Overview of the Free Trade Agreement (FTA)
What is a Free Trade Agreement(FTA)?
Before we can learn about the Free Trade Agreement, we need to understand what Free Trade means and who came up with this hypothesis.
Free trade is an idealized economic policy where governments do not impose tariffs, taxes, or quotas on imports and exports, contrasting sharply with protectionism, which aims to shield domestic industries from foreign competition Despite the concept of free trade, most governments still implement certain regulations to manage trade flows.
In principle, free trade on the international level is no different from trade between neighbors, towns, or states However, it allows businesses in each
1 https://www.thoughtco.com/free-trade-definition-theories-4571024
The Free Trade Agreement (FTA) enables countries to concentrate on producing and selling goods that optimize their resources This agreement fosters international business by reducing trade barriers, enhancing economic cooperation, and promoting efficiency in production By allowing nations to specialize in their comparative advantages, FTAs contribute to increased trade volumes and economic growth, ultimately benefiting consumers through lower prices and greater variety of goods.
Businesses that import scarce or unavailable goods enhance local production and foreign trade, enabling economies to grow more rapidly while effectively satisfying consumer needs.
2 Free trade agreement (FTA) definition:
A free trade agreement is an arrangement between multiple countries aimed at minimizing trade barriers, allowing for the seamless exchange of goods and services This policy facilitates international commerce by reducing or eliminating government tariffs, quotas, subsidies, and prohibitions, thereby promoting a more open and competitive market.
Free Trade Agreement in Vietnam
FTAs that Vietnam has participated in
Up to November, 2020, Vietnam has participated in 13 FTAs, there is 1 FTAs has not ratifield and 2 FTAs are negotiating.
The table below show FTAs that Vietnam has participated in:
Vietnam is actively engaging in new free trade agreements, enhancing its economic integration and trade relations globally These agreements aim to boost exports, attract foreign investment, and foster economic growth By participating in these trade deals, Vietnam positions itself as a competitive player in the international market, benefiting from reduced tariffs and improved market access The strategic focus on trade liberalization is expected to drive innovation and development across various sectors within the country.
Vietnam and EVFTA
EVFTA
The EU-Vietnam Free Trade Agreement (EVFTA) is a new generation FTA between Vietnam and 28 European Union member states.
It is a comprehensive and high-quality agreement that ensures balanced benefits for Vietnam and the EU, considering the differences in development levels between the two sides.
The implementation of the EVFTA is anticipated to significantly enhance Vietnam's export capabilities, fostering market diversification and benefiting particularly the agricultural and aquatic sectors, along with other Vietnamese products that possess competitive advantages.
4 https://en.nhandan.org.vn/evfta/
The Free Trade Agreement (FTA) plays a crucial role in international business by promoting trade between countries through the reduction or elimination of tariffs and trade barriers This agreement facilitates a more seamless exchange of goods and services, enhancing economic cooperation and competitiveness Understanding the implications of FTAs is essential for professionals in international business, as they can significantly impact market access, supply chains, and overall economic growth By fostering a favorable trade environment, FTAs contribute to job creation and can lead to lower prices for consumers.
The Prime Minister of Vietnam and the President of the European Commission agreed to start negotiations on the EVFTA
The Vietnamese Minister of Industry and Trade and the European Commissioner for
Trade officially announced the negotiations on EVFTA
Negotiations on the agreement concluded and legal review began to prepare for the signing of the agreement
The legal review process for the EVFTA at technical level completed
The European Union has requested that Vietnam separate the investment protection provisions and the investor-state dispute settlement (ISDS) mechanism from the EU-Vietnam Free Trade Agreement (EVFTA), creating a distinct agreement This request arises from new concerns regarding the EU's authority to ratify free trade agreements Consequently, the EVFTA will be divided into two separate agreements, including the original EVFTA.
Vietnam and the European Union have officially divided the EU-Vietnam Free Trade Agreement (EVFTA) into two distinct agreements: the EVFTA and the Investment Protection Agreement (IPA) This milestone marks the completion of the legal review process for the EVFTA, with all aspects of the IPA also receiving mutual agreement.
