SERVICES, INVESTMENT LIBERALISATION AND E-COMMERCE
MARKET ACCESS FOR INVESTMENTS IN SERVICES SECTORS, CROSS BORDER TRADE IN SERVICES AND TEMPORARY PRESENCE OF NATURAL PERSONS These days, economic relations among countries go far beyond traditional flows of goods. Trade in services has been growing and represents around 70 % of GDP in Europe and 40 % in Vietnam. It is, therefore, positive that the FTA not only grants further opening in trade in services and investment but also provides improvements and more stable conditions to already existing investments.
future technologies in the computer sector are captured and the EU suppliers can have a wide choice in offering computer services in Vietnam. Postal services Vietnam committed to all postal services beyond the provision for courier services. Certain postal services are still provided under monopoly: The FTA guarantees that the EU will benefit from further liberalisation in this sector and in case that Vietnam decides that certain reserved services will no longer be supplied only by the universal service provider. Vietnam agreed to a set of principles ensuring fairer competition, certain standards on licensing, the independence of the postal authority and its impartiality from the market participants. These are important principles especially in the light that part of the postal services are still reserved to the state as universal service while other services such as courier are open to competition. Social services Vietnam has now opened its social services market covering both services with or without accommodation subject to certain requirements (foreign equity cap of 70% on establishment).
The FTA will offer new opportunities to EU investors as Vietnam further liberalised its services markets by offering access beyond their WTO commitments. This would include investments in many services sectors, and among those: Business services The FTA ensures new market access openness in various services sectors such as building cleaning services, including disinfecting and exterminating; packaging services; trade fairs and exhibitions services; rental/leasing without operators relating to machinery and equipment; interdisciplinary Research and Development; technical testing and analysis services for cross border in certain services or certain special photography services; nursing services, physiotherapists and paramedical personnel. Computer services Vietnam committed to the whole sector of computer services, which does beyond their WTO commitments. Their commitments ensure that all
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Higher education The provision of cross border higher education services by EU suppliers is now possible based on the new commitments offered by Vietnam to the EU. This would allow the provision of such services from the EU territory directly to consumers in Vietnam. Environmental services EU investors will be now allowed to provide, among others, sanitation and similar services and nature and landscape protection services be that on a cross border basis or by establishing themselves in Vietnam subject to no limitations; Distribution services Five years from the entry into force of the FTA, Vietnam will eliminate completely the economic needs test (ENT) on outlets for retail services while before that, no ENT will apply for outlets beyond the first one which are less than 500 square meters. Vietnam has signed an Understanding concerning specific commitments on distribution services of wines
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