WT/REG406/1  
27 July 2021  
(21-5829) Page: 1/58 
Committee on Regional Trade Agreements    
 
FACTUAL PRESENTATION  
FREE TRADE AGREEMENT  BETWEEN THE EUROPEAN UNION AND VIET NAM  
(GOODS AND SERVICES ) 
Report by the Secretariat  
This report, prepared for the consideration of the Free Trade Agreement  between the 
European Union and Viet Nam , has been drawn up by the WTO Secretariat on its own 
responsibility and in full consultation with the Parties. The factual presentation 
reproduces as closely as possible the terminology used in the Agreement and in the 
comme nts provided and does not imply official endorsement or acceptance by the 
Secretariat of such terminology. The report has been drawn up in accordance with the 
rules and procedures contained in the Decision for a Transparency Mechanism for 
Regional Trade Ag reements (WT/L/671) and thus does not imply any value judgement 
by the Secretariat regarding the contents of the Agreement.  
Any technical questions arising from this report may be addressed to Alberto Osnago  
(tel: +41 22 739  6969). Any statistical question s arising from this report may be 
addressed to Rowena Cabos (tel: +41 22 739  5185). 
 
 
  WT/REG406/1  
 
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  Table of Contents  
Page 
1   TRADE ENVIRONMENT  ................................ ................................ ................................ . 4 
1.1   Merchandise trade  ................................ ................................ ................................ ..... 4 
1.2   Trade in services and investment  ................................ ................................ .................  6 
2   CHARACTERISTIC ELEMENTS OF THE AGREEMENT  ................................ ......................  8 
2.1   Background information  ................................ ................................ .............................  8 
3   PROVISIONS ON TRADE IN GOODS  ................................ ................................ .............  9 
3.1   Import duties and charges, and quantitative restrictions  ................................ .................  9 
3.1.1   General provisions  ................................ ................................ ................................ .. 9 
3.1.2   Liberalization of trade and tariff lines  ................................ ................................ ........  11 
3.1.3   Liberalization schedule ................................ ................................ ............................  12 
3.1.3.1    European Union  ................................ ................................ ................................ .. 12 
3.1.3.2    Viet Nam  ................................ ................................ ................................ ...........  14 
3.1.4   Tariff rate quotas  ................................ ................................ ................................ ... 16 
3.2   Rules of origin  ................................ ................................ ................................ ..........  16 
3.3   Export duties and charges, and quantitative restrictions  ................................ .................  17 
3.4   Regulatory provisions on trade  in goods  ................................ ................................ ....... 18 
3.4.1   Standards  ................................ ................................ ................................ .............  18 
3.4.1.1    Sanitary and phytosanitary measures  ................................ ................................ .... 18 
3.4.1.2    Technical barriers to trade  ................................ ................................ ....................  19 
3.4.2   Safeguard mechanisms  ................................ ................................ ...........................  20 
3.4.2.1    Global safeguards  ................................ ................................ ...............................  20 
3.4.2. 2   Bilateral safeguards  ................................ ................................ .............................  20 
3.4.2.3    Balance of Payments safeguards  ................................ ................................ ...........  21 
3.4.3   Anti-dumping and countervailing measures  ................................ ...............................  21 
3.4.4   Subsidies and state -aid ................................ ................................ ...........................  22 
3.4.5   Customs -related procedures  ................................ ................................ ....................  22 
3.4.6   Other regulations  ................................ ................................ ................................ ... 23 
3.4.6.1    State trading enterprises  ................................ ................................ ......................  23 
3.5   Sector -specific provisions on trade in goods  ................................ ................................ . 23 
3.5.1   Motor vehicles  ................................ ................................ ................................ ....... 23 
3.5.2   Pharmaceuticals  ................................ ................................ ................................ .... 23 
3.5.3   Renewable energy generation  ................................ ................................ ..................  24 
4   PROVISIONS ON TRADE IN SERVICES  ................................ ................................ ....... 24 
4.1   Scope and definitions  ................................ ................................ ................................  25 
4.2   Denial of benefits  ................................ ................................ ................................ ..... 25 
4.3   General provisions on trade in services  ................................ ................................ ........  25 
4.3.1   Market access  ................................ ................................ ................................ ....... 25 
4.3.2   National treatment and MFN  ................................ ................................ ....................  26 
4.3.3   Commercial presence  ................................ ................................ .............................  26 WT/REG406/1  
 
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  4.3.4   Movement of natural persons  ................................ ................................ ..................  26 
4.4   Liberalization commitments  ................................ ................................ ........................  27 
4.4.1   European Union  ................................ ................................ ................................ ..... 27 
4.4.1.1    MFN and horizontal commitments  ................................ ................................ ..........  27 
4.4.1.2    Sector specific commitments  ................................ ................................ ................  27 
4.4.2   Viet Nam  ................................ ................................ ................................ ..............  31 
4.4.2.1    MFN and horizontal commitments  ................................ ................................ ..........  31 
4.4.2.2    Sector specific commitments  ................................ ................................ ................  31 
4.5   Regulatory provisions  ................................ ................................ ................................  34 
4.5.1   Domestic regulation  ................................ ................................ ...............................  34 
4.5.2   Recognition  ................................ ................................ ................................ ...........  34 
4.5.3   Subsidies  ................................ ................................ ................................ ..............  35 
4.5.4   Safeguards  ................................ ................................ ................................ ...........  35 
4.6   Sector specific provisions on trade in s ervices  ................................ ...............................  35 
4.6.1   Postal services  ................................ ................................ ................................ ...... 35 
4.6.2   Telecommunications networks and services  ................................ ...............................  35 
4.6.3   Financial services  ................................ ................................ ................................ ... 35 
4.6.4   International maritime transport services  ................................ ................................ .. 36 
5   GENERAL PROVISIONS OF THE AGREEMENT  ................................ .............................  36 
5.1   Transparency  ................................ ................................ ................................ ...........  36 
5.2   Current payments and capital movements  ................................ ................................ .... 37 
5.3   Exceptions  ................................ ................................ ................................ ...............  37 
5.4   Accession and withdrawal  ................................ ................................ ..........................  37 
5.5   Institutional framework  ................................ ................................ .............................  37 
5.6   Disput e settlement  ................................ ................................ ................................ ... 38 
5.7   Relationship with other agreements concluded by the parties  ................................ ..........  40 
5.8   Government procurement  ................................ ................................ ..........................  42 
5.9   Intellectual property rights  ................................ ................................ .........................  43 
5.10   Competition  ................................ ................................ ................................ ...........  45 
5.11   State -owned enterprises and designated monopolies  ................................ ...................  45 
5.12   Environment  ................................ ................................ ................................ ..........  46 
5.13   Labour  ................................ ................................ ................................ ..................  47 
5.14   Electronic commerce  ................................ ................................ ...............................  48 
5.15   Small and medium -sized enterprises  ................................ ................................ .........  48 
ANNEX 1  ................................ ................................ ................................ ........................  49 
ANNEX 2  ................................ ................................ ................................ ........................  55 
 
  WT/REG406/1  
 
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Key Facts  
 
Parties to the Agreement:  European Union and Viet Nam  
 
Date of Signature:    30 June 2019  
 
Date of Entry into Force:  01 August 2020  
 
Date of Notification:   13 July 2020  
 
Full implementation:    01 August 2035  
 
1  TRADE ENVIRONMENT  
1.1.  The Free Trade Agreement between the European Union and Viet Nam (hereinafter the 
Agreement) is one of the EU's 46 and Viet Nam's 15 RTAs in force and notified to the WTO.  
1.1  Merchandise trade  
1.2.  In 20 20, the EU's merchandise exports amounted to EUR 1,936 billion and imports to EUR 
1,714 billion.1 In 2019, Viet Nam's merchandise exports amounted to EUR 236 billion and imports 
to EUR 226 billion.2 Excluding intra -EU trade, the EU was the second largest trader in the world while 
Viet Nam was the 16th largest importer and 17th largest exporter. For both Parties, manufactured 
products represented the main commodity group traded (79.4% and 73% respecti vely of the EU's 
exports and imports , and 83.6% and 78% respectively of Viet Nam's exports and imports).3 
1.3.  Chart 1.1 summarizes the trends in global and bilateral trade of the Parties for the period 
2013-2020. The EU experienced a trade surplus throughout the period while Viet Nam ran a global 
trade surplus  during the period  with the exception of 2015. Regarding bilateral trade between the 
Parties,  the data show a positive and increasing balance in favour of Viet Nam for the entire period.  
Chart 1.1 EU-Viet Nam: Merchandise bilateral trade and with world (2013 -2020 ) 
 
Source:  EU authorities.  
 
1 Unless otherwise specified, trade data for the EU in Section 1 of this factual presentation refers to 
EU27. Based on data from the WTO Trade Profiles (2020), EU's exports in 2019 represented 12.6% of global 
exports while its imports were 11.2% of global i mports.  
2 Based on data from the WTO Trade Profiles (2020), Viet Nam's exports in 2019 represented 1.4% of 
global exports while its imports were 1.3% of global imports.  
3 Ranks in world trade and the shares of trade by main commodity group come from the Pa rties' WTO 
Trade Profiles (2020).  
0510152025303540
05001,0001,5002,0002,5003,000
2013 2014 2015 2016 2017 2018 2019B. Viet Nam 2013 -2019
(Euro B illions)
Viet Nam imports from EU (Right Axis)
Viet Nam exports to EU (Right Axis)
Total Imports
Total Exports
0510152025303540
05001,0001,5002,0002,5003,000
2013 2014 2015 2016 2017 2018 2019 2020A. EU 2013 -2020
(Euro Billions)
EU imports from Viet Nam (Right Axis)
EU exports to Viet Nam (Right Axis)
Total Imports
Total ExportsWT/REG406/1  
 
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  1.4.  Based on 2020 data, the EU was Viet Nam's sixth largest source of imports and third largest 
destination for exports, while Viet Nam was the EU's 10th largest source of imports and 31st largest 
export destination.4 
1.5.  The commodity structure of trade between the EU and Viet Nam, as well as of their global trade 
in the period 2017 -2019, is shown in Chart 1.2 on the basis of Harmonized System (HS) sections. 
The EU's largest global import categories were machinery, minerals, chemicals (respectively 2 4%, 
21% and 11%). Of these, machinery accounted for more t han half of the EU's imports from Viet 
Nam, while footwear and textiles accounted for 12% and 10% respectively ; machinery and textiles 
were Viet Nam's largest exports, accounting for 41% and 15% of its exports respectively . Viet Nam's 
main imports from the EU were machinery ( 40%), chemicals ( 21%) which were also the EU's two 
largest exports globally ( 25% and 16% respectively), and optical equipment (6%) while its largest 
imports globally were machinery (39%), base metals (10%) and textiles (8%).  
Chart 1.2 EU-Viet Nam: Product composition of merchandise trade, by HS Section (2017 -
2019)  
 
Source:  EU authorities.  
 
4 Eurostat for the EU and UNSD, Comtrade database for Viet Nam.  
40
2164444333225Viet Nam's imports from 
EU(%)
39
10 877644338Viet Nam's Global 
Imports(%)
25
16
16665543222225EU's Global Exports(%)41
157654333222223Viet Nam's Global Exports 
(%)
51
12106333327EU's imports from Viet Nam 
(%) 
24
21
118664333227EU's Global Imports (%)
Total: Euro 33 
billionTotal: Euro 1,872 
billion
Total: Euro 205 
billionTotal: Euro 2,069 
billionTotal:  Euro 211 billion
Total:  Euro 11 
billion
Raw hides and 
skinsVegetablesLive animals
ChemicalsMineralsPrepared 
foods
Wood pulpWood and 
articles of woodPlastics
Base metalsPrecious 
stonesTextiles
OpticalVehiclesMachinery
FootwearMiscellaneo
us
OtherWT/REG406/1  
 
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  1.2  Trade in services and investment  
1.6.  In 2019, the EU's shares of total commercial services exports and i mports were 18.5% and 
17.6% respectively, while Viet Nam's shares were 0.45% of world exports and 0.32% of world 
imports.5 Excluding intra -EU trade, the EU was the largest exporter and importer of commercial 
services in the world while Viet Nam was the wo rld's 26th largest exporter and the 32nd largest 
importer.  
1.7.  The EU is also a net exporter of services to Viet Nam as shown in Table 1.1. 
1.8.  Chart 1.3 shows global and bilateral trade in commercial services for the EU  (in 2013-2020). 
In 2020, the EU's global exports amounted to EUR 850 billion while its global imports were EUR 802 
billion. T he EU is a net exporter of services to the world with other business services and transport 
accounting for the largest categories of traded services. The EU is also a net exporter of services to 
Viet Nam as shown in Table 1.1. 
Chart 1.3 EU: Trade in commercial services data with Extra -EU (2013 -2020 ) 
 
Source:  EU authorities based on BPM6.  
Table 1.1 EU28: Total trade in services billion Euro with Viet Nam (2017 -2019)  
Year  Export s to Viet Nam  Import s from Viet Nam  
2017 1.91 1.85 
2018 3.42 1.83 
2019 3.72 2.12 
Source:  EU authorities.  
 
1.9.  Chart 1.4 shows global trade in commercial services for Viet Nam (based on the period 
2013-2019). Viet Nam's global exports were EUR 24 .5 billion while its global imports were EUR 
16.6 billion. Viet Nam was a net importer of commercial services from the world until 2015 before 
becoming a net exporter in 201 6, with travel services accounting for the largest categor y of exported 
services and transport as th e largest imported category.  
 
5 WTO Trade Profiles (2020).  
Manufacturing services on physical 
inputs owned by others
Maintenance & repair services, n.i.e.
Transport services
Travel servicesInsurance and pension 
services
Financial services
Charges for the use of 
intellectual property n.i.e.Telecom, computer and 
information services
Other business servicesConstruction services
Personal, cultural and 
recreational services02004006008001,0001,200
2013 2014 2015 2016 2017 2018 2019 2020A. EU imports from Extra -EU27
2013 -2020
(Euro Billion)
02004006008001,0001,200
2013 2014 2015 2016 2017 2018 2019 2020B. EU exports to Extra -EU27
2013 -2020
(Euro Billion)WT/REG406/1  
 
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  Chart 1.4 Viet Nam: Trade in commercial services data with world (2013 -2019)  
 
Note:  Exchange rates EUR per USD are: 0.75 (2013), 0.75 (2014), 0.90 (2015), 0.90 (2016), 0.89 (2017), 
0.85 (2018), and 0.89 (2019) . 
Source:  WTO Statistics Database based on BPM6.  
 
1.10.  Chart 1.5 depicts the EU's foreign direct investment stocks and fl ows with Viet Nam and the 
world during 2013 -2019, while Chart 1.6 shows Viet Nam's FDI global stocks and flows  during 2013 -
2019. The EU has been a globa l net source of FDI with outward stocks consistently higher than 
inward stocks. The EU's inward and outward flows to the world have been similar and fluctuating 
over the period. The flow of outward FDI from the EU to Viet Nam was higher than the flow of in ward 
FDIs. Viet Nam has been a global recipient of FDI flow. Its global stocks of inward FDI have increased 
over the period while outward stocks remained relatively stable.  
Chart 1.5 EU: FDI stock and flow wi th Viet Nam and world (2013 -2019 ) 
 
Source:  EU authorities.  
Manufacturing services on 
physical inputs owned by others
Transport services
Travel servicesInsurance and pension 
services
Financial services
Charges for the use of 
intellectual property n.i.e.Telecom, computer and 
information services
Other business servicesConstruction services
Maintenance & repair services, 
n.i.e.
Personal, cultural and 
recreational services051015202530
2013 2014 2015 2016 2017 2018 2019A. Viet Nam imports from world
2013 -2019
(Euro Billion)
051015202530
2013 2014 2015 2016 2017 2018 2019B. Viet Nam exports to world
2013 -2019
(Euro Billion)
-2.00.02.04.06.08.010.0
2013 2014 2015 2016 2017 2018 2019FDI stock with Viet Nam
(Euro Billion ) Outward
Inward
-2.00.02.04.06.08.010.0
2013 2014 2015 2016 2017 2018 2019FDI flow with Viet Nam
(Euro Billion) 
Outward
Inward
01,0002,0003,0004,0005,0006,0007,0008,0009,00010,000
2013 2014 2015 2016 2017 2018 2019FDI stock with extra -EU
(Euro Billion )
Outward
Inward
-400-20002004006008001,0001,200
2013 2014 2015 2016 2017 2018 2019FDI flow with extra -EU
(Euro Billion ) 
Outward
InwardWT/REG406/1  
 
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  Chart 1.6 Viet Nam: FDI stock and flow with world (2013 -2019)  
 
Note:  Exchange rates EUR per USD are: 0.75 (2013), 0.75 (2014), 0.90 (2015), 0.90 (2016), 0.89 (2017), 
0.85 (2018), and 0.89 (2019) . 
Source:  UNCTAD . 
 
2  CHARACTERISTIC ELEMENTS OF THE AGREEMENT  
2.1  Background information  
2.1.  The Agreement was signed on 30 June 2019 and notified to the WTO on 13 July 2020 under 
Article XXIV:7(a) of GATT 1994 a nd Article V:7(a) of the GATS (see documents WT/REG406/N/1 - 
S/C/N/1016). It entered into force on 01 August 2020.  
2.2.  The text of the Agreement, together with its annexes, is available on the Parties' official 
websites:  
European Union : https://eur -lex.europa.eu/legal -content/EN/TXT/?uri=OJ:L:2020:186:TOC  
Viet Nam:  https://fta.moit.gov.vn/   
2.3.  The Agreement is composed of 17 Chapters. A number of Annexes, including the Parties' tariff 
elimination schedules and the lists of services and investment commitments also form part of the 
Agreement. The Agreement also includes two Protocol s, two Understa nding s and four Joint 
Declaration s. Box 2.1 below summarizes the structure of the Agreement.  
Box 2.1 Struct ure of the Agreement  
Chapters  Titles  
Preamble   
Chapter 1  Objectives and general definitions  
Chapter 2  National treatment and market access for goods  
Chapter 3  Trade remedies  
Chapter 4  Customs and trade facilitation  
Chapter 5  Technical barriers to trade  
Chapter 6  Sanitary and phytosanitary measures  
Chapter 7  Non-tariff barriers to trade and investment in renewable energy 
generation  
Chapter 8  Liberalisation of investment, trade in services and electronic commerce  
020406080100120140160
2013 2014 2015 2016 2017 2018 2019FDI stock with world
(Euro Billion ) 
Outward
Inward
0246810121416
2013 2014 2015 2016 2017 2018 2019FDI flow with world
(Euro Billion) 
Outward
InwardWT/REG406/1  
 
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  Chapters  Titles  
Chapter 9  Government procurement  
Chapter 10  Competition policy  
Chapter 11  State -owned enterprises, enterprises granted special rights or privileges, 
and designated monopolies  
Chapter 12  Intellectual property  
Chapter 13  Trade and sustainable development  
Chapter 14  Transparency  
Chapter 15  Dispute settlement  
Chapter 16  Cooperation and capacity building  
Chapter 17  Institutional, general and final provisions  
  
Protocols   
Protocol 1  Concerning the Definition of the Concept of 'Originating Products' and 
Methods of Administrative Co -operation  
Protocol 2  On mutual administrative assistance in customs matters  
  
Understanding s Concerning bank equity  
 Concerning specific commitments on distribution services for wine and 
spirits  
Joint Declarations  Concerning the Principality of Andorra  
 Concerning the Republic of San Marino  
 Regarding the revision of the rules of origin contained in Protocol 1  
 Concerning Customs Unions  
 
2.4.  Article 1.1 states that the Parties establish a free trade area in conformity with Article  XXIV of 
the GATT 1994 and Article V of the GATS. The objectives of the Agreement are to liberalise and 
facilitate trade and investment between the Parties ( Article 1.2).  
2.5.  The Parties affirm the importance of cooperation and capacity building for the efficient 
implementation of the Agreement and commit to deepen cooperation in areas of mutual interest 
taking into consideration their different levels of developm ent (Article 16.1). Cooperation shall foster 
inter alia , sustainable growth and the reduction of poverty. Article 16.2 lists areas for cooperation 
including trade facilitation, trade -related aspects of agriculture, fishery and forestry, environment, 
labour  and small and medium sized enterprises ( SMEs ).  
3  PROVISIONS ON TRADE IN GOODS  
3.1.  Chapters 2 to 7 of the Agreement cover trade in goods with provisions on national treatment 
and market access, trade remedies, customs and trade facilitation, technical barriers to trade, 
sanitary and phytosanitary measures and non -tariff barriers to trade and investment in renewable 
energy generation.  
3.1  Import duties and charges, and quantitative restrictions  
3.1.1   General provisions  
3.2.  The Parties agree to accord national treatment to each other's goods in accordance with 
Article  III of GATT 1994 and its interpretative notes, which are incorporated into and made part of 
the Agreement (Article 2.4).  WT/REG406/1  
 
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  3.3.  A customs duty is defined in Article 2.3 as any duty or charge of any kind imposed on or in 
connection with the importation or exportation of a good. Customs duties do not include charges 
equivalent to an internal tax imposed in accordance with Article 2.4  (national treatment) , duties 
imposed in accordance with Chapter 3 of the Agreement (trade remedies), duties applied in 
accordance with Article s VI, XVI  and XIX of GATT 1994, the Anti -Dumping Agreement, the WTO 
Agreement on Subsidies and Countervailing Measures, Article 5 of the Agree ment on Agriculture and 
the WTO Understanding on Rules and Procedures Governing the Settlement of Disputes, and fees or 
other charges imposed consistently with Article 2.18 of the Agreement on administrative fees, other 
charges and formalities on imports a nd exports.  
3.4.  During a transition period of no longer than three years from the date of entry into force of the 
Agreement, the Parties shall accord to remanufactured goods the same treatment as that accorded 
to new like goods (Article 2.6). A Party may requi re specific labelling of remanufactured goods in 
order to prevent deception of consumers.  
3.5.  Disciplines on the management of administrative errors , specific measures concerning 
preferential tariff treatment, repaired goods and the administration of trade reg ulations are included 
in Articles 2.8, 2.9, 2.10 and 2.13 respectively.  
3.6.  Except as otherwise provided in the Agreement, neither Party shall adopt or maintain any 
prohibition or restriction on the importation of any good of the other Party, except in accorda nce 
with Article XI of GATT 1994, which is incorporated into and made part of the Agreement 
(Article  2.14).6 The Article prohibits a Party from adopting or maintaining import licensing 
conditioned on the fulfilment of a performance requirement or voluntar y export restraints. Viet Nam 
may apply specific measures  for the goods listed in Appendix 2 -A-4 including right -hand steering 
vehicles, used consumer goods, used vehicles and spare parts, asbestos products, specialised coding 
machines, round and sawn timb er and wooden products .7 
3.7.  Articles 2.16 and 2.17 govern import and export licensing procedures respectively. The Parties 
reaffirm their rights and obligations under the Import Licensing Agreement. Existing import or export 
licensing procedures shall be not ified within 30 days of the entry into force of the Agreement while 
new procedures or modifications to existing ones shall be notified no later than 45 days before their 
introduction or their modification takes effect.8  
3.8.  Each Party shall ensure that fees,  charges, formalities and requirements, other than import 
and export customs duties and measures are consistent with its obligations under Article VIII of 
GATT 1994, including its Notes and Supplementary Provisions (Article 2.18). A Party shall only 
impose  fees and charges for services provided in connection with importation and exportation of 
goods and they shall not be levied on an ad valorem basis and shall not exceed the approximate 
cost of the service provided. Each Party shall publish information on s uch fees and charges in 
accordance with Article 4.10. No Party shall require consular transactions in connection with the 
importation of any good of the other Party  and, after three years from the date of entry into force 
of the Agreement, it shall not req uire consular authentication for the importation of goods.  
 
