The free trade agreement between the European Union and Vietnam, in force since 1 August 2020, strengthens bilateral relations and represents a strategic step in economic cooperation within the regional context, facilitating the entry of European companies into the countries of ASEAN.
It is the most ambitious agreement concluded by the EU with an emerging country and constitutes a significant opportunity for Italian companies interested in trade with Vietnam. The agreement eliminates almost all customs duties and export tariffs, both for goods and for services. It also includes provisions aimed at facilitating trade, modernizing and simplifying import/export procedures, and reducing non-tariff barriers to bilateral commerce.
Vietnam also guarantees the proper use of product origin indications, a considerable advantage for the “Made in Italy” brand, which is thus better protected against fraudulent competition at both local and international levels. The agreement protects 169 European Geographical Indications, 38 of which are Italian. Another important aspect is the possibility for European companies to participate in public tenders for infrastructure development projects in the country.
The agreement significantly increases trade between the EU and Vietnam: according to European Commission analyses, European exports to Vietnam show an estimated increase of 29%, while Vietnamese exports to the EU rise by 18%. Although more difficult to quantify, the benefits deriving from stronger economic ties with Vietnam and, more broadly, with the ASEAN region are also substantial. The region is characterized by strong economic potential and highly efficient production chains. Increased foreign direct investment and deeper bilateral trade in goods and services foster greater integration between Southeast Asian production networks and the European market.
Overall, the agreement contributes to creating a more predictable and stable trading environment, offering concrete opportunities for European and Italian companies. Vietnam is undergoing a gradual process of economic liberalization and confirms its position as one of the most dynamic economies in the region, as well as a strategic gateway for developing commercial relations with other countries in the area.
For further information and insights:
– Access2Markets: EU information portal
– EU Guidance on Rules of Origin
– Guida alla tutela della proprieta’ intellettuale ICE
– Workshop on Work Permits for Foreign Service Providers, Workers and other Business People in Vietnam