The EVFTA Report

The EU-Vietnam Free Trade Agreement (EVFTA) represents an historic change in EU-Vietnam relations. It will boost trade and investment on both sides, and help Vietnam to further integrate into the global economy and the international community

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1. Tariff Reductions: The EVFTA will eliminate almost all tariffs between the EU and Vietnam. It will remove tariffs on 65 percent of the value of EU exports the moment the FTA enters into force, with the remaining tariffs being phased out over the next decade. Meanwhile, 71 percent of EU imports from Vietnam will be tariff-free once the EVFTA enters into force, rising to more than 99 percent over the following 7 years.

2. Customs Duties: Customs duties will be almost eliminated over a transitional period of 7 years for Vietnamese goods and 10 years for EU goods. This will be a ‘win-win’ for business and consumers, in the form of lower prices
and greater competitiveness.

3. Market Access for EU Service Providers: In the EVFTA, Vietnam has gone further than the World Trade Organisation (WTO) in terms of market access granted to EU service providers. Additional (sub)sectors will be opened up, giving the EU the best possible access to Vietnam’s market. The FTA also contains a ‘Most-Favoured Nation’ clause.

EuroCham’s report contains the views of our members on the economic, social and environmental implications of the EVFTA. Through this data, and through our interviews with business leaders, workers, economists, NGOs and others, the report shows how the EVFTA will boost not just boost bilateral trade and investment, but also help Vietnam to continue its recent progress of development and reform.