RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/ACC/SPEC/VNM/3 
5 November 2002 
 (02-6088) 
Working Party on the 
Accession of Viet Nam Original:   English 
 
 
 
ACCESSION OF VIET NAM 
 
Domestic Support and Export Subsidies in Agriculture  
 
 The Government of the Socialist Republic  of Viet Nam has submitted the following 
information on Domestic Support and Export Subsidi es in Agriculture, with the request that it be 
circulated to the members of the Working Party.   
_______________ 
 
   
 WT/ACC/SPEC/VNM/3 
Page 2 Supporting Table DS:1 
Domestic Support: Viet Nam 
Reporting period: 1999 – 2001 
 
Measures exempt from the reduction commitment - "Green Box" 
 
Monetary value of measure in year in question (billion 
Dong) Measure type Name and description of measure with reference to 
criteria in Annex 2 of the Agreement on Agriculture 1999 2000 2001 Average 
1999-2001 Data sources 
1 2 3 4 5 6 = 
(3+4+5):3 7 
(a) General services       
(i) Research1 Budget allocations to cond uct research projects on plant 
varieties/seeds and breeds, farming techniques, etc.; 
maintenance and development of agricultural research 
institutions, experimental centers, etc. 243.98 367.83 292.10 301.30 MOSTE; MARD; 
MOF; Prov 
(ii) Training services2 Expenditures to set up, maintain and develop agricultural 
training institutions and centers  198.44 242.01 534.31 324.92 MARD; MOF; Prov 
(iii) Extension and advisory 
services3 Budget allocations to establish and maintain a 
nationwide network of provision of agricultural 
extension and advisory services  132.71 150.10 181.14 154.65 MARD (AFESD); 
Prov 
(iv) Infrastructural services4 Budgetary expenditures to construct, maintain and 
develop farm irrigation systems, water supply facilities and drainage works, etc.  for agricultural sector 5,491.10 6,787.14 4,863.00 5,713.75 GDS; MARD; Prov 
                                                      
1 Agricultural research : There are totally 19 field research ins titutes in agricultural sector including National Agricultural Research Institute, Ins titute of Veterinary 
Quarantine, Institute of Plant Protection, etc. Research projects conducted by these institutes and some other national institu tions, universities on plant varieties/seeds and breeds, 
farming techniques and methods, agricultural technologies and practices, soil science, agro-chemistry, genetics, plant and anim al health protection, agronomy, etc. are funded by 
the State budget. 
2 Training services : The agricultural training institution system consists of some universities including University of Agriculture, University of  Water Resource and 
University of Forestation, 30 highschools and vocational training schools majoring in various fields such as horticulture, anim al breeding, veterinary, plant protection, agro-
mechanics, forestation, food processing, agricultural accountancy,  etc.  Expenditures of these institutions to train agricultur al technicians, agronomists, specialists and agricultural 
workers are from the State budget allocation . 
3 Extension and advisory services : A nationwide network of agricultural extension and advisory staff is established pursuant to the Government Decree No.13/CP d ated 
2 March 1993 on extension activities.. The operating and developing expenditures of this network are from budget allocation of governments at various levels. The main function 
of this network is to provide farmers and/or agricultural producer s with gratis advisory services related to farming methods, a gricultural production technologies, etc. 
4 Infrastructural services : The State allocates budgets for the construction, maintenance,  reclamation and improvement of water supply facilities, irriga tion and drainage 
works, dam and dyke system.  
  WT/ACC/SPEC/VNM/3
 Page 3Monetary value of measure in year in question (billion 
Dong) Measure type Name and description of measure with reference to 
criteria in Annex 2 of the Agreement on Agriculture 1999 2000 2001 Average 
1999-2001 Data sources 
1 2 3 4 5 6 = 
(3+4+5):3 7 
(v) Pest and disease 
control, inspection services
5 Budgetary expenditures in activities related to plant and 
animal health protection; sanitary and phytosanitary defense and alertness; pest and disease surveillance, 
prevention and control; prov ision of vaccines, etc. 
 247.76 277.25 264.02 263.01 MARD (DPP, 
DVQ); Prov 
(b) Public stockholding for 
food security purposes Budgetary expenditures in activities related to 
accumulation, storage and hand ling of products for food 
security purposes including foodstuffs such as rice and 
paddy (under the management responsibility of the State Reserve Department); some plant varieties/seeds such as  
seeds of rice, maize, vegetables; insecticides, veterinary 
medicines, vaccines, etc.  (under the management 
responsibility of MARD) 686.90 578.40 2,271.40 1,178.90 MARD; Prov 
(c) Domestic food aid  Budgetary outlays in activities related to food aid 
distribution to deprived people in remote, mountainous 
and other disadvantaged areas for hunger relief purpose 92.50 85.44 197.07 125.00 MARD; Prov 
(d) Decoupled income 
support6  150.81 166.61 105.80 141.07 MARD; Prov 
(e) Income insurance and 
income safety-net 
programmes    0.00 0.00 0.00 0.00  
                                                      
