In case Vietnam has more than one FTA with the same partner country, which FTA will be followed?
02/10/2023 66Question: In case Vietnam has more than one FTA with the same partner country, which FTA will be followed?
Answer:
Among the 16 FTAs that Vietnam participates in, there are some cases of overlap in FTA partners:
- Vietnam and Japan: 04 FTAs (AJFTA, VJFTA, CPTPP and RCEP)
- Vietnam and Korea: 03 FTAs (AKFTA, VKFTA, and RCEP)
- Vietnam and China: 02 FTAs (ACFTA and RCEP)
- Vietnam and Australia, New Zealand: 03 FTAs (AANZFTA, CPTPP and RCEP)
- Vietnam and Malaysia, Singapore, Brunei: 09 FTAs (01 FTA within ASEAN, 06 FTAs between ASEAN and partner countries, CPTPP and RCEP)
- Vietnam and 9 ASEAN countries: 07 FTAs (01 FTA within ASEAN, 06 FTAs between ASEAN and partner countries)
- Vietnam and the UK: 02 FTAs (CPTPP and UKVFTA)
- Vietnam and Chile: 02 FTAs (VCFTA and CPTPP)
In principle, determining which FTA is effective in this case depends on the regulations of the specific FTAs (for example, the regulations will continue or replace existing FTAs between members).
The FTAs mentioned above all stipulate that these FTAs will take effect at the same time. Thus, Vietnamese businesses can choose which FTA is most beneficial for them (for example, tariff incentives, rules of origin, etc.).
Center for WTO and International Trade