently accounts for nearly 5% of the countrys GDP
and is employing approximately 10% of the labour force in the service sector, thus making the tourism industry one of
the countrys key employment industries. En par with the objectives of the European Union, EuroCham is dedicated to
work with the Vietnamese National Administration of Tourism to promote stronger responsible tourism services through
public private dialogue, improved tourism planning and regional tourism product development. EuroCham Tourism and
Hospitality members are committed to advance good business climate creating a win-win situation for all participating
stakeholders. One particular advocacy focus will be improving the current visa regulations, in particular allowing for a
more comprehensive visa-on-arrival procedure.
The Travel & Tourism (T&T) Competitiveness Report 2011 evaluates
Vietnam, ranked 14
th
in the region and 80th overall, up nine places
since the last assessment in 2009. It benefits from its rich cultural
resources ranked 36
th
, with several World Heritage cultural sites,
several inter-national fairs and exhibitions, and strong creative industries.
Another attraction are Vietnams natural resources, ranked 24
th
for its
World Heritage natural sites, and with very diverse fauna in the country.
These attributes are reinforced by the countrys price competitiveness
ranked 16
th
. In order to strengthen its T&T competitiveness, it is
recommended that Vietnam further develops its transport infrastructure
and its tourism environment, while ensuring that the sector is developed
in an environmentally sustainable way.
GreenBiz 2011
2nd GreenBiz Conference & Exhibiton
Vietnams No.1 Event on Green Solutons
GreenBiz 2011 is on its way!
Six months to go before GreenBiz 2011-European Green Business Solutons for Vietnam comes
back with a larger scope and scale. Are you ready for Vietnams No.1 Event on Green Solutons?

GreenBiz 2011 has so far drawn huge atenton to its prestgious two-day Conference and
Exhibiton, on the 15-16 September 2011 at White Palace Conventon Center in HCMC. It is our great
honor to have signicant support from the Government and from our two main partners; Vietnam
Chamber of Commerce in Vietnam (VCCI) and the Trade and Investment Informaton
Center (ITPC), as well as from foreign and domestc business associatons and private companies.

This has been obviously shown in our list of conrmed sponsors, including:
Also, the conference, with partcular focus on Sustainable Cites, Green Manufacturing and
Climate Change-Energy Supply, has been enlightened with the partcipaton of key gures from
public bodies and private businesses, Government, academia and other insttutons. Our conrmed
keynote speakers include so far Professor Peter Droege, Mr. Brien OBrien, and Professor Steen
Lehman.

Keeping the same momentum, the exhibiton oor plan has been greenly lled up with the
engagement of dierent European and Vietnamese companies.

Some sponsoring opportunites are stll available to enhance your organisatons visibility.

Exhibiton and Conference space are lling up quickly...
Contact us, to get involved in this not-to-be-missed green event!
www.greenbiz2011.com
+84 8-38272715
greenbiz@eurochamvn.org
BOOK NOW!
New year reception with the Ambassador on Jan 16
th
, 2011
On 16 Jan 2011, Beluxcham was honored to receive the Belgian Ambassador to Vietnam for a new years reception with all Belgians
in HCMC invited. The Belgian community came together in large numbers to welcome the New Year 2011.
Vietnam Achievement Award 18
th
Feb 2011
On 18 February 2011, Belgian/Luxembourg businesses and entrepreneurs
gathered to mark business excellence at the Belgian/Vietnam Achievement
Awards in the presence of the Belgian Ambassador, Mr. Hubert Cooreman,
the Belgian Honorary Consul in Ho Chi Minh City, Mr. Dominique Casier,
and a delegation from VKW Limburg in Belgium. The award, which was
organised by Belgian-Luxembourg Chamber of Commerce in Vietnam,
honoured achievements with a senior management award and an academic
Award. As successful Belgian/Luxembourg businesses or leaders operating
in Vietnam for several years with best business practices, innovations and
significant contributions to company growth, candidates were selected by
the jury panel and received their awards at the 18th February event. The
award ceremony is followed by a networking dinner with the VKW Limburg
group from Belgium, who is exploring new business opportunities in Vietnam. The Beluxcham/Vietnam Achievement Awards provide
enterprises with an opportunity to gain recognition of their successes, increase their profile in the community and network with other
ambitious business owners.
