Israel - Vietnam FTA (2023)
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Description: Investment

Foreign investment to supply electronic games services may not be supplied except through a business cooperation contract or a joint venture with Vietnamese partner authorised to supply such services or the purchase of shares in a Vietnamese enterprise authorised to supply such services. In case of a joint venture or the purchase of shares in an enterprise, foreign equity shall not exceed 49 per cent.

26. Sector: Maritime Transport Services

Sub - sector: Passenger transportation less cabotage (CPC 7211)

Freight transportation less cabotage (CPC 7212)

Obligations Concerned:

Market Access

National Treatment

Senior Management and Boards of Directors

Level of Government: Central

Source of Measure: - Administrative measures

- Law on Enterprise No. 59/2020/QH14 dated 17 June 2020

- Law on Investment No. 61/2020/QH14 dated 17 June 2020

- Maritime Code No. 95/2015/QH13 dated 25 November 2015

- Decree No. 163/2017/ND-CP dated 30 December 2017

- Decree No. 171/2016/ND-CP dated 27 December 2016

- Decree No. 147/2018/ND-CP dated 24 October 2018

- Decree No. 58/2017/ND-CP dated 10 May 2017

- Decree No. 171/2016/ND-CP dated 27 December 2016

- Decree No. 86/2020/ND-CP dated 23 July 2020 amending Decree No. 171/2016/NDCP dated 27 December 2016

- Decree No. 160/2016/ND-CP dated 29 November 2016

- Decision No. 149/2003/QD-TTg dated 21 July 2003.

Description: Investment

Establishment of registered companies for the purpose of operating a fleet under the national flag of Viet Nam: Foreign investment to supply maritime passenger and freight transportation services under the national flag of Viet Nam may not be supplied except through a joint venture or the purchase of shares in a Vietnamese enterprise, with foreign equity not exceeding 49 per cent. In addition, foreign seafarers may not exceed one-third of total employees of the ships. The Master or first chief executive must be a Vietnamese citizen.

Other forms of commercial presence for investment in international maritime transport services (15):

(15) "Other forms of commercial presence for the supply of international maritime transport services" means the ability for foreign shipping companies to undertake locally activities which are related to the cargoes carried by them and necessary for the supply of the integrated transport service to their customers, within which the international maritime transport constitutes a substantial elements and is supplied by the concerned foreign shipping company.

Foreign-invested enterprises are only permitted to carry out activities from (1) to (7) as indicated below:

1. Marketing and sales maritime transport services through direct contact with customers, from quotation to invoicing;

2. Acting on behalf of the cargo owners;

3. Provision of required business information;

4. Preparation of documentation concerning transport documents including customs documents, or other documents related to the origin and character of the goods transported;

5. Provision of maritime transport services including cabotage services by Vietnamese flagged vessels for the supply of integrated transport services;

6. Acting on behalf of the company, organizing the call of the ship or taking over cargoes when required; and

7. Negotiating and signing contracts for road, rail, inland waterways transportation related to cargoes transported by the company.

27. Sector: Maritime Auxiliary Services

Sub - sector: Container handling services, except services provided at airports (CPC 7411)

Obligations Concerned:

Market Access

National Treatment

Level of Government: Central

Source of Measure: - Administrative measures

- Law on Enterprise No. 59/2020/QH14 dated 17 June 2020

- Law on Investment No. 61/2020/QH14 dated 17 June 2020

- Law on Maritime Code No. 95/2015/QH13 dated 25 November 2015

- Decree No. 147/2018/ND-CP dated 24 October 2018

- Decree No. 58/2017/ND-CP dated 10 May 2017

- Decree No. 171/2016/ND-CP dated 27 December 2016

- Decree No. 86/2020/ND-CP dated 23 July 2020 amending Decree No. 171/2016/ND-CP dated 27 December 2016

- Decree No. 160/2016/ND-CP dated 29 November 2016

- Decision No 149/2003/QD-TTg dated 21 July 2003.

Description: Investment

Foreign investment to supply container handling services may not be supplied except through a joint venture or the purchase of shares in a Vietnamese enterprise, with foreign equity not exceeding 50 per cent. Public utility concession or licensing procedures may apply in case of occupation of the public domain.

