Table of Content Introduction...7 Chapter 1: Overview of the Free Trade Agreement FTA...8 I.. What it means to be Vietnam to participate in free trade agreements:...10 II.. Accordingly,
Overview of the Free Trade Agreement (FTA)
What is a Free Trade Agreement(FTA)?
Before we can learn about the Free Trade Agreement, we need to understand what Free Trade means and who came up with this hypothesis.
Free trade is a largely theoretical framework in which governments impose no tariffs, taxes, or duties on imports or quotas on exports It stands in opposition to protectionism, a defensive policy aimed at shielding domestic industries from foreign competition In reality, however, governments that pursue broadly free-trade principles still implement some controls on trade, applying measures to regulate imports and exports despite an overall openness to international commerce.
In principle, free trade on the international level is no different from trade between neighbors, towns, or states However, it allows businesses in each
1 https://www.thoughtco.com/free-trade-definition-theories-4571024
FREE TRADE AGREEMENT country to focus on producing and selling the goods that best use their resources
Some firms import goods that are scarce or unavailable domestically, supplementing local production with foreign trade This blend of domestic output and imports can accelerate economic growth and better meet consumer needs.
2 Free trade agreement (FTA) definition:
A free trade agreement is a treaty among two or more nations designed to boost cross-border trade by reducing barriers to imports and exports Under such an agreement, government tariffs, quotas, subsidies, and prohibitions are lowered or eliminated, allowing goods and services to move more freely across borders The result is improved market access for businesses, lower costs for consumers, and greater competition, supported by standardized rules and dispute-resolution mechanisms that help maintain fair trade relations.
How a Free Trade Agreement Works
In the modern global economy, free trade policy is typically implemented through formal, mutually agreed arrangements among the nations involved, outlining tariff schedules, rules of origin, and dispute mechanisms to facilitate cross-border commerce Yet free trade can also be understood as the absence of trade restrictions, meaning goods and services can move between countries with minimal barriers.
A government does not need to take specific action to promote free trade This hands-off stance is referred to as "laissez-faire trade" or trade liberalization.
Governments pursuing free-trade policies or signing free trade agreements (FTAs) do not automatically relinquish all import and export controls or eliminate protectionist measures In today’s global economy, few FTAs deliver fully liberalized trade, with governments often maintaining selective tariffs, quotas, and regulatory protections that prevent a truly free trade environment.
In trade policy, a country can engage in free trade with other nations while maintaining safeguards For example, it may ban the import of drugs that regulators have not approved, prohibit the import of unvaccinated animals, and exclude processed foods that do not meet its safety and quality standards.
Alternatively, it might have policies in place that exempt specific products from tariff-free status to protect home producers from foreign competition in their industries.
2 https://www.investopedia.com/terms/f/free-trade.asp
Free Trade Agreement in Vietnam
FTAs that Vietnam has participated in
Up to November, 2020, Vietnam has participated in 13 FTAs, there is 1 FTAs has not ratifield and 2 FTAs are negotiating.
The table below show FTAs that Vietnam has participated in:
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10 VN – EAEU FTA Effective from
Effective from 30/12018, effective in Vietnam from 14/1/2019
Vietnam, Canada, Mexico, Peru, Chile, New Zealand, Australia, Japan, Singapore, Brunei, Malaysia
Hong Kong, Laos, Myanmar Thailand, Singapore, Vietnam from 11/06/2019
1 Vietnam – EFTA FTA Start of negotiations in May 2012
Vietnam, EFTA (Switzerland, Norway, Iceland, Liechtenstein)
2 Vietnam – Israel FTA Start of negotiations in December 2015
(Source: Trung tâm WTO và Hội nhập)
Vietnam and EVFTA
EVFTA
The EU-Vietnam Free Trade Agreement (EVFTA) is a new generation FTA between Vietnam and 28 European Union member states.
It is a comprehensive and high-quality agreement that ensures balanced benefits for Vietnam and the EU, considering the differences in development levels between the two sides.
Upon entering into force, the EVFTA is expected to be a huge boost to
Vietnam's exports, helping to diversify markets and exports, particularly agricultural and aquatic products as well as Vietnamese products with competitive advantages 4
4 https://en.nhandan.org.vn/evfta/
The Prime Minister of Vietnam and the President of the European Commission agreed to start negotiations on the EVFTA.
