The Free Trade Agreement between the European Union (EU) and Vietnam was signed in Hanoi on 30th June 2019. Following ratification by the Vietnamese National Assembly and the approval of the European Parliament, the agreement is expected to enter into force at the end of 2019 / beginning of 2020.
Trade in goods accounts for 99% of all originating products, import tariffs are waived, and for certain sensitive goods tariff reduction periods of up to ten years apply.
In addition to customs duties, the agreement regulates the reduction of non-tariff barriers to trade in the motor vehicle sector, as well as for medicinal products and medical devices, inter alia through the mutual recognition of standards and technical regulations. In addition, the Agreement includes, inter alia, provisions on services and public procurement, as well as on sanitary and phytosanitary measures in trade in animals and plant products.
Vietnam is the second largest trading partner of the EU within the Association of Southeast Asian Nations ASEAN after Singapore . In the Asian region, the EU next to Indonesia, Malaysia, the Philippines and Thailand have been negotiating or have been initiated.In addition to the free trade agreement, the investment protection agreement was signed. It will enter into force after ratification by all Member States of the EU and the National Assembly in Vietnam.
