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Vietnam Eu Agreement

The TFUE is expected to remain in force until the end of the year, while the UK (UK) is still in a customs union with the EU. The situation from 1 January 2021 will depend on the decision of the United Kingdom and Vietnam to agree on their own bilateral agreement, although this is unlikely in the short term, given that Vietnam is not one of the UK`s priority free trade countries (including the EU, the United States, Japan, Australia and New Zealand). The question of a possible diagonal or extended accumulation of origin between the UK, the EU and Vietnam (i.e. when parts of countries not participating in a free trade agreement. B, for example the United Kingdom from 2021, can be considered «original products» and thus help to satisfy the preferential rule of origin of a product) depends on the willingness of the three parties to approve it. At present, the EU does not foresee any possibility of such an extended accumulation in its free trade agreements with the United Kingdom for a free trade agreement. The EU`s bilateral trade and investment agreements with Vietnam in March 2020 and the trade agreement are expected to enter into force this summer, following Vietnam`s final ratification. The agreements with Vietnam are the second (after those with Singapore) between the EU and a South-East Asian country and are springboards for stronger engagement between the EU and the region. Vietnam can also take advantage of institutional reforms and bilateral cooperation mechanisms and reaffirm to investors that it is the regional investment centre for improving technology, human resources and labour productivity. The Vietnamese Ministry of Commerce considered that the signing of these agreements would create opportunities to participate in the restructuring of new supply chains, amid the consequences of the coronavirus pandemic.

Singapore has been welcomed since the signing of its free trade agreements. These agreements have helped local businesses and investors access overseas markets, move their products faster and easier, and benefit from tariff concessions, preferential access to certain sectors and protection from mental protection. According to a study by Singapore`s Ministry of Trade and Industry, free trade companies have saved about $730 million in tariffs and bilateral trade has increased by $9.7 million and bilateral investment has increased 26-fold. In 2015, the EU and Vietnam agreed on the principle of a comprehensive and ambitious trade and investment agreement. This free trade agreement (FTA) is the second largest in the ASEAN region after Singapore and is another part of the EU`s ultimate goal of a free trade agreement between the EU and ASEAN. The agreements must now be ratified by the Vietnamese National Assembly and EU member states in the case of the Investment Protection Agreement. Once the agreements are in place, the agreements will provide opportunities to increase trade and promote jobs and growth on both sides, and on 8 June, the Vietnamese National Assembly approved the agreements by an overwhelming majority, with 457 MPs in favour of the free trade agreement and 462 in favour of the IAP. According to some Vietnamese newspapers, the agreements could come into force in July. At the most fundamental level, the agreements will promote jobs and growth between Vietnam and the EU. The agreements will gradually reduce most tariffs, regulatory barriers and bureaucracy, and encourage EU entrepreneurs to do business and invest in Vietnam.

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