Vietnam Briefing is produced by Dezan Shira – Associates. The company supports foreign investors throughout Asia from branches around the world, including in Hanoi and Ho Chi Minh City. Readers can write to firstname.lastname@example.org to get more help in their activities in Vietnam. The agreement provides for overall preferential treatment for both goods and services, recognition and protection of geographical indications for more than 200 products, liberalisation of procurement rules and obligations on cartels and mergers. It also contains provisions on sustainable development, including legally binding provisions on climate, labour and human rights. This is therefore the most comprehensive agreement to date between the European Union and each ASEAN member country. As the graph shows, fuels and raw materials, followed by machinery, play a major role in Vietnam`s import bill. Since these are intermediate consumer goods used for production, TUEFTA could have a positive effect on the production costs of domestic production. In addition, the agreement provides for substantial reductions in import duties, as outlined below. A new pioneering free trade agreement between Vietnam and the European Union came into force on 1 August 2020.
EUROPA and EUVIPA come into this context. This is one of many measures taken by the Vietnamese government to increase Vietnam`s production and export capacity. Free trade agreements have also been a tool of choice. There are currently 12 free trade agreements that Vietnamese exporters can use by entering into agreements with major markets such as Japan, Canada and South Korea. In each case of FTA, export growth was in double digits. The EU`s bilateral trade and investment agreements with Vietnam in March 2020 and the trade agreement are expected to enter into force this summer, following Vietnam`s final ratification. The agreements with Vietnam are the second (after those with Singapore) between the EU and a South-East Asian country and are springboards for stronger engagement between the EU and the region. The agreement also has a significant impact on companies importing from the EU, particularly in sectors such as agriculture, pharmaceuticals and automotive. Trade and investment agreements develop the commercial dimension of bilateral relations BETWEEN the EU and Vietnam, which are grounded and governed by the EU-Vietnam Framework Agreement on Partnership and Cooperation, which came into force in October 2016. On 12 February 2020, the European Parliament ratified the EU-Vietnam Free Trade Agreement and the EU-Vietnam Agreement (EUVIPA) on investor protection. The agreement is expected to be ratified by the Vietnamese government by May 2020 and, therefore, enter into force. The agreement, which contains significant obligations on tariff reductions, investor protection and trade facilitation, will have a huge impact on Vietnamese exporting companies, foreign investors and consumers.