Trade and investment ties between Vietnam and the European Union (EU) will expand when the Vietnam-EU free trade agreement (EVFTA) takes effect in 2018, the industry and trade minister said.
Vu Huy Hoang, speaking at a ceremony held in Hanoi on March 2 by the European Chamber of Commerce in Vietnam (EuroCham) to launch the Whitebook 2016, said Vietnam-EU trade surged over ten times within five years, from US$4 billion in 2011 to US$41 billion in 2015.
“The EVFTA will open up opportunities for market access and improvement of laws and regulations, especially those in the economic field,” the minister said.
At the ceremony, Ambassador and Head of the EU Delegation to Vietnam Bruno Angelet described the EVFTA as a key building block in the comprehensive partnership between Europe and Vietnam.
“We are happy to announce, as from on March 3, that both sides have started working on all preparatory measures for full implementation, in line with our Leaders’ Joint Statement of December 2, 2015.”
The EU and Vietnam undoubtedly have a splendid opportunity ahead and can build one of the best partnerships for the future in Southeast Asia, the ambassador continued.
According to the Whitebook 2016, when the trade deal goes into force, Vietnam’s GDP could increase by over 15% and its exports to the EU could soar a staggering 35%.
In addition, when 99% of tariff lines are removed, Vietnam will liberalize 65% of import tariffs on EU goods when the deal becomes effective and liberalize the remainder in the ten following years.
Tariffs on Vietnamese goods exported to the EU will be lifted gradually in seven years. Vietnamese consumers will be able to use a wide spectrum of EU-made products at reasonable prices, from wine to cars and motorcycles.
According to Angelet, within ASEAN, Vietnam has become the EU’s second biggest trade partner after Singapore, but the largest exporter of goods to the EU.
The Whitebook 2016 said investors from 23 of 28 members of the EU had registered US$19.1 billion for 1,566 projects in Vietnam over the past 25 years, making the EU Vietnam’s fifth biggest FDI partner as of 2014.
However, guidance on many new legal documents has yet to be issued and the handling of investors’ applications is slow.
Source: thesaigontimes.vn
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