EVFTA has just been ratified by Vietnam and is about to take effect
The European Union Vietnam Free Trade Agreement (EVFTA) and the EU-Vietnam Investment Protection Agreement (EVIPA) signed on 30 June 2019, will enter into force soon.
The agreements has just been ratified by the Vietnamese National Assembly this morning 8 June 2020.
Earlier, The European Parliament gave its consent to both Agreements on 12 February 2020 and the Free Trade Agreement was concluded by Council on 30 March 2020.
As such, Vietnam and EU only need to complete the notification procedure. The EVFTA agreement will then take effect in 30 days. Regarding EVIPA, it needs to be ratified by EU member states to take effect.
This free trade agreement will eliminate 99% of all tariffs on both sides. Namely, about 64.5% of Vietnam’s value of imports from the EU and 70.3% of Vietnam’s value of export to the EU will immediately be exempt from tariffs. The tariffs for the remaining goods will gradually reduce to 0% in 10 years.
The agreement provides the best access to the Vietnamese services markets ever granted by Vietnam to a trade partner. It will substantially improve access for EU companies to a broad range of services sectors like: maritime transport, postal and courier services, environmental services, banking and insurance.
The agreements are also the second (following those with Singapore) to have been concluded between the EU and a Southeast Asian country. Vietnam is the EU’s 17th trade in goods partner and its second most important trading partner in ASEAN region. As a whole, ASEAN is the EU’s third largest trading partner outside Europe (after the US and China).