Signing FTA and IPA, Vietnam affirms its role in economic diplomacy and integration capacity

The Free Trade Agreement between Vietnam and the European Union (EV-FTA) and the Investment Protection Agreement between Vietnam and the European Union (EV-IPA) were signed simultaneously on the afternoon of June 30 in Hanoi. In addition to the economic benefits expected to be achieved for both sides, through the signing of these agreements, we have sent the message to our friends in the world that “Vietnam is a reliable partner”.

The real values ​​for both Vietnam and the European Union (EU) under the commitments of the EV-FTA are still awaiting ratification and approval by the European Parliament and the Vietnamese National Assembly.

However, the persistence in a long journey of nearly 9 years, with dozens of official negotiation rounds and many mid-term negotiation sessions, from initially a trade-investment agreement to later separating it into two separate agreements (the Trade Agreement and the Investment Protection Agreement) has shown a confident Vietnam in economic diplomacy negotiations and the ability to integrate internationally.

That confidence is demonstrated by a steadfast, consistent, and consistent stance on the goal of opening the market, determined to promote deep integration into the world economy in the context of complex and unpredictable international developments. That goal demonstrates Vietnam's responsibility for the development of globalization in the direction of trade liberalization and facilitation. Through that, Vietnam affirms to the world its position as a trustworthy partner: what it says is what it does, and has the capacity to do it!

From left, Ms. Cecilia Malstrom, Mr. Stefan Radu Oprea and Minister Tran Tuan Anh signed the EVFTA. Photo: VGP.

The EV-FTA is considered a new generation bilateral trade agreement with high quality and comprehensive standards. In addition to trade commitments, the agreement also includes important provisions on intellectual property protection, investment liberalization, environmental and social protection standards, issues related to labor conditions, human rights and sustainable development, etc.

To take just one trade commitment, Vietnam and the EU have agreed to eliminate more than 99% of all tariffs between the two sides. Of this, 65% of EU export duties on Vietnam will be eliminated upon entry into force, and the remainder will be phased out over a period of 10 years. EU duties on imports from Vietnam will be phased out over a period of 7 years. This asymmetric approach takes into account the fact that Vietnam is a developing country.

The 10-year roadmap for tax elimination not only helps Vietnam to export products with many competitive advantages (such as textiles, footwear, agricultural and aquatic products, wooden products, etc.) to the EU market, but also provides enough time for Vietnamese enterprises to mature in integration. This has partly demonstrated the "know yourself, know your enemy" in bilateral trade negotiations, equality and reciprocity between Vietnam - a developing country and 28 EU member states - all of which have standard legal frameworks and very high levels of national governance and economic governance.

Prime Minister Nguyen Xuan Phuc met with President of the European Parliament Antonio Tajani during his visit to the EU in October 2018. Photo: VGP

Through the signing of two agreements with the European Union, Vietnam has once again demonstrated the level, capacity and tireless efforts of Vietnam's economic and diplomatic negotiations in the international arena - in which, even fair and equal treatment, safe and full protection for each other's investments and investors in the Investment Protection Agreement (IPA) will also actively contribute to building a transparent legal and investment environment for both sides, thereby Vietnam will attract more investors from the EU and other countries.

Analysts said that "with , the advantages have been shared equally between both sides". Prime Minister Nguyen Xuan Phuc assessed that "EVFTA has special significance for Vietnam, a great opportunity for Vietnam to have enough conditions to integrate more deeply to participate in the regional and global market".

Looking back at the journey from June 2012 when the Vietnamese Minister of Industry and Trade and the European Union (EU) Trade Commissioner officially announced the launch of negotiations for the EV-FTA, going through rounds of negotiations, then concluding negotiations, moving towards legal review to prepare for signing at the end of 2015... Then negotiating again, separating the original agreement into two separate agreements - until it was signed, Minister of Industry and Trade Tran Tuan Anh affirmed: That was a "double success" for us!