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December 2014
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V
IETNAM
B
RIEFING
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Vietnam became a member of the World Trade Organization (WTO) on January 11, 2007. As part of its
membership, Vietnam committed to a number of economic reforms which it would undertake over a
period of years. 2015 marks the last of the reforms that Vietnam must make.
Specifically, the year 2015 will see the following restrictions abolished:
• Hotels and restaurants (including lodging services, food catering, and drink services):
»» Abolished Restrictions
: the services provided should be in parallel with investment in hotel
construction, renovation, restoration, or acquisition.
• Services incidental to manufacturing:
»» Abolished Restrictions
: After three years from the date of WTO accession, only joint ventures with
foreign capital contributions not exceeding 50 percent shall be permitted. Five years thereon: 100
percent foreign invested enterprises shall be permitted.
While theWTOobligations have opened upmany sectors of Vietnam to foreign investment, a number of areas
will continue to have restrictions for the foreseeable future. These areas include the following:
• Distribution services; Commission agents’ services; Wholesale trade services; Retailing services:
»» Restriction
: The establishment of outlets for retail services (beyond the first one) shall be allowed on
the basis of an Economic Needs Test (ENT). An ENT exemption is applicable for FDI firms who wish to
open more retail stores. However, firms are also required to apply for a new business license for every
single additional store.
• Architectural services; Engineering services; Integrated engineering services; Urban planning and urban
landscape architectural services; Veterinary services:
»» Restriction
: Foreign enterprises have to be business entities of a WTO Member nation.
• Construction and related engineering services:
»» Restriction
: Foreign enterprises have to be business entities of a WTO Member nation.
• Legal services:
»» Restriction
: Foreign lawyers’organizations are permitted to establish commercial presence in Viet Nam
in the following forms:
-- Branches of foreign lawyers organizations;
-- Subsidiaries of foreign lawyers organizations;
-- Foreign law firms
-- Partnerships between foreign lawyers’ organizations and Vietnam’s law partnerships.
Expert Analysis:
2015 WTO Obligations
for Vietnam
Dezan Shira & Associates can help to
check whether the sector you
wish to invest in
is subject to any restrictions. See more
here Alberto Vettoretti Managing Partner, Vietnam Dezan Shira & Associates