work in Vietnam but at least 20% of the company's management staff must be Vietnamese.
Finally, we allow foreign organizations and individuals to buy shares in Vietnamese enterprises, but the ratio must be appropriate to the level of market opening in that industry. Particularly, our banks only allow foreign banks to buy a maximum of 30% of shares.
Regarding oil and gas exploitation support services, we agree to allow foreign enterprises to establish 100% foreign-owned companies after 5 years from the date of accession to provide oil and gas exploitation support services.
However, we still retain the right to manage activities at sea, on the continental shelf and the right to appoint companies to explore and exploit resources. We also reserve a list of services exclusively for Vietnamese enterprises such as flight services, services providing equipment and supplies for offshore drilling rigs... All companies entering Vietnam to provide oil and gas support services must register with the competent State agency.
Regarding telecommunications services, we have some more concessions compared to BTA but at a reasonable level, in line with our development strategy. Specifically, we allow the establishment of joint ventures with a majority of foreign capital to provide telecommunications services not associated with network infrastructure, which must be leased to a network controlled by a Vietnamese enterprise, and slightly loosen the provision of cross-border services in exchange for retaining the restriction applied to telecommunications associated with network infrastructure, which is that only enterprises in which the State holds the majority of capital can invest in network infrastructure, foreign capital can only contribute up to 49% and can only form joint ventures with licensed Vietnamese partners.
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Protecting the interests of depositors at commercial banks according to Vietnamese law - 2 -
Protecting the rights of depositors at commercial banks according to Vietnamese law - 13 -
Protecting the rights of depositors at commercial banks according to Vietnamese law - 6 -
Sanctions for breach of commercial contracts under Vietnamese law - 13 -
Law on handling overdue debt in lending activities of commercial banks in Vietnam - 1
Thus, with services associated with network infrastructure, we still maintain the same level of commitment as BTA, an important factor contributing to ensuring national security and defense.
Distribution services are basically maintained as in BTA, which is quite strict compared to other newly joined countries. First of all, the time for allowing the establishment of 100% foreign-owned enterprises is the same as BTA on January 1, 2009. Second, similar to BTA, we do not open the distribution market for gasoline, pharmaceuticals, books, newspapers, magazines, video tapes, cigarettes, rice, sugar and precious metals to foreign countries. Many sensitive products such as iron and steel, cement, fertilizers... we only open the market after 3 years.
Most importantly, we strictly limit the ability of foreign-invested enterprises to open retail outlets; opening a second retail outlet or more must be permitted by us on a case-by-case basis.
Insurance services, in general, have the same level of commitment as the BTA, however, we agree to allow the US to establish a non-life insurance branch after 5 years from the date of accession.
Banking services, we agree to allow the establishment of 100% foreign-owned subsidiary banks no later than April 1, 2007. In addition, foreign banks wishing to establish branches in Vietnam are not allowed to open sub-branches and are still subject to restrictions on mobilizing deposits in VND from Vietnamese individuals within 5 years from the date we join the WTO. We still maintain the restriction on purchasing shares in Vietnamese banks, not exceeding 30%. This is a particularly significant restriction for the banking industry.
Securities services, we allow the establishment of 100% foreign-owned securities companies and branches after 5 years from joining the WTO.
Other commitments, with the remaining sectors such as tourism, education, law, accounting, construction, transportation..., the level of commitment is basically not much different from BTA. In addition, printing and publishing services are not opened.