REPORT CAREER IN INTERNATIONAL BUSINESS FREE TRADE AGREEMENT overview of the free trade agreement (FTA)

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,

TON DUC THANG UNIVERSITY FACULTY OF BUSINESS ADMINISTRATION

REPORT CAREER IN INTERNATIONAL

BUSINESS

FREE TRADE AGREEMENT

INSTRUCTOR: LE DUC NHA

MENTOR: NGUYEN THI TUONG VY

GROUP : 4 – CLASS: 20K70601

Student: VU NGUYEN BAO TRAN NGUYEN TRAN CHAU NGHI NGUYEN THAM PHUONG

NGUYEN DINH VU

HCM city , November 2020

FREE TRADE AGREEMENT

List of member:

FREE TRADE AGREEMENT

FREE TRADE AGREEMENT THANKYOU

Group 4 would like to extend our warmest thanks to the teachers of Ton Duc Thang University and especially the teachers of the Business Administration Faculty for creating conditions for us to complete this presentation We learn in

an environment full of good facilities, abundant resources to research and learn more useful knowledge With learning and teamwork, we create confidence, dynamism, and support each other in terms of knowledge and communication ability

During the implementation process, our group 4 received the help and

dedicated teaching of the teacher Ms Nguyen Thi Tương Vy, Ms Nguyen Thi Hong Hanh, and Mr Le Duc Nha, Ton Duc Thang University We sincerely thankyou for providing essential and rewarding expertise about the industry, giving youguidance on how to do it, and providing a solid foundation for your presentations and reports

During the implementation process, there are certainly many errors and

limitations in the group We hope that after listening to the presentation and reading this report, you and the teachers will have practical suggestions, helping the group to improve our knowledge for better implementation in the following topics Sincerely thank

FREE TRADE AGREEMENT

Lecturer comment

Table of Content Introduction 7

Chapter 1: Overview of the Free Trade Agreement (FTA) 8

I What is a Free Trade Agreement(FTA)? 8

II How a Free Trade Agreement Works: 9

Chapter II: Free Trade Agreement in Vietnam 10

I What it means to be Vietnam to participate in free trade agreements: 10

II FTAs that Vietnam has participated in: 11

Chapter III: Vietnam and EVFTA 13

I EVFTA: 13

II Vietnam in EVFTA and other FTAs: 19

Chapter IV: Students in the age of integration and Innovation: 3

I Integration trends of country in the coming time: 23

II Opportunities and threats of students in the age of integration: 24

III Knowledge, Skill, Attitude that IB students need: 25

Conclusion 27

Reference sources 28

FREE TRADE AGREEMENT

I ntroduction

According to the trend of "Globalization," the relationship between countries

is increasingly established more widely and closely than ever in many fields in the age of integration and development today Vietnam has also caught up with that trend, and our country has made changes to catch up with the current rapid changes in the world

In the early 90s of the twentieth century, international economic integration became a trend of the times, taking place strongly in many aspects with the emergence of many economic and trade blocs in the world For a country with a low and backward economy like Vietnam at that time, international economic integration was the way to shorten the gap with other countries in the region and worldwide and promote the benefits Furthermore, find ways to overcome the limitations through learning from other countries' experiences Moreover, the 6th Congress started the period of national renewal; our Party advocated taking advantage of favorable economic and scientific and technical cooperation

conditions, participating more widely in the assignment and integration

international cooperation in "Council for mutual economic assistance and

expansion with other countries." The Ninth Congress of the Party marked the firsttime our Party has focused on the policy of "proactive integration into the

international and regional economy Accordingly, over the past years,

international economic integration and participation in free trade agreements (FTAs) have always been set out in the resolutions and directives of the Party andGovernment

Thereby, Vietnam has overcome many barriers, difficult regulations to join trade organizations such as ASEAN, WTO, Besides, our country has also signed many cooperation documents, an Agreement of which the most

remarkable is the Free Trade Agreements (FTAs) EVFTA is an important

agreement paving the way for Vietnamese goods to have closer access to this potential market Accordingly, to create more favorable conditions for import andexport expansion, both sides will gradually remove tariff and non-tariff barriers according to the roadmap

