Enhanced protection and conditions for EU entrants

25/08/2020, 10:49

August 1 has become a historic milestone for EU-Vietnam relations as the EU-Vietnam Free Trade Agreement (EVFTA) officially came into force to have a major impact on the economy and the legal system of Vietnam.

Firstly, the EVFTA has and will have a far-reaching impact on the legal system of Vietnam. Before it could come into effect, two important domestic laws – the Law on Investment and the Law on Enterprises – had to be adjusted. Specifically, a myriad of conditional business lines have been cut, opening the doors for EU businesses in areas where it used to be very challenging to invest in Vietnam.

Furthermore, many cumbersome administrative procedures were struck down to create a simpler and more efficient business environment. For instance, regulations have been simplified for livestock breeding, which is one of the industries of interest for European businesses highlighted in the EVFTA. These changes removed many unnecessary conditions and stages of quality inspection for imported livestock products.

Another highlight is the protection of intellectual property rights. The first issue of note is geographical indications (GIs). Specifically, Vietnam has agreed to provide legal protection for 169 GIs from the EU. Indeed, this is important for the EU, since products bearing GIs bring great benefits to EU countries from money to reputation, especially in the sectors of wine, agricultural products, foodstuff, and spirits which have accounted for a large part of the value of the EU’s exports.

Hence, the protection of GIs from the EU means the protection of the rights and interests of EU enterprises. This will help European businesses not only expand their markets to Vietnam but also give them the right to deal with infringements and unauthorised use of GIs by other parties or failure to meet the standards of goods derived from products bearing GIs. The GIs now enjoying protection in Vietnam include well-known indications such as French Champagne, Greek Feta, Italian Parmigiano Reggiano, Spanish Rioja, and Scottish Whisky.

However, there are some exceptions in the EVFTA. For example, during the 10-year transition period from the date of entry into force of the agreement, the protection of the GI “Champagne” does not prohibit the use of this indication nor the translation or transcription of the indication in Vietnamese territory as long as it is used in a fair and commercial manner for a product in the class of “wine”.

In addition, through the EVFTA, Vietnam made a commitment to extend the protection for industrial design (ID) by acceding to the Geneva Act of the Hague Agreement within two years of the EVFTA. With this, Vietnam will protect partial designs.

In addition, within three years of the EVFTA taking effect, Vietnam shall also join the World Intellectual Property Organization to protect the copyright of materials on digital networks by adding regulations for the protection against infringements of technological measures.

In terms of tariffs, since the EVFTA took effect, Vietnam has removed 48.5 per cent of tariff lines on EU goods, equivalent to 64.5 per cent of EU exports to Vietnam. Within seven years from the date of effectiveness, 91.8 per cent of tariff lines (97.1 per cent) shall be eliminated and the rate shall reach 98.3 per cent (99.8 per cent) after 10 years.

Moreover, for the 1.7 per cent of remaining tariff lines, Vietnam has also committed to applying tariffs as described in its World Trade Organization (WTO) commitments or apply special elimination schedules. This applies for products like cigarettes, petroleum, beer, cars and components, and motorbikes. For example, motorbikes and motorcycles over 150 cubic centimetres shall be subject to 0 per cent import tariffs within seven and 10 years, respectively. Another instance is cars which have a committed tax reduction schedule of 10 years, except for cars with larger engines.

The reduction of these tariffs will benefit EU enterprises and create a fair business environment between Vietnamese and EU companies.

In terms of market access, the elimination of customs duties on goods exported from the EU have created many opportunities to access the Vietnamese market and open the road for EU enterprises to invest in Vietnam. Besides, EU enterprises have great expectations in the pharmaceutical market in Vietnam. Since the EVFTA, customs duties were abolished for around half of the pharmaceutical products imported from the EU and the rest shall be duty-free within seven years. This provides far more access for EU enterprises.

For services, apart from those lines subject to WTO commitments, Vietnam has made deeper commitments in the EVFTA by opening many more sectors.

The EVFTA brings many opportunities for EU enterprises in the Vietnamese market. This has shown an aspiration for deeper integration and trade relations with the EU and for developing relations for sustainable development in the future.

