Under the agreement, Vietnam will cut 65 per cent of import tax on EU commodities after the deal takes effect, while the rest will be erased over a 10-year period. Meanwhile, the EU will cut more than 70 per cent of tariffs on Vietnam’s commodities after the deal takes effect, while the rest will be abolished over the seven. subsequent years.
According to a research by the Ministry of Planning and Investment, the two deals will help Vietnam increase its GDP by 4.6 percent and its exports to the EU by 42.7 percent by 2025. Meanwhile, the European Commission has projected the EU’s GDP to increase by 29.5 billion USD and its exports to Vietnam by 29% by 2035.
The two agreements are expected to be ratified in the upcoming session of the Vietnam’s Nation Assembly in April-May. They are likely to come into effect from July this year in Vietnam./.