JVEPA / FTA
Japan – Vietnam Economic Partnership Agreement (JVEPA)
Minister of Economy, Trade and Industry of Japan, Mr. Nikai and Minister of Trade of Vietnam, Mr. Truong Dinh Tuyen had a talk at a high-level meeting in the Asia-Pacific Economic Cooperation Forum held in November 2005 in Pusan. In the talk, the two parties agreed to carry out discussions on EPA. In October 2006, in the talk between high-ranking officials of Vietnam and Japan, the two parties agreed to start negotiation from January 2007. On 25 September 2008, the negotiation finished and the Agreement was officially signed on 25 December 2008. Prime Minister Nguyen Tan Dung signed Decision no. 57/2009/QD-TTg dated 6 April 2009 to approve the Japan-Vietnam Economic Partnership Agreement (JVEPA) and its Implementation of the Agreement between the two countries based on the JVEPA. The JVEPA officially took effect on 1 October 2009.
The Agreement boosts cooperation between the two countries in many areas such as: goods, services, investment, business climate improvement, human resource transfer, technical transfer, etc. Under this Agreement, 92% of goods exchanged between the two countries will enjoy tax exemption and reduction within 10 years from the date of validity of the Agreement.
The Agreement also agrees to advance Supporting Industries (SI) for both Japanese and Vietnamese enterprises operating in fields of automobile, motorbike and electric-electronics in Vietnam.
Under this framework, we both two representative offices in Hanoi and Ho Chi Minh Cites in cooperation with Vietnamese counterparts hold Vietnam - Japan Exhibition on Supporting Industries every year Vietnam-Japan Exhibition on Supporting Industries
Full version of Japan-Viet Nam Economic Partnership Agreement
ASEAN Free Trade Agreement and ASEAN + 1
(1)AFTA (ASEAN Free Trade Agreement)
Took effect in Vietnam from January 1996 (ASEAN-6 took effect since 1993).
New members (CLMV) plan to remove tariffs in 2015. (Older members will remove in 2010).
(2)ACFTA ( ASEAN – China Free Trade Agreement)
This agreement for goods trading took effect in January 2005.
New members (CLMV) plan to remove tariffs in 2015 (Older members will remove in 2010).
(3)AKFTA (ASEAN – Korea Free Trade Agreement)
This agreement for goods trading took effect in June 2007.
Vietnam plans to remove tariffs in 2016 (Older members will remove in 2010; CLM will remove in 2018).
(4)AJCEP (Japan-ASEAN Comprehensive Economic Partnership Agreement)
Full version of the Agreement
The framework of the Agreement on Comprehensive Economic Partnership between Japan and ASEAN was signed in October 2003. The negotiation started in April 2005 and it was concluded in November 2007. In April 2008, 10 ASEAN countries and Japan finished the signing. The Agreement between Japan and Singapore, Vietnam, Myanmar, Lao came into effect on 1st December 2008 and then followed by the Agreement with Brunei (1st January 2009), with Malaysia (1st February 2009), with Thailand (1st June 2009) and with Cambodia (1st December 2009)
It’s planned to remove tariff for items equally to 91% of export value from Japan to ASEAN countries in 2007; 93% of export value from ASEAN countries to Japan in 2007 within 10 years from the date of validity of the agreement.
(5)AANZFTA (ASEAN – Australia – New Zealand Free Trade Agreement)
Took effect from January 2010 in some countries. (in Vietnam, it took effect already)
(6)AIFTA (ASEAN – India Free Trade Agreement)
Took effect from January 2010 in some countries. (not in Vietnam yet)
Japan - Vietnam Investment Agreement
- Ministry of Foreign Affairs of Japan: Japan-Viet Nam Relations
- Japan-Vietnam Investment Liberalization, Promotion and Protection Agreement
The Agreement was signed by Minister of Planning and Investment of Vietnam Mr. Vo Hong Phuc and Minister of Foreign Affairs of Japan Ms. Kawaguchi on 14 November 2003 and officially came into effect on 19 December 2004. The Agreement aims at creating a favorable investment climate for enterprises of the two countries. Two main contents of the Agreement are: (1) “National Treatment” – equal treatment to counterpart’s enterprises and local enterprises; (2) “Most Favored Nation Treatment” – equal treatment to counterpart’s enterprises and enterprises of a third country with favored conditions. The Vietnam - Japan Investment Agreement is the next one of high level after the Korea - Japan Investment Agreement (which took effect from January 2003). The Agreement supplements previous agreements including the regulation prohibiting performance requirement; regulation on guarantee of National Treatment and Most Favored Nation Treatment, in principle, at the stage of pre-investment. On the other hand, based on demand of investors, the Agreement also includes regulations on intellectual property protection which is not included in other investment agreements. At the same time, the Agreement also guarantees that incentives offered are not lower than in the US-Vietnam Trade Agreement (which became valid from December 2001).