Workers of Southern Food Company in HCM City
load rice onto a boat for export. The EU will
set aside large quotas for VN's unprocessed rice
and fragrant rice. - VNA/VNS Photo
HA NOI (VNS) - After the Free Trade Agreement between EU and
Viet Nam (EVFTA) comes into effect, the EU will eliminate 86
per cent of tariff lines or 70.3 per cent of Vietnamese
export to the EU, according to the Ministry of Industry and
The Ministry announced on Saturday that after almost three
years and 14 official rounds of talks and many mid-term
negotiations between ministers, heads of delegations and
technical groups, Viet Nam and the EU have reached an
agreement on all basic points of the EVFTA.
Seven years after the agreement takes effect, the EU will
eliminate 99.2 per cent of tariff lines for Viet Nam,
equivalent to 99.7 per cent of Vietnamese export turnover
with the remainder of export turnover enjoying zero-duty
tariff rate quotas.
The EU will also eliminate duties on garment, textile and
footwear excluding canned tuna over a seven-year period.
The EU will set aside large quotas for Vietnamese
unprocessed rice and fragrant rice. Rice imported to the EU
under this quota will enjoy duty free classification. The
products made from rice will gradually become fully
liberalised within seven years.
Vice-versa, almost all EU exports of machinery and
appliances will be fully liberalised at entry once the pact
comes into force and the rest after five years.
Motorcycles with engines larger than 150 cc will be
liberalised after seven years and cars after 10 years,
except those with large engines (>3000cc for petrol, >
2500cc for diesel) which will be liberalised one year
Car parts will be duty free after seven years. Roughly half
of EU pharmaceutical exports will be duty free at entry into
force and the rest after seven years.
Entire EU textile fabric exports will be liberalised at
entry into force.
Close to 70 per cent of EU chemicals' export will be duty
free at entry into force and the rest after three, five and
Viet Nam will also open its market for most EU food
products, both primary and processed, allowing EU high
quality exports to reach its growing middle class consumers.
The EU is currently the second biggest trade partner and one
of the two largest export markets of Viet Nam.
Twenty-three of 28 EU member nations had invested in Viet
Nam by the end of 2014 with over 2,000 valid projects worth
more than $37 billion. The EU investments are there in
almost all important economic sectors of Viet Nam. - VNS
( Vietnam News)