EVFTA and EVIPA signed for new era trade and investment

The two sides signing teh trade and investment agreements

Minister of Industry and Trade Tran Tuan Anh said at the signing ceremony, “The completion of negotiations and signing of these two agreements will further strengthen bilateral relations that are growing strongly in many fields between Vietnam and the European Union, deepening economic and commercial relationships to make the most of each other's advantages and potentials to benefit both sides.”

The signing of the EU-Vietnam Investment Promotion Agreement (EVIPA)

Minister of Planning and Investment Nguyen Chi Dung said, “The EVFTA and EVIPA are two new-generation agreements of a very high quality and ensure the balance of interests of the parties. The signing of these agreements will contribute to accelerating Vietnam's reform and economic integration, not only in traditional trade but also in institutional and administrative procedures, improving investment, business, intellectual property, government procurement, labour, and sustainable development, building Vietnam's economy on the principles of market economy and good international practices, especially of the European Union.”

He stressed that the Vietnamese government believes that the signing of the EVIPA will contribute to attracting high-quality investment from EU investors and creating good opportunities for Vietnamese investors to access the EU market. This is perfectly in line with the orientation to attract foreign direct investment (FDI) in the coming time.

Dung said, “To realise the opportunities and benefits from the implementation of these agreements, together with solutions to develop quality human resources, continuing to develop infrastructure, and improving the competitiveness of the Vietnamese economy and enterprises, the government has ordered the review and improvement of institutions and investment and business policies. Accordingly, the government will study, review, and propose adjustments to the National Assembly to consider, amend, supplement or promulgate some important laws such as the Law on Investment, the Law on Enterprise, the Law on Investment, the Land Law, and the Law on Construction, as well as the Law on Environmental Protection, the Labour Code, and some Tax Laws to further simplify and create favorable conditions for market entry and the implementation of investment and business activities of people and businesses, including foreign-invested enterprises, and complete mechanisms and policies to attract the private sector.”

The EVFTA and EVIPA will further strengthen bilateral relations that are growing strongly in many fields between Vietnam and the European Union

Prime Minister Nguyen Xuan Phuc expressed hope that the EVFTA and the EVIPA will be a "large-scale highway", helping to enlarge the speed and scale of co-operation, trade, and investment between Vietnam and the EU.

Prime Minister Nguyen Xuan Phuc speaking at EVFTA and IPA signing ceremony

The trade agreement will eliminate nearly all customs duties on goods traded between the two sides in a progressive way that fully respects Vietnam's development needs. The agreement also contains specific provisions to remove technical obstacles, such as those in the car sector, and will ensure that 169 traditional European food and drink products recognised as Geographical Indications are protected in Vietnam. Thanks to the agreement, EU companies will also be able to participate in bids for procurement tenders in Vietnam on an equal footing with domestic companies.

Besides offering significant economic opportunities, the EU and Vietnam have agreed on strong sustainable development measures. This includes a commitment to implement the Paris climate agreement effectively. The agreement also commits both sides to respect and effectively implement the principles of the International Labour Organisation (ILO) concerning fundamental workers' rights.

To this end, Vietnam has recently ratified the ILO Convention on collective bargaining and has notified the EU of its intention to ratify the two outstanding fundamental ILO conventions by 2023 at the latest. It is also in the process of reinforcing its labour legislation. The agreement also establishes dedicated platforms for the EU and Vietnam to involve civil society in the implementation of these commitments.

In addition, the trade agreement includes an institutional and legal link to the EU-Vietnam Partnership and Co-operation Agreement, allowing appropriate action in the case of human rights' breaches.

The investment protection agreement includes modern rules on investment protection enforceable through the new Investment Court System and ensures that the right of the governments on both sides to regulate in the interest of their citizens is preserved. It will replace the bilateral investment agreements that 21 EU Members States currently have in place with Vietnam, putting in place new legal guarantees preventing conflict of interest and increasing transparency.