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PRESENTATION OUTLINES 1 2 3 4 HOW HAS VIET BENEFITS OF VIET NAM’S EXPERIENCES NAM FTAs TO VIET FTA TO SHARE NEGOTIATED IN NAM NEGOTIATION THE WTO PROCESS ACCESSION, TPP AND EVFTA

BENEFITS OF FTA – STRONG SURGE IN EXPORTS 165 BLN USD 48,5 BLN USD 14 14,4 ,4 BLN USD 2016: SIGNING TPP 5,4 BLN 5,4 BLN USD SD 2007: WTO ACCESSION 2000: SIGNING BTA 1995: ASEAN ACCESSION

BENEFITS OF TARIFF APPLIED TO APPARENT AND NON-WTO FTA TO GARMENT PRODUCTS IS 150% HIGHER THAN THAT APPLIED TO EXPORTS WTO MEMBERS FROM THE PERSPECTIVE WTO OF GARMENT TARIFF APPLIED TO APPARENT AND GARMENT PRODUCTS AVERAGES AT INDSUTRY 25% FTA TARIFF APPLIED TO APPARENT AND GARMENT PRODUCTS AVERAGES AT 0-5%

BENEFITS OF FTA – IM IMPROVING BUSINESSES COMPETITIVENESS ENSURING EXPAND EQUALITY IN MARKET ACCESSING ACCESS COUNTRY RESOURCES FTA SET OUT HELP FAVORABLE MODERNIZE CONDITIONS INFRASTRUC FOR START- TURE UP HELP ELIMINATE PROMOTE MARET ADMINISTRA ACCESS TIVE LIMITATION REFORM S

VIET NAM’s FTA NEGOTIATION PROCESS STEP 1 STEP 3 STEP 5 FEASIBILITY SET UP THE CONSULTATION STUDY (with NEGOTIATION WITH VCCI AND involvement of TEAM BUSINESSES line ministries and agencies) STEP 2 STEP 4 STEP 6 1 ST ROUND OF REPORT MANDATES REPORT THE CONSULTATION TO TO PRIME MINISTER STUDY RESULT TO SET OUT MANDATES OR HIGHER PRIME MINISTER START AND STRATEGIES POLITICAL LEADERS FOR DECISION PROCESS FOR NEGOTIATION FOR APPROVAL

VIET NAM’s FTA NEGOTIATION PROCESS SIGNING AND RATIFICATION STEP 7 STEP 9 STEP 11 REPORT THE CONSULTATION WITH START THE FTA LINES MINISTRIES TO RESULTS OF EACH NEGOTIATION SET UP STRATEGIES ROUND OF TO CONCLUDE NEGOTIATION TO NEGOTIATION PRIME MINISTER STEP 8 STEP 10 STEP 12 REPORT THE MOST CONCLUDE CONSULTATION DIFFICULT ISSUES TO NEGOTIATION DURING THE THE PRIME MINISTER NEGOTIATION OR POLIBURO FOR PROCESS MANDATES

APPLY FOR WTO START WORKING PARTY CONCLUDE COMPLETE BILAT BECOME MEMBERSHIP NEGOTIATION SESSIONS NEGOTIATION AND MULTI OFFICIAL WTO WITH EU NEGOTIATION MEMBER 1995 1998 2002 2004 2006 2007 HOW DID ID VIE IET NAM NEGOTIATE IN IN WTO ACCESSION?

8 YEARS APPLY FOR WTO START WORKING PARTY CONCLUDE COMPLETE BILAT BECOME MEMBERSHIP NEGOTIATION SESSIONS NEGOTIATION AND MULTI OFFICIAL WTO WITH EU NEGOTIATION MEMBER 1995 1998 2002 2004 2006 2007 HOW DID ID VIE IET NAM NEGOTIATE IN IN WTO ACCESSION?

8 YEARS 3 YEARS APPLY FOR WTO START WORKING PARTY CONCLUDE COMPLETE BILAT BECOME MEMBERSHIP NEGOTIATION SESSIONS NEGOTIATION AND MULTI OFFICIAL WTO WITH EU NEGOTIATION MEMBER 1995 1998 2002 2004 2006 2007 HOW DID ID VIE IET NAM NEGOTIATE IN IN WTO ACCESSION?

APPLY FOR WTO START WORKING PARTY CONCLUDE COMPLETE BILAT BECOME MEMBERSHIP NEGOTIATION SESSIONS NEGOTIATION AND MULTI OFFICIAL WTO WITH EU NEGOTIATION MEMBER 1995 1998 2002 2004 2006 2007 HOW DID ID VIE IET NAM NEGOTIATE IN IN WTO ACCESSION?

