Vietnam`s trade figures will increase with its participation in the 11-member Comprehensive and Progressive Agreement for the Trans-Pacific Partnership (CPTPP). This is especially true for Canada, Mexico and Peru – countries with which Vietnam does not currently have a free trade agreement. Another trade agreement is the free trade agreement between Vietnam and the EU, which could allow Vietnamese exports to grow by up to a third3. In its neighbouring country, Vietnam is pursuing regional agreements on the ASEAN Economic Community (AEC), with Southeast Asia strengthening economic ties. With the entry into force of the EVFTA, 70% of Vietnam`s exports will now be dumped duty-free to the 26 EU Member States. The remaining tariff positions are gradually reduced over a seven-year period. Entrepreneurs should keep ad brief on the tariffs applied to their respective sectors in order to benefit from competitive savings and prices. The agreement also simplifies imports of goods into the EU, including customs clearance procedures, but companies should also be aware of customs requirements such as product origin, food security and technical requirements; and the continued applicability of VAT for import and sale (VAT). International trade will help us meet the challenges of coronavirus and stimulate economic growth in our UK. The agreements with Singapore and Vietnam are another step towards the UK`s accession to the CPTPP Trans-Pacific Partnership, which accounts for 13% of global GDP in 2019 and 16% if the UK joins.
The United Kingdom and Singapore have strong innovation scale results in different sectors and regions, which is why Tech Nation welcomes today`s pioneering trade agreement, which is an important milestone for the global technology sector. EvFTA marks a new chapter in Vietnam`s relations with the EU and, with the EU-Singapore FREE Trade Agreement, paves the way for new trade agreements with other ASEAN members and the EU, and even a multilateral free trade agreement between ASEAN and the EU. The milestones are set, but companies must play their part. Much of the success of these agreements depends on companies becoming familiar with them. As more and more countries want to join the CPTPP and negotiations on the Comprehensive Regional Economic Partnership (RCEP) continue, companies need to start integrating trade agreements into their supply chain and trade planning, especially as we prepare for a recovery of the economy. These two agreements are essential for the future of the United Kingdom as an independent trading nation. Not only do they include billions of euros of trade, but they also pave the way for new digital partnerships and membership of the Trans-Pacific Partnership. This will play the strengths of the United Kingdom as we become a hub for the influential technology and digital trade far beyond our borders and define our role in the world for decades to come. The deal would enable the UK to become a digital trade hub with strong connections to Asia, reduce bureaucracy for BRITISH businesses and set global standards in key areas such as cyber security and emerging technology. After just over a year of implementation, the CPTPP contributed more than $3.9 billion to Vietnam`s trade surplus.
Facilitation of international trade will be a driving force for economic recovery and it is essential that we use the instruments at our disposal to ensure that this recovery is going as smoothly as possible. The FREE Trade Agreement BETWEEN the EU and Vietnam (EVFTA), negotiated between the European Union and Vietnam to boost trade and investment between the two regions, is an important economic milestone for Vietnam. After it comes into force on August 1 of this year, the trade agreement will result in significant tariff reductions between the two trading partners and will eventually eliminate 99% of all tariffs in the future.