The Prospective Impact Of European Union-Vietnam Free Trade Agreement On Vietnam Agriculture Trade

The EVFTA is a free trade agreement that has been signed between Vietnamese Government and the European Commission.The purpose of this paper is to examine the effect of the free trade agreement between Vietnam and European Union through bilateral agricultural trade demand between countries and it involves quantitative assessment of the market demand for agricultural product from Vietnam and EU perspectives.The CGE model is used to analysis the potential impact of the European Union – Vietnam Free Trade Agreement.The finding indicates the prospective impact on some main agriculture products of Vietnam.An examination of the available data suggests that the elimination of tariffs has made Vietnam’s exports grow faster compared to the value of imports.The free trade agreement is pushing for a gradual but positive change in the import-export structure between the European Union and Vietnam.It presents a great opportunity for further integration of Vietnam and European Union trade through increased financial direct investments.This will in turn give rise to expanded bilateral trade between the EU and Vietnam.According to the treaty,farmers from Vietnam will have improved and non-discriminatory access to the market thus improvements in the profit margins.