1. General Information
Full name: Agreement on the Establishment of the ASEAN-China Free Trade Area (in English: ASEAN – China Free Trade Area Agreement).
Abbreviation: ACFTA (also sometimes referred to as the Framework Agreement on Comprehensive Economic Cooperation between ASEAN and the People’s Republic of China).
Participating countries/members:
- 10 ASEAN member states: Brunei, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam.
- 1 partner: The People’s Republic of China.
Signing and Entry into Force:
The formation of ACFTA was implemented through a series of legal instruments:
Agreement/Instrument | Date of Signing | Date of Entry into Force |
| Framework Agreement on Comprehensive Economic Cooperation | 04/11/2002 | 01/01/2003 |
| Agreement on Trade in Goods | 29/11/2004 | 01/01/2006 |
| Agreement on Trade in Services | 14/01/2007 | 01/07/2007 |
| Agreement on Investment | 15/08/2009 | 01/02/2010 |
Trade in Goods Agreement (ACFTA): Entered into force on 01/01/2006.
Vietnam’s participation: Vietnam signed a Memorandum of Understanding with China on the implementation of Trade in Goods on 18/07/2005.
Negotiation Background and Reasons for Establishing the FTA
Background: Recognising the enormous potential for economic cooperation between ASEAN and China’s rapidly growing economy, both sides signed the Framework Agreement on Comprehensive Economic Cooperation in 2002, laying the foundation for the establishment of a Free Trade Area (FTA).
Reasons for establishment:
- Strengthening Economic Cooperation: To promote and expand economic, trade, and investment relations among the parties.
- Establishing a Large Market: To create a vast common market with more than 1.9 billion people (at the time of establishment), minimise trade barriers, and deepen economic linkages.
- Facilitating Liberalisation: To liberalise trade in goods and services and establish a clear and transparent investment mechanism.
- Narrowing the Development Gap: To provide technical assistance and integration support for ASEAN’s new member states (CLMV).
2. Main Contents of the Agreement
The ACFTA is composed of the Framework Agreement and separate Agreements/Protocols on Goods, Services, and Investment. Due to its “pillar-based” construction, ACFTA does not follow a unified chapter structure like some newer-generation FTAs, but instead consists of the following key instruments:
| Key Instrument | Pillar Content |
|---|---|
| Framework Agreement | Provides the legal foundation and general principles for Comprehensive Economic Cooperation. |
| Agreement on Trade in Goods | Tariff Commitments: Tariff reduction schedules (Normal Track; Sensitive Track). Rules of Origin (ROO): Product criteria (40% RVC or CTH). Customs procedures; TBT; SPS. |
| Agreement on Trade in Services | Commitments on market access for services according to the four modes of supply. |
| Agreement on Investment | Provisions to encourage; protect; and facilitate investment activities. |
| Protocol on Dispute Settlement Mechanism | Establishes mechanisms to resolve disputes arising from the implementation of the Agreement. |
| Protocol on Upgrading ACFTA (ACFTA 3.0 – under negotiation) | Expands coverage to new areas such as Digital Economy; Green Economy; Supply Chain Connectivity; etc. |
3. References & Official Links
Full Text of the FTA
Official ACFTA documents, including the Framework Agreement, Agreements on Goods, Services, Investment, and related Protocols, are usually published on government portals and relevant institutions.
Reference Source: WTO and Integration Center – VCCI
- Provides Vietnamese translations of official documents and amended Protocols (commonly under the ASEAN – China (ACFTA) section).
- Website: https://aecvcci.vn/
Implementation Guides (Handbooks, Websites):
- Vietnam FTA Portal (Ministry of Industry and Trade): Provides summaries of Vietnam’s commitments, tariff reduction schedules, and Rules of Origin. Website: https://vntr.moit.gov.vn/
- Circulars on Rules of Origin (Form E C/O): The Ministry of Industry and Trade issues specific Circulars guiding Rules of Origin under ACFTA (e.g., Circular No. 12/2019/TT-BCT).
- Electronic Certificate of Origin Management System (eCoSys): Provides services for the issuance and verification of electronic C/Os, including Form E (ACFTA).
Website: https://ecosys.gov.vn/ - ASEAN Secretariat: Publishes original English texts and information on ACFTA upgrading negotiations. Website: https://asean.org/
See other FTAs:
