Free Trade Agreement between the European Union and Vietnam

SUMMARY OF:

Decision (EU) 2019/1121 on the signing, on behalf of the EU, of the Free Trade Agreement between the EU and the Socialist Republic of Viet Nam

WHAT IS THE AIM OF THE FREE TRADE AGREEMENT?

The free trade agreement (FTA) between the EU and the Socialist Republic of Vietnam aims to liberalise and encourage trade and investment between the two partners.
The decision marks the signing of the FTA by the Council on behalf of the EU.

KEY POINTS

The EU-Vietnam FTA establishes the conditions for EU economic operators to take full advantage of the opportunities created in Vietnam by securing:

the comprehensive liberalisation of services and investment markets, including issuing of licences to carry out activities in these markets, the mutual recognition of qualifications and sector-specific rules designed to ensure a level playing field for EU businesses;
new tendering opportunities for EU bidders in Vietnam, which is not a member of the WTO Agreement on Government Procurement;
the removal of technical and regulatory barriers to trade in goods, such as duplicative testing, in particular by promoting the technical and regulatory standards familiar in the EU in the sectors of
- motor vehicles
- pharmaceuticals and medical devices and
- green technologies;
trade based on international standards to allow for the approval of EU food exports to Vietnam;
Vietnam’s commitment to reduce or eliminate its tariffs on imports from the EU, and cheaper access of EU businesses and consumers to products originating in Vietnam;
a high level protection of intellectual property rights, and the enforcement of these rights, in accordance with the Agreement on Trade-Related aspects of Intellectual Property Rights (TRIPs), including EU geographical indications; and
a comprehensive chapter on trade and sustainable development which aims at ensuring that trade supports labour rights, environmental protection and social development and promotes the sustainable management of forests and fisheries. It includes commitments to apply international standards and on ratifying a number of international conventions. The chapter also sets out how social partners and civil society will be involved in its implementation and monitoring.

DATE OF ENTRY INTO FORCE

The agreement has entered into force on 1 August 2020.

BACKGROUND

At the same time, the EU and Vietnam have negotiated an investment protection agreement.
In 2012, the EU and Vietnam signed the EU-Vietnam Framework Agreement on Comprehensive Partnership and Cooperation.

MAIN DOCUMENTS

Free Trade Agreement between the European Union and the Socialist Republic of Viet Nam (OJ L 186, 12.6.2020, p. 3-1400)

Council Decision (EU) 2019/1121 of 25 June 2019 on the signing, on behalf of the European Union, of the Free Trade Agreement between the European Union and the Socialist Republic of Viet Nam (OJ L 177, 2.7.2019, pp. 1-2)