5 Pest and disease cont rol, inspection services : The system of veterinary and plant protec tion agencies in agriculture sector consists of National Department of Veterinary 
Quarantine, National Department of Plant Protection and their br anches in 61 provinces and cities throughout the country. These  agencies' main functions include pest and 
disease surveillance and monitoring  (forecast, alert, prevention, defense and erad ication), regulatory framework development, q uarantine, sanitary and phytosanitary inspection at 
the border gates as well as across national regions/areas, etc (excluding inspection services charged to imports and exports). 
6 Decoupled income support : During the 2-year period of 1999-2001, some supports have been provided from the provincial budgets to households with income  of less 
than the standard minimum level specified by the Ministry of Labour, War Invalids and Society as follows: Poor households are d efined as households w ith monthly average rice-
equivalent income of less than 25kg of rice with regards to thos e living in urban areas; of 20 kg of rice or less with regard t o those living in plain rural areas; of 15 kg of rice or 
less with regard to those living in mountainous rural areas. Hungry households are those with monthly average rice-equivalent i ncome of 13 kg of rice or less. 
From 2001, the standard minimum level of poverty and hunger defin ition is specified in the Decision No. 1143/QD-LDTBXH of Minis ter of Labour, War Invalids and 
Society dated 1 November 2000 as follows:  Households with average income per capita below 80,000 Dong/month (or 960,000 Dong/y ear) with regard to those living in 
mountainous rural areas and islands; 100,000 Dong/month (or 1,200,000 Dong/year) with regard to those living in plain rural are as;  150,000 Dong/month (or 1,800,000 
Dong/year) with regard to those living in urban areas are defined as households of poverty and hunger situation.    
 WT/ACC/SPEC/VNM/3 
Page 4 Monetary value of measure in year in question (billion 
Dong) Measure type Name and description of measure with reference to 
criteria in Annex 2 of the Agreement on Agriculture 1999 2000 2001 Average 
1999-2001 Data sources 
1 2 3 4 5 6 = 
(3+4+5):3 7 
(f) Payments for relief 
from natural disasters  Budgetary outlays related to provision of food, foodstuff 
and other basic necessities to farmers in areas hit by natural disasters to assist them to stabilize their lives and 
recover production; relief in fo rm of electricity assistance 
payments to use pumps to irrigate drought-stricken land 
or to drain flooded land; relief in form of financial 
support (cash payments) to su ffered farmers to purchase 
seeds, veterinary medicines, insecticides, etc. to continue 
with production 901.20 2,192.07 1,434.36 1,509.21 MOF; Prov 
(g) Structural adjustment 
assistance provided 
through producer retirement programmes  0.00 0.00 0.00 0.00  
(h) Structural adjustment 
assistance provided 
through resource retirement programmes  5.61 15.98 109.8 43.80 Prov 
(i) Structural adjustment 
assistance provided 
through investment aids  181.78 270.74 170.44 207.65 Prov  
  WT/ACC/SPEC/VNM/3
 Page 5Monetary value of measure in year in question (billion 
Dong) Measure type Name and description of measure with reference to 
criteria in Annex 2 of the Agreement on Agriculture 1999 2000 2001 Average 
1999-2001 Data sources 
1 2 3 4 5 6 = 
(3+4+5):3 7 
(j) Environmental 
programmes7 Budgetary expenditures in activities related to tree 
planting on barren and unfertile land; environment protection, landscape preservation; protection of water 
and land resources, prevention against soil degradation 
and erosion; conservation of biological potentials and 
biodiversity; forestry development, etc. 774.27 788.59 3,630.02 1,730.96 SB; MARD; MOF; 
Prov 
(k) Regional assistance 
programmes8 Budget allocations for resettlement of ethnic minorities, 
establishment and development of new economic zones; 
freight subsidies to offset the high cost of transportation of policy commodities to mountainous, remote regions, 
etc.  959.70 1,329.00 3,309.45 1,866.05 MOF; SB; MARD 
(l) Other9  Job creation programme 771.10 905.27 853.20 843.19 MOF; Prov 
Total  
  10,837.86 14,156.43 18,007.43 14,333.91  
 
                                                      
7 Environmental programmes : With the aim to increase plant-covering rate over barren and unfertile land, to protect and pr eserve the ecological environme nt, water 
resources as well as natural world of plants and animals, etc, the Prime Minister issued the D ecision No.661/QD-TTg dated 29 Ju ly 1998 to launch the Programme on Growing 5 
million hectares of forest. The incentive-based policies under the Programme provide for an annual grant of 50,000 Dong/ha appl ied to those who undertake the task of protecting 
natural forests; a one-off cash payment of 1,000,000 Dong/ha applied to those who undertakes the task of preserving and develop ing forests; a one-off cash payment of 2,500,000 
Dong/ha applied to those who undertake the task of growing conservation forests as a means of erosion control; and a one-off ca sh payment of 2,000,000 Dong/ha applied to 
those who undertake to grow trees producing rare wood of great value, etc. Additionally, the State also provides financial supp ort to construct and develop the infrastructure, to 
allocate land and issue certificates of land use ri ght to farmers who participate in the Programme. 
In addition, pursuant to the Inter-Ministerial Circular No. 10 9/2000/TTLT/BNN-BTC dated 20 October 2000, afforestation yards ar e allowed to retain the corporate 
income tax amount otherwise payable for forest development. 
8 Regional assistance programmes : The State allocates part of its budget for the resettlement of ethnic minorities in order to stabilize their lives, to preven t slash-and-
burn activities, to develop untapped areas into new economic z ones or production areas as the destination for attracting the mo vement flows of inhabitants from densely-
populated regions or land shrunk as a consequence of natural disasters or soil-blown accidents, etc. The main activities includ e building new villages/communes, reclaiming 
virgin lands for production development; constructing infrastructure such as roads, clinics, schools, markets, etc.; organising  classes to introduce production methods to ethnic 
minorities; providing transport subsidies, food assistance and in itial capital grants for those who move to newly-developed eco nomic areas to start on production; providing 
freight subsidies to offset the high cost  of transportation of policy commodities and production inputs to mountainous, remote regions; providing preferential loans to inhabitants 
in the Mekong delta region to construct their houses against floods. Since 1999, the State has launched the Programme 135 with the focus of priority investments to develop 1,000 
communes under harsh and especially disadvantaged conditions in remote and distant areas, etc. 
9 Socio-economic programme  includes dissemination and introduction of methods of production and/or doing business and then provision of preferential loan s to assist 
the target recipients to develop production, processing activities and to promote sales of their products in order to generate more employment and incomes.  
 WT/ACC/SPEC/VNM/3 
Page 6 Supporting Table DS:2 
Domestic Support: Viet Nam 
Reporting period: 1999 – 2001 
 
