Vietnam and EU enter into Collaborative Agreement to Improve Foreign Trade Activities for Improved GDP
Even amidst challenging conditions that have disrupted businesses in several ways, countries are fast entering into business collaborations to illustrate high potential growth across businesses.
In this light, Vietnam and EU have mutually agreed upon to undersign a trade agreement, EVFTA to ensure increased trade activities between both the countries.
The program is a highly efficient beginning that shall ensure full-fledged elimination of over 90% custom duties between the participating countries.
As opined by relevant sources such as Ministry of Planning and Investment, this new collaboration to encourage foreign trade agreement between both the countries will help in improving Vietnam’s total GDP count, pushing to a whopping 4.6% besides also improving its total export activities across the EU, scaling it up to 42.7% as early as 2025.
Additionally, European Union’s GDP is likely to witness a spike, reaching almost US$29.5 billion before 2035.
The development is a favorable step forward and has been achieved post tremendous negotiations spanning over ten years. Several expert opinions suggest that the newly undersigned trade agreement will underpin astute success for various Vietnamese industries in the likes of manufacturing and will also help the country steadily recover from the massive devastating impact of COVID-19.
Reliable sources have affirmed that the agreement will enable exclusion of over 65% duties on all EU based exports into Vietnam with immediate effect, followed by cent percent duty free trade in the coming decade.
The various businesses that come within the ambit of this new agreement comprise investment liberalization, sustainable development as well as Intellectual property rights.
The development will further help in establishing new sets of International Labor Organization protocols and the revised UN convention encompassing climate change. This is a significant leap towards maneuvering hassle-free advances in consumer goods trade.