According to the European Business Association in Vietnam (EuroCham), the European Parliament has just approved a free trade agreement between the European Union and Vietnam (EVFTA) and the Investment Protection Agreement (EVIPA).
In a decisive vote in Strasbourg, members of the European Parliament voted in favor of the agreement.
The next and final step before EVFTA can go into effect is the vote of the Vietnam National Assembly.
EVFTA will remove nearly 99% of tariff lines and trade barriers between Vietnam and the EU. Two-thirds (equivalent to about 65%) of the value of exports from the EU and 71% of exports from Vietnam will be liberalized at the time of entry into force of the Agreement. The remaining tax lines will be abolished in the next ten years.
EVFTA also includes important regulations on environmental protection and labor rights, helping Vietnam harmonize the goals of sustainable economic growth and environmental protection.
Commenting on the European Parliament's adoption of EVFTA and EVIPA, Nicolas Audier, President of EuroCham, said that this was a historic moment of European-Vietnam relations, opening a new chapter on trade enhancement. and investment between the two sides.
These agreements will allow European businesses to stay ahead of the socio-economic development trend in Vietnam. Vietnamese businesses have more opportunities to participate in European markets, products and services. Similarly, European companies can also penetrate deeper into Vietnam's thriving market.
According to the Ministry of Industry and Trade, the EU is one of Vietnam's largest export markets, with exports to this market in 2019 reaching US $ 41.48 billion and imports reaching US $ 14.91 billion.
The single markets in the EU with an export value of over 1 billion USD in 2019 are the Netherlands (6.88 billion USD), Germany (6.56 billion USD), the UK (5.76 billion USD) France ( 3.76 billion USD, Italy (3.44 billion USD), Austria (3.27 billion USD), Spain (2.72 billion USD), Belgium (2.55 billion USD), Poland (1, US $ 5 billion) and Sweden (US $ 1.18 billion).
In 2019, the EU has 2,375 projects (an increase of 182 projects compared to 2018) from 27/28 valid EU countries in Vietnam with a total registered capital of US $ 25.49 billion. (up 1.19 billion USD) accounted for 7.70% of the country's projects and accounted for 7.03% of the total registered investment capital of other countries.
Therefore, EVFTA will help Vietnam facilitate export, diversify markets and gain higher added value through the establishment of new supply chains.
In particular, in the context of rapidly changing regional and international political and security situations, the EVFTA Agreement has helped Vietnam improve its internal resources to cope with and help strengthen trying to position themselves to implement the foreign policy of independence, autonomy, multilateralization and diversification along with consolidating and strengthening national defense and security.
According to NNVN