Measures exempt from the reduction commitment - Special  and Differential Treatment - "Development Programmes" 
 
Monetary value of measure in year in question (bil. Dong) 
Measure type Name and description of measure with 
reference to criteria in Article 6:2 of the 
Agreement on Agriculture 1999 2000 2001 Average 1999-
2001 Data sources 
1 2 3 4 5 6 = (3+4+5):3 7 
(a) Investment subsidies generally 
available to agriculture Interest rate support applicable to investment 
activities10 
  524.30 1,137.85 886.78 849.64 MARD; SB; 
DAF; Prov 
 Soft loan to develop economic activities of 
farms11 N/a N/a N/a N/a 12 
(b) Input subsidies generally available 
to low-income or resource-poor 
producers Short-term soft loans13 893.85 1,275.17 693.30 954.11 SB; MARD 
(DARNEZ); 
Prov 
(c) Support to encourage 
diversification from growing illicit narcotic crops Provision of support in the form of plant 
varieties/seeds, seeds, breeds; dissemination of farming techniques; administrative costs 
to assist the diversification from illicit opium 
poppy cultivation to other crop production  9.60 11.10 1.47 7.39 MARD 
(DARNEZ); Prov 
Total  1,427.75 2,424.12 1,581.55 1,811.14  
                                                      
10 The Government compensates commercial banks for the difference between prevailing market interest rate and preferential intere st rate charged by commercial banks 
for mid-term or long-term investment loans under the Government's  direction. The preferential inte rest rate is 0.81% per month (i.e. 9.72% per year) (The prevailing commercial 
interest rate applicable to investment projects to establish and develop processing premises for agricultural and forestry prod ucts and projects of growing perennial plants which 
was previously at 1.25% per month has been cut down to 1.15% per month. Since 2000, preferential credit interest rate was 0.45%  per month (i.e. 5.4% per year) due to 
decreasing commercial interest rate. And the preferential interest rate in 2001 has been 9.6% per annual. 
11 Pursuant to the Circular No.82/2000/TT-BTC of Ministry of Finance dated 14 August 2000 guiding the implementation of the Gover nment Resolution 
No.03/2000/NQ-CP dated 2 February 2000 on economic activities of fa rms, the State provides support to develop transportation in frastructure, irrigation and drainage facilities, 
water supply system, utilities, telecommunications infrastructure , processing facilities with a view to encouraging individuals  and households to develop agricultural and forestry 
production on farms. 
Farms conducting business in the encouraging fields or sectors are eligible to borrow from the Development Assistance Fund. Pur suant to the Prime Mi nister's Decision 
No.67/1999/QD-TTg on some credit policies of banks for agricultura l and rural development, farms are eligible to borrow commerc ial credits from the St ate-owned commercial 
banks to develop their production and business activities. 
12 Government Resolution No.03/2000/NQ-CP dated 2 February 2000 on economic activities of farms; Circular No.82/2000/TT-BTC dated  14 August 2000 of Ministry 
of Finance. 
13 The State establishes a banking network for the poor in order to allow the poor to have access to short-term loans at preferen tial interest rate  equivalent 50% of the 
prevailing commercial market interest rate  to develop their own production.  
  WT/ACC/SPEC/VNM/3
 Page 7 
Supporting Table DS:3 
Domestic Support: Viet Nam 
Reporting period: 1999 – 2000 
 
Measures exempt from the reduction commitment - Direct Payments under  
Production-Limiting Programmes - Exempt Direct Payments 
 
Monetary value of measure in year in question  
(billion Dong) Measure type Name and description of measure 
with reference to criteria in Article 
6:2 of the Agreement on Agriculture 1999 2000 2001 Data sources 
1 2 3 4 5 6 
(a) Payments based on fixed area and 
yields   
(b) Payments based on 85 per cent or 
less of the base level of production   
(c) Livestock payments made on a 
fixed number of head  NIL 
 
  
 WT/ACC/SPEC/VNM/3 
Page 8 Supporting Table DS:4 
Domestic Support: Viet Nam 
Reporting period: 1999 – 2001 
 
Calculation of the Total Aggregate Meas urement of Support (Grand Total AMS) 
 