The legal review of the IPA completed
The European Commission officially adopted the EVFTA and IPA
The European Council approved the signing of the agreements
The EVFTA and IPA were officially signed in Hanoi
The Free Trade Agreement (FTA) is a pivotal framework that facilitates international trade by reducing or eliminating tariffs and trade barriers between participating countries This agreement promotes economic cooperation, enhances market access, and fosters a competitive business environment Understanding the implications of FTAs is essential for careers in international business, as they create opportunities for companies to expand their reach and optimize supply chains By leveraging FTAs, businesses can tap into new markets, increase profitability, and drive growth in a globalized economy.
The European Parliament will review two significant trade agreements, with the EU-Vietnam Free Trade Agreement (EVFTA) anticipated to receive approval later this year or in early 2020 In contrast, the Investment Protection Agreement (IPA) is expected to take a minimum of two years for ratification by the European Parliament and member states.
The EVFTA is a win-win trade deal with balanced benefits for both Vietnam and the EU, which complies with the provisions of the World Trade Organisation (WTO).
The main contents covering the following aspects:
With the implementation of the Agreement, the EU will eliminate import duties on approximately 85.6% of tariff lines, representing 70.3% of Vietnam's export turnover to the EU Within seven years, this will increase to 99.2% of tariff lines, covering 99.7% of Vietnam's exports Additionally, for the remaining 0.3% of export turnover, the EU will offer Vietnam a tariff-rate quota with a 0% import tax within the quota.
Vietnam has committed to eliminating tariffs on EU exports, starting with 48.5% of tariff lines that represent 64.5% of import turnover upon the Agreement's implementation Within seven years, Vietnam will have removed tariffs on 91.8% of tariff lines, covering 97.1% of EU export turnover After ten years, approximately 98.3% of tariff lines will be eliminated, accounting for 99.8% of import turnover For the remaining 1.7% of EU tariff lines, a tariff elimination schedule exceeding ten years will be applied, or tariff quotas will be implemented in accordance with WTO commitments.
Trade in services and investment:
Vietnam has committed to allowing EU credit institutions to increase their foreign ownership to 49% in two joint stock commercial banks within five years of the Agreement's enactment However, this commitment excludes the four state-majority-owned banks: BIDV, Vietinbank, Vietcombank, and Agribank.
Insurance services: Vietnam commits to allow cross-border reinsurance, commits to voluntary health insurance services under Vietnamese law As for the
The Free Trade Agreement (FTA) serves as a framework to enhance international business by promoting trade and investment between participating countries It aims to reduce tariffs and eliminate trade barriers, fostering economic cooperation and growth Additionally, the FTA includes provisions for establishing a reinsurance branch, which will be permitted only after a designated transition period to ensure a smooth integration into the market This approach not only supports the expansion of international business careers but also encourages a more robust economic environment.
The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) reflects our strong commitment to telecommunication services, particularly in value-added telecommunications without network infrastructure Following a transition period, we permit the establishment of 100% foreign-owned enterprises by the EU in this sector.
After five years from the Agreement's effective date, we will eliminate the economic needs test for distribution services, while retaining the right to conduct non-discriminatory distribution system planning Additionally, we commit to non-discrimination in the production, import, and distribution of alcohol, enabling EU businesses to operate under existing licenses and requiring only one license for import, distribution, wholesale, and retail activities.
Vietnam and the European Union have reached an agreement aligning with the Government Procurement Agreement (GPA) of the WTO, which includes commitments to online bidding and the establishment of a portal for bidding information Vietnam has outlined a roadmap for implementing these obligations, while the EU has pledged to offer technical assistance to support Vietnam in meeting these requirements.
To enhance e-commerce between Vietnam and the EU, both parties have agreed to eliminate import taxes on electronic transactions Additionally, they have committed to ongoing cooperation by engaging in dialogue to address various management issues related to e-commerce.
-Responsibility of intermediate service providers for transmission or storage of information;
Deal with forms of electronic communication in commerce without the consent of the recipient (such as email offers, advertising );
Protect consumers when participating in electronic transactions.
The two sides will also cooperate in exchanging information on domestic laws and regulations and related enforcement issues.
The Free Trade Agreement (FTA) is a pivotal element in international business, designed to enhance trade between countries by reducing tariffs and other trade barriers FTAs aim to promote economic growth, increase market access, and foster stronger economic ties among participating nations By facilitating smoother trade operations, these agreements create opportunities for businesses to expand their reach and enhance competitiveness in the global market Understanding the implications and benefits of FTAs is crucial for professionals pursuing a career in international business, as they play a significant role in shaping global trade dynamics.
