The Economic Impact Of The Eu – Vietnam Free Trade Agreement
Despite the turmoil of the global economic environment at the height of the COVID 19 pandemic, the Vietnamese government remains convinced of the country`s economic prospects and is setting an ambitious growth target for this year. (22.05.2020) Truc, N.T.T. (2016), “The impact of production tax on agriculture sector in Vietnam: a computable computable general equilibrium approach,” Asian Research Journal of Mathematics, Vol. Singapore has been hosted since the signing of its free trade agreements. These agreements have helped local businesses and investors access overseas markets, move their products faster and easier, and benefit from tariff concessions, preferential access to certain sectors and protection from mental protection. According to a study by Singapore`s Ministry of Trade and Industry, free trade companies have saved about $730 million in tariffs and bilateral trade has increased by $9.7 million and bilateral investment has increased 26-fold. Winchester, N. (2009), “Is there a dirty little secret? Non-Tariff Trade,” Journal of Policy Modeling, Vol. In order to examine the impact of tariff reductions on the economy, several studies have recently applied the CGE model, which is very effective in studying the impact of climate change, tax policy or tax reform on the economy. There are papers that use the static model CGE (Dasgupta and Mukhopadhyay, 2017; Ganguly and Das, 2017; John et al., 2014; Khorana and Narayanan, 2017; Shaikh, 2009; Todsadee et al., 2012; Meanwhile, others have used a dynamic CGE model to measure the impact of free trade agreements (Itakura and Lee, 2012; Thu and Lee, 2015).
On 8 June, the Vietnamese National Assembly approved the agreements by an overwhelming majority, with 457 deputies for the free trade agreement and 462 for the IAP. According to some Vietnamese newspapers, the agreements could come into force in July. At the most fundamental level, the agreements will promote jobs and growth between Vietnam and the EU. The agreements will gradually reduce most tariffs, regulatory barriers and bureaucracy, and encourage EU entrepreneurs to do business and invest in Vietnam. The EVFTA is a welcome development for Vietnam. It will help to strengthen trade confidence between Vietnam and the EU and will have a very positive impact on economic relations between Vietnam and the EU. In addition, Vietnam will become a leading ASEAN country in terms of intellectual property rights creation, intellectual property protection and commercial progress in intellectual property. EVFTA`s positive contributions to the creation of intellectual protection, intellectual property protection and the commercial progress of intellectual property will in turn support Vietnam`s economic development and the well-being of the Vietnamese people. It is clear from the above results that Vietnam`s trade balance will be in deficit due to zero industrial tariffs.
More and more industrial products from EU countries will invade the Vietnamese market, which will lead to fierce competition for domestic companies, but will create a great opportunity for Vietnamese companies to be able to improve the business environment, improve product quality and diversify product types. IT is estimated that EU investors invested more than $23.9 billion in 2018 in 2,133 projects in Vietnam. EU investors are active in 18 sectors, including manufacturing, electricity and real estate. Vietnam`s technology and credit sectors are also expected to grow rapidly and sustainably after AEFTA takes effect. The coronavirus pandemic has caused some short-term problems for Vietnam`s economy. While it will take time for the tourism and hospitality sector to recover, the H pandemic has opened up opportunities for digital health, health and hygiene products and e-commerce operators.