It is estimated that the EU-Vietnam FTA (EVFTA), the “most ambitious” FTA the EU has ever concluded with a developing country, will add 0.1 percentage point (ppt) on average to Vietnam’s real GDP growth each year based solely on its trade impacts.
Once the EU-Vietnam FTA (EVFTA) is signed and the tariff is cut to zero percent, textile and garment exports to the market may obtain 7-8% growth rate per annum, experts say.
The EU-Vietnam Free Trade Agreement (EVFTA), which is going to be signed in 2018, will boost Vietnam’s GDP by US$3.2 billion by 2020, US$6.7 billion by 2025, and US$7.2 billion by 2030.
Trade revenues between Vietnam and the Eurasian Economic Union (EAEU) are expected to increase to US$10-12 billion by 2020, after a free trade agreement between the two sides takes effect in 2016.
The law on support to small- and medium-sized enterprises (SMEs), which is being drafted, is set to facilitate the development of the firms making up 97% of the businesses in Vietnam.