NEW TRADE AND ECONOMIC AGREEMENTS BETWEEN VIETNAM AND OTHER COUNTRIES

Vietnam has been actively signing free trade agreements (FTAs) with various countries and regional trade blocs in recent years. As of June 2023, Vietnam has 15 valid FTAs, and some notable agreements include:

1) ASEAN-Japan Comprehensive Economic Partnership Agreement (AJCEP):

  • Came into force on December 1, 2008.
  • Japan committed to gradually eliminating tariffs on 96% of goods originating from Vietnam by 2026, with agricultural products being the main exception.
  • Vietnam committed to reducing tariffs on 89% of tariff lines, with certain items, such as cars, spare parts, electrical appliances, iron and steel, machinery, and equipment, having partial reductions or remaining uncommitted.

2) Comprehensive And Progressive Agreement For Trans-Pacific Partnership (CPTPP):

  • Came into force in Vietnam on January 14, 2019.
  • Participating countries committed to progressively eliminating import duties on 65% to 95% of tariff lines, with complete elimination on 97% to 100% of tariff lines upon the agreement's entry into force.
  • Vietnam committed to eliminating a significant portion of high tax lines, with 66% having a 0% tax rate upon entry into force, 87% within the 4th year, and 98% within the 11th year. Export duties were also subject to elimination within 5 to 15 years.

3) EU-Vietnam Free Trade Agreement (EVFTA):

  • Came into force on August 1, 2020.
  • Covers trade in goods, trade in services, rules of origin, customs and trade facilitation, food safety, animal and plant quarantine, technical barriers to trade, investment, competition, intellectual property, sustainable development, legal issues, cooperation, and capacity building.
  • Vietnam and the EU committed to eliminating import duties on 99% of tariff lines over a period of 7 years for the EU and 10 years for Vietnam. Tariffs were gradually reduced, with certain percentages of tariff lines being eliminated at different intervals.
  • Vietnam also committed to reducing export duties to the EU within a schedule of up to 15 years.

These FTAs aim to promote trade and economic cooperation between Vietnam and its partner countries, facilitating the movement of goods, services, and investments while providing a framework for addressing various trade-related issues.

 

 

 

 

 

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