By The Pro QC Quality Assurance Team
The EUVFTA will not only protect labor rights and environmental concerns, but also aims to protect certain traditional European foods and goods from imitation through increased standards, regulations – and indisputable legal enforcement of these.
Key products being exported from the EU for example, include dairy – the 20% tariffs will drop to 0% over a five-year period. Other examples of rates that will fall to 0% over seven years are vehicles with current 78% tariffs, wine with current 50% tariffs, pharmaceuticals with current 8% tariffs, and chocolate with current 30% tariffs.
The opportunity for Vietnam exporters, according to Global Risk Insights, is a gateway into a US$18 trillion market. For EU investors looking at Vietnam, the move signifies an opportunity capitalize further on projects beyond traditional investment into heavy manufacturing and oil and gas. Sectors such as agriculture, pharmaceuticals and automobiles stand to gain in the long run.
What is the EUVFTA?
Signed into effect by the European Parliament and Vietnam at the end of June 2020, the EU-Vietnam Free Trade Agreement (EUVFTA) is both a trade agreement and an investment protection agreement that offers opportunities for trade, jobs and growth for both signatories. According to the official European Union documentation, the agreement effectively tackles the following points:- Eliminates 99% of all tariffs between the EU and Vietnam
- Reduces regulatory barriers and overlapping red tape
- Ensures protection of geographical indications
- Opens up services and public procurement markets
- Ensures the agreed rules are enforceable
The EUVFTA will not only protect labor rights and environmental concerns, but also aims to protect certain traditional European foods and goods from imitation through increased standards, regulations – and indisputable legal enforcement of these.
Key products being exported from the EU for example, include dairy – the 20% tariffs will drop to 0% over a five-year period. Other examples of rates that will fall to 0% over seven years are vehicles with current 78% tariffs, wine with current 50% tariffs, pharmaceuticals with current 8% tariffs, and chocolate with current 30% tariffs.
The opportunity for Vietnam exporters, according to Global Risk Insights, is a gateway into a US$18 trillion market. For EU investors looking at Vietnam, the move signifies an opportunity capitalize further on projects beyond traditional investment into heavy manufacturing and oil and gas. Sectors such as agriculture, pharmaceuticals and automobiles stand to gain in the long run.
