LEGAL UPDATES – FEBRUARY 2024 | ECONOMIC NEEDS TEST – INSIGHTS INTO SIGNIFICANT CHANGES IN BARRIERS FOR FOREIGN ENTRY IN RETAIL SECTOR UNDER FREE TRADE AGREEMENTS

Vietnam has been proved to be an attractive retail market for foreign investment. Lifting administrative barriers such as Economic-Needs-Test (ENT) procedures under certain Free Trade Agreements, such as CPTPP and in the future, EVFTA, may help lure more FDI inflows for Vietnam, but concurrently create more intensifying competition in the local market. The Government is likely to be under pressure to look to suitable protectionism in order to support the domestic industries but still comply with the international treaties. Please check out the Legal Updates of RHTLaw Vietnam here for more details of this notable change.