Trade and investment agreements develop the commercial dimension of bilateral relations BETWEEN the EU and Vietnam, which are grounded and governed by the EU-Vietnam Framework Agreement on Partnership and Cooperation, which came into force in October 2016. The implementation of EVFTA should open up a range of opportunities for strategic cooperation to promote trade and industrial relations between Vietnam and the EU, Vietnam`s Ministry of Industry and Trade said today (28 July). Vietnam currently enjoys trade preferences with the EU under the generalised preference system. It took more than eight years and a dozen rounds of dialogue for both sides to negotiate the EVFTA. Nicolas Audier, President of EuroCham in Vietnam, welcomed the results of the vote: “The EVFTA is now more important than ever, as trade wars and a global pandemic disrupt normal affairs on an unprecedented scale. Free, fair and rules-based trade is the best roadmap for economic growth, and Vietnam will now have privileged access to an EU consumer market of around 500 million people who want to do business and invest with a strong, secure and prosperous nation in the heart of Asia. On 8 June, the Vietnamese National Assembly approved the agreements by an overwhelming majority, with 457 deputies for the free trade agreement and 462 for the IAP. According to some Vietnamese newspapers, the agreements could come into force in July. At the most fundamental level, the agreements will promote jobs and growth between Vietnam and the EU. The agreements will gradually reduce most tariffs, regulatory barriers and bureaucracy, and encourage EU entrepreneurs to do business and invest in Vietnam. The free trade agreement establishes a framework for resolving future disputes between the EU and Vietnam over the interpretation and implementation of the agreement. It applies to most areas of the agreement and is faster and more effective in many respects than the dispute settlement mechanism in the WTO. The APC regulates the overall relationship between the EU and Vietnam.
It is based on common interests and principles such as equality, mutual respect, the rule of law and human rights. It broadens the scope of cooperation in areas such as trade, the environment, energy, science and technology, good governance, tourism, culture, migration, the fight against terrorism and the fight against corruption and organised crime. It also allows Vietnam and the EU to further strengthen cooperation on global and regional challenges, including climate change, terrorism and the non-proliferation of weapons of mass destruction. Like the provisions of the World Trade Organization (WTO), the CEFTA is a comprehensive and beneficial agreement for Vietnam and the EU. The agreement will remove “99% of its import duties over a ten-year period, and the EU will do the same over seven years.” Vietnam will lift 49% of its import duties on EU exports and let the rest expire over a 10-year period. The TFUE is an important step in EU-Vietnam relations and further strengthens bilateral economic integration and trade liberalization on the basis of rules. Vietnam has already taken concrete steps to implement the agreement. For example, in May 2020, the Vietnamese Ministry of Industry and Trade set up five working groups to assist the relevant government authorities on various aspects of the agreement, including the application of origin, certification and legal documentation; conduct market research on the requirements and tastes of EU consumers; Understanding EU management policies and policies that may affect Vietnamese exports; Implement information campaigns on the benefits of the agreement; Fighting fraud in the first place.