Prime Minister Nguyen Xuan Phuc witnesses the signing ceremony for the Europe-Vietnam Free Trade Agreement (EVFTA) and the Europe-Vietnam Investment Protection Agreement (EVIPA) on June 30. — VNA/VNS Photo Thong Nhat
Viet Nam and the European Union on June 30 officially signed the agreements on bilateral free trade and investment protection.
The Europe-Vietnam Free Trade Agreement (EVFTA) will ensure the balance of benefits for both Viet Nam and the EU.
Coming into effect, EVFTA will boost Vietnamese exports, especially agriculture and aquaculture and other products in which Viet Nam has its comparative advantages.
The signing of the Europe-Viet Nam Investment Protection Agreement (EVIPA) will make sure the two sides’ businesses and investors are treated fairly.
The EVIPA will also help Viet Nam develop good, transparent investing and legal frameworks in order to draw more foreign capital from the 28 member nations of the EU.
The signing of the two agreements with the EU shows Viet Nam is determined and committed to making deeper integration into the global economy and contributing to its growth, especially in the context of unpredictable developments in politics and economics.
Viet Nam will have an opportunity to tap the EU markets with total population of 508 million and total gross domestic product (GDP) of around US$18 trillion.
Under the EVFTA, Viet Nam’s exports to EU markets is forecast to rise 4-6 per cent compared to a non-FTA trade relation to reach $19 billion. Its exports are expected to touch $75 billion in 2028.
“The signing of the two agreements has started a new chapter in EU-Viet Nam relations, but there is still work that needs to be done and the best efforts of Viet Nam and the EU are required to resolve them,” said Minister of Industry and Trade Tran Tuan Anh.
“This (the signing ceremony) is an important event that meets the expectations of Viet Nam and the EU and shows the EU’s high appreciation to Viet Nam,” said Nguyen Chi Dung, Minister of Planning and Investment.
The two agreements would drive the two sides’ economic growth and help boost the ASEAN community’s economic relations with the EU and the world, Dung added.
The two new-generation agreements would assist Viet Nam to accelerate its reforms in key issues such as economic growth, administrative framework, labour policy and development sustainability, thus fostering a stable, sustainable and environmentally-friendly market-oriented economy for Viet Nam, he said.
With the agreements taking effect, Viet Nam expects to bring EU investors and businesses and high value-added development projects to the country, create opportunities for Vietnamese companies to approach the EU markets and allow Vietnamese consumers to purchase “Made-in-EU” products at lower prices. — VNS