Vietnam’s National Assembly ratified the EU – Vietnam Trade and Investment Agreement (EVFTA) on June 8, 2020. Meanwhile, the European Commission published a notice on June 30, 2020, announcing that the Free Trade Agreement between the European Union (EU) and the Socialist Republic of Vietnam will enter into force on August 1, 2020. The EVFTA is the EU’s second deal with a member of the ASEAN after Singapore.
This agreement provides for 99% elimination of customs duties between the two blocks:
- 65% of duties on EU exports to Vietnam will be eliminated from day one, while the remaining will be gradually phased out over a period of 10 years.
- 71% of duties will be eliminated on Vietnam exports to the EU from day one, with the remaining being eliminated over a period of 7 years.
The agreement also contains some important provisions for Customs and Trade Facilitation, Intellectual Property (IP) Rights, Investment Liberalization, and Sustainable Development.
Click here to read the full agreement.
Should you have any questions, please reach out to your local BDP representative.