VNHN – The EU – Vietnam Free Trade Agreement (EVFTA), which was signed in Hanoi on June 30, has caught the interest of foreign news agencies.
European Commissioner for Trade Cecilia Malmstrom, Romania’s Business, Trade and Enterpreneurship Minister Stefan Radu Oprea and Vietnam’s Industry and Trade Minister Tran Tuan Anh. (Photo: Reuters)
The South China Morning Post (SCMP) wrote: “In the context of the ongoing trade war and protectionism, the agreement is a positive signal that global trade cooperation is still a trend and is on the right track”.
In the article, the news agency quoted Vietnamese Prime Minister Nguyen Xuan Phuc, saying that: “It is a special day for relations between the EU and Vietnam. The agreement has opened a new horizon for the development of both sides”.
It reported that once the deal takes effect, the EU will lift 85 per cent of its tariffs on Vietnamese goods, gradually cutting the rest over the following seven years; meanwhile, Vietnam will lift 49 per cent of its import duties on EU exports when the agreement is started. The rest will be phased out over the next10 years.
The SCMP’s reporter also commented that Vietnam, with a population of 95 million, is one of the world’s fastest-growing economies, and the agreement is expected to accelerate greater trade volume and create vast opportunities for businesses and consumers on both sides.
“Major exports from Vietnam to the EU include phones, footwear, farm products, textiles and garments. Vietnam imports from EU nations hi-tech machinery and equipment, aircraft, vehicles and pharmaceutical products”, the newspaper wrote.
The writer also published the Vietnam’s national general statistics office’s announcement that Vietnam is the EU’s second-largest trading partner in Southeast Asia, with a trade turnover of US$56 billion last year.
South China Morning Post also mentioned the signing of an agreement between the EU and Vietnam, calling for investors to be protected with rules enforced by an investment court system.
According to the Guardian, this was EU’s first agreement to cut 99% of tariffs with a developing country in Asia.
“The European Union has signed a landmark free-trade deal with Vietnam, the first of its kind with a developing country in Asia, paving the way for tariff cuts on almost all goods”, said British daily newspaper.
The Guardian reported that EVFTA will eventually eliminate 99% of tariffs, with some items cut over a 10-year long period and other goods, notably agricultural products, limited by quotas. It is also expected to open up the public procurement and services markets, such as for the postal, banking and maritime sectors.
The press outlet also highlighted Vietnam has one of the region’s fastest-growing economies, backed by robust exports and foreign investment. The country has already signed about a dozen free trade pacts, including CPTPP, the Guardian added.
The EU is Vietnam’s second-largest export market after the US, with the main exports including garment and footwear products, the news agency wrote. In 2018, it exported US$42.5 billion worth of goods and services to the EU.
