VGP - Viet Nam and the European Union signed the trade and investment agreements in Ha Noi on June 30, making Viet Nam the second ASEAN nation to sign this kind of agreements with the European Union. 

The signing ceremony of the Viet Nam-EU free trade agreement and investment protection agreement:

Present at the signing ceremony included Prime Minister Nguyen Xuan Phuc, Permanent Deputy Prime Minister Truong Hoa Binh, Deputy Prime Minister and Foreign Minister Pham Binh Minh, Deputy Prime Minister Vu Duc Dam, Deputy Prime Minister Trinh Dinh Dung from the Vietnamese side.

From right to left: Vietnamese Minister of Industry and Trade Tran Tuan Anh, 
Romanian Minister for Business, Trade and Entrepreneurship Ștefan-Radu Oprea,
and  EU Commissioner for Trade Cecilia Malmström sign the EVFTA at
the Government Office in Ha Noi. Photo: VGP

Viet Nam has signed 13 free trade agreements with external partners so far, of which the Viet Nam-EU free trade agreement (EVFTA) and the comprehensive and progressive agreement for trans-pacific partnership (CPTPP) are the “new-generation” deals with higher and broader commitments.

From right to left: Vietnamese Minister of Planning and Investment Nguyen Chi Dung, 
Romanian Minister for Business, Trade and Entrepreneurship Ștefan-Radu Oprea,
and  EU Commissioner for Trade Cecilia Malmström sign the EVIPA at
the Government Office in Ha Noi. Photo: VGP

Beyond economic benefits, the EVFTA and CPTPP are also expected to stimulate the Government’s on-going institutional reform agenda in the context of extensive international integration in which economic integration is the core.

From left to right: Deputy Minister of Industry and Trade Tran Quoc Khanh, Minister-Chairman
of the Government Office Mai Tien Dung, Minister of Public Security To Lam, Deputy Prime Minister
Trinh Dinh Dung, Permanent Deputy Prime Minister Truong Hoa Binh, Romanian Minister for Business
, Trade and Entrepreneurship Ștefan-Radu Oprea, Prime Minister Nguyen Xuan Phuc, EU Commissioner
for Trade Cecilia Malmström, Deputy Prime Minister and Foreign Minister Pham Binh Minh, Vice Chairman
of the National Assembly Uong Chu Luu, Deputy Prime Minister Vu Duc Dam, Minister of Labor, Invalids
and Social Affairs Dao Ngoc Dung, Minister of Industry and Trade Tran Tuan Anh, Minister of Planning
and Investment Nguyen Chi Dung at the signing ceremony. Photo: VGP

Vu Tien Loc, Chairman of the Viet Nam Chamber of Commerce and Industry said the signing of the EVFTA in Ha Noi this week reflects the Government’s determination to work towards “higher value-added economy”.

The trade deal can ben seen as an expressway to connect Viet Nam with one of the world’s top economic and technological centers.

The EU is an ideal market for businesses operating in Viet Nam to step up the added values of their exports and will help improve the quality of foreign investment in the Southeast Asian country. Loc said.

Prime Minister Nguyen Xuan Phuc addresses the signing ceremony of the EVFTA
and the EVIPA at the Government Office in Ha Noi on June 30, 2019. Photo: VGP

Speaking at the signing ceremony, PM Nguyen Xuan Phuc extended thanks to the EU side for having assisting Viet Nam during the signing process.

Phuc labeled the signing of the trade and investment deals as the “significant milestone” in the Viet Nam-EU relations while calling on both sides to work together to ensure successful realization of the two deals.

The deals would open up chapter for broader and comprehensive cooperation and meet aspirations of citizens and businesses of both sides.

For the Vietnamese side, a national action program will be adopted to implement the agreements, which will specify concrete tasks and measures to seriously and fully realize the commitments, according to PM Phuc.

He also expressed his belief that the European Parliament and the parliaments of the European member countries as well as the National Assembly of Viet Nam to soon ratify the EVFTA and the EVIPA.

Phuc also took the occasion to extend thanks to the EU member countries for having supported Viet Nam to win a non-permanent seat on the United Nations Security Council for the tenure 20202021, pledging to work closely with the EU side on international issues and at the United Nations.

EU Commissioner for Trade Cecilia Malmstrom. Photo: VGP

Meanwhile, EU Commissioner for Trade Cecilia Malmstrom and  Romanian Minister for Business, Trade and Entrepreneurship Ștefan-Radu Oprea affirmed tht the signing ceremony reflects the long-lasting cooperation between Viet Nam and the EU.

Ms. Malmstrom expressed her belief that the agreements will bring benefits to consumers and businesses from both Viet Nam and the EU thanks to the elimination of 99% of all tariffs in a progressive way, contributing to fostering bilateral investment ties.

************************************

Negotiations process

Prime Minister Nguyen Xuan Phuc and EU Commissioner for Trade Cecilia Malmström
and Romanian Minister for Business, Trade and Entrepreneurship Ștefan-Radu Oprea
at the Government Office in Ha Noi on June 30, 2019. Photo: VGP

Both sides officilally started negotiations of the Viet Nam-EU free trade agreement (EVFTA) in June 2012 and completed the talks process at the end of 2015.

Participants at the signing ceremony. Photo: VGP

In September 2017, the EU side suggested the division of the agreement into two deals, namely the Viet Nam-EU free trade and agreement (EVFTA) and the Viet Nam-EU investment protection agreement (EVIPA).

In June 2018, Viet Nam and the EU officially agreed to separate the original agreement into the EVFTA and the EVIPA at the proposal of the latter.

On October 17, 2018, the European Commission officially approve the trade and investment deals.

On June 25, 2019, the European Council approved the EU-Viet Nam trade and investment agreements, paving the way for their signature and conclusion.

Prime Minister Nguyen Xuan Phuc introduces favorite tourist destinations to EU Commissioner
for Trade Cecilia Malmström and Romanian Minister for Business, Trade and Entrepreneurship
Ștefan-Radu Oprea. Photo: VGP

The agreements are set to bring unprecedented benefits for European and Vietnamese companies, consumers and workers, while promoting respect for labor rights, environmental protection and the fight against climate change under the Paris Agreement, according to the EU side.

Once it takes effect, the EU will immediately eliminate 85.6% of its all import duties and 99.2% after seven years. This is the highest commitment by foreign partner so far.

Photo: VGP

The EVFTA will is expected to help increase Viet Nam’s GDP by 2.18-3.25% in the 2019-2023 period, and 4.57%-5.03% in the following five years.

The Vietnamese Ministry of Planning and Investment estimated that Viet Nam’s exports to the EU is projected to grow by 20% by 2020; 42.75 by 2025; and 44.37% by 2030.