After being recently ratified by the National Assembly, the European Union-Vietnam Free Trade Agreement (EVFTA) is expected to contribute to liberalising the investment environment whilst increasing trade and economic co-operation with Vietnam, according to a statement given by Czech officials.

Marcel Winter, honorary president of the Czech-Vietnam Friendship Association 

Both the impending EVFTA and the EU-Vietnam Investment Protection Agreement (EVIPA) are of great significance to Vietnam-Czech Republic relations as both nations set to celebrate the 70th anniversary of the establishment of diplomatic ties.

The EVFTA, which is anticipated to come into effect in August, will make the country the second in Southeast Asia to have signed a free trade agreement with the EU, behind only Singapore.

According to the terms of the deal, 71% of Vietnamese exported goods to the EU and 65% of EU exported commodities to the nation will enjoy tax exemptions.

The remaining tax rates of up to 99% are scheduled to be removed by the country after a period of 10 years, whilst they will be removed by the EU after seven years.

Marcel Winter, honorary president of the Czech-Vietnam Friendship Association, underscored the importance of seizing upon the trade opportunities brought about by the trade pact for Czech investors and entrepreneurs as well as taking full advantage of  the time-honoured bilateral ties that exist between the two countries. 

Winter went on to advise Czech investors to make use of oversea Vietnamese community in the Czech Republic, which  will serve as a bridge to help them step up co-operation with Vietnam. 

Meanwhile, Dita Charanzová, Vice President of the European Parliament, described the trade deal as a wonderful chance for Czech companies to expand into fresh markets, noting that for an export-oriented economy such as the Czech Republic, this type of co-operation partnership with third party countries represents an extremely important opportunity.

This comes following the Prague Daily Monitor news publication recently reporting that the EVFTA will serve to help Czech companies save over VND1,000 billion.

According to the Czech news publisher ihned.cz, the trade deal is expected to bring numerous benefits to Czech companies, including tariff barriers being gradually abolished to facilitate the entry of Czech businesses into the Vietnamese market.

The Czech Republic had been one of the EU nations most active in supporting the ratification of the trade pact, becoming the first European nation to approve the EVIPA in the process.