The Vietnamese Ministry of Industry and Trade and the Eu
ropean Commission have released the text of the EU-Vietnam Free Trade Agreement (EVFTA), whose negotiations were finalized last December.
The text will now be subject to a legal review to verify its consistency and ensure that all the provisions are formulated in a legally-sound way.
After the legal review, Vietnam and the EU will sign the FTA and expect to enact it in early 2018.
“Vietnam is a fast-growing economy of more than 90 million consumers with a growing middle class and a young and dynamic workforce. Its market offers numerous opportunities for the EU’s agricultural, industrial and services exports,” said EU Trade Commissioner Cecilia Malmström.
“The agreement will also help trigger a new wave of high quality investment in both directions, supported by our new investment dispute resolution system with an appeal mechanism,” she added.
As soon as the deal enters force, the EU will remove 85.6% of tariffs on Vietnamese import. Almost all tariffs for goods originating from Vietnam will be eliminated after seven years.
There are also commitments in services, public procurement, non-tariff barriers, export duties and a good regulatory package.
After Singapore, Vietnam is the second ASEAN
partner which has concluded an FTA with the EU.
The EU is Vietnam’s second-largest trade partner. Exports to the EU have multiplied by three over the last five years, representing $30.9 billion in 2015 whereas imports totaled $10.3 billion, according to the Delegation of the European Union to Vietnam.
In 2015, the EU became Vietnam’s third-largest investor, climbing up from the sixth position in 2014.