Vietnam is ready to implement both the EU – Vietnam Free Trade Agreement (EVFTA) and the EU – Vietnam Investment Protection Agreement (EVIPA), according to Le Thi Thu Hang, spokesperson of the Ministry of Foreign Affairs.

Vietnam is ready to implement both EVFTA and EVIPA.

“After the National Assembly’s ratification of the two agreements on June 8, the EVFTA is set to take effect on August 1 at the earliest,” Hang said at a press conference on June 11, adding the effective date of EVIPA remains pending approval of EU state members.

The ratification and soon implementation of both the EVFTA and EVIPA would bring substantial benefits for all parties involved, and create new driving forces for further cooperation between Vietnam and the EU, Hang stressed.

More importantly, the trade deal would contribute to Vietnam’s ongoing efforts in global economic integration and diversifying its markets, Hang added.

The EVFTA, officially signed last June after six years of negotiations, has been dubbed “the most ambitious” FTA the EU has ever reached with a developing country, according to the European Commission. It includes not only 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. 

On March 30, the European Council (EC) adopted a decision on the conclusion of the EVFTA following the ratification by the European Parliament on February 12. This decision cleared the path, on the EU side, for the entry into force of the agreement.

A pre-Covid-19 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. 

The EU is one of Vietnam’s largest trade partners with turnover of US$56.45 billion in 2019, of which Vietnam exported goods worth US$41.54 billion and imported goods worth US$14.9 billion.