Instead of using a static CGE model, Thu and Lee (2015) used a dynamic CGE model to study the impact of trade reforms on economic well-being. They examined the impact of goods and services in trade liberalization, including tariff reductions and the introduction of reforms in other trade-related areas. One of his findings was that the removal of tariffs had a strong positive impact on total production, exports and imports. Nevertheless, social benefits have been much lower than the expansion of production. On 30 June 2019, the EU and Vietnam signed the EU-Vietnam Free Trade Agreement (EVFTA) and the EU-Vietnam Free Trade Agreement (EVIPA) in Hanoi. In 2012, the EU and Vietnam began negotiations on AEFTA and expect the EU to enter into force before the end of 2019. The agreement has yet to be ratified by the European Parliament. Some EU lawmakers oppose such agreements with Vietnam because of the country`s poor human rights record. Ganguly and Das (2017) followed a CGE modelling approach and built a SAM to assess the impact of FDI and trade liberalization in India. Its article showed that any change in trade policy will change not only the volume of exports and imports from different sectors, but also the level of GDP, the exchange rate and government revenues. Erero and Bonga-Bonga (2018) recently conducted a study to assess the impact of tariff reduction on Congo`s economy using a CGE model. In its paper, it was found that formal sector production and employment increase when tariffs fall, because this policy of tariff reduction fuels import competition, and local producers must survive import competition by attempting to import input-efficient technologies and production practices.

The agreements must now be ratified by the Vietnamese National Assembly and EU member states in the case of the Investment Protection Agreement. Nguyen, D.K.L. and Cao, T.H.V. (2016), ”Increasing free trade agreements in general and individually foreign direct investment in Vietnam?”, Foreign Trade University, IL, available at: veam.org/wp-content/uploads/2016/08/64.-Cao-Thi-Hong-Vinh.pdf (available March 15, 2018).