Trade Agreements And Vietnam

Second, a large proportion of foreign direct investment in Vietnam has export interests. The data below shows that more than 70% of Vietnam`s exports are linked to foreign direct investment. EU investors will therefore also benefit from the increase in export capacity due to lower import tariffs in the EU. More importantly, the agreements call on Vietnam to adopt international standards, which further increases the prospects for exporting foreign direct investment subject to strict controls by default in countries like the EU. Vietnam became the 150th member of the WTO in 2007 and promised, after accession, to fully comply with the WTO agreements on customs valuation, technical barriers to trade (TBT) and sanitary and phytosanitary (SPS) measures. The United States and Vietnam concluded a bilateral trade agreement (BTA) in 2000, which entered into force in 2001. In recent years, Vietnam has actively signed bilateral trade agreements with countries around the world. In addition, Vietnam has become a party to several free trade agreements signed by the regional trading bloc due to its membership of the Association of Southeast Nations (ASEAN). The U.S.-Vietnam Bilateral Trade Agreement (BTA) is a comprehensive document covering trade in goods, protection of intellectual property rights, trade in services, investment protection, business facilitation, and transparency. The 140-page agreement, the negotiation and implementation of which has been in force for nearly five years, is highly technical and was drafted in accordance with the World Trade Organization (WTO) and other international trade and investment principles. In principle, the BTA can be summarized as an obligation for both parties to create the necessary conditions for the products, enterprises and nationals of the other Party in order to have equitable access to the markets of the other Party.

Given the recent slowdown in trade growth in major economies, Vietnam remains an outlier. The country`s import-export turnover exceeded $500 billion in 2019. This follows the benefits of the country`s trade shift, a consequence of escalating trade tensions between the United States and China in June 2019. At that time, the country`s GDP grew by 6.71% (quarterly compared to the previous quarter, Q2 2019), announced by a growth in manufacturing exports of 9.14%. For many, this trade diversion has been a welcome gain, unexpected in many ways. But for Vietnamese politicians, the benefits have not been unprecedented. Asked about export outsourcing in 2019, Minister of Trade and Industry Tran Tuan Anh referred to the National Development Strategy for Sustainable Import and Export, adopted in 2011. The strategy has set itself the target of 10% export growth by 2020. Since 2011, the strategy has led to wide-ranging reforms in the divestiture of state-owned enterprises and the creation of a credit-friendly environment. Vietnam signed a fairly comprehensive bilateral trade agreement (BTA) with the United States in 2000. It entered into force in 2001.

The BTA was part of the postwar process of “trade normalization” between the two countries and was to be seen as a powerful precursor to a watertight U.S. free trade agreement. In June 2007, Hanoi and Washington signed a Trade and Investment Framework Agreement, one step closer to a possible free trade agreement. And in December 2008, the two governments began negotiating a hard-line bilateral investment agreement (BIT), another.

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