The EU Vietnam Investment Agreement: What You Need to Know
The European Union (EU) and Vietnam signed the EU Vietnam Investment Protection Agreement (EVIPA) in June 2019, marking a significant milestone in the economic relations between the two regions. The agreement aims to promote and protect foreign investment in Vietnam and the EU, while also ensuring that both parties benefit from the deal.
But what does the EU Vietnam Investment Agreement actually mean, and how will it impact businesses and investors in both regions? Here’s what you need to know.
The key objectives of the EU Vietnam Investment Agreement
The main objectives of the agreement are to provide legal certainty and protection for European investors in Vietnam, and vice versa. This includes:
– Ensuring that investors from either party can operate in the other region with fair and equal treatment, including access to the same protections and legal mechanisms.
– Establishing a transparent and predictable framework for investments and resolving disputes that may arise between investors and the state, or between investors themselves.
– Encouraging more foreign investment between both regions through the reduction of barriers to trade and investment, including tariffs, customs duties, and other non-tariff barriers.
What are the expected benefits of the EU Vietnam Investment Agreement?
The agreement is expected to bring significant economic benefits for both parties, including:
– Increased trade and investment opportunities: The agreement will reduce barriers to trade and investment, making it easier for companies to do business in both regions. This is expected to increase bilateral trade and investment flows between the EU and Vietnam.
– Improved legal protection: European investors in Vietnam will now have access to a legal framework that protects their investments and provides them with legal recourse in case of disputes. Similarly, Vietnamese investors in the EU will have access to the same protections.
– Enhanced economic cooperation: The agreement will strengthen the economic cooperation between the EU and Vietnam, creating opportunities for joint ventures and partnerships between companies in both regions.
– Job creation: The increased trade and investment flows between both regions are expected to create new jobs in various sectors, including manufacturing, services, and agriculture.
What does the EU Vietnam Investment Agreement cover?
The agreement covers a wide range of sectors, including:
– Manufacturing: The agreement will reduce tariffs on industrial goods, making it easier for companies to import and export goods between both regions.
– Agriculture: The agreement will eliminate tariffs and non-tariff barriers on a range of agricultural products, improving market access for European and Vietnamese exporters.
– Services: The agreement includes provisions for the liberalization of service sectors, such as telecommunications, transport, and financial services, creating new business opportunities for companies in both regions.
– Investment protection: The agreement includes provisions for the protection of investments made by companies from both regions, including the right to fair and equal treatment, legal protection, and dispute resolution mechanisms.
Overall, the EU Vietnam Investment Agreement is a significant step forward in strengthening the economic ties between the EU and Vietnam. This will create new opportunities for companies and investors in both regions, while also promoting economic growth and job creation. If you’re a business owner or investor, it’s important to keep these developments in mind while making investment decisions or exploring new markets for your business.