The Meaning of the Vietnam – United States Trade Agreement (BTA)

trade. In addition, the United States also committed to assisting Vietnam in the process of perfecting its legal system and implementing the Agreement. Vietnam also committed to the following roadmap for implementation of Intellectual Property Rights:

 For obligations to protect trademarks and patents: 12 months from the date the Agreement comes into effect.

 For obligations to protect copyright and related rights and obligations to protect confidential information: 18 months from the date the Agreement comes into effect.

 For the protection of encrypted program-carrying satellite signals, subject to the provisions of the Geneva Convention, the Convention relating to the Distribution of Program-Carrying Signals Transmitted by Satellite, and compliance with the term requirements for copyright and related rights: 30 months after the entry into force of the Agreement.

 For any other obligations: 24 months after the Agreement enters into force.

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Trade in services

In the service sector, Vietnam commits to comply with WTO regulations on the principles of Most-Favored Nation, National Treatment and principles in national law. This chapter of the Agreement is built according to the provisions of the WTO General Agreement on Trade in Services (GATS) with some minor technical changes and has been revised to be more reasonable and complete. On the US side, this country commits to open its service market to Vietnam as it does to other WTO member countries. Therefore, Vietnamese enterprises will have access to the US service market and will not be limited in terms of capital and forms of service provision. In addition, compliance with some technical standards will be applied to service providers.

Vietnam is like many other countries. Vietnamese enterprises will face many difficulties in competing with foreign service providers because the level of service market opening in Vietnam's commitments is much lower than that of the United States.

Banking Services: Vietnam agrees to implement the following liberalization measures: Within 9 years from the date of entry into force of the Agreement, US banks are allowed to establish joint ventures with Vietnamese partners, in which the US capital contribution is from 30% to 49% of the legal capital of the joint venture. After 9 years, it is allowed to establish a bank with 100% US investment capital.

Telecommunications : Vietnam allows the establishment of joint ventures after 2 years from the date the Agreement comes into effect with the maximum US capital contribution being 50% of the legal capital of the joint venture for high-end telecommunications services; 4 years with a control level of 49% of the legal capital of the joint venture for basic telecommunications services.

Insurance : According to the Bilateral Trade Agreement, for compulsory insurance sectors such as vehicle and construction insurance, after 3 years of the Agreement taking effect, Vietnam will allow US companies to establish joint ventures, with no limit on US capital contribution. After 6 years, it will allow the establishment of 100% US-invested enterprises. For life insurance and other non-compulsory insurance sectors, after 3 years from the date the Agreement takes effect, it will allow the establishment of joint ventures with a maximum US capital contribution of 50% of the legal capital of the joint venture. After 5 years, it will allow the establishment of 100% US-invested enterprises.

Legal services : US service providers can provide services in the form of branches, 100% US-owned companies; these branches receive operating licenses for 5 years and can be renewed for no more than 5 years each time.

Accounting and auditing services : Allows 100% US-owned companies to operate in this field. Licenses are granted on a case-by-case basis, valid for 3 years, with no restrictions thereafter. May provide services to foreign-invested companies for the first 2 years, with no restrictions thereafter. Architectural, engineering and other related services: Allows companies to

100% US-owned companies are allowed to do business. Can provide services to foreign companies for the first 2 years, then unlimited.

Educational services : Only under the form of joint ventures, 7 years after the Agreement comes into effect, schools with 100% US capital will be allowed to be established.

Medical services : Allowed to establish 100% US-owned medical facilities. Minimum investment capital for hospitals is 20 million USD, general clinics is 2 million USD and specialized clinics is 1 million USD.

Investor Relations

Regarding investment, the Agreement provides guarantees on Most-Favored-Nation treatment, national treatment, transparency and protection in case of expropriation. On the Vietnamese side, the Government agrees to allow investment in Vietnam, reserving national treatment in certain sectors such as investment in broadcasting, banking, fishing and seafood, real estate business, etc., maintaining indefinitely the investment licensing regime for projects under the Prime Minister's decision-making authority. Vietnam agrees to eliminate all trade-related investment measures (TRIMs) inconsistent with WTO regulations within 5 years of the Agreement's entry into force.

