Vietnam can also take advantage of institutional reforms and bilateral cooperation mechanisms and reaffirm to investors that it is the regional investment centre for improving technology, human resources and labour productivity. The Vietnamese Ministry of Commerce considered that the signing of these agreements would create opportunities to participate in the restructuring of new supply chains, amid the consequences of the coronavirus pandemic. 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. These trade agreements will benefit both parties and foreign investors will be able to take advantage of opportunities to invest in Vietnam. But it is still too early to conclude the positive effects of these agreements. The spotlight will now shift to how the potential benefits and losses for both parties translate into reality and on those who could earn the most. 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. “If Vietnam can act decisively to fill gaps in legal capacity and implementation, it can use a trade agreement with the most valued direct benefits in the country`s history,” said Ousmane Dione, World Bank Director for Vietnam.
With COVID-19 as a reset and EVFTA as an accelerator, this is the perfect time to adopt deeper domestic policy reforms. Thu, M. and Lee, H. (2015), “Assessing the impact of deeper trade reform in Vietnam using a general balance framework,” Journal of Southeast Asian Economies, Vol. First, the authors generate a pre-political baseline that accurately reflects the current level of economic structure described in the Vietnamese Social Accounting Matrix (VSAM) by adapting model equations and behavioral parameters to actual VSAM data. The underlying (reference result) assumes that the economy is based on a position of equilibrium that is described by each economic factor as equality on the demand and supply side. Khorana, S. and Narayanan, B.G.
(2017), “Modelling effects of tariff liberalization on India`s key export sectors: analysis of the EU-India free trade agreement,” Margin: The Journal of Applied Economic Research, Vol. On 8 June, the Vietnamese National Assembly approved the agreements by an overwhelming majority, with 457 deputies for the free trade agreement and 462 for the IAP. According to some Vietnamese newspapers, the agreements could come into force in July. At the most fundamental level, the agreements will promote jobs and growth between Vietnam and the EU. The agreements will gradually reduce most tariffs, regulatory barriers and bureaucracy, and encourage EU entrepreneurs to do business and invest in Vietnam. Along with the Cirera et al. (2014) study, which shows the positive effects of tariff reductions on employment, this study shows that the removal of tariffs in industry not only increases industry inputs (9.74%), but also inputs for both agriculture (by 9.61%) services sector (8.21%) (see Table V). This is as follows: the abolition of tariffs in the industrial sector is an opportunity for manufacturers to import modern machinery, materials and equipment from Europe in order to improve their production capacity; As a result, their businesses will grow faster and encourage them to recruit more staff to grow their businesses.