The free trade agreement between Vietnam and the EU is on its way
On February the 1st 2016, the text of ET-Vietnam Free Trade Agreement was published, following the announcement of the conclusion of the negotiations. The Commission will present a proposal to the Council of Ministers in order to reach an approval of the agreement and ratification by the European Parliament. The agreement should enter into force in early 2018.
What is EVFTA?
Reduced or free of Import Duty, when buying Textile products, which are produced in Vietnam with fabric from Vietnam, Korea or the EU.
When will EVFTA start?
It will start first half of 2018. Starting day = Arrival date of the goods in the EU
- Duty will be determined by the HS Code of the product.
- Each HS Code has been classified in the following categories:
A= Immediately Free / 0%
B3 = shall be removed in 4 equal annual stages / 3% reduction p.a.
B5 = shall be removed in 6 equal annual stages / 2% reduction p.a.
B7 = shall be removed in 8 equal annual stages / 1,5% reduction p.a.
Note: Vietnam already has GSP Form A for local material products. The rate of 9.6% will continue to apply as long as it is lower than the rate under the FTA.