28. Sector: Maritime Auxiliary Services

Sub - sector: Customs Clearance Services (16)

(16) "Customs clearance services" (alternatively "customs house brokers’ services") means activities consisting in carrying out on behalf of another party customs formalities concerning import, export or through transport of cargoes, whether this service is the main activity of the service provider or a usual complement of its main activity.

Obligations Concerned:

Market Access

National Treatment

Level of Government: Central

Source of Measure: - Administrative measures

- Law on Enterprise No. 59/2020/QH14 dated 17 June 2020

- Law on Investment No. 61/2020/QH14 dated 17 June 2020

- Viet Nam Maritime Code No. 95/2015/QH13 dated 25 November 2015

- Decree No. 147/2018/ND-CP dated 24 October 2018

- Decree No. 58/2017/ND-CP dated 10 May 2017

- Decree No. 171/2016/ND-CP dated 27 December 2016

- Decree No. 86/2020/ND-CP dated 23 July 2020 amending Decree No. 171/2016/ND-CP dated 27 December 2016

- Decree No. 160/2016/ND-CP dated 29 November 2016

- Decision No. 149/2003/QD-TTg dated 21 July 2003.

Description: Investment

Foreign investors are only permitted to establish joint venture or the purchase of shares in a Vietnamese enterprise with less than 100% foreign ownership, to do customs clearance services.


29. Sector: Internal Waterways Transport

Sub - sector: Passenger transport (CPC 7221)

Freight transport (CPC 7222)

Obligations Concerned:

Market Access

National Treatment

Level of Government: Central

Source of Measure: - Administrative measures.

- Law on Enterprise No. 59/2020/QH14 dated 17 June 2020

- Law on Investment No. 61/2020/QH14 dated 17 June 2020

- Law on Internal Waterways Transport No. 48/2014/QH13 dated 17 June 2014 amending Internal Waterways Transport Law No. 23/2004/QH11 dated 15 June, 2004

- Decree No. 163/2017/ND-CP dated 30 December 2017

Description: Investment

Foreign investment to supply internal waterway transport services may not be supplied except through a joint venture with a Vietnamese partner or the purchase of shares in a Vietnamese enterprise, with foreign equity notexceeding 49 per cent.

30. Sector: Air Transport Services

Sub - sector: Sales and marketing air products services

Obligations Concerned:

Market Access

National Treatment

Level of Government: Central

Source of Measure: - Administrative measures.

- Law on Civic Air Service No. 61/2014/QH13 dated 21 November 2014 amending Law on Civic Air Service No. 66/2006/QH11 dated 29 June 2006.

Description: Investment

Airlines are permitted to provide services in Viet Nam through their ticketing offices or agents in Viet Nam.

31. Sector: Air Transport Services

Sub - sector: Computer reservation services

Obligations Concerned:

Market Access

National Treatment

Level of Government: Central

Source of Measure: - Administrative measures.

- Law on Civic Air Service No.61/2014/QH13 dated 21 November 2014 amending Law on Civic Air Service No. 66/2006/QH11 dated 29 June 2006.

Description: Cross-Border Trade in Services and Investment

The foreign service suppliers and investors must use public telecommunication network under the management of Viet Nam telecommunication authority.

32. Sector: Rail Transport Services

Sub - sector: Passenger transportation (CPC 7111)

Freight transportation (CPC 7112)

Obligations Concerned:

Market Access

National Treatment

Level of Government: Central

Source of Measure: - Administrative measures

- Decree No. 163/2017/ND-CP dated 30 December 2017

Description: Investment

Foreign investment to supply rail freight transport services may not be supplied except through a joint venture or the purchase of shares in a Vietnamese enterprise, with foreign equity not exceeding 49 per cent.

Foreign investment to supply passenger rail transport services is not permitted.

33. Sector: Road Transport Services

Sub - sector: Passenger transportation (CPC 7121+7122)

Freight transportation (CPC 7123)

Obligations Concerned:

Market Access

National Treatment

Level of Government: Central

Source of Measure: - Administrative measures

- Decree No. 163/2017/ND-CP dated 30 December 2017

Description: Investment

Foreign investment to supply road passenger and freight transport services may not be supplied except through a business cooperation contract, a jointventure or the purchase of shares in a Vietnamese enterprise, with foreignequity not exceeding 49 per cent.

In the case of road freight transport services, subject to the needs of the market (17), the foreign equity limitation may be raised to but shall not exceed 51 per cent.

100 per cent of joint venture drivers shall be Vietnamese citizens.