The Annual General Assembly of the French Chamber of Commerce was held on
March, 24th 2011. Members elected Pierre-Jean Malgouyres as the new chairman of
CCFV. This AGM was the occasion for members to review the 2010 activities and to
exchange on 2011 upcoming projects. Members also thanked Marc Villard, the outgoing
president, for his strong commitment in the past four years.
Since the beginning of 2011, CCIFV has been working on improving relations with other
foreign business associations in collaboration with EuroCham through the organization
of a monthly networking with different Business Associations. The latest events in
HCMC were co-hosted by the Youth Businessman Association and the BBGV. In Hanoi,
CCIFV, CanCham and EuroCcham will start to organize a monthly combined networking
event at Movenpick Hotel.
In the coming weeks, CCIFV will also organize an event with the Singapore Business
Trade Mission in Hanoi and HCMC
The mission with more than 80 companies visited Hanoi and HCMC from
the 28
th
and 1
st
of April. After a day with interesting seminars and exchange,
a dinner was held in the Melia hotel in Hanoi. The Royal Highnesses the
Prince of Orange Willem-Alexander and Princess Mxima of the Nether-
lands were present at the dinner. Dinner started after a speech of the Minister
of Agriculture and Foreign Trade, Mr Bleker and Prince Willem-Alexander,
emphasizing the importance of the five selected sectors for both countries:
Water, Transport and Logistics, Maritime, Oil and Gas and Food and
Agriculture. The succes of the mission reflected in contract signed by Dutch
and Vietnamese firms in these sectors.
On Wednesday March 30
th
a network cocktail was held at the Reunification
Palace in HCMC where the Dutch community of HCMC also attended.
There were around 400 guests. The Palace was beautifully decorated and
the guests had the opportunity to listen to various speeches and meet many
interesting people from all sectors.
Association in HCMC, a Construction Night with different B.A. and an event dedicated to new members co-hosted by EuroCham.
The GBA Annual General Meeting (AGM): On 17
th
January, 2011, the AGM took place
and elected the GBA Board Management for 2011.
Up-coming events:
HanseTag 2011: As every year, GBA together with Scandinavian friends from NordCham,
are going to organize this popular annual event on Saturday, 16
th
April. Once again, the
event will bring members of both business associations the best time of enjoying fresh air
from the river, live music and the unsurpassed northern-style buffet, as well as a thousand
bottles of beer sponsored by Flensburger from Germany.
Oktoberfest in Saigon 2011: GBA and its co-organizer Windsor Plaza Hotel are
preparing for this biggest event of the year, The Oktoberfest Saigon 2011. The festival will
run from October 7
th
to October 15
th
(with a break on October 9th and 10th) and will again
offer the foot-stomping music, refreshing German brew and delicious food which everyone
has come to expect. More than 14,000 people are expected to participate. The Oktober-
fest Saigon 2010 with 14,000 guests joined was recognized as the largest Oktoberfest
celebration in Vietnam. Please sign up before 1st of May as our event sponsors to get the
early bird discount program. If you have any question, please feel free to contact GBA
office at +84 8 3823 9772 and email: oktoberfestsaigon@gba-vietnam.org for more
information.
On 22. January, Icham held its General Assembly for year 2011. IChams Members
voted to elect the new Board for the year 2011, and Mr. Massimiliano Guelfo -
(PIAGGIO VIETNAM) as the new Chairman.
On March 9
th
2011 the new elected Chairman, Mr. Guelfo, has signed a
Memorandum of Understanding with HBA Hanoi Business Association.
ICham believes that, after becoming associated with Eurocham and opening a
Hanoi office last year, signing the Memorandum of Understanding with the
Hanoi Business Association is another successful step in expanding the reach
and effectiveness of its work in Vietnam; The ceremony was attended by various
newspapers, television channels and distinguished guests, among them were
HBA President, Mr.Nguyen Hong Son, the Deputy Ambassador of Italy in
Vietnam and Mr.Tomaso Andreatta - Deputy Chairman of Eurocham.
ICham, represented by Mr. Michele DErcole, took part to the Area Meeting APAC, EAU and SOUTH AFRICA of Assocamere
Estero", the official association of the bilateral Italian Commerce Chambers in the world. ICham is working hard to be officially recognized in
Assocamere, the invitation to attend the Area Meeting and the received praises for the important role that ICham plays already in
bilateral promotion, rewards the big effort ICham is putting to reach that goal.
www.nordchamhn.org.vn
Nordic Chamber of Commerce in Vietnam (Hanoi Branch)
Activity update from NordCham Hanoi
On April 2., Nordcham Hanoi organized its 6
th
annual Spring Ball at InterContinental Hotel.