Value of production (billion Dong) 
Description of 
basic products Product-specific AMS (from 
Supporting Tables DS:5 to DS:7 
below) 
(billion Dong) Product-specific measurements of 
support (from Supporting Table 
DS:8 below) 
(billion Dong) Value 
(billion Dong) 10% of value 
(billion Dong) Total AMS (aggregate) 
(billion Dong) 
 1999 2000 2001 1999 2000 2001 1999 2000 2001 1999 2000 2001 1999 2000 2001 
1 2 3 4 5 6 7 8 9 10 11 12 13 14 
=2+5+8 15 
=3+6+9 16 
=4+7+10 
(1) Rice 0.00 0.00 0.00 27.20 61.94 0.00 76,869.40 63,691.60 63,088.10 7,687.00 6,369.10 6,308.81 (0.00) (0.00) (0.00) 
(2) Sugar 4,474.24 2,358.00 2,734.58 100.56 431.41 187.56 6,956.00 6,102.73 6,831.27 695..60 610.27 683.13 4,574.80 2,789.41 2,922.14 
(3) Pork 0.00 0.00 0.00 3.20 0.00 0.00 16,641.24 17,472..1
4 16.969.47 1,664.12 1,747.2 1,697.00 3.20 (0.00) (0.00) 
(4) Cotton 0.00 9.57 9.51 2.00 0.00 3.84 122.10 103.40 150.10 12.21 10.34 15.01 2.00 9.57 13.35 
(5) Plant 
varieties/seeds 12.00 922.02 963.21 0.00 0.00 0.00 N/a N/a N/a N/a N/a N/a 12.00 922.02 963.21 
(6) Animal 
breeds 18.30 427.74 446.26 0.00 0.00 0.00 N/a N/a N/a N/a N/a N/a 18.30 427.74 446.26 
Total product-
specific AMS 4,504.54 3,717.33 4,153.56 132.96 493.35 191.40 124,075.3 122,389.3 122,247.7 12,407.5.3 12,238.93 12,224.77 4,637.5 4,210.68 4, 344.96 
Total non-
product-specific 
AMS (from 
Supporting 
Table DS:9 
below)             1,111.82 1,152.72 2,000.82 
Grand Total 
AMS             5,749.32 5,363.40 6,345.78 
 
 
Note : Columns 14, 15 and 16: Figures indicate th at AMS aggregate for that sp ecific product is not subject to reduction or inclusion  in the Grand Total AMS because the 
calculated AMS is less than 10% of value of production of that specific product (excluding sugar) ( de minimis  exclusion of developing countries). 
  
  WT/ACC/SPEC/VNM/3
 Page 9Supporting Table DS:4 (Appendix) 
Domestic Support: Viet Nam 
Reporting period: 1999 – 2001 
 
Calculation of the Total Aggregate Measurement of Support (Grand Total AMS) - Average 1999-2001  
 
Value of production (billion Dong) 
Description of basic products Product-specific AMS (from 
Supporting Tables DS:5 to 
DS:7 below) 
(billion Dong) Product-specific measurements 
of support (from Supporting 
Table DS:8 below) 
(billion Dong) Value 
(billion Dong) 10% of value 
(billion Dong) Total AMS 
(aggregate) 
(billion Dong) 
1 2 3 4 5 6 
(1) Rice 0.00 29.71 67,883.03 6,788.30 29.71 
(2) Sugar 3,188.94 239.84 6,630.00 663.00 3,428.78 
(3) Pork 0.00 1.06 17,027.62 1,702.76 1.07 
(4) Cotton 6.36 1.95 125.20 12.52 8.31 
(5) Plant varieties/seeds 632.41 0.00 N/a N/a 632.41 
(6) Animal breeds 297.43 0.00 N/a N/a 297.43 
Total product-specific AMS 4,125.14 272.56 122,904.10 12,290.41 4,397.70 
Total non-product-specific AMS (from Supporting Table 
DS:9 below)     1,421.79 
Grand Total AMS 4,125.14 272.56 122,904.10 12,290.41 5,819.50 
 
Note:  Column 6: Figures indicate that AMS aggregate for that specific product is not subject to reduction or inclusion in the Grand Total AMS because the calculated AMS is 
less than 10% of value of production of that specific product (excluding sugar) ( de minimis  exclusion of developing countries). 
  
 WT/ACC/SPEC/VNM/3 
Page 10 Supporting Table DS:5 
Domestic Support: Viet Nam 
Reporting period: 1999 – 2001 
 
Product-Specific Aggregate Measuremen ts of Support: Market Price Support 
 
Description of 
basic products Calendar 
year Measure type(s) Applied administered 
price (1,000 
Dong/ton) External reference 
price 
(1,000 Dong/ton) Eligible 
production 
(1,000 ton) Associated 
fees/levies (billion 
Dong) Total market price 
support (billion 
Dong) Data 
sources 
1 2 3 4 5 6 7 8 = ((4-5)*6)-7  
1999 Price support 3,767.00 3,170.87 20,406.00 0.00 0.00 
2000 Price support 3,010.00 2,716.03 21,160.10 0.00 0.00 
2001 None15 3,036.00 2,489.00 0.00 0.00 0.00 (1) Rice14 
Average 1999-2001  0.00 
1999 Price support/import 
licence  6,975.00 2,259.00 947.30 0.00 4,467.54 
2000 Price support/import 
licence  5,049.00 3,112.00 1,208.70 0.00 2,341.11 
2001 Import licence 6,458.00 3,886.00 1,057.80 0.00 2,720.69 MARD (2) Sugar16 
Average 1999-2001  3,176.45  
 
