WORLD TRADE

ORGANIZATION

RESTRICTED

WT/ACC/VNM/48/Add.2

27 October 2006

(06-5203)

Working Party on the

Accession of Viet Nam

WORKING PARTY ON THE ACCESSION OF VIET NAM

Schedule CLX – Viet Nam

Part II - Schedule of Specific Commitments in Services

List of Article II MFN Exemptions

Addendum

As indicated in paragraph 528 of the Report of the Working Party on the Accession of Viet Nam (WT/ACC/VNM/48), the Schedule of Specific Commitments in Services resulting from the negotiations between the Socialist Republic of Viet Nam and WTO Members is annexed to the Protocol of Accession of the Socialist Republic of Viet Nam and is reproduced hereunder.

Mode of delivery:  (1)  Cross-border supply (2)  Consumption abroad (3)  Commercial presence (4) Presence of natural person

I.       HORIZONTAL COMMITMENTS

ALL SECTORS INCLUDED IN THIS SCHEDULE

(3)     None, except:

Unless otherwise specified in each specific sector or sub-sector of this Schedule, foreign enterprises are allowed to establish commercial presence in Viet Nam in the form of business co-operation contract¹, joint venture enterprise, 100% foreign-invested enterprise.

Representative offices of foreign service suppliers are permitted to be established in Viet Nam, but they shall not engage in any direct profit-making activities².

Unless otherwise indicated in each specific sector or sub-sector of this Schedule, the establishment of branches is unbound.

The conditions of ownership, operation and juridical form and scope of activities as set out in the respective licenses or other form of approval establishing or authorizing the operation or supply of services by an existing foreign service supplier shall not be made more restrictive than they exist as of the date of Viet Nam's accession to the WTO.

(3)     None, except:

Eligibility for subsidies may be limited to Vietnamese service suppliers, i.e. to juridical persons established within the territory of Viet Nam, or a part thereof. The granting of one-time subsidization to promote and facilitate the process of equitisation is not in breach of this commitment. Unbound for subsidies for Research and Development. Unbound for subsidies in the Health, Education and Audio-visual sectors. Unbound for subsidies aimed at promoting the welfare and employment of ethnic minorities.

¹  Business co-operation contract is a document which is signed by two or more parties (of which at least one party must be Vietnamese legal entity and one party must be foreign legal entity) and which stipulates the responsibilities of, and the sharing of business results between, the parties for the purpose of conducting investment and business in Viet Nam without creating a legal entity.

²  Representative office is a subordinate unit of foreign enterprises, established under the Vietnamese law in order to seek, promote trade and tourism opportunities but is not allowed to engage in any direct profit-making activities.

Mode of delivery:  (1)  Cross-border supply (2)  Consumption abroad (3)  Commercial presence (4) Presence of natural person

Foreign-invested enterprises shall

be permitted by competent

authorities of Viet Nam to lease the

land to carry out their investment

projects.  The land leasing period

shall correspond to the time of

operation of those enterprises and

shall be stipulated in their

investment licenses and shall be

extended whenever the time of

operation of those enterprises is

extended by competent authorities.

Foreign service suppliers are

permitted to make capital

contribution in the form of buying

shares of Viet Nam's enterprises.  In

this case, the total equity held by

foreign investors in each enterprise

may not exceed 30% of the

enterprise's chartered capital unless

otherwise provided by Viet Nam's

laws or authorized by Viet Nam's

competent authority.

