IMPLEMENTING FTAs AND VIET NAMS EXPERIENCES NGO CHUNG KH KHANH - - PowerPoint PPT Presentation

IMPLEMENTING FTAs AND VIET NAM’S EXPERIENCES

NGO CHUNG KH KHANH DEP DEPUTY Y DI DIRE RECTOR GEN ENERAL MULTILATERAL TRA RADE E POLI LICY DE DEPARTMENT

MIN INIS ISTRY OF OF IND INDUSTRY AND D TRADE OF OF VIE VIET NAM

OVERVIEW OF VIETNAM’S FTAs NEGOTIATION

PRESENTATION OUTLINES

KEY COMMITMENTS IN VIETNAM’S FTAs HOW ARE THE FTAs IMPLEMENTED IN VIETNAM? WHAT ARE THE CHALLENGES IN THE FTA IMPLEMENTATION PROCESS? SUGGESTED SOLUTIONS

5 4 3 2 1

1995 2000 2001 2002 2006

2007 2007

2008 2009 2010 2011 2015 2016

BTA with the US

ASEAN-KOREA SIGNING

VN-JAPAN FTA ASEAN- AUSTRALIA & NEW ZEALAND SIGNING ASEAN-INDIA SIGNING

TPP, VKFTA, VN-EAEU, VEFTA

ASEAN MEMBERSHIP ASEAN-CHINA SIGNING ASEAN-JAPAN SIGNING

VN-CHILE SIGNING

VIETNAM’S FTAs NEGOTIATIONS

Key milestones

16 FTAs 10: signed and come into force 1: signed but not come into force 4: negotiation

• ngoing

1: negotiation concluded

HOW MANY FTAs?

6

ASEAN - Hong Kong Viet Nam ATIGA Vietnam - Japan ASEAN - China ASEAN - Korea ASEAN - India ASEAN – Australia & New Zealand ASEAN - Japan RCEP Vietnam-Chile Vietnam-Korea VN - Eurasian Economic Union Vietnam - EFTA TPP Vietnam-EU

Negotiation

• ngoing

Negotiation concluded Signed and come into force Vietnam-EAEU Vietnam- Israel

RCEP AEC ASEAN +3

LIÊN KẾT KHU VỰC QUA FTA CỦA VIỆT NAM

VIETNAM’s FTAs NEGOTIATION STRATEGY

TRADE RELATION WITH EAST ASIA IN 2014 CHINA: -29 BLN USD; KOREA: -14,5 BLN USD; ASEAN: - 3,9 BLN USD, TAIWAN: -8,8 BLN USD TOTAL: -56,2 BLN USD

RCEP AEC ASEAN +3

LIÊN KẾT KHU VỰC QUA FTA CỦA VIỆT NAM

TPP, EVFTA EFTA, EAEU

TRADE RELATION WITH EAST ASIA IN 2014 CHINA: -29 BLN USD; KOREA: -14,5 BLN USD; ASEAN: - 3,9 BLN USD, TAIWAN: -8,8 BLN USD TOTAL: -56,2 BLN USD TRADE TURNOVER WITH THE US, EU & EAEU 2014 US: + 22,3 BLN USD; EU: + 19 BLN USD; EAEU: +1,3 BLN USD TOTAL: + 42,6 BLN USD

VIETNAM’s FTAs NEGOTIATION STRATEGY

1

TAB ONE Add your own text here

TRADITIONAL FTAs

• 1. FULL TARIFF ELIMINATION
• 2. COMPREHENSIVE COMMITMENTS

IN SERVICES AND INVESTMENT

• 3. BINDING COMMITMENTS IN NON-

TRADITIONAL ISSUES SUCH AS LABOR, GOVERNMENT PROCUREMENT, INTELLECTUAL PROPERTY RIGHTS, ENVIRIONMENT, ECOMMERCE ETC.

• 1. PARTIAL TARIFF ELIMINATION
• 2. LIMITED LEVEL OF LIBERALIZATION

IN SERVICES AND INVESTMENT

• 3. ABSENCE OF COMMITMENTS IN

NON-TRADITIONAL ISSUES SUCH AS LABOR, GOVERNMENT PROCUREMENT, INTELLECTUAL PROPERTY RIGHTS, ENVIRIONMENT, ECOMMERCE ETC.

1

TAB ONE Add your own text here

TRADITIONAL FTAs NEW-GENERATION FTAs

• 1. FULL TARIFF ELIMINATION
• 2. COMPREHENSIVE COMMITMENTS

IN SERVICES AND INVESTMENT

• 3. BINDING COMMITMENTS IN NON-

TRADITIONAL ISSUES SUCH AS LABOR, GOVERNMENT PROCUREMENT, INTELLECTUAL PROPERTY RIGHTS, ENVIRIONMENT, ECOMMERCE ETC.

