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May 29, 2020 / 10:58

Vietnam parliament set to ratify trade deal with EU at ongoing gathering

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

The ratification of the EU – Vietnam Free Trade Agreement (EVFTA) and the EU – Vietnam Investment Protection Agreement (EVIPA) is in the agenda of the ongoing session of Vietnam’s National Assembly (NA), according to Doan Khac Viet, vice spokesperson of the Ministry of Foreign Affairs (MoFA).

 Vietnam's National Assembly is set to ratify both the EVFTA and EVIPA at the ongoing session. 

These agreements are significant steps forward in terms of strategic and economic aspects in the Vietnam – EU relations.They will bring substantial benefits for the people and enterprises from both Vietnam and the EU, Viet said at the MoFA’s regular press conference on May 28.

Once the EVFTA and EVIPA come into force, it would indubitably create a new driving force for the comprehensive partnership between Vietnam and the EU, Viet continued.

At the opening of the NA’s session on May 20, Vietnam’s Vice President Dang Thi Ngoc Thinh requested the NA to approve both the EVFTA and EVIPA.

Thinh said these deals would help tighten Vietnam – EU cooperation in economy, trade and investment, especially at a time when the Covid-19 has disrupted global value chains.

Compared to the no-EVFTA scenario, Vietnam’s GDP is forecast to expand by an annual average of 0.28 – 0.63 percentage points in the short term; 1.24 – 2.02 percentage points in the mid term (2022 – 2024); and 3.53 – 4.37 percentage points in the long run (2025 – 2030).

Regarding job creation, the corresponding increases would be 26,000 – 66,000; 56,000 – 81,000; and 34,000 – 43,000.

Meanwhile, the EVIPA is expected to boost the attractiveness of Vietnam’s investment environment when multinationals are diversifying their global value chains and shift investment capital to safer destinations.

On March 30, the European Council (EC) adopted a decision on the conclusion of the EVFTA following the ratification by the European Parliament on February 12. This decision cleared the path, on the EU side, for the entry into force of the agreement, said the EC.

Following the NA’s ratification of EVFTA and EVIPA, both would enter into force 30 days after Vietnam and the EU have notified each other that their respective legal procedures have been completed.