Việt Nam is continuing its institutional reform commitments made in the historic EU-Việt Nam Free Trade Agreement (EVFTA) in an aim to boost exports of agricultural products and attract more investment from the EU trading bloc.  Mr. Võ Tân Thành, vice chairman of the Việt Nam Chamber of Commerce and Industry (VCCI) said the country has made huge progress in administrative reform and improvement of the business environment. However, the EU is a highly demanding market and exporters must meet its food safety standards and management procedures and provide transparent information about their labour force and working environment. European consumers prefer high-quality products, especially those that are organic or fair trade, or have geographical indications. He urged farmers to gradually shift from traditional to more sustainable cultivation and to adhere to food safety and hygiene regulations in the EVFTA and other FTAs. Mr. Thanh said that exporters must also follow the rules of origin (RO) and engage in corporate social responsibility (CSR), sustainable development and environmental protection who spoke at a conference on Vietanmese farm produce exports to the EU under the EVFTA organised last week in HCM City. Mr. Lê Duy Minh, chairman of the Việt Nam Farms and Agricultural Enterprises Association (VFAEA) noted that the EU is the third largest trade partner of Việt Nam and one of the country’s two biggest export markets. Exports of agro-forestry-fishery products to the EU stand at nearly US$5 billion per year. Mr. Phạm Văn Duy, deputy director of the Ministry of Agriculture and Rural Development’s Agro-product Processing and Market Development Department said the EU is a choosy market, so meeting the EU’s requirements will help businesses open the door to other markets in the world. He said that it was important to protect intellectual property of major agricultural products and to promote branding, geographical indications and traceability. 

For the past decade, Vietnamese exports of agricultural, forestry and aquatic products grew more than 9 per cent on average each year. Việt Nam’s agricultural sector will be one of the biggest winners from the EVFTA as reductions in tariffs will increase demand and boost exports to Europe’s high-spending consumer market according to experts. Trade in agricultural products represents nearly 12 percent of the total two-way trade between Việt Nam and the EU. The trade pact abolishes 99 per cent of import tariffs over the next seven to 10 years.  With a population of more than 500 million and a combined GDP of over $15 trillion, accounting for 22 per cent of the world’s GDP, the EU is the world's largest exporter and importer with annual trade of $3.8 trillion

Commitments of Vietnam when EVFTA is effective

Vietnam commits to eliminate tariffs right after the EVFTA comes into effect for EU goods belonging to 48.5% of tariff lines in the tariff, equivalent to 64.5% of EU export turnover to Vietnam. Within 7 years since EVFTA took effect, Vietnam committed to eliminate 91.8% of tariff lines in the tariff schedule, equivalent to 97.1% of EU's export turnover to Vietnam;

Within 10 years since EVFTA took effect, Vietnam pledged to eliminate about 98.3% of tariff lines in the tariff, accounting for 99.8% of EU's export turnover to Vietnam.

Vietnam and the EU undertake not to apply any export taxes or fees except for cases where they are clearly reserved (according to the commitment results, only Vietnam has reservations on this issue, the EU does not make reservations. any). According to this principle, except for cases with reservations (of Vietnam), Vietnam and the EU will not apply any taxes or fees for exported goods but not for domestically consumed goods. Taxes and fees imposed on exports are higher than those for domestic consumption.

Commitments of Vietnam and EU in EVFTA on trade in investment services towards creating an open and favorable investment environment for the operation of enterprises of both sides

The EVFTA Agreement includes the principles of Government procurement (public bidding) that are equivalent to the provisions of the WTO Government Procurement Agreement (GPA). With some obligations such as online bidding, setting up a portal to post bidding information

The two Sides agree on the principles for state-owned enterprises; These principles, together with the principles of subsidies, aim to ensure an environment of equal competition between SOEs and private enterprises when SOEs engage in commercial activities.