EVFTA is the most comprehensive and ambitious trade and investment agreement the EU has ever concluded with a developing country in Asia. This is the second agreement reached after Singapore in the ASEAN region and will strengthen bilateral relations between Vietnam and the EU. Vietnam will have access to a potential market of about 446 million people and a total GDP of $13.918 billion. In addition, the EU grants market access preferences to several Vietnamese industries. Import duties on textile clothing imported into the EU will have five to seven years of operating time for more sensitive items between five and seven years and, when it comes into force, for less sensitive products. The EU mainly proposed duty-free tariff quotas for Vietnamese rice exports. Other products that have gained better market access through duty-free tariff quotas are sweet corn, garlic, mushrooms, sugar and sugar products, cassava starch, surimi and canned tuna. Unprocessed shrimp will be liberalized as soon as it comes into force and pangasius will be liberalized in three years. The entry into force of TUEFTA comes amid growing global trade tensions with China. Combined with the ongoing COVID 19 pandemic, this has contributed to the growing trend of companies diversifying their supply chains, with Vietnam rapidly becoming the main beneficiary. The EU is already Vietnam`s second -largest destination for products.
EMU will give new impetus to this important trade route and is an important step towards ending the security of EU investors and other global companies wishing to establish or develop trade relations between Vietnam and the EU, as well as the basis for creating fair and effective trading conditions. Vietnam has made visible efforts and made progress in meeting the high standards of NAFTA. From 1 August 2020, the agreement will create sustainable growth, mutual benefits in different sectors and provide an effective instrument for a balance between the EU and Vietnam.