MINISTRY OF JUSTICE MINISTRY OF EDUCATION AND TRAINING HANOI LAW UNIVERSITY HOANG VIET LINH 443035 TRADE SUSTAINABLE DEVELOPMENT (TSD) CHAPTER UNDER EVFTA: LEGAL ANALYSIS AND RECOMMENDATIONS FOR VIETNAM’S IMPLEMENTATION Hanoi - 2023 MINISTRY OF JUSTICE MINISTRY OF EDUCATION AND TRAINING HANOI LAW UNIVERSITY HOANG VIET LINH 443035 TRADE SUSTAINABLE DEVELOPMENT (TSD) CHAPTER UNDER EVFTA: LEGAL ANALYSIS AND RECOMMENDATIONS FOR VIETNAM’S IMPLEMENTATION Major: General Law Nguyen Thi Thuy Duong, MA Hanoi - 2023 DECLARATIONS I hereby state that 1 Hoang Viet Linh - Class 4430 being a candidate Jor the degree of Bachelor of Arts accept the requirernents of the University relating to the retention and use ofBachelor's Graduation Paper deposited in the library Tn terms ofthese conditions, lagree that the origin ofmy paper deposited in the library should be accessible for the purposes of study and research in accordance with the norval conditions established by the librarian for the care, loan or reproduction of the paper. December 7À 2023 Supervisor Student Nguyen Thi Thuy Duong Hoang Viet Linh il ACKNOWLEDGEMENTS I would like to pay my special regards to those who have offered me invaluable assistance in the completion of my graduation thesis. My great reverence is for all the respected lecturers of the Faculty of International Law for their substantial help during my years of formal education at Hanoi Law University. My etemal gratitude to my Supervisor, Ms.
Nguyen Thi Thuy Duong, M., for her unwavering guidance, constructive criticism, and practical suggestions throughout the duration of the thesis. My genuine appreciation to every member of the Thesis Committee for their fair assessment and comprehensive review, as well as favorable feedback for my future research Iam profoundly indebted to my beloved family and close friends for their wise counsel and sympathetic ear throughout the journey. In the absence of the unconditional, unequivocal, and wholehearted support of these individuals, my graduation thesis could not have been accomplished. iii ABSTRACTS Global integration has been one of the key drivers of Vietnam’s remarkable achievements in growth and poverty reduction over the past three decades.
In recent years, the EU and the Vietnamese Government have had extensive and comprehensive cooperation, which can be proven by the signing ofthe EVFTA. The EU and Vietnam both respect and set goals for sustainable development between economic development and environmental and social protection. Therefore, in addition to expanding and promoting free trade between the two sides, the EVFTA also particularly emphasizes sustainable development, ensuring that the EVFTA does not have adverse effects, but on the contrary, will be the foundation to protect the environment and improve issues related to social welfare for employees. Stemming from this orientation, chapter 13 on TSD, one of the most notable chapters, has been developed and included in the agreement by both sides.
It could also bea case that this Chapter isa meeting point between the EU’s priority policy and Vietnam’s internal need to address sustainable development. Vietnam is leading in two-way trade with the EU and can be considered as a gateway for the EU to access Southeast Asia and possibly China. The EU is currently negotiating FTAs with other regional countries, namely Thailand, Malaysia, the Philippines, and Indonesia (after the deadlock in negotiations fora comprehensive EU-ASEAN). All are competing directly with Vietnam over merchandise exports to the EU.
Therefore, Vietnam must optimize the first-mover advantage and opportunity to maintain and promote its existing advantages in trade relations with the EU. iv TABLE OF CONTENTS ACKNOWLEDGEMENTS. x66 a LIST OF TABLES AND FIGURES.!: LIST OF ABBREVIATIONS. Rationale of the study.
Aim of the study. Se tae QuÄ,GJGMUEGONNIGUG2 3. re vere To 4. Scope of the study.
Methodology SAS SHAS sets on 3 6. Organization of the study. INTRODUCTION OF TRADE SUSTAINABLE DEVELOPMENT IN EU TRADE AGREEMENTS. Definition and Conceptualization of Trade Sustainable Development : ặ saps et 5 1.
