EVFTA and the EVIPA agreements between Vietnam and the EU was ratified in 2019 and has taken effect from August 20th 2021
The EVFTA is an ambitious pact eliminating almost 99 percent of customs duties between the EU and Vietnam.
The EVFTA, aims to liberalize both tariff and non-tariff barriers for key imports on both sides over a period of 10 years.
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 FTA is expected to increase Vietnam’s GDP by 4.6 percent and its exports to the EU by 42.7 percent by 2025. At the regional level, Vietnam is now the EU’s second most important trading partner among all ASEAN members – ahead of Indonesia and Thailand.
After almost a year of implementation, bilateral trade turnover between Vietnam and the EU in the first 6 months of 2021 reached 27.67 billion USD, up 18.4% over the same period in 2020. Vietnam Exports to the EU increased by 18.3% to 19.4 billion USD. Vietnam imports from the EU grew by 19.1% up to 8.2 billion USD compared to same period a year earlier.
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