RESTRICTEDWORLD TRADE
ORGANIZATIONWT/ACC/VNM/5
24 August 1998
(98-3289)
Working Party on the
Accession of VietnamOriginal:  English
ACCESSION OF VIETNAM
Information on the Existing Regime in the Area of Services
The Government of the Socialist Republic of Vietnam has submitted the following
information on the existing regime in the area of services in the format of the Secretariat's Technical
Note (document WT/ACC/5), with the request that it be circulated to members of the Working Party.
_______________WT/ACC/VNM/5
Page 2(1)  Cross-border supply; (2)  Consumption abroad: (3)  Commercial presence; (4)  Presence of natural persons
Market Access National Treatment
Limitations Relevant Regulations Limitations Relevant Regulations
I. HORIZONTAL MEASURES
All sectors and sub-sectors (1) N.A.*
(2) N.A.*(1) N.A.*
(2) N.A.*
(3) Commercial presence of
foreign services suppliers in
Vietnam is allowed in the
following forms (except otherwiseregulated  by law):
- business co-operation
contracts;
- representative offices;
- joint venture enterprises;- 100% foreign capital
enterprises (wholly
foreign owned
enterprises).(3) Foreign services
suppliers in Vietnam must
comply with provisions of
legislation which may beexclusively applicable to them,
including taxation, certain
service prices, being granted
the right for leasing land but
not using land-use rights forcapital contribution, being
granted, ownership of real
estate (except land) for duration
specified in the licence.
Representative offices of foreign
services suppliers shall not engage
in any profit-making activities in
Vietnam
Foreign capital contribution of ajoint venture enterprise shall not
be less than 30% of the total legal
capital except in cases stipulatedby the Government. The duration
of an enterprise with foreign
invested capital and the duration
of a  business co-operation
contract shall be determined bythe Government and stated in the
investment licence, but shall not
exceed 50 years.WT/ACC/VNM/5
Page 3(1)  Cross-border supply; (2)  Consumption abroad: (3)  Commercial presence; (4)  Presence of natural persons
Market Access National Treatment
Limitations Relevant Regulations Limitations Relevant Regulations
Pursuant to regulations made by
the Standing Committee of the
National Assembly, the
Government may, on a project by
project basis, grant a longer
duration but the maximumduration shall not exceed
70 years.
(4) Foreign employers and
employees must comply with theprovisions of the laws on labour,
foreign investment, immigration
and other relevant legislation.
The initial term of employment of
a foreign employee shall notexceed a maximum of three years.
Foreigners working in Vietnam
must satisfy the following
conditions:(4) Foreign employees
working in Vietnam:
- are bound to apply for
effective working permit;
- are bound to pay income
tax at the special rates;
and
- shall not be granted the
right to real estate
ownership.
- to be 18 years of age or older
and healthy in accordance
with the job requirements;
- to have professional
expertise or work skills
which  Vietnamese cannotsatisfy;Upon being remitted abroad or
retained outside Vietnam,
profits from investment in
Vietnam shall be subject to
withholding tax.
- to have no criminal
conviction or civil record in
respect of a breach of
national security as
stipulated by Vietnamese
laws; must have noconviction or civil record in
respect of any other crime or
must not currently be subject
to criminal prosecution orWT/ACC/VNM/5
Page 4(1)  Cross-border supply; (2)  Consumption abroad: (3)  Commercial presence; (4)  Presence of natural persons
Market Access National Treatment
Limitations Relevant Regulations Limitations Relevant Regulations
any criminal sentence which
has not yet been discharged
in accordance with
Vietnamese and foreign
laws.
The general director or the firstdeputy general director of a joint
venture enterprise shall be a
Vietnamese citizen. Enterprises
with foreign owned capital andparties to a business co-operation
contract shall have the right to
recruit and employ labour in
accordance with its business
requirements with preferencebeing given to Vietnamese
citizens. Foreigners shall only be
recruited for jobs which require a
level of technical and
management expertise whichVietnamese citizens cannot satisfy
and training of Vietnamese
citizens as replacements must be
undertaken.
II. SPECIFIC SERVICE SECTOR OR SUB-SECTOR
1. BUSINESS SERVICES
A. Professional
Services
(a) Legal services
(CPC 861)(1) NA*
(2) NA*
3)
(a) Foreign law firms may be
present in Vietnam solely in formof branch.Decree No. 42/CP dated
8/7/1995 Promulgating the
Regulation on Legal
Consultancy Practices of
Foreign Law Firms inVietnam.(1) NA
*
(2) NA*
(3) Foreign law firm
branches are not permitted to
employ Vietnamese lawyers fortheir offices.WT/ACC/VNM/5
Page 5(1)  Cross-border supply; (2)  Consumption abroad: (3)  Commercial presence; (4)  Presence of natural persons
Market Access National Treatment
Limitations Relevant Regulations Limitations Relevant Regulations
The licence duration of  a foreign
law firm branch is five years,
commencing from the licence
issuing date  and may be extended
for a period of not more than 3
years per one extension.
Each foreign law firm are allowedto set up maximum 2 branches in
Vietnam.
(b) The branch must have at
least 1 foreign lawyer besides the
chief of the branch.
(c) A foreign law firm wishingto provide legal consultancy
services in Vietnam must satisfythe following conditions:
- to prove access to and
relations with  foreign clients
doing  business or investment
activities in Vietnam;
- to have a good reputation in
providing legal consultancy
services;
- to be of goodwill towards the
State of Vietnam;
- to possess an operational plan,
and undertaking to fulfil its
obligations pursuant to the
regulations and laws of
Vietnam;
- to possess a physical
establishment and facilitiesnecessary for its operations.
(4) Foreign lawyers of foreignlaw firm branch in Vietnam must
satisfy the following conditions:(4) N.A.
