The Vietnam-EU Free Trade Agreement officially came into effect in 2018.

The agreement opens up enormous market potential, facilitating deeper penetration of Vietnamese exports into the EU market.

The Vietnam-EU Free Trade Agreement (FTA) will officially come into effect in 2018, opening up a huge potential market and a wave of high-quality investment from both sides. This information was released at a press conference on "The Vietnam-EU Free Trade Agreement: Equal Opportunities for Two Economies" organized by the Delegation of the European Union to Vietnam on December 7th in Hanoi.

At the press conference, answering a question about the opportunities and challenges of the Vietnam-EU Free Trade Agreement, Ambassador Bruno Angelet, Head of the European Union Delegation to Vietnam, said: In terms of trade benefits, the agreement opens up enormous market potential, with 99% of tariff lines reduced to 0%, which is favorable for Vietnamese exports to penetrate deeper into the EU market.

Regarding investment, EU investors are currently very interested in what the Vietnamese government and the Vietnamese authorities will do to prepare for attracting investment in the coming period. The wave of EU investment into Vietnam is showing many positive signs, but investors are very concerned about the investment environment, social responsibility, and working conditions for workers.

Press conference on “Vietnam-EU Free Trade Agreement: Equal Opportunities for Two Economies”

Ambassador Bruno Angelet, Head of the Delegation, added that the Vietnam-EU Free Trade Agreement will need to go through a ratification process before officially coming into effect, expected in 2018. Therefore, a two-year period is appropriate for both sides to prepare and reform the legal framework, effectively implement the agreement, and the EU will also commit to providing technical support to Vietnam.

“Regarding the rule of law, the EU will provide 14 million euros to help citizens better access laws and policies. In addition, the EU supports trade and investment (MUTRAP program) to enhance Vietnam's capacity in international trade, exporting its products, and supporting ASEAN member states, including Vietnam, in effectively implementing the ASEAN Community. In the financial sector, support will be provided to Vietnam to improve its public finance capacity and ensure fiscal balance. Currently, Vietnam is participating in many FTAs, so it needs many measures to balance its fiscal position as it has to reduce tariffs according to these agreements,” Mr. Bruno Angelet clarified.

The EU is Vietnam's second largest trading partner and export partner. The EU accounts for up to 20% of Vietnam's exports, with electronics and mobile phones making up a significant 30% share. Furthermore, the EU is a major investor in Vietnam, having risen from sixth place in 2014 to third place currently.

According to VOV.VN