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The roadmap for amending certain legal documents to align with commitments in the CPTPP and EVFTA agreements

Question: 

Regarding the legal documents that need to be amended or enacted promptly to align with the commitments, what is the Government’s plan to ensure timely issuance at the time the agreements take effect?

Answer:

– As a result of the legal review, certain documents falling under the authority of the Government and various ministries and departments need to be effective immediately when the EVFTA agreement comes into effect. Examples include preferential import and export tariffs, government procurement rules, and rules of origin.

– Therefore, to ensure a full legal basis for the implementation of the agreement, the Government has directed ministries and departments to urgently review and, if necessary, draft legal normative documents at the Government level to ensure these documents are issued at the right time when the EVFTA agreement takes effect. In cases where it is necessary, the Government will also consider issuing these documents through expedited procedures.

Question: 

The National Assembly has passed amendments to the Labor Code to align with both the CPTPP and EVFTA agreements. Does the Trade Union Law need to be amended to ensure compliance with the commitments in these agreements?

Answer:

– The provisions of ILO conventions have all been domesticated within the amended Labor Code and will also be further detailed in the implementing guidance documents of the Labor Code, which the government is currently developing.

– Regarding the Trade Union Law, the Vietnam General Confederation of Labor is currently drafting amendments. From the government’s perspective, to ensure consistency and coherence among existing domestic laws, it is necessary to amend the Trade Union Law in alignment with the amendments and additions made to the Labor Code.

Question: 

We request the Government to clarify the roadmap for amending the Insurance Business Law to align with the commitments in the EVFTA.

Answer: 

According to the legal review results, the Insurance Business Law, which was amended in 2010, needs to be further amended and supplemented regarding provisions related to allowing the establishment of branches of foreign reinsurance companies to ensure compliance with the commitments in the EVFTA. This commitment has a transitional period of 3 years from the effective date of the agreement. The Government is currently proposing to submit the amended Insurance Business Law to the National Assembly for consideration during the second session of the XVth National Assembly in 2021. This amendment will also include the obligations under the EVFTA.

Question: 

We request clarification on commitments related to health insurance services. Is it necessary to amend the current laws to implement these commitments?

Answer:

– Vietnam has not made any commitments related to health insurance services. According to the provisions of the Health Insurance Law, health insurance is a mandatory form of insurance applied to the subjects as regulated by the law for the purpose of healthcare and is not for profit, organized and implemented by the state. Therefore, health insurance services are not within the scope of regulation of international commitments in general, including the EVFTA.

– Vietnam has commitments related to health insurance services, specifically:

  • Regarding the mode of supply across borders: We do not commit to health insurance services.
  • Regarding the mode of supply through commercial presence: We commit not to limit, except as provided in the general commitments.

– According to the legal review results, the commitments related to market access for services and investments, including health insurance services, are sufficiently clear and detailed, so they are recommended to be applied directly when the EVFTA takes effect. In addition, the Ministry of Finance has a comprehensive plan to amend the Insurance Business Law, which includes integrating commitments under recent FTAs that Vietnam has participated in, namely the CPTPP and EVFTA. This draft law is expected to be submitted to the National Assembly for consideration during the second session of 2021.

Question: 

The EVFTA stipulates that authorities must compensate patent owners in the pharmaceutical sector for shortened patent exploitation terms due to unreasonable delays in the drug registration process. This commitment is not currently in the existing law. How does the Government plan to amend it?

Answer:

– According to the legal review results, the provision regarding compensation (The choice of the form of “compensation” and the extent of “compensation” is determined by the parties themselves without any mandatory form.) for patent owners in the pharmaceutical sector if the patent term is shortened due to unreasonable delays in the drug circulation permit application process should be added to the Intellectual Property Law of 2005, as amended in 2009.

– However, the Government has planned to combine amendments and additions of EVFTA commitments with those of the CPTPP to incorporate them into the current Intellectual Property Law amendments. It is scheduled to be submitted to the National Assembly for consideration during the second session of 2021. Therefore, while waiting for the law amendment, this provision will be applied directly through a resolution of the National Assembly approving the EVFTA.

Question: 

Please clarify the timeline for amending the Intellectual Property Law to align with the commitments in the EVFTA.

Answer:

– According to the legal review results, some existing provisions in the Intellectual Property Law of 2005, as amended in 2009, need to be amended and supplemented immediately upon the entry into force of the EVFTA. However, the plan is to amend this law to align with the commitments of both the EVFTA and the CPTPP, which will be submitted to the National Assembly for consideration during the second session of 2021 (as there is a 3-year transition period after the EVFTA enters into force). Therefore, to ensure that the law amendment is comprehensive, coherent, and consistent, the Government plans to combine these amendments and additions with the EVFTA commitments for submission to the National Assembly in 2021. Thus, during the period from the entry into force of the EVFTA until the amended Intellectual Property Law of 2005, as amended in 2009, officially takes effect, the EVFTA commitments will be applied directly through a resolution of the National Assembly approving the EVFTA.

– In addition, the commitments expected to be included in the National Assembly’s resolution for direct application during the law amendment period (specifically related to the validity of trademarks, geographical indications certificates, provisions related to industrial designs as a component of complex products, and compensation for patent owners due to delays in drug registration) will be detailed to ensure consistent, clear, and convenient enforcement.

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