*WT/ACC/VNM/5
Page 6(1)  Cross-border supply; (2)  Consumption abroad: (3)  Commercial presence; (4)  Presence of natural persons
Market Access National Treatment
Limitations Relevant Regulations Limitations Relevant Regulations
- to have previous experience
in legal consultancy services
for 5 or more years in a
foreign law firm;
- to  be not subject to criminal
prosecution, serving asentence, or have a current
criminal conviction;
- to be of goodwill towards the
State of Vietnam.
Not allowed to provide legal
consultancy  services as a natural
person.
(b) Accounting,
auditing andbookkeeping
services (CPC 862)
(c) Taxation services(1) N.A.
*
(2) N.A.*
(3) Foreign accounting firms
are permitted to establish joint
venture enterprises and 100%
foreign-owned capital enterprises.Decree No. 07/CP dated
29/01/1994 of theGovernment.(1) N.A.
*
(2) N.A.*
(3) N.A.*
(CPC 863) 100% foreign-owned auditing
firms are only permitted to
provide services for firms with
foreign owned capital in Vietnam,
projects invested by foreigncountries and projects funded by
foreign capital.
Only up to 5 firms with foreign
invested capital are licensed. This
number will be reviewed in theyear 2000.WT/ACC/VNM/5
Page 7(1)  Cross-border supply; (2)  Consumption abroad: (3)  Commercial presence; (4)  Presence of natural persons
Market Access National Treatment
Limitations Relevant Regulations Limitations Relevant Regulations
(4) A foreign auditor must be
hold his national auditing
certificate recognized by the
Vietnamese Ministry of Finance.
Foreign auditors have to register
in the List of Foreign Auditorswhich is under the Ministry of
Finance’s management.(4) N.A.
*
The foreign individual auditor is
not allowed  to provide auditingservices as the natural person, he
has to register to provide auditing
services in a legally established
auditing firms in Vietnam.
(d) Architectural
services
(CPC 8671(1) N.A.*
(2) N.A.*
(3) Foreign architectural
designers are allowed to provide
architectural services in Vietnam
after gaining award of contract orbeing selected for contract
implementation for each
construction project.Circular  No. 01BXD/CSXD
dated 15/4/1997 by the
Ministry of Construction on
Management of Projects
with Foreign Investment and
the Foreign ConstructionTenders in Vietnam;(1) N.A.
*
(2) N.A.*
(3) Project architectural
plans drawn up by a foreign
architectural services supplier
must be examined by at leastone Vietnamese architect in
chief to ensure the conformity
of the plan with current
regulations and standards of
construction in Vietnam.Decision
No. 91/BXD/CSXD dated
16/4/1993 by the Ministry of
Construction on Regulations
of Professional Architect
(4) A foreigner willing to
undertake professional
architectural designs for
construction project must be apermanent resident of Vietnam
and work in a legally established
architectural organization in
Vietnam.Decision
No. 91/BXD/CSXD dated
16/4/1993 by the Ministry of
Construction on Regulationsof Professional Architect(4) N.A.
*, except as
indicated in horizontal
measures.WT/ACC/VNM/5
Page 8(1)  Cross-border supply; (2)  Consumption abroad: (3)  Commercial presence; (4)  Presence of natural persons
Market Access National Treatment
Limitations Relevant Regulations Limitations Relevant Regulations
Not allowed to provide
architectural services as a natural
person.
(e) Engineering
services(CPC 8672)(1) N.A.
*
(2) N.A.*
(3) Foreign service suppliers
can provide services after winning
a contract award or being selected
as a contract implementation and
must apply for a permit on acase-by-case basis to implement
the project in Vietnam.Circular
No. 01 BXD/CSXD dated15/4/1997 by the Ministry of
Construction on
Management of Projects
with Foreign Investment and
the Foreign ConstructionTenders in Vietnam(1) N.A.
*
(2) N.A.*
(3) The permit is granted
for each project only.
Being not allowed to provide
services in relation to technical
surveys for design of urban andrural plans, or sectoral master
plan.Decision
No. 91/BXD-CSXD dated16/4/1993 by the Ministry of
Construction on Regulations
of Professional Architect
(f) Integrated
engineering
services
(CPC 8673)Foreign engineering consulting
firms are not allowed to provide
services in relation to topography,
geological exploration and
meteorological andhydrographical surveys, except
the cases which Vietnam is not
capable to carry out and formally
request for foreign service .
(4) A foreigner willing toprovide these services must be a
permanent resident of Vietnamand work in a legally established
architectural organization in
Vietnam.
Not allowed to provide these
services as a natural person.(4) N.A.
* except as
indicated in horizontal
measures.WT/ACC/VNM/5
Page 9(1)  Cross-border supply; (2)  Consumption abroad: (3)  Commercial presence; (4)  Presence of natural persons
Market Access National Treatment
Limitations Relevant Regulations Limitations Relevant Regulations
(g) Urban planning
(CPC 8674)(1) N.A.*
(2) N.A.*(1) N.A.*
(2) N.A.*
(3) Foreign service suppliers
can provide services after winning
a contract award or being selectedas a contract implementation and
must apply for a permit on a
case-by-case basis to implement
the project in Vietnam.(3) Only granted the
licence for each project.
Being not allowed to provideservices in relation to technical
surveys for design of urban and
rural plans, or sectoral master
plan.
Foreign engineering consulting
firms are not allowed to provide
services in relation to topography,
geological exploration and
meteorological and
hydrographical surveys, exceptthe cases which Vietnam is not
capable to carry out and formally
request for foreign service.
(4) A foreigner willing toprovide these services must be apermanent resident of Vietnam
and work in a legally established
architectural organization in
Vietnam.
Individual natural person is notallowed to provide these services.(4) N.A.
