EVFTA is ratified by the National Assembly of Vietnam

Monday, 08/06/2020 17:03
(CPV) - The National Assembly Vietnam adopted a bilateral free trade agreement between the EU and Vietnam (EVFTA) on June 8th 2020 by 457 votes in favour EVFTA - the most ambitious trade agreement: after eight years of negotiations, the EVFTA is coming up to its ratification in this summer.

The agreement is important for the German economy, because Vietnam has a trade volume of around 14 billion EUR - comparable to Canada - and Vietnam is Germany's second biggest trading partner in the ASEAN region. More than 4,000 German companies have already been exporting to Vietnam, thereof 69 percent are small and medium-sized enterprises (SMEs).

The EVFTA might come into force in August this year. The EVFTA will eliminate over 99 per cent of tariffs, with the EU removing duties on thousands of items sourced from Vietnam. Meanwhile, Vietnam will liberalise 65 per cent of import duties on EU exports to Vietnam, with the remainder of duties being gradually eliminated over a 10-year period. The EVFTA will benefit EU businesses exporting and investing in Vietnam.

The elimination of bilateral tariffs and export taxes, together with the reduction of non-tariff barriers affecting the cross-border exchanges of goods and services, are expected to boost bilateral trade considerably and to create new ­opportunities emerge to access markets across a range of ­sectors, covering goods, ­services, and investment for German companies in Vietnam. This is particularly true in the automobile, green energy, ­electronics, IT, food processing, and health care sectors./.

Khac Kien

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