The Vietnamese Government has signed an agreement in principle for a free trade agreement (FTA) with the European Union (EU), following more than two years of negotiations.
Under the agreement, Vietnam will remove its export duties and all tariffs on goods traded between the two economies.
European Commission Commissioner Malmström said: "Vietnam is a growing economy and once this agreement is up and running, it will provide significant new opportunities for companies on both sides, by increasing market access for goods and services.
"And Vietnam's exporters will now get much easier access to the EU for their products, giving an important boost to the Vietnamese economy."
Negotiations will continue to settle technical issues and finalize the legal text, following which the Council and the European Parliament will approve the agreement.
The agreement is expected to unlock new market opportunities in services and investment.
In particular, Vietnam will remove or ease limitations on the manufacturing of food products and beverages, as well as in the non-food sectors for EU.
Protection of Geographical Indications (GIs) representing EU flagship agricultural products will be improved with the agreement. Some of these include Champagne, Parmigiano Reggiano cheese, Rioja wine, Roquefort cheese and Scotch Whisky.
Vietnamese GIs too will be recognised in the EU, providing the adequate framework for further promoting imports of products such as M?c Châu tea or Buôn Ma Thu?t coffee.
The country also agreed, among others, to ease trade with EU in financial services, telecommunications, transport, and postal and courier services.
The EU investors have made investments of more than €500m in Vietnam in 2013, thus making EU as its sixth largest foreign investor partner.
Vietnam remains as the EU's fourth most trading partner since 2013, among the ten Association of Southeast Asian Nations (ASEAN) member states.
