EU-Vietnam trade agreement enters into force
The EU-Vietnam trade agreement, the most comprehensive trade agreement the EU has concluded with a developing country, will apply as of tomorrow, 1 August. President of the European Commission, Ursula von der Leyen, said: “The European economy needs now every opportunity to restore its strength after the crisis triggered by the coronavirus. Trade agreements, such as the one becoming effective with Vietnam today, offer our companies a chance to access new emerging markets and create jobs for Europeans.
I strongly believe this agreement will also become an opportunity for people of Vietnam to enjoy a more prosperous economy and witness a positive change and stronger rights as workers and citizens in their home country.” Commissioner for Trade, Phil Hogan, commented: “Vietnam is now part of a club of 77 countries doing trade with the EU under bilaterally agreed preferential conditions. The agreement strengthens EU economic links with the dynamic region of South-East Asia and has an important economic potential that will contribute to the recovery after the coronavirus crisis. But it also shows how trade policy can be a force for good.
Vietnam has already made a lot of effort to improve its labour rights record thanks to our trade talks and, I trust, will continue its most needed reforms.” The agreement will ultimately scrap duties on 99% of all goods traded between the two sides. Doing business in Vietnam will also become easier for European companies: they will now be able to invest and pitch for government contracts with equal chances to their local competitors. Under the new agreement, the economic benefits go hand in hand with guarantees of respect for labour rights, environment protection and the Paris Agreement on climate, through strong, legally binding and enforceable provisions on sustainable development.
EU Member States in the Council and the European Parliament approved the agreement respectively in June 2019 and February 2020. For more information, see the press release, memo, factsheets on benefits of the EU-Vietnam trade agreement, agriculture, standards and values, and on all individual EU countries’ trade with Vietnam; examples of small European companies doing business with Vietnam, infographic and a dedicated website.