Vietnam’s economy is expected to gain enormously from the FTA with the EU. However, the country will face major criticism unless it adopts labor and human rights reforms.
The new EU-Vietnam free trade agreement (FTA) shows the EU will look past human rights violations to push a trade agenda. But as FTAs with ASEAN states don’t offer the EU the same economic benefits, it’s unlikely the bloc will pen more in the near future.
The new EU-Vietnam free trade deal may prompt manufacturers to move operations from Thailand to Vietnam. Thailand will likely look to other markets to compensate.