Regarding transparency, Vietnam agrees to implement a fully transparent trade regime by allowing comments on draft laws and regulations, ensuring that such laws and regulations are made public by publishing all texts, and allowing U.S. citizens and companies to challenge these regulations. Consistent with Vietnam’s commitments, the United States also maintains or may grant certain exceptions to most-favored treatment.

national treatment in areas such as fisheries, banking, transportation, securities , etc. The United States also maintains exceptions for most countries that have bilateral investment treaties with the United States.

2.1.3. Significance of the Vietnam – United States Trade Agreement (BTA)

The signing of the Vietnam-US Trade Agreement has created a foundation for the two sides to establish and develop equal and mutually beneficial economic and trade relations on the basis of respect for each other's independence and sovereignty. Therefore, the Agreement is of great significance not only to Vietnam but also to the United States.

The signing of the Vietnam - US Trade Agreement has opened up great opportunities for Vietnam, especially in increasing exports and attracting foreign investment. It can be said that this is the most comprehensive bilateral trade agreement among the trade agreements that Vietnam has ever signed with other countries. The agreement will have a profound and lasting impact on the economic, cultural and social life of Vietnam, thereby creating opportunities to expand the huge import market and promote the development of Vietnam. Since the US lifted the embargo in 1994, the Vietnam-US Trade Agreement has been an important step for Vietnam in the process of obtaining Normal Trade Relations (NTR) status for Vietnamese goods. In addition, the Agreement promotes the transformation of Vietnam's economy towards openness, expanding free business opportunities for Vietnamese enterprises in many areas of commercial activities. The requirements on transparency and the right to appeal administrative decisions of the Agreement will encourage and enhance the application of the rule of law in the mechanism of trade in goods, services, investment and intellectual property of Vietnam. In addition, through the mechanism of fair competition based on the principles of the Agreement, Vietnamese enterprises will pay attention to

The Agreement focuses on technological innovation, management innovation, improving productivity, quality, and reputation in the market, contributing to promoting and shifting the economic structure to suit market demand, thereby enhancing the competitiveness of Vietnamese goods in the international market. The implementation of the Agreement will help Vietnam have the conditions to absorb modern science and technology, while also creating great opportunities for labor use and human resource training in Vietnam. In the process of using our abundant human resources, we can learn experiences and management techniques, and train highly qualified human resources. Finally, the Agreement not only promotes the development of the domestic economy, but also has a strong impact on Vietnam's foreign economic relations with other countries, economic organizations in the region and around the world. Proactively approaching international trade laws and practices through the process of signing and implementing the Trade Agreement with the United States is the basis for Vietnam to expand cooperative relations with many countries around the world.

As the second largest country in Southeast Asia with a largely young population, Vietnam has great potential to become a continuously growing trade partner of the United States in the coming years. The Bilateral Trade Agreement between the two countries has created many opportunities for the United States. The Agreement has expanded import and export rights from a limited number of businesses and gradually to most US companies in Vietnam. The experiences of the Vietnamese market that US businesses have gained during the implementation of the Agreement will be very useful for them in enhancing their competitiveness and expanding their market in Vietnam. In addition, the Agreement will create many great trade opportunities for US businesses to export and do business in Vietnam thanks to the immediate and long-term benefits in Vietnam. By eliminating tariff and non-tariff barriers to the import of goods, opening the market in a number of key areas such as telecommunications, insurance, banking, intellectual property protection and eliminating policies

In addition to investment barriers, the Agreement will facilitate for the first time easy access for US manufacturers and service providers to a market of more than 80 million people and growing in many other sectors of Vietnam.

