Free trade agreement with Vietnam to enter into force on 1 August 2020

The EU has negotiated a comprehensive free trade agreement with Vietnam. This leads to a reduction of 99% of all customs duties and further trade facilitation. The European Parliament already approved the agreement in February 2020. The ratification by the Vietnamese National Assembly now took place on the 8th of June 2020. The agreement will take effect on the 1st of August 2020.

According to the agreement, there will be no formal proof of preference for exports from the EU. The only proof of preference is the declaration of origin. For shipments over 6,000 € value of goods, approval as a registered exporter (REX) is required.

It should also be noted that the Generalised System of Preferences (GSP) will continue to apply in parallel after the entry into force of the EU’s free trade agreement with Vietnam for a transition period of two years.