Implementation of the Vietnam-EU Free Trade Agreement is expected to boost Vietnam’s GDP by 2.18% to 3.25% over the next five years, Vice President Dang Thi Ngoc Thinh told legislators on Wednesday.
EVFTA allows businesses to recover (Photo- VnExpress)
During the subsequent five years, the contribution ratio to the nation’s GDP could increase to between 4.57% and 5.30%. In the third five-year period, EVFTA contribution to the country’s GDP could increase to between 7.07% and 7.72%, she said while proposing lawmakers to ratify the trade pact.
The EU, the world’s largest exporter of manufactured goods and services and the biggest export market for around 80 countries, is Vietnam’s second-largest import market globally.
Thanks to the free trade agreement, Vietnam’s products will have greater access to a market that has a population of over 500 million people, which has a GDP of $15 trillion which accounts for 22% of global GDP.
In terms of investment, EVFTA is considered an opportunity for Vietnam to attract more investors from the EU in areas such as the local manufacturing and processing industry, high technology, clean energy, renewable energy, and services.
Vietnam wants the agreement applied to the UK until the end of their respective transition period with the EU which concludes on December 31, 2020.
It will be possible to extend the implementation period with the UK to 24 months in accordance with the agreement that exists between the UK and the European Union with regard to the UK leaving the bloc, Voice of Vietnam cited Thinh at the meeting.
Source: VOV, VGP