Abstract
On 4 August 2015, after three years and several rounds of negotiation, the European Union – Vietnam Free Trade Agreement officially established principles for the basic content of the Agreement. This study aims to analyse impact of Vietnam-EU FTA on bilateral trade of Vietnam. By using a gravity model and a panel data analysis, we show that the reduction of tariffs in the framework of the FTA will have a positive impact on bilateral trade between Vietnam and the EU. In addition, Vietnam-EU FTA will offer many new opportunities but it also challenges for Vietnam. Based on these analyses, this paper proposes some recommendations for Vietnam to benefit more the Vietnam-EU FTA.