The European Union and Vietnam reached a free trade agreement on 4 August, the EU's second in Southeast Asia, paving the way for deep cuts in tariffs on almost all goods between their markets.
The agreement in principle may take several years to be implemented. A legal text should be completed later this year, after which it must be ratified by the 28 EU member states and the European Parliament.
Free trade with the EU would be a boon for Vietnam, a fast-growing, export-led economy set to receive preferential access to a bloc with a combined GDP of $18.46 trillion (£11.82 trillion). The two already share $31 billion in annual trade, and Vietnam's exports to the EU account for nearly four-fifths of their trade.
It is expected to take effect in late 2017.
Read more at Reuters UK
Source - Reuters UK