Viet Nam - A Guide for Business and Investment - asean-korea centre
Viet Nam - A Guide for Business and Investment - asean-korea centre
Viet Nam - A Guide for Business and Investment - asean-korea centre
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APPENDIX Imediately 100% (<strong>for</strong> example accountancy).In many cases, the permitted<strong>for</strong>eign ownership is phasedin to reach 100% after a few years(<strong>for</strong> example express delivery courierservices after five years).As is normal in this sector, the effectof the commitments dependsalso on complex relationships withdomestic regulations – <strong>for</strong> examplein the first two years, 100%-<strong>for</strong>eign-ownedarchitectural firms canonly serve <strong>for</strong>eign companies. Thecommitments <strong>and</strong> some of the regulationsare in the “schedule” (lists)of commitments; other in<strong>for</strong>mationon the regulations is in the workingparty report.THE WORKING PARTY REPORT:Report of the Working Party onthe Accession of <strong>Viet</strong>namThe working party report outlinesthe economic context, <strong>and</strong> the institutional<strong>and</strong> legal framework. Itincludes <strong>Viet</strong>nam’s commitments toundertake re<strong>for</strong>ms or to preservere<strong>for</strong>ms that have been introducedin order to secure membership.Among the commitments are:Foreign exchange: <strong>Viet</strong>nam willabide by IMF <strong>and</strong> WTO rulesState enterprises: commercialbusiness (i.e. except <strong>for</strong> supplyingthe government) will be conductedon commercial terms without interferencefrom the government.A number of products are listed assubject to state trading enterprisesbecause of consumption restrictions,<strong>for</strong> cultural <strong>and</strong> moral reasons,or because they are “naturalmonopolies”: tobacco products,petroleum, cultural products suchas newspapers, journals <strong>and</strong> audiovisualmaterials, <strong>and</strong> aircraft.Privatization <strong>and</strong> equitization ofstate enterprises: this will be h<strong>and</strong>ledtransparently, with <strong>Viet</strong>namsupplying annual reports while theprogram lastsPricing <strong>and</strong> price controls: <strong>Viet</strong>namwill comply with WTO agreements<strong>and</strong> notify the WTO of actions ittakes to control prices.Policy-making <strong>and</strong> en<strong>for</strong>cingframework: a number of administrative<strong>and</strong> legal structures havebeen introduced or strengthenedso that WTO provisions are applied,including the possibility of investigation<strong>and</strong> judicial view to dealwith complaints about this.Trading rights (the right to import<strong>and</strong> export): this was a subject oftough negotiations partly becauseof different registration procedures<strong>for</strong> <strong>for</strong>eign <strong>and</strong> domestic traders. Anew law has now harmonized theprocedure <strong>for</strong> both. Among themany additional details are a commitmentthat all <strong>for</strong>eign firms <strong>and</strong>individuals will be able to engage inimporting <strong>and</strong> exporting as importers/exporters“of record” so longas they register, <strong>and</strong> importers willbe able to choose their domesticdistributors.Exercise duties: the different dutiescharged on alcoholic drinks attractedparticular attention in thenegotiations. <strong>Viet</strong>nam has agreedto simplify the structure within 3years by applying a single rate <strong>for</strong>all <strong>for</strong>ms of beer <strong>and</strong> a single rate<strong>for</strong> all spirits containing 20% alcoholor more. This has allayed concernsfrom some countries thatthe previous structure might discriminateagainst imported beersthat have different packaging, oragainst imported spirits with higheralcohol content.Quantitative <strong>and</strong> other restrictions:quotas, bans <strong>and</strong> otherrestrictions will be abolished, includingimport bans on cigarettes,cigars <strong>and</strong> used vehicles, or onlyapplied according to WTO rules.WTO agreements dealing withrules: <strong>Viet</strong>nam will comply withthe Customs Valuation, Rules ofOrigin, Pre-shipment inspection,Anti-dumping, Safeguards, Subsidies,<strong>and</strong> Trade-Related <strong>Investment</strong>Measures agreements, withsome provisions phased in over aperiod.Export restrictions: <strong>Viet</strong>nammaintains export controls on someproducts such as rice, <strong>and</strong> somewood products <strong>and</strong> minerals (toprevent illegal exploitation). It ispledging to apply controls on theseproducts in a way that con<strong>for</strong>ms toWTO agreements.St<strong>and</strong>ards: <strong>Viet</strong>nam will apply theTechnical Barriers to Trade, <strong>and</strong>Sanitary <strong>and</strong> Phytosanitary Measuresagreements without a transitionperiod.Government procurement: <strong>Viet</strong>namwill consider signing the GovernmentProcurement Agreementafter it has become a WTO member.Intellectual property: almost 33pages of the report describe in detailthe administrative <strong>and</strong> legal setup in the country. <strong>Viet</strong>nam will complywith the Trade-Related Aspectsof Intellectual Property Rights(TRIPS) Agreement immediately,without any transition period.(Source: Saigon Times)58 <strong>Viet</strong> <strong>Nam</strong> - A <strong>Guide</strong> <strong>for</strong> <strong>Business</strong> <strong>and</strong> <strong>Investment</strong>
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