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Contents of National Treatment related to Vietnamese law

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Currently, the need to develop the world market is being interested in many countries. Therefore, the construction of treatment regimes for countries, especially Vietnam, is a necessary issue. This is considered a very important factor to attract more foreign investors to pour capital into Vietnam. So what are the national treatment regimes that workers need to pay attention to, as well as the national treatment principles, which are important contents to pay attention to? Today, LSX Lawfirm will give you an article about “Contents of National Treatment related to Vietnamese law”, as follows:

What is the national treatment?

National treatment is a term that has appeared and has been applied for a long time in domestic and international civil exchanges. Accordingly, national treatment is the treatment between countries for each other through the expression of benefits for foreign citizens and legal entities such as their own domestic citizens or legal entities.

The principle of national treatment is a principle in international law that is important to many treaty regimes. It basically means to treat ex-pats and locals alike. According to the principle of national treatment, if a state grants special rights, benefits, or privileges to its citizens, it must also grant those advantages to citizens of other countries while they are in that country. In the context of international treaties, a state must provide equal treatment to the nationals of other countries that are party to the agreement. Imported and domestically produced goods must be treated equally – at least after foreign goods have entered the market.

National treatment is a regulation that requires countries to take steps to ensure that foreign products and their suppliers are treated in the domestic market no less favorably than other countries’ domestic products and local suppliers.

What are the contents of the National Treatment Principles?

Firstly, with regard to the national treatment principle provided for in the GATS

In the areas covered by the Schedule of Commitments, and subject to the conditions and standards set forth in that Schedule, with respect to all measures affecting the provision of services, each Member A Member shall accord to services and service suppliers of any other Member treatment no less favorable than that it accords to its services and service suppliers.

This is also the principle of market access that requires each member to have more appropriate principles of conduct with other members in terms of services or service providers. In areas where market access has committed, Members may not maintain or enact any of the following measures, either regionally or nationally.

Except as otherwise provided in the Nomenclature. commit:

  • Limiting the number of service providers whether in the form of quotas by quantity, exclusivity, full rights to provide services, or requirements to meet economic needs;
  • Limits on the total value of services or property transactions in the form of quotas by quantity, or the requirement that the treaty’s general economic needs meet then.
  • Limit the total quantity of services or products by a number of units in the form of quotas or economic need requirements;
  • Limitation on the total number of natural persons that may employ; in a particular service sector or a service supplier authorized to employ necessary or directly; related to the provision of a particular service in the form of quotas or requirements on economic needs;
  • Measures that restrict or require specific forms of legal entities; or joint ventures through which service providers can provide services according to the actual needs of each Member State.
  • Limit the percentage of capital contributed by the foreign party; by specifying the maximum percentage of shares of the foreign party; or the total value of foreign investment calculated as a single or compounded calculation then.

Secondly, the principle of national treatment of taxes and the domestic rule set forth in the GAT Agreement.

The Contracting Parties acknowledge that domestic taxes and levies, as well as laws; or rules or requirements affecting the domestic sale, offering, transportation; distribution, or use of the product in the same country; domestic quantitative rules that require the mixing, processing, or use of a product by a specified weight; do not apply to domestic or imported products with the consequent protection of the domestic product land. Thereby creating injustice for the member states.

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What regulations does each specific commitment list need to follow?

Each specific list of commitments under regulations must stipulate:
Market access terms, limitations, and conditions; Conditions and standards of national treatment; The performance of additional commitments; Roadmap for implementation of additional commitments; a roadmap for implementing those commitments, if possible; and duration of such commitments is effective. A Member may satisfy the requirements of the foregoing by granting to services or service suppliers of any other Member treatment similar in form or treatment to the form that the member gives to his or her service or service provider then. Similar or formally different treatment is less favorable if it alters the conditions of competition in favor of the Member’s service or service supplier compared with that of the Member’s service or service supplier. similar services of any other Member.

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