6 Before taking any measures provided for in subparagraphs 2(a) and 2(c) of Article XI of GATT, the 
Party intending to take the m easures shall supply the other Party with all relevant information, with a view to 
seeking a solution acceptable to the Parties. If no agreement is reached within 30 days of supplying such 
information, the exporting Party may apply measures under Article 2 .9 on the exportation of the good 
concerned. Where exceptional and critical circumstances requiring immediate action make prior information or 
examination impossible, the Party intending to take the measures may apply forthwith the precautionary 
measures n ecessary to deal with the situation and shall inform the other Party immediately thereof.  
7 Any amendment of Viet Nam's laws and regulations that reduces the scope of the goods listed in 
Appendix 2 -A-4 and a ny preference accorded by Viet Nam to those goods  to any other trading partner shall 
automatically apply under the Agreement. As of the date of this factual presentation, Viet Nam ha d not 
introduced any amendment of its laws and regulations on this issue.  
8 In no case a Party can notify later than 60 da ys following the date of the publication of the 
introduction or modification unless , for import licensing procedures,  it was already notified in accordance with 
Article 5 of the Import Licensing Agreement. The notification of import licensing procedures shall contain the 
same information as referred to in Article 5 of the Import Licensing Agreement.  Viet Nam clarified that f or 
import licensing procedures, a Party shall be deemed to  be in compliance with the obligations of the Agreement 
if it already notifie d them to the WTO under the Import Licensing Agreement. Viet Nam already notified its 
import licensing procedures to the WTO  while it was finalizing its notification of export licensing procedures . WT/REG406/1  
 
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  3.9.  Except as otherwise provided for in the Agreement, when Viet Nam applies mandatory country 
of origin marking requirements for non-agricultural products from the EU, it shall accept the marking 
"Made in EU", or a similar marking in the local language, as fulfilling such requirements 
(Article  2.19).  
3.10.  According to Article 2.21, the Parties shall implement their commitments on sector -specific 
non-tariff measures on goods as set out in the sectoral Annexe s 2-B (motor vehicles and motor 
vehicles parts and equipment) and 2 -C (pharmaceuticals, medicinal products and medical devices) . 
Ten years after the entry into force of the Agreement and upon request by either Party, the Parties 
shall enter into negotiations with the aim of broadening the scope of their commitments on sector -
specific non -tariff measures on goods.   
3.11.  After one year from the date of entry into force of the Agreement, the Parties shall exchan ge 
by 1 July each year annual import statistics for the previous year, including figures at tariff line level, 
on preferential and on non -preferential trade in goods between them (Article 17.14).  
3.1.2   Liberalization of trade and tariff lines  
3.12.  Each Party shall r educe or eliminate its customs duties on goods originating in the other Party 
in accordance with the Schedules set out in Appendices 2 -A-1 (EU) and 2 -A-2 (Viet Nam) to 
Annex  2-A. The base rate of customs duties is specified in the Schedules included in Ann ex 2-A 
(Article 2. 7).9 For Viet Nam, the tariff elimination established under Appendix 2 -A-2 does not apply 
to tariff lines in staging category CKD .  
3.13.  Annex 2 -A provides for 12 staging categories for tariff elimination : 
i. category A: customs duties eliminate d on the date of  entry into force , 
ii. category B3: customs duties eliminated in four equal annual stages beginning on the date 
of entry into force,  
iii. category B5: customs duties eliminated in six equal annual stages beginning on the date of 
entry into force,  
iv. category B7: customs duties eliminated in eight equal annual stages beginning on the date 
of entry into force,  
v. category B9: customs duties eliminated in ten equal annual stages beginning on the date of 
entry into force,  
vi. category B 10: customs duties eliminate d in 11 equal annual stages beginning on the date 
of entry into force,  
vii. category B 10* and category B10** : customs duties eliminated in 11 specific annual stages 
indicated in annex 2 -A beginning on the date of entry into force,  
viii. category B 15: customs duties eliminated in 16 equal annual stages beginning on the date 
of entry into force,  
ix. category A+EP : the ad valorem  component eliminated on the date of entry into force  while 
the entry price system is maintained , 
x. category R75: specific customs duties  applied from the date of entry into force , 
xi. category CKD: excluded lines . 
 
3.14.  If a Party reduces an applied MFN duty rate below the rate of duty applied in accordance with 
its respective schedule, the good originating in the other Party shall be eligible for that lower duty 
rate. A Party shall not increase any existing customs duty applied in accordance with its respective 
schedule or adopt any new customs duty o n originating goo ds. A Party may unilaterally accelerate 
the reduction or elimination of customs duties on originating goods. A t the request of a Party, the 
Parties shall consult to consider accelerating and broadening the scope of the reduction and 
elimination of customs duties on imports.   
 
9 The base rates of the EU reflect the EU's Common Customs  Tariff rates of duty in effect on 26 June 
2012.  The base rates of Viet Nam  reflect its MFN rates of duty in effect on 26 June 2012.  WT/REG406/1  
 
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  3.1.3   Liberalization schedule  
3.1.3.1   European Union  
3.15.  Table 3.1 shows the tariff and trade elimination commitments by the EU under the Agreement. 
In 2020, 2,522 lines were duty free on an MFN basis, representing 26.6% of the EU's total tariff, 
and corresponding to 65% of its imports from Viet Nam during 2017 -2019.10 Moreover, the EU 
grants preferential duty free access to imports from Viet Nam on 2,890 additional lines  (30.5% of 
the tariff) under its generalized system of preferences (GSP) programme . Following the entry into 
force of the Agreement, an additional 2,551  lines ( 26.9% of the tariff) became duty -free for imports 
from Viet Nam . By 2023, 598 additional lines will be liberalized bringing the total percentage of duty -
free tariff lines to 90.3% corresponding to more than 89% of imports from Viet Nam in 201 7-2019. 
Finally, 816 tariff lines ( 10.7% of imports) will become duty free by 202 7 while 106 lines will remain 
subject to TRQs or the specific duty resulting from the entry price system at the end of 
implementation.   
Table 3.1 EU: Tariff elimination commitments under the Agreement and corresponding 
average trade  
Duty phase -out period  Tariff lines in EU's tariff schedule  EU's imports from Viet Nam  
(2017 -2019)  
Number  % Value  
(Euro million)  % 
2020 (MFN)  2,522  26.6 22,564.4  65.0 
2020 (GSP)  2,890  30.5 3,951.1  11.4 
2020 2,551  26.9 3,257.1  9.4 
2023 598 6.3 1,188.2  3.4 
2025 396 4.2 2,191.6  6.3 
2027 420 4.4 1,538.3  4.4 
Remain dutiable  106 1.1 39.2 0.1 
Total 9,483  100.0  34,730.0  100.0  
Note:  Based on the HS2017 nomenclature.  
Source:  WTO estimates based on the data provided by the authorities.  
3.16.  Table 3.2 shows the EU's tariff elimination, by HS section. Th e 106 lines excluded from tariff 
elimination once implementation is completed , are found in HS Sections I (live animals), II 
(vegetables), IV (prepared food) and VI (chemicals). Of those lines, 101 have ad valorem  rates and 
5 are subject to specific duties . The final average preferential rates  of the lines with ad valorem  rates 
only are 6.9%  for vegetables, 15.8% for prepared foods  and 8.7 % for chemicals .  
Table 3.2 EU: Tariff elimination under the Agreement, by HS Section  HS Section  Average 
Tariff (%)  Total 
Number 
of Lines  Duty free 
Lines under 
the 
Agreement  Duty Free Lines  Under the 
Agreement  
Remain 
Dutiable 
Lines  Avg. Final 
Tariff 
(Dutiable)  MFN 
GSP 
MFN 
GSP 
2020  
2023  
2025  
2027  
I 9.6 6.9 955 106 12 494 116 87 135 5 - 
II 5.5 4.8 554 150 54 260 8 22 6 54 6.9 
III 5.9 3.6 129 24 22 79 2  2   
IV 14.9 12.8 869 96 13 494 53 65 108 40 15.8 
V 0.8 0.0 231 169 58 4      
VI 4.3 0.7 1,224  316 619 31 215 19 17 7 8.7 
 
10 Of the 9,483 lines in the EU 's schedule 8,462 lines ( 89.2%) have ad valorem  duties . 676 lines ( 7.1%) 
are subject to specific duties , 203 lines (2.1%) have compound duties, 57 lines (0.6%) have mixed rates and 
85 (0.9%) have other duties.  WT/REG406/1  
 
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HS Section  Average 
Tariff (%)  Total 
Number 
of Lines  Duty free 
Lines under 
the 
Agreement  Duty Free Lines  Under the 
Agreement  
Remain 
Dutiable 
Lines  Avg. Final 
Tariff 
(Dutiable)  MFN 
GSP 
MFN 
GSP 
2020  
2023  
2025  
2027  
VII 4.6 0.9 300 65 161 64  10    
VIII 3.1 1.3 130 45 45 40      
IX 2.2 1.2 234 118 79 5 2 30    
X 0.0  195 195        
XI 8.0 6.7 1,147  40  882 53 128 44   
XII 8.2 4.6 106 2 33 30 5 10 26   
XIII 4.0 1.6 234 32 115 42 39 6    
XIV 0.6 0.0 58 47 11       
XV 1.8 0.8 955 499 298 85 50  23   
XVI 1.9 0.2 1,337  386 927 3 13 8    
XVII 5.2 2.3 286 32 165 4 17 9 59   
XVIII 1.9 0.2 296 132 139 5 18 2    
XIX 2.2  22 4  11 7     
XX 2.6 0.2 214 57 139 18      
XXI 0.0  7 7        
Total 5.0 3.5 9,483  2,522  2,890  2,551  598 396 420 106 13.0 
Note:  - contains specific duties only.  
 For the calculation of averages, specific rates are excluded, and the ad valorem  parts of alternate 
rates are included.  In-quota rates are excluded in the computation.  
 Based on the HS2017 nomenclature.  
Source:  WTO estimates based on the data provided by the authorities.  
3.17.  The average rates of the 106 lines remaining dutiable applied by the EU to imports from 
Viet Nam at th e end of the implementation period are shown in Chart 3.1 by HS Chapter . Preferential 
duties match MFN duties in HS Chapters 18, 29, 35 and 38 while preferential duties are lower in 
HS Chapters 7, 16 and 20. Products in HS Chapters 4, 8, 10, 11, 17 and 22 include lines subject to 
specific rates for which no ad valorem  equivalents are available.  
Chart 3.1 EU: Average of dutiable rates, by HS Chapter  
 
Note:  *HS chapters 4, 8, 10, 11, 17 and 22 contain specific duties only.  
 Based on the HS 2017 nomenclature . 
Source:  WTO estimates based on data provided by the authorities.  
0510152025
4* 7 8* 10* 11* 16 17* 18 20 22* 29 35 38Average Duty Rate (%)
HS ChapterPreferential MFNWT/REG406/1  
 
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  3.1.3.2   Viet Nam  
3.18.  Table 3.3 shows the tariff and trade elimination commitments by Viet Nam under the 
Agreement. In 2020, 2,975 lines were duty free on an MFN basis, representing 31.1% of Vie t Nam's 
total tariff, and corresponding to 60% of its imports from the EU during 2017 -2019.11 Following the 
entry into force of the Agreement, an additional 1,715 lines (17.9% of the tariff) became duty -free 
for imports from the EU. By 20 29, following ten years of implementation, an  additional 4,124 lines 
will be liberalized bringing the total percentage of duty -free tariff lines to 92.1%  corresponding to 
more than 97% of imports from the EU in 2017 -2019. Finally, 627 tariff lines ( 2.1% of imports) will 
become duty free by 20 35 leaving 117 lines subject to duty at the end of implementation.  
Table 3.3 Viet Nam: Tariff elimination commitments under the Agreement and 
corresponding average trade  
Duty phase -out 
period Tariff lines in Viet Nam's 
tariff schedule  Viet Nam's imports from EU28  
(2017 -2019)  
Number  % Value (Euro million)  % 
2020 (MFN)  2,975  31.1 6,927.2  60.1 
2020 1,715  17.9 940.1  8.2 
2023 979 10.2 570.7  4.9 
2025 1,950  20.4 1,629.5  14.1 
2027 1,158  12.1 1,138.2  9.9 
2029 37 0.4 45.4 0.4 
2030 609 6.4 233.5  2.0 
2035 18 0.2 6.9 0.1 
Remain dutiablea 117 1.2 42.6 0.4 
Total 9,558  100.0  11,534.0  100.0  
a Includes 87 tariff lines under HS Chapter 87 without duties (marked as CKD) and these are excluded 
from the reduction commitment.  
Note:  Exchange rates EUR per USD are : 0.89 (2017), 0.85 (2018) and 0.89 (2019) .  
 Based on the HS2012 nomenclature.  
Source:  WTO estimates based on tariff data constructed by the WTO: MFN from WTO -IDB (transposed from 
HS 2017 to HS 2012)  and preferential tariffs based on information provided by the authorities, and 
import data from the UNSD, Comtrade database transposed to HS 2012 nomenclature from HS 6 -digit 
to HS 8 -digit level.  
3.19.  Table 3.4 shows Viet Nam's tariff elimination, by HS section. The 117 lines excluded from 
tariff elimination once implementation is completed are found in HS Sections I (live a nimals), IV 
(prepared food), V (minerals) and XVII (vehicles). Of tho se lines, 30 have ad valorem  rates and 87 
are without duties (marked as CKD) and excluded from liberalization  commitment s. The final average 
preferential rates are 80% for live animals, 84.8% for prepared foods and 55 % for mineral products.  
Table 3.4 Viet Nam: Tariff elimination under the Agreement, by HS Section  HS Section  MFN 2020  Duty Free Lines  Under the Agreement  
Remain 
Dutiabl e 
Lines  Avg. Final 
Tariff 
(Dutiable)  Avg. 
Tariff 
(%) Number
of Lines  Duty 
free 
Lines  
2020  
2023  
2025  
2027  
2029  
2030  
2035  
I 12.4 521 83 65 278 24 22 10 33  6 80.0 
II 15.3 474 65 33 80 250 34  12    
III 15.1 156   13 2 22  119    
IV 30.4 443 34 3 4 52 260 9 43 18 20 84.8 
V 6.1 204 67 61 26  6  40  4 55.0 
VI 3.2 1,157  679 169 55 104 136  14    
VII 8.5 480 85 137 121 79 11  47    
 
11 Of the 9,558 lines in Viet Nam 's schedule 9,471 lines ( 99.1%) have ad valorem  duties while the 
remining 87 have other non -ad valorem  duties.  WT/REG406/1  
 
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HS Section  MFN 2020  Duty Free Lines  Under the Agreement  
Remain 
Dutiabl e 
Lines  Avg. Final 
Tariff 
(Dutiable)  Avg. 
Tariff 
(%) Number
of Lines  Duty 
free 
Lines  
2020  
2023  
2025  
2027  
2029  
2030  
2035  
VIII 12.5 100 30 9 1 60       
IX 6.8 157 73 22  42 20      
X 11.4 269 38 29 18 84 100      
XI 12.4 1,079  91 802 41 113 27  5    
XII 22.3 74 6 31 5 29 3      
XIII 17.7 215 13 33 7 86 76      
XIV 12.9 81 18 26   37      
XV 8.0 909 326 74 61 295 55  98    
XVI 6.1 2,067  1,016  177 23 667 177  7    
XVII 24.8 565 84 7  28 154 18 187  87*  
XVIII  4.5 329 223 34 23 35 14      
XIX 3.5 27 23      4    
XX 18.2 239 12  223  4      
XXI 2.5 12 9 3         
Total 10.7 9,558  2,975  1,715  979 1,950  1,158  37 609 18 117 79.8 
* The 87 tariff lines belong to HS Chapter 87 without duties (marked as CKD) and these are excluded 
from liberalization  commitment s. 
Note:  Tariff lines subject to in -quota rates are excluded from the computation . 
 Based on the HS2012 nomenclature.  
Source:  WTO estimates based on tariff data constructed by the WTO: MFN from WTO -IDB (transposed from 
HS 2017 to HS 2012)  and preferential tariffs based on information provided by the authorities.  
3.20.  The average rates remaining dutiable by HS Chapter applied by Viet Na m to imports from the 
EU at the end of the implementation period are shown in Chart 3.2. Preferential duties  under the 
Agreement match MFN duties in all HS Chapters indicating no reductions of duties on these products 
vis-à-vis the MFN rate.  
Chart 3.2 Viet Nam: Average of dutiable rates, by HS Chapter  
 
Note:  87 tariff lines under the HS Chapter 87 without duties (marked as CKD) which are excluded from the 
liberalization commitment s. 
 Based on the HS 2012 nomenclature . 
Source:  WTO estimates based on data provided by the authorities and the WTO -IDB. 
0102030405060708090
4 17 24 25Average Duty Rate (%)
HS ChapterPreferential MFNWT/REG406/1  
 
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  3.1.4   Tariff rate  quotas  
3.21.  Section B of Annex 2 -A provides for TRQs under the Agreements. The EU eliminates in -quota 
duties at entry into force on 76 tariff lines concerning birds' eggs, garlic, sweet corn, some varieties 
of fragrant rice, manioc starch, tun a, surimi, sugar,  mushrooms, ethanol, mannitol, sorbitol, dextrin  
and other modified starches.12 Viet Nam eliminates in -quota duties in 11 equal annual stages on 
30 tariff line s concerning birds' eggs, sugar, tobacco and salt.13 Table A2. 1 and Table A2. 2 in Annex  2 
provide additional details.   
3.2  Rules of origin  
3.22.  Rules of origin are set out in Protocol 1 concerning the definition of the concept of originating 
products and methods of administrative co -operation.  
3.23.  A product qualifies a s originating if it is wholly obtained in a Party, as defined in Article 4 of 
the Protocol, or it is obtained in a Party incorporating materials which have not been wholly obtained, 
provided that such materials have undergone sufficient working or processi ng in the Party concerned 
(Article 2).14 Products which are not wholly obtained are considered to be sufficiently worked or 
processed when the product specific conditions in Annex II to the Protocol are met (Article 5).  
3.24.  Annex II to Protocol 1 sets out the  product -specific conditions to be considered as sufficiently 
worked or processed . Four types of conditions are specified: i) a maximum content of non -originating 
materials, ii) change s in tariff classification at the heading or subheading level, iii) specific working 
and processing operations to be carried out or iv) working or processing carried out on certain wholly 
obtained materials.  Depending on the product, these conditions may be combined or applied as 
alternatives in order to acquire origin.  
3.25.  Article 5 also provides for a de minimis  or tolerance rule. Non -originating materials can be 
used provided that  i) for Chapter 2 and Chapter s 4 to 24 of the Harmonized System, except 
processed fishery products in Chapter 16, the net weight of non -originating materials does not 
exceed 10% of the weight of the product or,  ii) for all other products except those in Chapters 50 to 
63, the total va lue of non-originating materials does not exceed 10% of the ex -works price. Specific 
thresholds for products in Chapters 50 to 63 are in Annex II to Protocol 1.  
3.26.  Article 3 provides for cumulation of origin. Products shall be considered as originating in a 
Party if they are obtained there by incorporating materials originating in the other Party provided 
that they have undergone working or processing in the exporting Party which goes beyond the 
operations referred to in Article 6.15 Moreover, materials listed  in Annex III originating in an ASEAN 
country which is applying a preferential agreement with the EU,  shall be considered as originating 
in Viet Nam provided that the y are further processed or incorporated into one of the products listed 
in Annex IV .16 As of the date of this factual presentation, no ASEAN country is benefit ing from such 
treatment . Fabrics originating in the Republic of Korea shall also be considered as originating in Viet 
Nam when further processed or incorporated into one of the products l isted in Annex V obtained in 
Viet Nam, provided that they have undergone working or processing in Viet Nam which goes beyond 
the operations referred to in Article 6.17 At the request of a Party, the Committee on Customs may 
 
12 The EU confirmed that none of its TRQs for Viet Nam in the Agreement are part of the its WTO TRQs . 
13 Viet Nam  confirmed that the quota quantities in the Agreement are part of its MFN quotas . Moreover, 
according to Viet Nam’s commitments under th e WTO, the annual quota quantities are not fixed and subject to 
an increase of 5% per year.  
14 All Articles in this section refer to articles of Protocol 1 unless otherwise specified.  
15 The list of insufficient working or processing in Article 6 includes, inter alia , preserving operation, 
washing, ironing, husking, peeling, sharpening, bottling, simple assembly of parts, and affixing marks labels or 
logos.  
16 Annex III includes live, fresh or chilled cuttlefish and squid (HS 030741) and live, fresh or chilled  
octopus (HS 030751). Annex IV includes prepared or preserved cuttlefish and squid (HS 160554) and prepared 
or preserved octopus (HS 160555).  
17 Annex V includes HS Chapters 61 (a rticles of apparel and clothing accessories, knitted or crocheted ) 
and 62 (a rticles of apparel and clothing accessories, not knitted or crocheted ). WT/REG406/1  
 
