APD | EU-Vietnam free trade agreement signed

By APD writer Alice

Hanoi, July 1 (APD) -The EU – Vietnam Free Trade Agreement (EVFTA) was officially inked on June 30 after nine years of negotiation.

The ceremony, witnessed by Vietnamese Prime Minister Nguyen Xuan Phuc, also saw the signing of the EU – Vietnam Investment Protection Agreement (EVIPA).

Vietnam is the fourth country in Asia-Pacific and the second in ASEAN signing the deal.

Once the EVFTA takes effect, over 99 percent of tariff on goods from both sides will be lifted, thus helping to improve competitiveness as well as market share of Vietnamese products in the EU market.

The EVFTA and EVIPA are of high standards and the most ambitious agreements concluded between the EU and a developing country.

After the signing, the EVFTA and EVIPA are expected to be submitted to the European Parliament for approval.

In an interview granted to the Vietnam News Agency (VNA) after the signing, Chairman of the Vietnam Chamber of Commerce and Industry (VCCI) Vu Tien Loc described the signing of the EVFTA on June 30 as a steady anchor for the cooperative relations between Vietnam and EU members.

The pact brings good chances for Vietnam to access the EU market with over 500 million high-income people, he said, adding that the EU is already the largest export market of Vietnam apart from Asia, making up over 20 percent of the export turnover of Vietnam.

According to Loc, Vietnam and the EU are two supplementary economies without direct competition. Therefore, the completion of the bilateral free trade agreement will open up numerous cooperation opportunities.

The EU is home to the world’s leading economies with numerous global corporations and groups, so Vietnam could enhance trade and investment cooperation between domestic businesses and foreign partners, thus enabling them to participate in global value chains.

Vietnam will also have opportunities to boost exports and attract high quality and environmentally friendly investment flows, Loc said.

He added that the pressure will be heavy but the opportunities will be enormous.

The business leader urged the Government to push ahead with reforms to facilitate business development. The Ministry of Industry and Trade, the Ministry of Planning and Investment and the VCCI should get ready to disseminate information on the trade pact among business associations and enterprises as well as support them in the global integration process.

Businesses themselves should increase competitiveness and promote innovation towards sustainable development, he said.

The VCCI leader forecast that the EVFTA could help double Vietnam’s exports to EU countries, explaining that European firms want to invest in Vietnam to manufacture products for export back to Europe or other markets.

(ASIA PACIFIC DAILY)