Politic

Prof. Dr. Andreas Stoffers – Country director, Vietnam The Friedrich Naumann Foundation for Freedom

The United Kingdom is an important trading partner of Vietnam. In 2020, trade turnover between the two countries amounted to $6.6 billion. With $5.8 billion in exports, Vietnam’s trade balance was clearly positive, which also underlines the country’s strong interest in reaching an amicable agreement with the UK. In recent years, despite the uncertainties associated with Brexit, the growth of trade relations has been unbroken, averaging 12.1 per cent per annum in 2011-2019.

The trade relations between the EU and Vietnam are naturally greater given the fact that the EU is the world’s largest market. In 2019, the EU was the second-most important overseas market for Vietnamese products with a total trade volume of $56.45 billion, of which Vietnam’s exports accounted for two-thirds ($41.55 billion). This is 16 per cent of the country’s total export volume. In 2020, exports to the EU increased to $34.8 billion, and imports to $14.5 billion.

Vietnam benefits significantly more from bilateral economic relations than the EU. The continuous surplus Vietnam enjoys in its bilateral trade relations with the EU has been instrumental in offsetting Vietnam’s huge trade deficits with China and South Korea.

Vietnam exports mainly electronics, footwear, clothing and textiles, coffee, seafood, and furniture. The most important goods of EU exports to Vietnam are high-tech products including boilers, machinery and mechanical products, electrical machinery and equipment, pharmaceuticals, and a very limited number of motor vehicles. The EVFTA opens many opportunities for producers and traders on both sides, including small- and medium-sized enterprises.

The EVFTA is of course one of the most modern and far-reaching agreements of its kind. It plays an important role in promoting trade liberalisation between Vietnam and the EU.

Combined with the new Law on Investment which entered into force on January 1, and the other FTAs concluded by Vietnam, the Southeast Asian country has set an important course to improve its position as a trading partner and investment destination. From Vietnam’s perspective, the UKVFTA goes in the same direction.

The UK, looking to strike deals in the aftermath of Brexit, used the EVFTA as a template for a Vietnam deal, photo Le Toan

Differences and similarities

“Recognising their longstanding and strong partnership based on common principles and values, and their important economic, trade and investment relationship”. This formula replaces the preamble of the EVFTA in the UKVFTA. If one reads both agreements in parallel, one notices the large overlaps, not only at the beginning, where only some words are replaced by others.

In fact, there are so many similarities between the two FTAs that it is fair to call the UKVFTA a clone of the EVFTA. However, there are some small but subtle differences.

In 14 sectors of the agreement, the UK allows Vietnam to export at zero tax with a certain quota: egg yolks and poultry, garlic, sweetcorn, milled rice, milled rice, tapioca starch, tuna, surimi, sugar and products high in sugar, mushrooms, ethanol, mannitol, sorbitol, Dextrin, and other modified starches.

In the area of banking services, Vietnam agreed to favourably allow UK credit institutions to increase their foreign holdings to 49 per cent of their charter capital in a Vietnamese joint stock commercial bank. Similar to the EVFTA framework, this commitment is only valid for five years (after that, Vietnam will not be bound by this commitment) and not applicable to the four joint stock commercial banks with a dominant government share, BIDV, VietinBank, Vietcombank, and Agribank.

In addition, the implementation of this commitment will be required to fully comply with regulations on procedures for mergers and acquisitions as well as safety and competition conditions, including the applicable shareholding limit. Vietnam allows the EU to raise 49 per cent in two banks while allowing the UK for the equal or even higher treatment of a bank (mostly HSBC and Standard Chartered) to raise their holding to the ceiling.

Within the EVFTA, one of the signing parties may grant subsidies when they are necessary to achieve a public policy objective. The parties acknowledge that certain subsidies have the potential to distort the proper functioning of markets and undermine the benefits of trade liberalisation. In principle, a party should not grant subsidies to enterprises providing goods or services if they negatively affect, or are likely to affect, competition and trade.

As far as the UKVFTA is concerned, the policy is less tolerant. “In principle, a party should not grant subsidies to enterprises providing goods or services if they significantly negatively affect or are likely to significantly negatively affect trade between the two parties.”

In several areas, the EVFTA is more specific than the UKVFTA. There are for instance some notes on fruit and vegetables in accordance with the Common Customs Tariff provided for in Commission Implementing Regulations and successor acts, laying down detailed rules.

Binding Vietnam into more specific rules is a wise strategy to make sure products are high quality and stops sub-standard products entering difficult UK markets.

Global Britain

Following the UK’s decision to leave the EU, the UK faces many challenges. A key one was how to manage trade relations with countries that had previously benefited from the EU’s trade agreements. As a huge trading bloc encompassing 27 European nations the EU is, in terms of trade policy, a power factor that can forcefully assert its interests.

Of course, a medium-sized single country like the UK does not have this power. Therefore, concessions have to be made that a giant like the EU does not have to make. However, the sheer size of the EU means that the individual and sometimes conflicting interests of the individual member states have to be taken into account. As a result, decision-making processes sometimes remain protracted, as can be seen in the decade-long negotiations on the EVFTA.

Accordingly, Great Britain has the advantage of being very agile. This means that FTAs can be launched much more quickly. This is especially true if no major concessions are expected on the part of the contracting partner. In addition, existing agreements – such as the very comprehensive and modern EVFTA – can be used as a model.

“Global Britain” is the British government’s leitmotif for its post-Brexit foreign policy. It was used by Theresa May in her first major speech as prime minister at her party’s conference. It signals that the country would not be inward-looking after Brexit, but on the contrary would have a global perspective that goes beyond Europe.

As stated in the joint agreement between the UK and Vietnam in last December, the UKVFTA is “also a key step towards the UK joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership”. Therefore, the UKVFTA is only one, but an essential building block of the post-Brexit UK’s liberal trade policy. Many more agreements will follow.

In order to reposition Vietnam after the COVID-19 crisis, both the EVFTA and the UKVFTA are an important element on the road to economic recovery. After the pandemic has started to shake the world’s economy, Vietnam has used the time well.

In addition to these two FTAs, there are many other steps to take, above all the new investment law, which helps Vietnam to emerge stronger from the crisis. Vietnam’s goal in repositioning its economy is not reaching a “V-shaped” curve of improvement, as so many other nations hope; rather, it lies in a “square-root recovery” where the pre-crisis level is not only to be reached, but clearly surpassed in order to continue growing at a higher level.

The efforts of the Southeast Asian nation will be crowned with success, and most analysts are bullish about Vietnam’s prospects. The EVFTA and the UKVFTA stand for the open and liberal politics of Vietnam, and they will make Vietnam – especially in conjunction with the new investment law and EU-Vietnam Investment Protection Agreement – more attractive for foreign investors.

By Prof. Dr. Andreas Stoffers – Country director, Vietnam, The Friedrich Naumann Foundation for Freedom

People in Hải Dương Province wait for COVID-19 tests as part of the province’s large-scale testing campaign. —VNA/VNS Photo

HÀ NỘI — Sixteen new COVID-19 cases were confirmed in Viet Nam on Sunday evening, including 12 locally-transmitted patients in Hải Dương Province, bringing the total caseload to 2,448.

All the new locally-transmitted cases were found in quarantine facilities or isolated areas in Hải Dương, according to the National Steering Committee for COVID-19 Prevention and Control.

The four imported patients include three who entered the country via Mộc Bài border gate in southern Tây Ninh Province on February 14 and another who arrived via Thường Phước border gate in the Mekong Delta province of Hậu Giang on February 26.

A total of 32 COVID-19 patients were announced on Sunday to have fully recovered. — VNS

The famous Kim Long Ginger Jam in Hue has a distinct, spicy flavor. The ginger can neither be too old (as the final product will then lack smooth texture), nor can it be too young, because it will not have its characteristic pungency.

First, the ginger is peeled and sliced. Thin ginger slices are soaked in cold water with squeezed lemon juice for about 30 minutes in order to clean them, then mixed with sugar.

