10. septiembre 2020

Free trade agreement between EU and Vietnam came into force on 1.8.2020

Trade between Vietnam and the EU will experience a boost with this Free Trade Agreement: almost all customs duties will be abolished, making it much easier for the countries' economic participants to trade goods and services both ways. Non-tariff trade barriers (such as technical regulations, registration formalities, packaging regulations, etc.) will also be dismantled in the future.

After Singapore, the EU's most important trading partner in the region, the EU has now concluded such a free trade agreement with the second nation of the ASEAN states only (Association of South-East Asian Nations: Brunei, Indonesia, Cambodia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam). Vietnam will succesively reduce its import duties over a period of 10 years, with the exception of pharmaceuticals, chemicals and machinery, which may already now be supplied duty-free to Vietnam. European countries import mainly electronic products, clothing, textiles and shoes, rice, coffee, seafood, and furniture. Vietnam is the EU's second most important trading partner of the ASEAN states: goods worth € 49.3 billion and services worth € 41.3 billion are transshipped annually.