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A free trade agreement (FTA) is an agreement between two or more countries or territories with independent tariff regimes (such as the European Union, Hong Kong, etc.) to eliminate trade barriers between the signed members. Compared with traditional FTAs, the new generation FTAs have the following outstanding features: (i) wide range of commitments, (ii) deep commitment level, and (iii) strict enforcement mechanism and clear dispute resolution mechanism.
Up to the present time (December 2022), some of the new generation FTAs that Vietnam has signed and taken into effect include: CPTPP, EVFTA, UKVFTA, and RCEP. Through these new generation FTAs, Vietnam has favorable opportunities to attract foreign direct investment (FDI) as follows:
OPPORTUNITIES TO ATTRACT FDI INTO VIETNAM THROUGH NEW GENERATION FTAs
OPPORTUNITIES TO ATTRACT FDI INTO VIETNAM
THROUGH NEW GENERATION FTAs
THROUGH NEW GENERATION FTAs
A free trade agreement (FTA) is an agreement between two or more countries or territories with independent tariff regimes (such as the European Union, Hong Kong, etc.) to eliminate trade barriers between the signed members. Compared with traditional FTAs, the new generation FTAs have the following outstanding features: (i) wide range of commitments, (ii) deep commitment level, and (iii) strict enforcement mechanism and clear dispute resolution mechanism.
Up to the present time (December 2022), some of the new generation FTAs that Vietnam has signed and taken into effect include: CPTPP, EVFTA, UKVFTA, and RCEP. Through these new generation FTAs, Vietnam has favorable opportunities to attract foreign direct investment (FDI) as follows:
- The implementation of commitments in the new generation FTAs will promote Vietnam to strengthen the review, amendment, and completion of legal regulations; strengthen administrative reform; develop and promulgate new mechanisms and policies to create a favorable business environment, thereby enhancing the attractiveness of Vietnam as an investment destination;
- Commitments to the protection of investment, protection of investors' interests, and non-discrimination between domestic and foreign investors will create confidence for foreign investors to choose Vietnam;
- Commitments to open the market through the elimination of tariff and non-tariff barriers and incentives on rules of origin will help increase the exportability of Vietnamese-origin goods, thereby attracting foreign investors to pour capital into Vietnam to take advantage of this opportunity;
- Vietnam's signing of new generation FTAs with large and diverse partners will help elevate Vietnam's economic and trade relations with other countries, through which foreign investors will begin to pay more attention to the Vietnamese market.
Minh Phuong
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