Prague (VNA) – The Czech Ministry of Industry and Trade’s website mpo.cz has recentlypublished an article titled “The Vietnamese market is opening up, a free tradeagreement can save millions of crowns for Czech companies.”

Itsaid the EU-Vietnam Free Trade Agreement (EVFTA) entered into force on August1, after eight years of negotiations, gradually eliminating up to 99 percent ofall mutual duties.

"Thisopens up new opportunities for the Czech Republic in the rapidly growing marketof almost one hundred million in the attractive region of Southeast Asia. Incontrast to current protectionist trends, the agreement can be seen as apositive signal towards open international trade based on rules," DeputyPrime Minister and Minister of Industry and Trade Karel Havlíček was quoted assaying.

"Accordingto preliminary estimates, 100 million Czech crowns, an even higher amount willbe saved by the removal of non-tariff barriers. The biggest opportunities willopen up for Czech companies in the automotive, engineering and electricalengineering industries,” he added.

Accordingto Minister of State for EU and Foreign Trade Martin Tauberová, after theexperience of the pandemic, the agreement may also greatly help efforts todiversify supply, which could in the future make it possible to better dealwith any similar global crises.

Thenewly agreed framework has the potential to revive trade between the CzechRepublic and Vietnam, which is currently the Czech Republic's 25th largesttrading partner in the world.

Vietnamis one of the fastest growing economies in the world, the article said, addingthat the country's economy has grown steadily by 6 to 7 percent a year over thepast decade.

Inaddition, Vietnam has a young, active population, which gives its economy thepotential for further rapid prosperity.

Vietnam’seconomic situation does not seem to be dramatically affected by the COVID-19pandemic. Vietnam has not resorted to a blanket curfew, but has targetedmeasures at specific areas with the disease, keeping the economy going.

Accordingto the World Bank's forecasts, the local economy should grow by up to 4 percentthis year as well. In addition to favourable economic indicators, Czech businessescan also benefit from human capital. Close historical ties between the twocountries gave rise to a significant Vietnamese minority in the Czech Republicand a large group of Vietnamese who, thanks to studies in the formerCzechoslovakia, still speak Czech after returning to their home country.

Thenewly agreed trade framework has the potential to develop trade relationsbetween the two countries, the article said.

TheCzech Ministry of Industry and Trade affirmed that it is ready to advise entrepreneurs.

EVFTAwill also be one of the main topics of the next meeting of the MIT Expert Teamon Free Trade Agreements, which will be convened during the autumn. In thefollowing period, the evaluation of the real impacts of EVFTA on the CzechRepublic is also planned, according to the article./.