Vietnamese lawmakers to scrutinise free trade deal with EU
The Vietnamese National Assembly is expected to ratify the EU-Vietnam Free Trade Agreement (EVFTA) at the beginning of today’s Plenary Legislative Session.
The FTA would slowly eliminate all customs duties between the two parties over the course of a decade and scrap numerous non-tariff barriers to trade.
Per the deal, 65% of EU exports to Vietnam and 70% of EU imports from Vietnam will be immediately exempted from customs duties. Free trade with Vietnam, which has a stable business environment and experience with foreign direct investment, is expected to chiefly benefit EU investors, automobile and textile companies, and manufacturers.
As the second ASEAN nation (following Singapore) to sign a free-trade agreement with the EU, Vietnam could see vast economic benefits from the deal, including facilitated trade channels of high tech and pharmaceutical goods. Overall, the agreement and ratification of EVFTA will help shape the future of an increasingly important bilateral relationship, but whether its prospects come into fruition rests on the willingness of both sides to abide by the shared commitments.
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