- 17 - 
 
  decide that the cumulation for fabrics can be extended to a third party with which the EU and Viet 
Nam have a regional trade agreement.18  
3.27.  Articles 7 through 11 contain disciplines on unit of classification, accessories, spare parts and 
tools, sets, neutral elements and accounting segregation. Section C of Protocol 1 provides for 
territorial requirements with provisions on principle of territ oriality (Article 12), non -alteration 
(Article 13) and exhibitions (Article 14). The conditions relating to the acquisition of origin status 
shall be fulfilled without interruption in a Party. However, if originating goods exported from a Party 
return from  a third country, they shall be considered as originating they are the same as those 
exported and they have not undergone any operation beyond what is necessary to preserve them 
in good condition.  
3.28.  Section D of Protocol 1 (Articles 1 5 to 28) sets out specif ic disciplines on proof of origin. It 
includes general requirements, procedures for the issuance of a certificate of origin , certificates of 
origin issued retrospectively, duplicate certificate of origin, conditions for making out an origin 
declaration  or a statement on origin , approved exporters, validity and submission of proof of origin, 
importation by instalments, exemptions from proof of origin, supporting documents, preservation of 
proof of origin , discrepancies and formal errors  and amounts expressed  in Euro .19 Section E of 
Protocol 1 (Articles 29 to 33) includes provisions on arrangements for administrative cooperation.  
3.29.  Section F of Protocol 1 clarifies the status of Ceuta and Melilla. Article 34 states that the term 
"Party" does not cover Ceuta and Melilla. Products originating in Viet Nam , when imported into Ceuta 
or Melilla, shall enjoy in all respects the same customs regime a s that applied to products imported 
into the rest of the EU, as provided for under Protocol 2 to the Act concerning the conditions of 
accession of the Kingdom of Spain and the Portuguese Republic and the adjustments to the Treaties. 
Viet Nam  shall grant th e same customs regime  to products originating in Ceuta and Melilla as to the 
EU.20 
3.30.  In a Joint Declaration, the Parties agree to review the rules of origin contained in Protocol 1 
and to discuss the necessary amendments upon request by either Party.  
3.3  Export duties and charges, and quantitative restrictions  
3.31.  A Party shall not maintain or ad opt any duties, taxes, or other charges of any kind imposed 
on, or in connection with, the exportation of a good that are in excess of those imposed on like goods 
destined for domestic consumption (article 2.11).  
3.32.  Appendix 2 -A-3 to Annex 2 -A includes the e xport duty elimination or reduction schedule of 
Viet Nam. Table 3.5 summarizes the number of lines, the initial and final export duty rates by 
category included in Viet Nam's schedule.  The elimination or reduction of export duties concerns oil 
seeds (HS Chapter 12), minerals (25, 26, 27), inorganic and miscellaneous chemicals (28, 38), 
rubber (40), raw hides (41), wood (44), pearls and precious stones (71 ) and base metals (71, 72, 
74, 75, 76, 78, 79, 80, 81).  
Table 3.5 Viet Nam export duties, by category  
Category  Number of tariff linesa Initial Base Rates  Final rates 
B5a 1 40% 10% 
B5b 5 30% - 40% 20% 
B5*a 32 3% - 5% - 10% - 15% 0% 
B5*b 13 25% - 30% - 40% 20% 
B7* 9 5% - 10% 0% 
B10 74 15% - 20% 0% 
 
18 Viet Nam and the Republic of Korea have concluded the exchange of notes and the necessary 
procedure to implement the extended cumulation for fabric from the Republic of Korea.  
19 At the entry into force of the Agreement, the EU has notified Viet Nam , in accordance with Article 
15.1.c, that it is applying a system of self -certification of origin where the origin of goods is declared by 
registered expor ters with statements on origin. Viet  Nam is issuing certificates of origin for its exporters  while 
the possibility for Vietnamese exporters of making out origin declarations is limited to low value consignments.  
20 Viet Nam informed that the Parties are wor king on a legal instrument for a common understanding on 
"customs regime " and the preferential treatment for products originating in Ceuta and Melilla imported into 
Viet Nam.  WT/REG406/1  
 
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  Category  Number of tariff linesa Initial Base Rates  Final rates 
B10* 193 1% - 3% - 5% - 10% - 15% 0% 
B12 11 14% - 15% - 17% - 20% - 30% 0% 
B12* 21 5% - 7% - 10% - 20% - 30% 0% 
B15 35 15% - 17% - 20% - 22% - 25% - 30% - 40% 0% 
B15*a  19 10% - 15% - 30% 0% 
B15*b  10 17% - 20% 0% 
B15*c  2 22% 0% 
B15*d  4 30% 0% 
B15*e  2 40% 0% 
S 38 2% - 10% - 13% - 15% - 17% - 20% 2% - 10% - 13% 
- 15% - 17% - 
20% 
Total lines  469   
a  Includes double counting  due to EX -lines. 
Source:  Viet Nam authorities based on Appendix 2 -A-3 of the Agreement.  
 
3.4  Regulatory provisions on trade in goods  
3.4.1   Standards  
3.4.1.1   Sanitary and phytosanitary measures  
3.33.  The Parties reaffirm their rights and obligations under the WTO SPS Agreement (Article 6.4).  
3.34.  The rules governing sanitary and phytosanitary measures (SPS) are contained in Chapter 6 
which applies to the preparation, adoption and application of all SPS measures of a Party that may 
directly or indirectly affect trade between the Parties  (Article 6.1) .  
3.35.  The Parties' competent authorities in charge of ensur ing close and effective working 
relationships between the Parties are defined in Article 6.5 .21 As of the date of entry into force of 
the Agreement, the competent auth orities shall provide each other with a contact point for 
communication on all matters arising under Chapter  6. 
3.36.  Import requirements and procedures are set out in Article 6.6. Each Party shall adopt only 
measures that are scientifically justified, consisten t with the risk involved and that represent the 
least restrictive measures available and result in minimum impediment to trade. The importing Party 
shall ensure that its import requirements and procedures are applied in a proportional and non -
discriminator y manner and it shall ensure full transparency of its import requirements and 
procedures. The import procedures shall aim at minimising negative trade effects and expedite the 
clearance process while complying with the importing Party's requirements and pr ocedures. The 
exporting Party shall ensure compliance with the import requirements of the importing Party. Each 
Party shall establish and update lists of regulated pests, using scientific terminology, and make such 
lists available to the other Party. Phyto sanitary import requirements shall be restricted to measures 
ensuring the respect for the appropriate level of protection of the importing Party and limited to the 
regulated pests of concern to the importing Party. A Party has the right to carry out import  checks 
based on the SPS risk associated with such imports and it shall make available the information about 
the frequency of such import checks. Finally , any fees imposed for the procedures for imported 
products shall be equitable in relation to any fees charged for like domestic products and shall not 
be higher than the actual cost of the service.  
3.37.  The Parties recognise that the application of equivalence in Article 4 of the SPS Agreement is 
an important tool for trade facilitation (Article 6.10). Equival ence can be accepted for a specific SPS 
 
21 In the case of Viet Nam, the Ministry of Agriculture and Rural Development, or its successor, is 
responsible for animal and plant health  and the Ministry of Health, the Ministry of Agriculture and Rural 
Development and the Ministry of Industry and Trade, or their respective successors, are, in accordance with 
their respective compete nces, responsible for the safety of food destined for human consumption . In the case 
of the EU, as regards exports to Viet Nam, the Member States are responsible for the control of the production 
conditions and requirements ; as regards imports from Viet Na m, the Member States are responsible for 
controlling compliance of imports with the EU's import conditions ; and the European Commission is responsible 
for overall coordination, inspection and audits of inspection systems and the necessary legislative actio n. WT/REG406/1  
 
- 19 - 
 
  measure or SPS measures related to a certain product or categories of products, or on a system -
wide basis. The importing Party shall accept an SPS measure of the exporting Party as equivalent if 
the exporting Party o bjectively demonstrates that its measure achieves the importing Party's 
appropriate level of protection.  The consideration by the importing Party of a request from the 
exporting Party for recognition of equivalence of its SPS measures with regard to a spec ific product 
shall not be in itself a reason to disrupt or suspend ongoing imports from that Party of that product.  
3.38.  Articles 6.7 to 6.9 deal with verifications, the procedure for listing of establishments and 
measures linked to animal and plant health. Ar ticles 6.12 to 6.15 provide for transparency and 
exchange of information, consultations, emergency measures and technical assistance and special 
and differential treatment. In particular, in the case of new SPS measures, the EU shall consider  the 
special n eeds of Viet Nam so as to maintain the export opportunities of Viet Nam while continuing 
to achieve the Union's level of protection.  
3.39.  The functions of the SPS Committee established by Article 17.2 are outlined in Article 6.11  
and include, inter alia , the de velopment of procedures and arrangements for the implementation of 
Chapter 6, the monitoring of its implementation and the identification, initiation and review of 
technical assistance projects .  
3.4.1.2   Technical barriers to trade  
3.40.  The Parties reaffirm their right s and obligations under the TBT Agreement, which is 
incorporated into and made part of the Agreement, mutatis mutandis  (Article 5.1).  
3.41.  The rules governing technical barriers to trade (TBT) are contained in Chapter 5 which applies 
to the preparation, adoptio n and application of standards, technical regulations and conformity 
assessment procedures that may affect trade in goods between the Parties (Article 5.3). The Chapter 
does not apply to purchasing specifications prepared by governmental bodies for product ion or 
consumption requirements of such bodies or sanitary and phytosanitary measures as defined in 
Annex A of the SPS Agreement.  
3.42.  The Parties agree to make best use of good regulatory practice with regard to the preparation, 
adoption and application of technical regulations, as provided for in the TBT Agreement (Article 5.4). 
Moreover, in accordance with Article 2.7 of the TBT Agreem ent, a Party shall give positive 
consider ation to  accepting as equivalent technical regulations of the other Party, even if those 
regulations differ from its own, provided that those regulations adequately fulfil the objectives of its 
own regulations. A Pa rty can request in writing the recognition of equivalence in the other Party of 
technical regulations that it considers to be equivalent (and provide detailed reasons for this 
equivalence) . If a Party does not recognize a technical regulation as equivalent , it shall pro vide, 
upon request, the reasons for its decision.  
3.43.  The Parties shall encourage their standardizing bodies and the regional standardizing bodies 
of which they or their standardizing bodies are members to cooperate in international standardizati on 
activities (Article 5.5). The y undertake to exchange information on their use of standards in support 
of technical regulations, their standardization processes and the extent of use of international or 
regional standards as a bas is for their national st andards , as well as on  cooperation agreements 
implemented by either Party on standardization, provided that the information can be made available 
to the public. The Parties recognise that compliance with standards is voluntary.  
3.44.  The Parties agree to make be st use of good regulatory practice with regard to conformity 
assessment procedures, as provided for in the TBT Agreement (Article 5.6). They recognise that a 
broad range of mechanisms exist to facilitate the acceptance of the results of conformity assessme nt 
procedure s (for instance, reliance on a supplier 's declaration of conformity or use of accreditation to 
qualify conformity assessment bodies) and they shall exchange information regarding those 
mechanisms, the criteria used to select appropriate conform ity assessment procedures for specific 
products and accreditation policies. The Parties may decide , upon request from one of the Parties, 
to engage in consultations with a view to defining sectoral initiatives regarding the use of conformity 
assessment pro cedures or the facilitation of acceptance of conformity assessment results that are 
appropriate for the respective sectors.  WT/REG406/1  
 
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  3.45.  The Parties shall exchange views on market surveillance and enforcement activities 
(Article  5.8). They shall ensure that market sur veillance functions are carried out by the competent 
authorities and that no conflicts of interest exist between the market surveillance function and the 
conformity assessment function and between market surveillance bodies and the economic operators 
subje ct to control or supervision .  
3.46.  TBT-specific transparency provisions are contained in Article 5.7 while Article s 5.9, 5.10 and 
5.11 cover marking and labelling, cooperation  and trade facilitation  and consultations respectively . 
3.47.  The Parties shall designate a  contact point in the Ministry of Science and Technology of Viet 
Nam and in the European Commission and provide the other Party with the contact details of the 
office or official responsible for matters covered under Chapter 5 (Article 5.12).  
3.48.  Article 7.5 includes disciplines on standards, technical regulations and conformity assessment 
related to renewable energy generation and are described in sub -section  3.5.3  of the factual 
presentation.  
3.4.2   Safeguard mechanisms  
3.49.  Sections B and C of Chapter 3 cover global and bilateral safeguard measures.  
3.4.2.1   Global safeguards  
3.50.  The Parties reaffirm their rights and obligatio ns concerning global safeguard measures under 
Article XIX of GATT 1994, the WTO Safeguards Agreement and Article 5 of the Agreement on 
Agriculture (Article 3.6). No Party shall apply at the same time with respect to the same good both 
a global and a bilate ral safeguard measure. The origin of the goods subject to global safeguard 
measures shall be determined in accordance with Article 1 of the Agreement on Rules of Origin. 
Article 3.7 sets out disciplines on transparency.  
3.51.  The dispute settlement mechanism of  the Agreement is not applicable to global safeguard 
measures (Article 3.8).  
3.4.2.2   Bilateral safeguards  
3.52.  A Party may adopt bilateral safeguard measures if, as a result of the reduction or elimination 
of a customs duty under the Agreement, originating goods are be ing imported into its territory in 
such increased quantities, in absolute terms or relative to domestic production, and under such 
conditions as to cause or threaten to cause serious injury to a domestic industry producing like or 
directly competitive good s (Article 3.10). Bilateral safeguard measures can be applied during the 
transition period only, except with the consent of the other Party (Article 3.11). Article 3.9 defines 
the transition period as 10 years from the entry into force of the Agreement.  
3.53.  Bilateral safeguard measures may consist of the suspe nsion of  further reductions of the rate 
of customs duty as scheduled under the Agreement or an increase in the rate of customs duty on 
the good concerned to a level which does not exceed the lesser of the MFN applied rate in effect at 
the time the measure is taken or the base rate of customs duty specified in the schedules of the 
Agreement  (Article 3.10) . 
3.54.  Conditions and limitations are listed in Article 3.11. A Party shall notify in writing of the 
initiatio n of an investigation and shall apply a measure only following an investigation by its 
competent authorities, which shall not last more than one year, in accordance with the relevant 
articles of the Safeguards Agreement.22 A bilateral safeguard measure sha ll not be applied unless 
the investigation demonstrates on the basis of objective evidence the existence of a causal link 
between increased imports from the other Party and serious injury or the threat thereof. In this 
respect, due consideration shall be g iven to other factors.  
 
22 To that end, Articles 3, 4.2(a) and 4.2(c) of the Safeguards Agreement are incorporated into and 
made part of the Agreement, mutatis mutandis . WT/REG406/1  
 
- 21 - 
 
  3.55.  Bilateral safeguards cannot be applied for a period longer tha n two years , extendable by up 
to two years , if the competent authorities of the importing Party determine that the measure 
continues to be necessary. In order to facilita te adjustment in a situation where the expected 
duration of  a bilateral safeguard measure  is more than two years , the Party applying the measure 
shall progressively liberalise it at regular intervals during the period of application . After the 
termination of a bilateral safeguard measure, the rate of customs duty shall be the rate that would 
have been in effect according to the schedules of the Agreement.  
3.56.  In critical circumstances where delay would cause damage that would be difficult to repair, a 
Party may  apply a bilateral safeguard measure on a provisional basis pursuant to a preliminary 
determination that there is evidence that imports have increased as the result of the reduction or 
elimination of a customs duty under the Agreement, and that such import s cause serious injury, or 
the threat thereof, to the domestic industry. The duration of any provisional measure shall not 
exceed 200 days  (Article 3.12) .  
3.57.  The Party applying a bilateral safeguard measure shall provide an opportunity for 
consultations in o rder to mutually agree on appropriate trade liberalizing compensation no later than 
30 days after the application of the bilateral safeguard measure (Article 3.13). Compensation can 
be in the form of concessions having substantially equivalent trade effect s or concessions equivalent 
to the value of the additional duties expected to result from the safeguard measure. If the 
consultations do not result in an agreement on compensation within 30 days, the Party whose goods 
are subject to the safeguard measure m ay suspend the application of concessions having 
substantially equivalent trade effect s.23 
3.4.2.3   Balance of Payments safeguards  
3.58.  The possibility of imposing restrictive measures with regard to capital movements, payments, 
or transfers in relation to trade in good s in order to safeguard a Party's balance -of-payments or 
external financial position is addressed in Article 17.12. Such measures shall be in accordance with 
the WTO Agreement and consistent with the Articles of Agreement of the IMF.  
3.4.3   Anti-dumping and countervailing measures  
3.59.  The Parties affirm their rights and obligations arising under Article VI of GATT, the Anti -
Dumping Agreement and the SCM Agreement (Article 3.1). They agree that anti -dumping and 
countervailing measures should be us ed in full compliance with the relevant WTO requirements, and 
should be based on a fair and transparent system and careful consideration should be given to the 
interests of the Party on whose product such a measure is to be imposed.  The origin of the goods  
subject to anti -dumping and countervailing measures shall be determined in accordance with 
Article  1 of the Agreement on Rules of Origin.   
3.60.  Article 3.2 covers transparency. After the imposition of provisional measures and, in any case, 
before a final deter mination is made, the Parties shall immediately disclose all essential facts and 
considerations which form the basis for the decision to apply the measures. Each interested Party 
shall be granted the possibility to express their views during the investigat ions. 
3.61.  Neither Party shall apply anti -dumping or countervailing measures where, on the basis of the 
information made available during the investigation, it can clearly be concluded that it is not in the 
public interest to apply such measures (Article 3.3).  
3.62.  Article 3.4 includes a lesser duty rule under which the amount of anti -dumping or 
countervailing duty shall not exceed the margin of dumping or countervailable subsidies, and it 
should be less than the margin if such lesser duty would be adequate to remov e the injury to the 
domestic industry.  
 
23 The right of suspension shall not be exercised for the first 24 months during which a bilateral 
safeguard measure is in effect, provided that the safeguard measure conforms to the provisions of the 
Agreement.  WT/REG406/1  
 
- 22 - 
 
  3.63.  Anti-dumping and countervailing measures are not subject to the dispute settlement 
mechanism under the Agreement (Article 3.5).  
3.4.4   Subsidies and state -aid 
3.64.  Section B of Chapter 10 applies to specific subsidies  to all enterprises, including public and 
private enterprises .24 Subsidies, fulfilling the conditions set out in Article 1.1 of the WTO SCM 
Agreement, are covered only if they are specific within the meaning of Article 2 of the SCM 
Agreement (Article 10.5) .25 Other d isciplines on competition in Chapter 10 are described in 
Section  5.10  below.  
3.65.  The provisions in Section B of Chapter 1 0 are without prejud ice to the rights and obligations 
of a Party under the WTO Agreement , the SCM Agreement and the Agreement on Agriculture.  
(Article  10.6). 
3.66.  Articles 10.7 and 10.8 provide for transparency and the possibility of consultations. Neither 
Party may have recourse to the Dispute Settlement mechanism of the Agreement for any matter 
arising under Article 10.8 (Article 10.13).  
3.67.  Legal  arrangements whereby a Government or any public body is responsible for covering 
debts or liabilities of certain enterprises and support to insolvent or ailing enterprises in various 
forms including loans, guarantees, capital injection and tax exemptions is allowed only if certain 
conditions are met (Article 10.9).26  
3.68.  The Parties shall review the Section no later than five years after the entry into force of the 
Agreement and at regular intervals thereafter (Article 10.10). They shall consult each other on  the 
need to modify the Section in light of the experience gained and the development of any 
corresponding rules in the WTO.   
3.69.  Furthermore, the Parties agree not to introduce or maintain any export subsidies or other 
measures having equivalent effect on any  agricultural good which is subject to the elimination or 
reduction of customs duties in accordance with Annex 2 -A (Article 2.12).  
3.4.5   Customs -related procedures  
3.70.  The rules governing customs and trade facilitation are contained in Chapter 4.  
3.71.  The Parties recogn ise the importance of customs and trade facilitation matters and they shall 
reinforce cooperation in the area with a view to ensuring that their respective customs legislation 
and procedures fulfil the objectives of promoting trade facilitation while ensur ing effective customs 
control (Article 4.1). The Parties also agree that their legislation shall be non -discriminatory and that 
customs procedures shall be based on the use of modern methods and effective controls to combat 
fraud and to promote legitimate trade.  
3.72.  The Parties shall enhance customs cooperation by, inter alia , exchanging information, 
exploring joint initiatives relating to import, export and other customs procedures including technical 
assistance, strengthening cooperation in the field of cust oms in international organizations such as 
the WTO and the WCO and establishing mutual recognition of trade partnership programmes and 
customs controls (Article 4.2).  
3.73.  The Parties shall base their respective customs legislation and procedures on internation al 
instruments and standards applicable in the area of customs and trade, including the HS Convention 
(Article 4.3). The customs legislation and procedures of the Parties shall aim at the protection of 
legitimate trade through effective enforcement and com pliance with legislative requirements, avoid 
 
24 Section B applies only to specific subsidies of which the amount per beneficiary over a period of three 
years is above 300 ,000 special drawing rights.  
25 Subsidies to individual consumers or general measures, including subsidies or measures intended to 
achieve social policy objectives, are not considered as specific.  
26 Article 10.9 does not apply to apply to fisheries subsidies and subsidies relat ed to trade in goods 
covered by Annex 1 to the Agreement on Agriculture  and subsidies formally agreed or granted before or within 
five years after the entry into force of the Agreement.  WT/REG406/1  
 
- 23 - 
 
  unnecessary or discriminatory burdens on economic operators, and provide for further facilitation 
for operators with high levels of compliance and ensure safeguards against fraud and illicit or 
damaging activiti es. The Parties also agree that their customs legislation and procedures shall be 
proportionate and non -discriminatory and that their application shall not unduly delay the release of 
goods. They shall simplify and review requirements and formalities, wher ever possible, with respect 
to the rapid release and clearance of goods and work towards further simplification and 
standardisation of data and documentation required by customs or other agencies.  
3.74.  Each Party shall ensure that its customs authorities apply requirements and procedures that 
provide for the release of goods within a period no longer than that required to ensure compliance 
with its customs and other trade -related laws and formalities (Article 4.4). They shall allow, 
inter alia, the release of go ods without the payment of customs duties. Each Party shall ensure that 
its customs authorities provide for advance electronic submission and further processing of 
information before the physical arrival of goods to enable the release of goods on arrival.  
3.75.  The Parties shall provide simplified import and export procedures that are transparent and 
efficient, apply modern customs techniques and promote the development and use of systems 
facilitating the electronic exchange of data  (Article 4.5) . A single custom s declaration document or 
its electronic equivalent shall be used for the purpose of completing the formalities required for 
placing the goods under a customs procedure.  
3.76.  The Parties shall ensure the facilitation and effective control of transhipment operat ions and 
transit movements through their territory and cooperation and coordination between all authorities 
and agencies concerned  (Article 4.6). 
3.77.  Articles 4.7 to 4.15 contain provisions on risk management, transparency, advance rulings, 
fees and charges, c ustoms brokers, customs valuation, pre -shipment inspection, review and appeal 
and relations with the business community.  
3.78.  The composition and functions of the Committee on Customs established by Article 17.2 are 
outlined in article 4.16.  
3.4.6   Other regulations  
3.4.6.1   State trading enterprises  
3.79.  Regarding State trading enterprises, the Parties affirm their existing rights and obligations 
under Article XVII of GATT 1994, including its Notes and Supplementary Provisions, and the 
Understanding on the Interpretati on of Article XVII of the GATT  1994, which are incorporated into 
and made part of the Agreement, mutatis mutandis  (Article 2. 20).  
3.5  Sector -specific provisions on trade in goods  
3.5.1   Motor vehicles  
3.80.  Annex 2 -B includes commitments on sector -specific non -tariff measures on motor vehicles 
and motor vehicles parts and equipment. The Annex applies after three years from the date of entry 
into force of the Agreement (Article 9 of Annex 2 -B). The Parties sha ll enter into negotiations with 
the aim of broadening the scope of the commitments in Annex 2 -B ten years after the entry into 
force of the Agreement (Article 2.21 of the Agreement).  
3.81.  The Annex provide s for international standard (Article 2),27 regulatory c onvergence 
(Article  3), market access (Article 4) , products with new technologies or features (Article 5), other 
measures restricting trade (Article 6), cooperation (Article 7) and implementation (Article 8).  
3.5.2   Pharmaceuticals  
3.82.  Annex 2 -C includes commitments on sector -specific non -tariff measures on pharmaceutical, 
medicinal products and medical devices. The Parties shall enter into negotiations with the aim of 
 
