Once the trade deal comes into effect, 65% of duties on EU exports to the country will be eliminated, while the remainder will be gradually phased out over the course of a 10-year period. Furthermore, 71% of duties are poised to be eliminated on Vietnamese exports to the EU, with the rest being eliminated over a seven-year period.
The EVFTA also features many important provisions with regard to intellectual property protection, workers' rights, and sustainable development.
It also covers commitments in terms of the implementation of the International Labor Organization's core standards, as well as various UN conventions regarding climate change response and biodiversity protection.
The EVFTA represents a new generation bilateral agreement that is considered to be an ambitious trade agreement which will seek to eliminate 99% of custom duties between both sides. It is expected to help raise Vietnamese GDP by 4.6%, with exports to the EU anticipated to rise by 42.7% by 2025.
Moreover, EU investors are currently operational in 18 economic sectors and in 52 out of the 63 provinces nationwide. Investment has therefore been the most prominent area of focus, with a particular emphasis placed on manufacturing, electricity, and real estate. With 24 EU nations investing in the country, the Netherlands leads the way, trailed by France, and the UK.