The Inclusion of TSD in EU's FT As: Rationale and Context. Key Components of TSD Chapters in EU FTAs. 15 L3a:; Labour standards iss:si22sicecssesccchnnsasatusstanetiaunnten 15, 1. Enforcement/Disp ute settlements.
Challenges and new approaches for the implementation of TSD 1. The new EU approach to effective enforcement of TSD Chap ters im § NT 5 3 53⁄2 35 CHAPTER 2. LEGAL ANALYSIS OF TRADE SUSTAINABLE DEVELOPMENT CHAPTER UNDER EU-VIETNAM FREE TRADE 2. Introduction of EU-Vietnam Free Trade Agreeraent.
Why did the EU choose Vietnam to sign theEVFT A? 33 2. Successful negotiations with Vietnam. Provisions of TSD Chapter under EVFTA. Adherence to domestic laws pertaining to sustainable development 42 2.
Commitments to Labour. Commitment to the Enviroruent. Supervision and Dispute Settlement Mechanism. Dispute Settlement Mechanism.
ee seven AO CHAPTER 3. IMPLEMENTATION PRACTICES OF EVFTA’S TSD CHAPTER AND RECOMMENDATIONS FOR VIETNAM FROM EXPERIENCES OF SOUTH KOREA AND NEW ZEALAND. Experiences Korea and New Zealand from thr implementation of the TSD Chapter and some recommendations. Experiences from Korea and New Zealand vee 52 3.
Recommendations to improve State policies and laws. Recommendations on organizational apparatus and 3. Recommendations for policy enforcement. Implementation progress of commitments in TSD Chapter.
Achievements and difficulties in the process of implementing labour commitments. TT 59 3212 ĐIEEDIHES-::st2nbeczcG6oscgsteojeseuosesaseaaeB9 3. Achievements and difficulties in the process of implementing environmental commitments. The establishment of the Domestic Advisory Group Vietnam.: SARA LR Sư) LIST OF TABLES AND FIGURES Figures Figure 1.
Dispute Settlement Machanism in the EU TSD Chapters. Vietnam's GDP and Export to GDP ratio (2000-2020, billion USD, LIST OF ABBREVIATIONS ASEAN : Association of Southeast Asian Nations Comprehensive and Progressive Agreement for CPTTP Trans-Pacific Partnership CSR Corporate Social Responsibility DAG : Domestic Advisory Group ECJ European Court of Justice EESC : European Economic and Social Committee ENV: Nature Education Center EPA : Economic Partnership Agreement EPA Economic Partnership Agreement EU : European Union EUKFTA : EU-Korea Free Trade Agreement EVFTA : EU-Vietnam Free Trade Agreement FTA Free Trade Agreements ILO International Labour Organization IPA : Investment Protection Agreement IWTU Institute of Trade Union Workers MEA Multilateral Environmental Agreement NAFTA : North American Free Trade Agreement OECD : Co-operation and Development SDG Sustainable Development Goal Center for Sustainable Rural Development TEP: Trans-Pacific Partnership Agreement TSD Trade Sustainable Development UN United Nations Vietnam Association of Seafood Exporters and VASEP Producers VCCI Vietnam Chamber of Industry and Commerce VINAFIS Vietnam Fisheries Association VNEA Vietnam Elevator Association WTO World Trade Organisation INTRODUCTION The principal objective of this section is to form the basis of the research paper with a detailed explanation of its rationale, aim, research questions, scope, methodology, and organization. Rationale of the study To strike the balance between economic growth and the protection of the environment, there is an increasing practice that countries have employed Free Trade Agreements (FTAs) to address sustainable development. This is particularly a priority policy of some developed countries using non-commercial commitments in their FTAs asa condition for granting market access to goods from their trading partners, mostly developing countries.
Chapter 13 of the EU-Vietnam Free Trade Agreement (EVFTA) could be a typical example of the EU’s priority policy of advocating sustainable development from its FTA partners. One may argue that Chapter 13 of the EVFTA is a trade-off to gain market access for Vietnamese goods. However, it could also be a case that this Chapter is a meeting point between the EU’s priority policy and Vietnam’s internal need to address sustainable development. The EU has signed an FTA with Singapore in 2018 and another one wth Vietnam in 2019.
