EU hopes to sign FTA with Vietnam by late 2014

25 Nov '13

2 min read

The European Union (EU) is hoping to sign a free trade agreement (FTA) with Vietnam as early as by late 2014, European Commission (EC) Vice President Antonio Tajani has said, according to a statement from the Vietnam’s Embassy in Belgium.

Mr. Tajani said this during his meeting with Vietnamese Prime Minister Nguyen Tan Dung in Ha Noi earlier this month, the statement said.

Mr. Dung said he was delighted at the developments in the bilateral ties between the EU and Vietnam, as the two-way trade progressed rapidly, reaching over US$ 29 billion in 2012 and is expected to register a 15 percent rise in 2013. The EU is also one of the largest investors in Vietnam with total registered capital of US$ 32 billion, he added.

“Vietnam hopes to shake hands with the EU in all aspects, particularly economics, trade, investment, tourism and ODA,” said PM Dung.

Mr. Dung sought the EC’s assistance for the early signing of the Partnership and Cooperation Agreement (PCA) and the Free Trade Agreement (FTA) in 2014, which are expected to create a crucial legal framework and provide favourable conditions for businesses to penetrate into respective markets and beef up economic, trade, and investment linkages.

The fifth round of negotiations for an EU-Vietnam FTA, which concluded in Hanoi at the beginning of this month, saw negotiators discussing texts covering all the chapters of the proposed FTA, according to a press release from the EC.

The aim of the negotiations is to achieve an ambitious agreement on goods, services and investment, eliminating tariffs and non-tariff barriers and covering other trade-related issues, such as public procurement, regulatory issues, competition, and trade and sustainable development. Once in place, the agreement will boost EU-Vietnam trade and investment ties and provide for more business opportunities on both sides.

The next round of negotiations for EU-Vietnam FTA is scheduled to be held in Brussels in January 2014.

Vietnam is the third ASEAN country to hold FTA negotiations with the EU after Singapore and Malaysia, and followed by Thailand.

Textiles and clothing are among Vietnam’s key exports to the EU.

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