Comparison of Commitments in WTO and EVFTA in Service Sectors and Sub-sectors that Vietnam Committed to Open Very Limitedly

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The sub-sector has committed to fully opening up.							WTO	EVFTA
transport service	- Container warehouse services - Computer reservation service - Warehouse services - Freight agency services
transport service	- Other services (bill of lading inspection; freight brokerage services; cargo inspection; sampling and weighing services; cargo inspection; goods receipt and acceptance services; transport document preparation services. These services are performed on behalf of the owner row)								X
5. Information service believe	- Postal services - Delivery services								X
6. Educational services sex	- Other education	High,	religion	sex	give	People	big,	X	X
7. Environmental services	- Wastewater and garbage treatment services - Environmental impact assessment services							X	X
7. Environmental services	- Cleaning and similar services - Exhaust gas cleaning and noise treatment services - Nature and landscape protection services								X
8. Translation tourism	- Hotels and restaurants							X	X
9. Construction and services technique	- Construction							X	X
10. Medical services - society	- Hospital services - Dental and medical services							X	X

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Source: Compiled from Vietnam's commitments in the WTO and EVFTA and the WTO and Integration Center (2017)

It can be seen that the group of services that Vietnam commits to fully opening focuses on the following areas: (i) business services, requiring specialized skills or that Vietnam needs from outside; (ii) service areas in which Vietnam has a high demand for investment and socialization (such as environment, education, etc.); (iii) service areas in which Vietnam has relative competitiveness (construction, some transport service sub-sectors).

Some sub-sectors that Vietnam has committed to fully open to EU investors while not yet committed to in the WTO include: (i) Services provided by midwives, nurses, therapists and non-professional medical staff (CPC 93191); cleaning services for buildings; (ii) Postal services, delivery services; (iii) Commission agents, wholesale, retail; (iv) Cleaning services; exhaust gas cleaning services, noise treatment; nature and landscape protection services; (v) Other transport services (such as bill of lading inspection, freight brokerage services, cargo inspection, sampling and weighing services, cargo inspection, goods receipt and acceptance services, transport document preparation services. These services are performed on behalf of the shipper).

However, most of the service sectors/sub-sectors that Vietnam has committed to open up to now are mainly partial opening commitments (limited opening). Common restrictions are concentrated in the following forms: (i) restrictions on investment forms of foreign investors; (ii) restrictions on the ownership ratio of foreign investors in joint ventures and business cooperation contracts; (iii) restrictions on Vietnamese partners and foreign partners in joint ventures/business cooperation contracts; (iv) restrictions on scope of operations; (v) restrictions on personnel. Depending on the number and extent of restrictions on foreign investors, the level of Vietnam's commitment to open up in specific service sectors/sub-sectors is broad or narrow.

For the group of services that Vietnam has committed to open widely (i.e. there are very few restrictions on foreign investment), there are major service sectors that Vietnam has committed to open very widely for all sub-sectors including: (i) Construction and related technical services; (ii) Distribution; (iii) Tourism; (iv) Environmental services and (v) some sub-sectors in the business service sector such as machine repair.

machinery and equipment, technical consultancy/ synchronized equipment. It can be seen that the service sectors that Vietnam commits to open very widely mainly include less sensitive service sectors/sub-sectors, Vietnamese enterprises have good competitiveness or are sectors that need to attract foreign investment.

For the group of services that Vietnam commits to open very limitedly, these are mostly sectors considered sensitive (information, culture, general education) or Vietnam has weak competitiveness (transportation). The sub-sectors that Vietnam does not have commitments in the WTO but has commitments in the EVFTA include:

(i) Special photographic services; (ii) Social services and health-related services;

(iii) Ground handling services (Table 4.10).

Table 4.10: Comparison of commitments in the WTO and EVFTA in service sectors and sub-sectors that Vietnam commits to open very limitedly

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Sub-sector committed to open very limited	WTO	EVFTA
	- Veterinary services
1. Business services	- Services related to agriculture, hunting and forestry - Services related to mining	X	X
	- Special photography service		X
	- Sea transport (passenger, cargo)
	- Container loading and unloading services
	- Inland waterway transport (goods, passengers)
	guest)
4. Services transport	- Freight transport by rail (CPC) 7112)	X	X
	- Road transport (goods, passengers)
	CPC 7121, 7122, 7123)
	- Container loading and unloading services, excluding services
	provided at airports (part of CPC)

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Sub-sector committed to open very limited	WTO	EVFTA
	7411)
	- Ground control		X
5. Information services	- Basic telecommunications services - Value added services - Audiovisual services	X	X
10. Medical services socio-economic	- Social services and health-related services Strong		X
11. Services entertainment, culture, sports	- Entertainment services (including theater, live music, circus) - Video game business	X	X

Source: Compiled from Vietnam's commitments in the WTO and EVFTA and the WTO and Integration Center (2017)

For service sectors/sub-sectors that Vietnam commits to open more deeply in EVFTA than in WTO commitments

In particular, in some specific service sectors/sub-sectors, Vietnam also made some deeper commitments to open up than its WTO commitments, including sectors that are EU strengths such as telecommunications, finance, maritime transport, etc. (Table 4.11).