27 All Articles in this sub -section refer to articles of Annex 2 -B. WT/REG406/1  
 
- 24 - 
 
  broadening the scope of the commitments in Annex 2 -C ten years after the entry into force of the 
Agreement (Article 2.21).  
3.83.  The Annex provides for international standard (Article 3),28 transparency (Article 4) and  origin 
marking (Article 5).  
3.84.  Viet Nam shall adopt and maintain appropriate legal instruments allowing foreign 
pharmaceutical companies to establ ish foreign -invested enterprises for the purposes of importing 
pharmaceuticals which have obtained marketing authorisation from Viet Nam's competent 
authorities (Article 2.15). Such foreign -invested enterprises are allowed to i) sell pharmaceuticals 
which they have legally imported to distributors or wholesalers who have the right to distribute 
pharmaceuticals in Viet Nam, ii) build warehouses, iii) provide information on imported 
pharmaceuticals, and iv) carry out clinical studies and testing.  
3.5.3   Renewable en ergy generation  
3.85.  Chapter 7 of the Agreement covers non -tariff barriers to trade and investment and 
cooperation in renewable energy generation.  
3.86.  The Parties share the objective of promoting, developing and increasing the generation of 
energy from renewable a nd sustainable sources, particularly through facilitating trade and 
investment (Article 7.1). They shall cooperate towards removing or reducing tariffs as well as non -
tariff barriers and shall cooperate on fostering regulatory convergence with or towards r egional and 
international standards.  
3.87.  Each Party shall refrain from adopting measures providing for local content requirements or 
requiring the formation of partnerships with local companies (Article 7.4). The Parties shall also 
ensure that any rules concer ning authorization, certification and licensing procedures are objective, 
transparent, and non -arbitrary, and do not discriminate against applicants from the other Party.  The 
Parties shall also ensure that the terms, conditions and procedures for the conne ction and access to 
electricity transmission grids are transparent and do not discriminate against suppliers of the other 
Party.  
3.88.  The Parties shall use relevant international standards established by the International 
Organization for Standardization and th e International Electrotechnical Commission with respect to 
products for the generation of energy from renewable and sustainable sources as a basis for their 
technical regulations except when such standards would be an ineffective or inappropriate means 
for the fulfilment of the legitimate objectives pursued (Article 7.5).29 If appropriate, the Parties shall 
specify technical regulations based on product requirements in terms of performance, including 
safety and environmental performance, rather than design or descriptive characteristics.  
3.89.  Article 7.6 clarifies that the Chapter is subject to the general and security exceptions of the 
Agreement. Implementation and cooperation are dealt with in Article 7.7.  
4  PROVISIONS ON TRADE IN SERVICES  
4.1.  Chapter 8 contains disciplines on  liberalization of  investment, trade in services and electronic 
commerce. General provisions are set out in Sections A while Section B covers liberalization of 
investment and Section C cross -border supply of services. Temporary prese nce of natural persons 
for business purposes is dealt with in Section D. Section E covers the regulatory framework and 
includes specific sub -sections on computer services, postal services, telecommunications  networks 
and services , financial services and in ternational maritime transport services. Section F covers 
electronic commerce. Sections G and H respectively include exceptions and institutional provisions.  
 
28 All Articles in this sub -section refer to articles of Annex 2 -C. 
29 Article 7.5 applies to the products covered by the tariff headings listed in Annex 7. The Parties may 
agree to include other products in the list by exchange of letters.  No products had been  added yet.  WT/REG406/1  
 
- 25 - 
 
  4.1  Scope and definitions  
4.2.  Provisions in Section C apply to measures of the Parties affecting cross -border supply of all 
services (modes 1 and 2) except audio -visual services, national maritime cabotage and domestic 
and international air transport services and services related to the exercise of traffic rights other 
than aircraft repair and maintenance ser vices during which the aircraft is withdrawn from service, 
sales and marketing of air transport, computer reservation system services and ground handling 
services (Article 8.9).  
4.3.  Provisions in Section B apply to measures of the Parties affecting establishme nt in all economic 
activities except audio -visual services, mining, manufacturing and processing of nuclear materials, 
production of , or trade in , arms, munitions and war material, national maritime cabotage and 
domestic and international air transport ser vices and services directly related to the exercise of 
traffic rights other than aircraft repair and maintenance services during which the aircraft is 
withdrawn from service, selling and marketing of air transport  services , computer reservation system 
services and ground handling services, and services supplied and activities performed in the exercise 
of governmental authority (Article 8.3).  
4.4.  The rules governing the temporary presence of natural persons for business purposes are 
contained in Section D of Cha pter 8. The Section applies to measures concerning the entry into and 
temporary stay in the Parties' territories of business visitors, intra -corporate -transferees, business 
sellers, contractual service suppliers and independent professionals (Article 8.13) .30  
4.5.  Chapter 8 does not apply to measures that affect natural persons seeking access to the 
employment market of a Party or measures regarding citizenship, residence or employment on a 
permanent basis , subsidies (except for performance requirements), the P arties' respective social 
security systems or to activities connected with the exercise of official authority  (Article 8.1). The 
Parties retain their right to adopt, maintain and enforce measures necessary to pursue legitimate 
policy objectives . 
4.2  Denial of benefits  
4.6.  The Agreement does not include a denial of benefits provision per se  but Article 8.2 defines a 
juridical person of a Party as a juridical person of the EU or Viet Nam, set up in accordance with the 
domestic laws and regulations of the EU or its Me mber States or of Viet Nam, respectively, and 
engaged in substantive business operations in the territory of the EU or of Viet Nam .31 
4.7.  Nevertheless, shipping companies established outside the EU or Viet Nam but controlled by 
nationals of an EU Member State or of Viet Nam, respectively, shall also benefit from the provisions 
of Chapter 8 if their vessels are registered in accordance with the respective domestic laws and 
regulations in a n EU member State or Viet Nam and fly its flag.  
4.3  General provisions on trad e in services  
4.3.1   Market access  
4.8.  With respect to market access through the cross -border supply of services establishment and 
maintenance of an enterprise, each Party shall accord treatment no less favourable than that 
provided for under the terms, limitations and conditions agreed and specified in its Schedule of 
Specific Commitments (Articles 8.10 and 8.4).  
4.9.  In relation to cross -border trade in services , unless otherwise specified in the Schedules of 
Specific Commitments, a Party shall not adopt or maintain, either on the basis of its entire territory 
or regional subdivision, measures that impose the types of limitations covered by Paragraphs 2(a) 
to 2(c) of Article XVI of the GATS (Article 8.10).  
 
30 Section D shall be reviewed by  the Parties after five years from the date of entry into force  to 
consider establishing the modalities to extend the provisions therein to independent professionals . 
31 The concept of effective and continuous lin k with the economy of a n EU Member State enshrined in 
Article 54 of the Treaty on the Functioning of the EU is equivalent to the concept of 'substantive business 
operations '.  WT/REG406/1  
 
- 26 - 
 
  4.10.  With regard to market access through establishment, t he Parties commit to not adopt or 
maintain measures limiting the number of enterprises that may carry out a specific economic activity, 
the total value of transactions or assets, the total number of operations or the total quantity of 
output, the participa tion of foreign capital, the total number of natural persons that may be employed 
in a particular sector and measures restricting or requiring specific types of legal entity or joint 
venture (Article 8.4).  
4.3.2   National treatment and MFN  
4.11.  With respect to all mea sures affecting cross -border trade in services and establishment in the 
sectors inscribed in its Schedule of Specific Commitments and conditional on those commitments, 
each Party shall accord to services, service suppliers  and investors and their enterpris es from the 
other Party treatment no less favourable than it accords to its own like services, service suppliers  
and investors and their enterprises (Articles 8. 11 and 8. 5).  
4.12.  An MFN provision for investment is included in Article 8.6 such that a Party shall accord to 
investors of the other Party and to their enterprises , as regards their operation in its territory, 
treatment no less favourable than the treatment it accords, in like situations, to investors of a third 
country and their enterprises  with some exclusions related to bilateral, regional or multilateral 
agreements . MFN treatment does not apply to communication services except postal and 
telecommunication services,32 recreational, cultural and sporting services, fishery and aquaculture, 
forestry and  hunting and mining, including oil and gas.  
4.3.3   Commercial presence  
4.13.  Commercial presence is covered by Section B of Chapter 8 on liberalization of investment. 
Article 8.3 provides that the Section applies to measures adopted or maintained by a Party affecting 
the establishment or the operation of an enterprise by an investo r of the other Party in its territory.  
4.14.  Article 8.4 requires, inter alia , a Party to not adopt or maintain measures which restrict or 
require specific types of legal entity or joint ventures through which an investor of the other Party 
may perform an econo mic activity  unless such measures are listed in the Schedules of Specific 
Commitments of the Parties.  
4.3.4   Movement of natural persons  
4.15.  Section D of Chapter 8 applies to measures of the Parties concerning the entry into and 
temporary stay in their respective ter ritories of business visitors, intra -corporate -transferees, 
business sellers, contractual service suppliers and independent professionals.  
4.16.  For the sectors liberalized in accordance with Section B on liberalization of investment , each 
Party shall allow investors of the other Party to employ in their enterprises natural persons of the 
other Party, provided that such employees are business visitors or intra -corporate transferees 
(Article 8.14). The duration of entry and stay is up to three years for managers, executives and 
specialists, one year for trainee employees and 90 days in any twelve -month period for business 
visitors for establishment purposes.33 The Parties shall not maintain or adopt, unless otherwise 
specified in their Schedules, limitati ons on the total number of natural persons that an investor may 
employ and requirements of economic needs tests.  
4.17.  For the sectors liberalized in accordance with Section B on liberalization of investment or C 
on cross -border supply and subject to any reserva tions listed in its Schedule of Specific 
Commitments, each Party shall allow the temporary entry and stay of business sellers for a period 
of up to 90 days in any twelve -month period (Article 8.15).  
4.18.  The Parties affirm their respective obligations arising f rom their commitments under GATS 
with respect to the entry and temporary stay of contractual services suppliers (Article 8.16). The 
Article specifies the conditions under which contractual services suppliers are allowed to supply 
 
32 For Viet Nam, postal services do not include public services and reserved serv ices. 
33 For Viet Nam, the obligations stemming from Section D of Chapter 8 in relation to trainee employees 
shall enter into force three years after the date of entry into force of the Agreement.  WT/REG406/1  
 
- 27 - 
 
  architectural, urban plann ing and landscape architecture services, engineering services, integrated 
engineering services, computer and related services, higher education services (only privately 
funded services), foreign language training and environmental services. The conditions include, 
inter alia, a limitation to 12 -month contracts, education or professional qualification requirements 
and the number of persons covered by the service contract.  
4.19.  Five years after the date of entry into force of the Agreement, the Parties shall revie w the 
Section to consider establishing modalities to extend the provisions therein to independent 
professionals.  
4.4  Liberalization commitments  
4.20.  The Schedules of Specific Commitments  of each Party includ ing the sectors liberalized by the 
Parties pursuant to Sec tions B and C  of Chapter 8 , the terms, limitations, conditions and 
qualifications are set out in Annexes 8 -A and 8 -B (Articles 8.7 and 8.12).  
4.21.  A positive list approach to scheduling commitments is used for all modes of supply. The EU's 
Schedules of Specific  Commitments, including the sectors liberalized, the market access and national 
treatment limitations applicable, are set out in Appendices 8 -A-1, 8-A-2 and 8 -A-3 to Annex 8 -A for, 
respectively, cross -border trade in services, investment  and temporary pres ence of natural persons 
for business purposes . Viet Nam's  Schedules of Specific Commitments are in Appendix 8 -B-1 for 
cross-border supply and investment and i n Appendix 8 -B-2 for temporary presence of natural 
persons for business purposes . 
4.4.1   European Union  
4.4.1.1   MFN and horizontal commitments  
4.22.  In its GATS schedule, the EU has included extensive commitments in a large number of 
sectors, subject, in certain cases, to limitations by all or some individual EU Member States. The EU 
did not make commitments, inter alia , for certain professional services related to medical and 
paramedical sub -sectors, postal and audio -visual services, some recreational and cultural and 
sporting services and some activities in transport services.  
4.23.  There is a broad reservation for services co nsidered as public utilities at a national or at a 
local level. Furthermore, sectors generally considered as falling under the category of public services, 
such as health, education, and social services, also remain mainly reserved under the Agreement 
(as under the GATS).  
4.24.  Under  the Agreement, the EU generally replicates the horizontal reservations under the GATS 
by individual EU Member States concerning other conditions for the acquisition of real estate, 
investment, type of establishment, managing director s and auditors , while at the same time a 
number of such reservations are either reduced or removed . 
4.25.  Regarding mode 4, the Schedule of Specific Commitments in Appendix 8 -A-3 includes 
horizontal reservations by individual EU Member States concerning the scope of intra -corporate 
transferees, trainees , managing directors and auditors. Moreover, EU Directives on the mutual 
recognition of diplomas only apply to the citizens of the EU and the right to practise a regulated 
professional service in one EU Member Stat e does not grant the right to practise in another EU 
Member State.  
4.4.1.2   Sector specific commitments  
4.26.  Table 4.1 provides a comparison of the EU's GATS commitments in modes 1 -3 with those 
taken under the Agreement. Horizontal limitations and MFN reservations are not taken into account 
in the table which should be read in conjunction with Annex 8 -A of the Agreement containing the 
EU's schedule of specific commitments for cross -border trade in services (Appendix 8 -A-1), 
investment  (Appendix 8 -A-2) and temporary  presence of natural persons for business purpo ses 
(Appendix 8 -A-3). WT/REG406/1  
 
- 28 - 
 
  Table 4.1 EU: comparison between GATS and Agreement specific commitments  
Sectors / Sub -sectors  GATS  FTA 
Compared 
to GATS  Trade in services  Investment  
Sector 
coverage  Commit -
mentsa Sector 
coverage  Commit -
mentsa 
1. Business services        
A. Professional  Services  Partial  Improved  Partial  Partial  Partial  Partial  
B. Computer  and Related  Services  Partial  Improved  Full Full Full Full 
C. Research  and Development  Services  Partial  Improved  Full Partial  Full Partial  
D. Real  Estate  Services  Partial  Improved  Full Partial  Full Partial  
E. Rental/Leasing  Services  without   
Operators  Partial  Improved  Partial  Partial  Partial  Partial  
F. Other  Business  Services  Partial  Improved  Partial  Partial  Partial  Partial  
2. Communication services        
A. Postal  services  --- Improved  Partial  Full Partial  Full 
B. Courier  services  Partial  Improved  Partial  Full Partial  Full 
C. Telecommunication  services  Partial  Improved  Partial  Full Partial  Full 
D. Audiovisual services  ---  Excluded  Excluded  Excluded  Excluded  
E. Other  --- Same  --- --- --- --- 
3. Construction and related 
engineering services        
A. General  construction  work for buildings  Partial  Improved  Full Full Full Full 
B. General  construction  work for civil  
Engineering  Partial  Improved  Full Full Full Full 
C. Installation  and assembly  work  Partial  Improved  Full Full Full Full 
D. Building  completion  and finishing  work  Partial  Improved  Full Full Full Full 
E. Other  Partial  Improved  Full Full Full Full 
4. Distribution services        
A. Commission  agents'  services  Partial  Improved  Partial  Partial  Partial  Partial  
B. Wholesale  trade services  Partial  Improved  Partial  Partial  Partial  Partial  
C. Retailing  services  Partial  Improved  Partial  Partial  Partial  Partial  
D. Franchising  Partial  Improved  Full Partial  Full Full 
E. Other  --- Same  --- --- --- --- 
5. Education services        
A. Primary education services  Partial  Similar  Partial  Partial  Partial  Partial  
B. Secondary education services  Partial  Similar  Partial  Partial  Partial  Partial  
C. Higher education services  Partial  Similar  Partial  Partial  Partial  Partial  
D. Adult education  Partial  Similar  Partial  Partial  Partial  Partial  
E. Other education services  Partial  Same  Partial  Partial  Partial  Partial  
6. Environmental services        
A. Sewage services  Partial  Improved  Full Full Full Full 
B. Refuse disposal services  Partial  Improved  Partial  Full Full Full 
C. Sanitation and similar services  Partial  Improved  Partial  Full Full Full 
D. Other  Partial  Improved  Partial  Full Full Full 
7. Financial services        
A. All insurance  and insurance -
related  services  Partial  Improved  Partial  Partial  Partial  Partial  
B. Banking  and other  financial  services  Partial  Improved  Partial  Partial  Partial  Partial  
8. Health related and social services        
A. Hospital services  Partial  Improved  Partial  Partial  Partial  Partial  
B. Other Human Health Services  Partial  Improved  Partial  Partial  Partial  Partial  
C. Social Services  Partial  Improved  Partial  Partial  Partial  Partial  
D. Other  Partial  --- --- --- --- --- 
9. Tourism and travel related 
services        
A. Hotels  and restaurants (including 
catering)  Partial  Improved  Partial  Partial  Partial  Partial  
B. Travel  agencies  and tour operators   
services  Partial  Improved  Partial  Partial  Partial  Partial  
C. Tourist  guides  services  Partial  Improved  Partial  Partial  Full Full 
D. Other  Partial  --- --- --- --- --- 
10. Recreational and cultural and 
sporting services        
A. Entertainment  services  Partial  Improved  Partial  Partial  Partial  Partial  
B. News agency services  Partial  Improved  Partial  Partial  Partial  Partial  
C. Libraries, archives, museums and 
other cultural services  Partial  Improved  Partial  Partial  Partial  Partial  
D. Sporting and other recreational 
services  Partial  Improved  Partial  Partial  Partial  Partial  
E. Other  --- Improved  Partial  Full Partial  Full 
11. Transport services        
A. Maritime Transport Services  Partial  Improved  Partial  Full Partial  Partial  
B. Internal Waterways Transport  Partial  Lower  --- --- --- --- 
C. Air  Transport  Services  Partial   Excluded  Excluded  Excluded  Excluded  WT/REG406/1  
 
- 29 - 
 
  Sectors / Sub -sectors  GATS  FTA 
Compared 
to GATS  Trade in services  Investment  
Sector 
coverage  Commit -
mentsa Sector 
coverage  Commit -
mentsa 
D. Space  Transport  --- --- --- --- --- --- 
E. Rail Transport  Services  Partial  Improved  Partial  Partial  Partial  Partial  
F. Road  Transport  Services  Partial  Improved  Partial  Partial  Partial  Partial  
G. Pipeline  Transport  Partial  Same  Partial  Partial  Partial  Partial  
H. Services  auxiliary  to all modes  of  
transport  Partial  Same  Partial  Partial  Partial  Partial  
I. Other  Transport  Services  Partial  Same  Partial  Partial  Partial  Partial  
12. Other services not included 
elsewhere  Partial  Improved  Partial  Partial  Partial  Partial  
Note:  MFN and Horizontal limitations, as well as Mode 4 commitments/limitations not included.  
a Information in this column refers only to commitments in sectors or sub -sectors covered under the 
Agreement.  
Full: Specific commitments not su bject to limitation(s) under market access or national treatment.  
Partial:  Specific commitments subject to some limitation(s) under market access or national treatment.  
---: No specific commitment.  
Improved: Overall improved commitments under the Agreemen t compared to those under the GATS.  
Lower:  Overall lower commitments under the Agreement compared to those under the GATS.  
Similar:  Similar liberalization possibly, in individual cases, with limited improvements and/or limited 
additional reservations. The assessment is based on a broad perspective taking into consideration 
both sectoral coverage and the level of specific commitments.  
Excluded: Sector or subsector excluded from the coverage.  
Source:  EU's Schedules annexed to the Agreement and Draft Consolidated GATS Schedule of Specific 
Commitments (S/C/W/273/Suppl.1), which does not cover the result of the 2007 and further EU 
enlargem ents. 
 
4.4.1.2.1   Business services  
4.27.  Under the Agreement, the EU generally broadened the liberalization of business services 
compared to its GATS commitments. Computer and related services are fully liberalized for cross -
border trade in services and investment.34 Full coverage is provided for research and development 
services but for publicly funded R&D services, exclusive rights and authorizations can only be granted 
to nationals and juridical persons of the EU Member States. The coverage of real estate services is 
partial for cross -border trade but full for investment with only one reservation in one EU Member 
State.  
4.4.1.2.2   Communication services  
4.28.  Full liberalization under the Agreement for modes 1, 2 and 3 is provided for some postal and 
courier services including handling of written communications, parcels, packages and express 
delivery services. While the sectoral coverage of telecommunication services under the Agreement 
is the same as under the GATS, all limitations for cross -border trade and investment are removed. 
While audiovisual services are unbound under the GATS, the entire subsector is carved out of the 
Agreement for all modes.  
4.4.1.2.3   Construction and related engineering services  
4.29.  While under the GATS there are partial commitments with limitations, the Agreement fully 
liberalizes all construction and related engineering sectors for cross -border trade and investment.  
4.4.1.2.4   Distribution services  
4.30.  Coverage and commitments under the Agreement are improved as compared to the GATS 
but a number of limitations remain in most sub -sectors.  This is in particular the case for the 
 
34 Sub-section 3 of Section E of Chapter 8 clarifies that, in the context of the liberalization of all modes 
of supply under the Agreement , Division 84 of the CPC covers all computer and related services (Article 8.22). 
However, other services related to content , including inter alia  accounting, auditing and  bookkeeping services, 
architectural services, medical and dental services, audiovisual services and educational services , whose 
provision by both electronic and other means is enabled by computer and related services, are not covered by 
Division 84 of the  CPC. WT/REG406/1  
 
- 30 - 
 
  distribution of alcoholic beverages, tobacco products, pharmaceutical goods and some energy 
products. The distribution of arms, munitions, explosives and other war materials are excluded both 
from the GATS and the Ag reement.  
4.4.1.2.5   Education services  
4.31.  As in the GATS, the Agreement covers only privately funded education services excluding 
hence all publicly funded education services.  In the Agreement, on cross -border  trade,  some EU 
Member States keep primary and secondary educ ation services as unbound. Regarding 
establishment, the participation of private operators in the primary, secondary, higher and adult 
education network is subject to concession s provided for by the domestic laws of the EU Member 
States.  Moreover, a number of other limitations including nationality conditions and economic needs 
tests are maintained.  
4.4.1.2.6   Environmental services  
4.32.  Under the GATS, some EU Member States made commitments in all environmental services 
sub-sectors. Under the Agreement , the EU removes all limitations for all environmental services sub -
sectors except for Mode 1, where only consulting services are committed. For establishment, the EU 
fully liberalizes all environmental services.  
4.4.1.2.7   Financial services  
4.33.  Building upon its GATS c ommitments, the coverage and depth of the EU's commitments under 
the Agreement is enlarged while certain limitations remain. In addition to the specific reservations 
of individual EU Member States, the EU as a whole reserves the right to adopt or maintain any 
measure requiring a financial institution, other than a branch, when establishing in a EU Member 
State, to adopt a specific legal form, on a non -discriminatory basis. Moreover, the EU Council 
directive 85/611 of 20 December 1985, on the coordination of  laws, regulations and administrative 
provisions relating to undertakings for collective investment in transferable securities, is applicable.  
4.4.1.2.8   Health related and social services  
4.34.  The Agreement covers only privately funded services excluding hence all public ly funded 
health related and social services. The Agreement improves, both in terms of coverage and specific 
commitments, the liberalization granted by the EU under the GATS for hospital services, other than 
human health and social services.35 Mode 1 remai ns largely unbound for hospital services and other 
residential health facilities and social services, as under the GATS, while almost no specific 
reservations are kept for mode 2. As for mode 3 under the Agreement, participation by private 
operators in the  health and social network is subject to concession s provided under  the domestic 
laws of the EU Member States and an economic needs test may apply.  
4.4.1.2.9   Tourism and travel related services  
4.35.  The sector is largely covered under the GATS. Under the Agreement, the EU improves its 
coverage and commitments by removing all limitations on mode 2 in all sub -sectors and all 
limitations (except for one Member State) on mode 3 for tourist guides services.  
4.4.1.2.10   Recreational and cultural and sporting services  
4.36.  The coverage and level of liberalization for cross -border trade in services for entertainment, 
news agency, library, archives, museums and other cultural services and sporting and other 
recreation services under the Agreement are the same as under the GATS.  Some reservatio ns remain 
for establishment in some EU Member States, but liberalization tends to be improved with respect 
to the GATS. The coverage of other services for mode 3 is limited to recreation park and beach 
services for which the EU removes all reservations for  establishment. Gambling is not covered.  
 
