Vietnam and Canada held the second round of negotiations on investment encouragement and protection agreement in Ottawa from September 30-October 2, following the first round in Hanoi last year.

The focus of this round was on principles guiding national behaviours, preferences and regulations regarding investment in Vietnam.

The two sides also discussed issues relating to money transfer tax and the resolution of disputes between investors and investment recipients, as well as between the two countries.

The Vietnamese side affirmed that the signing of the investment encouragement and protection agreement will create a legal framework for investment and trade between the two countries, but adding that Canada should consider Vietnam a developing country and thus limiting their requirements within the frame of the World Trade Organisation (WTO) and current international legal ones.

Vietnam also asked Canada to recognise its market economy in order to facilitate the expansion of comprehensive and effective co-operation between the two countries.

The two sides agreed to hold the next round of negotiations on the agreement in Hanoi.

In recent years, trade and investment between Vietnam and Canada have been growing with two-way trade reaching almost US$1 billion in 2007.

Canada’s investment in Vietnam has hit US$6.2 billion, ranking fifth among 82 countries and territories in Vietnam.

Vietnam has signed investment encouragement and protection agreements with 50 countries and territories in the world. (VNA)