(VOVWORLD) - The European Union-Vietnam Free Trade Agreement (EVFTA), which will take effect from August 1, will trigger a flow of Foreign Direct Investment (FDI) from the European Union to Vietnam.
 Vietnam's textile industry (Photo: Do Phuong Anh/VNA) |
Vietnamese Commercial Counselor in Italy Nguyen Duc Thanh said the agreement will expand Vietnam’s access to a 450-million-people market and will help Vietnam add value to the global supply chain. Due to the COVID-19 outbreak, analysts say Vietnam's export turnover to the EU will grow just 5% in 2020.
According to Mr. Thanh, in August, when the commitments of the EVFTA officially take effect, the world economy will enter a "new normal" state. The deal will create great advantages, especially tariff advantages, for businesses in Vietnam and the EU.
Mr. Thanh said Vietnam can take advantage of the EVFTA to promote trade with Italy. Promising items include electric motors, phones and related components, honey, footwear, textiles, medicines, pharmaceuticals, machinery and spare parts, wood products, seafood, and agricultural products. The EU provides Vietnam with an export quota of 80,000 tons of rice per year.