                                                      
14 The following data are applied when calculating external  reference price of and eligible production for rice: 
-  Conversion rate between paddy and rice yields: Paddy/rice = 0.65; -  Average export price of rice (FOB Ho Chi Minh port) in 1999: US$227.4/ton, in 2000: US$192/ton, in 2001: US$168/ton. 
15 None:  Price support was not applicable in 2001. 
16 Price support is effected via the following measures: 
-  Import licence (with raw and refined sugar); 
-  Authorized/designated importers; 
-  Mandatory requirement by the Government on sugar plants to pu rchase farmers' sugarcanes at determined protective price (mini mum purchase price) to protect 
farmers' income (e..g. the minimum purchase price of suga rcane was determined at 240,000 Dong per ton in 1999); 
As a consequence, domestic price of sugar is higher than world price.  
-  Eligible production for sugar equals to the total production of all domestic sugar plants. -  Average export price of sugar (CIF Vietnam's port)in 1999: US$ 162/ton, in 2000: US$ 220/ton, in 2001: US$ 262.3/ton. 
(Source: General Department of Custom)  
  WT/ACC/SPEC/VNM/3
 Page 11Supporting Table DS:6 
Domestic Support: Viet Nam 
Reporting period: 1999 – 2001 
 
Product-Specific Aggregate Measurements of Support: Non-Exempt Direct Payments 
 
Description of 
basic product Calendar 
year Measure type(s) Applied administered 
price (1,000 
Dong/ton) External reference 
price 
(1,000 Dong/ton) Eligible 
production 
(1,000 ton) Associated 
fees/levies 
(billion Dong) Total direct 
payments (billion 
Dong) Data sources 
1 2 3 4 5 6 7 8 = ((4-5)*6)-7 9 
    
NIL 
  
  
 WT/ACC/SPEC/VNM/3 
Page 12 Supporting Table DS:7 
Domestic Support: Viet Nam 
Reporting period: 1999 – 2001 
 
Product-Specific Aggregate Measurements of Support: Oth er Product-Specific Support and Total Product-Specific AMS 
 
Description of 
basic product Calendar year Measure 
type(s) Other 
product-
specific 
budgetary 
outlays 
(billion Dong) Other product 
specific 
support 
(billion Dong Associated 
fees/levies Total other 
product-
specific 
support 
(billion Dong) Market price 
support 
(Supporting 
Table DS:5) 
(billion Dong) Non-exempt 
direct 
payments 
(Supporting 
Table DS:6) 
(billion Dong) Total AMS Data sources 
1 2 3 4 5 6 7 = (4+5-6) 8 9 10 = (7+8+9) 11 
1999  ...    (0.00)  (0.00)  
2000  ...    (0.00)  (0.00)  
2001  ....    ....  ...  (1) Rice 
Average 
1999-2001        ( 0 . 0 0 )   
1999  6.7018   6.70 4,467.54  4,474.24 
2000  16.89   16.89 2,341.11  2,358.00  
2001  21.13   21.13 2,720.69  2,741.82  (2) Sugar17 
Average 
1999-2001        3,191.35  
1999  0.00   0.00 0.00  0.00 
2000  9.57   9.57 0.00  9.57 MARD 
2001  13.11   13.11 0.00  13.11  (3) Cotton19 
Average 
1999-2001        7.56  
1999  12.00   12.00 0.00  12.00 
2000  922.02   922.02 0.00  922.02 21 
2001  963.21   963.21 0.00  963.21  (4) Plant 
varieties/ 
seeds20 
Average 
1999-2001        632.41  
                                                      
17 With regard to sugar, in addition to price support, the Government also provides financial support to import new varieties of sugarcane for the cultivation in the 
following provinces: Binh Dinh, Quang Nam, Thua Thien - Hue, Ninh Thuan, Phu Yen, Quang Ngai, Binh Thuan, Quang Binh, Kon Tum. 
18 Prime Minister's Decision No.04/1999/QD-TTg of 5/1/1999. 
19 The Government provides financial support to lower the selling price of imported cross- line cott on seeds with a view to reduc e the production cost of cotton farmers 
who could otherwise hardly afford to purchase these high-yielding varieties/seeds to for cultivation due to their high import p rice. 
20 Support program for plant varieties/seeds pu rsuant to the Prime Minister's Decision No.225/1999/QD - TTg dated 10 December 199 9 focuses on the research, 
development, protection of plant varieties/seeds and genetic so urces, production of origin varieties/seeds, etc., and importati on of new genetic and variety sources, production of 
good-quality varieties/seeds to supply farmers. 
21 Prime Minister's Decision No.225/1999/QD-TTg of 10/12/1999.  
  WT/ACC/SPEC/VNM/3
 Page 13Description of 
basic product Calendar year Measure 
type(s) Other 
product-
specific 
budgetary 
outlays 
(billion Dong) Other product 
specific 
support 
(billion Dong Associated 
fees/levies Total other 
product-
specific 
support 
(billion Dong) Market price 
support 
(Supporting 
Table DS:5) 
(billion Dong) Non-exempt 
direct 
payments 
(Supporting 
Table DS:6) 
(billion Dong) Total AMS Data sources 
1 2 3 4 5 6 7 = (4+5-6) 8 9 10 = (7+8+9) 11 
1999  18.30   18.30 0.00  18.30 
2000  427.74   427.74 0.00  427.74 MARD23 
2001  446.26   446.26 0.00  446.26  (5) Animal 
breeds22 
Average 
1999-2001        297.43  
 
