Vietnam ratifies free trade agreement with EU

Vietnam ratifies free trade agreement with EU

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On June 8, Vietnam’s Ministry of Industry and Trade announced that the country’s National Assembly has unanimously approved the new trade agreement with the EU which will eliminate the 99 percent custom duties on EU products for up to 10 years, while the EU will do the same for ex-Vietnam products for seven years. The ministry said that the agreement will help diversify the market, and so Vietnam will not be depending too much on one market only, helping to ensure the country’s economic security.

In terms of exports, the EU is one of the major trading partners of the Southeast Asian country. Accordingly, the trade agreement is expected to substantially push up exports and support Vietnam’s industries, such as manufacturing, SteelOrbis understands. The agreement is expected to come into force in July.

The trade agreement is expected to increase Vietnam’s GDP by 4.6 percent and the country’s exports to the EU by 42.7 percent until 2025. Besides, the EU’s GDP is projected to grow by $29.5 billion by 2035, according to the European Commission.

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