Vietnam’s National Assembly recently ratified the European Union-Vietnam Free Trade Agreement (EVFTA), which took eight years to negotiate and will reduce or eliminate 99 per cent of tariffs on goods traded between the two nations. It also approved the EU-Vietnam Investment Protection Agreement (EVIPA). Both agreements are expected to take effect in July.

Up to 94.62 per cent of lawmakers voted in favour of the EVFTA and 95.65 per cent approved the EVIPA.

Under the EVFTA, Vietnam will eliminate 99 per cent of its import duties over 10 years and the EU will do the same over seven. It was approved by the European Council in March.

Regulations related to intellectual property (IP) listed in the EVFTA agreement will not take effect until Vietnam updates its IP laws, according to Vietnamese media reports.

For the United Kingdom, the agreement will apply from the time it takes effect until the year end year and could be extended for 24 months according to the agreement between it and the EU for its exit from the bloc.

Immediately after the EVFTA takes effect, the EU will eliminate import duties on 85.6 per cent of tariff lines, accounting for 70.3 per cent of Vietnam's exports to the bloc. It will gradually eliminate 99.2 per cent of tariff lines, accounting for 99.7 per cent of Vietnam’s exports, over the next seven years. As for the remaining 0.3 per cent, it will give Vietnam tariff quotas with import duties of zero per cent.

Fibre2Fashion News Desk (DS)

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