The EU-Viet Nam Free Trade Agreement (EVFTA) is a significant economic milestone for Viet Nam.The EU-Viet Nam Free Trade Agreement (EVFTA) marks a new chapter in Viet Nam-EU relations, and together with the EU-Singapore FTA, paves the way for more trade agreements with other ASEAN members and the EU, or even an ASEAN-EU multilateral FTA.
The Singapore-based newspaper, The Business Times has recently released an article highlighting new opportunities in EU-Viet Nam trade as well as new opportunities for ASEAN as the EVFTA takes effect since August 1.
At the beginning, the article stresses that the EVFTA is a significant economic milestone for Viet Nam, adding that the EU is already Viet Nam’s second largest export designation and Vietnamese exports to the Eurozone have grown consistently in recent years.
Viet Nam has steadily emerged as an attractive alternative sourcing and production location, the article says, asserting that “the country is in a prime position to capture opportunities from pent-up investment demand and shifting global production trends”.
Referring trade opportunities brought by the EVFTA, the article writes that the trade agreement will make substantial cuts to tariffs between the two trading partners, and will ultimately eliminate 99% of all tariffs in the future.
With the EVFTA having entered into force, 70% of Vietnamese exports will now enter the EU’s 26 Member States duty free. The remaining tariff lines’ items will be reduced gradually over seven years.
One distinguishing aspect of the EVFTA is its focus on sustainable trade, and a shared vision on labor, corporate social responsibility and environmental conservation. These values will have far reaching potential to improve the competitiveness of Vietnamese businesses and their brands./.