The EVFTA
Vietnam and EU have announced the agreement in principle of the bilateral FTA between the two countries (EVFTA) on August 4 after three years in negotiations. The EVFTA is a comprehensive and high quality agreement that ensures the balance of interests for both Vietnam and the EU. The pact covers the trade in goods, rules of origin, customs and trade facilitation, sanitary and phytosanitary measures, technical barriers to trade, trade in services, investment, trade remedies, competition, State-owned enterprises, Government procurement, intellectual property, sustainable development, cooperation and capacity building.
The implementation of the EVFTA will play a positive impact on supporting Vietnam to continue building the legal system, raising the competitiveness of its small and medium-sized businesses, ultimately augmenting bilateral trade and investment activities.
The EVFTA will also open up a wide range of opportunities for Vietnam to access cutting - edge technologies, improve management skills and create more jobs, thus helping ensure social welfares.
New opportunities
This agreement is the first of its kind that the EU has concluded with a developing country. As such, the ambitious and symmetrical liberalisation agreed upon - with a transition period to allow Vietnam to adapt - breaks new ground compared to other EU agreements with developing countries. It shows the shared conviction of the EU and Vietnam that trade is essential to growth, the creation of jobs and sustainable development.
Besides eliminating tariffs, Vietnam will also remove almost all of its export duties. The agreement will also create new market access opportunities in services and investment. Vietnam has agreed to liberalise trade in financial services, telecommunications, transport, and postal and courier services. On investment, Vietnam will open its market to the EU, for instance by removing or easing limitations on the manufacturing of food products and beverages, as well as in the non-food sectors.
The agreement will also improve the protection in Vietnam of Geographical Indications (GIs) representing EU flagship agricultural products, such as Champagne, Parmigiano Reggiano cheese, Rioja wine, Roquefort cheese and Scotch Whisky. Vietnamese GIs too will be recognised as such in the EU, providing the adequate framework for further promoting imports of quality products such as M?c Chu tea or Buơn Ma Thu?t coffee.
The FTA includes a robust and comprehensive chapter on Trade and Sustainable Development, covering labour and environmental matters of relevance in trade relations between the EU and Vietnam. Commitments to the core labour standards and Conventions of the International Labour Organisation (ILO) ensure the respect of fundamental workers' rights by both parties. In addition, the chapter includes commitments which will support the conservation and sustainable management of natural resources (including wildlife, forestry, and fisheries). Special attention is devoted to areas such as Corporate Social Responsibility and fair and ethical trading schemes.
