Closer trade relations through the Investment Protection Agreement In 2015, the EU and Vietnam agreed on a comprehensive and ambitious trade and investment agreement. This free trade agreement (FTA) is the second largest in the ASEAN region after Singapore and is another part of the EU`s ultimate goal of a free trade agreement between the EU and ASEAN. Vietnam has free trade agreements with many countries in the region, such as Japan, South Korea, etc. Another important free trade agreement in which Vietnam participates is the Trans-Pacific Partnership. It covers countries bordering the Pacific Ocean, such as Japan, Chile, Canada and Australia. With the United States withdrawing from the negotiations, the remaining 11 countries continued negotiations and agreed on the new comprehensive and progressive agreement for the Trans-Pacific Partnership (PPAC). The importance of the CPTPP for Vietnam is much less important than the TPP would have been, given that Vietnam had already concluded free trade agreements with the remaining 11 countries, either bilaterally or through the ASEAN Pact. It took more than eight years and a dozen rounds of dialogue for both sides to negotiate the EVFTA. Nicolas Audier, President of EuroCham in Vietnam, welcomed the results of the vote: “The EVFTA is now more important than ever, as trade wars and a global pandemic disrupt normal affairs on an unprecedented scale. Free, fair and rules-based trade is the best roadmap for economic growth, and Vietnam will now have privileged access to an EU consumer market of around 500 million people who want to do business and invest with a strong, secure and prosperous nation in the heart of Asia. Under the TEU, the EU provides the same thresholds as it applies under the WTO Public Procurement Agreement (GPA) and other free trade agreements, while Vietnam enjoys a 15-year transitional period with higher thresholds.
Both the EU and Vietnam are committed to opening up public procurement to the central government, sub-headquarters and other entities, as outlined in the annexes to the agreement. In particular, the EU is committed to opening the same central public bodies as in the WTO, with some exceptions. Vietnam is committed to opening the procurement processes of 20 central agencies, including several ministries, departments and sub-agencies, 2 sub-central government agencies (Hanoi City and Ho-Chi Minh City) and 42 “other covered entities”, including Vietnam Railways and Vietnam Electricity.2 THE TUE AEA covers a wide range of service sectors, including financial services, professional services to business, professional services to business, and communications services. , postal services, construction and related engineering services. Health and social services, environmental services and transportation services. Many of the concessions proposed by each party exceed those made under the WTO Trade in Services Agreement, including packaging services, building cleaning services, interdisciplinary research and development services and health care services.