Policies and regulations must be ready once the Europe-Việt Nam Free Trade Agreement (EVFTA) is approved so Vietnamese enterprises can reap the benefits of the trade pact, experts said on Monday.

The European Union-Vietnam Free Trade Agreement (EVFTA) and the EU-Vietnam Investment Protection Agreement (EVIPA), scheduled to become effective in July, will help improve Vietnam’s business and investment climate and boost its institutional reform, thus contributing to fostering its growth in a long term, according to an official.

To make best use of opportunities, especially to promote the export of goods to the EU when the Vietnam-EU Free Trade Agreement (EVFTA) comes into effect, setting up a plan of action, completing the legal framework, ensuring to meet the rules of origin of goods...are the jobs that have been strongly implemented by ministries and branches.

The textile and footwear industry must pay more attention to the origin and quality of exported products.

As an agreement with a deep and comprehensive level of commitment covering economic, trade, investment and sustainable development issues, EVFTA and EVIPA will open up great opportunities for both sides, maximizing the potential and complementarity, thereby contributing to deepening and creating long-term benefits between the two sides.

Minister of Industry and Trade Tran Tuan Anh on February 26 asked relevant departments and agencies to optimise commitments in the European Union – Vietnam Free Trade Agreement (EVFTA) which will take effect later this year.

On February 12, 2020, the European Parliament ratified the EU-Vietnam Free Trade Agreement (EVFTA) receiving 401 votes in favor, 192 against and 40 abstentions. On the same day, the EU-Vietnam Investment Protection Agreement (“EVIPA”) was also approved marking a historic step in EU-Vietnam trade relations. Both agreements were already officially signed in Hanoi In June 2019.

After a period of steady growth, in 2019, Vietnam's shrimp export value was only US$ 3.36 billion, down 5.4% compared to 2018. However, the prospects for shrimp exports in 2020 are quite bright, with positive signals from big markets and some emerging markets.

The European Parliament (EP) on February 12 ratified the European Union Vietnam Free Trade Agreement (EVFTA) and the EU-Vietnam Investment Protection Agreement (EVIPA). The next step before the agreements can come into force is the ratification of the agreement by the National Assembly of Vietnam which is expected in May 2020.

Though Vietnamese textile and garment firms are aware of the opportunities the European Union (EU)-Vietnam Free Trade Agreement (EVFTA) offers to expand export markets, they are facing difficulties in complying with the rules of origin. Though the ministry of planning and investment hopes the sector’s export turnover to the EU will increase by 81 per cent, firms are sceptical.