35 Only commitments made with respect to privately funded health services are covered under the 
Agreement.  WT/REG406/1  
 
- 31 - 
 
  4.4.1.2.11   Transport services  
4.37.  While only partial commitments are made under the GATS, the coverage of maritime, rail and 
road transport services is improved under the Agreement. Maritime passenger and freight transport, 
exclud ing cabotage, is fully liberalized under the Agreement . The EU takes no commitments for 
inland waterways transport. Mode 1 for rail and road transport is unbound under the Agreement 
while mode 2, which is largely unbound under the GATS, is fully liberalize d. Pipeline transportation 
remains largely unbound under the Agreement as under the GATS. Domestic and international air 
transport services, whether scheduled or non -scheduled, and services directly related to the exercise 
of traffic rights are excluded fr om the Agreement.  For other air transport related activities , the EU 
takes commitments for ground -handling.  
4.4.1.2.12   Other services not included elsewhere  
4.38.  Under other services, the EU removed all limitations to mode 2 for hairdressers, cosmetic 
treatments and other  beauty treatment services, while some limitations remain for investment. 
Cross -border trade and establishment are fully liberalized for washing, cleaning and dyeing services, 
spas and non -therapeutic massages and telecommunications connection services.  
4.4.2   Viet Nam  
4.4.2.1   MFN and horizontal commitments  
4.39.  Under the GATS, Viet Nam has retained cross sectoral MFN exemptions, retaining preferential 
treatment under bilateral investment treaties, co -production agreements on audio visual works, as 
well as on maritime transpo rt and services auxiliary to transport services. Viet Nam's horizontal 
limitations under the GATS are the same as under the Agreement.   
4.4.2.2   Sector specific commitments  
4.40.  Table 4.2 provides a comparison of Viet Nam's GATS commitments in modes 1 -3 with those 
taken under the Agreement. Horizontal limitations and MFN reservations are not taken into account 
in the table whic h should be read in conjunction with Annex 8 -B of the Agreement containing 
Viet Nam's schedule of specific commitments for cross -border trade in services and investment 
(Appendix 8 -B-1) and temporary presence of natural persons for business purposes (Appen dix 8-B-
2). 
Table 4.2 Viet Nam: comparison between GATS and Agreement specific commitments  
Sectors / Sub -sectors  GATS  FTA 
Compared 
to GATS  Trade in services  Investment  
Sector 
coverage  Commit -
mentsa Sector 
coverage  Commit -
mentsa 
1. Business services        
A. Professional  Services  Partial  Improved  Partial  Full Partial  Partial  
B. Computer  and Related  Services  Partial  Improved  Full Full Full Partial  
C. Research  and Development  Services  Partial  Improved  Partial  Full Partial  Partial  
D. Real  Estate  Services  None Same  --- --- --- --- 
E. Rental/Leasing  Services  without   
Operators  Partial  Improved  Partial  Full Partial  Partial  
F. Other  Business  Services  Partial  Improved  Partial  Partial  Partial  Partial  
2. Communication services         
A. Postal  services  None Improved  Partial  Partial  Partial  Partial  
B. Courier  services  Partial  Improved  Partial  Full Partial  Full 
C. Telecommunication  services  Partial  Improved  Partial  Partial  Partial  Partial  
D. Audiovisual services  Partial  Lower  Excluded  Excluded  Excluded  Excluded  
E. Other  None Same  --- --- --- --- 
3. Construction and related engineering 
services        
A. General  construction  work for buildings  Partial  Same  Full Partial  Full Partial  
B. General  construction  work for civil  
Engineering  Partial  Same  Full Partial  Full Partial  
C. Installation  and assembly  work  Partial  Same  Full Partial  Full Partial  
D. Building  completion  and finishing  work  Partial  Same  Full Partial  Full Partial  
E. Other  Partial  Same  Full Partial  Full Partial  WT/REG406/1  
 
- 32 - 
 
  Sectors / Sub -sectors  GATS  FTA 
Compared 
to GATS  Trade in services  Investment  
Sector 
coverage  Commit -
mentsa Sector 
coverage  Commit -
mentsa 
4. Distribution services        
A. Commission  agents'  services  Partial  Improved  Partial  Partial  Partial  Partial  
B. Wholesale  trade services  Partial  Improved  Partial  Partial  Partial  Partial  
C. Retailing  services  Partial  Improved  Partial  Partial  Partial  Partial  
D. Franchising  Partial  Same  Partial  Partial  Partial  Partial  
E. Other  None Same  --- --- --- --- 
5. Education services        
A. Primary education services  None Same  --- --- --- --- 
B. Secondary education services  Partial  Same  Partial  Partial  Partial  Partial  
C. Higher education services  Partial  Improved  Partial  Full Partial  Partial  
D. Adult education  Partial  Improved  Partial  Full Partial  Partial  
E. Other education services  Partial  Improved  Partial  Full Partial  Partial  
6. Environmental services         
A. Sewage services  Partial  Improved  Partial  Partial  Full Partial  
B. Refuse disposal services  Partial  Same  Partial  Partial  Partial  Partial  
C. Sanitation and similar services  None Improved  Full Full Full Full 
D. Other  Partial  Improved  Partial  Partial  Partial  Partial  
7. Financial services        
A. All insurance  and insurance -
related  services  Partial  Improved  Partial  Partial  Partial  Partial  
B. Banking  and other  financial  services  Partial  Improved  Partial  Partial  Partial  Partial  
8. Health related and social services        
A. Hospital services  Partial  Improved  Full Full Full Full 
B. Other Human Health Services  None Same  --- --- --- --- 
C. Social Services  None Improved  Full Full Full Partial  
D. Other  None Same  --- --- --- --- 
9. Tourism and travel related services        
A. Hotels  and restaurants (including 
catering)  Partial  Same  Partial  Full Partial  Full 
B. Travel  agencies  and tour operators   
services  Partial  Same  Full Full Full Partial  
C. Tourist  guides  services  None Same  --- --- --- --- 
D. Other  None Same  --- --- --- --- 
10. Recreational and cultural and 
sporting services        
A. Entertainment  services  Partial  Same  Partial  Partial  Partial  Partial  
B. News agency services  None Same  --- --- --- --- 
C. Libraries, archives, museums and other 
cultural services  None Same  --- --- --- --- 
D. Sporting and other recreational services  Partial  Same  Partial  Partial  Partial  Partial  
E. Other  None Same  --- --- --- --- 
11. Transport services        
A. Maritime Transport Services  Partial  Improved  Partial  Full Partial  Partial  
B. Internal Waterways Transport  Partial  Lower  --- --- --- --- 
C. Air  Transport  Services  Partial  Improved  Partial  Partial  Partial  Partial  
D. Space  Transport  --- --- --- --- --- --- 
E. Rail  Transport  Services  Partial  Same  Partial  Partial  Partial  Partial  
F. Road  Transport  Services  Partial  Same  Partial  Partial  Partial  Partial  
G. Pipeline  Transport  None Same  --- --- --- --- 
H. Services  auxiliary  to all modes  of  
transport  Partial  Improved  Partial  Partial  Partial  Partial  
I. Other  Transport  Services  None Same  --- --- --- --- 
12. Other services not included 
elsewhere  None Same  --- --- --- --- 
General:  MFN and Horizontal limitations, as well as Mode 4 commitments/limitations not included.  
a Information in this column refers only to commitments in sectors or sub -sectors covered under the 
Agreement.  
Full: Specific commitments not subject to limitation(s) under mar ket access or national treatment.  
Partial:  Specific commitments subject to some limitation(s) under market access or national treatment.  
---: No specific commitment.  
Improved:  Overall improved commitments under the Agreement compared to those under the GA TS. 
Lower:  Overall lower commitments under the Agreement compared to those under the GATS.  
Excluded: sector or subsector excluded from the coverage.  
Source:  Viet Nam's Schedules annexed to the Agreement and GATS Schedule of Specific Commitments 
(GATS/SC/ 142). WT/REG406/1  
 
- 33 - 
 
  4.4.2.2.1   Business services  
4.41.  Viet Nam improved t he coverage of and commitments on professional services  by removing 
a limitation  in mode 1 for urban planning and urban landscape architectural services and liberalizing 
nursing services, physiotherapists and para -medical personnel services. It also improved the 
coverage of computer related services. The coverage of research and development services  is wider 
under the Agreement as Viet Nam  liberalized interdisciplinary R&D services  (not included in its GATS 
schedule) , subject to a cap of 70% of foreign capital for  joint-ventures . The coverage of 
rental/leasing services without operators is also impro ved by the inclusion of services relating to 
ships and liberalising further services relating to other machinery and equipment . Other business 
services such as some technical testing and analysis services , some building -cleaning services, 
special photograp hy, packaging services, trade fairs and exhibitions services are covered by the 
Agreement  while they are not included in Viet Nam's GATS commitments . 
4.4.2.2.2   Communication services  
4.42.  The coverage of courier services under the Agreement is improved compared to GATS  with 
the inclusion of other courier services.  Viet Nam also  liberalized postal services under the Agreement  
with the exclusion of public services and reserved services . The coverage of telecommunication 
services under the Agreement is the same as under the GATS. The commitments in market access 
and national treatment are improved offering additional liberalisation through either improved 
foreign equity caps in certain sub -sectors  or their abolition in others. In contrast with  the GATS, 
however, Viet Nam did not make any commitment for audiovisual under the Agreement.  
4.4.2.2.3   Construction and related engineering services  
4.43.  The coverage of , and commitments on , construction and related engineering services under 
the Agreement are identical to those under GATS . 
4.4.2.2.4   Distrib ution services  
4.44.  The coverage of distribution services and the limitations on modes 1 and 2 under the 
Agreement are the same as under the GATS. As to mode 3, the requirement of an economic needs 
test for the establishment of outlets, maintained under the GAT S, will be abolished five years from 
the entry into force of the Agreement.  The Parties also signed an Understanding concerning specific 
commitments on distribution services of wines and spirits.36 
4.4.2.2.5   Education services  
4.45.  The coverage of education services unde r the Agreement is identical to that under GATS.  Viet 
Nam improved its commitments by removing mode 1 limitations  in higher , adult and other education 
services which are unbound under the GATS .  
4.4.2.2.6   Environmental services  
4.46.  Compared to GATS, Viet Nam improved it s commitments in sewage services by removing all 
limitations on national treatment . The coverage of and commitments on refuse disposal services 
under the Agreement are identical to those under GATS. Sanitation and similar services are fully 
liberalized und er the Agreement. Improvements in other services consist s of the inclusion of nature 
and landscape protection services which are not covered under the GATS.  
4.4.2.2.7   Financial services  
4.47.  Under the Agreement, Viet Nam improved t he coverage of and commitments on financ ial 
services compared to the GATS.  In insurance, it made new commitments for cross -border  trade in 
retrocession services and for investment in health insurance services . Branch es of foreign 
reinsurance enterprises  are allowed after three years from the entry into force of the Agreement . In 
 
36 The Understanding does not provide for any new commitments but it ensures that the commitments 
made in GATS are not implemented in a detriment al manner for the EU providers of wines and spirits which 
would have been the case not only for the EU, if the understanding was not agreed.  WT/REG406/1  
 
- 34 - 
 
  banking, Viet Nam agreed that foreign bank branches controlled by a n EU financial institution are 
allowed to submit combined financial reports instead of individual report s. In securities, it removed 
some limitations o n national treatment for the provision and transfer of financial information , 
financial data processing  and certain advisory  and other auxiliary services.    
4.4.2.2.8   Health related and social services  
4.48.  Viet Nam removed all limitations on hospital services and medica l and dental services , 
improving the ir treatment under the GATS. Under the Agreement, Viet Nam also liberalized social 
services to maintain a limit of up to 70% on foreign capital in joint ventures.  
4.4.2.2.9   Tourism and travel related services  
4.49.  The coverage of and c ommitments on tourism and travel related services under the 
Agreement are identical to those under GATS.  
4.4.2.2.10   Recreational and cultural and sporting services  
4.50.  The coverage of and commitments on recreational and cultural and sporting services under 
the Agreement are identical to those under GATS.  
4.4.2.2.11   Transport services  
4.51.  While, under the GATS, mode 1 for maritime transport services is unbound, except for 
international freight transportation, under the Agreement, Viet Nam maintains no limitations for 
modes 1 and 2  except  for maritime auxiliary services . In mode 3, Viet Nam increased the foreign 
equity cap from 49% under the GATS to 70% under the Agreement for passengers and freight 
maritime transportation. Moreover, it made new commitments in maintenance and repair of ves sels, 
maritime agency services and container station and depot services.  
4.52.  As to air transport services, Viet Nam included ground -handling services and in -flight meal 
serving services under the Agreement with limitations on mode 3. The limitations on sales and 
marketing of air products services, computer reservation services and maintenance and repair of 
aircrafts are the same as under the GATS.  
4.53.  While Viet Nam has some commitments on internal waterways transport  in the GATS , it did 
not include any under the Agreement. The coverage of and commitments on rail and road transport 
services under the Agreement are identical to those under GATS  while mode 1 commitments in 
services auxiliary to all modes of transport are improved  with the inclusion of new commitments in 
maritime cargo handling services, container handling services (except services provided at airports), 
storage and warehouse services and dredging services.  
4.5  Regulatory provisions  
4.5.1   Domestic regulation  
4.54.  Rules on domestic regulation are contained in Sub -Section 1 of Section E of Chapter 8. They 
apply to measures of a Party relati ng to licensing or qualification requirements and procedures that 
affect the cross -border supply of services, establishment and temporary stay for natural persons of 
the other Party in the territory of the Party (Article 8.18). The application is limited t o the sectors 
for which the Parties have undertaken specific commitments. Domestic regulation provisions do not 
apply to measures scheduled as limitations on market access under Articles 8.4 and 8.10 or national 
treatment under Articles 8.5 and 8.11.  
4.55.  Articles 8.19 and 8.20 , respectively , provide for conditions and procedures for licensing and 
qualification.  
4.5.2   Recognition  
4.56.  Article 8. 21 covers mutual recognition of professional qualifications. The Parties shall 
encourage the relevant professional bodies in the ir respective territories to develop and provide a WT/REG406/1  
 
- 35 - 
 
  joint recommendation on mutual recognition to the Committee on Investment, Trade in Services, 
Electronic Commerce and Government Procurement , established under Article 17.2, without 
preventing a Party from  requiring that natural persons possess the necessary qualifications and/or 
professional experience specified in the territory where the service is supplied, for the sector of 
activity concerned.  
4.5.3   Subsidies  
4.57.  Section B of Chapter 10 applies to specific subsi dies to enterprises supplying both goods and 
services except sectors or sub -sectors which the Parties have not listed in Chapter 8 (Article 10.5). 
Article 10.7 ( transparency) and Article 10.9 ( specific subsidies subject to conditions) apply only to 
the fol lowing services sectors: telecommunications, banking, insurance, transport including maritime 
transport, energy, computer services, architecture and engineering, and construction and 
environmental services, subject to the reservations provided for in Chapt er 8. 
4.58.  The Parties shall review the inclusion of additional services sectors under the scope of the 
Section in Article 10.5 no later than five years of the entry into force of the Agreement and at regular 
intervals thereafter (Article 10.10).  
4.5.4   Safeguards  
4.59.  The possibility of imposing restrictive measures on trade in services and establishment in 
order to safeguard a Party's balance -of-payments or external financial position is foreseen by the 
Agreement (Article  17.12). Such measures shall be in accordance with the WTO Agreement and 
consistent with the Articles of Agreement of the IMF  as applicable . 
4.60.  Moreover, in exceptional circumstances, if capital movements, payments and transfers cause 
or threaten to cause serious difficulties for the operation of economic and monetary policy or 
exchange rate policy, a Party may impose safeguard measures that are strictly necessary to address 
such difficult ies for a period not to exceed one year (Article 17.11).  
4.6  Sector specific provisions on trade in services  
4.6.1   Postal services  
4.61.  Sub-section 4 of Section E of Chapter 8 includes specific provisions on postal services. Under 
Article 8.23, the Parties shall introdu ce or maintain appropriate measures to prevent suppliers of 
postal services from engaging in or continuing anti -competitive practices.  
4.62.  Article 8.24 deals with licences for providing postal services while Article 8.25 provides for the 
independence of regul atory bodies.  
4.6.2   Telecommunications networks and services  
4.63.  Sub-section 5 of Section E of Chapter 8 sets out the principles of the regulatory framework 
for the provision of public telecommunication networks and services (Article 8.26). The sub-section 
does not  apply to measures relating to broadcasting or cable distribution of radio or television 
programming .  
4.64.  The sub-section also contains, inter alia , provisions on the regulatory authority, the 
authorization to provide telecommunications networks and services,  access to and use of public 
telecommunications networks and services, interconnection, competitive safeguards, number 
portability, confidentiality of information, resolution of disputes , co-location, leased circuits services  
and unbundled network elements  (Article 8.2 8 through 8.40).   
4.6.3   Financial services  
4.65.  Sub-section 6 of Section E of Chapter 8 sets out the principles of the regulatory framework 
for all financial services liberalized under the Agreement (Article 8.41).  WT/REG406/1  
 
- 36 - 
 
  4.66.  Article 8. 42 provides for a prudential carve -out for the protection of investors, deposi tors, 
policy -holders or persons to whom a fiduciary duty is owed by a financial service supplier and for 
the integrity and stability of the Parties' financial system.  
4.67.  Each Party shall permit a financial service supplier of the other Party to supply any new  
financial service that the first Party would permit its own like financial service suppliers to supply 
without additional legislative action required (Article 8.44).  
4.68.  Each Party shall adopt or maintain appropriate safeguards to protect personal data and 
privacy, including individual records and accounts (Article 8.45). The Parties shall permit the transfer 
of information in electronic or other form for data processing no later than two years from the entry 
into force of the agreement.  
4.69.  Article 8.43 provide s for transparent regulation. Specific exceptions are set out in Article 8.46  
while Article 8.47 provides for self -regulatory organizations . Access to clearing and payment systems 
operated by public entities and to official funding and refinancing facilities available in the normal 
course of ordinary business is provided for in Article 8.48.  
4.70.  The Understanding concerning bank equity states that, within five years from the date of 
entry into force of the Agreement, the Vietnamese authoriti es shall favourably consider the proposal 
by the EU's financial institutions to allow  total equity held by foreign investors in two joint -stock 
commercial banks of Viet Nam of up to 49 per cent of the enterprise's chartered capital.  
4.6.4   International maritime transport services  
4.71.  Sub-section 7 of Section E of Chapter 8 sets out the principles regarding the liberalisation of 
international maritime transport services  (Article 8. 49).  
4.72.  The Parties agree to ensure non -discriminatory unrestricted access to internationa l maritime 
markets and trades . Each Party shall grant, to ships flying the flag of the other Party or operated by 
service suppliers of the other Party, treatment no less favourable than that granted to its own ships 
with regard to, inter alia , access to po rts, the use of infrastructure and auxiliary maritime services 
of the ports, as well as related fees and charges, customs facilities and access to berths and facilities 
for loading and unloading.  
4.73.  The Parties shall not introduce cargo -sharing arrangements in future agreements with third 
countries concerning international maritime transport services, including dry and liquid bulk and 
liner trade, and terminate, within a reasonable period of time, such cargo -sharing arrangements in 
case they exist in previous  agreements ; they shall  also abolish and abstain from introducing any 
unilateral measure which could constitute a disguised restriction or could have discriminatory effects 
on the free supply of services in international maritime transport.  
4.74.  The Article also disciplines how the EU and Viet Nam shall permit each other's  international 
maritime transport service suppliers to i) re -position empty containers which are not being carried 
as cargo against payment and are transported for their use in handling their cargo in foreign trade, 
between ports and ii) provide feeder services between their national ports.   
5  GENERAL PROVISIONS OF THE AGREEMENT  
5.1  Transparency  
5.1.  Rules governing general transparency disciplines are contained in Chapter 1 4. Articles 1 4.1 
through 1 4.7 provide for objectives and scope,  definitions, publication, enquires and contact points, 
administrati on of measures of general application , review  and appeal , good regulatory quality and 
administrative behaviour.  
5.2.  Chapter 14 applies without prejudice to any specific rules established in other Chapters of the 
Agreement (Article 1 4.8). WT/REG406/1  
 
