This can be done in two ways: first, through more diversified supply partners through larger trading networks and imports of cheaper intermediate goods from partner countries, which should increase the competitiveness of Vietnamese exports. Vietnam is a member of the Association of Southeast Asian Nations (ASEAN) and a member of the ASEAN Free Trade Area (AFTA). As part of the AFTA, ASEAN members (including Brunei, the Philippines, Indonesia, Laos, Myanmar, Malaysia, Singapore, Thailand and Cambodia) are committed to making the region a competitive trading area. Along with the ASEAN countries, Vietnam has also signed trade pacts with China, the Republic of Korea, Australia and New Zealand, India, Chile and Japan. It signed a bilateral trade agreement with Korea in 2015 and a trade agreement with the Russian-led customs union bloc. Vietnam has concluded all bilateral negotiations on the Trans-Pacific Partnership (TPP) free trade agreement but has not yet ratified the agreement. In February 2016, Vietnam concluded negotiations for a free trade agreement with the EU and is awaiting ratification by the Council of Ministers. Vietnam is currently negotiating a free trade agreement with EFTA countries (Norway, Iceland, Liechtenstein and Switzerland). Vietnam, which became the 150th member of the WTO in 2007, promised, after its accession, to fully comply with WTO agreements on customs assessment, technical barriers to trade (OTC) and health and plant health measures (SPS).
The United States and Vietnam concluded a bilateral trade agreement (BTA) in 2000 that came into force in 2001. Vietnam Briefing is produced by Dezan Shira – Associates. The company supports foreign investors throughout Asia from branches around the world, including in Hanoi and Ho Chi Minh City. Readers can write to firstname.lastname@example.org to get more help in their activities in Vietnam. Free trade agreements may also have additional drawbacks. Such agreements are expected to create aggressive competition from foreign competitors with local firms, particularly in the agricultural sector, including meat and dairy products from the EU, Australia and Canada.