The EU-Vietnam Free Trade Agreement (EVFTA) represents an historic change in EU-Vietnam relations. It will boost trade and investment on both sides, and help Vietnam to further integrate into the global economy and the international community.

1. Tariff Reductions: The EVFTA will eliminate almost all tariffs between the EU and Vietnam. Tariffs on 65 percent of EU exports will be removed the moment the EVFTA enters into force. The remaining tariffs will be phased out over the following decade. Meanwhile, 71 percent of EU imports from Vietnam will be tariff-free once the EVFTA enters into force. This will rise to 99 percent over the next 7 years.

2. Customs Duties: Customs duties will be eliminated over a transitional period of 7 years for Vietnamese goods and 10 years for EU goods. This will be a ‘win-win’ for business and consumers, in the form of lower prices and greater competitiveness.

3. Market Access for EU Service Providers: In the EVFTA, Vietnam has gone further than the World Trade Organization (WTO) baseline in terms of market access granted to EU service providers. Additional (sub) sectors will be opened up, giving European investors the best possible access to Vietnam’s market. The FTA also contains a ‘Most-Favored Nation’ clause.

The EU-Vietnam Free Trade Agreement: Perspectives from Vietnam

The EU-Vietnam Free Trade Agreement (EVFTA) represents an historic change in EU-Vietnam relations. It will boost trade and investment on both sides, and help Vietnam to further integrate into the global economy and the international community.

1. Tariff Reductions: The EVFTA will eliminate almost all tariffs between the EU and Vietnam. Tariffs on 65 percent of EU exports will be removed the moment the EVFTA enters into force. The remaining tariffs will be phased out over the following decade. Meanwhile, 71 percent of EU imports from Vietnam will be tariff-free once the EVFTA enters into force. This will rise to 99 percent over the next 7 years.

2. Customs Duties: Customs duties will be eliminated over a transitional period of 7 years for Vietnamese goods and 10 years for EU goods. This will be a ‘win-win’ for business and consumers, in the form of lower prices and greater competitiveness.

3. Market Access for EU Service Providers: In the EVFTA, Vietnam has gone further than the World Trade Organization (WTO) baseline in terms of market access granted to EU service providers. Additional (sub) sectors will be opened up, giving European investors the best possible access to Vietnam’s market. The FTA also contains a ‘Most-Favored Nation’ clause.

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This report was provided by EuroCham Vietnam. For more information on EuroCham Vietnam, visit their website at: http://www.eurochamvn.org/

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