Europe-Vietnam Trade Agreement offers opportunities for Flemish SMEs

The Vietnamese Parliament has given the green light for a new trade and investment agreement with the European Union. MEP Geert Bourgeois responds with satisfaction. “In view of Brexit, new trade agreements are very welcome. The trade agreement with Vietnam will enter into force as early as August, which is good news for our Flemish companies.”

14,000 new jobs

The aim is to eliminate 99% of import duties within seven years. This means an increase in Vietnamese exports to the EU of EUR 15 billion by 2035, compared to an increase in EU exports to Vietnam of EUR 8.3 billion. For every billion euros in EU exports, there are approximately 14,000 new well-paying jobs in the EU. “With the increased use of international standards, this deal will also remove other trade barriers and reduce costs for our businesses. We will have better access to each other’s public markets, including for SMEs,” says Geert Bourgeois.

EU as a global player

Such an agreement not only creates wealth and jobs, but also prevents Vietnam from falling under the influence of China and Russia. “The agreement therefore fits in well with the ambition of the EU as a global player, which sets standards worldwide. It sends a positive signal to the ASEAN region and the rest of the world in times of increasing trade tensions.”

Better working conditions

In addition to approving the trade and investment agreement, the Vietnamese Parliament has also ratified the ILO C105, the Convention concerning the Abolition of Forced Labour. Geert Bourgeois: “I am very aware of certain concerns about working conditions in Vietnam, but trade agreements such as this are precisely a move to improve standards in third countries. In this way, Vietnam is now obliged to apply the ILO Conventions and integrate them into labour law. The approval of the Convention on the Abolition of Forced Labour shows that Vietnam is turning words into deeds.”