The ginger is then cooked in sugar syrup on wood fires for about an hour until the slices become more firm and the sugar is neatly wrapped around each slice.

To make this happen, the mixture has to be continuously stirred with chopsticks, so that it does not get burnt.

The ginger jam is then placed on a tray where it is cooled. Here, the jam-maker uses thin bamboo sticks to separate the ginger slices as they can easily stick together when hot.

What makes the Kim Long ginger jam special is that every step is done by hand, and it has no other ingredient except ginger and sugar – no additives are used. Regular buyers love the Kim Long ginger jam for its pure spicy-sweet flavour.

Currently, the Kim Long Ward has about 20 households making the jam in the traditional way.

Besides serving locals during Tet holiday, Kim Long ginger jam is also ordered year-round by dealers in cities across central Vietnam and also Ho Chi Minh City.

The park, located at a tourist sculpture tunnel at Tuyen Lam Lake National Tourist Complex, Da Lat city, Lam Dong province, has attracted the attention of locals and tourists from the first days after its launch.

It was initiated by Trinh Ba Dung, General Director of the Sculpture Tunnel Tourist Site, who also tells the story of Da Lat’s history with a complex of clay sculptures under a 1,200m-long tunnel at Tuyen Lam Lake National Tourist Complex.

The park lies under a pine forest canopy.

Mr. Dung is also the person that brought the Kilo submarine to the mountain, in the Submarine Tourism Area on the Mountain in Cam Lam district, Khanh Hoa province, with the model of a submarine same shape and size as the Kilo submarine of the army at Cam Ranh Port, by which he hopes to send the message that Vietnam is hospitable, peace-loving and ready to fight to protect the country.

“The world has admired Vietnam in its battle against the COVID-19 pandemic. I really appreciate the Vietnamese spirit and the Government’s decisive and timely leadership, which has brought about very good results. That helped me form the idea of building this park, thereby, continuing to send the message of a safe and peaceful Vietnam to international friends,” said Dung.

Mr. Trinh Ba Dung introduces a model to send the message of “Only leave your house when it is really necessary”.

On the large steel clock placed at the entrance, each hour is an anti-epidemic measure (keep distance, disinfection, medical declaration, wear face masks etc), essential items for epidemic prevention (field hospitals, disinfection spray, breathing apparatus, communication) and 12 o’clock features the Vietnamese people unanimously joining the Government to repel the epidemic.

The number 2021 also communicates a belief in the defeat of the coronavirus. At position 0 (2020) is standing the coronavirus. At number 1 (2021), there is a model featuring medical staff defeating the evil virus and bringing back joy. At the entrance, the name “COVID-19 Park” appears on the ground, meaning that when we bury COVID-19, life will be green.

The model reflecting faith in defeating COVID-19.

Ms. Vu Thi Hue, a tourist from Hai Phong, said: “This beautiful park built under a pine forest sends a very practical and meaningful message. Let us join hands to spread the message on disease prevention and control to make people more aware, and contributing more to repelling COVID-19 in the shortest time possible, bringing a peaceful life back.”

Uprooting the evil coronavirus.

Unanimously knocking-out COVID-19.

According to the owner of the park, the idea was something he wished to do for quite a long time, and after more than three months, his collaborators joined him in making 80 sculptures, followed by a theme to make everyone understand the story of Vietnam uniting and effectively fighting against COVID-19.

Antiseptic solution fighter “blowing” out COVID-19.

Covid-19 will have to surrender.

“The greatest value is the image and reputation of the nation in the fight against the pandemic. When there is a safe and reputable destination, many people in various fields will pay attention and look for it,” said Dung.

Inside the park, each cluster of sculptures represents each level of COVID-19 epidemic prevention and control, from the crude “weapons”, to science and technology advances and the quest to destroy the coronavirus, forcing it to surrender. The last area shows how human civilisation is the “supreme court on earth” in condemning the evil virus.

Sentencing of Covid-19.

Bringing COVID-19 to prison awaiting execution with a vaccine.