 
                                                      
22 Support for breeding centers and agencies: Normal costs on maintaining and protecting herds of breeds are usually very high du e to requirement of compliance with 
strict technical conditions and procedure. As a consequence, fa rmers could not afford to purchase these breeds for their produc tion given their limited financial resources and low 
production capability. In order to assist fa rmers to reduce their production costs, the State budget provides these breeding ce nters and agencies with fina ncial support with a view 
to lowering the selling price of breeds. 
23 Prime Minister's Decision No.225/1999/QD-TTg of 10/12/1999.  
 WT/ACC/SPEC/VNM/3 
Page 14 Supporting Table DS:8 
Domestic Support: Viet Nam 
Reporting period: 1999 – 2001 
 
Product-Specific Equivalent Measurements of Support 
 
Description of 
basic product Calendar year Measure 
type(s) Applied 
administered 
price (1,000 
Dong/ton) Production 
eligible to 
receive the 
applied 
administered 
price (1,000 
tons) Market price 
support 
budgetary 
outlays 
(billion Dong) Equivalent 
measurement 
of support 
(EMS) (billion 
Dong) Non-exempt 
direct 
payments 
(billion Dong) Other product-
specific 
support 
(billion Dong) Associated 
fees/levies 
(billion Dong) Total 
monetary 
value of 
equivalent 
commitment 
(billion Dong) Data sources 
1 2 3 4 5 6 7 8 9 10 11= (7+8+9-
10) 12 
(1) Rice 1999  500.00    27.20  27.20 
 2000  1,400.00    61.94  61.94 MOF; MARD 
 2001 Interest rate 
support to purchase rice during harvest time
24  0.00    0.00  0.00  
 Average 1999-
2001         29.71  
(2) Sugar 1999 50% reduction 
of payable VAT liability      100.56  100.56 25 
 2000 Total:      431.41  431.41  
  Interest rate support for investment loans      27.00  27.00 26 
  50% reduction of payable VAT liability      31.17  31.17  
  Compensation for the differences between market and applied exchange rates      37.44  37.44  
  Interest rate support to purchase 
sugarcane 
during harvest time
27      24.80  24.80 28 
                                                      
24 The State provides interest rate support to enable trading enterprises to purchase rice during the harvest time when the domes tic market prices drop sharply causing 
losses to farmers. 
25 Decision No.854/2000/QD-TTg of 7/9/2000 and No.194/1999/QD-TTg of 23/9/1999. 
26 Decision No.854/2000/QD-TTg of 7/9/2000 and No.194/1999/QD-TTg of 23/9/1999. 
27 The State provides interest rate support to enable trading enterprises to purchase sugar during the harvest time when the dome stic market prices drop sharply causing 
losses to farmers.  
  WT/ACC/SPEC/VNM/3
 Page 15Description of 
basic product Calendar year Measure 
type(s) Applied 
administered 
price (1,000 
Dong/ton) Production 
eligible to 
receive the 
applied 
administered 
price (1,000 
tons) Market price 
support 
budgetary 
outlays 
(billion Dong) Equivalent 
measurement 
of support 
(EMS) (billion 
Dong) Non-exempt 
direct 
payments 
(billion Dong) Other product-
specific 
support 
(billion Dong) Associated 
fees/levies 
(billion Dong) Total 
monetary 
value of 
equivalent 
commitment 
(billion Dong) Data sources 
1 2 3 4 5 6 7 8 9 10 11= (7+8+9-
10) 12 
  - Finace working 
capital      50.00  50.00  
  Support to 
develop the 
areas of sugarcane growing (funded by the provincial budgets)      261.00  261.00 29 
 2001 Total      187.56  187.56  
  Support to develop the areas of sugarcane 
growing (funded 
by the provincial budgets)      150.00  150.00  
  - Support to 
cover losses 
caused by exchange rate fluctuation      37.56  37.56  
 Average 1999-
2001         239.84  
1999 Interest rate 
support to purchase pork
30  1.86    3.20  3.20 MARD 
2000       0.00  0.00  
2001       0.00  0.00  (3) Pork   
Average 1999-
2001         1.06  
                                                                                                                                                                                                                                                                    
28 Government Official document No.562/2000/CP-NN of 7/6/2000. 
29 Report No. 972/BC/KN-KL of 15/10/2001. 
30 The State provides interest rate support to enable trading enterp rises to purchase pork  when the domestic market prices drop sharply causing losses to farmers.  
 WT/ACC/SPEC/VNM/3 
Page 16 
Description of 
basic product Calendar year Measure 
type(s) Applied 
administered 
price (1,000 
Dong/ton) Production 
eligible to 
receive the 
applied 
administered 
price (1,000 
tons) Market price 
support 
budgetary 
outlays 
(billion Dong) Equivalent 
measurement 
of support 
(EMS) (billion 
Dong) Non-exempt 
direct 
payments 
(billion Dong) Other product-
specific 
support 
(billion Dong) Associated 
fees/levies 
(billion Dong) Total 
monetary 
value of 
equivalent 
commitment 
(billion Dong) Data sources 
1 2 3 4 5 6 7 8 9 10 11= (7+8+9-
10) 12 
1999 Support to cover 
losses of purchasing   raw cotton produced by farmers
31      2.00  2.00 MOF, MARD 
2000       0.00  0.00  
2001 Support to cover losses of purchasing raw cotton produced by farmers         3.84  (4) Cotton  
Average 1999-
2001         1.95  
 