One year after accession, the 30%

foreign equity limitation for

acquisition of Vietnamese

enterprises shall be eliminated,

except for capital contribution in

the form of buying shares of joint-

stock commercial banks, and except

for the sectors not committed in this

Schedule. For the other sectors and

sub-sectors committed in this

Schedule, the level of equity held

by foreign investors in acquisition

of Vietnamese enterprises shall be

corresponding to the limitations on

foreign capital participation set

forth therein, if any, including the

Mode of delivery:  (1)  Cross-border supply (2)  Consumption abroad (3)  Commercial presence (4) Presence of natural person

Managers, executives and

specialists, as defined hereunder, of

a foreign enterprise which has

established a commercial presence

in the territory of Viet Nam,

temporarily moving as intra-

corporate transferees to that

commercial presence and who have

been previously employed by the

foreign enterprise for at least one

year,  shall be granted entry and a

stay permit for an initial period of

three years which may be extended

subject to the term of operation of

those entities in Viet Nam. At least

20% of the total number of

managers, executives and

specialists shall be Vietnamese

nationals. However, a minimum of

3  non-Vietnamese managers, executives and specialists shall be permitted per enterprise.

Managers and executives are those

who primarily direct the

management of the foreign

enterprises which have established

commercial presence in Viet Nam,

receiving only general supervision

or direction from the board of

Mode of delivery:  (1)  Cross-border supply (2)  Consumption abroad (3)  Commercial presence (4) Presence of natural person

directors or stockholders of the

business or their equivalent,

including directing the

establishment or a department or

subdivision of the establishment,

supervising and controlling the

work of other supervisory,

professional or managerial

employees, having the authority

personally to hire and fire or

recommend hiring, firing or other

personnel actions, and who do not

directly perform tasks concerning

the actual supply of the services of

the establishment.

Specialists are natural persons

working within an organization who

possess knowledge at an advanced

level of expertise and with

knowledge of the organization's

services, research equipment,

techniques or management.  In

assessing such knowledge, account

will be taken not only of knowledge

specific to the commercial

presence, but also of whether the

person has a high level of skills or

qualification referring to a type of

work or trade requiring specific

technical knowledge.  Specialists

may include, but are not limited to,

members of licensed professions.

Mode of delivery:  (1)  Cross-border supply (2)  Consumption abroad (3)  Commercial presence (4) Presence of natural person

Mode of delivery:  (1)  Cross-border supply (2)  Consumption abroad (3)  Commercial presence (4) Presence of natural person

Mode of delivery:  (1)  Cross-border supply (2)  Consumption abroad (3)  Commercial presence (4) Presence of natural person

contract.

-        These persons must possess:

(a)         a university degree or a technical qualification document demonstrating knowledge of an equivalent level; (b) professional qualifications where this is required to exercise an activity in the sector concerned pursuant to the laws and regulations of Viet Nam; and

(c)         at least 5 years of professional experience in the sector.

-        The number of these persons covered by the service contract shall not be larger than necessary to fulfil the contract, as it may be decided by the laws and regulations and requirement of Viet Nam.

-        These persons should have been employed by the foreign enterprise having no commercial presence in Viet Nam for a period of no less than 2 years and have met the requirements prescribed for "specialist" above.

The entry of these persons is allowed for

computer and related services

(CP 841-845, 849) and engineering

services (CPC 8672).

Mode of delivery:  (1)  Cross-border supply (2)  Consumption abroad (3)  Commercial presence (4) Presence of natural person

⁵ The main criteria include the number and the operation of enterprises in the market and their impact on the stability of the market and the economy.

⁶  For greater transparency, this commitment allows the maintenance or adoption of limitations or restrictions for national security and public order reasons that would be justified under Article XIV and Article XIV bis of the GATS.

Mode of delivery:  (1)  Cross-border supply (2)  Consumption abroad (3)  Commercial presence (4) Presence of natural person

B.     Computer and Related Services (CPC 841-845, CPC 849)

(1)     None.

(2)     None.

(3)     None, except:

For the period of 2 years from the date of WTO accession, 100% foreign-invested enterprises may only provide services to foreign-invested enterprises in Viet Nam.

After 3 years from the date of accession, branching is allowed.

(4)     Unbound, except as indicated in the horizontal section.

(1)     None.

(2)     None.

(3)     None, except that the chief of the branch has to be a resident in Viet Nam.

(4)     Unbound, except as indicated in the horizontal section.

C.     Research and Development Services

⁹  Excluding mining and oil field equipment; commercial radio, television and communication equipment.