Vietnam Free Trade Agreements List: Understanding the Country`s Trade Relations
Vietnam has been one of the fastest-growing economies in Southeast Asia in recent years. With a population of over 96 million people and a strategic location neighboring China and other major Asian markets, Vietnam is a key player in the global economy. To enhance its trade relations with other countries and increase its economic growth, Vietnam has signed several free trade agreements (FTAs) with nations around the world. In this article, we`ll explore the Vietnam free trade agreements list and what they mean for the country`s economy.
1. ASEAN Free Trade Area (AFTA)
The ASEAN Free Trade Area (AFTA) is a trade bloc created in 1992 that comprises ten member countries in Southeast Asia, including Vietnam. AFTA aims to reduce tariffs and other barriers to trade between member countries, promoting regional integration and economic growth. As a member of AFTA, Vietnam benefits from lower tariffs on goods traded with other Southeast Asian nations.
2. Vietnam-China FTA
The Vietnam-China Free Trade Agreement (FTA) was signed in 2008 between the two countries, which have a long history of commercial relations. The agreement aims to eliminate tariffs on a wide range of goods traded between Vietnam and China and increase bilateral trade. The China-ASEAN FTA, which also includes Vietnam, complements this agreement by reducing trade barriers between China and Southeast Asian nations.
3. Vietnam- Japan Economic Partnership Agreement (VJEPA)
The Vietnam-Japan Economic Partnership Agreement (VJEPA) was signed in 2008 and came into effect in 2009. The agreement aims to promote trade and investment between the two countries by reducing tariffs on a range of goods and services, increasing investment flows, and improving intellectual property protection. Japan is one of Vietnam`s biggest investors, and the VJEPA has further strengthened their economic ties.
4. Vietnam-European Union Free Trade Agreement (EVFTA)
The Vietnam-European Union Free Trade Agreement (EVFTA) was signed in 2019 after years of negotiations. The agreement aims to eliminate tariffs on 99% of goods traded between Vietnam and the EU, increase market access for businesses, and improve intellectual property protection. The EVFTA is expected to boost Vietnam`s exports to the EU, creating new opportunities for Vietnamese businesses and strengthening economic ties with the EU.
5. Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)
The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is a trade agreement between 11 countries, including Vietnam, that came into effect in 2018. The agreement aims to reduce tariffs and other barriers to trade between member countries, including Japan, Mexico, Canada, Australia, and New Zealand. The CPTPP provides Vietnam with greater access to these markets, boosting its exports and creating new opportunities for Vietnamese businesses.
In conclusion, the Vietnam free trade agreements list demonstrates the country`s commitment to promoting trade and investment with other nations, which is critical to its economic growth. These agreements provide Vietnamese businesses with greater access to new markets, lower trade barriers, and improved intellectual property protection. As a professional, it`s essential to keep an eye on these trade agreements` developments and their impact on Vietnam`s economy.