Trade Deal

Benefits from FTAs have not brought along breakthrough changes for Vietnam, as most partners have similar economic structure, or even directly compete with Vietnam.

EVFTA provides a means of market diversification for EU and Vietnamese businesses.

Following the handover of the diplomatic note, the Vietnam – EU trade deal is set to take effect on August 1, 2020.

"This historic milestone signals the start of a new relationship with the European Union,” said a EuroCham official.

Following the ratification, the EVFTA would enter into force 30 days after the mutual notification between Vietnam and the EU about the completion of respective legal procedures.

Once the deal comes into force, it would create a new driving force for the comprehensive partnership between Vietnam and the EU.

The EU-Vietnam trade deal is the largest new-generation free trade agreement in Vietnam’s history in terms of direct benefits.

Once Vietnam's National Assembly also ratifies the EVFTA, the agreement can enter into force, most likely in early summer 2020.

Smooth execution of the deal will be a boost for Vietnam's economy amid a global slowdown and the ongoing Covid-19 epidemic.

Trump already dropped his plan to impose more tariffs on Chinese goods initially set for December 15th, 2019 and China withdrew its intention to retaliate.