The trade deal with the EU would emphasize Vietnam’s geopolitical significance in the Southeast Asian and Asia – Pacific regions, said Vice State President Dang Thi Ngoc Thinh.
On behalf of Vietnam's President Nguyen Phu Trong, Vice President Dang Thi Ngoc Thinh said the EU – Vietnam Free Trade Agreement (EVFTA) brings mutual benefits for all parties involved, and suggested that the National Assembly (NA) should approve the deal at the earliest possible.
Vietnam's Vice President Dang Thi Ngoc Thinh suggests the NA to approve the EVFTA and EVIPA. Source: VGP. |
Once the NA ratifies the trade deal, it would enter into force 30 days after Vietnam and the EU have notified each other that their respective legal procedures have been completed.
Vice President Thinh said the the deal would emphasize Vietnam’s geopolitical significance in the Southeast Asian and Asia – Pacific regions, at the same time heightening the country’s status on the global stage.
Along with the EVFTA, the EU – Vietnam Investment Protection Agreement (EVIPA) is a driving force for Vietnam to finalize its legal framework, with a view to improving the business environment towards greater fairness, transparency and friendliness to investors, Thinh added.
The EVFTA, officially signed last June after six years of negotiations, has been dubbed “the most ambitious” FTA the EU has ever reached with a developing country, according to the European Commission. It not only includes the almost full elimination of bilateral tariffs, but also a substantial reduction of non-tariff barriers. Moreover, it includes provisions to protect intellectual property, labor, environmental standards, and fair competition, while promoting regulatory coherence.
The EU is one of Vietnam’s largest trade partners with turnover of US$56.45 billion in 2019, of which Vietnam exported goods worth US$41.54 billion and imported goods worth US$14.9 billion.
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.
A study from Vietnam’s Ministry of Planning and Investment suggested the EVFTA and EVIPA would help Vietnam’s GDP grow an additional 4.6% and boost the country’s exports to the EU by 42.7% by 2025.
Meanwhile, the European Commission estimated the bloc’s GDP would be added US$29.5 billion by 2035, along with additional growth of 29% in exports to Vietnam.
Regarding Brexit, the government proposed applying the EVFTA with the UK until the end of the transitional period on December 31, 2020, subject to an extension of another 24 months.
Meanwhile, the NA’s Committee for External Relations requested the government to initiate a free trade deal with the UK based on the EVFTA in replacement of the latter eventually, however, there would be adjustment to ensure benefits of the two countries.
Other News
- Vietnam, Brazil: Building bridges through shared history and new partnerships
- Hanoi to attract tourists by showcasing local specialties at wholesale markets
- National E-commerce Week, Vietnam Online Shopping Day 2024 set to kick off
- Vietnamese goods in rising demand among Hanoi residents
- Hanoi unveils 2024 rural industrial plans
- Hanoi advances supporting industries for hi-tech services
- Vietnam’s economy remains resilient amid global uncertainties: ADB
- Vietnam’s 9-month fruit and veggie exports match last year's sales
- Growing interest from Chinese investors in Vietnam’s market
- Hanoi Supporting Industry Fair 2024 draws big business
Trending
-
Prime Minister leaves Hanoi for regional events in China
-
Vietnam news in brief - November 5
-
Hanoi embraces digital transformation in agriculture
-
Hanoi seeks partnerships to build skilled workforce for digital transformation
-
Adorable baby hippo wows Hanoi visitors
-
Localizing idols: Vietnam’s shift from Hallyu to homegrown stars
-
Hanoi plans major upgrade for iHaNoi by 2026
-
Berlin Film Festival award-winning motion picture premieres in Vietnam
-
Love triangle drama opens Hanoi Open Stage Festival