(17) The criteria taken into account are, among others: creation of new jobs; positive foreign currency balance; introduction of advanced technology, including management skill; reduced industrial pollution; professional training for Vietnamese workers; etc.


34. Sector: Services Auxiliary to all Modes of Transport

Sub - sector: Container handling services, except services provided at airports (part of CPC 7411)

Obligations Concerned:

Market Access

National Treatment

Level of Government: Central

Source of Measure: - Administrative measures

- Decree No. 163/2017/ND-CP dated 30 December 2017

Description: Investment

Foreign investors are only permitted to provide services through the establishment of joint ventures with Vietnamese partners with the capital contribution of foreign side not exceeding 50%.

  • Chapter   1 INITIAL PROVISIONS AND GENERAL DEFINITIONS 1
  • Section   A Initial Provisions 1
  • Article   1.1 Establishment of a Free Trade Area 1
  • Article   1.2 Objectives 1
  • Article   1.3 Relation to other Agreements 1
  • Article   1.4 Extent of Obligations 1
  • Section   B General Definitions 1
  • Article   1.5 Definitions of General Application 1
  • Chapter   2 TRADE IN GOODS 1
  • Article   2.1 Definitions 1
  • Article   2.2 Scope and Coverage 1
  • Article   2.3 National Treatmebt 1
  • Article   2.4 Reduction or Elimination of Customs Duties 1
  • Article   2.5 Import and Export Restrictions 1
  • Article   2.6 Trade Related Non-Tariff Measures 1
  • Article   2.7 Import Licensing 1
  • Article   2.8 Administrative Fees and Formalities 1
  • Article   2.9 Agricultural Export Subsidies 1
  • Article   2.10 Administration of Trade Regulations 1
  • Article   2.11 Contact Points and Consultations 1
  • Article   2.12 Sub-Committee on Trade In Goods 1
  • Chapter   3 RULES OF ORIGIN 1
  • Article   3.1 Definitions 1
  • Article   3.2 Originating Good 1
  • Article   3.3 Cumulation of Origin 2
  • Article   3.4 Wholly Obtained Goods 2
  • Article   3.5 Sufficiently Worked or Processed Goods 2
  • Article   3,6 De Minimis 2
  • Article   3.7 Insufficient Working or Processing 2
  • Article   3.8 Unit of Qualification 2
  • Article   3.9 Accounting Segregation 2
  • Article   3.10 Accessories, Spare Parts and Tools 2
  • Article   3.11 Sets 2
  • Article   3.12 Neutral Elements 2
  • Article   3.13 Principle of Territoriality 2
  • Article   3.14 Direct Transport 2
  • Article   3.15 Exhibitions 2
  • Article   3.16 Proof of Origin 2
  • Article   3.17 Electronic Origin Data Exchange 2
  • Article   3.18 Procedures for the Issuance of Certificates of Origin 2
  • Article   3.19 Certificates of Origin Issued Retrospectively 2
  • Article   3.20 Duplicate Certificates of Origin 2
  • Article   3.21 Approved Exporter 2
  • Article   3.22 Conditions for Making Out an Origin Declaration 2
  • Article   3.23 Validity of Proofs of Origin 2
  • Article   3.24 Submission of Proofs of Origin 2
  • Article   3.25 Importation by Instalments 2
  • Article   3.26 Exemptions from Proofs of Origin 2
  • Article   3.27 Supporting Documents 3
  • Article   3.28 Preservation of Proofs of Origin and Supporting Documents 3
  • Article   3.29 Discrepancies and Formal Errors 3
  • Article   3.30 Mutual Assistance 3
  • Article   3.31 Verification of Proofs of Origin 3
  • Article   3.32 Denial of Preferential Treatment 3
  • Article   3.33 Dispute Settlement 3
  • Article   3.34 Amendments to the Chapter 3
  • Article   3.35 Sub-Committee on Customs and Rules of Origin 3
  • Chapter   4 CUSTOMS ADMINISTRATION AND TRADE FACILITATION 3
  • Article   4.1 Customs Cooperation 3
  • Article   4.2 Customs Procedures 3