Taking her children to visit the park, Ms. Nguyen Thi Thu Hong from Ho Chi Minh City said: “This park is very meaningful, especially children. I find it very interesting and useful, as the messages from the models will add to the feeling of optimism regarding quickly destroying the epidemic.”

Currently the world is grappling with the epidemic, and “COVID-19 Park” is a spiritual dish reinforcing a belief in victory over the pandemic, introducing to international friends a safe and beautiful Da Lat as well as Vietnam.

Vietnam joining the world to smash the epidemic.

This comment was made by Outbox Consulting – a company specialising in providing in-depth research and consulting solutions for the tourism and hospitality sectors in Vietnam in a report on Vietnam’s Travel Trends in 2021, announced on February 24.

Changing travel habits

Before COVID-19, exploring a crowded city, strolling through bustling markets, enjoying dinner at a bistro brimming with locals, or touring major attractions were Vietnamese tourists’ favourite activities. However, as the epidemic has still been fully resolved, tourists are now giving their top priority to their safety in the new situation.

Therefore, socially distant travel is expected to be the trend once again in 2021. Travelers will select sparsely populated areas nearby so that they can set plans and tours that align with their travel demands and ensure protection from the pandemic.

Vietnamese tourists often spend 2-3 days, especially weekends or short holidays, travelling to domestic destinations. This year once again, they will choose destinations that are easy to move and near their cities they live.

Coastal and island destinations are still the Vietnamese tourists’ favourite, with Vung Tau and Nha Trang emerging as popular destinations for domestic tourists. In addition, other famous tourist sites such as Ha Long, Sapa, Phu Quoc and Da Lat will attract a large number of visitors.

If socially distant travel is how independent travelers will adapt to the new situation, small group travel is the choice for people who want to travel as a group and adapt to the current situation.

Different from regular trips in 2019 that could accommodate 20 – 30 visitors, sizes have shrunk down to control the spread of infectious diseases.

According to Outbox Consulting, the COVID-19 pandemic will make wellness travel an emerging trend this year. Wellness travel is not a new trend in the tourism industry; however, during the pandemic, fatigue and stress have become familiar to almost everyone. So, after the pandemic is controlled, visitors will find wellness retreats useful after a long period of repressed travel demand.

Vietnam was considered an emerging destination in the wellness travel trend in the Asian Pacific region in 2019. This, combined with an increase in visitors’ demands for wellness travel trends in 2021 will present an opportunity for Vietnam’s wellness tourism market, especially as Vietnam is emerging as a safe destination in terms of controlling the pandemic.

Another feature that has emerged during the outbreak of COVID-19 pandemic is that visitors tend to book accommodation at the last minute because they they perceive it may be harder to cancel and get a refund for hotel bookings as opposed to flight tickets.

Pre-COVID, Vietnamese travelers often planned their trip and booked services long before their departure, especially when it came to overseas tours, in order to save money. However, in the face of the complicated developments of COVID-19, shorter booking timeframes will help mitigate the risk of travel policy changes and mobility restrictions.

Contactless technology to inspire traveler confidence

The use of technology in tourism has long been popular across the world and in Vietnam in recent years. The COVID-19 pandemic sped up this digital transformation in 2020.

This year, technology will be a leading factor helping visitors regain their confidence. A survey conducted by Censuswide tshowed more than 4 out of 5 travelers said that technology would increase their confidence to travel in the next 12 months. They noted that a mobile app that provides warnings and updates during trips, for example local outbreaks or the government’s latest guidelines, will be essential this year.

In addition, contactless payments (for example, Apple, Google Pay, PayPal, and Venmo) will help tourists travel more confidently within next 12 months. In 2021, safety will be of paramount importance, and simple technological solutions will be the driving force for travelers to explore the world more confidently. Vietnamese tourists are part of the general global technological .

Commenting on the roadmap for the recovery of Vietnam’s tourism, the Outbox Consulting report said it will depend on foreign countries’ ability to control the epidemic. Beside vaccines, the speed of tourism’s recovery depends partly on factors that boost destinations reopening timeframes.