Lương Hoàng Thái, Director Department for Multilateral Trade Policy Ministry of Industry and Trade

1. General orientation of international economic integration Lương Hoàng Thái, Director Department for Multilateral Trade Policy Ministry of Industry and Trade Y

2. CONTENTS The process of international economic integration of Vietnam during the period 1995 - 2012 The impact of the process of international economic integration on the economic- social aspects The strategy of international economic integration from 2013 - 2020 Advantages and challenge in the new international economic integration trend What should be done to integrate international economic efficiently?

3. International economic integration process of Vietnam FTA VN-Chi le Negotiation for TTP Signed FTA Việt Nam – Japan FTA Joined in WTO VN-Korea Signed China treaty VN-EU Joined in APEC Joined in ASEAN VN-Nga, BL 2000 2011 2008 2010 2006 1995 2002 2007 2009 1998 EFTA Viet-My BTA Signed ASEAN-Korea TA Signed ASEAN- Japan treaty Signed ASEAN-India Signed ASEAN- Autralia & NZ

4. REGIONAL LINKAGE TREND OF VIỆT NAM Việt Nam – EU, Russia, EFTA, TPP, Mercosure ASEAN +3 AEC Việt Nam EAS

5. The impact of the international economic integration over time Positive Negative • Promoting Export • Attracting foreign investment; • Economic growth and employment; • Development of education, culture and society; • Changing the legal system more clearly transparent; • Restructuring the economy; • Deeper integration into the regional and global economy; • Improving the position of Vietnam in the international market, promote relationships with key partners; • Increase in per capita income. • Imports surged; • Greater competitive pressure from foreign companies, resulting in many domestic industries affected by the impact of market opening (iron and steel, vegetable oil, agricultural commodities, service industries, etc. ...); • Policy adjustments space is narrowed; • Budget revenue from import tariffs were reduced; • Farmers hurt from commitment to open markets in the agricultural sector; • Increase the gap between the rich and the poor; • Environmental Pollution.

6. Strategic Orientation for international economic integration from 2013 – 2020 • Mounting economic roadmap for international integration of Vietnam with the implementation process of the socio-economic development strategy 2011-2020 in general and the integration roadmap in particular; • Continue to support the multilateral trading system in general and to actively participate in the Doha Round of WTO negotiations, as well as the continued Multilateral negotiations in particular; • Fully implement the participation strategy for free trade agreement (FTA) by 2020. Actively participate in FTA selectively to protect and promote the interests of the economy. Ensure the level of integration of FTAs to be higher and deeper significantly compared to the WTO integration.

7. Strategic Orientation for international economic integration from 2013 – 2020 (continued) • Strengthen the economic integration within ASEAN to build an ASEAN Economic Community, to promote ASEAN's central role in the process of regional economic integration, and create additional support for the multilateral and bilateral framework to ensure maximum economic benefit.. • Continue implementing and coordinating implementation seriously and effectively the international commitments on trade and investment, especially the commitments in the WTO, ASEAN, ASEAN + and other bilateral commitments.

8. The challenge for the new international economic integration trend, • Tariff reductions: Elimination of the majority, or even 100% of tariff lines, tariff is eliminated immediately when the agreement takes effect with a very high rate. • SPS measures, TBT: Tightening requirements and sanitary technical barriers, enhance transparency • Investment and Services: negotiation to open market using approach of investor selection to enhance investor protection through the establishment of the new requirements (such as: minimum treatment standards, moving forward policies and so on ...); apply the dispute resolution mechanism between the government and investors at large scope (that includes pre-establishment phase)..

9. The challenge for the new international economic integration trend • Intellectual Property Rights: Increase the level of protection of intellectual property rights is much higher than in the WTO (WTO + +). • Government Procurement: Enhance competitiveness, open market for the public procurement • The labor and environment issues : the right to freedom of association (union) collective negotiation rights of workers, regulations on prohibition of using all forms of forced labor, child labor, non-discrimination in the labor force, environmental protection associated with trade and investment. • State-owned enterprises (SOEs): transparency of transactions of state enterprises, not favor state-owned enterprises affect ing to the private enterprises, etc. ...…

10. Advantages in the international economic integration • Expand the market access of the WTO members through the cuts, elimination of tariffs and non-tariff barriers of the developed and developing members (except RAM and LDC) when Doha round ends; • Reduce export costs, facilitate trade (Trade facilitation agreement in the WTO in Bali recently approved in December 2013); • Promote more exports to major markets such as the EU, U.S. and other TPP members, EFTA countries, South Korea, Russia, Canada Kazakhstan, Belarus due to the deeper elimination of tariffs than tariffs in the WTO;;

11. Advantages in the international economic integration (2) • Attracting more foreign investment as we committed to a more stable, airy and predictable investment environment. Foreign investors are protected by the international commitments on investment (provisions on investment protection, mechanisms and ISDS conditions); • Economic growth and employment; • Development of education, culture and society; • Changing the legal system clearly more transparent; • Restructuring the economy; • Deeper integration into the regional and global economy • Improving the position of Vietnam in the international market, promote relationships with key partners.

12. What should be done? To have effective economic integration ? • Reforming, restructuring particularly important areas such as agriculture, finance and banking, public spending, state-owned enterprises . • Improving transparency in the operation of state management agencies, high transparency, administrative reform, predictable, eliminating • Building capacity, providing technical assistance to businesses, trade associations, local officials of international economic integration at local . • Consultation, providing information, improving access to businesses and associations to serve negotiation ; • Reviewing legal the relevant documents relevant and amending those to ensure domestic demand management and integration; • To propagating, disseminating and raising awareness of the people, businesses, organizations and individuals of the WTO rules , the new FTA .

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