The free trade pact, the first of its kind between Vietnam and the European Union, is said to open an expressway connecting Vietnam with the 27 economies within the bloc.
It is also a new generation FTA, the second-highest set of standards Vietnam has signed, with commitments covering various fields, with a stronger degree of liberalization and a higher level of commitment than most of Vietnam’s other FTAs.
The pact has played a key role in sending Vietnamese agro-fishery products to the European market.
Tariffs were slashed to 0% for other farm produce such as tea and coffee. Meanwhile, 86.3% of tariff lines came down to 0% for Vietnamese cinnamon, pepper, cashew nuts, and fruit in August 2020.
Vietnam has continually opened its door to European products. However, Vietnamese enterprises should make significant adjustments as the EU has stricter requirements on commodity quality, sustainability, and safety.
Some 76% of Vietnamese enterprises believe that FTAs will have a critical impact on their business prospects. Without immediate preparations, Vietnam could easily miss the opportunities that free trade pacts bring, as there is competition not only for market access but also in meeting strict standards.
Source: Vietnam Plus