Currently, EVFTA is an exciting agreement because of its benefits, but besidesthat, there are also many challenges and difficulties ahead Moreover, because weare also very interested in this current issue, we decided to choose the topic:

" FREE TRADE AGREEMENT

Free trade agreement: EVFTA- Vietnam with opportunities and challenges

on the path of integration "

The research paper includes the following contents:

Chapter I: Overview of the Free Trade Agreement (FTAs)

Chapter II: Free Trade Agreement in Vietnam

Chương III: Vietnam and EVFTA

Chapter IV: Students in the age of integration and innovation

FREE TRADE AGREEMENT

Chapter I:

Overview of the 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

1 Free trade definition

Free trade is a largely theoretical policy under which governments imposeabsolutely no tariffs, taxes, or duties on imports or quotas on exports In thissense, free trade is the opposite of protectionism, a defensive trade policyintended to eliminate the possibility of foreign competition In reality, however,governments with generally free-trade policies still impose some measures tocontrol imports and exports1

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

country FREE

tofocus onTRADE

producingAGREEMENT

andsellingthegoods that best use their resources In contrast, other businesses import goods that are scarce or

unavailable domestically That mix of local production and foreign trade allows economies to experience faster growth while better meeting the needs of their consumers 2

2 Free trade agreement (FTA) definition:

A free trade agreement is a pact between two or more nations to reduce

barriers to imports and exports among them Under a free trade policy, goods andservices can be bought and sold across international borders with little or no government tariffs, quotas, subsidies, or prohibitions to inhibit their exchange

II. How a Free Trade Agreement Works:

In the modern world, free trade policy is often implemented utilizing a formaland mutual agreement of the nations involved However, a free-trade policy may

be the absence of any trade restrictions

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 with free-trade policies or agreements in place do not

necessarily abandon all control of imports and exports or eliminate all

protectionist policies In modern international trade, few free trade agreements(FTAs) result in completely free trade

For example, a nation might allow free trade with another nation, with

exceptions that forbid the import of specific drugs not approved by its regulators,

or animals that have not been vaccinated, or processed foods that do not meet its standards

Alternatively, it might have policies in place that exempt specific productsfrom tariff-free status to protect home producers from foreign competition intheir industries

2 https://www.investopedia.com/terms/f/free-trade.asp

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Chapter II:

Free Trade Agreement in Vietnam

I What it means to Vietnam to participate in free trade

agreements:

Firstly, the new generation FTAs are a viable solution to promote trade and investment liberalization, competition and raise standards to protect intellectual property rights, the environment, and standards Labor, capital, is not specified inthe current agreements of the World Trade Organization

Second, in addition to their strong role in promoting economic integration and links, the new generation FTAs play an important role in raising trade

liberalization

Third, joining new-generation FTAs opens up a new development space with member countries With the new generation, FTAs, countries' development spacehas changed qualitatively; development opportunities are opened in both breadth and depth Member states, therefore, have many options in the new development space This is an opportunity for entrepreneurship, creative development in new fields, industries, and business lines This is especially meaningful for members who are behind in the socio-economic development process

Fourthly, the effective implementation of the signing and implementation ofnew-generation FTAs will contribute to consolidating and ensuring economicsecurity and enhancing member countries' status Strengthening linkages amongmember countries is an effective solution to prevent and combat cyclical orstructural crises, ensuring economic security and sustainability in growth3

II 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:

3 311171.html?fbclid=IwAR2ycwAAwby-fK4ELRIe-xIzIcqU7DnKeY0UJhuNd9-MhdzyeJ2DxEugGmw

http://tapchitaichinh.vn/su-kien-noi-bat/viet-nam-va-cac-hiep-dinh-thuong-mai-tu-do-the-he-moi-NoFREE TRADE AGREEMENT

Partner

FTAs entered into force

1 AFTA Effective from ASEAN

Singapore,Brunei, Malaysia

12 AHKFTA Effective at ASEAN, Hong

Hong Kong, Kong (China)Laos, Myanmar

Thailand,Singapore,Vietnam from11/06/2019

13 EVFTA Effective from Vietnam, EU (27

01/08/2020 member)

