EVFTA expected to help boost prosperity, social advance

VGP – The trade and investment deals between Viet Nam and the EU are expected to add greater substances to national progress and help the country improve legal framework for the development of the socialist-oriented market economy.

June 26, 2019 10:56 AM GMT+7

Minister of Industry and Trade Tran Tuan Anh

Minister of Industry and Trade Tran Tuan Anh granted an interview to press agencies on June 25 on the importance of the EVFTA and the EU-Viet Nam Investment Protection Agreement (EVIPA) to the cooperative ties between Viet Nam and the EU.

The European Commission on June 25 approved the contents of the EVFTA and the EVIPA. According to the latest press release of the European Commission, Viet Nam and the European Union will sign trade and investment agreements in Ha Noi on June 30, 2019.

Viet Nam has inked 12 bilateral and multi-lateral FTAs so far, said Anh, stressing the meaning and crucial role of the EVFTA in the nation’s strategy and integration as it is a new FTA with high and comprehensive standards, which requires demands for opening market.

Viet Nam will enjoy the reduction of 100% of tariff lines from the EU within 7 years from the effective date.

The EVFTA is a comprehensive agreement with 17 chapters and two Protocols in all spheres of trading, service, investment, preferential conditions on Government procurement, trade protection, preferentiality for small and medium-sized enterprises and intellectual property.

As the agreement comes into force, Viet Nam not only upgrades its two-way trade value with the EU but also has more opportunities to complete and improve the competitiveness capacity for the economy, especially forming a new value chain with other key partners, the Minister affirmed.

Referring to attracting investment from the EU after the two agreements are signed, Anh said that the investment environment and business conditions in Viet Nam for European enterprises will be remarkably improved and a number of big issues related to investment protection and investment disputes will be addressed in line with the international laws and laws in Viet Nam and the EU.

European firms will be facilitated to continue investment in advantageous industries in Viet Nam such as food processing, high tech and key sectors such as automobile production, electronics and auxiliary industry.

Viet Nam's exports to the EU witness annual growth exceeding 10% in 2016-2018 period.

The Minister highlighted the Viet Nam’s export growth to the EU expanded by 17%, reaching US$42.5 billion in 2018.

In the first year from the effective date, more than 85.6% of tariff lines from Viet Nam will be reduced, or even to 0%.

Thanks to the EVFTA, Viet Nam’s key export items such as rice, coffee, honey, fruits and aquatic products will enjoy high preferentiality in the first year.

Other items the nation expects to achieve strong export growth in the EU including garments, footwear, wood processing, information technology and petrochemical industry will enjoy preferential tariff in the next coming years.

By Thuy Dung