Question:
What is the significance of the EVFTA Agreement in the current international trade context?
Answer:
In the context of increasing international trade tensions, coupled with the resurgence of protectionism, which threatens the stable development of the world economy and regions, the European Parliament’s approval of the EVFTA Agreement has significant implications on multiple fronts, particularly in two key aspects:
1. In terms of political, national security, and foreign policy:
– In the current complex international landscape and amid internal challenges within the EU itself, such as the rise of populism and trade protectionism, the EVFTA Agreement demonstrates the strong determination of both parties to promote bilateral relations, contributing to the comprehensive and substantive development of Vietnam-EU relations. The signing and ratification of the EVFTA align with Vietnam’s foreign policy of multilateralism and diversification of international relationships. It signifies Vietnam’s commitment to deepening relations with major partners, including the EU, and enhances engagement for mutual strategic interests. This can help maintain a peaceful international environment and elevate Vietnam’s international position while benefiting from the EU’s support in achieving various economic, social, political, and diplomatic goals.
– From a multilateral perspective, with Vietnam set to assume the ASEAN Chairmanship in 2020, the EVFTA enhances Vietnam’s role and position within EU-ASEAN relations, setting a precedent for future free trade agreements between ASEAN and the EU.
– As the first developing country in the Asia-Pacific region to have an FTA with the EU, Vietnam’s elevated status reinforces its significance regionally and globally. Particularly, in a rapidly changing and complex global political and security environment, the EVFTA empowers Vietnam to enhance its resilience and international position.
2. In terms of economic development:
The EVFTA is considered a growth catalyst. When the EVFTA officially comes into effect, it is expected to boost two-way trade and EU investment in Vietnam significantly, positively contributing to economic growth and job creation. The FTA enables Vietnam to strengthen its economic foundation to better respond to unfavorable regional and global developments. Presently, the EU is one of Vietnam’s largest export markets, with exports reaching USD 41.48 billion and imports totaling USD 14.91 billion in 2019. Therefore, the agreement will provide opportunities for Vietnam to expand its exports, diversify markets, and capture higher added value by establishing new supply chains.