* except as
indicated in horizontalmeasures
D. Real Estate Services
(a) Involving own or
leased property(1) N.A.*
(2) N.A.*Decree No. 56/CP; (1) N.A.*
(2) N.A.*
(CPC 821)
(b) On a fee or contract
basis (CPC 822)(3) Foreign services suppliers
are allowed to provide these
services in the form of joint
venture to construct the office
buildings, apartments for rent.Decree No. 60/CP;
Decree No. 193/CP.(3) Only domestic
economic organizations may be
entitled to the use of land by
the State and transferred land
use right for residential andbuilding purposes.WT/ACC/VNM/5
Page 10(1)  Cross-border supply; (2)  Consumption abroad: (3)  Commercial presence; (4)  Presence of natural persons
Market Access National Treatment
Limitations Relevant Regulations Limitations Relevant Regulations
Only Vietnamese organizations
and individuals possessing
houses and having  land use
right for residential purpose are
permitted to reside and transfer
land use right.
(4) N.A.* except as indicated
in horizontal measures(4) N.A.*
2 COMMUNICATION SERVICES
(CPC 7511, 7512, 7521) (1) Not permitted
(2) N.A.*(1) Not permitted(2) N.A.
*
(3) Foreign service supplierswill be permitted to establish
representative offices and enterinto the business co-operation
contracts with Vietnamese post
and telecommunications service
suppliers.(3) N.A.
*
Foreign capital contribution shall
not exceed 49% of the total
registered capital of the businesscooperation contract project.
(4) N.A.* except as indicated
in horizontal measures(4) N.A.*
3. CONSTRUCTION AND RELATED ENGINEERING SERVICES
(CPC 510) (1) N.A.*
(2) N.A.*Circular No. 01/BXD-CSXD. (1) N.A.*
(2) N.A.*
(3) Foreign construction
subcontractors are  allowed only
to provide services in Vietnam
after winning the bid or being
chosen in a particular project. Alicence for implementing the
project in Vietnam is requested.(3) N.A.
*WT/ACC/VNM/5
Page 11(1)  Cross-border supply; (2)  Consumption abroad: (3)  Commercial presence; (4)  Presence of natural persons
Market Access National Treatment
Limitations Relevant Regulations Limitations Relevant Regulations
(4) N.A.* except as indicated
in horizontal measures(4) N.A.*
7. FINANCIAL SERVICES
A. All Insurance and
Insurance-Related
Services
(CPC 812)
including:(1) Foreign service suppliers
may provide reinsurance services,
import-export goods insurance
services, insurance brokingservices and reinsurance broking
services.Decree No. 100/CP dated
18/12/93 on Insurance
Business;(1) A minimum share of
the  reinsurance is to be sold to
the National Reinsurance
Corporation.
- Life insurance
services(2) Being limited in the share
in each  reinsurance operation.(2) N.A.*
(CPC 8121)
- Non-life insurance
services
(CPC 8129)Vietnamese individuals and
organizations are not allowed to
purchase insurance abroad forrisks arise in Vietnam except the
content of the above mentioned
point (1). For example, the risks
relating to estate located in
Vietnam.Circular No. 78/1998/TT-
BTC dated 9/6/198 on
Re-Insurance Activities.
- Reinsurance and
retrocessionservicesForeigners working in Vietnam
are allowed to purchase insuranceabroad
(CPC 81299)
- Services auxiliary
to insuranceincluding
insurance broking
and agent services
(CPC 8140)(3) Foreign insurance
suppliers are permitted to be
present in Vietnam in the forms
of:- joint-venture insurance
company;
- insurance company with
100% foreign owned
capital;(3) The requirements  of
legal capital for foreign wholly
owned companies are higher
than that of domestic andjoint-venture enterprises.
The details are as follows:
-j o i n t - v e n t u r e
enterprises: US$2 mil.;WT/ACC/VNM/5
Page 12(1)  Cross-border supply; (2)  Consumption abroad: (3)  Commercial presence; (4)  Presence of natural persons
Market Access National Treatment
Limitations Relevant Regulations Limitations Relevant Regulations
- representative offices.
Foreign invested insurance
companies are not allowed to
provide compulsory insurance
services.- branch of foreign
insurance organization
and insurance company
with 100% foreign
invested capital:
US$5mil.;
Compulsory insurance servicesinclude:
- all risks insurance on
construction andinstallation;
- civil responsibility
insurance  for motor
vehicle owners (up to the
year 2000, insuranceagainst fire is expected to
be listed as  a compulsory
insurance);- insurance broking
joint-venture:
US$100,000;
- branch of insurance
broking company with
100% foreign invested
capital: US$300,000.
Foreign capital contribution in ainsurance joint-venture shall notexceed 50% of the enterprise's
registered capital;
Foreign invested insurance
enterprises may be subject to
limitation  on scope of client andoperation;
Limitations on re-insurance:
At least 20% the re-insurance
value must be ceded to National
Re-insurance Corporation.
(4) Foreign natural personsare not allowed to conductinsurance business under any
form (including insurance agent)
in Vietnam.(4) N.A.
*WT/ACC/VNM/5
Page 13(1)  Cross-border supply; (2)  Consumption abroad: (3)  Commercial presence; (4)  Presence of natural persons
Market Access National Treatment
Limitations Relevant Regulations Limitations Relevant Regulations
B. Banking and Other
Financial Services(1) State-owned enterprises
satisfying the following
conditions are allowed to receive
foreign loans in principle of
self-responsible for borrowing
and  repayment:Government Decree
No. 58/CP dated 30/8/93
Regulations on management
of borrowing and serving
foreign loans;(1) N.A.*
- having profitable and
sound operations;
- having economic
feasibility study approvedby ministry or province;
- terms and conditions of
the loans to be approved
by  the Ministry of
Finance and the StateBank;
- having the final approval
of the guarantor if a
guarantor is requested.Regulations on guarantee
and re-guarantee for foreign
loans (issued with Decision
No. 23-QD-NH14 of theGovernor of the State Bank
dated 21/2/1994;
Non-State owned enterprises may
receive loans in the principle of
self-responsible for borrowing
and repayment; having  guarantee
acceptance of a guarantor in case
the guarantee is requiredCommercial banks satisfying
economic needs, having projects
to call for foreign loans will apply
the ceiling borrowing approved by
the State Bank.Decision No. 228/QD-NH5
dated 2/12/1993 of the
Governor of the State Bank
on issuing regulations on
raising share capital from
foreign shareholders byVietnamese credit
institutions;WT/ACC/VNM/5
Page 14(1)  Cross-border supply; (2)  Consumption abroad: (3)  Commercial presence; (4)  Presence of natural persons
Market Access National Treatment
Limitations Relevant Regulations Limitations Relevant Regulations
(2) Vietnamese enterprises
can open and remit money in an
account abroad after  approved by
the State Bank
Foreign invested enterprises can
open an account abroad to receiveforeign loans remittance.Law on Foreign Investment
in Vietnam;(2) N.A.
