A workshop entitled “Assessing the Socio-economic and Environmental Impacts of the Viet Nam-EU Free Trade Agreement (VEFTA)” took place in Da Nang on Monday morning.  The event was jointly organised by the city’s Department of Industry and Trade and the European Trade Policy and Investment Support Project (EU-MUTRAP).  The signing of the VEFTA is expected to take place in September and it will mark a remarkable milestone in promoting economic and trade ties between Viet Nam and the EU, which is one of the country’s most important partners.

VEFTA is expected to bring opportunities and challenges for Viet Nam’s industries, especially its garments and textiles sector

Over recent years, Viet Nam has participated in many FTA negotiations with numerous partners who are involved in trade and investment.  Most notably, the Vietnamese government has given priority to entering into FTA negotiations with the EU.

The Technical Assistance Team Leader of EU-MUTRAP, Mr Claudio Dordi, said that once the VEFTA is signed, Vietnamese exports to the EU will enjoy tax exemptions and reductions.  This will promote competitiveness of Vietnamese goods in the EU market, as well as help the country benefit from the granting of the Generalised System of Preferences (GSP).  Under this agreement, the EU will export high-quality technological products and raw materials as well as items which are involved in the trade and service sectors and others to Viet Nam.  In addition, the signing of the VEFTA will help Viet Nam to improve the legal framework relating to non-commercial aspects.

According to economic experts, the EU partners hope that the negotiations and signing of the VEFTA will further boost its export activities and investment in Viet Nam, as well as promote cooperative ties with ASEAN and other Asian countries, including Japan, China and India.  In addition, this agreement will facilitate EU investors and service suppliers to seek investment opportunities in Viet Nam.