___________________________________________________________________________

2017/SOM3/DIA/011

Viet Nam Biz and the Free Trade Agreements Negotiations

Submitted by: Vietnam Chamber of Commerce and Industry

Dialogue on Regional Trade Agreements and Free Trade Agreements

Ho Chi Minh City, Viet Nam 27 August 2017

NGUYEN  Thi Thu TrangDirector of the Center for WTO and Economic  IntegrationViet Nam Chamber of Commerce and Industry

Viet Nam Biz and the FTAs negotiations

Contents

2

How have Viet Nam Biz beendoing?

What are they expecting?

01 02

wtocenter.vn

How have Viet Nam Biz been doing in

previous FTA negotiations?

3wtocenter.vn

A panorama on Viet Nam RTA ‐ FTA negotiations

wtocenter.vn

ASEAN Free Trade  Agreement  

(AFTA/ATIGA)

2006 ASEAN –Korea Free Trade  

Agreement (AKFTA)

ASEAN – Japan  Comprehensive  

Economic  Partnership (AJCEP)

Viet Nam –Japan  

Economic  Partnership  Agreement  (VJEPA)

ASEAN–India Free  Trade  

Agreement  (AIFTA)

Viet Nam– Chile Free  

TradeAgreement  (VCFTA)

1996

20102006

2008

20152009

ASEAN‐Australia‐New Zealand Free  Trade Agreement  

(AANZFTA)

2012

Negotiations that VN biz hadvoice

2017

Viet Nam– Korea 

Free  Trade  Agreement  (VKFTA)

t

2004ASEAN – China Free  Trade Agreement  

(ACFTA)

2016

Viet Nam –EAEU Free  Trade  

Agreement  (VN‐EAEUFTA)

??? Trans‐PacificPartnership (TPP)

4

??? ASEAN ‐Hong Kong, China FTA

??? Viet Nam‐EFTA Free Trade  Agreement

??? Viet Nam‐Israel Free Trade  Agreement

??? Regional  Comprehensive  Economic  Partnership (RCEP)

??? Viet Nam –EU  Free Trade  Agreement (EVFTA)

VN Biz could have voice

5

Thanksto

The decision of the Government to let them join:Title:  

Year:

Decision No 06/2012/QD‐TTg of the Prime Minister  

2012

Content: The FTA Negotiating Delegations are to consult mandatorily with the Biz  before and during the negotiations

Ways: Comments sent directly to the FTA Negotiating Delegations orthrough VCCI

wtocenter.vn

VN Biz could have voice

6

Thanksto

The information on the FTA drafts made known to the biz

‐ By the Gov: Normally confidential draft of tariff offer

‐ By the Media: SOEs, Environment, Subsidies, Labor

‐ By Wikileak: IP, ISDS

wtocenter.vn

06 recommendations of VN biz (VCCI) on TPPGeneralServicesTariffs

IPInvestment (including ISDS)  Labor

VN Biz could not have strong voice

8

Dueto The complexity of the FTAs contents, while

wtocenter.vn

77%

88%

83%

94%

97%

12%

12,70%

8,50%

16,40%

21,70%

VKFTA

TPP

EVFTA

AEC

WTO

‐ Biz are not source of initiatives‐ Biz are not familiar with FTA issues

Know well the concerned content Have heard about

(Source: VCCI Survey taken April 2016)

VN Biz could not have strong voice

9wtocenter.vn

88,52%

70,48%

80,95%

95,33%

96,35%

94,77%

88,73%

91,84%

More opportunities than threats to enterprisesMore competitive

New opportunities for enterprises

Opportunities for entering foreign markets of…

More opportunities than threats to economy

Motivation for reforming authorities

Opportunities for attracting FDI of Viet Nam

Opportunities for attending global value chain

Dueto

The confidentiality of the FTAs negotiations

Impacts of FTAs to economy and enterprises

VN Biz could not have strong voice

10

Dueto

The defaut of biz attention and understanding on FTA issues

‐ Tiny biz often care about micro things

‐ Small biz often have short visions

wtocenter.vn

What Vietnamese Biz are expecting to be moreinclusive?

11wtocenter.vn

They need information- On the negotiation

schedules and developments

- On the core issues of discussion

Thus, improvements shouldbe made as to:- Press release after

negotiations rounds/meetings

- Negotiations agenda andschedules

- Guidances of negotiators on the meaning ofcommitments 12wtocenter.vn

www.wtocenter.vn

VCCI Quarterly Magazine on FTA and Trade

They need to be morecapable

15

‐to understand the issues‐to analyse their potential  impacts‐to make better  arguments pro and contre

Thus, technical assistance  should be provided to biz  in:‐ raising awareness‐ building capacity‐ taking action together(through biz associations)

wtocenter.vn

They need to be inclusive in the

implementation phrase as:

- The transmission from commitments into domestic rules might be a new occasion for biz

- The rules might have a real life different from those in the text

Thus, like in negotiation, inimplementation VN biz need:

- To be informed

- To be technically assisted 16

17

Thank youNguyen Thi Thu TrangCenter for WTO and Economic Integration  Viet Nam Chamber of Commerce andIndustry  9 Dao Duy Anh Str., Hanoi, Viet Nam  secretariat@wtocenter.vn

wtocenter.vn