Current Ratification Status

To date, 18 out of 27 EU member states have ratified the EVIPA. The remaining countries—Austria, Belgium, Cyprus, France, Germany, Ireland, the Netherlands, Poland, and Slovenia—are in various stages of their respective ratification processes. The delay in full ratification has been attributed to complex legislative procedures within these nations, often involving extensive consultations with regional parliamentary bodies. For instance, the Netherlands, a significant European investor in Vietnam, continues to rely on a bilateral investment agreement established in 1994, which complicates the transition to the EVIPA framework.  

Vietnam’s Advocacy for Expedited Ratification

Vietnamese officials have been proactive in urging the remaining EU member states to expedite their ratification processes. In October 2024, during a meeting with Irish Prime Minister Simon Harris in Dublin, General Secretary and President To Lam emphasized the importance of Ireland’s prompt ratification of the EVIPA to bolster mutually beneficial investment ties. Similar appeals have been directed towards other nations, highlighting the agreement’s potential to enhance economic cooperation and protect investors’ rights.  

Anticipated Benefits of the EVIPA

Once fully ratified, the EVIPA is expected to replace existing bilateral investment treaties between Vietnam and individual EU member states, standardizing the investment protection framework. Key provisions of the agreement include:

-  Investment Protection: Assurances against unfair treatment, unlawful expropriation, and discrimination, thereby providing a secure environment for investors.

- Dispute Resolution Mechanism: Establishment of an independent and transparent system for resolving investment disputes, ensuring impartial adjudication.

These measures are designed to foster greater confidence among European investors, potentially leading to increased foreign direct investment (FDI) into Vietnam. As of 2023, EU investments in Vietnam amounted to approximately $28.3 billion across 2,450 projects, with a significant focus on the manufacturing sector. The full implementation of the EVIPA is anticipated to further amplify these figures, contributing to Vietnam’s economic growth and integration into global markets.  

Challenges and Considerations

Despite the prospective benefits, the protracted ratification process poses challenges. The intricate legislative procedures within certain EU member states, coupled with political considerations, have contributed to delays. Additionally, some member states exhibit reluctance towards trade liberalization, preferring to protect domestic industries, which can impede the ratification process. Addressing these challenges requires sustained diplomatic engagement and advocacy to underscore the mutual advantages of the EVIPA.  

Outlook

The EVIPA stands as a pivotal instrument in strengthening EU-Vietnam economic relations. Its full ratification and implementation are poised to provide a comprehensive legal framework that safeguards investments and promotes a stable business environment. Both parties are encouraged to continue collaborative efforts to expedite the ratification process, thereby unlocking the full potential of this landmark agreement.

Keywords: EVIPA, EU-Vietnam investment, investment protection agreement, ratification status, foreign direct investment, dispute resolution mechanism.

Sources for Further Reading

For a visual overview of the EVIPA’s benefits, you may find the following video informative:

EVIPA will benefit both EU and Vietnam