OVERVIEW OF EVFTA

1. INTRODUCTION
https://www.economica.vn/news/detail/the-evfta-and-its-
implications-to-vietnam/511
https://admin.quangngai.gov.vn/web/site-qni-english/xem-chi-tiet/-/
asset_publisher//Content/major-milestones-of-evfta?9592460

The EU-Vietnam Free Trade Agreement (EVFTA) was first ratified by

the EU and then by the National Assembly of Vietnam, in the midst of the
Covid-19 pandemic. After the completed ratification, the EVFTA entered into
force on 1st of August 2020. This historical agreement brings hope and new
growth opportunities to both parties of the agreement. Once fully implemented
it will contribute to economic recovery in a post-COVID world.
The EVFTA is a new generation FTA between Vietnam and the
European Union. It is a comprehensive and high-quality agreement that ensures
balanced benefits for both Vietnam and the EU, with consideration for the
differences in development levels between the two sides. Upon entering into
force, the EVFTA is expected to be a huge boost to Vietnam's exports, helping
to diversify markets and exports, particularly agricultural and aquatic products
as well as Vietnamese products with competitive advantages.
The EVFTA is a win-win trade deal with balanced benefits for both
Vietnam and the EU which complies with the provisions of the World Trade
Organization (WTO). The agreement includes 17 chapters, two protocols and
 several attached memorandums, with main contents covering the following
aspects.The EVFTA also covers other aspects including rules of origin, customs
and trade facilitation, sanitary and phytosanitary measures, technical barriers to
trade, sustainable development, cooperation and capacity building, and legal-
institutional issues.
The ratification of the EVFTA marks a significant progress in the
relations between Vietnam and the EU while continuing to affirm Vietnam’s
important role and geo-political position in the region and the world. They are
expected to forge a solid foundation for investment and trade opportunities
between the two sides.

2. The EVFTA: Key milestones

https://documents1.worldbank.org/curated/en/866871589557725251/pdf/Vietnam-
Deepening-International-Integration-and-Implementing-the-EVFTA.pdf

 October 2010: Vietnam’s Prime Minister and the EU President agreed to

launch EVFTA negotiations.
 June 2012: Vietnam’s Minister of Industry and Trade and the EU Trade
Commissioner announced the launch of EVFTA negotiations.
 December 2015: End of negotiations and start of legal review to prepare for
the agreement signing.
 June 2017: Completion of legal review at the technical level.
 September 2017: The EU officially asked Vietnam to separate the content of
investment protection and the dispute settlement mechanism (investor-state
dispute solutions) between the state and investors from the EVFTA. Under this
proposal, the EVFTA will be separated into two agreements:
- The Free Trade Agreement, which covers all of the current EVFTA;
 - The Investment Protection Agreement (IPA), which covers investment
protection and investment dispute settlement. This Investment Protection
Agreement must be ratified by both the European Parliament and Member
States’ Parliaments before it can be implemented.
 June 2018: Vietnam and the EU officially agreed to separate the EVFTA into
two agreements: the Vietnam-European Union Free Trade Agreement (EVFTA)
and the Investment Protection Agreement (EVIPA).
 August 2018: Legal review of the EVIPA completed.
 October 17, 2018: The European Commission officially adopted the EVFTA
and EVIPA.
 June 25, 2019: Council of Europe approved for signature.
 June 30, 2019: Signing ceremony of the EVFTA and EVIPA in Hanoi.
 January 21, 2020: The International Trade Commission of the European
Parliament voted in favor of ratifying the EVFTA.
February 12, 2020: The European Parliament ratified the EVFTA and the EVIPA.
 Vietnam’s National Assembly is expected to ratify the EVFTA and EVIPA in
its coming session in May 2020.
 The EVTFA will come into force one month after formal ratification by the
EU and Vietnam, while the EVIPA will require additional ratification by the
parliaments of individual EU Member States.