                                                      
31 Support to cover losses of purchasing  raw cotton produced by farmers : Cotton plants are required by the Government to purcha se the whole quantity of raw cotton 
produced by farmers at a minimum determined  price to protect farmers' income. As a result, cotton plants usually suffer losses due to the sharp drop of cotton price in the world 
market that significantly influence on the price of domestically produced cotton (textiles plants would only purchase cotton su pplied by the domestic cotton plants at respective 
low price). The Government provides financial payments to assist the cotton plants to cover these losses.  
  WT/ACC/SPEC/VNM/3
 Page 17Supporting Table DS:9 
Domestic Support: Viet Nam 
Reporting period: 1999 – 2001 
 
Non-Product-Specific AMS 
 
Measure type(s) Calendar year Non-product-specific 
budgetary outlays 
(billion Dong) Other non-product-
specific support 
(billion Dong) Associated 
fees/levies Total non-product-
specific support 
(billion Dong) Data sources 
1 2 3 4 5 6 = (3+4-5) 7 
1999 N/a   N/a MOFς 
2000 N/a   N/a  
20001 700.00   700.00  100% agricultural land use 
tax-free for extremely 
disadvantaged areas and 50% for those growing rice and 
coffee Average 1999-
2001    233.33  
1999 N/a   N/a  
2000 N/a   N/a  
20001 N/a   N/a  Incentives relating to land32 
Average 1999-
2001    N/a  
1999 N/a   N/a  
2000 N/a   N/a  
20001 N/a   N/a  Value-added tax incentives33 
Average 1999-
2001    N/a  
1999 101.82   101.82  
2000 147.72   147.72  
2001 301.82   301.82  Support to cover losses  for 
electricity used in irrigation34 
Average 1999-
2001    183.79  
                                                      
 
32 Ministry of Finance’s Circular No.44/1999/TT-BTC of 26 April 1999 provided guideline for tax incentives to cooperatives. Agric ulture service supplying cooperatives 
in mountainous areas are exempted from land rental, th ose in other areas enjoys 50% land rental off. 
33 Ministry of Finance’s Circular No.122/2 000/TT-BTC of 29 December 2000 provided gui deline for implementation of Law on Value-ad ded Tax.  Under provision of 
Article 4 of Law on Value-added Tax, unprocessed agricultural products produced and traded to the market by organisations or in dividuals are not subject to value-added tax. 
Also according to the above mentioned Circular and Article 10 of Law on Value-added Tax, input VAT amount is presumptively dedu cted at 2% or 3% of the purchase 
value with regard to unprocessed agricultural products and forest  products (uniformly applicable to domestic trade and exportat ion). 
34 The Government have charged at the averag e of 572.72 Dong/kwh for electricity used in water pumping, irrigation in comparison with the average of 700 Dong/kwh 
for other sectors. The difference will be co vered by the Government. The electricity consumption in agriculture is 800 million kwh per annual.  
 WT/ACC/SPEC/VNM/3 
Page 18 Measure type(s) Calendar year Non-product-specific 
budgetary outlays 
(billion Dong) Other non-product-
specific support 
(billion Dong) Associated 
fees/levies Total non-product-
specific support 
(billion Dong) Data sources 
1 2 3 4 5 6 = (3+4-5) 7 
1999 1,010.00   1,010.00  
2000 1,005.00   1,005.00  
2001 999.00   999.00  Support  irrigation fee35 
Average 1999-
2001    1,088.45  
1999    1,111.82  
2000    1,152.72  
2001    2,000.82  Total 
Average 1999-
2001    1,421.79  
 
 
                                                      
35 Under Decree No.112 of the Government dated 25 August 1984, basic amortization, considerable repair of irrigation works and ma chinery (estimated round 3,300 
billion Dong per annual) are not calculated and considered subsid ies for agriculture. According to  this provision, irrigation f ee should be 1,500 billion Dong per annual. In fact, 
due to farmers’ difficulties, the total received in 1999 was 490 b illion Dong, 2000: 495 billion Do ng and 2001: 501 billion Don g. The Government has covered unpaid fee 
according to the Prime Minister’s Decision  No. 1116/QD/Ttg date d 22 August 2001.  
  WT/ACC/SPEC/VNM/3
 Page 19Supporting Table ES:1 
Export subsidies: Viet Nam 
Reporting period: 1999 – 2001 
 
