After a long period of negotiation, the Free Trade Agreement between the European Union (“EU”) and Vietnam (“EVFTA Agreement”) was officially signed in Hanoi last Sunday, 30/6/2019. Previously, on June 25, 2019, the EU announced the signing of a Free Trade Agreement with Vietnam, the second-largest trading partner in the Southeast Asian region of the EU.
When the EVFTA Agreement comes into effect, 65% of the import tariff lines on EU imports into Vietnam will be removed, and the rest will be gradually reduced to eliminate under the long-term roadmap of ten years. Similarly, 71% of import tariffs on Vietnamese goods imported into the EU will be removed immediately.
According to the Council of the European Union, the value of two-way trade in goods between the EU and Vietnam is 50 billion Euros annually and 4 billion Euros of the trade value of services.
In addition to the EVFTA Agreement, the Agreement on Investment Protection (“EVIPA”) between Vietnam and the European Union has also been signed.