Agreement between the European Community and the Government of the Socialist Republic of Vietnam on market access
Date: 2005-03-22
Institutions: European Community, Viet Nam
Subjects: Viet Nam, market access, trade agreement (EU)

22.3.2005

EN

Official Journal of the European Union

L 75/37

between the European Community and the Government of the Socialist Republic of Vietnam on
market access

AGREEMENT

THE EUROPEAN COMMUNITY

and

THE GOVERNMENT OF THE SOCIALIST REPUBLIC OF VIETNAM

hereinafter 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

— allow European Community operators to invest in cement
and clinker production, subject to the regulations applied in
this sector in Vietnam. These regulations are non-discrimi-
natory,

From 1 January 2005, the European Community shall suspend,
with the aim of elimination, the textile and clothing quotas
imposed 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 the
Agreement on trade in textiles and clothing and other
market opening measures
initialled in Hanoi on 15
February 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 accorded
to US investors and services suppliers as provided for in the
Investment and Trade in Services Chapters of the Bilateral
Trade Agreement between the Socialist Republic of Vietnam
and the United States of America and the relevant Annexes
thereof,

amending

Journal of

(1) Published in the Official

the European Union L 152,
26.6.2003, p. 42, as ‘Agreement
in the form of Exchange of
Letters
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 of
Letters initialled on 31 March 2000’.

the Agreement

between

the

— allow European Community investors in the telecommuni-
sector, currently operating under Business Co-
cations
to have
operation Contracts with Vietnamese operators,
to
the possibility to renew current
convert
them into another form of establishment with
conditions no less favourable than those they currently
enjoy, in accordance with the WTO Arrangement initialled
by Vietnam and the European Community on 9 October
2004,

arrangements or

— eliminate restriction on the customers to whom European
Community suppliers of computer services, construction
services, engineering,
integrated engineering, architectural
services and urban planning services, which are currently
operating in Vietnam, provide the services,

— consider granting licences, on a case-by-case basis and under
the conditions set forth in the WTO Arrangement initialled
by Vietnam and the European Community on 9 October
2004, for the European Community’s operators to establish
100 % European Community–owned enterprises in Vietnam
to provide computer services, construction services, engi-
integrated engineering, architectural services and
neering,
urban planning
restrictions on the
customers to whom these services are provided,

services without

— allow 4 (four) European Community pharmaceutical firms
to carry out toll manufacturing in Vietnam without license
transfer and while retaining their authorisation to market
the imported products,

L 75/38

EN

Official Journal of the European Union

22.3.2005

— allow European Community companies to establish joint
ventures with Vietnamese partners, without limitation on
European Community capital contribution,
to
invest in construction of office buildings and apartments
for sale and lease, subject to Vietnam’s laws and regulations
on property sale and lease.

in order

— grant to European Community investors treatment no less
favourable than that accorded to Japanese investors as
provided for in the Bilateral
Investment Agreement (BIT)
between the Socialist Republic of Vietnam and Japan,
upon the entry into force of the said Agreement,

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 the
WTO Arrangement initialled by Vietnam and the European
Community 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 to
its own shipping line, under the
carry out activities of
conditions provided for in the WTO Arrangement initialled
by Vietnam and the European Community on 9 October
2004,

— 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 European
Community 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 to
Vietnamese agents and distributors duly authorised by
European Community manufacturers.

Article 4

The Socialist Republic of Vietnam shall:

— in 2005 and 2006, grant 3 (three)

licences to European
Community suppliers of environmental services to operate
in Vietnam as 100 % European Community–owned enter-
prises, for providing environmental services, except environ-
mental impact assessment services, subject to the scope of
in the WTO
activities
Arrangement
initialled by Vietnam and the European
Community on 9 October 2004,

and conditions provided for

— 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-
to the conditions
owned enterprise in 2006,
provided for
initialled by
in the WTO Arrangement
Vietnam and the European Community on 9 October 2004,

subject

— reduce the list of prohibited molecules to 5 to 7 molecules
no later than December 2004, and abolish this list for the
European Community no later than 31 December 2005.

Article 5

the level of

the total quantity of

The European Community may reapply the textile and clothing
quotas at
the textile and
clothing quotas accorded by the European Community to
increased by the annual growth rates
Vietnam in 2004,
in the Agreement on trade in textiles and
provided for
initialled in
clothing and other market opening measures
Hanoi on 15 February 2003,
in the event that Vietnam fails
to fulfil any of the obligations contained in Articles 2, 3 and 4
of this Agreement or in paragraph 9 of the 2003 Agreement
cited above.

its
In the event that the European Community fails to fulfil
obligations under Article 1 of this Agreement or in paragraph
9 of the Agreement on trade in textiles and clothing and other
market opening measures initialled in Hanoi on 15 February
2003, Vietnam may
its
suspend
commitments under Articles 2, 3 and 4 of this Agreement.

application

the

of

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Official Journal of the European Union

L 75/39

Article 6

This Agreement shall enter into force upon the exchange of
written notifications by the Parties of the completion of their
respective internal procedures for that purpose.

The Parties shall endeavour to complete their respective internal
procedures with a view of implementing this Agreement by 31
December 2004.

Article 7

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 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 Vietnamese
languages, each of these being equally authentic.

This Agreement will expire upon the date of accession of
Vietnam to the WTO.

For the European Community

For the Government
of the Socialist
Republic of Vietnam