On February 12 the European Parliament (EP) has ratified the European Union Vietnam Free Trade Agreement (EVFTA), with 401 votes in favour (192 against and 40 abstentions). The next step before the agreement can come into force is its ratification by the National Assembly of Vietnam which is expected in May 2020. We are now only one step away from the real and concrete implementation of this agreement.
As a reminder and for those who have not yet heard about this agreement, the EVFTA is an ambitious pact providing almost 99 percent of elimination of custom duties between the EU and Vietnam, within the next 10 years. As per the Ministry of Planning and Investment, the FTA is expected to help increase Vietnam’s GDP by 4.6 percent and its exports to the EU by 42.7 percent by 2025. While the European Commission has forecasted that the EU’s GDP would increase by US$29.5 billion by 2035.
This agreement is undoubtedly one of the most modern and ambitious agreement ever concluded between the EU and a developing country. As mentioned above, the elimination of custom duties on different type of products will be progressive.
French People Design, based in Vietnam, will stay tuned and will update you as early as possible on the first textile products to benefit from that 0% tax rate!
You are working in the textile industry and are interested about production in Vietnam? Contact us! French People Design provides Design, Sourcing, Technical Advice & Manufacturing Solutions forJACKETS + OUTERWEAR.