*
(3) Credit institutions are
allowed to be present in Vietnam
in the following forms:- representative office,
- branch of foreign bank,
- joint-venture bank,
- joint-venture finance
leasing companies,
- finance leasing companies
with 100% foreign
invested capital.Decree No. 189-HDBT of
the Council of Ministers
dated 15 June 1991 onForeign Banks.(3) N.A.
*
According to the economic
development requirements ofVietnam, the State Bank
Governor decides on licensing
foreign credit organizations
operating in Vietnam.
The licence duration of a branchof foreign bank or a joint-venture
bank in Vietnam is not more than
20 years.
If required, the licence durationmay be extended by the State
Bank’s approval. The extended
duration can not be  more thanthat of the initial licence.WT/ACC/VNM/5
Page 15(1)  Cross-border supply; (2)  Consumption abroad: (3)  Commercial presence; (4)  Presence of natural persons
Market Access National Treatment
Limitations Relevant Regulations Limitations Relevant Regulations
(a) Foreign credit institution
meeting the following conditions
are allowed to open representative
office in Vietnam:
- being established legally
and having licencegranted by the competent
body of the country of
origin;
- has been operating at least
5 years with sound
reputation.
(b) The following conditionsmust be satisfied by the foreign
bank who wish to establish itsbranch in Vietnam:
- coping with the economic
development
requirements  of Vietnam;
- the foreign bank must
undertake in writing to be
liable for all obligations
and commitments of its
branch in Vietnam;
the paid-up registeredcapital shall be no less
than US$15million;
- the foreign bank must
have been operating in the
country of origin  no less
than 5 years and with
sound reputation.WT/ACC/VNM/5
Page 16(1)  Cross-border supply; (2)  Consumption abroad: (3)  Commercial presence; (4)  Presence of natural persons
Market Access National Treatment
Limitations Relevant Regulations Limitations Relevant Regulations
(c) To enter into
joint-venture with Vietnamese
bank the foreign bank must satisfy
the following conditions:
- coping with the economic
developmentrequirements  of Vietnam;
- the prescribed capital of a
joint-venture bank shall
be no less than
US$10million;
- has feasible business plan
for the first 3 years.
(d) Foreign finance leasingcompanies must satisfy thefollowing conditions to register
business operations in Vietnam:
The conditions
- must be a sound
reputation company andhas three consecutive
years of profitable
business, established
independent finance
leasing company inaccordance with the laws
of Vietnam;
- the legal capital of the
joint-venture and 100%
foreign capital finance
leasing companies shall
be no less thanUS$5million.WT/ACC/VNM/5
Page 17(1)  Cross-border supply; (2)  Consumption abroad: (3)  Commercial presence; (4)  Presence of natural persons
Market Access National Treatment
Limitations Relevant Regulations Limitations Relevant Regulations
Basing on the needs of economic
development and domestic
monetary market development,
the Governor of the State Bank
shall decide on the establishment
of financing and banking servicecompanies in Vietnam.
The proportion of share capital of
foreign shareholders:
- the capital contribution of
a single foreign legal
entity or one natural
person is 10% maximum;
- the total capital
contribution of foreignshareholders is maximum
of 30% maximum;
- in the case of inheritance
or after 5 years from the
date of capitalcontribution the
shareholder shall have the
right to transfer their
shares;WT/ACC/VNM/5
Page 18(1)  Cross-border supply; (2)  Consumption abroad: (3)  Commercial presence; (4)  Presence of natural persons
Market Access National Treatment
Limitations Relevant Regulations Limitations Relevant Regulations
- foreign shareholders shall
be only permitted  in the
Management Board with
the maximum number of
persons equal to the
proportion of sharecontribution of total
foreign shareholders and
charter capital of the
credit organization, but
shall not have the right to
hold the post of Chairman
of Management Board.
- natural person, who is a
foreign shareholder is notpermitted at the same
time  be a representative
of a foreign juridical
person in Vietnamese
credit organizations;
- natural person, who is
foreign shareholder or
representative of a foreign
juridical person are not
allowed to participate inManagement Board of
more than two
Vietnamese credit
organizations.
(4) N.A.*, except as indicated
in horizontal measures.(4) N.A.*WT/ACC/VNM/5
Page 19(1)  Cross-border supply; (2)  Consumption abroad: (3)  Commercial presence; (4)  Presence of natural persons
Market Access National Treatment
Limitations Relevant Regulations Limitations Relevant Regulations
(a) Deposit acceptance
services
(CPC 81115 -
81119)(1) N.A.*
(2) Vietnamese enterprises
can open and remit money in an
account abroad after  approved by
the State Bank.
Foreign invested enterprises canopen an account abroad to receive
foreign loans remittance.Decision  No. 300/QD- NH5
dated 13/11/1996 issued by
the Governor of State Bank.(1) N.A.
*
(2) N.A.*
(3) Foreign service suppliers
can provide services in thefollowing forms:
- foreign bank branches,(3) Limitations on deposit
acceptance of the joint-venturebank and foreign bank
branches:
- joint-venture banks. The acceptance of deposits
without term in Vietnamese
Dong from Vietnameseindividuals and Vietnamese
organizations having no credit
transaction with the banks shall
not exceed 25% of total capital
paid up by Bank of originalcountry to it’s branch or of
charter capital of joint-venture
banks
(4) N.A.* except as indicated
in horizontal measures(4) N.A.* except as
indicated in horizontalmeasures
(b) Lending of all
types services
 (CPC 8113)(1) N.A.*
(2) N.A.*
(3) Foreign suppliers are
allowed to be present in
form of branch or
joint-venture bank underthe following conditions:Governmental Decree
No. 58/CP dated 30/8/1993
on regulation of foreign
borrows and payment of
foreign loans(1) N.A.
*
(2) N.A.*
(3) Branch of foreign bank
and joint-venture bank:
- are not allowed to
accept land use right asmortgage;Land LawWT/ACC/VNM/5
Page 20(1)  Cross-border supply; (2)  Consumption abroad: (3)  Commercial presence; (4)  Presence of natural persons
Market Access National Treatment
Limitations Relevant Regulations Limitations Relevant Regulations
- the total outstanding
extended to one customer
must be less than 10% of
the appropriated capital of
the supplier (or registered
capital) and reserve fund;Circular No  07/TT-NH7
dated 26/3/1994 on
borrowing to pay foreign
loans of enterprises- are allowed to
guarantee only foreign
businesses which
attending tender of
projects in Vietnam
and to grant loans toDecision
No. 217/QDD-NH1 dated
17/8/1996 on regulations on
mortgage and guarantee
bank loans.
- the total outstanding
extended to the 10 biggest
customers must be less
than 30% of grand totaloutstanding extended by
the supplier;
- the total value of capital
mobilized in term of
Vietnam Dong shall notexceed the ratio stipulated
by the Governor of the
State Bank.Decree No 189/HDBT dated
15/6/1991 on operation of
foreign bank and
joint-venture.those tender-winning
foreign business for
implementing  the
projects.
Detailed limitations to be
specified in the licence.
(4) N.A.*, except as indicated
in the horizontal measures(4) N.A.*, except as
indicated in the horizontalmeasures
(c) Finance leasing
services
(CPC 8112)(1) N.A.*
(2) N.A.*
(3) Foreign suppliers are
allowed to be  present in forms ofhorizontal sectoral (banking)
services:Decree No. 64/CP dated
9/10/1995 on Promulgating
Temporary Regulations on
Operation and Functions ofthe Finance Leasing
Companies in Vietnam.(1) N.A.
*
(2) N.A.*
(3) N.A.*WT/ACC/VNM/5
Page 21(1)  Cross-border supply; (2)  Consumption abroad: (3)  Commercial presence; (4)  Presence of natural persons
Market Access National Treatment
Limitations Relevant Regulations Limitations Relevant Regulations
- the total value of leased
assets shall not exceed
30% of self-mobilized
capital of the leasing
company. In case such
value exceeds this ratio, aState Bank’s permit in
written form is required;
- lease time of a leased
asset must be at least
equal to 60% of required
full depreciated time of
the leased assetCircular No. 03/TT-NH5
dated 9/2/1996 of the State
Bank of Vietnam on
Providing Guidelines on
Implementation of
Temporary Regulations onOperation and Functions of
the Finance Leasing
Company in Vietnam.
- it shall not utilise more
than 25% of it’s statutorycapital for the purpose of
procurement for leasing
company’s usage;
- it’s total borrowing
capital shall not exceed20 times of it’s own
capital;
- finance leasing company
shall not be allowed to
take deposits in any form.
(4) N.A.*, except as indicated
in the horizontal measures(4) N.A.*
(d) Payment and
money
transmission
services
(CPC 81339**)(1) N.A.*
(2) N.A.*
(3) Foreign suppliers are
allowed to be  present in forms of
horizontal sectoral (banking)services.(1) N.A.
*
(2) N.A.*
(3) N.A.*
(4) N.A.*(4) N.A.*WT/ACC/VNM/5
Page 22(1)  Cross-border supply; (2)  Consumption abroad: (3)  Commercial presence; (4)  Presence of natural persons
Market Access National Treatment
Limitations Relevant Regulations Limitations Relevant Regulations
(e) Guarantee and
commitments
services
(CPC 81199**)(1) N.A.*
(2) N.A.*
(3) A bank providing
guarantee services shall establish
Guarantee and Re-guarantee
Fund:Decision No. 23-QD/NH14
dated 21/2/1994 of
regulation on guarantee,
re-guarantee to borrow
foreign capital(1) N.A.*
(2) N.A.*
(3) N.A.*
- the total guarantees and
re-guarantees must not
exceed 20 times of the
Fund's capital.
- the total guarantees and
re-guarantees for one
customer shall not exceed
10% of total value of
guarantees andre-guarantees. Total value
of guarantees of the 10
biggest customers must
not exceed 30% of total
value of assets guaranteedby the bank.
Prior to providing guarantee,re-guarantee services of 10%
more  than the total allowed value
of guarantees, re-guarantees, theFund has to submit its request to
the State Bank for approval.
(4) N.A.*, except as indicated
in horizontal measures.(4) N.A.*
(g) Trading for own
account or for
account ofcustomers
(CPC 81333 +
81339**)(1) N.A.
*
(2) N.A.*
(3) Foreign bank branch and
joint venture bank are allowed to
do business within it’s licence
terms:(1) N.A.*
(2) N.A.*
(3) N.A.*WT/ACC/VNM/5
Page 23(1)  Cross-border supply; (2)  Consumption abroad: (3)  Commercial presence; (4)  Presence of natural persons
Market Access National Treatment
Limitations Relevant Regulations Limitations Relevant Regulations
(a) Buying and selling
foreign currency;
(b) Participating in
interbanking foreign currency
market:- total value of foreign
currency for single
transaction in the market
must be US$50,000.00
minimum,
- exchange rate to be
determined by the State
Bank.