• 1. PARTIAL TARIFF ELIMINATION
• 2. LIMITED LEVEL OF LIBERALIZATION

IN SERVICES AND INVESTMENT

• 3. ABSENCE OF COMMITMENTS IN

NON-TRADITIONAL ISSUES SUCH AS LABOR, GOVERNMENT PROCUREMENT, INTELLECTUAL PROPERTY RIGHTS, ENVIRIONMENT, ECOMMERCE ETC.

TARIFF COMMITMENTS IN VIETNAM’S FTAs

AGREEMENTS TARIFF COMMITMENTS DATE OF ENTRY INTO FORCE

• 1. AFTA/CEPT

98% 1999 1999

• 2. ASEAN – CHINA

90% 2005 2005

• 3. ASEAN – KOREA

86% 2007 2007

• 4. ASEAN – AUSTRALIA & NEW ZEALAND

90% 2009 2009

• 5. ASEAN – INDIA

78% 2010 2010

• 6. ASEAN – JAPAN

87% 2008 2008

• 7. VIET NAM – JAPAN

92% 2009 2009

• 8. VIET NAM –CHILE

89% 2014 2014

• 9. VIET NAM – KOREA

88% 2016 2016

• 10. VIET NAM – EAEU

88% 2016 2016

• 11. TPP

NEARLY 100% Na

• 12. EVFTA

99% ~ 2018

SERVICES AND IN INVESTMENT COMMITMENTS IN VIETNAM’S FTAs

AGREEMENTS SERVICES COMMITMENTS INVESTMENT COMMITMENTS

• 1. AFAS

PACKAGE 10

• 2. ASEAN – CHINA

~ WTO COMMITMENTS NO O LI LIBE BERALIZATION

• 3. ASEAN – KOREA

~ WTO COMMITMENTS NO O LI LIBE BERALIZATION

• 4. ASEAN – AUSTRALIA & NEW ZEALAND

~ WTO COMMITMENTS NO O LI LIBE BERALIZATION

• 5. ASEAN – INDIA

~ WTO COMMITMENTS NO O LI LIBE BERALIZATION

• 6. ASEAN – JAPAN

~ WTO COMMITMENTS NO O LI LIBE BERALIZATION

• 7. VIET NAM – JAPAN

~ WTO COMMITMENTS NO O LI LIBE BERALIZATION

• 8. VIET NAM –CHILE

~ WTO COMMITMENTS NO O LI LIBE BERALIZATION

• 9. VIET NAM – KOREA

~ WTO COMMITMENTS NO O LI LIBE BERALIZATION

• 10. VIET NAM – EAEU

WTO+

• 11. TPP

LIST OF NON-CONFORMING MEASURES and WTO+ LIST OF NON-CONFORMING MEASURES

• 12. EVFTA

WTO+

OTHER COMMITMENTS IN VIETNAM’S FTAs

• LABOR: ILO obligations and the dispute settlement mechanism in the

TPP.

• IPR: Significantly ambitious obligations in intellectual property rights

protection.

• State-owned enterprises: The Government not to subsidize the SOEs

in a way that negatively affect the other countries’ benefits.

• Environment: fishery subsidies are only allowed on the reasonable

basis.

• E-commerce: free flow of information and no data localization

requirement.

LOW AWARENESS OF THE FTAs AND THEIR BENEFITS CAPACITY CONSTRAINT TO IMPLEMENT THE FTAs CHANGING MINDSETS OF GOVERNMENT OFFICIALS AND BUSINESSES MORE COMPETITION FROM FOREIGN GOODS AND BUSINESSES

CHALLENGES IN IN THE FTA IM IMPLEMENTATION

EXPERIENCES TO SHARE

• DOING THE FTAs MUST ORIGINATE FROM THE COUNTRY’S DEMAND AND MUST

GO IN LINE WITH THE PREPARATION AND READINESS OF THE COUNTRY AND BUSINESSES.

• REACHING A CONSENSUS IN OPINIONS, AWARENESS AND ACTIONS AND SETTING

OUT FEASIBLE ROADMAP.

• ENSURING A LONG-TERM ECONOMIC, POLITICAL AND DIPLOMATIC VISIONS AND

A STRATEGIC OBJECTIVE.

• MAKING CAREFUL PREPARATION AND APPROPRIATE STEPS ON THE BASIS OF

DRAWING LESSIONS FROM SIMPLE AGREEMENT TO DO THE MORE ADVANCED ONES.

• TAKING FULL ADVANTAGE OF BENEFITS AND OPPORTUNITIES ARISING FROM THE

FTA TO BOOST PRODUCTION, PROMOTE EXPORT AND ATTRACT INVESTMENT.

EXPERIENCES TO SHARE (c (cont)

• DIVERSIFYING THE FTAs, NOT DEPENDING ON A CERTAIN PARTNER.
• SETTING OUT MEASURES TO RAISE SOCIAL AWARENESS TO FULLY

PREPARE AND EFFECTIVELY BENEFIT FROM THE FTAs.

• HAVING THE SUPPORTING MEASURES, ESPECIALLY INSTUTIONAL

MEASURES.