The European Union and Vietnam ha signed a Trade Agreement and an Investment Protection Agreement, which includes tariff reduction for almost 99% of products.

The EU-Vietnam Free Trade Agreement (EVFTA) has been called the “most ambitious one ever” and removes tariffs for almost all goods, with some quotas for agricultural products. The deal also allows foreign investment for public services including the postal, banking and maritime sectors.

Vietnam is the EU’s 16th trade in goods partner and the EU’s second largest trading partner in the Association of Southeast Asian Nations (ASEAN).

The EU’s main exports to Vietnam are high tech products, including electrical machinery and equipment, aircraft, vehicles, and pharmaceutical products.

Vietnam’s main exports to the EU are telephone sets, electronic products, footwear, textiles and clothing, coffee, rice, seafood, and furniture.

The trade deal is estimated to increase EU exports to Vietnam by 15%, and Vietnamese exports to the EU by 20% in 2020.

The EVFTA is expected to increase Vietnam’s GDP within the range of 2.18%-3.25% every year until 2023.