As the world becomes increasingly interconnected, trade agreements between nations have become more important than ever before. One such agreement is between the European Union (EU) and Vietnam, which holds great potential for both parties.
The EU-Vietnam Trade and Investment Agreement (EVFTA) was signed in June 2019 and came into effect in August 2020. The agreement aims to eliminate tariffs on almost all goods traded between the two parties, thus providing significant economic benefits to both. It is also designed to improve investment conditions and level the playing field for companies from both sides.
Vietnam is the EU`s second-largest trading partner in the Association of Southeast Asian Nations (ASEAN) and the agreement has the potential to create a market of around 97 million people. The elimination of tariffs on goods will make EU products more competitive in Vietnam and vice versa. It will also help in the creation of new business opportunities and jobs.
For example, the agreement will make European automobiles, pharmaceuticals, and chemicals more accessible to the Vietnamese market, which will help to promote growth and development in the country. Similarly, Vietnamese textiles, footwear, and agricultural products will find a ready market in the EU, which will help to boost the country`s economy.
The agreement is also expected to have a significant impact on the environment. The EVFTA includes provisions for the protection of forests and other natural resources, as well as measures to promote sustainable development. This will help to ensure that trade does not come at the cost of the environment and will help to promote green growth in Vietnam.
In conclusion, the EU-Vietnam Trade and Investment Agreement is a landmark agreement that has the potential to generate significant economic benefits for both parties. The elimination of tariffs, the improvement of investment conditions and the promotion of sustainable development are among the key provisions of the agreement. With the right implementation and cooperation, the agreement could create vast growth opportunities for both the EU and Vietnam and help to promote long-term economic growth and development.