Once the EU – Vietnam Free Trade Agreement (EVFTA) and the EU – Vietnam Investment Protection Agreement (EVIPA) become effective, the Vietnamese government would implement a national action program to ensure successful implementation of these agreements, according to Prime Minister Nguyen Xuan Phuc.

Overview of the meeting. Source: VGP.

The European Parliament (EP)’s decision to ratify the EVFTA and EVIPA is a significant event marking 30^th anniversary of the establishment of diplomatic relations between Vietnam and the EU, said Phuc in a meeting with Ambassador and Head of the EU delegation to Vietnam Pier Giorgio Aliberti on February 13.

Phuc expressed his thanks to members of the EP for their support of the two agreements, emphasizing Vietnam’s strong efforts to fulfil its commitments to the deals.

Aliberti said a majority of support from members of the EP in a voting for the EVFTA and EVIPA ratification showed positive assessment of the EU to Vietnam and the bloc’s confidence in the country’s reform process.

Aliberti said this is a historic moment for both parties, but warned that this is just the beginning towards the implementation of the deals.

The ambassador expressed his strong belief that Vietnam would be able to grasp opportunity from the deal, while the EU would accompany Vietnam during the implementation process.

PM Phuc said he has instructed government agencies to speed up internal procedures, for which the National Assembly of Vietnam is scheduled to approve both the EVFTA and EVIPA in the coming session, set to convene at end-May.

As Vietnam’s development level is significantly lower than the EU's, Phuc expected the EU to support Vietnam in implementing the deals.

Additionally, Vietnam has taken over the ASEAN chairmanship in 2020, so this is also an opportunity to facilitate the EU – ASEAN relations, Phuc said.

Vietnam fully supports and creates favorable conditions for the success of EU investors in the country, Phuc stressed.

The EU is one of Vietnam’s largest trade partners with turnover of US$56.45 billion in 2019, up 1.11% year-on-year, in which the bloc exported goods worth US$41.54 billion and imported goods worth US$14.9 billion.

As of 2019, the EU had 2,375 ongoing projects in Vietnam with combined registered capital of US$25.49 billion, accounting for 7.07% of total projects and 7.03% of investment value.

A study from Vietnam’s Ministry of Planning and Investment suggested the EVFTA and EVIPA would help Vietnam’s GDP grow an additional 4.6% and boost the country’s exports to the EU by 42.7% by 2025.

Meanwhile, the European Commission estimated the bloc’s GDP would be added US$29.5 billion by 2035, along with additional growth of 29% in exports to Vietnam.