The EVIPA was passed with 407 votes for, 188 against and 53 abstentions; and the EVFTA, with 401, 192 and 40, respectively.
At a press conference on this event held by the Ministry of Industry and Trade in Hanoi the same day, Minister of Industry and Trade Tran Tuan Anh said: "This is a meaningful result for Vietnam and the EU, two comprehensive strategic partners.”
The ratification of these two agreements has created a sustainable foundation for the two sides to improve quality in comprehensive cooperation, he said.
It has also shown the EU values Vietnam as a comprehensive and trustworthy partner in Southeast Asia and the world over, the minister said.
He described the European Union – Vietnam Free Trade Agreement (EVFTA) as a lever for growth, opening up opportunities to infiltrate into a market with a gross domestic product of US$18 trillion.
Nearly 100 per cent of Vietnam 's goods to the EU will see their import tariffs eliminated in the short term. This is the highest level of commitment that a partner has given to Vietnam in signed free trade agreements, he said.
Meanwhile, the two agreements are expected to be ratified in the upcoming session of the Vietnam 's Nation Assembly in April-May. They are likely to come into effect from July this year in Vietnam , he said.
The EVFTA is expected to create a major push for Vietnam ’s exports, helping diversify the country’s exports and markets.
Under the agreement, Vietnam will cut 65 per cent of import tax on EU commodities after the deal takes effect, while the rest will be erased over a 10-year period. Meanwhile, the EU will cut more than 70 per cent of tariffs on Vietnam ’s commodities after the deal takes effect, while the rest will be abolished over the seven subsequent years.
The two documents were signed in Hanoi on June 30 last year after eight years of negotiation. They include intensive, extensive and comprehensive commitments covering the fields of economy, trade, investment and sustainable development issues.
According to research by the Ministry of Planning and Investment, the two deals will help Vietnam increase its GDP by 4.6 per cent and its exports to the EU by 42.7 per cent by 2025. Meanwhile, the European Commission has projected the EU’s GDP to increase by $29.5 billion and its exports to Vietnam by 29 per cent by 2035.
The investment commitments will replace bilateral investment agreements between Vietnam and EU members, helping the country continue to reform its economic structure, perfect business environment and institutions, and facilitate EU investors’ business in Vietnam .