Vietnam, EU to sign EVFTA late June: PM
The EVFTA would prove significant for Vietnam, and lays a strong foundation for the country to further integrate into the global market.
The EU – Vietnam Free Trade Agreement (EVFTA) is scheduled to be signed on June 30 in Hanoi, according to Prime Minister Nguyen Xuan Phuc.
Prime Minister Nguyen Xuan Phuc. Source: VGP.
|
According to Phuc, the EVFTA would prove significant for Vietnam, and lays a strong foundation for the country to further integrate into the global market.
The European Commission has described the EVFTA as the most “ambitious” free trade deal and also the first of its kind the bloc ever concluded with a developing country.
In addition to the deal, the EU currently has two FTAs with Singapore – subject to approval, and Japan, which came into force in early February.
The EVFTA not only includes the almost full elimination of bilateral tariffs, but also a substantial reduction of non-tariff barriers. Moreover, it includes provisions to protect intellectual property, labor, environmental standards, and fair competition, while promoting regulatory coherence.
Under the country’s EVFTA commitment, Vietnam would remove 65% of import tariffs for European goods right after the deal becomes effective. The remaining would be gradually removed in the next 10 years.
In return, the EU is committed to removing 71% of import tariffs for Vietnamese items, and the remaining in the next seven years.
It is estimated that the EVFTA will add 0.1 percentage point (ppt) on average to Vietnam’s real GDP growth each year based solely on its trade impacts, according to HSBC’s report.
The European Commission estimates that Vietnam’s exports to the EU would grow by around 18% as a result of the agreement, while the EU’s exports to Vietnam are slated to increase by around 29%.
Over the past ten years, trade turnover between the EU and Vietnam has increased 10-fold to US$53 billion in 2018. The EU is currently Vietnam’s third largest trading partner, while Vietnam is the bloc's 19th largest partner in the world, and the second largest in Southeast Asia, behind Singapore, according to the Vietnam Chamber of Commerce and Industry (VCCI).
08:41, 2025/01/11
Vietnam-Laos Industrial Park: New direction to strengthen bilateral ties
Numerous Vietnamese projects in various sectors have effectively contributed to Laos' development, creating jobs and improving the livelihoods of tens of thousands of local workers.
22:19, 2025/01/09
Hanoi's foreign trade turnover hits US$60.1bn in 2024
The city will continue to support businesses in exploring new markets, capitalizing on the Free Trade Agreement of which Vietnam is a member.
11:46, 2025/01/09
Vietnam confident of achieving 8% growth rate in 2025
Key drivers of Vietnam’s growth include institutional reforms and decentralized governance.
14:34, 2024/12/26
UK’s accession to CPTPP to benefit Vietnam’s exports in 2025
Vietnam, in particular, will gain further access to a high-quality market, complementing its connections with Japan, Canada, and Australia.
16:41, 2024/12/16
Hanoi seeks greater efficiency in e-commerce tax management
Hanoi's e-commerce tax administration is expected to be significantly tightened in the near future.
17:34, 2024/12/15
Hanoi's wet markets in decline amid changing consumer behaviors
Local consumers prefer shopping options that offer convenience and assurance of product origin.