Vietnam-EU trade deal to eliminate 99% of custom duties
The long negotiated and much discussed trade agreement between Vietnam and the European Union (EU) came finally into force on August 1. The deal will phase out custom tariffs over a decade for Vietnam and over seven years for the EU with the target of ultimately scrapping duties on 99 per cent of all goods and services traded between the two sides.
The European Union Vietnam Free Trade Agreement (EVFTA), signed in Hanoi in June last year, is the most comprehensive trade agreement the EU has concluded with a developing country so far and the second in the ten-member Association of Southeast Asian Nations, or ASEAN, after Singapore.
It was, however, accompanied by criticism over Vietnam’s policies to ignore environmental and human rights which is why the agreement included clauses on labour laws and environmental sustainability.
Despite pleas of activists who voiced doubt over the real impact of Vietnam’s labour reforms and pointed to further concerns about freedom of expression, deforestation, overfishing and animal trafficking, the European Parliament approved the deal in February.
“Open doors to new markets”
The European Commission’s president Ursula von der Leyen said the deal would “open doors to new markets” and create jobs in Europe, where the economy has been badly battered by the coronavirus pandemic.
“The European economy needs now every opportunity to restore its strength after the crisis triggered by the coronavirus,” von der Leyen said in a statement, adding that the agreement would also “become an opportunity for the people of Vietnam to enjoy a more prosperous economy and witness a positive change and stronger rights as workers and citizens in their home country.”
Vietnam is the EU’s second-biggest trading partner in Southeast Asia after Singapore, with a total trade balance of goods and services of nearly €50 billion as of 2018.
The EU’s main exports to Vietnam are high-tech products, including electrical machinery and equipment, aircraft, vehicles and pharmaceutical products, while Vietnam mainly exports electronic products, footwear, textiles and clothing, as well as coffee, rice, seafood and furniture to the EU.
With a total foreign direct investment volume of €7.4 billion as of 2018, the EU is one of the largest foreign investors in Vietnam. Most EU investments are in industrial processing and manufacturing.
The long negotiated and much discussed trade agreement between Vietnam and the European Union (EU) came finally into force on August 1. The deal will phase out custom tariffs over a decade for Vietnam and over seven years for the EU with the target of ultimately scrapping duties on 99 per cent of all goods and services traded between the two sides. The European Union Vietnam Free Trade Agreement (EVFTA), signed in Hanoi in June last year, is the most comprehensive trade agreement the EU has concluded with a developing country so far and the second in the ten-member Association...
The long negotiated and much discussed trade agreement between Vietnam and the European Union (EU) came finally into force on August 1. The deal will phase out custom tariffs over a decade for Vietnam and over seven years for the EU with the target of ultimately scrapping duties on 99 per cent of all goods and services traded between the two sides.
The European Union Vietnam Free Trade Agreement (EVFTA), signed in Hanoi in June last year, is the most comprehensive trade agreement the EU has concluded with a developing country so far and the second in the ten-member Association of Southeast Asian Nations, or ASEAN, after Singapore.
It was, however, accompanied by criticism over Vietnam’s policies to ignore environmental and human rights which is why the agreement included clauses on labour laws and environmental sustainability.
Despite pleas of activists who voiced doubt over the real impact of Vietnam’s labour reforms and pointed to further concerns about freedom of expression, deforestation, overfishing and animal trafficking, the European Parliament approved the deal in February.
“Open doors to new markets”
The European Commission’s president Ursula von der Leyen said the deal would “open doors to new markets” and create jobs in Europe, where the economy has been badly battered by the coronavirus pandemic.
“The European economy needs now every opportunity to restore its strength after the crisis triggered by the coronavirus,” von der Leyen said in a statement, adding that the agreement would also “become an opportunity for the people of Vietnam to enjoy a more prosperous economy and witness a positive change and stronger rights as workers and citizens in their home country.”
Vietnam is the EU’s second-biggest trading partner in Southeast Asia after Singapore, with a total trade balance of goods and services of nearly €50 billion as of 2018.
The EU’s main exports to Vietnam are high-tech products, including electrical machinery and equipment, aircraft, vehicles and pharmaceutical products, while Vietnam mainly exports electronic products, footwear, textiles and clothing, as well as coffee, rice, seafood and furniture to the EU.
With a total foreign direct investment volume of €7.4 billion as of 2018, the EU is one of the largest foreign investors in Vietnam. Most EU investments are in industrial processing and manufacturing.