Some 100 guests attended the ball and enjoyed an evening with great food, live jazz music and
a cozy atmosphere.
On March 18., Nordcham Hanoi arranged a charity event
at National Pediatrics Hospital. Members of the board
handed over a total of VND 20 million to five poor
families with children fighting serious pediatric diseases
(cancer). The children aged between 5 and 14 years
come from families living in rural areas. The charity was
organized in collaboration with the volunteer Group
Making Dreams Come True in Hanoi.
On March 4th, a Business Mixer event was organized for members as well as other Nordic businesses in Hanoi and Hai Phong. The
event took place the Rooftop Bar allowing a large group of Nordic businesses to network.
For an update on coming events in April and May, please visit the Nordcham Hanoi website - www.nordchamhn.org.vn.
HCMC 14
th
January - Special Dialogue on The Future of The Vietnam Dong
Hanoi 18
th
February - Business Luncheon on Vietnams Economy in the Year 2011
Hanoi 24
th
February Business Luncheon on Vietnams
Devaluation of the VND
HCMC 17
th
March - EuroCham
Networking Night ay Cloud 9 Rooftop Bar
HCMC 8
th
March - EuroCham welcomes
Vice President of ADB - Mr. Lawrence
Greenwood
HCMC 19
th
January - Business Luncheon on A Vision for Education in Vietnam -
Building the future talent pool
At this special Business Luncheon, Dr. Duong Thu Huong, General Secretary of the
Vietnam Banks Association shared her views on development of interest rate and
the Vietnam Dong. Dr. Huong addressed recent obstacles that European and
Vietnamese enterprises have been facing in Vietnam, particularly in the banking
sector. Among the concerns of businesses were future reduction of interest rates,
whether the VND will be devalued a 3rd time this year and the status of foreign
currency reserves in Vietnam. Standard Chartered Bank CEO for Vietnam Mr. Louis
Taylor offered his views on the outlook for the Vietnamese currency from the
perspective of a foreign financial institution.
At this business luncheon, the speakers Madame Ton Nu Thi Ninh, Founding
President of the Tri Viet University Project and Former Ambassador to EU as well
as Mrs. Vu Kim Hanh, Executive Director of the Center for Business Study and
EuroCham kicked off the New Year of the Cat with a special event on
Vietnams Economy in the Year 2011. Madam Pham Chi Lan, senior
economist of Vietnam and Mr. Benedict Bingham, Senior Resident
Representative of the International Monetary Fund shared up-to-date
information on Vietnams Economy in the new year such as key
challenges facing, the best policy to tackle inflation, priorities the
Government should focus on in 2011.
Vietnams the sixth and largest devaluation of the dong for the last 3 years has been
one of the hot issues in the first quarter. Our distinguished guest speaker, Dr. Le
Xuan Nghia, Vice Chairman of the National Financial Supervisory Commission offered
an inside perspective on the positive and negative impacts of this issue. At this
unique event, a large audience were really provided a comprehensive overview of
the changes in Vietnam policies and their impacts in the economy.
Asian Development Bank
Vice President Lawrence
Greenwood with EuroCham
Chairman Alain Cany
and EuroCham Vice-
Chairman and MNC
Member Erdal Elver.
Assistance (BSA). Both offered insights
on how Vietnam can improve its higher
education system to meet its future
human resources needs and what role
the business community can play in
building a future talent pool in Vietnam.
Within ASEAN, Vietnam ranks in the lower half of human resources
development. Therefore, improving and upgrading the skills of its human
resources is one of Vietnams key tasks to achieve sustainable long-term
growth for the country.
HCMC 18
th
March - Luncheon on The Vietnam
Provincial Competitiveness Index (PCI) 2010
FDI in Vietnam Today and Future Opportunities
This luncheon co-hosted by the VCCI USAID EuroCham and
Amcham introduced the findings of the Provincial Competitiveness
Index (PCI) 2010. Speakers at the event were Dr. Edmund Malesky,
UCSD Professor and USAID/VNCI Advisor and Ms. Nguyen Thi Bich
Van, Deputy Director of Foreign Investment Agency - MPI. To read
more about the PCI report and its findings, please turn to page 4 of
this Newsletter.
