EU exports to Vietnam are taxed less as of 1 August. This is the immediate effect of the entry into force of the EU-Vietnam trade agreement that will ultimately scrap duties on 99% of all goods traded between the two sides.
Doing business in Vietnam will also become easier for European companies: they will now be able to invest and pitch for government contracts with equal chances to their local competitors. Under the new agreement, the economic benefits go hand in hand with guarantees of respect for labour rights, environment protection and the Paris Agreement on climate, through strong, legally binding and enforceable provisions on sustainable development.
The EU is among the top five buyers of Vietnamese wood and timber products, accounting for 13 – 17 percent of Vietnam’s wood exports.
In 2018, Vietnam’s export of wood and timber products reached a record value of 9.3 billion USD, 900 million USD of which was to the EU. The UK was the largest EU importer where Vietnam shipped 36.2 percent of its exports, worth 289 million USD, followed by France, Germany and the Netherlands.
According to the EU-Vietnam Free Trade Agreement (EVFTA), the EU will eliminate duties on many Vietnamese wood and timber products. For example, duties on plywood and particle boards from Vietnam will be cut from 7 percent to zero percent after five years while the 2 percent tariff on wooden kitchenware will be removed once the agreement comes into force.
For more information: HERE
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