Amy Horn

Photographer

The Eu-Vietnam Free Trade Agreement

Infrastructure projects account for a significant share of public investment in Vietnam. The TFUE urges the parties to respect the general principles of national treatment, non-discrimination and increased transparency of public procurement. The aim is to ensure that EU companies can offer public procurement (goods, services and construction services with some exceptions) on an equal footing with national bidders, taking into account the monetary value thresholds set under the agreement. Nevertheless, TUEFTA authorizes Vietnam to delay the implementation of several specific provisions by ten years and Vietnam`s public procurement obligations are not enforced for five years. To qualify for preferential tariffs under the EUSF, operators must comply with general rules of origin or rules of origin specific to the products of the agreement and complete a certificate of origin (eur.1) issued by the government or a declaration of origin from a certified exporter (i.e. self-certification of origin). The TFUE allows for the bilateral accumulation of origin, in which products manufactured in one part can benefit from preferential treatment and containing materials of the other party. It also allows for a limited accumulation of South Korean substances used in textile manufacturing and the possibility of accumulating fishing equipment from other ASEAN Member States. Like the provisions of the World Trade Organization (WTO), the CEFTA is a comprehensive and beneficial agreement for Vietnam and the EU.

The agreement will remove “99% of its import duties over a ten-year period, and the EU will do the same over seven years.” Vietnam will lift 49% of its import duties on EU exports and let the rest expire over a 10-year period. The APC provides that human rights, democracy and the rule of law are “essential elements” of UE-Vietnam relations as a whole. Therefore, the link between the free trade agreement and the CPA is important to ensure that human rights are also part of the trade relations between the parties. The central element of the TUE IS The near-total abolition of tariffs between the EU and Vietnam, including the abolition of more than 99% of tariffs in ten years.

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