The Vietnamese Minister of Industry and Trade and the European Commissioner for
Trade officially announced the negotiations on EVFTA.
Negotiations on the agreement concluded and legal review began to prepare for the signing of the agreement.
The legal review process for the EVFTA at technical level completed.
The European Union has urged Vietnam to separate the investment protection provisions and the investor-state dispute settlement (ISDS) mechanism from the EVFTA to form a standalone agreement, amid concerns over the EU’s competence to ratify FTAs Under this proposal, the EVFTA would be divided into two separate agreements: the EVFTA itself and a dedicated agreement on investment protection and ISDS.
Vietnam and the European Union have officially agreed to separate the EVFTA into two agreements—the EVFTA and the IPA—strengthening their framework for trade and investment They have completed the full legal review of the EVFTA and agreed on all contents of the IPA, signaling concrete progress on both instruments This move aims to enhance market access, investment protection, and bilateral cooperation between Vietnam and the EU.
The legal review of the IPA completed.
The European Commission officially adopted the EVFTA and IPA.
The European Council approved the signing of the agreements.
The EVFTA and IPA were officially signed in Hanoi.
The two deals will be submitted to the European Parliament for consent The EVFTA is expected to be approved by the EP later this year or in early 2020, while the IPA is projected to require at least two years to be ratified by the EP and by member parliaments.
The EVFTA is a win-win trade deal with balanced benefits for both Vietnam and the EU, which complies with the provisions of the World Trade Organisation (WTO).
The main contents covering the following aspects:
Under the EU–Vietnam Free Trade Agreement (EVFTA), Vietnam’s exports face immediate duty elimination on about 85.6% of tariff lines, representing around 70.3% of Vietnam’s export turnover to the EU After seven years from the agreement’s entry into force, the EU will eliminate duties on 99.2% of tariff lines, accounting for approximately 99.7% of Vietnam’s export turnover The remaining 0.3% of export turnover will be covered by a tariff-rate quota with a 0% import tax inside the quota.
Under the EU–Vietnam Free Trade Agreement, Vietnam commits to eliminating tariffs on EU exports At the agreement's entry into force, 48.5% of tariff lines were tariff-free, representing 64.5% of EU import turnover After seven years, 91.8% of tariff lines are eliminated, equivalent to 97.1% of EU export turnover After ten years, approximately 98.3% of tariff lines are eliminated, accounting for 99.8% of EU import turnover About 1.7% of remaining EU tariff lines will follow a tariff-elimination schedule of more than ten years or be subject to tariff quotas under WTO commitments.
Trade in services and investment:
Within five years from the date of entry into force of the Agreement, Vietnam commits to consider favorably allowing EU credit institutions to increase their foreign holding to 49% of the charter capital in two Vietnamese joint-stock banks; however, this commitment does not apply to the four joint-stock banks in which the state holds a majority stake, namely BIDV, Vietinbank, Vietcombank, and Agribank.
Insurance services: Vietnam commits to allow cross-border reinsurance, commits to voluntary health insurance services under Vietnamese law As for the
FREE TRADE AGREEMENT requirement to allow the establishment of a reinsurance branch, we only allow it after a period of transition.
Telecommunications services are offered with the same commitment level as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) Specifically, for value-added telecommunications services that do not require network infrastructure, we enable the European Union to establish 100% foreign-owned enterprises after a transition period.
Distribution services: We will remove the economic needs test five years after the Agreement enters into force, while reserving the right to implement a non-discriminatory distribution system planning trial We also commit to non-discrimination in the production, import, and distribution of alcohol, allowing EU businesses to maintain their current licenses and operate under a single license for import, distribution, wholesale, and retail activities.
Vietnam and the EU agreed on equivalent contents to the Government
Under the WTO's Government Procurement Agreement (GPA), Vietnam will adopt obligations such as online bidding and the creation of a portal to post bidding information, all within a defined roadmap for implementation, while the European Union commits to providing technical assistance to help Vietnam fulfill these commitments.
To promote e-commerce between Vietnam and the European Union, both sides committed not to impose import taxes on electronic transactions They also pledged to cooperate through an ongoing dialogue on e-commerce governance and related management issues.
