During a working session between MOIT Minister Tran Tuan Anh and EU Commissioner for Trade Cecilia Malmstrom in Brussels, Belgium on June 25, the two sides formally concluded the entire legal review of the EVFTA, while finishing discussions on a Vietnam-EU IPA.
They agreed to promptly make a proposal to the authorised agencies of both sides for the official signing and ratification of these two deals.
The legal review for the EVFTA started after negotiations concluded on December 2, 2015. However, the EU changed its regulations on the process of approving FTAs, with the division of contents related to investment protection and investor-state dispute settlement (ISDS) into a separate deal called IPA.
Following active discussions, both sides formally concluded the legal review of the EVFTA and reached consensus on all of the contents of the IPA separated from the previous EVFTA. In the time ahead, these two agreements will be submitted to the authorised bodies for signing and ratification in line with the two sides’ legal procedures.
During the working session, the two sides discussed cooperation plans in the future to ensure the best conditions for the development of their bilateral economic and trade partnership, with the EU supporting Vietnam in enhancing capacity to optimise the deal after it is signed and implemented. The support framework will help Vietnam to continue building its legal system, assist the implementation of its commitments in the FTA, and increase the competitiveness of small and medium-sized enterprises, towards the ultimate goal of facilitating a win-win trade and investment collaboration.
The EU is currently the third largest trading partner of Vietnam and one of the two largest export markets for the country. Two-way trade has increased more than 12-fold, from US$4.1 billion in 2000 to US$50.4 billion in 2017, of which, Vietnam’s exports to the EU increased 13.6 times (from US$ 2.8 billion to US$38.3 billion) and its imports increased 9 times (from US$1.3 billion to US$12.3 billion). Vietnam’s major exports to the EU are footwear, garments and textiles, coffee, wood items, and seafood.
The EU is also a big investor in Vietnam. As of 2017, 24 of the 28 EU countries had made investments in the Southeast Asian nation with about 2000 projects in force, worth a total of US$21.5 billion.
