What is the EVFTA and when did it start?
- 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.
The European Union – Vietnam Free Trade Agreement (EVFTA) is a comprehensive trade pact between Vietnam and the 27 member states of the European Union. Officially launched in 2012, the negotiation process for this ambitious agreement lasted nearly 8 years, culminating in its signing on June 30, 2019, in Hanoi, and coming into force on August 1, 2020. This new-generation FTA was negotiated in parallel with the EU–Vietnam Investment Protection Agreement (EVIPA), aiming to provide Vietnam with significant access to the EU’s vast market, encourage institutional reforms, and diversify global supply chains.
What does the EVFTA cover and what are its main benefits?
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.
Where can I find official EVFTA documents and guidelines?
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/
