Free Trade Agreement Vietnam Eu

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 agreements must now be ratified by the Vietnamese National Assembly and EU member states in the case of the Investment Protection Agreement. One of the most important criteria is the strengthening of Vietnam`s economic power. This is why around 65% of current free trade rights will be completely abolished, allowing the EU to export more to Vietnam. The remaining 35% of tariffs will be abolished over the next ten years, including, for example, parts of wine, beef or automobiles. This agreement will enable EU exporters and investors to access a fast-growing market of 90 million people and consolidate their presence in one of the world`s most dynamic regions. In February 2020, the European Parliament ratified a free trade agreement (FTA) and an Investment Protection Agreement (PPI) with Vietnam. MEPs (ENPs) voted in favour of the agreements in Strasbourg. Vietnam can also take advantage of institutional reforms and bilateral cooperation mechanisms and reaffirm to investors that it is the regional investment centre for improving technology, human resources and labour productivity. The Vietnamese Ministry of Commerce considered that the signing of these agreements would create opportunities to participate in the restructuring of new supply chains, amid the consequences of the coronavirus pandemic. Vietnam has overtaken its regional rivals Indonesia and Thailand, and is the EU`s second largest trading partner in ASEAN. Today, EU companies have the opportunity to apply for contracts with Vietnamese ministries and state-owned enterprises throughout the country. Vietnam will allow European investors to award public contracts to ministries such as the Ministry of Defence, Vietnam Railways Corporation and dozens of public hospitals, under the control of the Ministry of Health.

The European Commission estimates that the agreements would help increase exports to Vietnam by 29% in 2035 and increase GDP to $29.5 billion. With regard to intellectual property rights, Vietnam is committed to achieving a high level of protection that goes beyond the standards of the WTO TRIPS agreement. This agreement better protects innovation, artwork and trademarks in the EU from illegal copying, including through stricter enforcement rules.