The free trade agreement between the EU and Vietnam is expected to be a win-win agreement for both parties, creating a resoundingly positive effect for businesses and their long-term investment plans.
The agreement will facilitate exchange and cooperation between Vietnam and Europe by simplifying customs procedures for certain products, recognising geographical indications, and applying environmental protection standards.

Vietnam is an important economy in Southeast Asia. Thanks to its political stability and open-door policies to attract investment, Vietnam has risen on the World Bank’s business rankings. Urbanisation in Vietnam is increasing rapidly, with the number of people in cities in 2015 accounting for 34 per cent of the total population, giving an indication of the great potential of the Vietnamese market.

Once the agreement goes into effect, the EU will eliminate import duties on approximately 85.6 percent of its tariffs lines on Vietnamese products. After seven years, 99 per cent of EU tariffs will be removed for Vietnamese products. Vietnamese textiles, footwear, and seafood products (except for canned tuna and fish balls) will incur no import duties within seven years after the agreement takes effect.

Vietnam will eliminate 65 per cent of its import duties on EU items and tariffs will be eliminated by over 99 per cent over the next decade.