  • Article   4.3 Release of Goods 3
  • Article   4.4 Risk Management 3
  • Article   4.5 Transparency 3
  • Article   4.6 Advance Rulings 3
  • Article   4.7 Review and Appeal 3
  • Article   4.8 Confidentiality 3
  • Article   4.9 Subcommittee on Customs and Rules of Origin 3
  • Chapter   5 Trade Remedies 3
  • Section   A Bilateral Safeguard Measures 3
  • Article   5.1 Definitions 3
  • Article   5.2 Application of a Bilateral Safeguard Measure 3
  • Article   5.3 Limitations for Applying a Bilateral Safeguard Measure 3
  • Article   5.4 Investigation Procedures 3
  • Article   5.5 Provisional Bilateral Safeguard Measures 3
  • Article   5.6 Notification and Consultations 3
  • Article   5.7 Compensation 3
  • Section   B Global Safeguard Measures 3
  • Article   5.8 Imposition of Global Safeguard Measures 3
  • Section   C Anti-dumping and Countervailing Measures 4
  • Article   5.9 Anti-dumping and Countervailing Measures 4
  • Section   D General Provision 4
  • Article   5.10 Selection of Measures 4
  • Chapter   6 SANITARY AND PHYTOSANITARY MEASURES 4
  • Article   6.1 Definitions 4
  • Article   6.2 Objectives 4
  • Article   6.3 Scope 4
  • Article   6.4 General Provisions 4
  • Article   6.5 SPS Contact Points 4
  • Article   6.6 Adaptation to Regional Conditions 4
  • Article   6.7 Equivalence 4
  • Article   6.8 Procedure of Listing Establishments 4
  • Article   6.9 Communication and Exchange of Information 4
  • Article   6.10 Sub-Committee on SPS 4
  • Article   6.11 Technical Cooperation 4
  • Article   6.12 Consultations 4
  • Article   6.13 Emergency Measures 4
  • Chapter   7 TECHNICAL BARRIERS TO TRADE 4
  • Article   7.1 Definitions 4
  • Article   7.2 Objectives 4
  • Article   7.3 Scope 4
  • Article   7.4 General Provisions 4
  • Article   7.5 International Standards, Guides and Recommendations 4
  • Article   7.6 Conformity Assessment Procedures 4
  • Article   7.7 Transparency 4
  • Article   7.8 Information Exchange and Technical Discussions 4
  • Article   7.9 Cooperation on TBT Related Issues 5
  • Article   7.10 Sub-Committee on Technical Barriers to Trade 5
  • Article   7.11 Contact Points 5
  • Chapter   8 Cross-Border Trade In Services 5
  • Article   8.1 Definitions 5
  • Article   8.2 Scope 5
  • Article   8.3 National Treatment 5
  • Article   8.4 Most-Favoured-Nation Treatment (3) 5
  • Article   8.5 Market Access 5
  • Article   8.6 Local Presence 5
  • Article   8.7 Non-Conforming Measures 5
  • Article   8.8 Domestic Regulation 5
  • Article   8.9 Transparency In Developing and Applying Regulations (5) 5
  • Article   8.10 Recognition 5
  • Article   8.11 Payments and Transfers 5
  • Article   8.12 Restrictions to Safeguard the Balance-of-Payments 5
  • Article   8.13 Denial of Benefits 5
  • Article   8.14 Exceptions 5
  • Chapter   9 INVESTMENT 5
  • Section   A General Provision 5
  • Article   9.1 Definitions 5
  • Article   9.2 Scope and Coverage 6
  • Article   9.3 Right to Regulate 6
  • Section   B Non-Discrimination and Liberalisation of Investment 6
  • Article   9.4 National Treatment 6
  • Article   9.5 Most-Favoured Nation Treatment 6
  • Article   9.6 Performance Requirements 6
  • Article   9.7 Senior Management and Board of Directors 6
  • Article   9.8 Non-Conforming Measures 6
  • Article   9.9 Special Formalities and Information Requirements 6
  • Section   C Investment Promotion and Protection 6
  • Article   9.10 Scope of Investment Protection 6
  • Article   9.11 Treatment of Investments 6
  • Article   9.12 Losses and Compensation 6
  • Article   9.13 Expropriation and Compensation (4) 6
  • Article   9.14 Transfers (6) 6
  • Article   9.15 Subrogation 6
