Hanoi (VNA) - The EU-Vietnam Investment Protection Agreement (EVIPA)is expected to create a favourable environment for Vietnam to attract further investmentin fields where the EU holds strengths, such as finance, telecommunications,transport, distribution, processing, hi-tech manufacturing, and clean andrenewable energy.

According to the Ministry of Planning and Investment (MPI), the implementationof the commitments in the EVIPA, which was approved by the National Assembly onMonday, will encourage Vietnam to improve its institutions and policies, makingthe country’s investment and business environment more transparent and welcoming.

Investment from the EU is projected to support the development of domesticeconomic sectors. Through production links with EU-invested enterprises, Vietnameseones will have the opportunity to join global and EU value and supply chains.

The agreement will offer opportunities for local enterprises to acquire technologiesand skills transferred by partners in the EU, improving the competitiveness ofthe national economy.

The MPI also underlined, however, the need for Vietnam to adopt comprehensivesolutions to improve constraints relating to management policy, infrastructure,and human resources, thus meeting the needs of national economic development ingeneral and those of investors from the EU in particular.

Incentive mechanisms should be issued to encourage and direct foreign-investedenterprises towards cooperating with domestic enterprises to form and developsupply chains, the ministry said.

It is also necessary to complete early warning mechanisms to address investmentdisputes, it added./.