AGREEMENT
between the European Community and the Government of the Socialist Republic of Vietnam on
market access
THE EUROPEAN COMMUNITY
and
THE GOVERNMENT OF THE SOCIALIST REPUBLIC OF VIETNAMhereinafter referred to collectively as the ‘Parties ’and individually as the ‘Party ’,
ACKNOWLEDGING the importance of coordinating and strengthening the friendship, cooperation and interaction
between the Socialist Republic of Vietnam and the European Community; and
DESIRING to develop and broaden trade and investment relations between the Socialist Republic of Vietnam and the
European Community,
HAVE AGREED AS FOLLOWS:
Article 1
From 1 January 2005, the European Community shall suspend,
with the aim of elimination, the textile and clothing quotasimposed on the Socialist Republic of Vietnam.
Article 2
From 1 January 2005, the Socialist Republic of Vietnam shall:
—apply the tariffs for clothing, fabrics and made –up articles
and fibres at the levels as committed by Vietnam in theAgreement on trade in textiles and clothing and othermarket opening measures initialled in Hanoi on 15February 2003 (
1),
—apply a tariff rate of 5 % for yarns,
—apply a tariff rate of 65 % for wines and spirits,
—grant to European Community investors and services
providers treatment no less favourable than that accordedto US investors and services suppliers as provided for in theInvestment and Trade in Services Chapters of the BilateralTrade Agreement between the Socialist Republic of Vietnamand the United States of America and the relevant Annexesthereof,—allow European Community operators to invest in cement
and clinker production, subject to the regulations applied inthis sector in Vietnam. These regulations are non-discrimi-natory,
—allow European Community investors in the telecommuni-
cations sector, currently operating under Business Co-operation Contracts with Vietnamese operators, to havethe possibility to renew current arrangements or toconvert them into another form of establishment withconditions no less favourable than those they currentlyenjoy, in accordance with the WTO Arrangement initialled
by Vietnam and the European Community on 9 October
2004,
—eliminate restriction on the customers to whom European
Community suppliers of computer services, constructionservices, engineering, integrated engineering, architecturalservices and urban planning services, which are currentlyoperating in Vietnam, provide the services,
—consider granting licences, on a case-by-case basis and under
the conditions set forth in the WTO Arrangement initialledby Vietnam and the European Community on 9 October2004, for the European Community ’s operators to establish
100 % European Community –owned enterprises in Vietnam
to provide computer services, construction services, engi-
neering, integrated engineering, architectural services and
urban planning services without restrictions on thecustomers to whom these services are provided,
—allow 4 (four) European Community pharmaceutical firms
to carry out toll manufacturing in Vietnam without licensetransfer and while retaining their authorisation to marketthe imported products,EN 22.3.2005 Official Journal of the European Union L 75/37
(1) Published in the Official Journal of the European Union L 152,
26.6.2003, p. 42, as ‘Agreement in the form of Exchange of
Letters amending the Agreement between the European
Community and the Socialist Republic of Vietnam on trade in
textile and clothing products and other market opening measures,as last amended by the Agreement in the form of an Exchange ofLetters initialled on 31 March 2000 ’.
—allow European Community companies to establish joint
ventures with Vietnamese partners, without limitation onEuropean Community capital contribution, in order toinvest in construction of office buildings and apartmentsfor sale and lease, subject to Vietnam ’s laws and regulations
on property sale and lease.
Article 3
No later than 31 March 2005, the Socialist Republic of Vietnam
shall:
—grant to 1 (one) European Community distributor a licence
to establish a 100 % European Community-owned enterprise
in Vietnam, subject to the conditions provided for in theWTO Arrangement initialled by Vietnam and the EuropeanCommunity on 9 October 2004,
—grant to 1 (one) European Community insurer a licence to
operate in the life insurance sector in Vietnam,
—allow joint ventures with 51 % capital contribution by
European Community shipping lines, and allow 1 (one)European Community shipping line to set up a 100 %European Community-invested enterprise in Vietnam tocarry out activities of its own shipping line, under the
conditions provided for in the WTO Arrangement initialled
by Vietnam and the European Community on 9 October2004,
—grant to 1 (one) European Community service supplier a
licence to provide computer reservation system services in
Vietnam, under the conditions provided for in the WTO
Arrangement initialled by Vietnam and the EuropeanCommunity on 9 October 2004,
—grant tariff quota for the importation of 3 500 units of
Completely Built Units (CBU) of motorbikes or scooters of
European Community origin at 70 % of the current tariff
rate. At least 50 % of these quotas shall be allocated toVietnamese agents and distributors duly authorised byEuropean Community manufacturers.
Article 4
The Socialist Republic of Vietnam shall:—grant to European Community investors treatment no less
favourable than that accorded to Japanese investors asprovided for in the Bilateral Investment Agreement (BIT)between the Socialist Republic of Vietnam and Japan,upon the entry into force of the said Agreement,
—in 2005 and 2006, grant 3 (three) licences to European
Community suppliers of environmental services to operatein Vietnam as 100 % European Community –owned enter-
prises, for providing environmental services, except environ-mental impact assessment services, subject to the scope ofactivities and conditions provided for in the WTOArrangement initialled by Vietnam and the EuropeanCommunity on 9 October 2004,
—allow European Community distributors, legally operating in
Vietnam, to open 4 (four) more stores in 2005 and 2 (two)additional stores in 2006,
—grant to 1 (one) European Community distributor a licence
to operate in Vietnam as a 100 % European Community-owned enterprise in 2006, subject to the conditionsprovided for in the WTO Arrangement initialled byVietnam and the European Community on 9 October 2004,
—reduce the list of prohibited molecules to 5 to 7 molecules
no later than December 2004, and abolish this list for theEuropean Community no later than 31 December 2005.
Article 5
The European Community may reapply the textile and clothing
quotas at the level of the total quantity of the textile andclothing quotas accorded by the European Community toVietnam in 2004, increased by the annual growth ratesprovided for in the Agreement on trade in textiles andclothing and other market opening measures initialled inHanoi on 15 February 2003, in the event that Vietnam failsto fulfil any of the obligations contained in Articles 2, 3 and 4of this Agreement or in paragraph 9 of the 2003 Agreementcited above.
In the event that the European Community fails to fulfil its
obligations under Article 1 of this Agreement or in paragraph9 of the Agreement on trade in textiles and clothing and othermarket opening measures initialled in Hanoi on 15 February2003, Vietnam may suspend the application of itscommitments under Articles 2, 3 and 4 of this Agreement.EN L 75/38 Official Journal of the European Union 22.3.2005
Article 6
This Agreement shall enter into force upon the exchange of
written notifications by the Parties of the completion of theirrespective internal procedures for that purpose.
Either Party may at any time propose modifications to this
Agreement or denounce it, provided that at least six months'
notice is given. In the event of denouncement, the Agreement
shall come to an end on the expiry of the period of notice.
This Agreement will expire upon the date of accession of
Vietnam to the WTO.The Parties shall endeavour to complete their respective internal
procedures with a view of implementing this Agreement by 31December 2004.
Article 7
This Agreement shall be drawn up in duplicate in the Czech,
Danish, Dutch, English, Estonian, Finnish, French, German,Greek, Hungarian, Italian, Latvian, Lithuanian, Maltese, Polish,Portuguese, Slovak, Slovenian, Spanish, Swedish and Vietnameselanguages, each of these being equally authentic.
For the European Community For the Government
of the Socialist
Republic of VietnamEN 22.3.2005 Official Journal of the European Union L 75/39