The European Union-Vietnam Free Trade Agreement and the EU-Vietnam Investment Protection Agreement will be signed on Sunday in Vietnam's capital Hanoi, local media reported on Wednesday.

After the agreements take effect, over 99 percent of tariffs on goods from both sides will be lifted, daily newspaper Vietnam News reported. Vietnam will remove 65 percent of import tariffs on goods from the EU. Remaining tariffs will be removed in the next decade.

The Council of the European Union, which represents the executive governments of EU member states, approved the two agreements on Tuesday, paving the way for the signature and conclusion.

The EU claims that the agreements will bring unprecedented benefits for European and Vietnamese companies, consumers and workers, while promoting respect for labor rights, environmental protection and the fight against climate change under the Paris Agreement.

"I welcome the decision taken today by EU member states. After Singapore, the agreements with Vietnam are the second to have been concluded between the EU and a Southeast Asian country, and represent steppingstones to a greater engagement between Europe and the region," European Commission President Jean-Claude Juncker said.

EU Commissioner for Trade Cecilia Malmstrom and Romanian Minister for Business, Trade and Entrepreneurship Stefan-Radu Opera will sign the deal on EU's behalf. Romania holds the presidency of the European Council in the first half of this year.

"Vietnam is a vibrant and promising market of more than 95 million consumers and both sides have much to gain from stronger trade relations," said Malmstrom.

"Beyond the clear economic benefits, this deal also aims to strengthen respect for human rights as well as protecting the environment and workers' rights."

After the signing, the agreements will be presented to the European Parliament for approval.

Once the European Parliament has given its green light, the free trade agreement can be officially concluded by the council and enter into force. However, the investment protection agreement will first need to be ratified by member states according to their respective internal procedures. This process is expected to take at least two years.

Talks about the free trade agreement started in 2012 and concluded in 2015. The formal conclusion of the agreement was delayed, pending an opinion of the European Court of Justice. The European Commission later decided to propose two separate agreements.

Vietnam is EU's second largest trade partner in Southeast Asia after Singapore, with bilateral goods trade at 50 billion euros ($56.5 billion) and services trade at 4 billion euros in 2017, compared with $148 billion between China and Vietnam in 2018.

Xinhua contributed to this story.