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Vietnam Preferential Trade Agreements

The agreements must now be ratified by the Vietnamese National Assembly and EU member states in the case of the Investment Protection Agreement. The EU and Vietnam have agreed on a strong and comprehensive chapter on trade and sustainable development, with a comprehensive list of commitments, including: the free trade agreement is expected to significantly improve relations with the Vietnamese economy. This was already evident before the new treaties came into force, as the Investment Protection Agreement aims to reduce bureaucracy and burdens as easily as possible. This is why free trade is one of the EU`s flagship projects in promoting equity and improving the world`s economic situation. The APC regulates the overall relationship between the EU and Vietnam. It is based on common interests and principles such as equality, mutual respect, the rule of law and human rights. It broadens the scope of cooperation in areas such as trade, the environment, energy, science and technology, good governance, tourism, culture, migration, the fight against terrorism and the fight against corruption and organised crime. It also allows Vietnam and the EU to further strengthen cooperation on global and regional challenges, including climate change, terrorism and the non-proliferation of weapons of mass destruction. How and to what extent can deep preferential trade agreements (ATPs) support the development of developing country firms within global value chains (CICs)? This issue is becoming increasingly important as THE PTAs have become the commercial instrument of the choice of the major trading powers and regulate their content of policies that could interfere with national development strategies. This study focuses on Vietnam, which aims to both go beyond low-value-added production activities in the CMO and promote economic integration by signing deep TAPs such as the Trans-Pacific Partnership and the FREE Trade Agreement ENTRE the EU and Vietnam. Based on the empirical results of a new business survey, stakeholder interviews in Vietnam and an analysis of key provisions of the PTA, we find that Vietnamese companies can offer new opportunities for improvement in CIS, either directly by concretely encouraging modernization or indirectly by addressing some of the identified barriers to modernization.

However, this potential will not be realized automatically and will require both a strategic vision and support programs initiated by government and professional organizations. The results of this study are relevant not only to Vietnam, but also to a number of other middle-income countries, which aim to enhance the CMO and who may be faced with the decision to sign deep EPZs with major trading powers. As part of the ratification process for the new free trade, improved trade has also been accompanied by an improvement in the social situation. Where possible, this should be launched before it comes into force, in order to consider improving the situation step by step. In this way, trade and change will be linked so that the Vietnamese economy can benefit from more exports while having access to European products and goods. The free trade agreement establishes a framework for resolving future disputes between the EU and Vietnam over the interpretation and implementation of the agreement. It applies to most areas of the agreement and is faster and more effective in many respects than the dispute settlement mechanism in the WTO. The Vietnamese government should also continue on the path of reforms – strengthening the banking sector, eliminating corruption, fine-tuning legal and fiscal structures and improving trade facilities.