The EU-Việt Nam Free Trade Agreement would provide a big impetus to Việt Nam's exports to the EU and be key to Vietnamese companies penetrating one of the largest and most lucrative markets in the world, experts have said.

The recently inked EU-Vietnam Free Trade Agreement (EVFTA) has made Vietnam the second ASEAN country and the first developing nation in the region to have an FTA with the European Union (EU). This high-standard FTA is expected to open unprecedented business opportunities for both sides. However, it will also require them to cope with challenges.

Vietnam Leather, Footwear and Handbag Association Secretary General Phan Thi Thanh Xuan talked about the benefits of the EU-Vietnam Free Trade Agreement (EVFTA) in an interview with Vietnam Economic News’ Viet Nga.

According to the World Bank, Vietnam has one of the fastest growing economies in the world—7.1% GDP growth in 2018, and 6.7% at the mid-point of 2019.

EU-Vietnam Free Trade Agreement (EVFTA) and the EU-Vietnam Investment Protection Agreement (EVIPA) are expected to considerably increase European investment in Vietnam.

In order to take advantage of the EU-Vietnam Free Trade Agreement (EVFTA), experts say Vietnamese enterprises should pay more attention to intellectual property rights.

China’s yuan (renminbi) has remained above the sensitive level of seven to the US currency for the last three days, hinting that trade friction between the US and China is entering a dangerous phase. The escalating tension between the two world powers is predicted to have negative impacts on Vietnam’s trade in the short term.

The European Union (EU) considers Vietnam a leading partner in the region and is implementing many specific policies and measures to enhance its cooperative relations with the Southeast Asian country, a senior EU official said on August 5.

Nearly 90% of the input materials for the industry is currently being imported from countries which are not members of the EU or those which the bloc has signed trade deals with. 

The EU wants to promote the relationship with Vietnam and other ASEAN nations, among those, Vietnam is the one which signed the most agreements and co-operation programs with the EU and had the highest number of students studying in the union.