[Law Firm In VietNam] Vietnam’s WTO Commitments
Vietnam’s WTO Commitments
After 12 years negotiating with the 149 WTO members, Vietnam finally entered WTO on 2007, after the unanimous approval on the November 7th of 2006.
This accession will totally change Vietnam’s economic face. Indeed, to have membership Vietnam had signed commitments that will bring substantial changes.
Vietnam’s accession to WTO has already helped to continue transforming a collectivist system in a market economy.
Those Commitments contain rules about services and goods, and they already permitted Vietnam to become an active actor in the international business.
Commitments on Goods
Vietnam had planned to slash import taxes and open select industries for foreign investors under its commitments signed to enter into the World Trade Organization.
Specifically, over one-third of all 10,600 tariff lines, mainly those having tax rates of more than 20 percent are subject to tax reduction and removal.
The country has also pledged to remove trading rights discrimination among foreign and domestic enterprises and individuals.
The WTO had asked Vietnam to revise its luxury taxes levied on alcohol and beer.
In the WTO Commitments, the country has pledged to completely open up the goods distribution field to foreigners on Jan. 1, 2009, 19 days later than the Vietnam-U.S. bilateral trade agreement.
Vietnam had planned to open up the field of distributing such key industrial products as steel, cement and fertilizer three years after the accession. It had not opened up the field of distributing petroleum products, pharmaceuticals, books, magazines, video tapes, cigarettes, rice, sugar and precious metals.
Commitments on Services
Regarding the opening up of such services as telecommunications, banking and securities, Vietnam has, basically, made commitments similar to those in the Vietnam-U.S. bilateral trade agreement.
Those Commitments announce that foreign enterprises are allowed to establish commercial presence in Viet Nam in the form of business co-operation contract, joint venture enterprise, 100% foreign-invested enterprise. But eligibility for subsidies may be limited to Vietnamese service suppliers.
So, foreign-invested enterprises shall be permitted by competent authorities of Viet Nam to lease the land to carry out their investment projects
About the entry and temporary stay about foreign persons for a foreign investment, general commitments toward services set up that foreign companies will be allowed to send managers and specialists to Vietnam, but the percentage of Vietnamese managers must be at least 20 percent.
The WTO Commitments opens competitiveness about a lot of services sectors in Vietnam like professional services (lawyers for example), communication and telecommunication services, construction services, environment services, educational services, tourism services, distribution services, financial services.
Those commitments have conditions depending on the type of service in stake, and the foreign investors activities could be limited according to the WTO Commitments.Tags: law firm in vietnam, law vietnam, lawyer vietnam, triminhlaw, Vietnam’s WTO Commitments