Vietnam has ratified a free trade agreement with the European Union, that will cut or eliminate 99% of tariffs on goods traded between the signatories, boosting Vietnam’s GDP and exports by up to 2.4% and 12% by 2030.

Vietnam is the EU’s second-biggest trading partner in Southeast Asia. In 2019, trade volume reached US$56 billion, while foreign investment recorded 10-year high, worth more than US$38 billion.

Starting from June, the EU removes 85% of its tariffs of Vietnam-made goods. All duties are planned to be lifted in the next seven years. Under the EVFTA deal, Vietnam drops EU import tax for 50% of its EU import and the rest to be implemented in the next ten years.

Vietnam, a country of 95 million people, has gone through more than 30 years of economic reform to become a global manufacturing powerhouse.

In recent years, the country targets high-tech companies with good corporate governance to form a partnership, aiming to be one of the world’s factories.