The full text of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership Agreement (CPTPP) and the Free Trade Agreement between Vietnam and European Union (EVFTA) have been made available for public information. A table comparing the existing commitments of Vietnam under WTO Agreement, and EVFTA Agreement for certain service sectors can be downloaded here. The comparison is done by Tran Thuy Tien and Le Minh Thuy.

Notes:

• Vietnam’s specific commitments are contained in two Annexes (Annex I and Annex II) of Chapter 9 of the CPTPP and Chapter 8 and Annex 8-B of the EVFTA Agreement. The list below covers specific commitments in specific sectors or sub-sectors. But there are commitments which apply to all sectors and are not listed in here.

• CPC codes are as used in the Provisional Central Product Classification.

• No limitation means no limits on national treatments in terms of Foreign ownership, forms of investment or other restriction.

• Branching is generally not allowed unless otherwise indicated.

The method of pricing an electricity power purchase agreement (PPA) is regulated under Circular 56 of the Ministry of Industry and Trade (MOIT) dated 19 December 2014, as amended (Circular 56/2014). Circular 56/2014 will govern PPA of (i) power plants which are not multi-target strategic hydroelectric plants (nhà máy thủy điện chiến lược đa mục tiêu), independent BOT power plants, power plants using renewable energy, and (ii) power plants without a separate mechanism issued by the MOIT.

The unit price in general is comprised of the following component:

Unit Price = Fixed Capacity Price + Fixed O&M Price + Fuel Price + Main Fuel Transport Price

Of which:

• Fixed Capacity Price is a fixed number which is pre-determined throughout the entire economic life of the project. Fixed Capacity Price is calculated so that the internal of return of the power plant project will not exceed a regulatory rate (i.e. 10% or 12% depends on each case).                        

• Fixed O&M Price is the fixed operation and maintenance price, which is the aggregate of (i) fixed price for major repair, equipment and service costs; and (ii) fixed price for employment costs. A change in inflation will be reflected in the calculation of the electricity price. However, the change is capped at 2.5% per year which is lower than the normal annual inflation rate in Vietnam.

• Fuel Price is a variable number which is the aggregate of coal price component, DO fuel price component, limestone price component, miscellaneous price component (if any).

• Main Fuel Transport Price is a variable number depending on the contract year transport price (if any).