These FTAs contain a similar chapter on trade and sustainable development. It could be predicted that the Trade Sustainable Development (TSD) Chapter in the future ASEAN and EU, FTA would share great similarities with the EVFTA and the EU — Singapore FTA. Given the fact that Asia and ASEAN countries still have divergent perspectives on the inclusion of sustainable development provisions in their FTAs, it further suggests that using Chapter 13 of the EVFTA as an example, the sustainable development chapter in the ASEAN- EU FTA could be agreed upon when the EU’s perspective meets with internal needs of ASEAN in addressing sustainable development. This research studies the provisions of the EVFTA on sustainable development.
Firstly, it provides a key background of the TSD Chapter under international documents and in FTAs, the definition and conceptualization of the TSD, and key components ofits EU FTAs. By the way, the research points out the challenges and the new approach to TSD of EU FTAs. Later, it analyzes the framework of the legal of TSD under EVFTA and what Vietnam implement in practice. Then, the study examines Viet Nam’s experiences with other countries that have a TSD Chapter with the EU in FTA.
Based on the assessment this article suggests a possible approach and recommendations for Vietnam's implementation. Aim of the study The chief purpose of the study is to define and clarify the legal regulations of the TSD Chapter under EVFTA and the meaning of enforcement. The study shows the implementation process in Vietnam and how we get experiences through other countries. To be more specific, this study is conducted to seek the answers to the following issues: © Conceptualization of TSD under international documents and in FTAs s Challenges in implementation progress and the new approach to enforcement process © The legal regulations of the TSD Chapter under EVFTA and the meaning of Vietnam's enforcement process.
e The difficulties and achievements do Vietnam have after signing with EU the EVFTA. ¢ Compare implementation progress with other countries to draw effective implementation methods and experiences from FTA partners. Research questions The research will be implemented to resolve the following question: © Question 1: What is trade sustainable development in EU Trade Agreements and the approach of EU to pursue it? ¢ Question 2: What are the regulations and practices for implementing EVFTA's TSD Chapters?? ¢ Question 3: What are the solutions recommended to improve the implementation process for Vietnam after comparing with others FTA partners? 4. Scope of the study The research object of the project is current domestic and international regulations related to trade sustainable development.
Among them, international legal documents include multilateral international treaties in the field of labour and environment. The study primarily concentrates on the legal regulations of the TSD Chapter under EVFTA and how Vietnam puts the TSD Chapter into practice for development. The study also analyzes how Vietnam operates, learns from other countries, and then makes comparisons to clarify where the problems are currently difficult. Besides, the researcher points out what the signing with the EU requires for Vietnam, and what the future development orientation for Vietnam will be.
Methodology The research of the graduation thesis was conducted using analysis and synthesis methods to analyze the regulations of TSD under international documents to introduce theoretical basis which is used to serve as the background knowiedge base for the thesis. The synthesis method, analysis - synthesis, comparison - contrast, induction - deduction, inference - prediction and comparative are applied in all chapters of the graduation thesis to clarify the 3 regulations and how Vietnam and the EU put those provisions into practice. These research methods also help readers more easily recognize and clearly the comparisons between the regulations of FTAs and the way they apply and develop those regulations. Organization of the study The graduation thesis includes 71 pages and 2 images.
In addition to the introduction and conclusion, the content of the graduation thesis is structured into 3 chapters: Chapter 1 is Introduction of Trade Sustainable Development in EU Trade Agreements which lays out the theoretical basis for research Chapter 2? is Legal Analysis of Trade Sustainable Development Chapter under EU-Vietnam Free Trade Agreement which supplies the analysis of TSD Chapter regulations. Chapter 3 is Implementation Practices of EVFTA’s TSD Chapter and Recommendations for Vietnam from Experiences of South Korea and New Zealand which indicates the analytical findings of difficulties and achievements that Vietnam has achieved and leamed from comparing the process and performance with other countries. INTRODUCTION OF TRADE SUSTAINABLE DEVELOPMENT IN EU TRADE AGREEMENTS 1.