Vietnam has integrated into the global economy and many bilateral and multilateral free trade agreements have been signed, which has a significant impact on the Vietnamese economy. In particular, the Europe-Vietnam Free Trade Agreement (EVFTA), for which negotiations were launched in June 2012, will, I hope, be submitted to the European Commission and the European Parliament for signature and ratification in 2019 (EUROCHAM, 2018). Although most of these studies use different analytical methods, they show similar results on the importance of reducing and eliminating tariffs for economic development and well-being. In this article, the authors made an ex-post assessment of the impact of EVFTA on certain critical factors of the Vietnamese economy, such as household consumption, production factors, trade balance and the state budget, under the scenario of the elimination of the customs barrier of the industrial sector, establishing a SAM based on the last table of Vietnamese inflows/exits for 2012, and then using the static model. Jean, S., Mulder, N. and Ramos, M.P. (2014), “A general balance, ex-post evaluation of the EU-Chile free trade agreement,” Economic Modelling, Vol. Ganguly, A. and Das, K. (2017), “Multi-sectoral analysis of foreign investment and trade liberalization in India: a CGE modelling approach,” Global Business Review, Vol.

As soon as industry tariffs fall to 0%, government income on tariffs decreases by 90.6%, while income tax and production tax revenues increase by 9.13% and 3.34% respectively due to increased household consumption and factors of production. Our results (Table VIII) show that government revenues are declining with lower wage revenues, which is consistent with the Ganguly and Das study (2017). Duong, N.B (2016), “Vietnam-EU Free Trade Agreement: Implications and Political Implications for Vietnam,” SECO Working Paper No. 07/2016, World Trade Institute, IL. Minh, P.N., Nhieu, N.T., Van Anh, H.T. and Linh, N.K. (2018), “Impacts of new generation of free trade agreements (APE) on the development of export-import markets of members . Vietnam case study, the General Statistics Office of Vietnam reports that the European Union (EU) market accounted for 21% of the total value of Vietnamese exports and 7% of the total value of Vietnamese imports in 2018.

Therefore, the EVFTA will naturally bring a large number of enormous benefits for both Vietnam and the EU. In particular, this agreement will eliminate virtually all tariffs on goods between Vietnam and the EU. For example, products made in Vietnam, such as textiles, footwear and wood products, are widespread in all EU countries.

Posted Friday, December 18th, 2020 at 9:37 am
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