Students in the age of integration and Innovation
Integration trends of country in the coming time
The Party's ninth Congress was a pivotal moment, emphasizing the strategy of "Proactive integration into the regional and international economy." Since then, international economic integration and engagement in free trade agreements (FTAs) have been consistently prioritized in the Resolutions and Directives issued by the Party and Government.
The Party and Government have established key perspectives and guidelines regarding international economic integration and participation in Free Trade Agreements (FTAs), as outlined in the Resolutions and Directives.
Economic integration should be the primary focus, with other areas of integration supporting this goal It is essential for driving economic development, strengthening national defense, and ensuring security while also preserving cultural identity and fostering social progress A synchronized approach to integration across all sectors is necessary, guided by a comprehensive international strategy that aligns with the country's unique conditions and capabilities.
To enhance national interests and security while preserving cultural identity and protecting the environment, it is essential to actively engage in both regional and international economies This approach focuses on optimizing internal resources, improving the effectiveness of international cooperation, and ensuring independence and autonomy within a socialist framework.
To enhance economic development, it is essential to expedite the reform of economic institutions, mechanisms, and policies in alignment with the Party and State's directives This involves actively forging new partnerships and engaging in negotiations to promote bilateral, regional, and multilateral economic cooperation.
The Free Trade Agreement (FTA) plays a crucial role in shaping international business careers by promoting trade between nations FTAs aim to reduce or eliminate tariffs and trade barriers, fostering economic growth and cooperation Understanding the implications of FTAs is essential for professionals in international business, as they can significantly impact market access and competitiveness Additionally, FTAs can create new opportunities for businesses, enhance consumer choice, and drive innovation Staying informed about the latest developments in FTAs is vital for anyone looking to succeed in the global marketplace.
To enhance economic growth, it is essential to devise and execute a strategic plan that includes joining free trade areas with key economic partners, aligned with national interests and capabilities Additionally, proactive measures should be established to safeguard the legitimate interests of the State, businesses, and domestic consumers.
To enhance national development and security, it is crucial to strengthen and deepen partnerships, particularly with strategically important allies By effectively implementing the established relationship framework, we can foster a blend of mutual interests between our nation and its partners.
Proactively engaging in multilateral institutions is essential for fostering a fair and democratic political and economic order, which helps prevent conflicts and promotes peace and cooperation Emphasizing Vietnam's role in the ASEAN Community, it is crucial to strengthen solidarity and enhance connections within the bloc while also collaborating with ASEAN's dialogue partners to advance mutual benefits and regional stability.
Vietnam has successfully established free trade relations with many of the world's key partner countries, laying a strong foundation for enhancing bilateral trade and investment exchanges This effort also contributes to the country's international economic integration both regionally and globally.
Opportunities and threats of students in the age of integration
Students can tap into a cutting-edge scientific knowledge system rich in information, while simultaneously enhancing the region and global community through effective teaching, training, and educational management strategies.
International integration enables universities to enhance their curricula by incorporating advanced training content from global institutions while benefiting from the expertise of international faculty This approach fosters diversity across various dimensions and aligns with the unique characteristics of emerging sciences and training disciplines.
The Free Trade Agreement (FTA) plays a crucial role in international business by promoting trade between countries through the reduction or elimination of tariffs and trade barriers This agreement facilitates smoother market access, enhances economic cooperation, and fosters investment opportunities By understanding the implications of FTAs, professionals in international business can navigate the complexities of global trade, identify emerging markets, and leverage competitive advantages The FTA ultimately contributes to economic growth and development, making it essential for career advancement in the field of international business.
Vietnamese universities can enhance their academic and research capabilities by partnering with renowned international institutions This collaboration will enable students to access modern knowledge and conduct research locally, eliminating the need to study abroad while maintaining economic efficiency.
Vietnam's higher education system is significantly supported by various aid sponsors, including organizations, financial institutions, governments, and nonprofit entities These contributions encompass a range of projects and educational development programs aimed at enhancing facilities and equipment As a result, students are provided with improved learning opportunities and access to advanced scientific and technological resources.
The training program has been renewed in line with, standardized with the international program
Vietnamese students can strive to win scholarships to study abroad with their own talents.
These opportunities have fostered government foreign affairs, enhanced cultural exchanges, dialogues, and exchanges this is also the soft power of the new era between peoples and nations Area.
