Vietnam ratifies FTA with European Union

Legislation | | MIC Customs Solutions |

Vietnam has voted overwhelmingly in favour of bringing in a new free trade agreement with the EU.

Vietnam has ratified its free trade agreement with the European Union, meaning the legislation has now cleared the final hurdle before taking effect.

The National Assembly voted overwhelmingly in favour of the EU-Vietnam Free Trade Agreement (EVFTA), with their decision broadcast live on Vietnamese television yesterday (June 8th 2020).

With this formality complete, the agreement could come into force as early as next month.

Described by the EU as "the most ambitious free trade deal ever concluded with a developing country", the EVFTA will eliminate 99 per cent of customs duties on exports in both directions, as well as 65 per cent of levies on EU exports to Vietnam.

However, regulations on intellectual property will not take effect until Vietnam updates its Law on Intellectual Property.

The World Bank recently said it believes the new deal could boost Vietnam's GDP by 2.4 per cent and its exports to the tune of 12 per cent by 2030.