-Responsibility of intermediate service providers for transmission or storage of information;
Deal with forms of electronic communication in commerce without the consent of the recipient (such as email offers, advertising );
Protect consumers when participating in electronic transactions.
The two sides will also cooperate in exchanging information on domestic laws and regulations and related enforcement issues.
Both sides reaffirm their commitment to sustainable development across its three pillars—economic growth, social development, and environmental protection As members of the International Labour Organization, they pledge to uphold, promote, and implement the 1998 ILO Declaration on Fundamental Principles and Rights at Work, including advancing the ratification and effective enforcement of the Core ILO Conventions to safeguard labor rights worldwide.
Conventions: The two sides also agreed to deepen cooperation by establishing information- and experience-sharing mechanisms to promote the ratification and implementation of labor and environmental conventions in key areas, including climate change, biodiversity, sustainable forest management, and the trade of forest products.
Vietnamese intellectual property commitments cover copyrights, inventions, licensing regimes, pharmaceuticals, and related areas, and are designed to be consistent with Vietnamese law The key features of these commitments include broad protection of IP rights across these domains, clear licensing and enforcement frameworks, and alignment with national legal standards to foster innovation, attract investment, and ensure fair access to IP-derived benefits.
Once the agreement takes effect, Vietnam will protect more than 160 EU destinations, including all 28 EU member states, while the European Union will protect 39 of Vietnam’s addresses This reciprocal protection framework strengthens cross-border trade and digital collaboration by clearly defining the scope of protected identifiers on both sides.
FREE TRADE AGREEMENT related to agriculture and products, enabling certain Vietnamese agriculture types to build and format its effects in the EU market.
Regarding the label effect, both sides are committed to a convenient and transparent trademark registration process, including the essential steps for filing and announcing trademarks that have been registered for publication This approach ensures a valid link to the registered trademark, even if the mark is not yet in active use, supporting stronger brand protection and easier enforcement.
Regarding enforcement: The Agreement has provisions on border control measures with exports suspected of infringing intellectual property rights.
Vietnam in EVFTA and other FTAs
5 https://en.nhandan.org.vn/evfta/
Vietnam has a huge supply of agricultural produce, seafood which meet the standards of hygiene and safety.
The processing industry is competitive.
Textile, footwear, and wood manufacturing industry are supposed to be one of the main contributors to economic growth.
Under the EVFTA, Vietnam gains a stable environment that lets businesses protect their brands and drive innovation toward high-quality products This strengthens foreign investors’ trust in protecting intellectual property in Vietnam, encouraging them to establish operations and attract high-quality EU technology investment in key sectors such as agriculture, renewable energy, pharmaceuticals, and machinery.
The EVFTA also creates opportunities for Vietnamese businesses to access the
EU markets For example, the protection of geographical indications will help Vietnamese products increase their presence and sales in the European markets.
Domestic enterprises have difficulty participating in global supply chains and the development of industrial industries due to their lack of ability to meet requirements, especially in product quality.
The knowledge and awareness of businesses about generation FTAs, in general, is still uncertain.
The domestic legal system is incompatible with the new FTAs.
The capacity and scale of the Vietnamese banking industry are still low.
The skills, professional skills of the workers, and technology standards are still low.
Following the signing, Vietnam is poised to attract larger corporations and European investors, fueling growth in the country’s export-driven economy Primitive and artisanal products will be upgraded through high-tech processing and refined manufacturing to deliver higher value-added goods In the long term, these changes will reshape Vietnam’s export structure, strengthening its role in global supply chains and boosting export performance.
Survey results indicate that, provided other factors are favorable, Vietnam's GDP could increase by 23.5 billion USD in 2020 and 33.5 billion USD in 2025 under the CPTPP and EVFTA, while exports are projected to rise by 68 billion USD by 2025.
According to this study, Vietnam may benefit the most among the countries participating in the agreement For the CPTPP, according to the World Bank's forecasts, by 2030, it will increase by 1.1% of GDP; In terms of productivity stimulation, Vietnam's economic growth by 2030 could increase to 3.5%
Compared with a scenario without the EVFTA, simulation results indicate that Vietnam would gain 3.2 billion USD in 2020 and 7.2 billion USD in 2030 In terms of national income, Vietnam’s economy is expected to grow by 2.5%.
