The first simulation results demonstrate that the elimination of tariffs in the industrial sector will lead to a percent increase in household consumption, together with an increase in the factors of production of the agricultural, industrial and service sectors by , and percent, respectively. The EVFTA also causes a deficit in the trade balance because the value of imports increases by percent, while exports’ value slightly increases by percent. Furthermore, there has been a drop of percent in the total government income; nevertheless, social welfare witnesses a gain of percent. The second scenario simulation draws crucial attention to policymakers that a small fluctuation in the production tax rate will cause a significant change in the economy. | Impact of removing industrial tariffs under the European Vietnam free trade agreement A computable general equilibrium approach
