On June 8, Vietnam ratified and approved the Free Trade Agreement with the EU. This is a large-scale trade agreement, since it will mean the elimination of 99% of customs duties within a maximum period of 10 years.
The entry into force of the agreement will mean the immediate elimination of 65% of tariffs on EU exports to Vietnam, and 71% of customs duties on imports from Vietnam to the EU, while the rest will be phased out.
The trade agreement between Vietnam and the EU will also eliminate some non-tariff barriers, such as the access of EU companies to public procurement in Vietnam; The protection of EU investments in the country will also be strengthened, and some products such as rice, garlic or eggs, although they will be free of tariffs, will have export limits.
Requirements to benefit from the preferential regime
Likewise, and with the entry into force of this Agreement, those exporters who want to benefit from preferential treatment with Vietnam must be registered in the REX Registry.
The REX system is a computer application that allows economic operators to self-certify the preferential origin of their merchandise. For this they must first be registered in a database maintained by the authorities of their country, becoming a registered exporter.
The Government of Vietnam is confident that this trade agreement and preferential treatment will activate trade relations with the European Union and that its exports to the EU will rise to 20% per cent in 2020 and 44% in 2030.