Compared with traditional FTAs, new generation free trade agreements eliminate most tariffs on goods traded between Vietnam and partner countries, dramatically boosting Vietnamese exporters’ price competitiveness in the global market against Asian competitors This tariff liberalization creates stronger opportunities for Vietnamese firms to scale exports, improve margins, and integrate into regional value chains.
EVFTA, Vietnam and the EU committed to eliminating 99% of tariff lines The
Under EVFTA, the European Union commits to eliminating 85.6% of tariff lines, while Vietnam commits to removing 65% of its tariffs as soon as the agreement takes effect This milestone matters for linking European markets with Vietnam’s high-potential export sectors and delivering higher profits for exporters compared with some Asian markets A World Bank study on CPTPP implementation projects Vietnam's economy could grow by about 3.5% in 2030, with exports increasing by 6.9% and imports rising by 7.6%.
New-generation FTAs will open more export opportunities for Vietnamese businesses across diverse markets, reduce dependence on any single market, and lower trade and business risks by supporting diversification Vietnam enjoys better market access with lower tariff rates than Canada, Mexico, Chile, and Peru—countries with which it has not yet signed an FTA or bilateral trade agreement In particular, the CPTPP will boost exports to major markets such as Japan and Australia, expanding the reach of Vietnamese goods.
Canada and Mexico play key roles in leveraging the CPTPP to attract foreign investment into the industries and sectors Vietnam needs to develop, while the agreement remains open to other countries and territories, with potential entrants such as Korea, Taiwan, and Indonesia.
EVFTA expands Vietnam’s market access across Southeast Asia, connecting it to countries like Thailand and the Philippines and fueling growth The agreement’s impact is most evident in key subsectors and industries where Vietnam directly benefits—food processing, rice, fruits and vegetables, textiles and footwear, electronics, machinery and equipment—and in select service subsectors, including information and transportation.
Expanding the number of labor agreements ensures Vietnamese workers’ rights are consistently protected, raises workplace standards, and improves support and working conditions, while increasing income by an estimated 45%.
Environmental protection is a core commitment in new-generation FTAs, ensuring sustainable socioeconomic development through effective climate-change response, resource conservation, and pollution reduction The agreements push participating countries to accelerate their environmental initiatives in order to meet the committed environmental standards for export products.
Vietnam's new generation FTAs, underpinned by transparent governance and high standards of public-sector conduct, will strengthen the state management apparatus, drive reform, and enhance accountability and discipline among state employees This momentum will support the renewal of Vietnam's growth model and the broader process of economic restructuring In particular, completing and reinforcing intellectual property rights protection will create opportunities to attract investment in knowledge-intensive fields.
Committing to perfecting the legal system strengthens the ability of its members to contribute to an improved legal and business environment This reform protects domestic and foreign investors from illegal interference, creates a fair playing field for state-owned and private enterprises, and simplifies administrative procedures for doing business It also facilitates the recognition of product standards, opens the public procurement market to enterprises with investment capital from FTA member countries, and enhances transparency in the operations of state agencies.
Protection of IPR of Vietnamese and foreign individuals and businesses.
Free trade agreements (FTAs) bring notable advantages, but they also create serious competitive pressures across national, regional, and global economies Socially, the intensified competition associated with FTAs can affect firms in developing countries, with state-owned enterprises facing particular challenges as they adjust to a more open and competitive environment.
FREE TRADE AGREEMENT enterprises with outdated production technology fall into difficulties, followed by the possibility of unemployment in a part of the labor force.
Students in the age of integration and Innovation
Integration trends of country in the coming time
At the Party’s ninth Congress, the focus shifted to a policy of proactive integration into the regional and international economy for the first time In the ensuing years, international economic integration and active participation in free trade agreements (FTAs) have consistently been outlined in the party’s strategic directives and policy documents, guiding the nation’s engagement with global markets, investment flows, and regional cooperation.
Resolutions and Directives of the Party and Government.
From the Resolutions and Directives, the Party and the Government have distilled the core guiding views for international economic integration and joining free trade agreements (FTAs) These principles advocate a rules-based, open, and balanced path that strengthens national competitiveness while protecting strategic industries and social welfare They call for FTAs to align with sustainable development, high-standard commitments on investment, intellectual property, and labor and environmental protections, and for orderly, step-by-step integration that supports domestic reform They emphasize enhancing institutional capacity, governance, and policy sequencing to manage transitions, safeguard sovereignty, and ensure that the benefits of global and regional trade are broadly shared Together, these guidelines shape negotiation strategies, implementation plans, and oversight mechanisms to maximize gains from deeper economic integration.
