Agreement EU-Vietnam: What It Means for Businesses and Investors
The European Union (EU) and Vietnam recently signed a historic free trade agreement, formally known as the EU-Vietnam Free Trade Agreement (EVFTA). This agreement has been in negotiations since 2012 and is expected to bring significant benefits to both Vietnam and the EU, particularly in the areas of trade and investment. In this article, we will take a closer look at the highlights of the agreement and what it means for businesses and investors.
Tariff Elimination
One of the major benefits of the EVFTA is the elimination of tariffs on goods traded between the EU and Vietnam. This will create a more equal playing field for businesses by reducing trade barriers and increasing competition. It is estimated that 99% of tariffs will be eliminated within the first seven years of the agreement, which will particularly benefit industries such as textiles, agriculture, and automobiles.
Investment Protection
The EVFTA also includes provisions to protect and promote investment between the EU and Vietnam. This includes the establishment of an Investment Court System to handle disputes between investors and the Vietnamese government, as well as the commitment to uphold international labor and environmental standards.
Intellectual Property Rights
Another key aspect of the agreement is the protection of intellectual property rights. The EVFTA sets out provisions for the protection of trademarks, patents, and copyrights, which will provide greater certainty and protection for businesses investing in Vietnam.
Market Access
The agreement also provides for greater market access for EU businesses in Vietnam. This includes the removal of non-tariff barriers and the opening up of certain industries to foreign investment. Additionally, the EVFTA provides for the liberalization of services, such as telecommunications, transport, and financial services.
Sustainable Development
The EVFTA also includes a chapter on sustainable development, which sets out commitments by both the EU and Vietnam to promote sustainable development and protect the environment. This includes the promotion of green technology and the protection of natural resources.
Conclusion
The EVFTA is an important milestone for both Vietnam and the EU, as it represents a significant step forward in trade and investment relations. Businesses and investors can expect to benefit from the elimination of tariffs, greater market access, and increased protection of intellectual property rights. Additionally, the EVFTA sets out provisions for investment protection, sustainable development, and the promotion of labor and environmental standards. As Vietnam continues to develop and modernize its economy, the EVFTA provides an important framework for businesses and investors to operate within.
