Non-tariff barriers are also removed by the free trade agreement, making it easier for Vietnamese companies to access the highly regulated EU market and vice versa. The EU and Vietnam will strengthen customs cooperation to simplify, harmonize, standardise and modernise trade procedures to reduce transaction costs for businesses. These improvements will affect technical regulations, standards, compliance assessment, transparency and market oversight. Such agreements illustrate the strength of EU-Vietnam relations and the opportunities Europe sees in the Southeast Asian country. The EU is achieving a long-term goal of increasing its influence and expansion in ASEAN markets by targeting Vietnam, and European entrepreneurs will have better access to one of the fastest growing Asian economies when the agreements come into force. Despite the interruption of the coronavirus pandemic and the slowdown in the global economy, Vietnam is expected to continue to record economic growth of 4.8% this year, returning to 6.8% in 2021. Vietnam has made visible efforts and made progress in meeting the high standards of NAFTA. From 1 August 2020, the agreement will create sustainable growth, mutual benefits in different sectors and provide an effective instrument for a balance between the EU and Vietnam. Under the EVFTA, Vietnam has not only opened up additional sub-sectors to EU service providers, but has also made deeper commitments than mentioned in the WTO to enable the EU to access the Vietnamese market as much as possible. Among the sub-sectors that Vietnam is committed to under the EVFTA (but not the WTO) are: interdisciplinary research and development (R and D); care services, physiotherapists and paramedics; Packaging services Fairs and exhibitions Services and Building Cleaning Services.
This agreement will enable EU exporters and investors to access a fast-growing market of 90 million people and consolidate their presence in one of the world`s most dynamic regions. The APC provides that human rights, democracy and the rule of law are “essential elements” of UE-Vietnam relations as a whole. Therefore, the link between the free trade agreement and the CPA is important to ensure that human rights are also part of the trade relations between the parties. Like the provisions of the World Trade Organization (WTO), the CEFTA is a comprehensive and beneficial agreement for Vietnam and the EU. The agreement will remove “99% of its import duties over a ten-year period, and the EU will do the same over seven years.” Vietnam will lift 49% of its import duties on EU exports and let the rest expire over a 10-year period. The EU and Vietnam have agreed on a strong and comprehensive chapter on trade and sustainable development, with a comprehensive list of commitments, including: The EEA is an important step in EU-Vietnam relations and further strengthens bilateral economic integration and trade liberalization on the basis of rules. Vietnam has already taken concrete steps to implement the agreement. For example, in May 2020, the Vietnamese Ministry of Industry and Trade set up five working groups to assist the relevant government authorities on various aspects of the agreement, including the application of origin, certification and legal documentation; conduct market research on the requirements and tastes of EU consumers; Understanding EU management policies and policies that may affect Vietnamese exports; Implement information campaigns on the benefits of the agreement; Fighting fraud in the first place.