On 30 June 2019, a free trade and investment protection agreement between the European Union and Vietnam was signed in Hanoi.

The pact, signed in the presence of EU Trade Commissioner Cecilia Malmström and Vietnamese Minister of Industry and Trade Tran Tuan Anh, guarantees a gradual 99% reduction in customs duties between the two parties over the next 7 years.

Vietnam is considered an emerging economy, and by virtue of this agreement, EU states will have the opportunity to engage with a rapidly developing country that will guarantee a high level of investment protection and a clear definition of standards.

The main contents of the agreement are:

• Market access. The liberalisation of 99% of tariff lines is planned by both parties.
• Defensive industrial interests. In the textile sector, the EU will gradually reduce duties over a staging period of 5 to 7 years for the most sensitive items. For leather footwear, liberalisation will take place over 7 years, for shoes over 5 years, and for boots over 3 years. Full and immediate liberalisation applies to plastic footwear and/or sportswear.
• Regarding the agri-food sector, rice is among the most controversial issues; the EU will grant Vietnam a zero-duty quota for 80,000 tonnes of product, a matter on which Italy has expressed a "political reservation for examination".
• Quotas are also provided for other sensitive agricultural products, including sugar (20,000 tonnes) and canned tuna (11,500 tonnes).
• For meat products, full liberalisation is planned with transitional periods.
• Non-tariff barriers. Vietnam commits to adhering to international technical standards regarding licensing and customs procedures.
• Access to the services market
• Geographical Indications. 169 European PDO and PGI products will be protected against imitation in the Vietnamese market.

Among the advantages of the agreement for Italian businesses is the specific protection of certain sectors, such as agriculture. Indeed, for sensitive products, the European Union will not fully open the market to Vietnamese imports, but quotas will be established. These protected products include rice, maize, garlic, mushrooms, eggs, and canned tuna. Furthermore, 169 European PDO and PGI products will be protected in Vietnam against any imitations. For the European market, further advantages are linked to the gradual reduction of duties and the elimination of technical barriers in the automotive sector. For the Vietnamese market, an increase in major exports to the EU market is expected for products such as footwear, textiles, technology, and computer components. Finally, the pact also includes regulations concerning sustainable development, workers' rights, and intellectual and environmental protection.

The entry into force of the agreement will require the approval of the Council and the consent of the European Parliament.