International Economics 23/10/2023

The EU - Vietnam

Free Trade
Agreement
(EVFTA)
Group 4
 Table of content
01 02 02
Introduction Description
01

03 04
03 04
Position Impacts
 01

04
01
Introduction
 Group 4

01 04
Nguyễn Thị Minh Trang Giáp Tân Định

02 05
Lâm Quang Huy Võ Ngọc Thúy An

03 06
Vũ Thanh Bình Trần Hoàng Dương
02

02
Description
01
The EU-Vietnam Free
Trade Agreement
(EVFTA) is a new-
generation FTA between
Vietnam and the 27 EU
member states.

02
The EVFTA Agreement
officially takes effect from
August 1, 2020, opening up
great opportunities and
prospects.
 04
The agreements will
provide opportunities to
increase trade and
support jobs and growth
on both sides.

03
The EVFTA, along with the
CPTPP, are two FTAs with a wide
range of commitments,
the highest level of commitment of
Vietnam so far.
 03
04
03
Position
 Organizational structure

02
Since failing to negotiate
an EU–ASEAN trade agreement, EU
and Vietnam turned to extensive
bilateral negotiations to reach a trade
deal of their own.

01
This is the most
comprehensive and ambitious
EU trade agreement with a
developing country.
 Level of Economic Intergration

02
The EVFTA also opens
Vietnam's services market to
EU companies and strengthens
protection of EU investments
in Vietnam.

01
The EVFTA belongs to the free
trade area level when it almost
completely eliminates tariffs up to
more than 99% of customs duties
on goods
 04
04
04
Impacts
Economic growth

01
If commitments on tariff and non-tariff reductions are
thoroughly implemented, reasonably combined with some
elements, Vietnam's economic growth will improve in both
the short, medium and long term.

02
The EVFTA Agreement is expected to contribute to an average
increase in GDP from 2.18 to 3.25% (for the first 5 years of
implementation), 4.57-5.30% (for the next 5 years) and 7.07-
7.72% (for the following 5-year period).
 Trade (import & export)

01 02 03
EVFTA also helps This offers vast
Commits to open the market for opportunities for
Vietnam access the EU
more than 99% of tax lines and Vietnamese industries to
market, one of the
trade turnover, with a tax rate of expand and develop their
largest consumer
0% applied to export items in businesses
markets in the world.
which both sides have strengths.
 Foreign investment capital FDI

Tariff reductions The total reduction export

under the EVFTA 01 02 and import taxes: VND
2,537.3 billion.

State budget revenues Promotes vertical FDI as EU

increased due to domestic 03 04 partners can find efficiency and
revenues. resources when investing in
Vietnam.

FDI flows move to Businesses are able to receive

countries where consumers have 05 06 a higher return and generate
high income and purchase higher profit.
strongly
International trade

The EVFTA will be Vietnam’s next big

01 step in international economic integration
since joining WTO.

It will serve as a catalyst for institutional

02 reforms, economic growth and social
development.

The deal will drive Vietnamese exports

03 and help the country to diversify its
international markets.
Thank you for listening!