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FTA has not ratifield

1 RCEP Signed on ASEAN, China,

November 15 Korea, Japan,

2020 Australia, New

Zealand

FTAs are negotiating

1 Vietnam – EFTA FTA Start of Vietnam, EFTA

negotiations in (Switzerland, Norway,May 2012 Iceland, Liechtenstein)

2 Vietnam – Israel FTA Start of Vietnam, Israel

negotiations inDecember 2015

(Source: Trung tâm WTO và Hội nhập)

FREE TRADE AGREEMENT

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 advantages4

4 https://en.nhandan.org.vn/evfta/

FREE TRADE AGREEMENT

2 Timeline of the EVFTA:

October 2010

The Prime Minister of Vietnam and the President of the European

Commission agreed to start negotiations on the EVFTA.

Negotiations on the agreement concluded and legal review began

to prepare for the signing of the agreement.

agreements, including the EVFTA

June 2018

Vietnam and EU officially agreed to separate EVFTA into two agreements including EVFTA and IPA, completed the entire legal review process of EVFTA and agreed on all contents of the IPA.

15 | Pa ge

0

The twoFREE

dealswillTRADE

besubmittedAGREEMENT

totheEuropean Parliament (EP) for consent The EVFTA is expected to be approved by the EP later this year

or in early 2020 Meanwhile, it will take at least two years for the IPA to be ratified by the EP and member parliaments.

3 Overview about EVFTA:

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 TradeOrganisation (WTO)

The main contents covering the following aspects:

Trade in goods:

For Vietnamese exports, as soon as the Agreement comes into effect, the EU will eliminate import duties on about 85.6% of tariff lines, equivalent to 70.3% ofVietnam's export turnover to the EU After 7 years from the entry into force of theAgreement, the EU will abolish import duties on 99.2% of tariff lines, equivalent

to 99.7% of Vietnam's export turnover For the remaining 0.3% of export

turnover, the EU commits to giving Vietnam a tariff-rate quota with the import tax in the quota of 0%

For EU exports, Vietnam committed to eliminating tariffs as soon as theAgreement came into effect with 48.5% of tariff lines (accounting for 64.5% ofimport turnover) After 7 years, 91.8% of tariff lines, equivalent to 97.1% ofexport turnover from the EU, were eliminated by Vietnam After 10 years, thetariff elimination is about 98.3% of tariff lines (accounting for 99.8% of importturnover) For about 1.7% of the remaining EU tariff lines, we apply the tariffelimination schedule of more than 10 years or apply tariff quotas according toWTO commitments

Trade in services and investment:

Banking services: Within 05 years from the date of entry into force of theAgreement, Vietnam commits to consider favorably allowing EU creditinstitutions to increase foreign holding to 49% of their charter capital in 02 jointstock commercial banks of Vietnam However, this commitment does not apply tothe four joint stock commercial banks in which the state is holding a majoritystake, 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

toallowTRADE

theestablishmentAGREEMENT

ofareinsurance branch,

we only allow it after a period of transition.

Telecommunication services: We accept the same level of commitment in theComprehensive and Progressive Agreement for Trans-Pacific Partnership(CPTPP) Especially for value added telecommunications services withoutnetwork infrastructure, we allow the EU to set up 100% foreign owned enterprisesafter a transition period

Distribution services: We agree to remove the requirement of an economicneeds test after 5 years from the date of entry into force of the Agreement,however we reserve the right to implement distribution system planning on a non-discriminatory basis trial We also agree not to discriminate in the production,import and distribution of alcohol, to allow EU businesses to maintain theiroperating conditions under the current licenses and only need one license to carryout the activities: import, distribution, wholesale and retail

Goverment procurement:

Vietnam and the EU agreed on equivalent contents to the Government

Procurement Agreement (GPA) of the WTO With some obligations such as online bidding, setting up a portal to post bidding information, etc., Vietnam has

a roadmap for implementation The EU also commits to providing technical assistance to Vietnam to fulfill these obligations

E-commerce:

To develop e-commerce between Vietnam and the EU, the two sides

committed not to impose an import tax on electronic transactions The two sides also pledged to cooperate through maintaining a dialogue on management issues raised in e-commerce, including:

-Responsibility of intermediate service providers for transmission or storage ofinformation;

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