The EU-Vietnam free trade agreement will increase Vietnam’s annual GDP growth by 0.1 percentage points and boost exports of various sectors, HSBC says.
Vietnam’s National Assembly Monday ratified the EU-Vietnam Free Trade Agreement (EVFTA) which will cut or eliminate 99 percent of tariffs on goods traded between the two sides. It is set to take effect in July.
An HSBC release said that the ratification of the trade pact “affirms Vietnam’s position among the forefront of the world’s great trading nations,” as the E.U. has a combined GDP of $15 trillion.
Two-thirds of E.U. export duties will be removed as soon as the agreement takes effect, while around 71 percent of tariffs on Vietnam’s exports to the E.U. will be eliminated immediately, with the rest following a seven to 10-year roadmap, according to the bank.