EuroCham organized a business dialogue with Vice
Minister of Ministry of Trade and Industry of Vietnam,
Mr. Hoang Quoc Vuong. This event provided a rare
opportunity for members to engage directly with one of
Vietnams high ranking official to be shared his views
about Vietnams management situation on key products,
especially the situation of electricity shortage in
Vietnam and what are the Governments policies.
After a private meeting with EuroCham (MNC) representatives, H.E. Vice Minister Dang Huy Dong, Ministry of Planning
and Investment (MPI) addressed members and elaborated on government plans for attracting investment in the years
to come. The minister stated that most of the funds needed for developing the physical infrastructure of the country will
come from foreign businesses. Therefore the future aim is to simplify the procedures and establish a one-stop-shop
for foreign investors willing to participate in PPP projects. Vice Minister Dong also stressed that there is an intention to
move away from merely labour intensive investments to more value added products and services and also to facilitate
the development of industrial clusters.
EuroCham invited Dr. Vo Tri Thanh,
Vice President the Central Institute
Economic Management (CIEM) to
address this dialogue to share with
EuroChams members and friends
some insights on current policies and
strategies to stabilize the economy
and secure the healthy development
Hanoi 28
th
March Business Dialogue on Taming Inflation: Slowing Growth?
Hanoi 30
th
March Special Dialogue on Vietnams anti-inflation fight MOITs view
and policies
HCMC 31
st
March - Business Briefing with Vice Minister Dang Huy Dong - (MPI) on
Vietnams FDI Trends and Policies 2010 2015
in Vietnam. Vietnam is expected to take action to curb inflation as the
government recently faces increasing pressures to bring greater stability to
price levels, the Vietnamese Dong and the overall economy.
Hanoi 30
th
March - Award Ceremony
An official ceremony was held at the Government Guesthouse in Hanoi to mark the receipt of two prestigious awards:
The Prime Ministers Certificate of Merits was awarded to the European Chamber of Commerce in Vietnam for its
"active contribution to the development of economic relations between Vietnam and European countries". This makes
EuroCham the first foreign chamber of commerce in Vietnam to receive the prestigious Award.
The prestigious Vietnam Friendship Medal was awarded to EuroCham Chairman Alain Cany, for his "Remarkable and
active contribution to investment and economic development between Vietnam and European countries". Awarded to
few foreign nationals, the Friendship Medal confers the highest recognition available for outstanding contributions to
economic and social development in Vietnam.
Event Update
HCMC, 9
th
April - European Food Festival
EuroCham AGM
Alain Cany
Chairman
Preben Hjortlund
Vice Chairman
Erdal Elver
Vice Chairman
Le Duy Thanh
Vice Chairman
Tomaso Andreatta
Vice Chairman
Hielke Booijink
Treasurer
Jean-Michel
Caldagues
Committee Member
Kristof Claes
Committee Member
Elmar Dutt
Committee Member
Wieger D. Otter
Committee Member
Costantino Sambuy
Committee Member
Andreas Stoffers
Committee Member
Christophe Hirtz
Vice Chairman
Peter Born
Committee Member
Olivier Jacquet
Committee Member
Louis Taylor
Committee Member
Meet the EuroCham Executive Committee 2011
To contact a member of the EuroCham Executive Committee please email
o.mgr@eurochamvn.org and we will forward your message.
Hanoi & HCMC 3
rd
March - EuroCham Annual General Meeting
The EuroCham Annual General Meeting was held on the 3rd March in Hanoi and
HCMC simultaneously. At the meeting, members voted on statute changes and
other initiatives as well as for the 2011 EuroCham Executive Committee.
It consists of the following members:
EU Vietnam FTA: summary of findings of a MUTRAP study
By Claudio Dordi and Federico Lupo Pasini
Over the last few years Vietnam has been increasingly engaged in negotiations with trade and investment partners on
a number of Free Trade Agreements. While the only FTAs in force are only with ASEAN or Asian partners, nonetheless,
Vietnam is actively exploring the opportunity to negotiate FTAs with also non-Asian strategic commercial partners, such
as the US, Chile and also the European Union. In this respect, one of the top priorities for the Government is the negotiation
of a FTA with the European Union. A recent MUTRAP research analyzed the potential impact on Vietnamese economy
brought about by this agreement. This article reports the main output of the research, which will be published soon in
the MUTRAP website (www.mutrap.org.vn).
EU-Vietnam trade relations.