Economic integration is the central objective, with progress in other sectors designed to accelerate economic growth, strengthen national defense, and safeguard national security These efforts should also preserve and promote national cultural identity while advancing cultural and social development Across all fields, integration must be pursued synchronously as part of a comprehensive international integration strategy, supported by a clear roadmap and concrete steps tailored to the country’s actual conditions and capacity.
Secondly, we will proactively integrate into the regional and international economy by maximizing internal resources and improving the efficiency of international cooperation We will safeguard independence, autonomy, and socialist orientation to protect national interests, national security, environmental protection, and preserve national cultural identity.
Accelerate reform of economic institutions, governance mechanisms, and policy frameworks to align with Party and State directions Actively forge new partnerships and participate in negotiations to advance bilateral, regional, and multilateral economic cooperation By driving structural reforms and collaborative diplomacy, unlock sustainable growth and resilience across economies.
Fourth, develop and implement a comprehensive strategy to engage in free trade areas with key economic partners, integrating this effort into a master plan with a clear, achievable roadmap aligned with national interests and capabilities Proactively formulate and enforce measures to protect the State, domestic enterprises, and consumers, safeguarding their legitimate rights and interests.
Focus on expanding and deepening strategic partnerships, especially with partners whose cooperation is vital to the country’s development and security, and implement the established framework of relations to create a sustainable, mutually beneficial alignment of interests between the nation and its partners.
Active participation in multilateral institutions helps build a fair, democratic political and economic order, prevent wars and conflicts, consolidate peace, and promote broad cooperation This approach is mutually beneficial, with a particular emphasis on contributing to the ASEAN Community, elevating Vietnam's role in ASEAN, and leveraging ASEAN's mechanisms and forums as a hub to strengthen solidarity and expand intra-bloc linkages We will also deepen cooperation with ASEAN's dialogue partners to advance shared interests and promote coordinated action across the region.
Vietnam has established free trade agreements with most of its major global partners, creating a solid foundation for expanding bilateral trade and investment exchanges This progress also strengthens regional and global economic integration, boosting Vietnam’s participation in international markets.
Opportunities and threats of students in the age of integration
Students gain access to the world's most advanced and up-to-date scientific knowledge systems, rich with information and insight This access not only accelerates learning but also spreads practical teaching, targeted training, and proven educational management practices across regions and around the world, empowering educators and learners to collaborate, innovate, and achieve tangible outcomes.
International collaboration enables universities to refresh and elevate their advanced training programs by adopting curricula from overseas institutions and leveraging international faculty qualifications This diverse, multidimensional approach integrates emerging sciences with the distinctive features of modern training disciplines, enhancing the quality, relevance, and global competitiveness of higher education.
Vietnamese universities can form strategic partnerships with renowned international universities to enrich their academic and research ecosystems, strengthening the capacity of domestic institutions Through joint programs, collaborative research, and on-campus exchanges, students gain access to modern knowledge and high-quality resources without studying abroad, delivering a cost-effective path to global standards These on-campus collaborations expand opportunities for local researchers and students, promote knowledge transfer, and boost Vietnam's higher-education competitiveness.
Aid sponsors support Vietnam's higher education system through a diverse mix of organizations, financial institutions, governments, NGOs, and nonprofit organizations They fund a series of development projects, educational programs, and investments in science and technology to enhance facilities, equipment, and instructional practices, ultimately expanding learning opportunities for students.
The training program has been renewed in line with, standardized with the international program
Vietnamese students can strive to win scholarships to study abroad with their own talents.
These opportunities have fostered government foreign affairs, enhanced cultural exchanges, dialogues, and exchanges this is also the soft power of the new era between peoples and nations Area.
Today, as international integration accelerates, students face significant challenges in education, professional qualifications, economic literacy, and management skills that are not yet up to global standards Although students’ integration capacity and social skills have improved, they still do not fully meet the requirements of an interconnected world A portion of students remains unaware of their roles and responsibilities in a global context, which affects their preparedness to contribute to the country’s human resource quality These gaps in education, skills, and awareness are factors that impact the quality of the workforce during this period of international integration The current difficulties facing students include insufficient academic preparation, limited professional training, uneven economic knowledge, and underdeveloped management competencies.
