EVFTA-A jolt for post-Covid-19 economy

Recently, in the 9th session of 14th National Assembly, statements of the EU – Vietnam Free Trade Agreement (EVFTA) and The EU-Vietnam Investment Protection Agreement (EVIPA) were submitted to N.A. In early June 2020, the National Assembly is expected to officially approve the trade deal, ending 9 years of negotiation. EVFTA is expected to further boost trading ties between EU and Vietnam, extent Vietnam’s export market as well as create a new jolt for post-Covid-19 Vietnam economy.

Under the agreement, EU will abolish about 85,6% the import tax, equivalent to 70,3% the Vietnam’s export turnover after this Agreement is effective. Therefore, most of the products and services exported to Europe, taxes will be abolished. For products and services that are not eligible for incentives, within 7 years after this Agreement takes effect, the EU will abolish import duties on 99.2% of tariff lines equivalent to 99.7% of Vietnam’s export turnover. The remaining 0.3% of export turnover will be committed by the EU with tariff quotas with the import tax rate in the quota of 0%.

Mr. Florian Beranek, The European Chamber of Commerce in Vietnam: However, in order to take advantage of EVFTA, Vietnam exporters should improve their product quality to meet all EU’s strict criteria both in technique and non-technique. Moreover, beside EU’s common criteria, each member market has their own criteria.

Mr. Pereric Hogberg, Swiss ambassador to Vietnam: Once EVFTA and EVIPA are approved, Vietnam is the world’s only developing country and 2nd country in ASEAN signing trade deal with EU- the world leading economic community with 27 members. This is also a big challenge for Vietnamese enterprises./.