Singapore is the only other country in Southeast Asia that has a free-trade agreement with the EU. The news agency quoted Michael Sieburg, a partner of YCP Solidiance, a corporate strategy consulting firm focusing on Asia, as saying that EVFTA will add to the positive momentum drawing manufacturing to Vietnam. “Manufacturers looking to locate in the region and seeking a more competitive access to EU markets will be more inclined to shift manufacturing to Vietnam as a result of EVFTA,” he said. The European Chamber of Commerce in Vietnam says the EVFTA is of great importance since trade disputes and the COVID-19 pandemic are breaking down normal trade activities at an unprecedented scale.

Former Head of the EU delegation to Vietnam Bruno Angelet said the deal marks a new beginning in the sustainable and flourishing relations between EU members and Vietnam during the last 3 decades. During that period, Vietnam achieved remarkable economic growth. Britain’s Express.co.uk covers details of the deal and its impacts on Vietnam and EU partners. It says Vietnam will now have a transition period of up to 10 years for some of their imports, such as cars.

The deal will increase access to Vietnam’s services, including postage, banking and shipping and public procurement markets.