As it is well known, Vietnam is an export-driven economy, with 69% of GDP exported in 2008 (64% in 2009 and 61%
in 2005); the European Union is one of the most important commercial partners for Vietnam. Indeed, 16% of the GDP
value is exported to the EU, for a value of 14.9 bn. USD (14% in 2009 for 12.6 bn.) and it represents the 17% of all
Vietnamese exports (constant from 2005)*.
With regard to the tariff on import, Vietnam applied substantially reductions after WTO accession and now the simple
average tariff is 9.3% (from 13.7% in 2005); the tariffs applied to the most exported products from the EU into Vietnam
are quite low, with the exception of automotive (24.2%) and, in part, electronics: 8.9%. The tariffs on other relevant
exports from the EU are quite low: mechanical (3.4%), pharmaceuticals (2%), Iron (2%), optical and medical apparatus
(1.3%) and aircraft (0%). In all the mentioned categories excepted aircraft, however, there are quite high tariff peaks
(from 10% of pharmaceuticals to 90% for automotive).
What Vietnam should expect from an FTA with the EU: the lessons from recent FTAs concluded by the EU
The five main exported products from Vietnam to the
EU exports are footwear (4.5 bn.), apparel and clothing
(2.3 bn.), coffee (1.4 b.), seafood (1.1 bn.), and furniture
(1 bn.). Together those products represented in 2008
the 70% of total export to EU. The European Union
applies relatively law tariff on imports. In this respect,
the average tariffs applied by the EU on imports from
Vietnam are constantly decreasing and in 2009 were
around 4.1, although higher average tariffs are applied
to some relevant products (e.g. apparel and clothing:
11.7%, seafood: 10.8% and footwear: 12.4%). This
means that the elimination of tariffs expected on
substantially all the trade with the FTA will provide
important advantages for Vietnam in comparison to
other competitors in the EU markets.
*The analysis has been mainly conducted taking into consideration 2008 data to avoid the distortions brought about by the economic and financial
crisis which distorted the 2009 and, partially, the 2010 data.
Free Trade Agreements are complex treaties that go
well beyond pure preferential tariff reduction. Indeed,
modern FTA negotiated by the EU, besides eliminating
import duties on nearly all products, stipulate also
far-reaching liberalization of trade in services and
investment, promote best practices in environmental
policy, procurement policy and in the protection of
intellectual property rights.
Indeed, in recent EU FTAs the counterpart has to
reduce the customs duties gradually and within a
deadline of 10 years, with the possibility of excluding
from the liberalization specific identified sectors.
Regarding the technical and sanitary barriers the
negotiation of an FTA is an important opportunity to
discuss and deal with any problem faced by
Vietnamese exporters in accessing the EU market.
Other rules have been agreed on specific commitments
to eliminate and prevent non-tariff obstacles to trade in specific, such as automobiles, pharmaceuticals and electronics.
Business Update
The FTA include also provisions on investment both in
services and industrial sectors and strong disciplines
in relevant areas, such as protection of intellectual
property, public procurement, competition rules,
transparency of regulations and sustainable development
(i.e. environment and social rights).
From an economic point of view, the countries
participating to a FTA with the EU showed, in general,
positive results. Another research (conducted by
VCCI) analyzed the impact of some selected FTAs
concluded by the EU on the economy of the EU
partners. The research shows that the former EU FTA
agreements with Chile, Mexico and South Africa
brought about very positive trade results to these
countries and, in the case of Mexico, there had been
even a huge inflows of foreign direct investment from
the EU. Indeed, EU companies considered Mexico an
important platform to export products in the US,
benefiting from the NAFTA agreement (participated
by Mexico, US and Canada).
The impact of the future agreement: The
quantitative analysis
The analysis conducted by MUTRAP shows that
Vietnam has a lot to gain from an FTA with the EU.
The biggest gains for Vietnam would come from
increased EU investment in services industries in
Vietnam, from increased Vietnamese exports to the
EU, and also from cheaper strategic imports from
the EU that would enable Vietnam to upgrade its
technology. Moreover, the liberalization of trade will
improve the fiscal revenue (the revenue from the
increased imported products exceed the losses
due to the reduction of tariffs), the trade balance
(+ 500 million USD annually, as the increase of
exports at least 4% -exceed that of imports - +3.1%)
and the even the boost on the GDP will be substantial
(2.7% annually).
