Garments for export to the European market are manufactured at the factory of SangWoo Vietnam Co., Ltd. in the VSIP Nghe An Industrial Park. (Photo: Vu Sinh/VNA)

The French Government has submitted to Parliament a draft law authorizing the ratification of the EU-Vietnam Investment Protection Agreement (EVIPA), marking a new step in the process of bringing the agreement into force.

According to the Vietnam News Agency correspondent in Paris, the French Government said in a statement that the draft law was presented by the Minister for Europe and Foreign Affairs at the Council of Ministers' meeting on July 27 before being submitted to Parliament for consideration.

EVIPA - an investment protection agreement between the European Union (EU), its member states and Vietnam- was signed in Hanoi on June 30, 2019, to strengthen relations between the EU and Vietnam while enhancing protection for investment activities on both sides.

The agreement is being advanced as the EU and France step up their presence in the Indo-Pacific region and deepen their strategic relations with Vietnam.

EVIPA complements the EU-Vietnam Free Trade Agreement (EVFTA), which entered into force in August 2020, and also contributes to consolidating the Comprehensive Strategic Partnership between France and Vietnam established in October 2024.

According to the French Government, EVIPA establishes a unified legal framework for investment protection between EU member states and Vietnam, safeguards investors' rights and interests, and replaces the traditional investor-state arbitration mechanism with an investment court system for resolving disputes between investors and states. Once it enters into force, the agreement will replace the bilateral Agreement on the Promotion and Protection of Investments signed between France and Vietnam in 1992.

The French Government believes EVIPA will help strengthen the presence of French enterprises in Vietnam in the context of increasingly fierce international competition.

More than 250 French companies are currently operating in Vietnam, employing around 26,000 workers across a wide range of sectors.

EVIPA was signed together with the EVFTA in 2019. However, unlike the EVFTA, the agreement can only enter into force after all EU member states complete their respective domestic ratification procedures in accordance with their national legislation.