(c) Applying exchange rate
and interest rateinstruments such as
SWAPS and FORWARD:
the commercial banks are
allowed to carry out
FORWARD transactionon the inter-banking
market.
(d) Participating in Bill
markets, including Bill
market for banks andbetween banks and
customers:
- issued, transferable and
valid bonds to be
transacted in the Bill
purchasing market:WT/ACC/VNM/5
Page 24(1)  Cross-border supply; (2)  Consumption abroad: (3)  Commercial presence; (4)  Presence of natural persons
Market Access National Treatment
Limitations Relevant Regulations Limitations Relevant Regulations
+ treasury bill,
+ promissory notes
issued by
commercial
banks under
permission of theState Bank,
+ State Bank bill;
- participating in bond
market undersupply-demand balance.
Buying and selling price
of State Bank bill is
stipulated by the State
Bank;
- total value of single
inter-banking transaction
is VND10 mln. minimum.
(e) Participating in the bid of
treasury bills.
(4) N.A.*, except  as
indicated in horizontal
measures(4) N.A.*
8. HEALTH RELATED AND SOCIAL SERVICES
(CPC 9311) (1) N.A.*
(2) N.A.*
(3) Foreign services suppliers
are allowed to be present in form
of:Government Decree
No. 06/CP  dated 29/1/1994
on guidelines for the(1) N.A.*
(2) N.A.*
(3) N.A.*WT/ACC/VNM/5
Page 25(1)  Cross-border supply; (2)  Consumption abroad: (3)  Commercial presence; (4)  Presence of natural persons
Market Access National Treatment
Limitations Relevant Regulations Limitations Relevant Regulations
- joint-venture hospital;
- joint-venture diagnosis
clinic;
- cooperation business on
the basis of medical
technical contracts;Ordinance on Private
Medical Performance;
Circular No. 07/BYT-TT on
guidelines for the Ordinance
on Private MedicalPerformance;
- 100% foreign capital
diagnosis and treatment
clinic.Law on Foreign Investment
in Vietnam;
The diagnosis and treatment clinicto be certified and approved by
the Ministry of Health. Such
certificate has the initial validity
of  5 years from the issuing date.Circular No. 22/BYT-TT
dated 29/1/1994; annex
providing guidelines of
foreign investment law in
diagnosis and treatmentservices.
Requirement for minimumregistered  capital: US$20 mil. for
hospital services; US$2 mil. for
general diagnosis clinic services;US$1 mil. for specialized
diagnosis clinic services.
- number of patient beds
based on an economic
needs requirement.WT/ACC/VNM/5
Page 26(1)  Cross-border supply; (2)  Consumption abroad: (3)  Commercial presence; (4)  Presence of natural persons
Market Access National Treatment
Limitations Relevant Regulations Limitations Relevant Regulations
- project duration:  20 years
and 30 years for projects
with registered capital of
less than US$20 mil. and
more than US$20 mil.
respectively. At the endof the said duration, if the
foreign partner transfers
assets to Vietnamese
party without
compensation, the
original duration could be
extended for 5 yearsmore. The extra large
projects could be granted
longer duration.
(4) Foreign medicalemployees must be general or
specialized doctors having
working experience for at least5 years in hospitals.(4) N.A.
*
Foreign director of hospital with
foreign invested capital must hold
professional certificates accepted
by the Vietnam Ministry ofHealth.
9. TOURISM AND TRAVEL-RELATED SERVICES
A. Hotels (excluding
food serving services)(1) N.A.*
(2) N.A.*
(3) Foreign suppliers are
permitted to be present under the
forms of joint-venture and 100%
foreign invested capital in certain
circumstances.Circular No. 215/UB/LXT
dated 8/2/1995 of StateCommittee for  Cooperation
and Investment guiding
foreign investment in
Vietnam.(1) N.A.
*
(2) N.A.*
(3) N.A.*WT/ACC/VNM/5
Page 27(1)  Cross-border supply; (2)  Consumption abroad: (3)  Commercial presence; (4)  Presence of natural persons
Market Access National Treatment
Limitations Relevant Regulations Limitations Relevant Regulations
(4) N.A.*, except as indicated
in horizontal measures.(4) N.A.*
- Restaurant services (1) N.A.*
(2) N.A.*
(3) Restaurant services are
permitted to be supplied as a
package with investment in hotel
business.Circular No. 215/UB/LXT
dated 8/2/1995 of State
Committee for Cooperationand Investment guiding
foreign investment in
Vietnam.(1) N.A.
*
(2) N.A.*
(3) N.A.*
(4) N.A.*, except as indicated
in horizontal measures.(4) N.A.*
B. Travel Agency and
Tour Operator
Services
(CPC 7471)(1) Permitted
(2) N.A.*
(3) Foreign suppliers are
allowed to provide services in the
form of joint-venture:Circular No. 972/TCDL
dated 25/8/1997 byAdministration of Tourism
on management of tourism
and travel operation.(1) N.A.
*
(2) N.A.*
(3) N.A.*
- duration of a joint-venture
with legal capital of
US$1-1.5 mill. is 7-10
years. Maximum duration
of a joint-venture with
legal capital of US$1.5-2million is 15 years;
- foreign capital
contribution must not
exceed 49% of
joint-venture's legalcapital;
The minimum amount of
legal capital is
US$1 million;WT/ACC/VNM/5
Page 28(1)  Cross-border supply; (2)  Consumption abroad: (3)  Commercial presence; (4)  Presence of natural persons
Market Access National Treatment
Limitations Relevant Regulations Limitations Relevant Regulations
- operating inbounds
(making arrangements for
foreign tourists to and
from Vietnam only,
excluding domestic travel
operations).
(4) N.A.*, except as indicated
in horizontal measures(4) N.A.*
C. Tourist Guide
Services
(CPC 7472)(1) Not permitted
(2) N.A.*
(3) Not permitted
(4) Not permittedRegulation of the
Administration of Tourismon tourist guide dated
10/4/1994.(1) Not permitted
(2) N.A.
