European Council Approves Free Trade Agreement Between EU And Vietnam

In March 30th, the European Council approved the EU and Vietnam free trade agreement (EVFTA) in written form. ETFVA was approved by the European Parliament in February 12th at the plenary meeting in France.

The Ministry of Commerce and industry has voluntarily promulgated the plan to prepare for the approval and implementation of the EVFTA agreement from now until the agreement is formally effective.

According to the process, the EVFTA agreement will be implemented 30 days after the approval of the Vietnamese Parliament and the completion of the procedures and notification procedures.

With regard to Vietnam, the Ministry of industry and Commerce has been coordinating with all departments and industries to complete the procedures and submit approval.

Prior to that, in February 21st, the Ministry of industry and Commerce presented the document to the government on ratification of the EVFTA agreement. Then, on the basis of receiving the opinions of the members of the government, the Ministry of Commerce and industry submitted the draft to the premier of the government on 24 March, and submitted it to the president of the state for examination and approval, and decided to submit the approval to the Congress.

At the same time, in order to prepare for the implementation of the agreement, according to the recommendations of the Ministry of industry and commerce, the government instructed ministries and commissions to take the initiative to review and deploy, modify and supplement documents.

The implementation of EVFTA will be seen as a lever for growth, providing a huge opportunity to penetrate the market with us $18 trillion GDP.

For Vietnam's exports, after the agreement comes into effect, the EU will cancel the import tax of about 85.6% of the tax items, which is equivalent to 70.3% of Vietnam's export commodity tariffs to the EU.

7 years after the entry into force of the agreement, the EU will cancel the import duty of 99.2% tariff items, which is equivalent to 99.7% of Vietnam's export tariff. For the remaining 0.3%, the EU has committed itself to exemption from customs duties.

In general, Vietnam's exports to the EU almost 100% will be exempt from import duties. Up to now, this is the highest commitment Vietnam has made to Vietnam in the signed FTA agreement. This advantage is especially meaningful when the EU continues to become Vietnam's largest export market.

Vietnam construction securities remind investors, although Vietnam is a hot spot in Southeast Asia, but still need to pay attention to control investment risk, cautious stock selection.