On 8th June 2020, during the plenary session in Hanoi, the National Assembly of Vietnam ratified the EU-Vietnam Free Trade Agreement (EVFTA) and EU-Vietnam Investment Protection Agreement (EVIPA).
“The EVFTA will enter into force soon, while the EVIPA will be implemented later, following ratification in each individual EU member state. This historic milestone signals the start of a new relationship with the European Union. This agreement represents a vote of confidence in Vietnam, as it is just the second ASEAN nation to sign an FTA with the EU. It will usher in an era of increased trade and investment, and begin the process of phasing out almost 99 per cent of tariff lines and barriers to trade over the next decade. It will also open up new markets to European investment and innovation, and promote sustainable development in Vietnam”
The adoption of the trade and investment deals represents a great progress in the relations between the EU and Vietnam on the occasion of the 30th anniversary of diplomatic ties between the two sides.
The two agreements are expected to forge a solid foundation for investment and trade opportunities between the two sides. Vietnam represents the second largest exporter, among the ASEAN members, to the EU.
Last February, the European Parliament (EP) passed the EU-Vietnam Free Trade Agreement (EVFTA) and the EU-Vietnam Investment Protection Agreement (EVIPA).
Under the agreement, Vietnam will cut 65% of import tax on EU commodities after the deal takes effect, while the rest will be erased over a 10-year period. Meanwhile, the EU will cut more than 70% of tariffs on Vietnam’s commodities after the deal takes effect, while the rest will be abolished over the seven subsequent years.