Export Subsidies: Outlay and Quantity 
 
Total product specific export subsidies 
(billion Dong) Quantity of subsidized exports 
(1,000 tons) Description of 
products Direct export 
subsidies Sales of 
stocks 
(billion 
Dong) Producer 
financed 
subsidies 
(billion 
Dong) Cost 
reduction 
measures 
(billion 
Dong) Internal 
transport 
subsidies 
(billion 
Dong) 1999 2000 2001 Average 
1999-
2001 1999 2000 2001 Average 
1999-
2001 Data 
sources 
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 
Product-specific 
subsidies               
(1) Rice Total:     486.00 600.00 822.77 636.26 1,900 2,500 3,730 2,710  
 Provision of interest 
rate support to rice 
export enterprises     123.00.. 180.00 380.00  650 1,000   MARD36 
 Provision of interest 
rate support in cases 
of rice export transactions with 
deferred payments     30.00 100.00   300.00 1,000   MOF 
 Support to cover 
losses of rice export 
enterprises     180.00 320.00 330.00      MOF 
 Provision of short 
term interest rate 
support in cases of 
rice export transactions     N/a N/a 0.27       
 Export bonus 
     N/a N/a 112.50    3,730   
(2)  Pork Total     49.70 31.30 31.48 37.49 7.10 9.50 20.00 12.20 MOF; 37 
 Support to cover 
losses of pork export 
transactions 
     49.70 31.30   7.10 9.50    
 Export bonus       26.10    20.00   
 Provision of short 
term interest rate support in cases of 
pork export 
transactions       0.07       
                                                      
36 Prime Minister's Decision No.250/1998/QD-TTg of 24/12/1998; Government Official Document No.275/CP-KTTH of 18/3/1999 and No.10 39/CP-KTTH of 
30/9/1999; Prime Minister's Decision No.35/2000/QD-TTg of 21/3/2000 
37 Prime Minister's Decision No.933/1999/QD-TTg of 28/10/1999 and No.540/2000/QD-TTg.  
 WT/ACC/SPEC/VNM/3 
Page 20 Total product specific export subsidies 
(billion Dong) Quantity of subsidized exports 
(1,000 tons) Description of 
products Direct export 
subsidies Sales of 
stocks 
(billion 
Dong) Producer 
financed 
subsidies 
(billion 
Dong) Cost 
reduction 
measures 
(billion 
Dong) Internal 
transport 
subsidies 
(billion 
Dong) 1999 2000 2001 Average 
1999-
2001 1999 2000 2001 Average 
1999-
2001 Data 
sources 
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 
 - Provision of 
support to certain 
markets       5.31      MOF 
(3) Coffee Total:     203.00 348.60 536.35 362.65 50 198.7 932 393.57  
 Refund of export 
surcharges; support 
to cover losses of trading enterprises 
who have bought 
coffee for temporary storage for suitable 
export opportunities     53.00 147.00   50 138.7   MOF; 
38 
 Support to cover 
losses of coffee export enterprises      150.00 180.00 350.00      MOF 
 Provision of interest 
rate support to assist 
export enterprises to 
purchase coffee for temporary storage 
for suitable export 
opportunities      21.60 100.00   60   MARD; 
39 
 - Export bonus       86.24    932.00   
 Provision of short 
term interest rate support in cases of 
coffee export 
transactions       0.11       
(4) Vegetables and 
fruits   Total     12.00 9.90 165.00 62.30 15 12.00 N/a 9.00 MOF; 40 
 Support to export 
vegetables and fruits such as canned 
pineapples, 
cucumbers, etc. to Russian, US 
markets, etc.     12.00 9.90 16.50  15.00 12.00    
 - Export bonus       148.50       
(5) Export bonus 
upon 
performance      ... ... 10.55 3.52     MOF 
                                                      
38  Government Official Document No.30/CP-KTTH of 11/1/2001. 
39  Prime Minister's Decision No.1067/2000/QD-TTg of  27/10/2000. 
40  Government Official Document No.977/CP-KTTH of  13/9/1999.  
  WT/ACC/SPEC/VNM/3
 Page 21Total product specific export subsidies 
(billion Dong) Quantity of subsidized exports 
(1,000 tons) Description of 
products Direct export 
subsidies Sales of 
stocks 
(billion 
Dong) Producer 
financed 
subsidies 
(billion 
Dong) Cost 
reduction 
measures 
(billion 
Dong) Internal 
transport 
subsidies 
(billion 
Dong) 1999 2000 2001 Average 
1999-
2001 1999 2000 2001 Average 
1999-
2001 Data 
sources 
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 
(6) Export 
promotion      ... 0.60 2.75 1.12      
Grand Total      750.70 989.80 1,568.91 1,103.14      
 
 
 WT/ACC/SPEC/VNM/3 
Page 22  
 
 ANNEX 
 
Official exchange rate:
 
  This exchange rate was used  in calculation of all programmes of domestic support and export 
subsidies. 
  Currency unit: Dong (Vietnamese Dong)   1999: US$ 1 = 13,944 Dong 
 2000: US$ 1 = 14,146 Dong 
 2001: US$ 1 = 14,815 Dong  Data sources: GDS.  
 
Explanation of abbreviations for relevant agencies:
 
 
AFESD Agricultural and Forestry Extension Services Department DAF Development Assistance Fund DARNEZ Department of Agricultural Resettlement and New Economic Zone 
DPP Department of Plant Protection 
DVQ Department of Veterinary Quarantine GDS General Department of Statistics MARD Ministry of Agriculture and Rural Development MOF Ministry of Finance 
MOSTE Ministry of Science, Technology and Environment 
MPI Ministry of Planning and Investment SB State Bank Prov Provinces 
 Abbreviations:
 
 
N/a Data not available 
 
__________