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Double Taxation Treaties as a Catalyst for Trade Developments: A Comparative Study of Vietnam’s Relations with ASEAN and EU Member States

Author

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  • Anh D. Pham

    (Ressearch Institute for Banking, Banking Academy of Vietnam, Hanoi 100000, Vietnam)

  • Ha Pham

    (Faculty of Finance-Banking, Ho Chi Minh City Open University, Ho Chi Minh City 700000, Vietnam)

  • Kim Cuong Ly

    (Faculty of Finance-Banking, Ho Chi Minh City Open University, Ho Chi Minh City 700000, Vietnam)

Abstract

Employing a panel gravity model and Generalized Least Squares (GLS) estimation technique, this study documents the effect of double taxation treaties on the bilateral trade of Vietnam with ASEAN member states, thereby making an extensive comparison with its EU partner countries. Our findings indicate the significant contributions of the tax treaties to Vietnam’s trade performance, not exclusively with ASEAN but also with EU partner countries. Nevertheless, under some circumstances, the conclusion of tax treaties seems ineffective in strengthening export capacity or narrowing trade deficits for Vietnam. This is primarily due to the unidirectional movement of trade associated with tax treaty conditions, viz., imports from the advanced economies into Vietnam. Besides, the role of tax treaties as a dynamism of Vietnam’s export growth remains opaque during recent years.

Suggested Citation

  • Anh D. Pham & Ha Pham & Kim Cuong Ly, 2019. "Double Taxation Treaties as a Catalyst for Trade Developments: A Comparative Study of Vietnam’s Relations with ASEAN and EU Member States," JRFM, MDPI, vol. 12(4), pages 1-16, November.
    • Handle: RePEc:gam:jjrfmx:v:12:y:2019:i:4:p:172-:d:290195
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    References listed on IDEAS

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    2. Pham, Anh D., 2020. "Employees’ Motivation For Creating International Business Venture: The Role Of Perceived Competence And Job Satisfaction," OSF Preprints aksv5, Center for Open Science.
    3. , Aisdl, 2020. "The rise of research on development economics in Vietnam: Analyses and implications for the public and policymakers from SSHPA 2008-2020 dataset," OSF Preprints 9nbyr, Center for Open Science.
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    5. Thuy T. Dang & Anh D. Pham & Diem N. Tran, 2020. "Impact of Monetary Policy on Private Investment: Evidence from Vietnam’s Provincial Data," Economies, MDPI, vol. 8(3), pages 1-15, September.
    6. Ho, Manh-Toan, 2020. "The rise of research on development economics in Vietnam: Analyses and implications for the public and policymakers from SSHPA 2008-2020 dataset," Thesis Commons msy6e, Center for Open Science.
    7. Chia-Lin Chang & Duc Hong Vo, 2020. "Contemporary Issues in Business and Economics in Vietnam and Other Asian Emerging Markets," JRFM, MDPI, vol. 13(6), pages 1-4, May.
    8. Kudła, Janusz & Kopczewska, Katarzyna & Stachowiak-Kudła, Monika, 2023. "Trade, investment and size inequalities between countries and the asymmetry in double taxation agreements," Economic Modelling, Elsevier, vol. 122(C).

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