The EU-Vietnam Free Trade Agreement (EVFTA) was signed on June 30th, 2019 and took effect on August 1st, 2020. The agreement is a landmark deal between the European Union (EU) and Vietnam, aimed at boosting trade relations and enhancing economic ties between the two countries.

As part of the agreement, Vietnam has committed to opening up its markets to European businesses and lowering tariffs on a wide range of products, including agricultural goods, pharmaceuticals, and automobiles. In return, the EU has agreed to reduce tariffs on a range of Vietnamese exports, including textiles, footwear, and seafood.

The EVFTA is expected to provide significant benefits for both the EU and Vietnam. For the EU, the agreement will help to increase its exports to Vietnam, which is a rapidly growing market with a population of nearly 100 million people. It will also provide European companies with greater access to Vietnam`s manufacturing industry, which is becoming increasingly important as a hub for global supply chains.

For Vietnam, the agreement will provide opportunities for its businesses to expand their presence in the EU market, which is the largest in the world. It will also help to attract more foreign investment into the country, providing a boost to its economy.

Since the agreement took effect, both the EU and Vietnam have been working to implement its provisions. The EU has been providing technical assistance to Vietnam to help it comply with the agreement`s requirements, such as improving food safety standards and protecting intellectual property rights. Vietnam, for its part, has been lowering tariffs on European goods and opening up its market to EU companies.

Despite the challenges posed by the COVID-19 pandemic, the implementation of the EVFTA has been progressing steadily. According to the European Commission, the agreement has already led to a significant increase in EU exports to Vietnam, particularly in the areas of machinery and equipment, chemicals, and agricultural products.

Looking ahead, the EVFTA is expected to play a key role in driving economic growth in both the EU and Vietnam. By providing new opportunities for trade and investment, it will help to strengthen the relationship between these two important trading partners and pave the way for further cooperation in the years to come.