EVFTA draws increasing number of Spanish investors to Vietnam

According to information released at a recent Vietnam-Spain online trade conference on business and investment opportunities created by the European Union-Vietnam Free Trade Agreement (EVFTA), the impact of the novel coronavirus (COVID-19) pandemic has heavily hit two-way trade.

The opening 10 months of the year witnessed mutual trading stand at only US$1.99 billion, a drop of 17.59% from the same period last year. Of the figures, Vietnamese exports to Spain reached US$1.6 billion, down 20.5%, while its imports hit approximately US$394 million, a slight annual fall of 2.95%.

With regard to the potential for greater trade and investment co-operation between the two nations, Deputy Minister of Industry and Trade Do Thang Hai said that there remains plenty of room to expand beneficial co-operation between both sides for mutual development. Indeed, the enforcement of the EVFTA, which came into effect on August 1, offers a great chance for firms from the two countries.

This trade deal has brought significant benefits to Vietnamese and EU businesses, including those from Spain, through unprecedented openness with almost 100% of tariff lines returning to 0% after from seven to 10 years, thereby offering incentives for services, finance, transportation, insurance, and government procurement.

Furthermore, Spanish businesses are also attempting to take full advantage of investment opportunities locally that have been created by the EVFTA. At the end of last year, ACCIONA, a leading group for sustainable infrastructure solutions and renewable energy projects of Spain, officially debuted ACCIONA Vietnam Company in order to invest in infrastructure projects in the Southeast Asian nation.

ACCIONA's presence domestically marks a turning point for the expansion of foreign co-operation and investment in the country, as well as a major step forward in calling on other Spanish businesses to seize upon local investment opportunities.

ACCIONA will strive to work alongside local partners to participate in infrastructure projects based on its strengths, including construction of bridges, airports, trams, ports, hospitals, renewable energy factories, and water purification plants.

An ACCIONA representative stated that the reason for the group making investment decisions locally is Vietnamese commitment to improve the capacity of renewable energy sources, with a specific aim to increase sustainability and promote water supply infrastructure and services. All of these goals have made ACCIONA Group consider the nation to be a potential long-term investment market.

Xiana Mendez Bertolo, Secretary of State for Trade of the Ministry of Industry, Trade and Tourism of Spain, said that both sides have signed many important separate and joint agreements, offering optimal conditions for enterprises from the two countries. The deal will facilitate for greater co-operating in trade and investment, including agreements on double tax avoidance and prevention of tax evasion for all taxes, along with income tax, especially the EVFTA.