Second, a large part of the direct export interest in Vietnam. The data below show that more than 70% of Vietnam`s exports are related to FDI. EU investors will therefore also benefit from the increase in export capacity resulting from lower import duties in the EU. More importantly, the agreements call on Vietnam to adopt international standards that further increase the prospects for related exports, which are subject to rigorous monitoring of standards in jurisdictions such as the EU. The conclusion of the UK-Vietnam Free Trade Agreement by the end of 2020 is a realistic target for three reasons. On 12 February 2020, the European Parliament ratified the EU-Vietnam Free Trade Agreement and the EU-Vietnam Agreement (EUVIPA) on investor protection. The agreement is expected to be ratified by the Vietnamese government by May 2020 and, therefore, enter into force. The agreement, which contains significant obligations on tariff reductions, investor protection and trade facilitation, will have a huge impact on Vietnamese exporting companies, foreign investors and consumers. Vietnam`s Ministry of Planning and Investment has forecast that the CPTP could increase Vietnam`s GDP by 1.3 percentage points by 2035, while EVFTA could increase GDP by 15%. These trade agreements, combined with free trade agreements already signed and to come, should enable Vietnam to remain competitive in the short and medium term. Vietnam signed a fairly comprehensive bilateral trade agreement (BTA) with the United States in 2000.
It came into force in 2001. The BTA was part of the post-war “trade normalization” process between the two countries and was to be seen as the powerful precursor to a watertight U.S. free trade agreement. In June 2007, Hanoi and Washington signed a framework agreement on trade and investment, another step towards a possible free trade agreement. And in December 2008, the two governments began negotiating a bilateral investment agreement (ILO), which is another. The current dynamism of these economic relations in the midst of the COVID 19 pandemic and the trade war between the United States and China indicates that ASEAN and Vietnam will increasingly be increasingly important partners for the United Kingdom in pursuing its post-Brexit economic recovery strategy. Vietnam`s main challenges are low productivity and low capacity for innovation. Labour productivity in Vietnam`s manufacturing industry accounts for one-tenth of UK productivity. In terms of innovation capacity, Vietnam`s share in ASEAN is minimal relative to its share in the bloc`s trade and FDI flows (0.1% for exports and 2.3% for imports of intellectual royalties in 2019). Trade and investment agreements develop the commercial dimension of bilateral relations BETWEEN the EU and Vietnam, which are grounded and governed by the EU-Vietnam Framework Agreement on Partnership and Cooperation, which came into force in October 2016.
Vietnam currently enjoys trade preferences with the EU under the generalised preference system. The EU and Vietnam have agreed on a strong and comprehensive chapter on trade and sustainable development, with a comprehensive list of commitments, including bilateral trade and investment agreements with Vietnam concluded by the EU in March 2020 and the trade agreement is expected to enter into force this summer after its final ratification by Vietnam. The agreements with Vietnam are the second (after those with Singapore) between the EU and a South-East Asian country and are springboards for stronger engagement between the EU and the region. The Free Trade Agreement between the European Union and Vietnam (EVFTA) is the second free trade agreement between the EU and an ASEAN country after Singapore. Vietnam is the second country to have signed trade and investment agreements in the region. As an ASEAN member, Vietnam is involved in the bloc`s regional free trade agreements with Korea, the EU, China, Japan and India. The Vietnamese government has also signed a series of bilateral agreements on intellectual property,
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