2.2. Permanent Normal Trade Relations (PNTR)

PNTR is a status related to common tariff standards or treaties that the US Government grants to certain countries in exchange for tariff treaties that are favorable to US exports. As a member of the World Trade Organization (WTO), the United States must provide basic trade treatment to goods from other members of this organization. Therefore, when Vietnam joined the WTO, the United States had to grant Vietnam Permanent Normal Trade Relations (PNTR). However, under the US Trade Act of 1974, Vietnam is currently in a conditional normal trade relations (NTR) status, which is renewed annually. The condition for NTR review is that Vietnam must accept the condition of allowing free migration under the Jackson - Vanik Act of the Trade Act of 1974. The Jackson - Vanik Act applies to countries that the United States considers to be non-market economies, including Vietnam. Therefore, to achieve PNTR, the most important thing is that the US legislature will have to repeal the Jackson - Vanik Act with Vietnam. The main issue now is that the US Congress must vote to grant PNTR to Vietnam. The consideration and approval of this statute will be applied like most other laws in the US Congress. Discussions are limited to 20 hours in the Senate and the House of Representatives and the time is divided equally between the supporters and opponents. After the consideration procedure is passed, it means that the US officially repeals the Jackson - Vanik Act with Vietnam. The US Congress has 60 days to pass this bill, after which

forwarded to the President for signature and will make a formal decision on accepting PNTR status.

On December 9, 2006, the US Senate and House of Representatives passed Permanent Normal Trade Relations (PNTR) with Vietnam, with a majority of votes in favor. On December 20, 2006, US President G. Bush signed the Permanent Normal Trade Relations (PNTR) with Vietnam. The bill establishing PNTR with Vietnam includes the following main contents:

1. Cancel the application of the Jackson – Vanik Act to Vietnam

2. Prescribe procedures for determining unauthorized subsidies;

3. Regulations on consultation responsibilities between the two countries regarding subsidy issues;

4. Provide for the participation and consultation of interested parties in investigations into unauthorized subsidies;

5. Provisions on arbitration and imposition of quotas on textile products determined to have received unauthorized subsidies;

6. The final section of the PNTR bill with Vietnam discusses the concepts and definitions of the terms used in the text of this bill.

This ratification marks the complete normalization of relations between Vietnam and the United States. The decision is completely consistent with the positive developments in the relationship between the two countries. The application of PNTR will create a sustainable foundation for the development of relations between Vietnam and the United States in many areas, especially economics, trade and investment. From now on, Vietnam and the United States will be equal trading partners, applying to each other their commitments within the WTO framework. American businesses are very excited about this event because they will benefit more when doing business in Vietnam, an emerging economy considered to be a

is developing explosively with the fastest growth rate in Southeast Asia. Vietnamese businesses also welcome the approval of PNTR by the United States because after the WTO accession officially takes effect. Vietnam's exports to the United States will no longer be regulated by quotas as in the past years. Accordingly, Vietnamese goods and services entering this market will no longer be subject to discriminatory tariffs as before. With that condition, trade turnover between the two countries will certainly increase rapidly.

2.3. Trade and Investment Framework Agreement (TIFA)

The Trade and Investment Framework Agreement (TIFA) was signed on June 22, 2007, witnessed by President Nguyen Minh Triet and US Secretary of Commerce Carlos Guitierez. The main content of the Agreement revolves around the establishment of a bilateral cooperation council consisting of officials from the two governments to discuss major orientations and policies related to liberalization in the fields of trade and investment. At the same time, the council will also discuss measures to resolve obstacles, difficulties, and recommendations in economic and trade cooperation between the two sides. Issues of great concern such as intellectual property, consideration to recognize Vietnam as a market economy, technical barriers, measures related to animal and plant inspection, etc. will be the main contents discussed.

Although TIFA is only a framework and does not impose any obligations, it opens up more opportunities for cooperation in trade issues, an area that both the United States and Vietnam give top priority to. After signing TIFA, Vietnam will have the opportunity to make recommendations in areas that are still facing many difficulties such as services, banking, telecommunications, etc. , and Vietnamese businesses will have easier access to the market. Through TIFA, businesses will have the opportunity to make comments to the

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