Vietnam to Further Open Services Sector for WTO Ticket

Vietnam has committed to opening almost all services to foreign investors in its bid to join the World Trade Organization (WTO).

 

In its fourth and latest offers for WTO accession, the developing country pledges to open most of its service areas, with 92 out of 115 categories in 10 out of 11 service areas entering trade and service liberalization commitments, including information, finance, distribution, construction, tourism, and health, according to Deputy Trade Minister Luong Van Tu, the Vietnamese chief negotiator for WTO membership.

 

“When Vietnam completes its WTO accession negotiation process, Vietnam’s commitment on market opening will compare, to a large extent, with China,” he said.

 

Tu also said that Vietnam expects realizing commitments on opening the service markets will create foreign investment flow into goods distribution, insurance, banking, transport, and telecommunications.

 

Deputy Prime Minister Vu Khoan also said that Vietnam would open its service market gradually. Part of the insurance market has already been opened, impacting positively on the market, he said.

 

In its fourth offers, Vietnam also vows to open 99.7 per cent of its 10,800 tariff lines at an average rate of 18 per cent, and with a tax reduction itinerary for most products from 3-5 years. In addition, non-tariff measures like quotas, licenses, and localization rates will gradually be removed.

 

Vietnam also commits to facilitate trade related investment activities at higher levels compared to the Vietnam-US bilateral trade agreement, and also pledges to develop action plans and laws protecting intellectual property, customs formalities, and technical standards.

 

However, once a WTO member, Vietnam will have to follow Trade-Related Investment Measures (TRIMs), by reforming investment related policies that are contrary to WTO rules, such as removing discrimination, and observing transparent principles.

 

According to Mr Khoan, Vietnam is currently improving its investment environment, by perfecting both hard and soft infrastructure such as roads, information networks, service and legal formalities, and administrative formalities.

 

WTO membership is imminent and Vietnam is trying to welcome the opportunity; however, competition in important service fields such as banking, telecommunications, and insurance will rise when Vietnam accedes, said Mr Tu.