European Parliament Ratifies Historic Free Trade Agreement with Vietnam
On February 12th, 2020, The European Parliament officially gave its consent to ratification of the EU-Vietnam Free Trade Agreement (EVFTA) and EU-Vietnam Investment Protection Agreement (EVIPA). In a historic vote in Strasbourg, Members of the European Parliament (MEPs) voted in favour of these agreements.
EuroCham Vice Chairman and Mazars Vietnam Tax & Business Advisory Partner Nguyen Hai Minh joining the early advocacy conference of EVFTA in Brussels, Belgium
A DECADE OF WORK
The EVFTA was initiated and negotiated as long ago as 2012 and officially signed in Vietnam on June 30th, 2019. On February 12th, 2020, the voting session regarding these agreements concluded with around 63% members of the EU Parliament voted in favour of both the EVFTA and the EVIPA. This is the next landmark free trade agreement after The EU already had free trade deals with fellow ASEAN members - Singapore, Japan and South Korea.
EuroCham Vice Chairman and Mazars Vietnam Tax & Business Advisory Partner Nguyen Hai Minh participating at the signing ceremony of EVFTA in Hanoi, Vietnam on June 30th, 2019
The next and final step before the EVFTA can enter into force is a vote in the National Assembly of Vietnam, which is expected to vote on the trade pact in May. Once it takes effects, the EVFTA will begin to phase out almost 99 per cent of tariff lines and barriers to trade. Tariffs on two-thirds (65 per cent) of EU exports and 71 per cent of Vietnamese exports will be eliminated the moment it enters into force, with the rest being phased out over a decade-long implementation period. According to a study by the Ministry of Planning and Investment, the EVFTA and EVIPA are expected to increase Vietnam's GDP by 4.6 per cent and exports to the EU by 42.7 per cent by 2025. The EVFTA also includes important provisions on environmental protection and labour rights, ensuring that Vietnam’s economic growth does not come at the cost of its natural heritage or its standards at work.
MAZARS VIETNAM’S CONTRIBUTION TO THE EVFTA PROCESS
Mazars is proud to be part of the success of this ratification. Mr. Minh Nguyen – Mazars Partner and also Vice-Chairman of the European Chamber of Commerce in Vietnam has actively involved in various activities to promote the EVFTA, both in Vietnam and in Europe. With his legal background and in-depth knowledge of the free trade agreement, Minh has participated and spoken in various events toward the business communities about the benefits of the trade deal, and worked with the European Commissioners as well as Members of the European Parliament to push for signing and ratification of the agreement. Let’s find out more about Mr. Minh’s opinions on these remarkable activities here:
The dialogue format is potentially kept to be very interactive so that it is not a one-way presentation but an opportunity for the participants to share their questions or comments with us on tax, transfer pricing, licensing, labour, insurance and other related issues.
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