Exchange of notes for the entry into force of the Japan-Viet Nam Investment Agreement

November 19, 2004

1. On Friday, November 19, the exchange of notes for the Agreement between Japan and the Socialist Republic of Viet Nam for the Liberalization, Promotion and Protection of Investment (Japan-Viet Nam Investment Agreement) to enter into force was conducted between Mr. Norio Hattori, Ambassador Extraordinary and Plenipotentiary of Japan to Viet Nam, and Mr. Vo Hong Phuc, Minister of Planning and Investment of Viet Nam, in Hanoi. With this exchange, the Japan-Viet Nam Investment Agreement is to enter into force on December 19, 2004.
2. The Japan-Viet Nam Investment Agreement, with some exception, guarantees national treatment and most-favored-nation treatment at the stage of pre-establishment of investment, and prohibits the relevant authorities from imposing requirements to conduct specific measures including transfer of technology and achieving a given level of domestic content (so-called "performance requirement"), that carry impeding effects on investment in order to provide the rules in terms of liberalization, promotion and protection of investment in a comprehensive manner.
3. The Agreement is expected to contribute to the development and stabilization of the investment environment in each country and thereby even further reinforce the bilateral economic relationship of the two countries.