Opportunities the Freshly-inked EU-Vietnam Free Trade Agreement will Provide

The EU-Vietnam Free Trade Agreement, or EVFTA, was finalized after years of negotiation late this past June. This is believed to be the start of an extremely beneficial chapter for all parties involved, especially Austria, who has staunchly supported this agreement from the start.

EU-ASEAN Connections

Vietnam is the second country to have a free trade agreement with the EU, after a similar agreement being struck with Singapore earlier this year. The EVFTA will eliminate 99 percent of tariffs, with 65 percent of the duties on EU exports to Vietnam disappearing straightaway. Over a period of the next ten years, the remainder will be phased out. For Vietnamese exports to the EU, 71 percent of the duties will be eliminated immediately, and the rest will be phased out over seven years.

Benefits for Austria-Vietnam Connection

Over recent decades, Austrian exports to Vietnam have vastly increased. They are now five times higher than they were ten years ago. Compared to 20 years ago, they are 20 times higher. In 2017, a record high of €252 million ($280.6 million) was spent on exports, an increase of over 41 percent. This free trade agreement makes Vietnam an ideal location for contract manufacturing. It has become an essential source for electronics, mechanical parts, and consumer products such as textiles and shoes.

Future for EU and Vietnamese SMEs

If ratified by the EU parliament, the EVFTA can provide many benefits for large companies in Austria and the rest of the EU. However, it also can provide SMEs with the opportunity to enter into the trade business. This is where Export Portal can help: our international B2B trade platform has everything a fledgling SME needs to join the global trade world.

Learn more about what Export Portal can offer SMEs and all members of international trade, and register on our platform today.