The free trade agreement (FTA) between Vietnam and the European Union (EU) has been in the works for years, and it was finally ratified in June 2020. This historic agreement marks a major milestone in the relationship between Vietnam and the EU, one that promises to bring significant benefits to both parties.
Vietnam is one of the fastest-growing economies in Southeast Asia, and the EU is one of the largest markets in the world. The FTA will eliminate tariffs on 99% of all goods traded between Vietnam and the EU, creating new opportunities for businesses and spurring economic growth on both sides.
One of the most significant benefits of the FTA for Vietnam is increased access to the European market. The EU is Vietnam`s second-largest trading partner, and the FTA will make it easier for Vietnamese businesses to export their products to Europe. This will not only increase Vietnam`s exports but also create jobs and boost economic growth.
The FTA will also give European businesses unprecedented access to Vietnam`s growing market of over 95 million people. Vietnam`s rapidly developing economy and growing middle class make it an attractive destination for European businesses looking to expand into Southeast Asia.
Another important aspect of the FTA is its focus on sustainable development. The agreement includes provisions to protect workers` rights, promote environmental sustainability, and create a level playing field for businesses. This commitment to sustainability will help ensure that the benefits of the FTA are shared equitably and that both Vietnam and the EU continue to grow in a sustainable and responsible manner.
In conclusion, the free trade agreement between Vietnam and the European Union is a significant development for both parties. The elimination of tariffs and increased market access will create new economic opportunities and boost growth on both sides. The FTA`s focus on sustainable development ensures that these benefits are shared equitably, creating a win-win situation for Vietnam and the EU.