HomeAnalysisVietnam to ratify two trade deals with EU next week

Vietnam to ratify two trade deals with EU next week

Vietnamโ€™s National Assembly will ratify two trade agreements with the European Union when its session opens coming week, the legislatureโ€™s general secretary said on Monday.

โ€œThe assembly will submit the EU-Vietnam Free Trade Agreement (EVFTA) and the EU-Vietnam Investment Protection Agreement (EVIPA) for consideration and ratification on opening day May 28,โ€™โ€™ General Secretary Nguyen Hanh Phuc told reporters in Hanoi.

According to vice chairman of the assemblyโ€™s External Relations Committee, Nguyen Manh Tien, the wide-ranging free trade agreement eliminates 99 per cent of all tariffs.

Manh Tien also said that the agreement has forced Vietnam to open up its services and public procurement markets to EU companies.

โ€œThe deal is considered a potential economic boom for Vietnam.

โ€œIt also helps the country to achieve an annual target GDP between 2.18 and 3.25 per cent in the coming years, and to get access to a market of 500 million people,โ€™โ€™ he said.

The deal, approved by the EU parliament in February, is described by Brussels as its most ambitious agreement with a developing country yet.

According to the EU, it obliges Vietnam to adhere to International Labour Organisation standards.

โ€œThis includes the freedom of association and the right to collective bargaining, the elimination of all forms of forced labour, the abolition of child labour and the elimination of employer discrimination.

โ€œEVFTA will take effect as early as July, after the two sides notify each other of the completion of the approval process.

โ€œThe National Assembly will also ratify the EVIPA, which aims to protect investors and investments in the EU and Vietnam,โ€™โ€™ the EU noted.

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