Source: VIR


Related articles

(0) Comments
Focus
The Fall of the Giants
BTO-Both "giants" Liverpool and Arsenal recently played their Carabao Cup semi-final first-leg matches. While Liverpool faced Tottenham, Arsenal hosted Newcastle. Both teams suffered defeats—Liverpool lost 0-1 to Tottenham, and Arsenal were beaten 0-2 at home by Newcastle.
Do not miss
  • A New Race Begins
    28 yesterday Sports
    BTO-“I grew up in a poor rural area, where life was full of challenges and hardships. And yet, here I am now, standing here, with this great award and joy!” Vinicius Jr spoke these heartfelt words during the 2024 FIFA The Best Awards...
  • “CR7- An U40 Machine Gun”
    28 yesterday Sports
    BTO-On December 15, 2024, just a few days after their victory over Al-Gharafa in Round 12 of the Saudi Pro League, Cristiano Ronaldo (CR7) continued to score, adding two more goals to his impressive career during a stellar performance...
  • Another Painful Defeat
    28 yesterday Sports
    BTO-The press conference before the fight between Fury and Usyk was full of drama, culminating in the longest “staring” in boxing history: 12 minutes. Although the unprecedented staredown ended, after 12 rounds of fighting, the victory...
  • Missing Van Gol
    29 yesterday Sports
    BTO-The defeat to Nottingham Forest at Old Trafford marked Manchester United’s second consecutive loss under Amorim, sinking the “Red Devils” into the bottom half of the Premier League table. More than ever, MU fans miss the passionate...
  • Recognition Ceremony for Dinh Mountain and Hoai Duc Victory Monument as Provincial Historical Sites
    29 yesterday Culture
    The Department of Culture, Sports, and Tourism, in collaboration with the People’s Committee of Duc Linh District, recently held a ceremony to award the provincial historical site recognition certificates to Dinh Mountain and the Hoai...
  • Partnerships to Unlock Tourism Potential
    one month ago Travel
    BTO - Building on their unique potential and advantages, the provinces of Binh Thuan and Dong Nai are aiming to establish links and cooperation to promote sustainable tourism development in the near future.
  • A Harsh Reality for Ruben Amorim
    one month ago Sports
    BTO-After leading Manchester United to two consecutive victories, Ruben Amorim faced his first major challenge as manager in a match against Arsenal in the 14th round of the Premier League. The match ended in disappointment, with the...
  • Free-of-charge examination, screening, and surgery for facial deformities offered to underprivileged children
    one month ago Society
    BTO- A chairty program offering free examination, screening, and surgery for facial deformities in support of underprivileged and disadvantaged children in Binh Thuan takes place from December 2 to December 5, 2024.
  • Will Glory Shine Upon Quyet Chien?
    one month ago Sports
    BTO-In the final match of the Billiards Carom 3-Cushion Lux Pro Cup 2024, held in Bình Duong last weekend, Tran Quyet Chien narrowly defeated Tran Thanh Luc to claim the championship. This marked his second consecutive title within...
  • A Dazzling Crowning Moment
    one month ago Sports
    BTO-In the recent Sprint race held on November 30th at the Qatar GP, Max Verstappen finished in first place, further enhancing the brilliance of his F1 championship crown for the 2024 season. This victory came after Verstappen had already...
  • Binh Thuan's OCOP 4-Star Fish Sauce and the Path to International Market
    one month ago Business
    BTO -Fish sauce from Phan Thiet and Binh Thuan is highly praised by local and international consumers for its unique, rich, and full-bodied flavor. This distinctive quality is likely a result of traditional fermentation methods and...
  • Binh Thuan to protect Intangible Cultural Heritage Recognized by UNESCO
    one month ago Culture
    BTO – In 2013, UNESCO recognized Southern Vietnamese Don Ca Tai Tu (DCTTNB) as an intangible cultural heritage of humanity. Binh Thuan is one of 21 provinces and cities with the artistic heritage of Don Ca Tai Tu, contributing to enhancing...
  • Sinner Continues to Shine
    one month ago Sports
    BTO - Shortly after claiming the ATP Finals title, Jannik Sinner continued his winning streak by helping the Italian team win the Davis Cup title against the Netherlands in the final. This victory marked the perfect ending to an extraordinary...
  • Even talent needs a touch of luck
    one month ago Sports
    Before the Premier League match between Manchester United (MU) and Ipswich Town in the 12th round of the 2024-2025 season, all 30,000 seats at Portman Road were sold out, setting the stage for an incredibly energetic atmosphere.
  • Binh Thuan collaborates and partners to promote tourism development
    one month ago Travel
    BTO - Cooperation and linkage in tourism are vital for localities to capitalize on their potential, transform tourism into a leading industry, and enhance contributions to the local economy. Efforts to connect and jointly develop tourism...
  • Binh Thuan to introduce Cham Culture to international tourists
    2 month ago Travel
    BTO – As the peak season for welcoming international visitors is currently triggering in Binh Thuan. The locality has organized a number of activities closely tied to local culture at accommodations to offer guests unique and memorable...
  • Binh Thuan’s leaders received delegation from Jiangsu People's Publishing House
    2 month ago Externat Relations
    BTO -Vice Chairman of Binh Thuan Provincial People's Committee Nguyen Minh hosted a courtesy meeting with a delegation from China’s Jiangsu People's Publishing House, led by Mr. Cao Bin, Deputy Editor-in-Chief of Jiangsu People's Publishing...
  • “Iron Mike” has “softened”
    2 month ago Sports
    Before the match between Mike Tyson and Jake Paul, “Iron Mike” arrogantly told reporters about the result: “I will win resoundingly.”
  • Binh Thuan enhances solidarity by the “National Great Unity Day”
    2 month ago Culture
    BTO -These days, all residential areas in the province are filled with the joyful and bustling National Great Unity Day atmosphere. This is not only a chance for all people to join in the residential community activities and enhance...
  • How long for this perfection?
    2 month ago Sports
    BTO - When legendary coach Jurgen Klopp succeeded Arne Slot in the hot seat of Liverpool, the Kop fans doubted whether Arne Slot could replace Jurgen's "shadow." The answer was confirmed after six months of Arne Slot taking charge when...
POWERED BY ONECMS - A PRODUCT OF NEKO
Enhanced protection and conditions for EU entrants