The European Union (EU) – Vietnam Free Trade Agreement (EVFTA) - the most comprehensive trade agreement the EU has signed with a developing country, will take effect from August 1, a press release of the European Commission (EC) stressed.

EC President Ursula von der Leyen  (Photo: Xinhua/VNA)

In the document issued on July 31, EC President Ursula von der Leyen said the European economy now needs every opportunity to recover its strength after the crisis caused by the COVID-19 pandemic.

Trade agreements such as the EVFTA will provide European companies opportunities to access emerging markets, and create jobs for Europeans, she added.

She expressed her strong belief that the trade pact will also create a chance for Vietnamese to enjoy a more prosperous economy and gain more benefits.

EU Trade Commissioner Phil Hogan stated that Vietnam is currently in the group of 77 countries having trade relations with the EU under bilateral preferential terms.

EVFTA helps further promote economic linkage between the EU and dynamic regions in Southeast Asia and contributes to economic recovery after the COVID-19 crisis, he said.

The agreement also shows that trade policies can bring about many social benefits, he said, adding that Vietnam has made great efforts to improve its labourers' rights through trade negotiations.

EVFTA is expected to eliminate 99 percent of tariffs on goods traded between the EU and Vietnam, and make it easier for European companies to invest in the Southeast Asian nation.