Industrial real estate expects opportunities from EVFTA

CafeLand - According to experts Savills Vietnam, Vietnam - EU Free Trade Agreement (EVFTA) will provide opportunities for all real estate segments, in which industrial real estate will have many positive effects.

EVFTA is an important agreement, strongly promoting the industrial and export sectors in Vietnam by removing 99% of tariffs on goods. Clusters and industrial parks of Vietnam increasingly attract the attention of investors. EU investors are expressing interest in Vietnam, and transparency of the legal and investment environment will continue to increase the reputation of this S-shaped country.

However, the United States recently applied tariffs on Korean and Taiwanese steel products manufactured in Vietnam. This showed that the origin of import and export goods is increasingly being monitored closely by countries around the world. 

Mr. Troy Griffiths, Deputy General Director of Savills Vietnam, said the agreement is a good news for Vietnam's real estate market, showing the Government's commitment to make Vietnam a leading destination in the field of manufacturing industry in Asia.

Industrial real estate is predicted to have many opportunities after EVFTA.

"Bilateral trade will certainly increase, followed by increased FDI inflows, increased employment, and more opportunities across all real estate segments" said Troy Griffiths.

Mr. John Campbell, Head of Industrial Property, confirmed that the number of requests from EU customers has increased in the process of waiting for the agreement to be signed. He also said that this free trade agreement will increasingly attract the attention of the market to Vietnam's industrial real estate.

Accordingly, by facilitating the application of the latest production technologies and strengthening human resource training, the Government of Vietnam is gradually eliminating the fear of businesses about the feasibility, or lacking of human resources and increased costs. Improving the transparency of the business environment will help reduce investors' worries and raise production quality standards in Vietnam.

Vietnam - EU Free Trade Agreement (EVFTA) is a new generation FTA between Vietnam and 28 EU member countries. EVFTA, together with the Trans-Pacific Partnership Agreement (TPP), are two FTAs with a wide range of commitments and the highest level of commitment of Vietnam ever.

On December 1, 2015, EVFTA officially ended negotiations and by February 1, 2016, the agreement was published. On June 26, 2018, EVFTA was split into two Agreements, one is the Trade Agreement (EVFTA) and the other is the Investment Protection Agreement (EVIPA) and officially ends the legal review process. with EVFTA Agreement.

In August 2018, the legal review process for EVIPA was also completed.

Two agreements were signed on June 30, 2019. After the signing, the two agreements will have to go through the internal approval process in the EU and Vietnam in order to officially take effect with both parties.

According to Tam An