June 08, 2020 | 20:13 (GMT+7)
EVFTA to boost Vietnam’s economy: Japan’s newspaper
Hopes are growing that the EU-Vietnam Free Trade Agreement, which was approved by Vietnam’s National Assembly on June 8, will give a much-needed boost to Vietnam's economy, according to Japan’s Nikkei Asia Review.
The trade deal has already been ratified by the EU, making Vietnam the second Southeast Asian nation to have such a trade treaty with the European bloc after Singapore.
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Workers piece together clothes at a factory in Ho Chi Minh City. |
The newspaper said it is good news for multinational manufacturers outside EU as well, adding that along Japanese enterprises, apparel companies and machinery parts look to increase shipments from Vietnam to Europe.
Once the agreement takes effect, expectedly in early August, 71 percent of exports from Vietnam to the EU will become duty-free, as will 65 percent of EU shipments to Vietnam. The remaining tariffs up to 99 percent will be phased out by Vietnam over 10 years, according to the newspaper.
Particularly strong growth is expected for apparel and footwear, which account for roughly 20 percent of Vietnam's total exports, it added.
Source: VNA