D. Vietnam's FTAs ​​as of April 2023

Currently, Vietnam has trade relations with 230 countries and territories, including FTAs with 60 economies, thereby creating favourable conditions for Vietnamese enterprises to expand market access. This is an opportunity for Vietnam to connect and participate more deeply in the global value chain and production network.

Up to now, Vietnam has participated in 17 FTAs, of which 15 have become effective, and 2 have been under negotiation/unsigned. In particular, a series of new-generation FTAs that have been put into effect in recent years such as CPTPP, EVFTA, etc., are creating great momentum for commodity exports.

So, what FTAs does Vietnam have now? Which countries and territories have FTAs signed by Vietnam? Let's go through the FTAs that Vietnam has participated in as of April 2023!

FTAs in Effect

1. ASEAN Free Trade Area (AFTA)

As a multilateral FTA among ASEAN countries, AFTA was signed in 1992 in Singapore. Initially, there were 6 countries including Brunei, Indonesia, Malaysia, Philippines, Singapore and Thailand (collectively referred to as ASEAN-6). Cambodia, Laos, Myanmar and Vietnam (collectively referred to as CLMV) joined AFTA later when they became ASEAN members.

A free trade area is a form of international linkage aimed at building and forming a unified market, creating a foundation for connection and economic development in the region. Countries in the free trade area will benefit from the reduction or elimination of tariff barriers when they want to export goods to countries in the region. Accordingly, the process of gradually reducing tariffs to 0 - 5%, gradually eliminating tariff barriers for most product categories and harmonizing customs procedures between countries.

2. ASEAN - China Free Trade Agreement (ACFTA)

ASEAN and China signed the Framework Agreement on Comprehensive Economic Co-operation in November 2002. The Parties, based on this Framework Agreement, signed the Agreement on Trade in Goods (effective from July 2005), Agreement on Trade in Services (effective from July 2007), and Agreement on Investment (effective from February 2010) aiming to establish an ASEAN – China Free Trade Area.

In November 2015, ASEAN and China signed the Protocol to Amend the ACFTA and Certain Agreements thereunder between ASEAN and China, including some new commitments in terms of Goods, Services and Investment. This Protocol came into force in May 2016.

3. ASEAN - Korea Free Trade Agreement (AKFTA)

ASEAN and Korea entered into the Framework Agreement on Comprehensive Economic Cooperation in 2005. On the ground of the Framework Agreement, the parties signed 03 other Agreements, including Agreement on Trade in Goods (effective from June 2007), Agreement on Trade in Services (effective from May 2009), and Agreement on Investment (effective from June 2009) aiming to establish an ASEAN – Korea Free Trade Area.

4. ASEAN - Japan Comprehensive Economic Partnership (AJCEP)

ASEAN and Japan signed the ASEAN - Japan Comprehensive Economic Partnership (AJCEP) in April 2008. This agreement, which came into effect on December 1st, 2008, includes commitments on trade in goods, services, investment and economic co-operations.

5. Vietnam - Japan Economic Partnership Agreement (VJEPA)

The Agreement between Vietnam and Japan for an Economic Partnership (VJEPA) was signed on December 25th, 2008 and came into force on October 1st, 2009. This is the very first bilateral FTA of Vietnam, in which both Vietnam and Japan give the other more preferences than that agreed under the Agreement for Comprehensive Economic Partnership ASEAN – Japan (AJCEP). However, VJEPA does not replace AJCEP. These two FTAs coexist and enterprises can choose to use the more favourable one.

6. ASEAN - India Free Trade Agreement (AIFTA)

ASEAN and the Republic of India went into the Framework Agreement on Comprehensive Economic Cooperation on October 8th, 2003. The Parties, based on the Framework Agreement, signed an Agreement on Free Trade in Goods (effective on January 1st, 2010), an Agreement on Free Trade in Services (effective on July 1st, 2015) and an Agreement on Investment (effective on July 1st, 2015) aiming to establish an ASEAN – India Free Trade Area.

7. ASEAN - Australia - New Zealand Free Trade Agreement (AANZFTA)

ASEAN, Australia and New Zealand signed the Agreement Establishing the ASEAN –Australia – New Zealand Free Trade Area on February 27th, 2009, which came into effect on January 1st, 2010. Such agreement is quite comprehensive, containing detailed commitments on goods, services (also including financial and telecommunications services), investment, electronic commerce, movement of natural persons, intellectual property, competition policy and economic cooperation.

8. Vietnam - Chile Free Trade Agreement (VCFTA)

The Free Trade Agreement between the Government of the Republic of Chile and the Government of the Socialist Republic of Vietnam was signed on November 11th, 2011 and came into effect on January 1st, 2014. This FTA contains only commitments on goods and goods-related matters, there are no commitments on services and investment. Such FTA is the very first FTA between Vietnam and a South American country.

9. Vietnam - Korea Free Trade Agreement (VKFTA)

The Free Trade Agreement between Vietnam and Korea (VKFTA) was signed on May 5th, 2015 and officially came into effect on December 20th, 2015. Compared to FTA ASEAN – Korea (AKFTA), VKFTA contains more preferences that the Parties give to each other in the field of goods, services and investment. However, VKFTA does not replace AKFTA. These two FTAs coexist and enterprises can choose to use the more favourable one.

