A New Chapter in the EU-Vietnam Trade Relations

Analysing the EU’s trade with Vietnam, it can be without problems deduced that there was a symbiotic dating between the two. The EU exports high-tech merchandise which includes machinery, aircraft and pharmaceutical merchandise to Vietnam, and Vietnam exports a huge variety of agricultural and manufacturing products to the EU, inclusive of textiles and garments, footwear, espresso and seafood. Beyond this, Vietnam is likewise becoming increasingly appealing with its competitive wages-a key selling point for the labour-in depth industries like textiles.

As in step with the facts, the 2-way change cost between the EU and Vietnam have accelerated from US $6.Three billion in 2003 to US $forty one.2 billion in 2015. The EU is not only one in every of Vietnam’s key exchange companions, however also a key investor, having committing US$1.9 billion in FDI all through 2015 by myself.

On a nearby level, Vietnam has climbed to come to be EU’s 2nd maximum vital buying and selling associate amongst all ASEAN contributors, surpassing the nearby rivals such as Indonesia and Thailand in the recent years.

Both Vietnam and the EU have charted out industries for a persisted growth for EVFTA at its core and targets to liberalise both tariffs and non-tariff boundaries for key imports on each facets over a duration of 10 years. Among the important thing industries, fabric nevertheless plays a vital role in Vietnam’s financial system. Both have an articulated time frame by way of which they have got committed to liberalise all tariffs. One of the main commitments is a 7-12 months timeline for Vietnam’s fabric and shoes merchandise, which the EU has agreed to. As a massive proportion of Vietnam’s exports to the EU are patron goods including garb, fabric and footwear, the FTA could open a floodgate for a larger volume of these products coming from Vietnam to the EU. The tariff liberalisation over the direction of 7 years will allow for a sizeable expansion of these labour-in depth industries.