Illustrative image (Photo: VNA) Paris (VNA) – The European Parliament (EP) onFebruary 12 ratified the EU-Vietnam Free Trade Agreement (EVFTA) and theEU-Vietnam Investment Protection Agreement (EVIPA).
The EVIPA was passed with 407 votes for, 188 against and 53abstentions; and the EVFTA, with 401, 192 and 40, respectively.
The EVFTA is expected to create a major push for Vietnam’sexports, helping diversify the country’s exports and markets. Under theagreement, Vietnam will cut 65 percent of import tax on EU commodities rightafter the deal takes effect, while the rest will be erased in a 10-year period.Meanwhile, the EU will cut more than 70 percent of tariff on Vietnam’scommodities right after the deal takes effect, while the rest will be abolishedin the seven subsequent years.
The two documents were signed in Hanoi on June 30 last year.They include intensive, extensive and comprehensive commitments covering thefields of economy, trade, investment and sustainable development issues.
According to a research by the Ministry of Planning andInvestment, the two deals will help Vietnam increase its GDP by 4.6 percent andits exports to the EU by 42.7 percent by 2025. Meanwhile, the European Commissionhas projected the EU’s GDP to increase by 29.5 billion USD and its exports toVietnam by 29% by 2035.
The investment intensive and extensive commitments willreplace bilateral investment agreements between Vietnam and the EU members, helpingthe country continue to reform its economic structure, perfect business environmentand institutions, and facilitate EU investors’ business in Vietnam./.
The EVIPA was passed with 407 votes for, 188 against and 53abstentions; and the EVFTA, with 401, 192 and 40, respectively.
The EVFTA is expected to create a major push for Vietnam’sexports, helping diversify the country’s exports and markets. Under theagreement, Vietnam will cut 65 percent of import tax on EU commodities rightafter the deal takes effect, while the rest will be erased in a 10-year period.Meanwhile, the EU will cut more than 70 percent of tariff on Vietnam’scommodities right after the deal takes effect, while the rest will be abolishedin the seven subsequent years.
The two documents were signed in Hanoi on June 30 last year.They include intensive, extensive and comprehensive commitments covering thefields of economy, trade, investment and sustainable development issues.
According to a research by the Ministry of Planning andInvestment, the two deals will help Vietnam increase its GDP by 4.6 percent andits exports to the EU by 42.7 percent by 2025. Meanwhile, the European Commissionhas projected the EU’s GDP to increase by 29.5 billion USD and its exports toVietnam by 29% by 2035.
The investment intensive and extensive commitments willreplace bilateral investment agreements between Vietnam and the EU members, helpingthe country continue to reform its economic structure, perfect business environmentand institutions, and facilitate EU investors’ business in Vietnam./.
VNA