- 37 - 
 
  5.2  Current payments and capital movements  
5.3.  The Parties shall authorize any payments and transfers on the current account of the balance 
of payments between them, in freely convertibl e currency and in accordance with the relevant IMF 
provisions (Article 17 .8).  
5.4.  They shall not impose any restrictions on the free movement of capital relating to investments 
liberalised in accordance with Section B of Chapter 8 (Article 17.9).  
5.5.  Articles 17.8 and 17.9 shall not be construed as preventing a Party from applying in an 
equitable and non -discriminatory manner, and in a way that would not constitute a disguised 
restriction on trade and investment, its laws and regulations relating to, inter alia , bankruptcy, 
insolvency, prudential supervision of financial institution, issuing, trading or dealing in financial 
instruments, social security, public retirement or compulsory savings schemes (Article 17.10).  
5.6.  In exceptional circumstances of seri ous difficulties , or threat thereof, for the operation of the 
EU's monetary union or the monetary and exchange rate policy of Viet Nam,  the Party concerned 
may take safeguard measures that are strictly necessary with regard to capital movements, 
payments o r transfers for a period not exceeding one year  (Article 1 7.11).  
5.3  Exceptions  
5.7.  Nothing in Chapter 2 shall prevent either Party from taking measures in accordance with 
Article  XX of GATT 1994, including its Notes and Supplementary Provisions, which are incorp orated 
into and made part of the Agreement, mutatis mutandis  (Article 2. 22).37  
5.8.  Article 17.13 largely replicates the provisions in Article XXI of GATT 1994 and in Article XIV bis 
of the GATS for measures related to national security. As in the case of gener al exceptions, through 
Article 9.3, elements of the security exception are also made applicable to Chapter 9 on Government 
procurement.   
5.4  Accession and withdrawal  
5.9.  Article 17.23 governs the impact of the accession of new EU Member States on the Agreement. 
The Agreement does not contain any other accession provisions.  
5.10.  Termination is governed by Article 17.17 and can take place six months after the date of 
written notice given by a Party. The Agreement is otherwise valid indefinitely.  
5.11.  Amendments to the Agreeme nt are possible and their entry into force follows an exchange of 
notifications certifying that the Parties have completed their respective applicable legal procedures 
(Article 17.5).  
5.5  Institutional framework  
5.12.  The Trade Committee is established in Article 17 .1 while the Committee on Trade in Goods, 
the Committee on Customs, the SPS Committee, the Committee on Investment, Trade in Services, 
Electronic Commerce and Government Procurement and the Committee on Trade and Sustainable 
Development are established in Article 17.2.   
5.13.  The Trade Committee shall meet alternately in the EU or Viet Nam once a year or at the 
request of a Party in urgent cases. Its functions include ensuring the proper functioning of the 
Agreement, supervising and facilitating its implementatio n and application, supervising the work of 
all specialized committees, working groups and other bodies established under the Agreement, 
considering ways to further enhance trade and investment between the Parties and seeking to solve 
 
37 Before taking any measures provided for in paragraphs (i) and (j) of Article XX of GATT 1994, the 
exporting Party  intending to take the measures shall provide the other Party with all relevant information, with 
a view to seeking a solution acceptable to the Parties. Where exceptional and critical circumstances requiring 
immediate action make prior information or exam ination impossible, the exporting Party may apply the 
necessary precautionary measures and shall inform the other Party immediately thereof.  WT/REG406/1  
 
- 38 - 
 
  problems which might a rise under the Agreement.  The Trade Committee has the power to take 
binding decisions by mutual consent and the Parties shall take the measures necessary for their 
implementation (Article 17.4). The Trade Committee may also make appropriate recommendations 
to the Parties.  
5.14.  The Comm ittee on Trade in Goods shall consider any matter arising under Chapter 2 and 
Protocol 1 and comprise representatives of the Parties (Article  2.23).38 Its functions include 
monitoring the implementation of Chapter 2 and Protocol 1, promoting , facilitating and improving 
market access including any acceleration of tariff commitments, recommending the Trade 
Committee to establish working groups, and proposing decisions to be adopted by the Trade 
Committee for amending the list of fragrant rice varieties for wh ich the EU maintains TRQs.  
5.15.  The Working Group on Intellectual Property Rights, including Geographical Indications and 
the Working Group on Motor Vehicles and Parts are established by Article 17.3 under the auspices 
of the Committee on Trade in Goods.  
5.16.  The C ommittee on Customs shall ensure the proper functioning of Chapter 4 on customs and 
trade facilitation, Sub -Section 4 of Section C of Chapter 12 (intellectual property ), Protocol 1 (rules 
of origin), Protocol 2 (mutual administrative assistance on customs matters) and any additional 
provisions relating to customs that the Parties may agree on (Article 4.16). It has the power to adopt 
decisions on mutual recognition of risk management techniques, risk criteria and standards, security 
controls and trade partn ership programmes, including aspects such as data transmission and 
mutually agreed benefits.  
5.17.  The SPS Committee  may address any matter related to the effective functioning of Chapter 6 
on SPS, including facilitating communication and strengthening cooperat ion between the Parties 
(Article 6.11).39 All decisions made by the SPS Committee shall be by mutual agreement.  
5.18.  The Committee on Investment, Trade in Services, Electronic Commerce and Government 
Procurement  is responsible for the implementation and review  of Chapter 8 (Article 8. 54). The 
Committee's responsibilities in relation to Government procurement are set out in Article 9. 23.  
5.19.  The Committee on Trade and Sustainable Development  shall meet within the first year after 
the date of entry into force of the Agreement, and thereafter as necessary, to review the 
implementation of Chapter 13 on sustainable development and it shall establish its own rules of 
procedure, and reach its concl usions by mutual agreement (Article 13.15).  
5.6  Dispute settlement  
5.20.  Chapter 15 regulates the settlement of disputes between the Parties concerning the 
interpretation and application of the Agreement. The Chapter contains disciplines on consultations 
and mediat ion (Section B), dispute settlement procedures (Section C) and general provisions 
(Section D).  
5.21.  Recourse to the dispute settlement provisions of Chapter 15 is without prejudice to recourse 
to dispute settlement at the WTO (Article 15.24). A Party shall not  initiate dispute settlement 
proceedings  for the breach of a substantially equivalent obligation  under both Chapter 1 5 of the 
Agreement and the WTO Agreement or any other international agreement unless the selected forum 
fails, for procedural or jurisdicti onal reasons, to make findings on the claim seeking redress in 
relation to the relevant obligation. Nothing in the Agreement shall preclude a Party from suspending 
obligations authorized by the WTO Dispute Settlement Body, and a Party shall not invoke the WTO 
Agreement to preclude the other Party from suspending obligations in accordance  with Chapter 1 5. 
5.22.  The Parties shall endeavour to resolve any dispute by entering into consultations in good faith 
with the aim of reaching a mutually agreed solution (Articl e 15.3). A Party shall seek consultations 
by means of a written request and consultations shall be held  in the territory of the Party complained 
 
38 The first meeting of the Committee on Trade in Goods was held on 27 May 2021. The Committee 
exchanged views and u pdates on the implementation of trade in goods issues regulated in Chapter 2 and other 
Chapters such as Chapter 12 on intellectual property rights.  
39 The first meeting of the SPS Committee was held on 25 May 2021 and discussed several issues 
related to the implementation of Chapter 6  WT/REG406/1  
 
- 39 - 
 
  against within 30 days of the receipt of the request , unless otherwise agreed . Consultations shall be 
deemed concluded within 45 days, unless the Parties agree to continue .40 If the Party complained 
against does not respond to the request for consultations within 15 days, consultations are not held 
within the timeframes , the Partie s agree not to have consultations or no mutually agreed solution 
has been reached, the complaining Party may request the establishment of an arbitration panel.  
5.23.  The request for the establishment of an arbitration panel shall be made in writing to the Party 
complained against and to the Trade Committee (Article 15.5).41 If a Party so requests, the 
arbitration panel shall give a preliminary ruling within ten days of its establishment on whether it 
deems the case to be urgent (Article 15.9).  
5.24.  The arbitration pan el shall issue an interim report setting out the findings of fact, the 
applicability of relevant provisions of the Agreement, and the basic rationale behind any findings and 
recommendations, not later than 90 days from the date of its establishment (Articl e 15.10).42 Any 
Party may submit a written request for the arbitration panel to review specific aspects of the interim 
report within 14 days of its notification. After considering any written comments by the Parties, the 
arbitration panel may modify its re port and make any further examination it considers appropriate. 
It shall issue its final report to the Parties and to the Trade Committee within 1 20 days from the 
date of its establishment (Article 15.11 ).43  
5.25.  If immediate compliance with the final report is not possible, t he Part ies shall endeavour to 
mutually agree on the period of time to comply with the final report  and the Party complained against 
shall notify, no later than 30 days after the receipt of the final report , the complaining Party and the 
Trade Committee of the reasonable period of time it will require for compliance (Article 1 5.13). If 
there is disagreement between the Parties, the complaining Party shall request in writing that the 
original arbitration panel determines the reasonable period  of time for compliance. The Party 
complained against shall inform the complaining Party in writing of its progress to comply with the 
final report , at least 30 days before the expiry of the reasonable period of time, which may be 
extended by mutual agreem ent of the Parties.  Article 15.14 provides for the review of the measures 
taken to comply with the final report.  
5.26.  In case of non -compliance, the Party complained against , after consultations,  shall present 
an offer for compensation if requested by the complaining Party (Article  15.15). If the complaining 
Party does not request an offer for compensation or no agreement on compensation is reached 
within 30 days, the complaining Party shall be entitled,  upon notification to the other Party and to 
the Trade Committee, to suspend its obligations at a level equivalent to the nullification or 
impairment caused by the violation. If the Party complained against considers that the level of 
suspension is not equ ivalent to the nullification or impairment caused by the violation, it may request 
in writing that the original arbitration panel rule on the matter. The suspension of obligations shall 
be temporary and shall not be applied after the Parties have reached a  mutually agreed solution, or 
reached an agreement that the measure taken to comply brings the Party complained against into 
conformity with the provisions of the Agreement, or any measure found to be inconsistent with the 
provisions of the Agreement has b een withdrawn or amended so as to bring it into conformity with 
those provisions.  Article 15.16 provides for the review of the measures taken to comply after the 
adoption of temporary remedies for non -compliance.  
 
40 For matters of urgency including those regarding perishable goods and seasonal goods and services, 
the timeframes are 15 days for the initiation of consultations which shall be deemed concluded within 20 days.  
41 Article 15.6 includes the terms of reference of the arbitration panel to be adopted unless the Parties 
agree otherwise within 10 days of the selection of the arbitrators. Articles 15.7 and 15.8 deal with the 
establishment of the arbitration panel and its d ispute settlement proceedings. The rules of procedures and the 
code of conduct for arbitrators are set out respectively in Annexes 15 -A and 15 -B. 
42 When the arbitration panel considers that the deadline cannot be met, it must notify the Parties and 
the Tra de Committee in writing, stating the reasons for the delay and the date on which the arbitration panel 
plans to issue its interim report. Under no circumstances should the arbitration panel issue its interim report 
later than 120 days after the date of its  establishment. In cases of urgency, the arbitration panel shall make 
every effort to issue its interim report within 45 days and no later than 60 days after the date of its 
establishment.  
43 When the arbitration panel considers that the deadline cannot be met, it must notify the Parties and 
the Trade Committee in writing, stating the reasons for the delay and the date on which the arbitration panel 
plans to issue its final report. Under no circumstances should the arbitration panel issue its final report la ter 
than 150 days after the date of its establishment. In cases of urgency, the arbitration panel shall make every 
effort to issue its final report within 60 days and no later than 75 days after the date of its establishment.  WT/REG406/1  
 
- 40 - 
 
  5.27.  The arbitration panel shall, at the reques t of both Parties, suspend its work at any time for a 
period agreed by the Parties, which shall not exceed twelve consecutive months (Article 1 5.18). It 
shall resume its work at the end of the agreed period at the written request of either  Party or before 
the end of the agreed period at the written request of both Parties. If a Party does not request the 
resumption of the arbitration panel's work before the expiry of the agreed period, the dispute 
settlement procedures shall be deemed terminated. At any tim e before the issuance of the final 
report of the arbitration panel , the Parties may agree in writing to terminate the dispute settlement 
procedures.  
5.28.  The Parties may reach a mutually agreed solution to a dispute at any time and they shall 
jointly notify the  Trade Committee and the chairperson of the arbitration panel of such solution 
(Article 1 5.19).44  
5.29.  They may also at any time agree to enter into the mediation procedure provided for in Annex 
15-C with respect to any measure adversely affecting trade or lib eralisation of investment between 
the Parties  (Article 15.4) . The objective of the mediation mechanism is to facilitate the finding of a 
mutually agreed solution through a comprehensive and expeditious procedure with the assistance 
of a mediator (Article 1  of Annex 15 -C).45  
5.7  Relationship with other agreements concluded by the parties  
5.30.  The Parties agree that nothing in the Agreement requires them to act in a manner inconsistent 
with their obligations under the WTO Agreement (Article 17.22). The Agreement is a n integral part 
of the overall relations between the EU and its Member States and Viet Nam as governed by the 
Partnership and Cooperation Agreement and it forms part of a common institutional framework.  
5.31.  If any provision of the WTO Agreement that the Parti es have incorporated into the Agreement 
is amended, the Parties shall consult with each other, via the Trade Committee, with a view to finding 
a mutually satisfactory solution and he Trade  Committee  may decide to amend the Agreement 
accordingly (Article 17.6).  
5.32.  In the Joint Declaration concerning Customs Unions, the EU recalls that those countries which 
have concluded a customs union with the EU have the obligation to align their trade regime to that 
of the EU and to conclude preferential agreemen ts with countries that have preferential agreements 
with the EU. Viet Nam shall consider starting negotiations with those countries that established a 
customs union with the EU and whose products do not benefit from the tariff concessions under the 
Agreeme nt.46  
5.33.  Table 5.1 shows the Parties' RTAs in force, notified and non -notified, other than the 
Agreement.  
Table 5.1 EU and Viet Nam: Participation in other RTAs (no tified and non -notified in 
force), as of 7 June 2021  
RTA Name  Date of 
entry into 
forcea Coverage  GATT/WTO Notification  
Year  WTO Provision  
EUROPEAN UNION  
EU – United Kingdom  01-Jan-21 Goods & Services  2021 GATT Art. XXIV & GATS Art. V  
EU – Pacific States – Accession 
of Solomon Islands  17-May-20 Goods  2020 GATT Art. XXIV  
EU – Singapore  21-Nov-19 Goods & Services  2020 GATT Art. XXIV & GATS Art. V  
 
44 Information and technical ad vice, rules of interpretation and decisions and rulings of the arbitration 
panel are regulated by Articles 15.20, 15.21 and 15.22 . 
45 Section A of Annex 15 -C covers the procedures under the mediation mechanism including the request 
for information, initiati on and rules of the procedure and the selection of the mediator. Section B governs the 
implementation of a mutually agreed solution. The mediation procedure is without prejudice to the Parties' 
rights and obligations under Chapter 15 and is not intended to  serve as a basis for dispute settlement under 
the Agreement or any other agreement (Article 7 of Annex 15 -C). 
46 The EU informed that ongoing negotiations on a free trade agreement between Viet Nam and EFTA 
were launched in July 2012 and the first round was conducted in January 2013 . Negotiations between Viet Nam 
and Turkey had not yet started.  Viet Nam did not provide any update.  WT/REG406/1  
 
- 41 - 
 
  RTA Name  Date of 
entry into 
forcea Coverage  GATT/WTO Notification  
Year  WTO Provision  
EU – Eastern and Southern 
Africa States – Accession of 
Comoros  07-Feb-19 Goods  2021 GATT Art. XXIV  
EU - Japan  01-Feb-19 Goods & Services  2019 GATT Art. XXIV & GATS Art. V  
EU – Pacific States – Accession 
of Samoa  31-Dec-18 Goods  2020 GATT Art. XXIV  
EU - Armenia  01-Jun-18 Services  2019 GATS Art. V  
EU - Canada  21-Sep-17 Goods & Services  2017 GATT Art. XXIV & GATS Art. V  
EU - Colombia and Peru - 
Accession of Ecuador  01-Jan-17 Goods & Services  2017 GATT Art. XXIV & GATS Art. V  
EU - Ghana  15-Dec-16 Goods  2017 GATT Art. XXIV  
EU - SADC  10-Oct-16 Goods  2017 GATT Art. XXIV  
EU - Côte d'Ivoire  03-Sep-16 Goods  2008 GATT Art. XXIV  
EU - Georgia  01-Sep-14 Goods & Services  2014 GATT Art. XXIV & GATS Art. V  
EU - Republic of Moldova  01-Sep-14 Goods & Services  2014 GATT Art. XXIV & GATS Art. V  
EU - Cameroon  04-Aug-14 Goods  2009 GATT Art. XXIV  
EU - Ukraine  23-Apr-14 Goods & Services  2014 GATT Art. XXIV & GATS Art. V  
EU - Central America  01-Aug-13 Goods & Services  2013 GATT Art. XXIV & GATS Art. V  
EU - Colombia and Peru  01-Mar-13 Goods & Services  2013 GATT Art. XXIV & GATS Art. V  
EU - Eastern and Southern 
Africa States  14-May-12 Goods  2012 GATT Art. XXIV  
EU - Republic of Korea  01-Jul-11 Goods & Services  2011 GATT Art. XXIV & GATS Art. V  
EU - Serbia  01-Feb-10 
01-Sep-13 Goods  
Services  2010 
2013 GATT Art. XXIV  
GATS Art. V  
EU - Pacific States  20-Dec-09 Goods  2011 GATT Art. XXIV  
EU - CARIFORUM States  29-Dec-08 Goods & Services  2008 GATT Art. XXIV & GATS Art. V  
EU - Bosnia and Herzegovina  01-Jul-08 
01-Jun-15 Goods  
Services  2008 
2016 GATT Art. XXIV  
GATS Art. V  
EU - Montenegro  01-Jan-08 
01-May-10 Goods  
Services  2008 
2010 GATT Art. XXIV  
GATS Art. V  
EU - Albania  01-Dec-06 
01-Apr-09 Goods  
Services  2007 
2009 GATT Art. XXIV  
GATS Art. V  
EU - Algeria  01-Sep-05 Goods  2006 GATT Art. XXIV  
EU - Egypt  01-Jun-04 Goods  2004 GATT Art. XXIV  
EU - Lebanon  01-Mar-03 Goods  2003 GATT Art. XXIV  
EU - Chile 01-Feb-03 
01-Mar-05 Goods  
Services  2004 
2005 GATT Art. XXIV  
GATS Art. V  
EU - Jordan  01-May-02 Goods  2002 GATT Art. XXIV  
EU - San Marino  01-Apr-02 Goods  2010 GATT Art. XXIV 
EU - North Macedonia  01-Jun-01 
01-Apr-04 Goods  
Services  2001 
2009 GATT Art. XXIV  
GATS Art. V  
EU - Mexico  01-Jul-00 
01-Oct-00 Goods  
Services  2000 
2002 GATT Art. XXIV  
GATS Art. V  
EU - Israel  01-Jun-00 Goods  2000 GATT Art. XXIV  
EU - Morocco  01-Mar-00 Goods  2000 GATT Art. XXIV  
EU - South Africa  01-Jan-00 Goods  2000 GATT Art. XXIV  
EU - Tunisia  01-Mar-98 Goods  1999 GATT Art. XXIV  
EU - Palestine  01-Jul-97 Goods  1997 GATT Art. XXIV  
EU - Faroe Islands  01-Jan-97 Goods  1997 GATT Art. XXIV  
EU - Turkey  01-Jan-96 Goods  1995 GATT Art. XXIV  
European Economic Area (EEA)  01-Jan-94 Services  1996 GATS Art. V  
EU - Andorra  01-Jul-91 Goods  1998 GATT Art. XXIV  
EU - Syria 01-Jul-77 Goods  1977 GATT Art. XXIV  
EU - Norway  01-Jul-73 Goods  1973 GATT Art. XXIV 
EU - Iceland  01-Apr-73 Goods  1972 GATT Art. XXIV  
EU - Switzerland - Liechtenstein  01-Jan-73 Goods  1972 GATT Art. XXIV  
EU – Overseas Countries and 
Territories (OCT)  01-Jan-71 Goods  1970 GATT Art. XXIV  
EU – Kosovob 01-Apr-16 Goods  Not notified  WT/REG406/1  
 
- 42 - 
 
  RTA Name  Date of 
entry into 
forcea Coverage  GATT/WTO Notification  
Year  WTO Provision  
VIET NAM  
United Kingdom – Viet Nam  01-May-21 Goods & Services  2020 GATT Art. XXIV & GATS Art. V  
ASEAN – Hong Kong, China  11-Jun-19 Goods & Services  2021 GATT Art. XXIV & GATS Art. V  
Comprehensive and Progressive 
Agreement for Trans -Pacific 
Partnership (CPTPP)  14-Jan-19 Goods & Services  2018 GATT Art. XXIV & GATS Art. V  
Eurasian Economic Union 
(EAEU) – Viet Nam  05-Oct-16 Goods & Services  2017 GATT Art. XXIV & GATS Art. V  
Republic of Korea – Viet Nam  20-Dec-15 Goods & Services  2016 GATT Art. XXIV & GATS Art. V  
Chile – Viet Nam  01-Jan-14 Goods  2015 GATT Art. XXIV  
ASEAN - India 01-Jan-10 
01-Jul-15 Goods  
Services  2010 
2015 Enabling Clause  
GATS Art. V  
ASEAN - Republic of Korea  01-Jan-10 
14-Oct-10 Goods  
Services  2010 GATT Art. XXIV, Enabling 
Clause & GATS Art. V  
ASEAN - Australia - New 
Zealand  01-Jan-10 Goods & Services  2010 GATT Art. XXIV & GATS Art. V  
Japan – Viet Nam  01-Oct-09 Goods & Services  2009 GATT Art. XXIV & GATS Art. V  
ASEAN - Japan  01-Dec-08 Goods  2009 GATT Art. XXIV  
ASEAN - China  01-Jan-05 
01-Jul-07 Goods  
Services  2005 
2008 Enabling Clause  
GATS Art. V  
ASEAN Free Trade Area (AFTA)  01-Jan-93 Goods  1992 Enabling Clause  
Global System of Trade 
Preferences among Developing 
Countries (GSTP)  19-Apr-89 Goods  1989 Enabling Clause  
ASEAN – Japan  01-Aug-20 Services  Not notified  
ASEAN Framework Agreement 
on Services (AFAS)  12-Aug-98 Services  Not notified  
a  Dates of entry into force for the EU or Viet Nam .  
b  Reference to Kosovo in this table shall be understood to be in the context of the United Nations 
Security Council resolution 1244 (1999).  
Source:  WTO Secretariat. Further information on these Agreements and on specific dates of entry into 
force/provisional applications may be found in the WTO Database on RTAs: http://rtais.wto.org .  
5.8  Government procurement  
5.34.  Chapter 9 contains rules on Government Procurement and covers goods, services or any 
combination thereof, as specified in Annexes 9 -A (for the E U) and 9 -B (for Viet Nam). The Chapter 
largely replicates the text of the WTO Government Procurement Agreement (GPA)  to which the EU 
is party while Viet Nam is an observer . 
5.35.  Annexes 9 -A and 9 -B to the Agreement contain the Parties' market access schedules w ith 
respect to Government procurement. Sections A to H of the Annexes list the central and subcentral 
Government entities, other covered entities, goods and services coverage, construction services, 
general notes and publication of procurement information.  Section I of Annex 9 -B includes and 
transitional measures for Viet Nam. Disciplines concerning modifications and rectifications of the 
market access schedules are contained in Article 9.20.  
5.36.  Table 5.2 shows the thresholds for procurement for central and sub -central Government 
entities and other covered entities included in Annex es 9-A and 9 -B of the Agreement. For the EU, 
the thresholds are  the same as its commitments under the GPA. Viet Nam commits to lower the 
thresholds in steps over a period of 16 years from the entry into force as indicated in the Table.  
Table 5.2 Thresholds for procurement  
Entities  Procurement  Thresholds  (SDR) 
EU Viet Nam  
2020 -2025  2026 -2030  2031 -2035  After 2035  
Central Government 
entities  Goods and 
services  130,000  1,500,000  1,000,000  500,000  130,000  WT/REG406/1  
 
- 43 - 
 
  Entities  Procurement  Thresholds  (SDR) 
EU Viet Nam  
2020 -2025  2026 -2030  2031 -2035  After 2035  
Construction 
services  5,000,000  40,000,000  20,000,000  10,000,000  5,000,000  
Sub-central 
Government entities  Goods and 
services  200,000  3,000,000  2,000,000  1,500,000  1,000,000  
Construction 
services  5,000,000  40,000,000  25,000,000  20,000,000  15,000,000  
Other covered 
entities  Goods and 
services  400,000  3,000,000  2,000,000  1,500,000  1,000,000  
Construction 
services  5,000,000  40,000,000  25,000,000  20,000,000  15,000,000  
Source:  Annex 9 -A of the Agreement . 
 
