REVIEW
of
FINANCE -
Jan. 2018
17
company. Regarding commercial presence,
Vietnam allows foreign firms to establish branches
of non-life insurance in Vietnam.
In the securities sector, Vietnam has opened
for foreign service suppliers to provide cross
border services for information delivery services,
consultancy services and auxiliary services,
establishment of a securities company with
100% foreign capital, allowing foreign service
providers to establish subsidiary for asset
management, payment and clearing services,
provision and transfer of financial information;
advisory, intermediary and auxiliary services.
In the Vietnam - Korea Agreement, Vietnam has
committed further in the areas of payment and
settlement systems and new financial services,
similar to what committed in the new FTAs of
which Vietnam is a member (EVFTA, TPP). For
new financial services (one party shall permit
financial service suppliers of another party to
provide any new financial service), Vietnam
reserves the right to give authorization of financial
provision services after a reasonable period of
pilot testing and consistent with development
level of banking and financial system of Vietnam.
Further liberalizing in the new
Free Trade Agreements - EVFTA
In EVFTA, Vietnam has made new
commitments: Opening market for reinsurance
branches in Vietnam, marking an important
step in facilitating reinsurance arrangements
FINANCIAL SERVICES COMMITMENTS OF VIETNAM
INTHE FREE TRADE AGREEMENTS
TRAN TUAN ANH, PhD.*
Financial Strategy of Vietnam until 2020 was approved by the Prime Minister in Decision No. 450/QD-TTg
dated 04/18/2012, which emphasizes the overall development goal of all types of markets, restructured
financial market and financial services; Expanding and diversifying the forms of activity in the market
to mobilize domestic and international resources for social economic development, at the same time,
promoting cooperation and financial proactive international integration through participating the
integration commitments in the financial sector.
Keywords: Financial service, commercial, securities sector, capital
Received: November 1
st
, 2017
Revised: November 7
th
, 2017
Accepted for publication: December 12
th
, 2017
Vietnam financial services commitments
and the effective Free Trade Agreements
The Agreements which have entered in effects
include the General Agreement on Trade in
Services (GATS/WTO); the Agreements between
ASEAN and its partners China, Korea, Japan,
India, Australia, New Zealand, Vietnam- Korea,
Vietnam - Japan Agreements. With the signed
FTAs, financial services commitments of Vietnam
are the same as what has been committed within
WTO. Vietnam committed for financial service
sector conforming to GATS/WTO approach, i.e.
‘positive listing”, including obligations such as
National Treatment andMarketAccess in different
Modes: cross-border supply, consumption abroad,
commercial presence.
Insurance is one of the areas with high level
of liberalization in financial services. Since 2008
until now, after Vietnam became an official
member of the World Trade Organization (WTO),
many barriers and discrimination against foreign
insurers have been removed, creating an equal
playing field for insurance companies from all
economic sectors to participate in the market.
Vietnam has opened for providing cross-border
services for international transport insurance,
reinsurance, insurance and reinsurance brokers;
advisory services, foreign investors are allowed to
establish 100% foreign capital invested insurance
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