As the European Parliament has given their approval in the ratification of the free trade agreement between the EU & Vietnam, this big milestone will create many new possibilities and jobs in the soon future.
On 12th of February 2020, the European Parliament granted the EU-Vietnam free trade and investment agreement, which means that over the next 10 years most of the current tariffs between the EU and Vietnam will be eliminated.
At this moment, the agreement only needs the last stage of voting in the National Assembly of Vietnam before it can enter into force. If the EVFTA agreement proceeds successfully, the trade relationship between EU and Vietnam will blossom even further as:
- Sustainable development: The agreement commits Vietnam to apply the Paris Agreement and are legally responsible to maintaining rules on climate, labour and human rights.
- Removal of customs duties: Tariffs on 65 % of EU exports will be eliminated and will be immediately duty free. Subjects such as automobiles, chemicals, wines, chicken and pork, motorbikes, pharmaceuticals will steadily become duty free over the next ten years.
- Public procurement: European enterprises will achieve greater position in bidding for contracts with Vietnamese ministries, state-owned enterprises as well as with Hanoi and Ho Chi Minh City.
- Services: European companies will have improved access to relevant services in relation to banking, insurance, maritime transport, environmental, postal and courier in Vietnam.
- Geographical indications: More than 150 products in the F&B industries will be protected in Vietnam, as well as 39 Vietnamese products will be in the EU.
This agreement has been implemented to protect the environmental and societal factors in Vietnam. Furthermore, to strengthen and develop the labour rights and secure that the standards of human rights only will keep improving.
The agreement has a great potentiale to strengthen the relationship between the EU and Vietnam and has been a long-awaited initiative that will contribute to new possibilities and create an even stronger relation between EU and Vietnam as a developing nation.