Vietnam Agreement Eu

The TFUE is an important step in EU-Vietnam relations and further strengthens bilateral economic integration and trade liberalization on the basis of rules. Vietnam has already taken concrete steps to implement the agreement. For example, in May 2020, the Vietnamese Ministry of Industry and Trade set up five working groups to assist the relevant government authorities on various aspects of the agreement, including the application of origin, certification and legal documentation; conduct market research on the requirements and tastes of EU consumers; Understanding EU management policies and policies that may affect Vietnamese exports; Implement information campaigns on the benefits of the agreement; Fighting fraud in the first place. The trade agreement will also open up new opportunities for businesses wishing to develop commercially by improving market access in the service sectors and in many non-market sectors, such as manufacturing. This means new opportunities to attract investment, for example for industrial production. The EU and Vietnam have agreed to strengthen the disciplines of the WTO Agreement on Technical Barriers to Trade (OTC). In particular, Vietnam is committed to strengthening the enforcement of international standards in the development of its regulations. The agreement also contains a chapter on health and plant health measures (SPS), which specifically aims to facilitate trade in plant and animal products, in which the parties have agreed on a number of important principles such as regionalisation and the recognition of the EU as a single unit. These provisions will facilitate access to the Vietnamese market by EU companies that manufacture a large number of products, including electrical appliances, information technology and food and beverage products. The agreement will add new GIs in the future. The legal text of the TUEA contains a series of joint declarations and agreements which, in accordance with Article 17.21, are an integral part of the agreement. The bank capital agreement requires the Vietnamese authorities to examine the investments of EU financial institutions at “cheap” in order to hold up to 49% of the chartered capital in two Vietnamese equity banks within five years of the entry into force of THE TUEFTA. There is a special body to exclude four commercial banks, the Investment and Development Bank of Vietnam (BIDV), Vietinbank, Vietcombank and Agribank, of which the Vietnamese government is currently the majority shareholder.

Given the continued interest of foreign investors in Vietnamese banks, we expect EU financial institutions to try, when the time comes, to use this FDI exemption. In addition, it could be a deliberate attempt by the Vietnamese government to introduce a more diversified investor base in its banking sector – existing minority foreign investors in the sector are primarily Asian banks. However, the fact that this is limited to only two Vietnamese banks indicates that this should not be a forerunor of more comprehensive reforms related to broader reforms of foreign ownership of Vietnamese banks – this and the way the Vietnamese government interprets this undertaking within its broader regulatory framework, it remains to be seen. The TFUE covers a wide range of service sectors, including financial services, business professional services, 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.

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