EVFTA gives new boost to Vietnam-Czech Republic economic ties

Prague (VNA) – The European Parliament (EP)’s ratification of the EU-Vietnam Free Trade Agreement (EVFTA) and the EU-Vietnam Investment Protection Agreement on February 12 has been applauded in the Czech Republic.

Czech member of the EP and EP Vice President Dita Charanzova welcomed the ratification, saying the European Commission successfully negotiated a high-quality agreement.

She held that the EVFTA will create conditions for opening a new market for Czech companies, and a trade agreement with a country like Vietnam is important to an export-oriented economy like the Czech Republic.

She noted Vietnam is a traditional trade partner of her country, and the deal provides considerable advantages for Czech firms in trade competition.

Sharing the view, some economic experts of the Czech Republic believed that the EVFTA will generate big opportunities for the two countries to expand bilateral economic and trade ties as under this agreement, almost all tariff barriers will be gradually removed. This will help Czech businesses to boost exports in the fields they have strength in like textile-garment, glass, automobile, mechanics, electronic technique, food and chemical manufacturing.

According to the Czech Republic’s Foreign Ministry, the EVFTA will help increase the country’s exports of mechanical products to Vietnam by over 30 percent in the next few years, and Czech enterprises will also have chances to engage in public procurement in Vietnam.

Vice President of the Czech Chamber of Commerce Borivoj Minar said the EVFTA will bring about important benefits to Czech businesses since about 85 percent of the country’s exports to Vietnam will be subject to tax exemptions. Besides, it will also help Vietnamese companies to boost shipments to the EU nation.

Reporting on the EVFTA ratification by the EP, Czech media like TV broadcaster Česká televize, economic newspaper Hospodárske noviny and news website Novinky.cz highlighted the pact’s significance to and benefits for the economy of the EU, as well as the Czech Republic. They noted that when coming into force, the EVFTA will provide conditions for expanding trade and promoting employment and economic growth in both sides through the gradual elimination of 99 percent of tariff lines./.