The EVIPA is expected to create a favourable environment for Vietnam to attract further investment in categories where the EU holds strengths.
Workers at a manufacturing factory of electronic products in Vietnam (Photo: VNA)
Legislators adopted a resolution recognising and permitting the enforcement of rulings issued by dispute settlement agencies under the EU-Vietnam Investment Protection Agreement (EVIPA) with 95.3 percent of votes in favour during the ongoing ninth session of the 14th National Assembly in Hanoi on June 18.
The EVIPA, signed between the European Union (EU) and Vietnam on June 30 last year in Hanoi, is expected to create a favourable environment for Vietnam to attract further investment in categories where the EU holds strengths, such as finance, telecommunications, transport, distribution, processing, hi-tech manufacturing, and clean and renewable energy.
According to the Ministry of Planning and Investment, the implementation of the commitments in the EVIPA, which was ratified by the National Assembly earlier this month, will encourage Vietnam to improve its institutions and policies, making the country’s investment and business environment more transparent and welcoming.
The deal will offer opportunities for local enterprises to acquire technologies and skills transferred by partners in the EU, improving the competitiveness of the national economy, the ministry said, adding that Vietnam should complete early warning mechanisms to address investment disputes.