Vietnam Free Trade Agreement (EVFTA) heralds new chapter for Vietnam -EU relations

HANOI, VIETNAM – Media OutReach – 28 January
2019 – The European Union ? Vietnam Free Trade
Agreement (EVFTA), which is heading to the European Council and Parliament for
the final approval necessary for it to come into force, brings unprecedented
advantages and benefits for Vietnam and the EU.

British Prime
Minister’s Trade Envoy to Vietnam, Laos and Cambodia, the Rt Hon Edward Vaizey
MP, and economist
Alessandra Bonfiglioli, from the School of Economics and Finance of Queen Mary
University of London (QMUL)* give their views on the many opportunities the
EVFTA is expected to bring to both parties.

On
the potential impacts of EVFTA on EU economy:

Vaizey:

• The biggest impact will be
  the elimination of customs duties on goods traded between the EU and
  Vietnam.
• 65% of import duties from the EU to
  Vietnam will be eliminated immediately, with the remainder being removed
  over the next 10 years.
• For Vietnam,
  the implementation of the principles of
  the International Labour Foundation and the Paris Agreement
  are also an important step.

Bonfiglioli:

The EU will definitely benefit from better market access in the
Vietnamese market, and to a larger extent than Vietnamese firms in their access
to the EU. The reason is that, while the EVFTA 
will reduce tariffs on goods by 99% bilaterally, as a matter of fact,
many Vietnamese products have been already enjoying trade preferences offered
unilaterally by the EU under the General Scheme of Preferences (GSP). The
sectors benefitting the most in the EU will be those producing machineries,
vehicles and pharmaceuticals

Moreover, the agreement grants the protection of Geographical
Indications, such as those of Champagne, Parmigiano Reggiano and Feta cheeses,
and many more (there are 169 such traditional European food and drinks
products). Considering that the spectacular growth performance of Vietnam is
bound to increase the demand for these products, the EU agricultural sector is
expected to seize relevant benefits.

The EVFTA will grant European companies better access to the
Vietnamese public procurement markets than companies from any other country.
This means that they will be able to bid for public contracts, for instance in
infrastructures, which are worth billions of Euros.

For the full press release with reasons why Vietnam is chosen and envisaging the UK-Vietnam FTA when UK
leaves the EU please see https://vietnamnews.vn/media-outreach/484633/vietnam-free-trade-agreement-evfta-heralds-new-chapter-for-vietnam-eu-relations.html