VIETNAM AND EU SIGNED THE EVFTA

VIETNAM AND EU SIGNED THE EVFTA

On Sunday 30th June, the Prime Minister of Vietnam, H.E. Nguyen Xuan Phuc and the EU Trade Commissioner Cecilia Malmstrom, have officially signed the EU-Vietnam Free Trade Agreement (EVFTA) in Hanoi.

This historic event moves the EVFTA one step closer to ratification, ahead of a crucial vote in the European Parliament. Once the agreement enters into force, probably in the first quarter of 2020, it will set in train a gradual elimination of almost all tariffs on goods traded between the EU and Vietnam, opening up new opportunities for investors and consumers on both sides.

While the agreement will benefit companies of all sizes and in all industries, those selling textiles, swimwear and sportswear goods will be some of the biggest beneficiaries of tariff elimination and more open markets. HYK&D in particular is expected to enjoy a steep growth in the demand of high-quality fabric to be manufactured in Vietnam and then exported to the EU. In fact, with the EU import tariffs on women swimwear of synthetic fibers – final product of HYK&D’s core items – set to decrease from the current 12% rate to duty-free as soon as the EVFTA enters into force, Vietnam will become a strategic garment production hub for European swimwear brands.