Category : Economic Impact
Formal negotiations between the European Union and Vietnam for a comprehensive free trade agreement began in June 2012 and were concluded in August 2015. The European Union has long been a major trading partner of Vietnam, with broad complementarity existing between the two. However, whilst average tariffs are relatively low between them, with a few notable exceptions for some sensitive sectors such as seafood and textiles and garments, a number of measures applied by each side restrict trade and investment in one form or another. This FTA Agreement is set to remove tariffs on goods traded between the two sides, as well as export duties by Vietnam, create new market access opportunities in services and investment, and liberalise Vietnam’s trade in various services. From the analysis undertaken, it can be expected that this Agreement will benefit Vietnam greatly, with Vietnam projected to grow significantly as a result of inflows of capital and on-going productivity improvements.