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

MIN INIS ISTRY OF OF IND INDUSTRY AND D TRADE OF OF VIE VIET NAM IMPLEMENTING FTAs AND VIET NAM’S EXPERIENCES NGO CHUNG KH KHANH DEPUTY DEP Y DI DIRE RECTOR GEN ENERAL MULTILATERAL TRA RADE E POLI LICY DE DEPARTMENT

PRESENTATION OUTLINES 1 OVERVIEW OF VIETNAM’S FTAs NEGOTIATION 2 KEY COMMITMENTS IN VIETNAM’S FTAs 3 HOW ARE THE FTAs IMPLEMENTED IN VIETNAM? 4 WHAT ARE THE CHALLENGES IN THE FTA IMPLEMENTATION PROCESS? 5 SUGGESTED SOLUTIONS

VIETNAM’S FTAs NEGOTIATIONS Key milestones VN-CHILE ASEAN ASEAN-CHINA ASEAN-JAPAN SIGNING MEMBERSHIP SIGNING SIGNING 1995 2000 2001 2002 2006 2008 2009 2010 2011 2015 2016 2007 2007 BTA with the US VN-JAPAN FTA TPP, VKFTA, ASEAN-KOREA VN-EAEU, SIGNING ASEAN- AUSTRALIA & VEFTA NEW ZEALAND SIGNING ASEAN-INDIA SIGNING

HOW MANY FTAs? 10: signed and come into force 1: signed but not come into force 16 FTAs 1: negotiation concluded 4: negotiation ongoing

Vietnam - Japan Signed and come into force ATIGA Vietnam-Chile ASEAN - China Vietnam-Korea ASEAN - Korea Viet Nam VN - Eurasian Vietnam-EAEU ASEAN - India Economic Union ASEAN – Australia & TPP New Zealand ASEAN - Japan Negotiation Vietnam-EU concluded Negotiation ongoing RCEP Vietnam - EFTA ASEAN - Hong Kong Vietnam- Israel 6

ASEAN +3 AEC RCEP TRADE RELATION WITH EAST ASIA IN 2014 VIETNAM’s FTAs NEGOTIATION STRATEGY CHINA: -29 BLN USD; KOREA: -14,5 BLN USD; LIÊN KẾT KHU VỰC QUA FTA CỦA VIỆT NAM 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 TPP, EVFTA EFTA, EAEU ASEAN +3 AEC RCEP TRADE RELATION WITH EAST ASIA IN 2014 VIETNAM’s FTAs NEGOTIATION STRATEGY CHINA: -29 BLN USD; KOREA: -14,5 BLN USD; LIÊN KẾT KHU VỰC QUA FTA CỦA VIỆT NAM ASEAN: - 3,9 BLN USD, TAIWAN: -8,8 BLN USD TOTAL: -56,2 BLN USD

1 TRADITIONAL FTAs TAB ONE Add your own text here 1. PARTIAL TARIFF ELIMINATION 1. FULL TARIFF ELIMINATION 2. LIMITED LEVEL OF LIBERALIZATION 2. COMPREHENSIVE COMMITMENTS IN SERVICES AND INVESTMENT IN SERVICES AND INVESTMENT 3. ABSENCE OF COMMITMENTS IN 3. BINDING COMMITMENTS IN NON- NON-TRADITIONAL ISSUES SUCH AS TRADITIONAL ISSUES SUCH AS LABOR, GOVERNMENT LABOR, GOVERNMENT PROCUREMENT, INTELLECTUAL PROCUREMENT, INTELLECTUAL PROPERTY RIGHTS, ENVIRIONMENT, PROPERTY RIGHTS, ENVIRIONMENT, ECOMMERCE ETC. ECOMMERCE ETC.

1 TRADITIONAL FTAs NEW-GENERATION FTAs TAB ONE Add your own text here 1. PARTIAL TARIFF ELIMINATION 1. FULL TARIFF ELIMINATION 2. LIMITED LEVEL OF LIBERALIZATION 2. COMPREHENSIVE COMMITMENTS IN SERVICES AND INVESTMENT IN SERVICES AND INVESTMENT 3. ABSENCE OF COMMITMENTS IN 3. BINDING COMMITMENTS IN NON- NON-TRADITIONAL ISSUES SUCH AS TRADITIONAL ISSUES SUCH AS LABOR, GOVERNMENT LABOR, GOVERNMENT PROCUREMENT, INTELLECTUAL PROCUREMENT, INTELLECTUAL PROPERTY RIGHTS, ENVIRIONMENT, PROPERTY RIGHTS, ENVIRIONMENT, ECOMMERCE ETC. ECOMMERCE ETC.

TARIFF COMMITMENTS IN VIETNAM’S FTAs AGREEMENTS TARIFF COMMITMENTS DATE OF ENTRY INTO FORCE 1999 1999 1. AFTA/CEPT 98% 2005 2005 2. ASEAN – CHINA 90% 2007 2007 3. ASEAN – KOREA 86% 2009 2009 4. ASEAN – AUSTRALIA & NEW ZEALAND 90% 2010 2010 5. ASEAN – INDIA 78% 2008 2008 6. ASEAN – JAPAN 87% 2009 2009 7. VIET NAM – JAPAN 92% 2014 2014 8. VIET NAM – CHILE 89% 2016 2016 9. VIET NAM – KOREA 88% 2016 2016 10. VIET NAM – EAEU 88% 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 NO O LI LIBE BERALIZATION 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 10. VIET NAM – EAEU WTO+ 11. TPP LIST OF NON-CONFORMING LIST OF NON-CONFORMING MEASURES and WTO+ 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.

CHALLENGES IN IN THE FTA IM IMPLEMENTATION 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

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.