Table 4.11: Vietnam's deeper opening commitments in EVFTA compared to WTO in some important service sub-sectors

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EVFTA

WTO

1. Business services

Vietnam for the first time commits to the entire computer services industry instead of only committing to certain sub-sectors, thus encompassing all technologies.

future in this field.

2. Distribution service

coordinate

Vietnam commits to completely eliminate

economic need test for the stores

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EVFTA	WTO
	retail goods within 05 years from the date of entry into force of the Agreement. As Vietnam implements its GATS commitments on the distribution of wines and spirits in a rather limited manner, Vietnam has signed an additional document related to the distribution of these products to ensure that the commitments in the GATS are not implemented in a way that is disadvantageous to suppliers. EU level
3. Financial services	Forms such as representative offices, branches, joint ventures, and 100% foreign investment are all allowed in both countries. EVFTA and WTO.
	Consider incentives allowing EU credit institutions to increase foreign ownership to 49% of charter capital in 02 Vietnamese joint stock commercial banks (this commitment is effective for 05 years and does not apply to 04 joint stock commercial banks in which the State holds controlling shares).	For capital contributions in the form of share purchases, the total number of shares held by foreign individuals and legal entities at each Vietnamese joint stock commercial bank shall not exceed 30% of the charter capital. of the Bank.
	- Commercial banking sector: allows market access for financial information transfer and processing

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EVFTA

WTO

financial data; liberalization of regulatory approval requirements for new banking products and services; removal of restrictions on competition in the sector.

- Insurance sector: enabling market access for data transfer, data privacy and regulatory approval for new products; non-discrimination on collateral and asset localization.

- Securities sector: allowing market access and national treatment for the provision of cross-border financial data processing and the provision of advisory, intermediary and other ancillary securities services,...

- Commit to applying international standards on regulation and supervision in the financial sector, combating tax evasion and tax avoidance; and at the same time applying the set of principles

about transparency

4. Transportation services

Passenger transport services

and

- Allow the establishment of joint ventures to operate Vietnamese-flagged fleets with foreign investment in the joint venture up to 70% of the legal capital.

- Ship rental services available

Foreign capital does not exceed 49% of the joint venture's charter capital.

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EVFTA		WTO
		row	licensed driver and service
		chemical	maintenance and repair of ships for
			Joint venture license 70% capital contribution
			foreign.
5. Translation	Pandemic	Pandemic	Allow joint ventures	Capital contribution ratio of
service	Telecommunication	case	in which the proportion of foreign capital contribution	foreign in
information	information	copy,	outside not more than 65% (applicable)	maximum joint venture
believe		Are not	immediately after the Agreement comes into effect	is 65%
		have down	force) and not more than 75% after 05
		floor	years from the date of entry into force of the Agreement
		network	effective
		Pandemic	Allow joint ventures	By 2010, the ratio
		price	in which the proportion of foreign capital contribution	water capital contribution ratio
		politician	outside not exceeding 65% of capital	outside inside
		increase,	law immediately after the Treaty	maximum revenue is
		Are not	effective and authorized	65%.
		have down	establish a sole proprietorship
		floor	100% foreign capital after 05
		network	years from the date of entry into force of the Agreement
			effective
		Pandemic	Foreign capital contribution	Capital contribution ratio of
		price	not exceeding 50% of legal capital	foreign maximum
		politician	determined immediately after the Agreement comes into force.	is 50%.
		increase,	effective and not more than 65% after
		have down	05 years from the date of entry into force of the Agreement
		floor	effective
		network

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EVFTA		WTO
		Orange	The set of legal rules to ensure
		conclude	ensure a level playing field for all
		other	both domestic and international operators
			overseas such as licensing fees,
			access, connectivity, digital mobility
			with mobile service; shared location
			only, lease circuit and elements
			non-aggregate network; function
			independence of agencies
			management when regulating the industry.
	Pandemic	Vietnam agrees to liberalize postal services
	service	main, except for universal services and
	transfer	Service is reserved. Prevent the
	release	anti-competitive behavior in the field
		postal, committed to applying standards
		licensing standards and terms
		ensure the independence of the postal service
		fairness and equity of the parties involved
		market share
7. Environmental services		Vietnam first committed in
school		Agreement on terms of service
		birth and similar services as well as
		nature and landscape protection services
		for all delivery methods
		service without any restrictions
		for both market access and treatment
		nation.

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