10. Vietnam - Eurasian Economic Union Free Trade Agreement (VN – EAEU FTA)

The Free Trade Agreement between Vietnam and Eurasian Economic Union (EAEU - including Russia, Armenia, Belarus, Kazakhstan and Kyrgyzstan) was officially signed on May 29, 2015, and took effect from October 5, 2016. This is the first FTA of EAEU, which brings many export opportunities to Vietnamese businesses

11. Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)

Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) formerly known as the Trans-Pacific Partnership (TPP). In March 2018, CPTPP was officially signed by 11 country members (excluding the United States), including Canada, Mexico, Peru, Chile, New Zealand, Australia, Japan, Singapore, Brunei, Malaysia and Vietnam.

The CPTPP officially came into force in Australia, Canada, Japan, Mexico, Singapore, and New Zealand on 30 December 2018, in Vietnam on 14 January 2019, and in Peru on 19 September 2021. On October 5, 2022, Malaysia officially ratified the CPTPP and this Agreement came into force in Malaysia on November 29, 2022. Chile also ratified the CPTPP on December 22, 2022, and this Agreement entered into force in Chile on February 21, 2023.

Besides original member countries, there are currently 6 countries/economies that have officially applied to join the CPTPP, including the UK (application in February 2021), China, Taipei (in September 2021), Ecuador (in January 2022), Costa Rica (in August 2022) and Uruguay (in December 2022).

12. ASEAN - Hong Kong (China) Free Trade Agreement (AHKFTA)

Hong Kong (China) and ASEAN signed a Free Trade Agreement (AHKFTA) and a related Investment Agreement (AHKIA) on 12 November 2017. The AHKFTA came into effect on 11 June 2019, and the Investment Agreement came into effect on 17 June 2019 in Hong Kong (China) and 5 ASEAN members (Laos, Myanmar, Singapore, Thailand and Vietnam). Both Agreements fully came into effect on 12 February 2021 for all party members.

13. Europe - Vietnam Free Trade Agreement (EVFTA)

EU - Vietnam Free Trade Agreement (EVFTA) is a new-generation FTA between Vietnam and 27 European Union member states. EVFTA and Trans-Pacific Partnership (TPP) are two of the largest new-generation free trade agreements that Vietnam's largest ever negotiated.

On December 1st, 2015, the negotiation rounds of EVFTA were officially announced to be concluded, and its official full text was published on February 1st, 2016. On 26 June 2018, EVFTA was divided into two Agreements in terms of trade and investment. At the same time, the legal review of the Investment Protection Agreement (IPA) and EVFTA’s final text was formally concluded.

Both Agreements were signed on 30 June 2019. EVFTA and EVIPA were ratified by the European Parliament on February 12, 2020, and approved by the Vietnamese National Assembly on June 8, 2020. For EVFTA, after ratification, this Agreement came into effect on August 1, 2020. For EVIPA, on the EU side, the Agreement will still need to be further ratified by the Parliament of all 27 EU member states to take effect.

14. United Kingdom - Vietnam Free Trade Agreement (UKVFTA)

The Vietnam - UK Free Trade Agreement (UKVFTA) was officially completed on December 11, 2020, and signed on December 29, 2020. The Agreement was negotiated based on the principle of inheriting commitments in the EU-Vietnam Free Trade Agreement (EVFTA) with the necessary adjustments to ensure compliance with the bilateral trade framework between Vietnam and UK. The Agreement temporarily came into effect on December 31, 2020, and will officially become effective on 1 May 2021.

15. Regional Comprehensive Economic Partnership (RCEP)

The negotiations of the Regional Comprehensive Economic Partnership between ASEAN and the six states with which ASEAN has existing FTAs (including China, Korea, Japan, India, Australia and New Zealand) were launched on May 9th, 2013.

On November 15, 2020, 15 RCEP member countries (excluding India) signed the RCEP. As of November 2, 2021, 06 ASEAN countries (Brunei, Cambodia, Singapore, Thailand, Laos, and Vietnam) and 04 partner countries: China, Japan, Australia and New Zealand, have deposited their instruments of approval/ratification of the RCEP Agreement with the Secretary-General of ASEAN. Thus, the RCEP Agreement officially came into force on January 1, 2022, for these countries. Then, RCEP entered into force for the Republic of Korea on 1 February 2022, for Malaysia on 18 March 2022, for Indonesia on January 2, 2023, and for the Philippines on 21 February 2023

FTAs under negotiation/unsigned

16. Vietnam - European Free Trade Association (VN – EFTA FTA)

The negotiations of the Free Trade Agreement (FTA) between Vietnam and EFTA States (including Norway, Switzerland, Iceland, and Liechtenstein) were officially launched in May 2012 and now is still under negotiation.

17. Vietnam - Israel Free Trade Agreement (VN– Israel FTA)

The negotiations of the Free Trade Agreement between Vietnam and Israel were officially launched on December 2nd, 2015. On April 2 2023, Vietnam and Israel announce the conclusion of the negotiations for their free trade agreement, which lasted for seven years with 12 rounds.

The two governments will proceed with necessary moves to complete signing the agreement in 2023 when both countries are about to celebrate the 30th anniversary of the foundation of their diplomatic relations.

A summary of the FTAs Vietnam has participated in as of April 2023 is presented in the table below:

(to be continued)

Reference: Ministry of Industry and Trade, WTO Center