1. General Information
- Full name: European Union – Vietnam Free Trade Agreement
- Abbreviation: EVFTA
- Members: Vietnam and 27 member states of the European Union (EU).
- Date of Signing: June 30, 2019 (in Hanoi).
- Date of Entry into Force: August 1, 2020.
Background and Rationale for the FTA
Negotiation Background: The negotiation process of the EVFTA lasted nearly 8 years, officially launched in 2012. It is a comprehensive and ambitious agreement, negotiated in parallel with the EU–Vietnam Investment Protection Agreement (EVIPA).
Rationale for Formation:
- Access to a Major Market: The EU is one of the world’s largest markets, with a GDP of around USD 15.6 trillion (2023) and over 447 million consumers. The agreement gives Vietnam a significant competitive advantage compared to countries that do not have an FTA with the EU.
- Institutional Reform and Modernisation: The EVFTA is a new-generation FTA, with deep and high-standard commitments covering labour, environment, intellectual property, and government procurement. Its implementation encourages Vietnam to continue institutional reforms, improve its legal framework, and enhance transparency in the business environment.
- Diversification of Supply Chains: The FTA helps Vietnam diversify export markets, reduce dependency on traditional markets, and become a more attractive link in global supply chains.
2. Scope and Key Commitments
The EVFTA is a comprehensive agreement, consisting of 17 Chapters, 2 Protocols, and several joint declarations.
| Chapter | Chapter Title (Vietnamese) | Main Content |
|---|---|---|
| 1 | Objectives and General Provisions | Scope; objectives; and relationship with other agreements. |
| 2 | National Treatment and Market Access for Goods | Elimination of 99% of tariffs on goods. |
| 3 | Trade Remedies | Rules on anti-dumping; countervailing; and bilateral safeguard measures. |
| 4 | Customs and Trade Facilitation | Simplification and transparency of customs procedures. |
| 5 | Technical Barriers to Trade (TBT) | Reduction of unnecessary technical barriers. |
| 6 | Sanitary and Phytosanitary Measures (SPS) | Ensuring food safety and protection of human; animal; and plant health. |
| 7 | Non-Tariff Barriers to Investment and Trade | Elimination of unjustified non-tariff barriers. |
| 8 | Trade in Services; Investment; and E-Commerce | Market access commitments in services (legal; financial; postal) and investment protection. |
| 9 | Government Procurement | Opening government procurement markets to fair and transparent competition. |
| 10 | Intellectual Property | Protection of intellectual property rights; including Geographical Indications (GI). |
| 11 | Competition | Rules on competition policy and subsidy control. |
| 12 | State-Owned Enterprises and Enterprises Granted Special Rights | Ensuring a level playing field between SOEs and private firms. |
| 13 | Trade and Sustainable Development | Commitments on labor standards (ILO) and environmental protection. |
| 14 | Transparency | Ensuring transparency in law-making and administrative regulations. |
| 15 | Dispute Settlement | Mechanisms for resolving disputes between the two parties. |
| 16 | Institutional; General; and Final Provisions | Institutional framework and general provisions. |
| 17 | Exceptions | General and specific exceptions (e.g.; national security). |
Key Commitments
Tariffs:
- The EU commits to eliminating import duties on 85.6% of tariff lines immediately upon the Agreement’s entry into force, and 99% after 7 years.
- Vietnam commits to eliminating 48.5% of tariff lines upon entry into force, and 99% after 10 years.
Rules of Origin: The Agreement applies strict but flexible rules of origin, with a pilot and expanding self-certification mechanism.
Geographical Indications (GI): The EU protects 169 Vietnamese GIs, while Vietnam protects 39 EU GIs — a significant benefit for Vietnam’s signature agricultural products.
3. Reference Documents and Official Sources
Full Text of the FTA
Vietnam FTA Portal (Ministry of Industry and Trade – MOIT): The official and most reliable government source.
- Full text of the EVFTA (in Vietnamese and English).
- Annexes: Tariff schedules, service commitments, geographical indications.
- Website: https://vntr.moit.gov.vn/vi/fta/26/0
Implementation Guidelines and Legal Documents
Ministry of Industry and Trade (MOIT): Circulars on Rules of Origin and procedures for issuing C/O Form EUR.1 or self-certification of origin.
Ministry of Finance (General Department of Customs): Government decrees on Vietnam’s preferential import tariff schedules for implementing the EVFTA in each phase. Website: https://www.customs.gov.vn/
