The EU-Vietnam Free Trade Agreement (FTA) was published by the European Commission in February 2016 (link to agreement set out below).
The agreement still requires ratification by the EU but is expected to enter into force during 2017 or early 2018.
The FTA is expected to:
- Boost exports thanks to the elimination of nearly all tariffs (over 99%) on traded goods over a 10 year- period;
- Increase market access for EU goods and services thanks to a reduction of non-tariff barriers to trade and liberalization of Vietnamese financial, telecommunication, transport, postal and courier services;
- Increase market access to the Vietnamese procurement market, by allowing EU companies to bid for Vietnamese public contracts and reinforcing commitments towards the Government Procurement Agreement (GPA) rules;
- Boost EU investments in Vietnam thanks to a higher protection of EU investors and a removal of Vietnamese restrictions on EU investments, notably in the food and beverage and machinery sectors.