President of the European Commission Ursula von der Leyen makes a speech at a press conference in Brussels on July 21, 2020. (Photo: AFP/VNA)

Vietnam is now part of a club of 77 countries doing trade with the EU under bilaterally agreed preferential conditions, said EU Commissioner for Trade Phil Hogan. 

The EVFTA, which took effect last Saturday, will not only ultimately scrap duties on 99% of all goods traded between the EU and Vietnam but also make it easier for European companies to do business in Vietnam, according to the site. They will now be able to invest and pitch for government contracts with equal chances to their local competitors, it said.

Under the new agreement, the economic benefits go hand in hand with guarantees of respect for labour rights, environment protection and the Paris Agreement on climate, through strong, legally binding and enforceable provisions on sustainable development.

The European economy needs now every opportunity to restore its strength after the crisis triggered by the coronavirus, the site quoted President of the European Commission Ursula von der Leyen. Trade agreements, such as the one with Vietnam, offer EU companies a chance to access new emerging markets and create jobs for Europeans, she said, adding that she strongly believes the EVFTA will present an opportunity for Vietnamese people to enjoy a more prosperous economy.