In the context of today's international integration, students encounter numerous challenges, including inadequate education, professional qualifications, and economic knowledge While students' integration capabilities and social skills have improved, they still fall short of the demands of the global landscape Additionally, some students lack awareness of their roles and responsibilities, which negatively impacts the quality of the country's human resources during this critical period of integration.
Vietnamese students face significant challenges in foreign language proficiency, which limits their ability to engage with global scientific communities Additionally, the application of knowledge and practical skills among university students in Vietnam falls short of international training standards, hindering their academic progress and integration into the global workforce.
The Free Trade Agreement (FTA) plays a crucial role in shaping international business careers by promoting trade liberalization and reducing tariffs between participating countries This agreement fosters economic growth and opens up new markets, allowing businesses to expand their reach and enhance competitiveness Understanding the dynamics of FTAs is essential for professionals in international business, as they navigate the complexities of global trade and leverage opportunities for cross-border collaboration By analyzing the implications of FTAs, individuals can better position themselves for success in the evolving landscape of international commerce.
In addition to life skills, Vietnamese students' communication skills have many points to note because they are surrounded by their parents, so they cannot be independent.
The educational system in Vietnam heavily emphasizes theoretical knowledge, resulting in limited practical experience for students This lack of hands-on training poses a significant disadvantage, especially when compared to global educational trends that prioritize practical skills development.
Knowledge, Skill, Attitude that IB students need
International business is an increasingly relevant field in today's integrated world, making proficiency in a foreign language a crucial skill for success Additionally, a genuine passion for business is essential, as it drives individuals to persevere through challenges and adapt to the dynamic nature of the industry, ultimately fostering long-term career connections and growth.
2 Communication, ability to persuade others
International business demands a high level of sophistication, flexibility, and knowledge, along with substantial social experience These elements are crucial for effective communication, swift conflict resolution, and successful negotiations with partners and clients.
Creativity is essential for professionals in international business, as it fosters the development of innovative strategies and plans This quality is not innate but rather the result of a continuous process involving learning, observation, and critical thinking Additionally, a confident and assertive approach to work is crucial and should not be underestimated.
4 The ability to collect and process information
In the dynamic landscape of international trade, possessing the ability to effectively process diverse and ever-changing information is crucial Professionals in this field must be adept at discerning and selecting relevant data to navigate the complexities of global business successfully.
The Free Trade Agreement (FTA) plays a crucial role in shaping international business by facilitating investment projects, promoting cooperation, and driving business development efficiently Success in this dynamic field requires not only an understanding of market trends but also the ability to thrive under pressure and navigate a competitive landscape Additionally, professionals must possess a deep knowledge of cultural, historical, and legal contexts to effectively engage in global commerce.
A recent report highlights Vietnam's strengths and weaknesses in the current era, showcasing its significant opportunities for integration and economic growth, while also addressing the numerous challenges ahead The report suggests various solutions and strategies to enhance Vietnam's development, aiming to elevate the country to the level of other developed nations.
The integration and development trends in the international business industry highlight promising career prospects, offering valuable experiences and lessons These insights can guide current and future students in shaping their paths and taking the lead in their professional journeys.
The Free Trade Agreement (FTA) plays a crucial role in international business by facilitating trade between countries It aims to reduce or eliminate tariffs and trade barriers, promoting a smoother exchange of goods and services Understanding the implications of FTAs is essential for career development in international business, as they influence market access, competitive advantage, and economic growth Professionals in this field must stay informed about ongoing negotiations and changes in trade policies to leverage opportunities effectively.
Tổng hợp các FTA của Việt Nam tính đến tháng 11/2020
Vu Van Dien (2019) , Viet Nam và các hiệp định thương mại tự do thế hệ mới, Tạp chí Tài Chính, Bài đăng trên Tạp chí Tài chính kỳ 2 tháng 7/2019
Ban chỉ đạo 35 Bộ Công Thương đã khẳng định tầm quan trọng của hội nhập kinh tế quốc tế, là một hướng đi đúng đắn và sáng suốt mà Đảng đã lựa chọn để thúc đẩy phát triển kinh tế đất nước Bộ Công Thương Việt Nam đóng vai trò chủ chốt trong việc triển khai các chính sách nhằm nâng cao khả năng cạnh tranh và hội nhập quốc tế của nền kinh tế.