Vietnam to sign free trade deal with EU in Hanoi this Sunday
Vietnam to sign free trade deal with EU in Hanoi this Sunday
The European Council announced on Tuesday that it had approved the European Union-Vietnam Free Trade Agreement (EVFTA) and the EU-Vietnam Investment Protection Agreement (EVIPA), paving the way for the EU to sign the two deals with Vietnam in Hanoi on June 30.
The EVFTA and EVIPA are the most ambitious deals concluded between the EU and a developing country, the Vietnam News Agency reported.
The free trade agreement will ensure that trade, investment and sustainable development go hand in hand, by setting the highest standards of labor, safety, environmental and consumer protection.
The EVITA will help enhance the EU’s investment activity in Vietnam.
Vietnam is the EU’s second largest trade partner in ASEAN with two-way trade amounting to nearly 50 billion euros (US$56 billion).
The FTA was initiated in June 2012 and negotiations on the deal concluded in 2015.
After legal review, the EU proposed dividing the FTA into the EVFTA and EVIPA in September 2017.
After being signed, the two deals will be submitted to European Parliament (EP) for ratification.
The EVFTA is expected to be ratified by the EP later this year or early 2020.
Meanwhile, it will take at least two years for the EVIPA to be ratified by the EP and member parliaments.
The EVFTA is seen boosting trade and investment between the European Union and Vietnam, and creating fresh opportunities for companies and consumers on both sides. Experts have predicted that it will boost trade and investment, contributing 7% to 8% to Vietnam’s gross domestic product (GDP) by 2025.