19
The Impact on Investment and Future Investment Opportunities
The Vietnamese market is by one of the most attractive destination for FDI and is already receiving substantial amount
of FDIs. Indeed, the total amount of FDI in 2010 is estimated to be around 11 Billion US$, up to 10% compared with 2009.
Vietnam has a lot to gain from a free trade agreement with the EU in terms of increased investment. From a qualitative
analysis it seems that the biggest gains for Vietnam (in terms of volume and quality of FDIs, but also in terms of general
economic benefits) would come from services liberalization. Indeed, the expected inflows of service providers from the
EU will increase the efficiency of the market (through better technologies, procedures, and management attitudes) and
will be beneficial for the entire economy as it is well known that an effective tertiary sector boosts the productivity and
it is at the basis of an efficient and competitive economy.
The competitiveness of the manufacturing sector of Vietnam is undoubted. The combination of cheap labour force and
free market access to the ASEAN+ area render Vietnam a potential export hub to the whole region. A free trade agreement
with the EU will increase the propensity of foreign firms (EU, but not only) to invest in Vietnam bringing additional
benefits to the Vietnamese economy. These benefits resides in an increased appeal of Vietnam as a productive and
export facility (cheaper and better goods from Europe; larger market of 3.5 billion people, taking into consideration the
ASEAN + FTAs; increased technology transfer to Vietnam), which in turn will attract more and of better quality investments
from within and outside the FTA region.
EU Vietnam FTA: summary of findings of a MUTRAP study
Trade Remedies and other Negotiating Issues
The negotiation of an FTA with the EU is expected, besides reducing and eliminating EU tariffs, to smooth the application
of non-tariff barriers, too. The biggest non-tariff challenges affecting Vietnamese exports to the EU are connected to the
EUs use of trade defense instruments, notably anti-dumping, and the EUs SPS and TBT measures.
The EU is unlikely to make concessions on anti-dumping and countervailing duties to Vietnam and the FTA will probably
not have any significant impact on the EUs resorting to anti-dumping and countervailing action against it. However, the
negotiations will be an important opportunity for Vietnam to discuss its status of non market economy. Indeed, it should
be pointed out that, according to the WTO agreements, other WTO members shall recognize the market economy
status to Vietnam at latest in 2018; the worrying issue is that China shall obtain this status in 2016. The risk is that in
the period 2016-2018 Vietnamese exports could be under stronger pressure from antidumping procedures than
Chinese ones.
As far as SPS and TBT measures are concerned, it seems improbable that a reduction of SPS and TBT barriers will
take place as their final aims is to protect the health and the security of consumers and they do not have a protectionist
intent. What is more probable is that the EU-Vietnam FTA will provide a framework for technical assistance, discussion
and further co-operation on SPS and TBT issues. Vietnam may consider requesting targeted technical assistance from
to the EU in the context of its FTA negotiations. Finally, Vietnam, in order to reduce the costs of compliance with the EU
SPS and TBT requirements Vietnam should actively seek the conclusion of mutual recognition and ad hoc equivalency
agreements with the EU. Independently of the complexity to achieve these instruments of trade facilitation, it is clear
that their pursuit, especially within the confines of an FTA, should be prioritized. Their conclusion, particularly in those
sectors where Vietnams exports have actual or potential market access opportunities on the EU market, stands to offer
Vietnamese producers, exporters and traders considerable comparative advantages and preferential market access
conditions which are comparable to or greater than the tariff concessions that will shape the EU-Vietnam FTA. These
tools of trade facilitation could also allow Vietnam to become an important processing center (for example, as it already
happens, to import third countries fisheries, such as Bangladeshi products, for processing in Vietnam under strict application
of EU standards, and re-export to the EU) and take advantage of its ability to comply with relevant EU standards and
its future FTA preferences vis--vis the EU.
Conclusions
In a nutshell, the signing of a free trade agreement with the European Union will bring only positive benefits to the
Vietnamese economy. Besides increased market access opportunities for Vietnamese exporters, the FTA will allow
Vietnam to buy cheaper European technological products and to receive substantial amount of investment in both the
manufacturing an services sectors that will create more jobs and, in the long run will produce additional benefits to the
Vietnamese economy. It should be pointed out, however, that the Vietnamese producers, to fully exploit the benefits of
the agreement, shall increase the quality and the standard of their products to satisfy the taste and the strict requirements
of European consumers. The conclusion of the FTA with the EU will provide some tariff advantages to Vietnamese
producers compared to other competitors in the EU market (especially China), or reduce the tariff disadvantages
towards other competitors (east European even within the EU, African-Mediterranean) and, in future perspective, will
protect Vietnam from the risks of graduation of its exports to the EU (i.e. Vietnam, at present, benefit from tariff preferences
in the framework of the Generalized System of Preferences as it is a developing country. However, as it happened for
the footwear sector since 2009, sectors -or even the entire exports- could be denied the preferential treatment in case
of EU competing producers are injured).
