How will Vietnam benefit from the new EU free trade agreement?

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Vietnam is set to gain significant economic advantages from the new EU free trade agreement.

The agreement will substantially liberalise trade between the European Union and Vietnam, with a near-complete elimination of tariffs and a structured approach to market access for sensitive Vietnamese products. This pact represents a landmark trade deal for the EU, particularly with a developing nation, and underscores a broader shift in the EU's trade policy towards incorporating labour and social standards.
Elimination of Tariffs and Market Access

The free trade agreement is designed to remove 99 per cent of tariffs on goods traded between the EU and Vietnam. While most tariffs will be abolished promptly, Vietnam has secured transition periods of up to 10 years for the import of certain products, including cars and beer, allowing its domestic industries time to adjust to increased competition.
Key Beneficiary Industries Identified

Specific Vietnamese sectors are anticipated to experience the most substantial positive impact from this agreement. The garment, footwear, and wood furniture industries have been identified as the chief beneficiaries, poised to gain greater access to the lucrative EU market.
Comprehensive Nature of the Agreement

This trade pact stands out as the EU's most comprehensive free trade agreement with a developing country to date. It also marks the second such significant accord the EU has concluded with a member of the Association of Southeast Asian Nations (Asean), following the earlier agreement with Singapore.
Labour Rights and Reform Monitoring

The European Union has highlighted Vietnam's efforts to improve its labour rights record as a key factor in reaching this agreement. EU trade commissioner Phil Hogan indicated that the new partnership will enhance the EU's capacity to promote and monitor ongoing reforms within Vietnam, suggesting a conditionality tied to the agreement's implementation.

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How will Vietnam benefit from the new EU free trade agreement?

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