Vietnam-EU FTA opens new trade opportunities from August 1
HANOI - Following ratification by Vietnam of the European Union - Vietnam Free Trade Agreement (EVFTA) and the European Union, - Vietnam Investment Protection Agreement (EVIPA), expansive preferential markets access for goods traded between Vietnam and the EU will begin from August 1.
Lawyers Baker McKenzie say the EVFTA includes removal of 99% of customs duties applied to trade between the EU and Vietnam.
Vietnam will eliminate tariffs on imports from the EU over a period of 10 years. EU tariffs applicable to Vietnam-originating goods will be phased out over seven years.
BM says the World Bank has noted that the impact on Vietnam's GDP of the EVFTA, if fully implemented, is expected to be three times that of the CPTPP, making the EVFTA the largest FTA Vietnam has signed.
Traders looking to take advantage of the preferential tariff rates included in the EVFTA must trade in goods that are: (1) originating; (2) entitled to preferential rates under the Agreement; and (3) moving between eligible countries, the law firm says.