Vietnam - EU Investment Protection Agreement (EVIPA)

15/06/2020, 06:13 AM

The Vietnam Investment Protection Agreement - UE (EVIPA) will provide a good basis for the expansion of investment and trade opportunities between the two sides; and it will also be a driving force for Vietnam to continue reforming and improving its ability to attract investment.

The Ministry of Planning and Investment said that the implementation of commitments under the EVIPA Agreement, which was just approved at the 9th Session, National Assembly XIV, will be the impetus for Vietnam to continue improving institutions and policies. in order to improve the investment and business environment in the direction of increasing convenience, equality, safety, transparency and friendliness of investors of all economic sectors.

Along with commitments on opening markets for goods, services and investment under the EU-Vietnam Free Trade Agreement (EVFTA), the implementation of the EVIPA Agreement will create a favorable environment for Vietnam. Vietnam has stepped up attracting investment in some areas where the EU has potential and strengths because the degree of liberalization of EU investment in Vietnam will be increased, especially in some distribution service industries. Processing and manufacturing industries using high technology, clean energy and renewable energy.

In addition, investment from UE in these areas can support the development of the domestic economic sector. Through the production link with EU-invested enterprises, domestic enterprises will have the opportunity to participate in the EU and global supply chains, to transfer technology and skills, thereby receiving spillover effects on technology, improving productivity and quality, contributing to increasing the competitiveness and efficiency of the economy.

According to the Ministry of Planning and Investment, the provisions of the EVIPA Agreement are elaborated, with clear criteria, recognizing each party's right to issue and implement policies. This will contribute to ensuring that the provisions of the EVIPA Agreement are understood and applied consistently, helping to minimize the possibility of a dispute occurring.

On the other hand, the establishment of a permanent dispute settlement mechanism under the EVIPA Agreement to resolve disputes between the state and investors of a party is considered a new step compared to the arbitration mechanism of dispute resolution. according to each case that Vietnam has applied under 66 bilateral agreements on encouragement and investment associations that have been signed for nearly 30 years.

The above challenges require the State and business community to implement comprehensive and comprehensive solutions to maximize the benefits of EVIPA and EVFTA.

Accordingly, specific solutions are to continue improving the legal and institutional system to implement the Agreement in the direction of transparency of market access conditions for people and businesses, including enterprises with capital. Foreign investment through the reduction of conditions for business investment in general and market access conditions of foreign investors in particular.

In addition, Vietnam needs to improve its economic competitiveness and readiness to take advantage of opportunities from the Agreement. Accordingly, it is necessary to continue implementing solutions to develop infrastructure and services; developing high quality human resources; improve the system of standards and technical regulations on products, environment and resources in accordance with regional and world standards to attract high-quality investment projects to support development. of Vietnamese businesses and consumer protection.

Source: Bao Chinh Phu