The EU-Vietnam Investment Protection Agreement was signed on June 30, 2019, marking a significant milestone in the partnership between the European Union (EU) and Vietnam. The agreement aims to promote and protect bilateral investments, and it has the potential to boost trade and economic growth for both regions.
The EU-Vietnam Investment Protection Agreement is part of a larger agreement called the EU-Vietnam Free Trade Agreement (EVFTA), which also includes provisions for reducing tariffs and non-tariff barriers to trade. The EVFTA was signed on the same day as the Investment Protection Agreement, and it is expected to become effective in 2020 after it has been ratified by all 28 EU member states.
The Investment Protection Agreement includes provisions for protecting EU investors in Vietnam, such as guaranteeing fair and equitable treatment, protecting against expropriation without compensation, and providing a mechanism for resolving disputes. It also promotes sustainable development, labor rights, and environmental protection.
The EU has long been one of Vietnam`s largest trading partners, and the Investment Protection Agreement is expected to further strengthen this relationship. Vietnam`s economy has been growing rapidly in recent years, and it is seen as a promising market for European businesses looking to expand into Asia.
However, the agreement has not been without controversy. Some critics have raised concerns about the potential for foreign investors, particularly those from the EU, to exploit Vietnam`s labor and environmental standards. Others have objected to the provision for investor-state dispute settlement, which allows investors to bring claims against governments for damages if they believe their investments have been unfairly treated.
Despite these concerns, the EU-Vietnam Investment Protection Agreement is seen as a positive step for EU-Vietnam relations and for promoting trade and investment between the two regions. As Vietnam continues to modernize and open up its economy, it offers a wealth of opportunities for European companies, and the Investment Protection Agreement provides a framework for protecting those investments and ensuring a level playing field for all participants.