  • Article   9.16 Taxation Measures (7) 7
  • Article   9.17 Denial of Benefits 7
  • Article   9.18 General Exceptions 7
  • Section   D Investor – State Dispute Settlemen 7
  • Article   9.19 Consultation and Negotiation 7
  • Article   9.20 Submission of Claim to Arbitration 7
  • Article   9.21 Consent of Each Party to Arbitration 7
  • Article   9.22 Conditions and Limitations on Consent of Each Party 7
  • Article   9.23 Selection of Arbitrators 7
  • Article   9.24 Place of Arbitration 7
  • Article   9.25 Places of Hearings and Procedural Language 7
  • Article   9.26 Conduct of Arbitration 7
  • Article   9.27 Third-Party Funding 7
  • Article   9.28 Governing Law 7
  • Article   9.29 Awards 7
  • Section   E Final Provisions 7
  • Article   9.30 Duration and Termination 7
  • Annex 9A   Expropriation 7
  • Annex 9B   Temporary Safeguard Measures 8
  • Annex 9C   Taxation and Expropriation 8
  • Annex 9D   Submission of a Claim to Arbitration with respect to Subparagraphs 2(b) and 2(c) of Article 9.22 (Conditions and Limitations on Consent of Each Party) 8
  • Chapter   10 GOVERNMENT PROCUREMENT 8
  • Article   10.1 Cooperation 8
  • Article   10.2 Information on the Procurement System 8
  • Article   10.3 Consultations 8
  • Article   10.4 Non-Application of Dispute Settlement 8
  • Article   10.5 Contact Points 8
  • Article   10.6 Review 8
  • Chapter   11 EXCEPTIONS 8
  • Article   11.1 General Exceptions 8
  • Article   11.2 Security Exceptions 8
  • Article   11.3 Taxation 8
  • Article   11.4 Disclosure of Information 8
  • Chapter   12 TRANSPARENCY 8
  • Article   12.1 Publication 8
  • Article   12.2 Provision of Information 8
  • Article   12.3 Administrative Proceedings 8
  • Chapter   13 ADMINISTRATION OF THE AGREEMENT 8
  • Article   13.1 Establishment of the Joint Committee 8
  • Article   13.2 Procedures of the Joint Committee 8
  • Article   13.3 Functions of the Joint Committee 8
  • Article   13.4 Establishment of Subcommittees, Working Groups and other Bodies 8
  • Article   13.5 Free Trade Agreement Coordinators 8
  • Chapter   14 DISPUTE SETTLEMENT 8
  • Article   14.1 Objective 8
  • Article   14.2 Scope 9
  • Article   14.3 Mutually Agreed Solution 9
  • Article   14.4 Consultations 9
  • Article   14.5 Good Offices, Conciliation or Mediation 9
  • Article   14.6 Choice of Forum 9
  • Article   14.7 Qualification of Arbitrators 9
  • Article   14.8 Request for the Establishment of an Arbitral Tribunal 9
  • Article   14.9 Terms of Reference of the Arbitral Tribunal 9
  • Article   14.10 Composition of the Arbitral Tribunal 9
  • Article   14.11 Function of Arbitral Tribunals 9
  • Article   14.12 Proceedings of Arbitral Tribunals 9
  • Article   14.13 Suspension and Termination of Proceedings 9
  • Article   14.14 Implementation of Report 9
  • Article   14.15 Compensation and Suspension of Benefits 9
  • Article   14.16 Time Frames 9
  • Article   14.17 Remuneration and Expenses 9
  • Annex 14-A   RULES OF PROCEDURE 9
  • Annex 14-B   CODE OF CONDUCT 10
  • UNDERTAKING IN THE MATTER OF PROCEEDING (TITLE) 10
  • Chapter   15 FINAL PROVISIONS 10
  • Article   15.1 Annexes, Appendices and Footnotes 10
  • Article   15.2 Amendments 10
  • Article   15.3 Entry Into Force 10
  • Article   15.4 Duration and Termination 10
  • Article   15.5 Amendments to the WTO Agreement 10
  • ANNEX I   RESERVATIONS FOR EXISTING MEASURES SCHEDULE OF THE STATE OF ISRAEL 10
  • ANNEX II   RESERVATIONS FOR FUTURE MEASURES. SCHEDULE OF THE STATE OF ISRAEL 12
  • ANNEX I   RESERVATIONS FOR EXISTING MEASURES. SCHEDULE OF VIET NAM 17
  • ANNEX II   RESERVATIONS FOR FUTURE MEASURES. SCHEDULE OF VIET NAM 21
  • Appendix II-A   Viet Nam 26