‘The honeymoon is over’. Vietnam and the WTO: a critique of foreign direct investment commitments in banking and distribution services
Turksen, U. and Nguyen, P. (2010) ‘The honeymoon is over’. Vietnam and the WTO: a critique of foreign direct investment commitments in banking and distribution services. Journal of World Investment and Trade, 11 (4). pp. 601-650. ISSN 1660-7112
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This paper critically discusses the Vietnamese Investment Regulations (VIRs) in the context of World Trade Organization (WTO) obligations of Vietnam. The VIRs prior to the Vietnamese accession to the WTO have proved to be favourable particularly to domestic investors. Apparently, the attraction of foreign direct investment has grown intensively following the liberalisation of trade policy and opening of market access pursuant to the Vietnamese WTO commitments. A wide spectrum of initiatives have been taken by Vietnamese Government in order to adapt to the rules of the international trade regime; the VIRs are however continue to have a number of shortcomings especially in the most attractive business sectors such as distribution and banking services. The concept of “rule of law” is now revisited as recourse to this situation.
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