The deal is also expected to bring 100,000 to 800,000 people out of poverty.
The WB believes Vietnam could enjoy greater benefits from joining the EVFTA and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) if it conducts overall economic and institutional reform to comply with their conditions.
WB Country Director in Vietnam Ousmane Dione said Vietnam could optimise the deals and reap unprecedented benefits.
Requirements on the rules of origin is one of the challenges Vietnam needs to overcome, he said, as a number of Made-in-Vietnam products still rely on imported materials - 62 percent in electronics and 53 percent in automobiles.
He suggested that Vietnam improve links between domestic suppliers and foreign enterprises that lead global supply chains.
Vietnam will become a destination for EU and global investors because of the EVFTA, he added. When FDI increases, however, the number of trade complaints will also pile up.
He therefore advised Vietnam to launch a systematic mechanism to deal with complaints between the State and investors. At the same time, priority should be given to key currency earners post-COVID-19.
MoIT will partner with the Ministry of Science and Technology this year to supplement and amend the revised Law on Intellectual Property 2009 and review decrees relating to the EVFTA.
From 2021-2025, it will work with the Ministry of Finance to supplement and amend the revised Law on Insurance Business 2010.
In the near future, it will popularise the complaint settlement mechanism in the EVFTA and other FTAs to which Vietnam is a member./.VNA
Businesses and management agencies should be fully aware of the regulations and rights included within the EU-Vietnam Free Trade Agreement (EVFTA) before the trade deal fully comes into effect.
Associate Professor, Dr. Chu Hoang Long from the Australian National University (ANU) on May 23 expressed his belief that the EU-Vietnam Free Trade Agreement (EVFTA), once effective, will boost two-way trade thanks to eased tax barriers.