EVFTA Opens New Chapter In EU-Vietnam Trade Relations

The European Union Vietnam Free Trade Agreement (EVFTA) was signed on June 30 in Hanoi paving the way for its conclusion and increased trade with the EU and Vietnam.

The EVFTA is an ambitious pact providing almost 99 percent of elimination of custom duties between the EU and Vietnam.

65 percent of duties on EU exports to Vietnam will be eliminated while the remaining will be gradually phased out over a period of 10 years. 71 percent of duties will be eliminated on Vietnam exports to the EU, with the remaining being eliminated over a period of seven years.

The EVFTA is considered a new generation bilateral agreement – it contains important provisions for intellectual property (IP) rights, investment liberalization and sustainable development. This includes commitment to implement International Labor Organization (ILO) standards and the UN Convention on Climate Change.