Free Trade Agreements in Viet Nam

 Free Trade Agreements in Viet Nam

WTO members (as, previously, GATT contracting parties) are bound to notify the regional trade agreements (RTAs) in which they participate. Nearly all of the WTO's Members have notified participation in one or more RTAs (some Members are party to twenty or more).

In the period 1948-1994, the GATT received 124 notifications of RTAs (relating to trade in goods), and since the creation of the WTO in 1995, over 400 additional arrangements covering trade in goods or services have been notified.

Many WTO Members continue to be involved in new RTA negotiations. Like agreements in force, most new negotiations are bilateral. However a recent development has been negotiations among several WTO Members. This includes negotiations in the Asia-Pacific Region for a Trans-Pacific Partnership (TPP) Agreement, currently between 12 parties; in Asia between ASEAN members and six other WTO Members with which ASEAN has agreements in force (the Regional Comprehensive Partnership Agreement, RCEP); the Pacific Alliance in Latin America currently between Chile, Colombia, Mexico and Peru; and the Tripartite Agreement between parties to COMESA, EAC and SADC in Africa. Such plurilateral agreements, once in force, have the potential to reduce the spaghetti bowl of RTAs especially if they supersede existing bilateral agreements and develop common rules (such as for rules of origin) to be applied by all the parties to the agreement.

Evolution of Regional Trade Agreements in the world, 1948-2016   

The following Chart shows all RTAs notified to the GATT/WTO (1948-2016), including inactive RTAs, by year of entry into force.

Beside Regional trade Agreements, Bilateral free trade agreements (FTAs) are also becoming the trend  in globle in the future. Bilateral free trade agreements (FTAs) are made between two countries. Throughout the world, many governments have signed, are negotiating, or contemplating new bilateral free trade and investment agreements.

The establishment of free trade areas (FTAs) is a trend in the world. Vietnam is not out of it. For Vietnam, FTAsare not new territory; the country has been a part of the ASEAN Free Trade Area since 1996. Sine then, the country has joined many regional trade agreement, as well as anumber of bilaterial free trade agreements.

As of 2016, Vietnam has signed, implemented, and is negotiating total of 16 Free Trade Agreements (FTAs). So far, Vietnam has signed and implemented ten FTAs, concluded one FTA negotiation, and is currently negotiating five other FTAs.

Of the 10 FTAs that have been signed and implemented, 6 FTAs have been signed as ASEAN members (including AFTA, 5 FTAs between ASEAN and its partners China, South Korea, India, Japan, Australia and New Zealand) , 4 FTAs signed as an independent party (Chile, Japan, Korea, Eurasia Economic Coalition)

The two  FTAs that have concluded negotiations are the FTA with the European Union, and the Trans-Pacific Partnership (TPP).

The remaining four  FTAs being negotiated include the Comprehensive Economic Partnership Agreement (RCEP), the ASEAN-Hong Kong FTA, the FTA with Israel and the FTA with the EFTA.

Joining new FTAs brings many chances as well as challenges, hence it requires much effort from both Government and enterprises.

Below is the list of FTAs Vietnam signed and came into effect, signed but not come into effect or  is negotiating:

1. FTAs were signed and came into effect

2. FTAs were signed but have not come into effect yet

3. FTAs in negotiation