5.37.  Before procurement, procuring entities may conduct market consultations with a view to 
preparing the procurement and may seek or accept advice from independent experts or authorities 
or from market participants (Article 9.10). A procuring entity shall publ ish a notice in the appropriate 
paper or electronic medium not later than 30 days after the award of each contract covered by the 
Chapter  (Article 9.17) .  
5.38.  The Parties shall endeavour  to cooperate in matters such as exchanging experiences and 
information, i ncluding regulatory frameworks and best practices, developing and expanding the use 
of electronic means in Government procurement systems, building capability of Government officials 
and institutional strengthening (Article 9.21).  
5.39.  Once Viet Nam's electroni c procurement system has been fully developed, t he Parties shall 
review the provisions of Article 9.15 (electronic auctions) to take into account possible technological 
changes (Article 9.22)  and they shall conduct further negotiations on the duration of t he period for 
the storage of data relating to procurement by electronic means. Negotiations on the coverage of 
additional sub -central government entities shall also be conducted no later than 15 years after the 
date of the entry into force of the Agreement . 
5.40.  The functions related to Government procurement of the Committee on Investment, Services, 
Electronic Commerce and Government Procurement established by Article 17.2 are outlined in article 
9.23 and include the review of modifications to the coverage and the lists of procuring entities, the 
approval of compensatory adjustments and the discussion of any other matters related to Chapter  9.  
5.9  Intellectual property rights  
5.41.  Chapter 12 covers intellectual property rights  (IPRs) . It complements the rights and 
obligations between the Parties under the WTO TRIPS Agreement. Section A contains general 
provisions on IPRs. Section B contains the standards concerning IPRs and, sub -sections 1 through 
7, on copyright and related rights, trademarks, geographical indications ( GIs), industrial designs, 
patents, protection of undisclosed information and plant varieties.  
5.42.  The Parties affirm their rights and obligations under the international treaties dealing with 
intellectual property to which they are party, including the TRIPS Agreement (Article 12.2).  
5.43.  With regard to the protection of intellectual property, any advantage, favour, privilege or 
immunity granted by a Party to the nationals of any third country shall be accorded immediately and 
unconditionally to the nationals of th e other Party, subject to the exceptions provided for in Articles 
4 and 5 of the TRIPS Agreement (Article 12.3).  
5.44.  Each Party shall be free to establish its own regime for the exhaustion of IPRs subject to the 
relevant provisions of the TRIPS Agreement (Art icle 12.4).  
5.45.  With respect to copyright and related rights, the Parties shall comply with the rights and 
obligations set out in the TRIPS Agreement (Article 12.5). The Article also refers to other WT/REG406/1  
 
- 44 - 
 
  international agreements the Parties shall comply with47 or accede to48 within three years from the 
date of entry int o force of the Agreement. The terms of protection are the same as in the TRIPS 
Agreement  (Article 12.11) . The Agreement includes other specific disciplines applicable to authors 
(Article 12.6), performers (Article 12.7), producers of phonograms (Article 1 2.8), broadcasting 
organizations (Article 12.9), broadcasting and communication to the public (Article 12 .10), 
protection of technological measures  (Articles 12.12)  and of rights management information 
(Article  12.13), exceptions and limitations (Article 1 2.14), artists' resale right in works of art 
(Article  12.15) and cooperation on collective management of rights (Article 12.16) . 
5.46.  With respect to trademarks  the Parties affirm their rights and obligations under the Protocol 
Relating to the Madrid Agreement Concerning the International Registration of Marks, they shall use 
the classification provided for in the  Nice Agreement Concerning C lassification of Goods and Services 
for the Purposes of the Registration of Marks and they shall simplify and develop their trademark 
registration procedures using, inter alia , the Trademark Law Treaty, and the Singapore Treaty on 
the Law of Trademarks (Article 12.17). A registered trademark shall confer on the proprietor 
exclusive rights therein (Article 12.18). Sub-Section 2 contains specific disciplines applicable to 
registration procedures (Article 12.19), well -known trademar ks (Article 12.20), exceptions to the 
rights conferred by a trademark (Article  12.21) and revocation of a registered trademark 
(Article  12.22).  
5.47.  With respect to geographical indications (GIs), the Agreement contains specific disciplines 
applicable to the re cognition and protection GIs for wines, spirits, agricultural products and foodstuffs 
(Article 12.23). Protection in the importing Party is subject to the recognition and protection of GIs 
in the country of origin. Each Party shall maintain a system for th e registration and protection of GIs 
(Article 1 2.24). Annex 12 -A lists the recognized GIs that each Party shall protect according to the 
level of protection provided for in the Agreement (Article 12.25). The lists may be amended by the 
Parties in accordance with the procedure set out in subparagraph 3(a) of Article 12.63 and par agraph 
1 of Article 17.5 (Article 12.26). Sub-Section 3 includes provisions on the scope of protection 
(Article  12.27), exceptions (Article 12.28), right of use (Article 12.29) , relationship to trademarks 
(Article 12.30), enforcement (Article 12.31),  and g eneral rules (Article 12.32) and cooperation and 
transparency (Article 12.33) . 
5.48.  With respect to industrial designs, the Parties shall accede to the Geneva Act (1999) of the 
Hague Agreement Concerning the International Registration of Industrial Designs with in two years 
from the date of entry into force of the Agreement (Article 12.34). They shall provide for the 
protection of independently created industrial designs that are new or original for at least 15 years 
(Article 12.35).49 The owner of a protected de sign shall have the right to prevent third parties from 
making, offering for sale, selling, importing or stocking for sale products that bear or embody the 
protected design. Exceptions and relationship to copyright are regulated under Articles 12.36 and 
12.37. 
5.49.  With respect to patents, the Parties affirm their rights and obligations under the Patent 
Cooperation Treaty and commit to simplify and develop their patent registration procedures using, 
inter alia , the Patent Law Treaty as a reference point (Article  12.38). Sub -Section 5 contains specific 
disciplines applicable to patents and public health (Article 1 2.39) and administrative authorization 
(Article 12.40) . 
5.50.  With respect to the protection of undisclosed information, each Party shall protect confidential 
information and data submitted to the Government or Governmental agencies for the approval of 
the marketing of pharmaceutical or agrochemical products in accordance with Article 12.41.  
 
47 The Berne Convention for the Protection of Literary and Artistic Works and t he International 
Convention for the Protection of Performers, Producers of Phonograms and Broadcasting Organisations.  
48 The WIPO Copyright Treaty and the WIPO Performances and Phonograms Treaty.  
49 The EU clarified that , since Art icle 12.34 refers to the Ge neva Act (1999) of the Hague Agreement 
Concerning the International Registration of Industrial Designs, the duration of protection available shall 
amount to at least 15 years from the date of the international registration (Art. 17(3) of the Geneva Act).  
According to Viet Nam, the 15 year period of protection starts from the filing date of the industrial design 
application ( the protection is for five years after the filing date and it may be renewed for two consecutive 
terms, each of 5 years).  WT/REG406/1  
 
- 45 - 
 
  5.51.  The Parties shall protect plant varieties rights in accordance with the International Convention 
for the Protection of New Varieties of Plants including the exception s to the breeder's right 
(Article  12.42 ).  
5.52.  Section C covers enforcement of IPRs and, beyond general enforcement obligations (Sub -
Section 1), contains specific di sciplines with respect to civil enforcement (Sub -Section 2), 
intermediary service providers (Sub -Section 3), border enforcement (Sub -Section 4) and other 
provisions relating to enforcement (Sub -Section 5).  
5.53.  Section D contains the Parties' agreement to coope rate with a view to supporting the 
implementation of Chapter 12 (Article 12.62) and the functions of the Working Group on Intellectual 
Property Rights, including Geographical Indications (Article 12.63).  
5.10  Competition  
5.54.  Chapter 10 covers competition policy. Mo re specifically, Section A sets out rules on anti -
competitive conduct, Section B regulates subsidies  and Section C provides definitions and common 
principles .50  
5.55.  The Parties recognise the importance of free and undistorted competition in their trade 
relations and acknowledge that anti -competitive conduct and transactions have the potential to 
distort the proper functioning of markets and undermine the benefits of trade liberalization (Article 
10.1).  
5.56.  To promote economic efficiency and consumer welfare , each Party shall adopt or maintain  
comprehensive legislation on competition that proscribes anti -competitive conduct (Article 10.2).  
The competition law of the Parties shall effectively address agreements between enterprises, 
decisions by associations of  enterprises and concerted practices which have as their object or effect 
the prevention, restriction or distortion of competition, abuse by one or more enterprises of a 
dominant position, and concentration between enterprises which would significantly imp ede effective 
competition.   
5.57.  Each Party maintains its autonomy in developing and enforcing its law and shall apply 
competition law  in a transparent and non -discriminatory manner (Article 10.3).  
5.58.  Section C contains definitions and common principles including confidentiality (Article 1 0.12) 
and cooperation  (Article 1 0.14). Neither Party may have recourse to the Dispute Settlement and 
mechanism of the Agreement for any matter arising under Section A on anti -competitive conduct 
(Article 1 0.13). 
5.11  State -owned enterp rises and designated monopolies  
5.59.  Chapter 11 disciplines State -owned enterprises  (SOEs) , enterprises granted special rights or 
privileges, and designated monopolies (Article 11.1).51 
5.60.  Paragraphs 1 to 3 of Article XVII of GATT 1994, the Understanding on the Interpretation of 
Article XVII of the GATT and paragraphs 1, 2 and 5 of Article VIII of GATS are incorporated into the 
Agreement, mutatis mutandis  (Article 11.2).  
5.61.  The laws and regulat ions of the Parties govern ing their systems of state ownership  shall not 
be affected by Chapter 11 which does not prevent the Parties from establish ing or maintain ing SOEs, 
 
50 Section B o f Chapter 10 is described in other relevant sections of this FP.  
51 SOEs are defined as any enterprise, including any subsidiary, in which a Party, directly or indirectly, i) 
owns more than 50% of the enterprise's subscribed capital or controls more than 50 % of the votes attached to 
the shares issued by the enterprise, ii) can appoint more than half of the members of the enterprise's board of 
directors or an equivalent body, or iii) can exercise control over the strategic decisions of the enterprise .  
Design ated monopolies are entities, including a group of entities or a government agency, that in a relevant 
market in the territory of a Party is designated as the sole supplier or purchaser of a good or service.  
Designated monopolies do not include entit ies that have been granted an exclusive intellectual property right 
solely by reason of such grant . WT/REG406/1  
 
- 46 - 
 
  granting enterprises special rights or privileges, or designat ing or maintaining monopolies  
(Article  11.3) .  
5.62.  Each Party shall ensure that in their commercial activities SOEs, enterprises granted special 
rights or privileges, and designated monopolies , in their purchases or sales of goods or services,  act 
in accordance with commercial considerations, except to fulfil their public mandate , and that they 
do not discriminate the enterprises of the other Party supplying or purchasing goods or services 
(Article 11.4).  
5.63.  The Parties shall endeavour to ensure that SOEs, enterprises g ranted special rights or 
privileges, and designated monopolies observe internationally recognised standards of corporate 
governance (Article 11.5). They shall also ensure that their regulatory bodies or functions are not 
accountable to any enterprises or e ntities that they regulate.  
5.64.  A Party reasonably believ ing that its interests are adversely affected by the commercial 
activities of a SOE, an enterprise granted special rights or privileges, or a designated monopoly, may 
request the other Party to provide information about the operations of that enterprise or monopoly 
including, inter alia , the ownership and voting structure, annual revenue s and total assets 
(Article  11.6).  
5.65.  Article 11.7 provides for technical cooperation  between the Parties . 
5.12  Environment  
5.66.  The Parties recognise that economic and social development and environmental protection 
are interdependent and mutually reinforcing components of sustainable development and they 
underline the benefit of cooperation on trade -related environmental issues as part of a global 
approach to trade and  sustainable development (Article 1 3.1).  
5.67.  The right of each Party to establish its own levels of environmental protection, and to adopt 
or modify its relevant laws and policies is recognized in Article 1 3.2. A Party shall not waive or 
derogate from its env ironmental laws in a manner affecting trade and investment between the 
Parties (Article 1 3.3). 
5.68.  Article 13.5 recognizes the value of international environmental governance and agreements 
and reaffirms the Parties' commitments to effectively implement in the ir domestic law and practice 
the multilateral environmental agreements to which they are parties. The Parties shall exchange in 
the Committee on Trade and Sustainable Development information and experiences on their 
respective situation and progress with r egard to the ratification of multilateral environmental 
agreements or their amendments.  
5.69.  The Parties reaffirm their commitments to reaching the ultimate objective of the UN 
Framework Convention on Climate Change (UNFCCC), and to effectively implementing the  UNFCCC, 
its Kyoto Protocol and the Paris Agreement (Article 13.6). They shall cooperate to enhance their 
capacities in the transition to low greenhouse gas emissions and climate -resilient economies and 
they shall consult and share information and experien ces on issues such as mechanisms for pricing 
carbon, the promotion of carbon markets and energy efficiency, low -emission technology and 
renewable energy.  
5.70.  The Parties commit to enhance the contribution of trade and investment to the goal of 
sustainable dev elopment in its economic, social and environmental dimensions (Article 13.10). To 
that end, they endeavour  to facilitate and promote trade and investment in environmental goods 
and services and in goods and services of relevance for climate change mitigati on, they encourage 
the development of and participation in voluntary initiatives that contribute to the achievement and 
maintenance of high levels of environmental protection such as eco -labels.   
5.71.  When preparing and implementing measures aimed at environmen tal protection that may 
affect trade or investment between the Parties, each Party shall consider  relevant scientific evidence 
and related international standards, guidelines or recommendations (Article 13.11). The Parties also 
recogni ze the importance of working together on trade -related aspects of sustainable development 
(Article 13.14).  WT/REG406/1  
 
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  5.72.  Article 13.16 excludes trade and environment issues from the application of the Agreement's 
dispute settlement mechanism, and it provides for Government consultations as a way to deal with 
matters arising under Chapter 13. Article 13.17 regulates the establishment of a panel of experts 
for any matter that has not been satisfactorily addressed via Government consultations.  
5.73.  Transparency, the review of sustainability impact a nd institutional provisions are provided for 
in Articles 13.12, 13.13 and 13.15.  
5.74.  Chapter 13 also includes provisions on biological diversity (Article 13.7), sustainable forest 
management and trade in forest products (Article 13.8) and trade and sustainable  management of 
living marine resources and aquaculture products (Article 13.9).  
5.75.  Chapter 7 of the Agreement covers non -tariff barriers to trade and investment and 
cooperation in renewable energy generation.  
5.13  Labour  
5.76.  The Parties recognise that economic development, social development and environmental 
protection are interdependent and mutually reinforcing components of sustainable development and 
they underline the benefit of cooperation on trade -related labour issues as part of a global approac h 
to trade and sustainable development (Article 13.1).52  
5.77.  The right of each Party to establish its own levels of protection in social areas, and to adopt 
or modify its relevant laws and policies is recognized in Article 13.2. A Party shall not waive or 
derogate from its labour laws in a manner affecting trade and investment between the Parties 
(Article  13.3).  
5.78.  Article 13.4 recognizes the value of international cooperation and agreements on employment 
and trade-related labour issues and reaffirms the Parties'  commitments, under the ILO and the ILO 
Declaration on Fundamental Principles and Rights at Work and its Follow -up, to respect, promote 
and effectively implement the principles concerning the fundamental rights at work.  
5.79.  The Parties commit to enhance the c ontribution of trade and investment to the goal of 
sustainable development in its economic, social and environmental dimensions (Article 13.10). To 
that end, they encourage greater policy coherence between trade and labour policies, and the 
development of and participation in voluntary initiatives that contribute to the achievement and 
maintenance of high levels of labour protection such as fair and ethical trade schemes and agree to , 
in accordance with their domestic laws and policies,  promote corporate so cial responsibility including 
education and training activities and technical advice.   
5.80.  When preparing and implementing measures aimed at labour protection that may affect trade 
or investment between the Parties, each Party shall consider  relevant scientifi c evidence and related 
international standards, guidelines or recommendations (Article 13.11). The Parties also recognise 
the importance of working together on trade -related aspects of sustainable development 
(Article  13.14).  
5.81.  Article 13.16 excludes trade a nd labour issues from the application of the Agreement's dispute 
settlement mechanism, and it provides for Government consultations as a way to deal with matters 
arising under Chapter 13. Article 13.17 regulates the establishment of a panel of experts for any 
matter that has not been satisfactorily addressed via Government consultations.  
5.82.  Transparency, the review of sustainability impact and institutional provisions are provided for 
in Articles 13.12, 13.13 and 13.15.  
 
52 For the purposes of Chapter 13, labour issues mean those under the Decent Work Agenda, as referred 
to in the ILO Declaration on Social Justice for a Fair Global ization, adopted by the International Labour 
Conference at its 97th Session, in Geneva on 10 June 2008.  WT/REG406/1  
 
- 48 - 
 
  5.14  Electronic commerce  
5.83.  Section F of Chapter 8 covers electronic commerce. The Parties agree to promote, through 
cooperation, the development of electronic commerce between them (Article 8.50) and they agree 
not to impose custom duties on electronic transmissions (Article 8.51). Regulatory cooperation on 
electronic commerce is provided for in Article 8. 52. 
5.15  Small and medium -sized enterprises  
5.84.  There are no specific provisions on small and medium -sized enterprises.  
 WT/REG406/1  
 
- 49 - 
 
  ANNEX 1  
1. A comparison between the scheduled elimination of tariffs applied to the Parties' mutual 
imports and the duty rates applied by them on MFN imports is shown in Table A1. 1 and Table A1. 2, 
by HS Chapters 1 -24 (agricultural products), 25 -97 (industrial products) and total products. Applied 
MFN duty rates in 2020 for both Parties and preferential duties under the EU's GSP scheme in 2020 
serve as a comparison.  
2. The EU's overall average applied MFN tariff rate in 2020 was 5% while the average applied 
tariff under  the GSP was 3.5% (Table A1. 1). The average MFN applied tariff on agricultural goods in 
HS Chapters 1 -24 was 10.3%  (8.5% under  the GSP) , compared to an averag e applied tariff of 3.7% 
(2.2% under  the GSP) on industrial goods. Duty -free tariff lines accounted for 26.6% of all tariff 
lines on an MFN basis and 30.5% under the GSP scheme . Upon entry into force of the Agreement, 
the share of duty -free tariff lines for imports of agricultural products from Viet Nam rose to 72%, 
while the share of duty -free tariff lines in industrial products reached 88.3%. The average 
preferential tariff fo r imports from Viet Nam fell to 1% overall and 2% and 0.6% for agricultural and 
industrial products, respectively. At the end of the transition period in 2027, Viet Nam's exporters 
will face zero duties on 98.9% of the EU's tariff lines (99.9% for industri al products and 96.1% for 
agricultural products).  
Table A1. 1 EU: Indicators of applied tariff rates and preferential rates for imports from 
Viet Nam  
Origin 
of 
goods  Year  ALL PRODUCTS  HS Chapters 1 -24 HS Chapters 25 -97 
Average 
applied tariff  Share 
of 
duty-
free 
tariff 
lines 
(%) Average 
applied tariff  
Share of 
duty-free 
tariff 
lines (%)  Average 
applied tariff  Share 
of 
duty-
free 
tariff 
lines 
(%) Overall 
(%) 
On 
dutiable 
(%) 
Overall 
(%) 
On 
dutiable 
(%) 
Overall  
(%) 
On 
dutiable 
(%) 
MFN 2020 5.0 7.1 26.6 10.3 13.0 15.0 3.7 5.3 30.8 
GSP 2020 3.5 6.8 30.5 8.5 9.3 4.0 2.2 5.3 40.0 
Viet Nam  2020 1.0 7.1 84.0 2.0 10.3 72.0 0.6 5.4 88.3 
 2021 0.8 6.2 84.0 1.7 8.8 72.0 0.6 4.8 88.3 
 2022 0.6 4.6 84.0 1.3 6.6 72.0 0.4 3.6 88.3 
 2023 0.4 5.2 90.3 0.8 6.6 79.1 0.2 4.3 94.3 
 2024 0.3 3.6 90.3 0.6 4.7 79.1 0.2 2.8 94.3 
 2025 0.1 4.2 94.5 0.3 5.9 86.0 0.1 3.0 97.5 
 2026 0.1 2.7 94.5 0.2 4.2 86.0 0.0 1.6 97.5 
 2027 0.0 13.0 98.9 0.1 14.4 96.1 0.0 8.7 99.9 
Note:  Tariff lines subject to in -quota rates are excluded from the computation; for the calculation of 
averages, specific rates are excluded, and the ad valorem  parts of alternate rates are included.  
 Based on the HS2017 nomenclature.  
Source:  WTO estimates based on the data provided by the authorities.  
 
