There is clearly potential. An ambitious free trade agreement would be an important step to harness this potential and attract more Swiss companies to develop Vietnam as an attractive market and investment target. Vietnam`s exports account for nearly two-thirds of an annual trade volume of $2.1 billion. Non-tariff barriers are also removed by the free trade agreement, making it easier for Vietnamese companies to access the highly regulated EU market and vice versa. The EU and Vietnam will strengthen customs cooperation to simplify, harmonize, standardise and modernise trade procedures to reduce transaction costs for businesses. These improvements will affect technical regulations, standards, compliance assessment, transparency and market oversight. In addition to the elimination of tariffs and non-tariff barriers for goods and services, it contains important provisions on intellectual property protection, investment liberalization, public procurement, competition and sustainable development. What do you expect from the prospects for bilateral trade in Vietnam-Switzerland? SME Portal: information and links with foreign trade for SMEs The European Union (EU) and Vietnam signed a free trade agreement (FTA) 1 and an investment protection agreement on 30 June 2020. The free trade agreement will enter into force on 1 August 2020 and will liberalise the majority of import duties imposed by the EU and Vietnam on goods from the other country. The EU will liberalise 71% of its imports from Vietnam when it enters into force and 99% after seven years. Vietnam will liberalise 65% of its imports from the EU when it enters into force, and the rest of the trade, with the exception of some products, will be liberalised after ten years. In addition, the EU grants market access preferences to several Vietnamese industries. Import duties on textile clothing imported into the EU will have five to seven years of operating time for more sensitive items between five and seven years and, when it comes into force, for less sensitive products.
The EU mainly proposed duty-free tariff quotas for Vietnamese rice exports. Other products that have gained better market access through duty-free tariff quotas are sweet corn, garlic, mushrooms, sugar and sugar products, cassava starch, surimi and canned tuna. Unprocessed shrimp will be liberalized as soon as it comes into force and pangasius will be liberalized in three years. The free trade agreement focuses on duty-free trade. It provides for the total abolition of almost all tariffs, with the exception of certain tariff quotas subject to duty-free tariff quotas. When products originating in the EU are imported into Vietnam, machinery, pharmaceuticals, chemicals, textiles and fisheries (salmon, halibut, trout and homer) benefit from the immediate abolition of tariffs. Tariffs on auto parts, motorcycles, frozen pork, food preparations, wines and spirits are abolished over a 7-year period; Tariffs on cars, chickens and beer are abolished over a 10-year period. Vietnam will maintain the Existing World Trade Organization tariff quotas for refined sugar, salt and eggs, albeit with a reduction of the quota to zero on a 10-year value. Switzerland and Vietnam began diplomatic relations in 1971. Vietnam, as an economically emerging country, has rapidly and rapidly increased its trade with Switzerland.