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BENEFITS OF FTAs TO VIET NAM

2

VIET NAM’S FTA NEGOTIATION PROCESS

3

HOW HAS VIET NAM NEGOTIATED IN THE WTO ACCESSION, TPP AND EVFTA

4

EXPERIENCES TO SHARE

PRESENTATION OUTLINES

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48,5 BLN USD 165 BLN USD

1995: ASEAN ACCESSION 2000: SIGNING BTA 2007: WTO ACCESSION

2016: SIGNING TPP

BENEFITS OF FTA – STRONG SURGE IN EXPORTS

TARIFF APPLIED TO APPARENT AND GARMENT PRODUCTS IS 150% HIGHER THAN THAT APPLIED TO WTO MEMBERS

NON-WTO

TARIFF APPLIED TO APPARENT AND GARMENT PRODUCTS AVERAGES AT 25%

WTO

TARIFF APPLIED TO APPARENT AND GARMENT PRODUCTS AVERAGES AT 0-5%

FTA

BENEFITS OF FTA TO EXPORTS FROM THE PERSPECTIVE OF GARMENT INDSUTRY

BENEFITS OF FTA – IM IMPROVING BUSINESSES COMPETITIVENESS

FTA

EXPAND MARKET ACCESS ENSURING EQUALITY IN ACCESSING COUNTRY RESOURCES HELP MODERNIZE INFRASTRUC TURE HELP PROMOTE ADMINISTRA TIVE REFORM ELIMINATE MARET ACCESS LIMITATION S SET OUT FAVORABLE CONDITIONS FOR START- UP

START PROCESS STEP 1

FEASIBILITY STUDY (with involvement of line ministries and agencies)

STEP 2

REPORT THE STUDY RESULT TO PRIME MINISTER FOR DECISION

STEP 3 SET UP THE NEGOTIATION TEAM STEP 4

1ST ROUND OF CONSULTATION TO SET OUT MANDATES AND STRATEGIES FOR NEGOTIATION

STEP 5 CONSULTATION WITH VCCI AND BUSINESSES STEP 6

REPORT MANDATES TO PRIME MINISTER OR HIGHER POLITICAL LEADERS FOR APPROVAL

VIET NAM’s FTA NEGOTIATION PROCESS

STEP 7 START THE FTA NEGOTIATION STEP 8

CONSULTATION DURING THE NEGOTIATION PROCESS

STEP 9

REPORT THE RESULTS OF EACH ROUND OF NEGOTIATION TO PRIME MINISTER

STEP 10

REPORT THE MOST DIFFICULT ISSUES TO THE PRIME MINISTER OR POLIBURO FOR MANDATES

STEP 11

CONSULTATION WITH LINES MINISTRIES TO SET UP STRATEGIES TO CONCLUDE NEGOTIATION

STEP 12

CONCLUDE NEGOTIATION

SIGNING AND RATIFICATION

VIET NAM’s FTA NEGOTIATION PROCESS

APPLY FOR WTO MEMBERSHIP

1995

HOW DID ID VIE IET NAM NEGOTIATE IN IN WTO ACCESSION?

START NEGOTIATION

1998

WORKING PARTY SESSIONS

2002

CONCLUDE NEGOTIATION WITH EU

2004

COMPLETE BILAT AND MULTI NEGOTIATION

2006

BECOME OFFICIAL WTO MEMBER

2007

APPLY FOR WTO MEMBERSHIP

1995

HOW DID ID VIE IET NAM NEGOTIATE IN IN WTO ACCESSION?

START NEGOTIATION

1998

WORKING PARTY SESSIONS

2002

CONCLUDE NEGOTIATION WITH EU

2004

COMPLETE BILAT AND MULTI NEGOTIATION

2006

BECOME OFFICIAL WTO MEMBER

2007

8 YEARS

APPLY FOR WTO MEMBERSHIP

1995

HOW DID ID VIE IET NAM NEGOTIATE IN IN WTO ACCESSION?

START NEGOTIATION

1998

WORKING PARTY SESSIONS

2002

CONCLUDE NEGOTIATION WITH EU

2004

COMPLETE BILAT AND MULTI NEGOTIATION

2006

BECOME OFFICIAL WTO MEMBER

2007

3 YEARS 8 YEARS

APPLY FOR WTO MEMBERSHIP

1995

HOW DID ID VIE IET NAM NEGOTIATE IN IN WTO ACCESSION?

START NEGOTIATION

1998

WORKING PARTY SESSIONS

2002

CONCLUDE NEGOTIATION WITH EU

2004

COMPLETE BILAT AND MULTI NEGOTIATION

2006

BECOME OFFICIAL WTO MEMBER

2007

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.

INV INVITATION TO JOI JOIN JOI JOINING AS S AN ASS SSOCI CIATE MEMBER OF OFFIC ICIAL MEMBERSHIP CONCLUSION OF OF NEGOTIA IATION SIGN SIGNING THE AGR GREEMENT

HOW DID ID VIE IET NAM NEGOTIATE IN IN THE TPP?

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?

2016 2016

LEGAL SCRUBBING

2015 2015

CONCLUDING NEGOTIATION

2012 2012

START NEGOTIATION FEASIBILITY STUDY

2010 2010

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

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

EXPERIENCES TO SHARE