*
(3) Not permitted
(4) Not permitted
11. TRANSPORT SERVICES
A. Maritime
Transport Services
(a) Passenger
transportation
(CPC 7211)(1) Foreign maritime carriers can
only carry freight, passengers
between Vietnamese seaports
under permission of the Minister
of  Transportation in particular
circumstancesGovernment Decree
No. 10/1998/ND-CP dated
23/1/1998.
Governmental Decree
No. 91/CP dated 23/8/1997.(1) Seaport charges and
fees may be higher for foreign
vessels and  boats than
Vietnamese vessels and  boats
operating between Vietnamese
seaports.Decision
No. 127/VGCP-CNTD-DV
dated 28/10/1997 of the
Governmental Pricing
Committee.
(b) Freight
transportation
(CPC7212)(2) NA*
(3) Foreign maritime carriers
are permitted to provide maritime
freight, passenger transportationservices by establishing
joint-venture or conducting
business co-operation contracts.(2) NA*
(3) Vessels, boats of
enterprises operating under the
Law on Foreign Investment inVietnam could be subject to
seaport charges, fees higher
than those imposed on vessels,
boats of Vietnamese persons,
organization when operatingbetween Vietnamese seaports.
(4) Number of foreignpersonnel on a vessel owned by
joint-venture enterprises is limited
to 30% of vessel’s crew. Eithermaster or mate must be
Vietnamese.(4) N.A.
*, except  as
indicated in horizontal
measuresWT/ACC/VNM/5
Page 29(1)  Cross-border supply; (2)  Consumption abroad: (3)  Commercial presence; (4)  Presence of natural persons
Market Access National Treatment
Limitations Relevant Regulations Limitations Relevant Regulations
(f) Supporting
Services for
Maritime
Transport(1) N.A.*
(2) N.A.*Decision No. 2188/QD-VT
dated 23/10/1992 of the
Minister of Transportation;(1) N.A.*
(2) N.A.*
(CPC 7452, 7459,
748)(3) Foreign services suppliers
are not permitted to supply
maritime transportation agency
services, maritime broking
services and pilot services in
Vietnam.Decision No. 2884/QD-PC
dated 17/11/1994 of the
Minister of Transportation.(3) N.A.*
(4) N.A.*, except  as
indicated in horizontal measures(4) N.A.*
B. Internal
Waterways
Transport
(a) Passenger
transportation
(CPC 7221),(1) Foreign carriers are
permitted to supply waterway
freight and passengertransportation services within
Vietnam only with permission of
the Minister of Transportation.
(2) N.A.
*Decree No. 40/CP dated5/7/1996 of the Government;
Decree No. 10/1998/ND-CP
dated 23/1/1998 of the
Government.(1) N.A.
*
(2) N.A.*
(b) Freight
transportation
(CPC 7222)(3) Foreign carriers are
permitted to supply internal
waterway passenger
transportation services by
establishing joint-venture orconducting business co-operation
contract.(3) N.A.
*
(4) N.A.*, except  as
indicated in horizontal measures(4) N.A.*
C. Air Transport
Services(1) N.A.*
(2) N.A.*Law on Vietnam Civil
Aviation;(1) N.A.*
(2) N.A.*
(d) Maintenance and
repair of aircraft(3) 2 joint-ventures are
permitted only.
Foreign capital contribution is not
allowed more than 40% of legal
capital.Law on Foreign Investment
in Vietnam.(3) N.A.*WT/ACC/VNM/5
Page 30(1)  Cross-border supply; (2)  Consumption abroad: (3)  Commercial presence; (4)  Presence of natural persons
Market Access National Treatment
Limitations Relevant Regulations Limitations Relevant Regulations
(4) N.A.*(4) N.A.*
(e) Supporting
services for air
transport
- Computer
reservation
services (CRS)
(CPC 746*)(1) CRS suppliers can
provide the services under
requirements of airlines
companies having regular flightsto Vietnam. Each airlines
company is allowed to nominate
one CRS supplier.Law on Vietnam Civil
Aviation.
Bilateral Aviation
Agreements(1) N.A.
*
(2) N.A.*(2) N.A.*
(3) Airlines companies
having regular flights to Vietnam
are permitted to supply servicesvia:
- joint-venture;
- ticket booking office;
- general agent.(3) N.A.
*
Foreign suppliers can set up
joint-venture providing this
services in Vietnam. Foreign
capital contribution must not
exceed 40% of the joint-venture's
legal capital.
Foreign airline companies havingregular flights to Vietnam areallowed to use CRS only in their
ticket booking offices or general
agents in order to serve their own
activities.
(4) N.A.*, except as indicated
in horizontal measures(4) N.A.*
- Sale and marketing
of air products
services(1) N.A.*
(2) N.A.*Law on Vietnam Civil
Aviation;(1) N.A.*
(2) N.A.*WT/ACC/VNM/5
Page 31(1)  Cross-border supply; (2)  Consumption abroad: (3)  Commercial presence; (4)  Presence of natural persons
Market Access National Treatment
Limitations Relevant Regulations Limitations Relevant Regulations
(3) Only foreign airlines
having flights to Vietnam are
allowed to provide this service.Bilateral Aviation
Agreements.(3) N.A.*
(4) N.A.*, except as indicated
in horizontal measures.(4) N.A.*
E. Rail Transport
Services(1) N.A.*
(2) N.A.*Governmental Decree
No. 10/1998/ND-CP dated
23/1/1998.(1) N.A.*
(2) N.A.*
(a) Passenger
Transportation
(CPC 7111),
(b) Freight
transportation(3) Foreign services suppliers
are permitted to supply freight or
passenger rail services by
establishing joint-ventureenterprises or conducting business
co-operation contract.(3) N.A.
