Vietnam-EU Free Trade Agreement: Impact and Policy Implications for Vietnam
SECO/WTI Academic Cooperation Project Working Paper Series 2016/07
33 Pages Posted: 30 Jun 2016
Date Written: June 30, 2016
On 4 August 2015, after three years and several rounds of negotiation, the European Union – Vietnam Free Trade Agreement officially established principles for the basic content of the Agreement. This study aims to analyse impact of Vietnam-EU FTA on bilateral trade of Vietnam. By using a gravity model and a panel data analysis, we show that the reduction of tariffs in the framework of the FTA will have a positive impact on bilateral trade between Vietnam and the EU. In addition, Vietnam-EU FTA will offer many new opportunities but it also challenges for Vietnam. Based on these analyses, this paper proposes some recommendations for Vietnam to benefit more the Vietnam-EU FTA.
Keywords: FTA, impact, implications, Vietnam-EU
JEL Classification: F14, F15, F21, O11, O19, O53
Suggested Citation: Suggested Citation