Vietnam's agreement on banking in the accession to WTO

Vietnam currently limits foreign banks to a minorirty shareholding position of 49%, but allows bank branches. Vietnam only allows foreign securities companies to open representative offices. Our (US) WTO bilateral market access agreement with Vietnam includes the following improvements:

As of April 1, 2007, U.S. and other foreign banks will be able to establish 100% foreign-invented subsidiaries. As Vietnamese legal entities, these subsidiaries will receive non-discriminatory ("national") treatment upon accession. U.S> banks will be able to establish a 100% foreign-invested bank subsidiary, take unlimited local currency deposits from legal entities, and issue credit cards.

As of date of Vietnam's accession, foreign securities firms will be able to open joint ventures with up to 49% foreign ownership. After five years, foreigners will be able to own 100% of securities firms and will be able to branch into Vietnam for some securities avtivities (asset management, advisory, and settlement and cleairng services).

Foreign-invested firms established in Vietnam will be afforded national treatments, across all other financial services sub-sectors.

Cross-border market access commitments will be comparable, or superior, to those of OECD countries (Organisation for Economic Co-operation and Development).