*
(CPC 7112) (4) N.A.*, except  as
indicated in horizontal measures(4) N.A.*
F. Road Transport
Services(1) N.A.*
(2) N.A.*Governmental Decree
No. 10/1998/ND-CP dated
23/1/1998.(1) N.A.*
(2) N.A.*
(a) Passenger
transportation
(b) Freight
transportation(3) Foreign carriers are
permitted to supply passengerroad transportation services by
setting up joint-venture with
Vietnamese counterparts or
conducting business co-operation
contract.(3) N.A.
*
(4) N.A.*, except  as
indicated in horizontal measures(4) N.A.*
H. Services Auxiliary
to All Modes of
Transport(1) N.A.*
(2) N.A.*Decision No 1991 QD/VT
dated 28/9/1992 of the
Minister of Transportation.(1) N.A.*
(2) N.A.*
(c) Freight transport
agency services(3) Foreign suppliers are not
allowed to provide freighttransportation agency services.(3) N.A.
*
(CPC 748) (4) N.A.*(4) N.A.*WT/ACC/VNM/5
Page 32(1)  Cross-border supply; (2)  Consumption abroad: (3)  Commercial presence; (4)  Presence of natural persons
Market Access National Treatment
Limitations Relevant Regulations Limitations Relevant Regulations
12. OTHER SERVICES NOT INCLUDED ELSEWHERE
A. Industrial Services (1) N.A.*
(2) N.A.*Mineral Law dated
20/3/1996;(1) N.A.*
(2) N.A.*
(a) Mineral
exploration
services(3)
(a) Mineral exploration in
continental shelf (except oil and
gas):Decree No. 68/CP dated
6/11/1996 detailed the
implementation of the
Mineral Law.(3) N.A.*
- each company may be
granted 5 exploration
licences  maximum. The
exploration area of one
licence is less 200 km2.
(b) Exploration of precious
metals :
- each company may be
granted 5 exploration
licences maximum. Theexploration area of one
licence is less 50 km2.
(c) Exploration of coal, metaland other non-metal minerals:
- each company may be
granted 5 exploration
licences maximum. Theexploration area of one
licence is less 100 km2.
(d) Exploration of mineralwater:
- each company may be
granted 5 exploration
licences  maximum. The
exploration area of one
licence is less 1 km2.
(4) N.A.* except as indicated
in horizontal measures(4) N.A.*WT/ACC/VNM/5
Page 33(1)  Cross-border supply; (2)  Consumption abroad: (3)  Commercial presence; (4)  Presence of natural persons
Market Access National Treatment
Limitations Relevant Regulations Limitations Relevant Regulations
(b) Mineral mining
and processing
services(1) N.A.*
(2) N.A.*Law on Foreign Investment
in Vietnam.(1) N.A.*
(2) N.A.*
(3) Foreign service suppliers
are permitted to be present inVietnam in the forms of
joint-venture or 100% foreign
invested capital  company (except
exploitation of gemstones).
- the duration of
exploitation shall be
based on the feasibility
study and deposit
capacity of the mine;
- export of raw mineral
materials is limited(3) N.A.
*
(4) N.A.* except as indicated
in horizontal measures.(4) N.A.*
B. Services in
Petroleum Industry(1) N.A.*
(2) N.A.*Petroleum Law. (1) N.A.*
(2) N.A.*
(a) Petroleum
exploration
services(3) Services suppliers are
permitted to conduct product
sharing contract (PSC),
joint-venture contract, businessco-operation contract. The
exploration area of one contract is
not of more than  2 lots
(maximum 4 lots for special case)(3) N.A.
*
- duration of above
contracts is not more than
26 years  (36 years for
special case).WT/ACC/VNM/5
Page 34(1)  Cross-border supply; (2)  Consumption abroad: (3)  Commercial presence; (4)  Presence of natural persons
Market Access National Treatment
Limitations Relevant Regulations Limitations Relevant Regulations
(4) N.A.*, except as indicated
in horizontal measures(4) N.A.*
C. Fishery Services (1) N.A.*
(2) N.A.*Decree No. 93/CP dated
27/11/1993;(1) N.A.*
(2) N.A.*
(a) Services incidental
to fishing(3) Foreign suppliers are
permitted to be present in form of
joint ventures:- subject to economic
needs, joint venture
company may be allowed
to operate fishing in
Vietnamese territorialwaters at the long
distance;Decree No. 15/CP dated
19/3/1996;
Circular No. 02 TS/TT dated
25/6/1994.(3) N.A.
*
- foreign personnel on a
vessel is limited to one
third of the crew;
- either Master or mate
must be a Vietnamese
citizen.
(4) N.A.*, except as indicated
in horizontal measures(4) N.A.*
                                                     
* Limitation-specific policy not available.  To be formulated and notified later.WT/ACC/VNM/5
Page 35LIST OF ARTICLE II (MFN) EXEMPTIONS
Sectors or sub-sectors Description of measures (to be applied to
sector) indicating its inconsistency with
Article IICountries to which the
measures appliedIntended duration Conditions creating the need for
the exemption
All sectors ASEAN Countries Indefinite Bilateral or regional agreements
Air transport
- Aircraft repairing and
maintenance services;
- selling and marketing
of air transport
products services;
- computer reservation
services;Bilateral agreement based on reciprocity
treatment.Countries which have been
conducting BilateralAviation Agreement with
Vietnam.Indefinite. Based on reciprocity treatment.
International maritime freight
transportCargo sharing:
- Maritime Agreement between
the Government of Vietnam and
the Government of Kingdom of
Thailand.The Kingdom of Thailand 10 years Bilateral Agreement
Sea-transport services
- Internal road freight
transportation by
lorry;
- cargo storage and
warehousing;
- container yardThe three subsectors are subject to
preferential treatment under Maritime
Agreement between Vietnam and
SingaporeRepublic of Singapore 10 years Bilateral Agreement
Fishery services Bilateral agreement based on reciprocity
treatmentAll countries Indefinite Reserving and developing
natural resources on the basis of
reciprocity treatment.
_________