20
Project Update
As part of the Multiateral Trade Assisstant Project EU Vietnam Mutrap III
(MUTRAP III), EuroCham has been assigned bu the European Union a
project on Capacity building on Trade policy for Vietnamese Business
Associations.
A training course on Strengthening service provision capacity of
Vietnamese Business Associations was held at the EuroCentre in
HCMC on 10
th
11
th
March, 2011. EuroCham shared its experience as a
business association with a number of Vietnamese business associations.
On this occasion, EuroCham also signed MOU with Dong Nai export club
to increase cooperation in activities between exporters in Dong Nai and
A workshop on Improving Export and Marketing Skills for VBAs and
Vietnamese enterprises was held on 24
th
March in Hai Phong. This workshop
aimed to provide guidance to EU market access and to understand in more
detail the impacts of FTAs for Vietnam, technical requirements, standards
and non-tariff barriers to trade with the EU. The event was pleased to have
the presence of former MOIT Minister Mr. Truong Dinh Tuyen, MUTRAPs
team leader Prof. Claudio Dordi, EuroChams Executive Director Dr. Matthias
Duehn, Deputy General Director from Investconsult Group Ms. Ho Ngoc
Lam and Manager on Product and Mobility from TV Rheinland Vietnam
Co., Ltd Mr. Truong Le Tien Dzung.
European firms. There were 13 Vietnam Business associations (VBA) attending this training course.
Helping Vietnamese SMEs Adapt and Adopt Corporate Social Responsibility (CSR) for Improved Linkages
with Global Supply Chains in Sustainable Production
The objective of the project is to enhance the integration of Vietnamese SMEs
into global supply chains through an increased awareness, understanding and
adoption of a corporate social responsibility (CSR) practice based on the triple-
bottom-line (economy, environment and society).
As one of the project partners, EuroChams role is to act as a bridge between
transnational corporations (TNC) and Vietnamese SMEs: Major buyers of
Vietnamese products, including EuroChams member TNCs, are tightening their
procurement guidelines to comply with Corporate Social Responsibility (CSR)
requirements. EuroCham helps the project identifying and consolidating TNC
guidelines and policies so that Vietnamese SMEs have better awareness and
knowledge of TNC practices. This will help Vietnamese SME improve CSR
practices, in particular labour practices and environmental performance.
The project has already held numerous workshops and seminars, as
part of the CSR Calendar that addresses the six (6) core CSR areas
over the course of the year: Environment, Labour Practices, Fair
Operating, Consumer Issues, Governance & Human Rights and
Community Involvement.
Please find details of scheduled events on the project website:
http://www.csr-vietnam.eu/en/Home.html.
As part of the project, UNIDO has also published a guide on private
standards How to make private standards work for you, as these
private standards are becoming increasingly important for export
oriented companies in developing countries. Please find the guide
here: http://www.unido.org/index.php?id=5815
21
Corporate Partners 2011
Good Food, Good Life
22
EuroCham Membership Directory 2011 Discount Handbook 2011
The latest 2011 edition of the annual EuroCham
Membership Directory has been released. Member
representatives will receive one copy each and additional
copies are available at EuroCham offices.
Members can view complete member profiles and
update their own company profile online by visiting
www.eurochamvn.org/Directory.
Enjoy the latest discount offers exclusive to EuroCham
members at some of Vietnams leading lifestyle venues
in the new 2010 pocket-sized annual EuroCham
Discount Partner Handbook, which is delivered to all
members throughout Vietnam in April 2011.
We will change our bi-weekly e-bulletin to a weekly format to keep our members up to date on all
events and to reduce the overall number of emails sent out.
EuroCham will restructure its sector committees in the coming months. Some new committees will
be set up, while others will be relaunched or closed. We encourage all members to get involved
and give their input into our sector committees. Please check our website for updates.
Please Note that the EuroCham offices in Hanoi and HCMC will be closed from April 30. - May 3.
2010 for public holidays.