Vietnam signs significant trade deal with the EU

Vietnam on Monday ratified a significant tre deal with European Union, which is expected to boost country’s manufacturing sector and exports, as it recovers from a dip caused by coronavirus pandemic. Lawmakers approved agreement as y met in National Assembly for first time since pandemic began. deal was signed in Hai last June and was ratified by European Parliament in February.

When it takes effect next month, EU will lift 85% of its tariffs on Vietnamese goods, grually cutting rest over next seven years. Vietnam will lift 49% of its import duties on EU exports and phase out rest over 10 years. Following trend of manufacturing shifting from China to or countries, accelerated first by China-US tre war n COVID-19, agreement is expected to raise Vietnam’s competitiveness in attracting investors. Vietnam is EU’s second-largest tring partner in Souast Asia, with tre turver reaching $56 billion last year, according to national general statistics office. With Singapore being only or country in Souast Asia holding a free-tre agreement with EU, Vietnam will have an edge regionally.

Lawmakers also ratified a second pact that protects investors. y h been negotiated since 2012 and give EU companies equal treatment with domestic bidders in competing for public contracts in Vietnam. y also commit Vietnam to standards for sustainable development, including improving its human rights record, protecting labor rights and upholding its pledges to deal with climate change under Paris accord.