The EU-Vietnam Free Trade Agreement (EVFTA) and the EU-Vietnam Investment Protection Agreement (EVIPA), which are set to be signed in Hanoi on June 30, will help to improve Vietnam’s position in the global economy, an expert from the Australian National University (ANU) has said.

Illustrative image (Source: VNA)

According to Chu Hoang Long, a senior lecturer in the Crawford School of Public Policy at the Australian National University (ANU), the trade and investment deals are the most comprehensive agreements concluded between the EU and a middle-income country.

By signing the agreements with the EU, Vietnam is on par with its major partners of the EU in Asia such as Japan and the Republic of Korea. 

The EU highly valued the signing of the two agreements, considering it an important step to reach a deal with ASEAN in the future, Long said, adding that the EU had signed a trade pact with Singapore in ASEAN.

Under the agreements, EU exporters and investors will get preferential treatment in Vietnam as those from countries participating in Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which Vietnam joined, do. 

The signing of the agreements shows that Vietnam is committed to implementing the world’s high standards in trade and investment activities, manpower use, the environment, and sustainable development, Long stressed. 

Implementing these commitments will help Vietnam build the image of a dynamic and civilized nation with respect for law and common values, he noted. 

The agreements will help increase the competitiveness of Vietnamese goods in the EU market - the second largest importer of Vietnam in 2018; and promote Vietnam’s deeper integration into the global economy, thus taking advantage of EU technology and innovation to diversify its economy and improve its competitiveness.

However, Long pointed out challenges facing Vietnam, saying that domestic producers will have to compete with products imported from the EU, and Vietnam needs to make legal changes to implement its commitments related to services, intellectual property, origin of goods, the rights of labourers and environmental protection.