Approximately 99% of tariff barriers Vietnamese firms face will be removed when entering the EU market. Products such as textiles, footwear, aquaculture and fish and wood products are expected to benefit from the abolition of tariffs.
Meanwhile, European countries would have more advantages in terms of investment opportunities, machinery sales and services in Vietnam’s 90 million-person market.
The EU is currently Vietnam’s second largest trade partner. Thanks to this agreement, it is estimated that Vietnam’s exports could increase by 10% in 2025.
Apart from commercial benefits, the FTA will enable enterprises, especially, small and medium sized firms to invest in Vietnam’s support industry sector which is considered to be a major weakness in Vietnam’s industrial production. This is also expected to help Vietnam become a production-based country and transit hub for the region.
