The EU-Vietnam Free Trade Agreement has come into effect on August 1, 2020. Vietnam’s tariffs on 71% of EU exports and the EU’s tariffs on 65% of Vietnam’s exports are immediately exempted.
According to the agreement, about 99% of tariffs in bilateral trade in goods will be gradually reduced until they are eliminated.
In the first June of 2021, the bilateral trade volume between Vietnam and the EU reached US$27 billion, an increase of more than 18% year-on-year.
It is expected that after the EU-Vietnam Investment Protection Agreement (EVIPA) is approved and entered into force in each EU member state, the bilateral trade volume will continue to increase.
The EU-Vietnam Free Trade Agreement not only cuts tariffs, but also provides support to Vietnam in areas such as environmental protection, legal reform and sustainable development. The agreement also assists EU members to open investment channels in Vietnam, especially in higher education, computer services, distribution and telecommunications industries.