After nearly two years of preparatory talks, Japan and Vietnam are expected to launch full-scale negotiations early next year on an investment protection pact to encourage Japanese companies to invest in the potentially lucrative, communist-ruled Southeast Asian market.
Government sources said Thursday that Japan will compile a draft pact between the two countries as early as next month through consultations among its trade, finance, foreign and other government ministries and agencies.
The Japanese draft will serve as a basis for full-scale negotiations on the bilateral pact, which would, among other things, enshrine the principle of granting most-favored-nation status to Japanese investors in Vietnam. Under the MFN status, Japanese investors would receive equal treatment with their foreign counterparts.