Vietnam Trade Agreements List
The Vietnamese government must also continue its reforms – strengthening the banking sector, eliminating corruption, refining legal and tax structures, and improving trade facilitation. The U.S.-Vietnam Bilateral Trade Agreement (BTA) is a comprehensive document that covers trade in goods, protection of intellectual property rights, trade in services, investment protection, business facilitation, and transparency. The 140-page agreement, which took nearly five years to negotiate and implement, is highly technical and was drafted in accordance with the World Trade Organization (WTO) and other international trade and investment principles. In principle, the CBA can be summed up as an obligation for both parties to create the necessary conditions for products, enterprises and nationals of the other party to have fair access to competition in the markets of the other party. Vietnam has been a member of ASEAN since July 1995. This ushered in the new era of the country`s international economic integration. Since then, Vietnam has joined 13 free trade agreements and negotiated 3 new generation free trade agreements not only with other countries, but also with territories around the world. AFTA, a multilateral free trade agreement among ASEAN countries, is the first agreement Vietnam has joined. Since its entry into force in 1993, Viet Nam has continuously acceded to several bilateral and multilateral agreements. Describes the trade agreements to which our country is a party. Contains resources for U.S. companies to get information on how to use these agreements.
When the BTA entered into force on December 10, 2001, the US immediately granted Vietnamese goods and enterprises access to the US market – a market that accounts for nearly one-third of global GDP – on the same basis as it grants to other countries with which it has normal trade relations. This means, among other things, that Vietnamese products will now be subject to much lower tariffs – from an average of 40 percent to an average of three percent – when imported into the US. Vietnam has pledged to reform its trade and investment regime to create a much fairer and more equitable “playing field” for US companies and products in Vietnam. In many cases, Vietnam`s commitments are being phased in over several years to recognize the state of transition of the Vietnamese economy and the important reforms needed to bring the regulatory system in line with international standards. Free trade agreements can also have additional drawbacks. Such agreements are likely to trigger aggressive competition from competitors outside local companies – particularly in the agricultural sector, including meat and dairy products from the EU, Australia and Canada. The CBA is the most comprehensive trade agreement Vietnam has signed to date. Below are a number of links that provide additional information about BTA. Several reports at the top of the link list contain readable summaries and/or explanations of what BTA covers and means. Please note that countries other than the U.S.
Government pages and reports do not represent the views of the U.S. Government and are not binding interpretations of the BTA. Once in place, these trade agreements will allow Vietnam to use the reduced tariffs both within the ASEAN Economic Community (AEC) and with the EU and the US to attract exporting enterprises, produce in Vietnam and export to non-ASEAN partners. Below is a list of all bilateral trade agreements Vietnam is currently participating in, categorized by partner country. The ASEAN Free Trade Area (AFTA) is a multilateral free trade area among countries in the ASEAN region. AFTA`s objective is to improve ASEAN`s comparability while promoting the attractiveness of foreign direct investment. The roadmap envisages gradually reducing tariffs to 0-5%, removing tariff barriers for certain product groups and removing non-tariff barriers, thus harmonizing member countries` procedures under AFTA. The main implementation mechanism for AFTA is the Common Effective Preferential Tariff (CEPT).
On December 1, 2015, the EVFTA officially ended negotiations and on February 1, 2016, the MOU was announced. On June 26, 2018, two parties were approved unanimously, as a result, the EVFTA was separated from two agreements: Europe-Vietnam Free Trade Agreement (EVFTA). Two agreements were signed on 30 June 2019. On 12 February 2020, the European Parliament approved the EVFTA and EVIPA. On June 8, 2020, the Vietnamese National Assembly approved these agreements. Therefore, they officially come into force on August 1, 2020. The Europe-Vietnam Free Trade Agreement (EVFTA) is a new generation free trade agreement signed between Vietnam and 27 individual EU members. The EVFTA and CPTPP are the largest commitment and the highest level of commitment in free trade agreements. The beginning of economic renewal towards a “socialist-oriented market economy”, the transition to a market economy are free trade agreements (FTAs) when two or more countries agree on the terms of trade between them. They determine the value of customs duties and customs duties that countries levy on imports and exports. In 2007, with Vietnam`s accession to the World Trade Organization (WTO), it took an important step towards integration into world trade and the conclusion of several free trade agreements.
Vietnam`s Ministry of Planning and Investment has predicted that the CPTPP could increase Vietnam`s GDP by 1.3 percentage points by 2035, while the EVFTA could increase GDP by 15%.