A historic new free trade agreement between Vietnam and the European Union entered into force on August 1, 2020. TEUFTA also broadly supports the sustainable development of infrastructure, including a preference for the use of renewable energy and energy-efficient goods and services. A separate chapter on non-tariff barriers and investments in renewable energy production contains specific rules on authorisation and authorisation procedures, compliance with existing international standards and local share requirements. Vietnam and the EU have both formulated a timetable in which they have pledged to liberalise all tariffs. The key to these commitments is a seven-year calendar for Vietnam`s textile and footwear products. The sector`s exports reached about $9 billion in 2018. Since a large part of Vietnam`s exports to the EU are consumer goods such as clothing, textiles and footwear, the free trade agreement could significantly increase its trade volume. EUVFTA covers a wide range of service sectors, including financial services, professional business services, communication services, postal services, construction and related engineering services, health and social services, environmental services and transport services. Many of the concessions offered by each party go beyond concessions granted under the WTO Agreement on Trade in Services, including packaging services, building cleaning services, interdisciplinary R&D services and maintenance services. In some service sectors, such as telecommunications, the ceilings on foreign participation by EU investors in Vietnam will be increased. The agreement also obliges Vietnam and the EU to include in the EUSFTA all new service obligations that one of the parties will conclude in the future with third countries.

Previously, remanufactured products were considered « used » by Vietnam and were generally not allowed to be imported. However, the text of the agreement allows the import of remanufactured products and will open up trade in high-quality products such as medical devices and auto parts to serve the aftermarket. Vietnam can continue to restrict certain used goods under most-favoured-nation (MFN) conditions. However, the impact of Brexit on trade and investment in the EU is another story. While the Brexit turmoil is exacerbating an existential crisis that has been manifesting in Europe for some time, there is strong reason to believe that Vietnam will continue to reap the benefits of European trade in the years to come. Under euFVTA`s competition chapter, Vietnam and the EU agree to maintain competition law and to ensure that competent authorities apply those laws in a non-discriminatory and transparent manner. In order to combat anti-competitive behaviour and promote procedural fairness, the agreement requires the parties not to enter into agreements that could restrict or distort the examination or competition of a merger and potential acquisition. The Agreement deepens relations between Vietnam and the European Union and was adopted by Council Decision (EU) 2020/753 of 30 March 2020 on the conclusion of the EU-Vietnam Free Trade Agreement. [2] The agreement was adopted in Vietnam on June 8, 2020 in the Vietnamese National Assembly and entered into force on August 1 of the same year. [3] Both agreements were approved by Vietnamese lawmakers by a large majority of about 95% of the vote.

[4] Recent changes in the EU, in particular Brexit, could have an impact on the outcome and importance of the EVFTA. For now, the UK`s free trade agreement will enter into force by the end of the year and could be extended for another 24 months as part of the UK`s deal with the EU. TUEFTA contains Vietnam`s commitment to the World Intellectual Property Organization (« WIPO ») as a means to prevent unauthorized access to creative works and to protect material exchanged over digital networks, including the Internet. In particular, Vietnam has undertaken to accede to the WIPO Copyright Treaty (1996) and the Performances and Phonograms Treaty (1996) within three years of the entry into force of THE TEUFTA. According to reports, the Vietnamese government is completing its internal procedures and the necessary documents for accession to the two treaties. .