One of the main challenges in Vietnamese education today is the limited foreign language proficiency among students, which hampers their ability to engage with regional and global science This language gap restricts the application of knowledge and the development of practical skills in classrooms, laboratories, and real-world projects, making it harder for graduates to participate in international collaborations, access current scientific literature, and compete in the global job market Addressing this issue requires strengthening language training, expanding multilingual science resources, and adopting hands-on, inquiry-based teaching approaches that connect theory with practice.
Vietnamese universities is quite limited compared to the need for international training, which is why it has greatly hindered the study of students.
In addition to life skills, Vietnamese students' communication skills have many points to note because they are surrounded by their parents, so they cannot be independent.
Vietnam's education system remains heavily theory-based, with practical training still underdeveloped This creates a significant disadvantage for students, as global educational trends increasingly prioritize hands-on, practice-oriented learning Without more opportunities for experiments, internships, and real-world projects, graduates may struggle to apply theoretical knowledge in the workplace, limiting their competitiveness in the world market.
Knowledge, Skill, Attitude that IB students need
As globalization and regional integration reshape the economy, international business is increasingly recognized as a vital field of study Proficiency in a foreign language is a key asset for anyone pursuing this discipline, enabling effective communication across borders and cultures To maximize your potential and build a lasting career in international business, a genuine passion for the field is essential That passion provides the drive to work hard and stay resilient in the face of market fluctuations and real-world challenges.
2 Communication, ability to persuade others
Succeeding in international business requires sophistication, flexibility, deep knowledge, and extensive cross-cultural social experience This foundation enables effective communication, rapid conflict resolution, and superior negotiation outcomes with partners and customers around the world.
Creativity is a core skill for professionals in international business, helping you develop robust development plans for your company in global markets Creativity doesn't merely appear; it crystallizes through a continuous cycle of learning, observing, and thinking, fueling innovative strategies and adaptable solutions At the same time, a confident and assertive attitude when handling work is a critical requirement that strengthens decision-making, collaboration, and leadership in cross-border environments.
4 The ability to collect and process information
Information literacy is one of the most important qualities in today’s business environment, especially in international trade, where information is diverse and continually changing To process this information effectively, professionals must know how to identify relevant sources, evaluate quality, and select data that supports timely, informed decision-making.
Free Trade Agreement: essential market intelligence enables timely and effective investment projects, cooperation, and business development In international business, success isn’t only about meeting basic criteria; it also requires the ability to perform under pressure in a competitive environment and a deep understanding of culture, history, people, and law.
Vietnam's latest report provides a clear view of its strengths and weaknesses in the new era, showing strong potential for international integration and sustained economic development alongside meaningful challenges ahead The analysis highlights ample opportunities to deepen regional and global participation, boost trade, and drive innovation-led growth To translate these opportunities into durable progress, it proposes practical solutions such as investing in infrastructure and human capital, improving governance and institutions, strengthening the financial system, and enhancing private-sector competitiveness—measures designed to help Vietnam overcome obstacles and rise toward the level of developed economies With targeted reforms and strategic investments, Vietnam can boost productivity, attract investment, and narrow the gap with other advanced nations.
From the integration and development trends in international business, career prospects are expanding across the industry These trends offer practical experiences and actionable lessons that help define clear development directions for students and current learners By aligning curricula with in-demand skills—such as cross-cultural communication, global trade practices, and digital collaboration—the current generation can position itself to lead in the global marketplace in the future.
Tổng hợp các FTA của Việt Nam tính đến tháng 11/2020
Vu Van Dien (2019) , Viet Nam và các hiệp định thương mại tự do thế hệ mới, Tạp chí Tài Chính, Bài đăng trên Tạp chí Tài chính kỳ 2 tháng 7/2019
Ban chỉ đạo 35 của Bộ Công Thương (2020) nhấn mạnh hội nhập kinh tế quốc tế là hướng đi đúng đắn và sáng suốt mà Đảng đã lựa chọn cho phát triển kinh tế đất nước, do Bộ Công Thương Việt Nam lãnh đạo và triển khai thực hiện.