The Vietnam - EU Free Trade Agreement (EVFTA) is expected to have a positive impact on employment and social welfare, with the number of jobs and the wages of workers poised to increase, according to the Ministry of Industry and Trade (MoIT).

Workers could become the biggest beneficiaries of EVFTA

The MoIT emphasised that both the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the EVFTA will provide fresh impetus to achieving sustainable development in the future, therefore bringing about a range of practical benefits for both businesses and people to enjoy. 

With the EVFTA set to come into effect in a couple of months, it is anticipated that it will help to create approximately 146,000 new jobs every year, with the majority being created in labour-intensive industries that enjoy high export growth rates to the EU market, such as textiles and apparel, leather and footwear, air and waterway transport. 

Experts believe that the salary of staff working at foreign-invested enterprises will increase by roughly 1% in comparison to domestic enterprises, noting that the trade pact will offer a fresh opportunity for local firms to participate in greater trade and investment if they prepare well and are ready to take full advantage of the benefits brought about by the trade deal. 

In order to take full advantages of the opportunities that access to the EU market brings, the MoIT underscored the importance of being active in seeking information regarding the EVFTA to fully grasp the commitments of both sides, especially with regard to information on tariff preferences for goods that the country could look to export in the near future.

In addition, the MoIT has advised domestic enterprises to improve their overall product quality and design, look to enhance their competitive edge, increase productivity, as well as meeting the requirements set out in terms of the rules of origin, along with those of EU technical standards.

Local firms have therefore been urged to change their way of thinking to fit in more with ongoing international economic integration. This can be done by drawing up mid-term and long-term business plans that aim to facilitate an increased flow of goods into the EU market.

The EVFTA is expected to be ratified by the National Assembly during the upcoming National Assembly's ninth session scheduled for May 2020.