Signing of the Protocol Upgrading the ASEAN-China Free Trade Agreement

(Chinhphu.vn) - Within the framework of the 47th ASEAN Summit and related summits, the signing ceremony of the Protocol to upgrade the ASEAN-China Free Trade Agreement (ACFTA 3.0) took place at the Kuala Lumpur Convention Center, Malaysia, witnessed by senior leaders of ASEAN countries and China.

Minister of Industry and Trade Nguyen Hong Dien signed the Protocol on behalf of the Government of Vietnam.

On the morning of October 28, within the framework of the 47th ASEAN Summit and related summits, the signing ceremony of the Protocol to Upgrade the ASEAN-China Free Trade Agreement (ACFTA 3.0) took place at the Kuala Lumpur Convention Center, Malaysia, witnessed by senior leaders of ASEAN countries and China. Prime Minister Pham Minh Chinh led the Vietnamese delegation to attend the signing ceremony. Immediately after the high-level ceremony, Minister of Industry and Trade Nguyen Hong Dien signed the Protocol on behalf of the Vietnamese Government.

ASEAN and China signed the Framework Agreement on Comprehensive Economic Cooperation in November 2002. Based on the Framework Agreement, the two sides continued to negotiate and sign the Agreement on Trade in Goods (effective from July 2005), the Agreement on Trade in Services (effective from July 2007), and the Agreement on Investment (effective from February 2010), thereby establishing the ASEAN-China Free Trade Area, referred to as the ACFTA Agreement.

The ACFTA Agreement has brought many important benefits to Vietnam, ASEAN countries and China, contributing to expanding markets, reducing production costs and promoting business cooperation in the region, creating a foundation for stable and sustainable economic cooperation.

Since its entry into force in 2005, ASEAN-China trade has increased nearly ninefold, reaching US$968 billion in 2024. China has been ASEAN’s largest trading partner since 2009 and is also the third largest foreign investor in the region. For Vietnam alone, China is the leading trading partner, with a total two-way trade turnover of more than US$205 billion in 2024.

The Protocol demonstrates the strong commitment of member countries to the regional economic integration process.

In 2020, in the context of many fluctuations and changes in the global economy, ASEAN and China agreed to upgrade the ACFTA Agreement. The two sides officially launched the upgrade negotiations on November 11, 2022, based on the statement of the ASEAN and Chinese senior leaders at the 25th ASEAN-China Summit held in Cambodia. After 9 official negotiation sessions in 2 years, on October 10, 2024, ASEAN and China announced their agreement to complete the upgrade negotiations at the 27th ASEAN-China Summit held in Laos. Accordingly, the countries will conduct a legal review of the Protocol to be able to implement internal procedures for signing the Protocol.

The Protocol to Upgrade the ACFTA 3.0 Agreement signed on the occasion of the 47th ASEAN Summit and related Summits is of great significance, demonstrating the strong commitment of member countries to the regional economic integration process, promoting the connection of supply chains, and contributing to the economic development of member countries.

On the Vietnamese side, the ACFTA Upgrade Protocol is expected to further strengthen economic cooperation between Vietnam and one of the most important and traditional economic partners in the region, further facilitating trade and investment between the two countries, promoting sustainable development and prosperity for the people.

Anh Tho

Source: https://baochinhphu.vn/ky-nghi-dinh-thu-nang-cap-hiep-dinh-thuong-mai-tu-do-asean-trung-quoc-102251028141307973.htm