The European Union – Viet Nam Free Trade Agreement (EVFTA) is regarded as a leverage for Viet Nam's economic growth as it opens up vast opportunities for Vietnamese exports to penetrate a market with combined GDP of US$ 18 trillion, said Minister of Industry and Trade Tran Tuan Anh. 

Minister of Industry and Trade Tran Tuan Anh. Photo: VGP

Anh underlined the point at a press conference on Wednesday right after the European Parliament ratified the trade and investment deals with Viet Nam.

Though the EU has been the largest importer of Viet Nam, the market share of Vietnamese exports still remains modest due to our limited goods competitiveness as well as the EU’s market barriers, said Anh.

However, the trade deal, featuring with unprecedentedly strong commitments to opening market, would help boost Viet Nam’s price competitiveness advantage for such commodities like garment and textile, footwear, and agricultural products.

In addition, Viet Nam and the EU are highly supplementary economies, he added.

Viet Nam and the EU signed the trade and investment deals in Ha Noi on June 30, 2019, which cover extensive and comprehensive commitments across fields of economy, trade, investment and sustainable development issues.

The Vietnamese Ministry of Planning and Investment estimated that the deals will help Viet Nam increase its GDP by 4.6% and its exports to the EU by 42.7% by 2025.

Meanwhile, the European Commission has projected the EU’s GDP to increase by US$29.5 billion and its exports to Viet Nam by 29% by 2035./.