WHAT DID ID WE DO? - NEGOTIATION TEAM: Strengthened the team organization, appointing the capable and experienced officials from different ministries and agencies. - NEGOTIATION MANDATES: Adjusted the negotiation mandates and asked for approval from the Prime Minister. - CONSULTATION WITH MINISTRIES: Reached a consensus with line ministries and agencies about negotiation strategies and objectives. - CONSULTATION WITH BUSINESSES AND OTHER STAKEHOLDERS: Tried to have the support from business community and national assembly. - Negotiation: Set up good personal relationship with negotiating partners, especially important ones such as the US, EU.

HOW DID ID VIE IET NAM NEGOTIATE IN IN THE TPP? SIGNING THE SIGN AGR GREEMENT OF OFFIC ICIAL MEMBERSHIP CONCLUSION OF OF NEGOTIA IATION JOINING AS JOI S AN ASS SSOCI CIATE MEMBER INVITATION TO JOI INV JOIN

WHAT CHALLENGES DID ID WE FACE IN IN THE TPP? 1. A VERY HIGH STANDARD AND AMBITIOUS AGREEMENT 2. LACK OF EXPERIENCES IN NEGOTIATING THE OFFENSIVE APPROACH 3. POLITICALLY SENSITIVE ISSUES SUCH AS FREEDOM OF ASSOCIATION 4. COMPLICATED DIPLOMATIC AND POLITICAL SUPPORT 5. DOMESTIC STAKEHOLDERS SUPPORT, ESPECIALLY THOSE WHO ARE VULNERABLE TO FOREIGN COMPETITION

WHAT DID ID WE DO? 1. SELECTED BEST NEGOTIATORS FROM LINE MINISTRIES AND AGENCIES TO FORM THE BEST POSSIBLE NEGOTIATION TEAM 2. STUDIED AS FAST AS POSSIBLE E.G LEARNING BY DOING 3. WORKED CREATIVELY WITH EXPERTS TO FIND OUT THE BEST SOLUTIONS FOR THE POLITICALY SENSITIVE ISSUE 4. HAD MANY CONSULTATIONS WITH STAKEHOLDERS, BUSINESSES AND ESPECIALLY HAD TO DO A LOT OF EXPLANATION TO POLITICAL LEADERS TO ASSURE THEM OF THE POLITICAL STABILITY 5. HAD FRANK DISCUSSION WITH PARTNER COUNTRIES TO EXPLAIN VIET NAM’S POSITION IN THE TPP 6. ESTABLISHED GOOD PERSONAL RELATION AND BUILT TRUST WITH TPP NEGOTIATORS

HOW DID VIET NAM NEGOTIATE IN THE FTA WITH EUROPEAN UNION? FEASIBILITY CONCLUDING STUDY NEGOTIATION 2010 2010 2015 2015 START LEGAL NEGOTIATION SCRUBBING 2012 2012 2016 2016

WHAT DIF IFFIC ICULTIES IN IN NEGOTIATING WIT ITH THE EU? 1. LONG CONSULTATION AND DECISION MAKING PROCESS FROM EU 2. THE CONFLICTING INTERSTS WITH THE US IN GI NEGOTIATION 3. HIGH AND AMBITIOUS DEMAND FOR MARKET ACCESS AND NON- TRADITIONAL ISSUES 4. TOUGH AND EXPERIENCED NEGOTIATORS

WHAT DID ID WE DO? 1. FORMED THE BEST POSSIBLE NEGOTIATION TEAM 2. WORKED CREATIVELY WITH BOTH THE EU AND THE US TO FIND THE COMMON GROUND 3. CONSULTED WITH MINISTRIES, AGENCIES, LOCALITIES AND REPORTED TO POLITICAL LEADERS 4. USED OTHER CHANNELS DELIBERATELY AND WISELY TO ADD MORE MOMENTUM TO NEGOTIATION 5. GATHERED ENOUGH SUPPORT FROM DOMESTIC STAKEHOLDERS, ESPECIALLY BUSINESS COMMUNITIES

EXPERIENCES TO SHARE DEFINE CLEAR AND SPECIFIC NEGOTIATION STRATEGIES AND OBJECTIVES WITH EACH FTA PARTNER ENSURE STRONG SUPPORT FROM POLITICAL LEADERS AND REACH A CONSENSUS WITH RELEVANT MINISTRIES, AGENCIES AND STAKEHOLDERS FORM A STRONG NEGOTIATION TEAM WITH CAPABLE, EXPERIENCED NEGOTIATORS AND ENSURE ITS STABILITY TRY TO BUILD TRUST, PERSONAL RELATION WITH PARTNER NEGOTIATORS, ESPECIALLY RELATIONSHIP AT THE CHIEF NEGOTIATOR LEVEL