1st August 2020 is a date that will go down as a memorable day in the commercial relationship between the European Union (“EU”) and Vietnam.
It marks the entry into force of the Free Trade Agreement signed between European Union and Vietnam on 30 June 2019 (“EVFTA”), which followed more than ten years of negotiation.
From today, 65% of EU exports to Vietnam are duty-free, while 71% of European duties applied on Vietnamese exports to the EU have been eliminated.
The Ministry of Industry and Trade already issued a Circular 11/2020/TT-BCT setting out rules of origin of EU products for the application of the special preferential import duties rates as set by the EVFTA.
In the long term, it is planned that nearly 99% of customs duties will be progressively eliminated between Vietnam and the EU by the end of a ten-year period.
Without any doubt, the EVFTA will have a significant impact on European goods imports into the Vietnamese market and will also reinforce the competitiveness of EU companies and vice-versa.
Audier & Partners addresses the key points of the EVFTA, with a specific focus on Vietnamese customs duties.
You can download the A&P article by following this link: Article EVFTA_August 20
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