EVFTA to come into effect in a month (01 July 2020)
The free trade agreement between the European Union and Việt Nam, known as the EVFTA, which was signed on June 30 last year, will enter into force on August 1.
The announcement was made by the European Commission in a notice published on Tuesday.
The EVFTA will abolish 65 per cent of the duties on EU exports to its developing partner, with the remainder phased out over a 10-year period.
For Việt Nam's exports to the EU, the EVFTA will also eliminate 71 per cent of export duties from August 1, and the rest will be eliminated over a seven-year period.
National Assembly deputies ratified the EVFTA on June 8. The deal is expected to give Vietnamese companies better access to European markets, thus ensuring Việt Nam’s economic security.
The trade pact will erase import tax for Vietnamese products. In exchange, Việt Nam is expected to become more attractive to European investors. It is hoped to boost Việt Nam’s total gross domestic product (GDP) by 2.4 per cent and exports by 12 per cent by 2030.
The EVFTA also contains important provisions on intellectual property protection, workers' rights and sustainable development.
The deal also includes commitments for implementing the International Labor Organization's core standards as well as UN conventions, including combating climate change and protecting biodiversity.