THE EUROPEAN Union has ratified the EU – Vietnam Free Trade Agreement (EVFTA), paving the way for the deal to come into force later this year.
Following the EU decision on Monday, the Vietnamese National Assembly now needs to also ratify it in its May sitting.
Once Vietnam ratifies it, the trade deal will officially take effect at the beginning of the summer.
The EVFTA is expected to help Vietnamese enterprises reap the benefits of the trade pact, pushing up Vietnam’s exports and diversifing its markets to the various countries in the EU.
Under the agreement, Vietnam will cut 65 per cent of import tax on EU commodities right after the deal takes effect, while the rest will be abolished over a 10 year period.
Similarly, the EU will cut more than 70 per cent of tariffs on Vietnam’s commodities right after the deal takes effect, while the rest will be abolished in the seven subsequent years.
Vietnam and the EU signed the EU – Vietnam Investment Protection Agreement, here on June 30 last year.
The agreement calls for intensive, extensive and comprehensive commitments covering the fields of economy, trade, investment and sustainable development issues.
