Vietnam – European Union reached free trade agreement

According to media reports, Vietnam’s National Assembly on 8 June 2020 has ratified the European Union Vietnam Free Trade Agreement (EVFTA) and the EU-Vietnam Investment Protection Agreement (EVIPA), which would come into effect this July.

The agreement would eliminate 99% of the customs duties for goods and serviced traded between the two countries. Specifically, Vietnam is to eradicate 65% of the customs duties imposed on imports from the EU. Meanwhile, the EU would remove 71% of Vietnamese imports to the bloc and the remaining will be eliminated over a period of seven years.

Vietnam’s top exporting products to the EU including telephone sets, electronic products, footwear, textiles and clothing, coffee, rice, seafood, and furniture.

In 2019, Vietnam exported a total of $4.5 million worth of plastics products under the 39 heading in the Harmonized System (HS) to the EU.