Vietnam'S Parliament Approved The Vietnam Europe Free Trade Agreement. Vietnam'S Trade Map Has Expanded Again.

The Vietnamese parliament approved the free trade agreement and investment protection agreement between Vietnam and the EU in June 8th, and the two sides will gradually reduce the tariff to about 99% of the bilateral trade in goods. According to the Vietnamese government's official website, Vietnam's parliament passed a resolution on the approval of the European Free Trade Agreement on the same day with a vote of 94.62%, and passed a resolution on Ratifying the agreement on investment protection in Vietnam with a vote of 95.45%.

The EU Council approved the FTA agreement earlier this year. After completion of the relevant procedures, the EU agreement is expected to take effect in July this year. The EU EU investment protection agreement is still subject to the approval of the EU Member States.

Some analysts point out that Vietnam will be used as a destination for large-scale investment migration around the world and a transit point for trade. In fact, Vietnam started this board very early.

In 2012, Vietnam and the European Union formally launched negotiations on free trade agreements.

In 2015, Vietnam and the European Union reached a principled agreement on the free trade agreement.

In July 2019, Vietnam and the European Union signed a free trade agreement and an investment protection agreement.

In April 2020, the European Council approved the EU - Vietnam free trade agreement (Europeanunion-vietnamFreeTradeAgreement).

In June 30, 2019, the two sides signed the two agreements in Vietnam's capital Hanoi. Vietnam became the second Southeast Asian country to reach FTA with the European Union.

In trade, Vietnam and the EU are complementary rather than competitive. Vietnam's main exports to the EU include telecommunications equipment, clothing, footwear and agricultural products. The European Union mainly exports Vietnam's electrical equipment, aircraft, automobiles and medical products. With the promise of open markets, EVFTA is expected to increase exports to Vietnam by 42.7% and 44.37% respectively in 2025 and 2030. The main export sectors include agricultural products (rice, sugar, pork, forest products, beverages and tobacco), processing and manufacturing (Textiles and clothing, footwear) and services (water transport, air transport, finance and insurance).

According to the agreement signed by the two sides: Vietnam's 71% tariff on exports of EU goods and the 65% tariff imposed by the EU on Vietnam's export commodities will be abolished immediately. More importantly, Vietnam and the European Union (EU) will take 10 and 7 years respectively to eliminate 99% of the tariff. This means that Vietnam and the EU sign free trade agreement, will usher in a trillion market!

According to the world bank's forecast analysis, by 2030, the EU's FTA will push Vietnam's GDP up 2.4% and export volume by 12%. For Vietnam, the export of clothing and footwear, which accounts for about 20% of the total export volume, is expected to expand. According to another analysis, Vietnam's exports to the EU will increase by 42.7% and 44.37% respectively in 2025 and 2030 through EVFTA.

It is reported that, in addition to signing trade agreements with the European Union, Vietnam is actively signing trade agreements with Israel, the United States and other countries. There is no doubt that Vietnam is actively striving to prepare investors to withdraw from China and hopes to make Vietnam a new destination for investment in the world.