(VNF) - Friedrich Naumann Foundation (FNF) in Vietnam, together with the Vietnam – Germany Friendship Association held on September 30^th a workshop titiled “Brexit impacts on Vietnam and Germany economies”.

The seminar on September 30^th. (Photo: Hoang Vu)

The workshop was part of activities to celebrate 41 years of diplomatic relations between the two countries and 5 years since Vietnam and Germany became strategic partners.

Attending the seminar were representatives of the Vietnam Union of Friendship Organizations (VUFO), the Vietnam – Germany Friendship Association, the German Embassy in Vietnam, the FNF Vietnam with guests, members interested to the topic.

According to the report of the seminar, Brexit is currently hot issues emerging in Europe, has far-reaching effects not only on inpidual Member States of the European Union (EU) but also in the world. The United Kingdom people's referendum vote in favor of Britain leaving the EU has shaken the entire EU with the remaining 27 member states.

Dr. Wolfgang Manig speaks at the seminar. (Photo: Hoang Vu)

Specifically, for Germany, according to Dr. Wolfgang Manig, German Deputy Ambassador in Vietnam, German economy is growing, in spite of Brexit. Because the Germany domestic economic environment is stable, export results of Germany in 2016 is relatively high and the only real challenge appears when the British government officially notify the bloc of its wish to leave by using Article 50 of the Lisbon Treaty.

Article 50 triggers the start of a two-year process of exit talks before the UK is expelled from the 28-member bloc and the impact will depend on the outcome of these negotiations.

As for Vietnam, Mr. Do Son Hai, Dean of International Politics Department, Diplomacy Academy of Vietnam: just as the EU, if based on only the index trade between Vietnam and the UK, Brexit is yet to have any enormous impacts on Vietnam by stature of two countries’ bilateral relations.

Two-way trade between Vietnam and the UK reached USD4.27 billion (2013), USD4.45 billion (2014) and USD4.65 billion (2015).

Apart from the European market, the UK’s position to Vietnam would not change much because the two countries had fundamental strategic relationship established since 2010.

However, when viewed as a whole, the British vote to leave the EU would not have immediate impacts on Vietnam, but long-term impacts must be taken into account.

Mr. Do Son Hai, Dean of International Politics Department, Diplomacy Academy of Vietnam. (Photo: Hoang Vu)

Firstly, Vietnam - Britain trade relations will have to change when no longer under the EU umbrella. Period after the UK exits the EU, the entire system of criteria of price, quality and form of the transaction will be adjusted, which will be mutually negotiated in difficult or easy ways.

Second, Brexit would put Vietnam into a dilemma in its relations with Britain on one side and the EU on the other side.

Third, Brexit raises the question of policy on international integration. The degree of difficulty of Vietnam met will depend heavily on the ability to enable trade protection or promoting nationalism of this phenomenon.

Ultimately, the overall impact of Brexit would have on Vietnam probably is the emergence requires both domestic and foreign policy adjustments, in order to adapt to the Brexit phenomenon.

In an interview, Mr. Hai said the workshop is useful, particularly for the agencies directly related to economic issues, such as the Ministry of Industry and Trade. Brexit impacts to Vietnam because Britain is one of four pillars of the EU and is a strategic partner of Vietnam./.

Minh Phuong