After more than two years of negotiations the European Union is concluding a free trade agreement with a developing country for the first time. Enterprises, therefore, will benefit from reduced customs duties and will be exempted from trade restrictions in the future.
Removal of customs duties for Vietnam trade
Essential part of the free trade agreement is that the relevant duties will be removed practically totally (up to 99%). Only for a few products customs duties will still be valid.
Customs duties for European products in Vietnam will be removed mainly when the free trade agreement comes into force.
For the import of Vietnamese products into the European Union, however, the individual duties will be reduced during a period that will cover the next 10 years, step by step. Car parts, for instance, will be exempted from duties within seven years after the free trade agreement with Vietnam comes into force.
Also in the textile industry duties for Vietnamese products will be reduced step by step, only. This in particular in order to avoid that cheap Chinese products enter the European Union via Vietnam. In this connection we have to take into account that in particular in the textile industry the customs authorities will examine carefully whether the certificates of origin are correct.
Abolishing of trade obstacles for European exports to Vietnam
It was also agreed in the free trade agreement with Vietnam that trade barriers for European products should be reduced. This especially is of importance for the car industry.
Furthermore, Vietnam will accept the indication of origin „made in EU“ for non-agricultural and non-pharmaceutical products.
Participation of European enterprises in public invitations to tender in Vietnam
It was also laid down in the free trade agreement that European enterprises may participate in the award of public contracts in Vietnam, e.g. with Vietnamese government departments, especially in the field of infra structure.
Take the opportunity to use the trade facilitations!
The free trade agreement is an important step for all EU-businessmen who wish to improve their business activities in Vietnam. Especially enterprises in the field of pharmaceutical and chemical industry, car, motorcycle, textile or machine industry will benefit from the Free Trade Agreement with Vietnam.
However, the final free trade agreement will not be negotiated in detail until the summer holidays have come to an end. So, enterprises still have to wait to check reliably whether their products will benefit from the free trade agreement.
For further information please contact the website of the European Union.