The first round of free trade agreement (FTA) negotiations between Vietnam and the EU will take place in early autumn with 90 tariff lines to be lifted if the deal is concluded.
The EU and Vietnam signed the Partnership and Cooperation Agreement (PCA) last week to replace a previous agreement from 1995, marking a new step forward in bilateral trade development between the two sides, said Franz Jessen, head delegate of the EU.
The EU is preparing documents to identify the scope of FTA negotiations, according to Jessen. Both sides will sit down to discuss customs tax, intellectual property and trade facilitation.
Apart from food safety conditions, both sides will talk about market access and investment protection. “Thus this will be a trade agreement that covers a broad range of aspects,” said Jessen.
Vietnam will enjoy benefits with the FTA. It will be exempt from 90 tariff lines within seven years, which means Vietnamese products will enjoy zero tax when being exported to the EU.
EU exports to Vietnam will surge in the near future, offering local consumers a wide choice of products at competitive prices.
There will also be a remarkable increase in FDI inflow into Vietnam as European investors plan to flock to Vietnam for investment as there will be more incentives after the FTA deal is stamped.