3. Viet Nam's o verall average applied MFN tariff rate in 2020 was 10.7% ( Table A1. 2). The 
average applied tariff on agricultural goods in HS Chapters 1 -24 was 18.5%, compared to an average 
applied tariff of 9.1% on industrial goods. Duty -free tariff lines accounted for 31.1% of all tariff lines. 
Upon entry into force of the Agreement, the share of duty -free tariff lines in agricultural products 
rose from 11.4% to 17.8%, while the share of duty -free tariff lines in industrial products rose from 
35.1% to 55.3%.  The average appli ed tariff for imports from the EU fell to 7.8% overall, and 
respectively 15.4% and 6.2% for agricultural and industrial products.  At the end of the transition 
period in 2035, the EU's exporters will face zero duties on 98.8% of Viet Nam's tariff lines (98. 9% 
for industrial products and 98.4% for agricultural products).  WT/REG406/1  
 
- 50 - 
 
  Table A1. 2 Viet Nam: Indicators of applied tariff rates and preferential rates for imports 
from the EU 
Origin 
of 
goods  Year  ALL PRODUCTS  HS Chapters 1 -24 HS Chapte rs 25 -97 
Average 
applied tariff  Share 
of 
duty-
free 
tariff 
lines 
(%) Average 
applied tariff  Share 
of 
duty-
free 
tariff 
lines 
(%) Average 
applied tariff  Share  
of  
duty-
free 
tariff 
lines 
(%) Overall 
(%) 
On 
dutiable 
(%) 
Overall 
(%) 
On 
dutiable 
(%) 
Overall  
(%) 
On 
dutiable 
(%) 
MFN 2020 10.7 15.6 31.1 18.5 20.9 11.4 9.1 14.2 35.1 
EU28 2020 7.8 15.4 49.1 15.4 18.7 17.8 6.2 14.2 55.3 
 2021 6.5 12.8 49.1 12.9 15.7 17.8 5.2 11.7 55.3 
 2022 5.1 10.2 49.1 10.5 12.7 17.8 4.0 9.2 55.3 
 2023 3.8 9.4 59.3 8.0 13.6 41.3 2.9 8.0 62.9 
 2024 2.7 6.8 59.3 6.3 10.7 41.3 2.0 5.6 62.9 
 2025 1.7 8.9 79.7 4.5 11.9 61.9 1.2 7.4 83.3 
 2026 1.2 6.4 79.7 3.5 9.2 61.9 0.8 5.0 83.3 
 2027 0.8 10.4 91.8 2.5 14.7 83.1 0.4 7.7 93.6 
 2028 0.6 8.3 91.8 2.2 12.9 83.1 0.3 5.4 93.6 
 2029 0.5 6.5 92.2 1.9 12.0 84.3 0.2 3.1 93.8 
 2030 0.3 58.0 98.6 1.6 58.3 97.2 0.0 55.0 98.9 
 2031 0.3 56.4 98.6 1.6 56.6 97.2 0.0 55.0 98.9 
 2032 0.3 54.8 98.6 1.5 54.8 97.2 0.0 55.0 98.9 
 2033 0.3 53.1 98.6 1.5 53.0 97.2 0.0 55.0 98.9 
 2034 0.3 51.5 98.6 1.4 51.2 97.2 0.0 55.0 98.9 
 2035 0.3 79.8 98.8 1.4 83.7 98.4 0.0 55.0 98.9 
Note:  There are 87 tariff lines under HS Chapter 87 without duties (marked as CKD) which are excluded 
from the calculation of the tariff averages.  
 Tariff lines subject to in -quota rates are excluded from the computation   
 Based on the HS 2012 nomenclature.  
Source:  WTO estimates based on tariff data constructed by the WTO: MFN from WTO -IDB (transposed from 
HS 2017 to HS 2012) and preferent ial tariffs based on information provided by the authorities . 
4. Table A1. 3 shows the market access opportunities in the EU for Viet Nam 's top 25 exports, 
which in 201 7-2019 covered 87 HS lines and accounted for 46.1% of Viet Nam 's global exports. 
27 HS lines were already duty free on an MFN basis in the EU's market in 2020, 23 were liberalized 
in 2020 and 21 will be liberalized by 202 7. At the end of Implementation, 16 lines, all related to 
milled rice, will remain dutiable.  The average MFN duties on these products in 2020 was 175 euros 
per tonne.  
Table A1. 3 EU: Market access opportunities under the agreement for Viet Nam 's top 25 
exports to the world  
Viet Nam's top export products in  
2017 -2019  Access Conditions to EU28's import markets  
Average applied 
rate 
(%)  MFN 
(2020)  
Duty -free in  
Remain dutiable  
HS number and description of the 
product  
Share in global 
exports (%)  
MFN GSP Number  
of tariff 
lines  Duty -free 
Dutiable  
2020  
2023  
2025  
2027  
851712  Telephones for cellular 
networks "mobile telephones" 
or for other wireless networks  13.1 0.0  1       WT/REG406/1  
 
- 51 - 
 
  Viet Nam's top export products in  
2017 -2019  Access Conditions to EU28's import markets  
Average applied 
rate 
(%)  MFN 
(2020)  
Duty -free in  
Remain dutiable  
HS number and description of the 
product  
Share in global 
exports (%)  
MFN GSP Number  
of tariff 
lines  Duty -free 
Dutiable  
2020  
2023  
2025  
2027  
851770  Parts of telephone sets, 
telephones for cellular 
networks or for other wireless 
networks  7.1 0.0  1       
854231  Electronic integrated circuits 
as processors and controllers  3.3 0.0  3       
640411  Sports footwear  2.1 16.9 11.9  1 1     
640419  Footwear with outer soles of 
rubber or plastics and uppers 
of textile materials  1.4 16.9 11.9  2  2    
640399  Footwear with outer soles of 
rubber, plastics or 
composition leather, with 
uppers of leather  1.4 7.6 4.1  11    11  
080132  Fresh or dried cashew nuts, 
shelled  1.3 0.0  1       
851762  Machines for the reception, 
conversion and transmission 
or regeneration of voice, 
images or other data  1.3 0.0  1       
847130  Data-processing machines  1.2 0.0  1       
090111  Coffee  1.1 0.0  1       
854140  Photosensitive semiconductor 
devices  1.1 0.0  2       
854430  Ignition wiring sets and other 
wiring sets for vehicles, 
aircraft or ships  1.1 3.7 0.0  1 1     
901380  Liquid crystal devices  1.0 1.6 - 2 1 1     
270900  Petroleum oils and oils 
obtained from bituminous 
minerals, crude  1.0 0.0  2       
100630  Semi-milled or wholly milled 
rice, whether or not polished 
or glazed  1.0 175 
EUR/ 
1000 kg    16     16 
900691  Parts and accessories for 
photographic cameras, n.e.s.  0.9 3.7 0.0  1 1     
030617  Frozen shrimps and prawns, 
even smoked  0.8 13.2 5.1  5 4  1   
852990  Parts suitable for use solely or 
principally with transmission 
and reception apparatus for 
radio-broadcasting or 
television  0.8 1.1 - 4 4 4     
640299  Footwear with outer soles and 
uppers of rubber or plastics  0.8 16.8 11.9  9 9     
852580  Television cameras, digital 
cameras and video camera 
recorders  0.8 0.6 - 3 2 2     
851830  Headphones and earphones,  0.7 0.0  1       
030462  Frozen fillets of catfish 
"pangasius spp., silurus spp., 
clarias spp., ictalurus spp."  0.7 5.5 5.5  1  1    
940360  Wooden furniture  0.7 0.0  3       WT/REG406/1  
 
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  Viet Nam's top export products in  
2017 -2019  Access Conditions to EU28's import markets  
Average applied 
rate 
(%)  MFN 
(2020)  
Duty -free in  
Remain dutiable  
HS number and description of the 
product  
Share in global 
exports (%)  
MFN GSP Number  
of tariff 
lines  Duty -free 
Dutiable  
2020  
2023  
2025  
2027  
844331  Machines which perform two 
or more of the functions of 
printing, copying or facsimile 
transmission, capable of 
connecting to an automatic 
data-processing machine or to 
a network  0.7 0.0  1       
852872  Reception apparatus for 
television, colour, whether or 
not incorporating radio -
broadcast receivers or sound 
or video recording or 
reproducing apparatus, 
designed to incorporate a 
video display or screen  0.7 14.0 9.8  6   6   
 46.1   27 60 23 3 7 11 16 
Note:  Null under the average GSP column means GSP does not apply.  
 - GSP rates do not cover the entire HS Subheading.  
 Tariff lines subject to in -quota rates are excluded from the computation; for the calculation of 
averages, specific rates are excluded, and the ad valorem  parts of alternate rates are included.  
 Based on the HS2017 nomenclature.  
Source:  WTO estimates based on tariff data provided by the authorities and UNSD, Comtrade database.  
 
5. Table A1. 4 shows the market access opportunities in Viet Nam fo r the EU's top 25 exports, 
which in 2017 -2019 covered 253 HS lines and accounted for 28.6% of the EU's global exports. 
72 lines were already duty free on an MFN basis in Viet Nam's market in 2020, 4 were liberalized in 
2020 and 148 will be liberalized by 2 035. At the end of Implementation, 29 lines, all related to motor 
cars and other motor vehicles, will remain dutiable.  In 2020 average applied MFN rates for these 
products ranged from 43.8% to 57.5%.  
Table A1. 4 Viet Nam: Market access opportunities under the agreement for EU28's top 
25 exports to the world  
EU28's top export products in  
2017 -2019  Access Conditions to Viet Nam's import markets  
MFN (2020)  
Duty -free in  
Remain dutiablea HS number and description of the 
product  
Share in global 
exports (%)  
Average MFN 
applied rate  
(%) Number  
of tariff 
lines  Duty -free 
Dutiable  
2020  
2023  
2025  
2027  
2029  
2030  
300490  Medicaments consisting of mixed 
or unmixed products for 
therapeutic or prophylactic 
purposes  4.0 2.6 13 16 1   15    
870323  Motor cars and other motor 
vehicles principally designed for 
the transport of persons  3.8 53.7  22      12 10 WT/REG406/1  
 
- 53 - 
 
  EU28's top export products in  
2017 -2019  Access Conditions to Viet Nam's import markets  
MFN (2020)  
Duty -free in  
Remain dutiablea HS number and description of the 
product  
Share in global 
exports (%)  
Average MFN 
applied rate  
(%) Number  
of tariff 
lines  Duty -free 
Dutiable  
2020  
2023  
2025  
2027  
2029  
2030  
880240  Aeroplanes and other powered 
aircraft of an of an unladen weight 
> 15.000 kg  2.6 0.0 2         
271019  Medium oils and preparations, of 
petroleum or bituminous 
minerals, not containing biodiesel, 
n.e.s.  2.1 5.6  16      16  
300210  Antisera and other blood fractions 
and immunological products, 
whether or not modified or 
obtained by means of 
biotechnological processes  1.9 0.0 4         
271012  Light oils and preparations  1.9 20.0  14      14  
710813  Gold, incl. gold plated with 
platinum  1.1 0.0 1         
841191  Parts of turbojets or 
turbopropellers, n.e.s.  1.0 0.0 1         
870324  Motor cars and other motor 
vehicles principally designed for 
the transport of persons  0.9 43.8  14     8  6 
841112  Turbojets of a thrust > 25 kn  0.9 0.0 1         
870332  Motor cars and other motor 
vehicles principally designed for 
the transport of persons  0.8 48.3  22      12 10 
880330  Parts of aeroplanes or helicopters, 
n.e.s.  0.7 0.0 1         
711319  Articles of jewellery and parts 
thereof  0.6 25.0  2    2    
300220  Vaccines for human medicine  0.6 0.0 3         
851762  Machines for the reception, 
conversion and transmission or 
regeneration of voice, images or 
other data, incl. switching and 
routing apparatus  0.6 0.6 15 1  1      
853710  Boards, cabinets and similar 
combinations of apparatus for 
electric control or the distribution 
of electricity, for a voltage <= 
1.000 v  0.6 7.8 3 6 1  5     
870322  Motor cars and other motor 
vehicles principally designed for 
the transport of persons  0.6 57.5  7      4 3 
870840  Gear boxes and parts thereof  0.5 13.5  11    11    
870899  Parts and accessories, for 
tractors, motor vehicles  0.5 15.0  11    11    
848180  Appliances for pipes, boiler shells, 
tanks, vats or the like  0.5 8.7  34 2  30 2    
901890  Instruments and appliances used 
in medical, surgical or veterinary 
sciences, n.e.s.  0.5 0.0 3         
848620  Machines and apparatus for the 
manufacture of semiconductor 
devices or of electronic integrated 
circuits  0.5 0.0 21         
847989  Machines and mechanical 
appliances, n.e.s.  0.5 0.0 3         WT/REG406/1  
 
- 54 - 
 
  EU28's top export products in  
2017 -2019  Access Conditions to Viet Nam's import markets  
MFN (2020)  
Duty -free in  
Remain dutiablea HS number and description of the 
product  
Share in global 
exports (%)  
Average MFN 
applied rate  
(%) Number  
of tariff 
lines  Duty -free 
Dutiable  
2020  
2023  
2025  
2027  
2029  
2030  
710231  Non-industrial diamonds 
unworked or simply sawn, cleaved 
or bruted  0.5 0.0 1         
220421  Wine of fresh grapes, incl. 
fortified wines, and grape must  0.4 50.0  5    5    
 28.6  72 181 4 1 35 46 8 58 29 
a Belonged to the tariff lines under HS Chapter 87 without duties (marked as CKD) and these are 
excluded from the reduction commitment.  
Note:  Based on the HS 2012 nomenclature.  
Source : WTO estimates based on tariff data constructed by the WTO: MFN from WTO -IDB (transposed from 
HS 2017 to HS 2012 ) preferential tariffs based on information provided by the authorities and 
Eurostat .  WT/REG406/1  
 
- 55 - 
 
  ANNEX 2  
Table A2. 1 EU: Tariff rate quotas  
Description  Tariff line  Quantitya 
(tonnes/year)  In-quota 
rate (%)  Out-quota 
preferential 
tariff (GSP)  Out-quota MFN  
Birds' egg and egg yolks  0408 11 80  500 0   142.3 EUR/100 
kg/net  
0408 19 81  62 EUR/100 
kg/net  
0408 19 89  66.3 EUR/100 
kg/net  
0408 91 80  137.4 EUR/100 
kg/net  
0408 99 80  35.3 EUR/100 
kg/net  
Garlic  0703 20 00  400 0   9.6 % + 120 
EUR/100 kg/net  
Sweet corn  ex 0710 40 00  5 0   5.1 % + 9,4 
EUR/100 kg/net 
eda  
ex 2001 90 30  5.1 % + 9,4 
EUR/100 kg/net 
eda  
ex 2005 80 00  5.1 % + 9,4 
EUR/100 kg/net 
eda  
Rice TRQ1, see Section B 
Subsection I paragraph 5 
to the Agreement  1006 10 30  20,000 (tons of 
husked rice 
equivalent)  0   211 EUR/1000 kg  
1006 10 50  211 EUR/1000 kg  
1006 10 71  211 EUR/1000 kg  
1006 10 79  211 EUR/1000 kg  
1006 20 11  65 EUR/1000 kg  
1006 20 13  65 EUR/1000 kg  
1006 20 15  65 EUR/1000 kg  
1006 20 17  65 EUR/1000 kg  
1006 20 92  65 EUR/1000 kg  
1006 20 94  65 EUR/1000 kg  
1006 20 96  65 EUR/1000 kg  
1006 20 98  65 EUR/1000 kg  
Rice TRQ2, see Section B 
Subsection I paragraph 6 
to the Agreement  1006 30 21  30,000 (tons of 
milled rice 
equivalent)  0   175 EUR/1000 kg  
1006 30 23  175 EUR/1000 kg  
1006 30 25  175 EUR/1000 kg  
1006 30 27  175 EUR/1000 kg  
1006 30 42  175 EUR/1000 kg  
1006 30 44  175 EUR/1000 kg  
1006 30 46  175 EUR/1000 kg  
1006 30 48  175 EUR/1000 kg  
1006 30 61  175 EUR/1000 kg  
1006 30 63  175 EUR/1000 kg  
1006 30 65  175 EUR/1000 kg  
1006 30 67  175 EUR/1000 kg  
1006 30 92  175 EUR/1000 kg  
1006 30 94  175 EUR/1000 kg  
1006 30 96  175 EUR/1000 kg  
1006 30 98  175 EUR/1000 kg  
Rice TRQ3,  see Section B 
Subsection I paragraphs 
7 and 8 to the 
Agreement;  only the 
following varieties of 
fragrant rice are eligible 
for duty -free import 
under this quota: 
Jasmine 85, ST 5, ST 20, 
Nang Hoa 9 (NàngHoa 
9), VD 20, RVT, OM 
4900, OM 5451 and Tai 1006 10 30  30,000 (tons of 
milled rice 
equivalent)  0   211 EUR/1000 kg  
1006 10 50  211 EUR/1000 kg  
1006 10 71  211 EUR/1000 kg  
1006 10 79  211 EUR/1000 kg  
1006 20 11  65 EUR/1000 kg  
1006 20 13  65 EUR/1000 kg  
1006 20 15  65 EUR/1000 kg  
1006 20 17  65 EUR/1000 kg  
1006 20 92  65 EUR/1000 kg  
1006 20 94  65 EUR/1000 kg  
1006 20 96  65 EUR/1000 kg  
1006 20 98  65 EUR/1000 kg  
1006 30 21  175 EUR/1000 kg  WT/REG406/1  
 
- 56 - 
 
  Description  Tariff line  Quantitya 
(tonnes/year)  In-quota 
rate (%)  Out-quota 
preferential 
tariff (GSP)  Out-quota MFN  
nguyen Cho Dao 
(Tàinguyên Chợ Đào).  1006 30 23  175 EUR/1000 kg  
1006 30 25  175 EUR/1000 kg  
1006 30 27  175 EUR/1000 kg  
1006 30 42  175 EUR/1000 kg  
1006 30 44  175 EUR/1000 kg  
1006 30 46  175 EUR/1000 kg  
1006 30 48  175 EUR/1000 kg  
1006 30 61  175 EUR/1000 kg  
1006 30 63  175 EUR/1000 kg  
1006 30 65  175 EUR/1000 kg  
1006 30 67  175 EUR/1000 kg  
1006 30 92  175 EUR/1000 kg  
1006 30 94  175 EUR/1000 kg  
1006 30 96  175 EUR/1000 kg  
1006 30 98  175 EUR/1000 kg  
Manioc (cassava) starch  1108 14 00  30 0   166 EUR/1000 kg  
Tuna 1604 14 21  11.5 0 20.5% for all 
lines except 
1604 14 90 
for which 
21.5%  24% 
1604 14 28   
24% 
1604 14 31   
24% 
1604 14 38   
24% 
1604 14 41   
24% 
1604 14 48   
24% 
1604 14 90   
25% 
1604 19 39   
24% 
1604 20 70   
24% 
Surimi  1604 20 05  500 0 14% 20% 
Sugar and other 
products containing high 
levels of sugar  1701 13 10  20,000 (tons of 
raw sugar 
equivalent)  0   33.9 EUR/100 
kg/net std qual  
1701 13 90    41.9 EUR/100 
kg/net  
1701 14 10    33.9 EUR/100 
kg/net std qual  
1701 91 00    41.9 EUR/100 
kg/net  
1701 99 10    41.9 EUR/100 
kg/net  
1701 99 90    41.9 EUR/100 
kg/net  
1702 30 50    26.8 EUR/100 
kg/net  
1702 90 50    20 EUR/100 
kg/net  
1702 90 71    0.4 EUR/100 
kg/net/%sacchar  
1702 90 75    27.7 EUR/100 
kg/net  
1702 90 79    19.2 EUR/100 
kg/net  
1702 90 95    0.4 EUR/100 
kg/net/%sacchar  
1806 10 30    8% + 314 
EUR/100 kg/net  
1806 10 90    8% + 41.9 
EUR/100 kg/net  
Specialty  sugar  1701 14 90  400 0   41.9 EUR/100 
kg/net  
Mushrooms  0711 51 00  350 0 6.1% + 191 
EUR/100 
kg/net eda  9.6% + 191 
EUR/100 kg/net 
eda 
2001 90 50  12.5%  16% 
2003 10 20  18.4% + 
191 
EUR/100 
kg/net eda 18.4% + 191 
EUR/100 kg/net 
eda WT/REG406/1  
 
- 57 - 
 
  Description  Tariff line  Quantitya 
(tonnes/year)  In-quota 
rate (%)  Out-quota 
preferential 
tariff (GSP)  Out-quota MFN  
2003 10 30  18.4% + 
222 
EUR/100 
kg/net eda  18.4% + 222 
EUR/100 kg/net 
eda 
Ethanol  2207 10 00  1 0   19.2 EUR/hl  
2207 20 00  10.2 EUR/hl  
Mannitol, Sorbitol, 
Dextrins and other 
modified starches  2905 43 00  2 0   9.6% + 125,8 
EUR/100 kg/net  
2905 44 11  7.7% + 16.1 
EUR/100 kg/net  
2905 44 19  9.6% + 37.8 
EUR/100 kg/net  
2905 44 91  7.7% + 23 
EUR/100 kg/net  
3505 10 10  9% + 17.7 
EUR/100 kg/net  
3505 10 90  9% + 17.7 
EUR/100 kg/net  
3824 60 19  9% + 37.8 
EUR/100 kg/net  
a For 2020 , TRQ amount s are reduced proportionally to the period 1 August to 31 December 2020.  
Note:  "kg/net eda" means kg drained net weight.  
 "kg std qua" means standard quality which depends on two conditions: i) the relief fr om or reduction 
of customs duties shall be subject to the conditions laid down in the relevant provisions of the EU 
with a view to customs control of the use of such goods (see Article 254 of Regulation No. 952/2013 
of the European Parliament and of the Co uncil, and ii) the rate applies to raw sugar with a yield of 
92 %.  
 "kg/net/%sacchar" means per 1% of sucrose by weight, including other sugars expressed as sucrose 
(a further explanatory note may be found in additional note 4 to chapter 17 of the Combined  
Nomenclature).  
Source:  Data provided by the EU authorities.  
Table A2. 2 Viet Nam: Tariff rate quotas  
Description  TL In-quotaa (%) Out-quota MFN (%)  
Birds' eggs  04072100  B10 80 
04072910  B10 80 
04072990  B10 80 
04079010  B10 80 
04079020  B10 80 
04079090  B10 80 
Sugar  17011200  B10 80 
17011300  B10 80 
17011400  B10 80 
17019100  B10 100 
17019911  B10 85 
17019919  B10 85 
17019990  B10 85 
Tobacco  24011010  B10 80 
24011020  B10 90 
24011040  B10 80 
24011050  B10 80 
24011090  B10 90 
24012010  B10 80 
24012020  B10 90 
24012030  B10 90 WT/REG406/1  
 
- 58 - 
 
  Description  TL In-quotaa (%) Out-quota MFN (%)  
24012040  B10 80 
24012050  B10 80 
24012090  B10 90 
24013010  B10 80 
24013090  B10 90 
Salt 25010010  B10 60 
25010020  B10 60 
25010050  B10 50 
25010090  B10 50 
a The in -quota customs duties shall be removed in 11 equal annual stages beginning on the date of 
entry into force of the Agreement . 
Note:  As for Viet Nam 's commitments under the WTO, the annual quota quantities are not fixed and 
subject to an increase of  5% per year.  
Source:  Viet Nam's schedules . 
__________