RESTRICTEDWORLD TRADE
ORGANIZATIONWT/ACC/VNM/13
27 June 2000
(00-2610)
Working Party on the
Accession of VietnamOriginal:  English
ACCESSION OF VIETNAM
Notification on Industrial Subsidies
The Government of the Socialist Republic of Vietnam has submitted the following
Notification on Industrial Subsidies Pursuant to Article XVI:1 of the GATT 1994 and Article 25 of
the Agreement on Subsidies and Countervailing Measures, with the request that it be circulated to the
members of the Working Party.
_______________WT/ACC/VNM/13
Page i
TABLE OF CONTENTS
Page No.
I. SUPPORT FOR CERTAIN ENTERPRISES TO RESTRUCTURE 1II. SUPPORT FOR ENTERPRISES WITH FOREIGN OWNED CAPITAL
WHICH PRODUCE GOODS FOR EXPORT2
III. SUPPORT FOR DOMESTIC ENTERPRISES WHICH PRODUCE GOODS
FOR EXPORT4
IV. SUPPORT FOR DOMESTIC ENTERPRISES WHICH OPERATE IN
CERTAIN BUSINESS FIELDS AND SECTORS7
V. SUPPORT FOR ENTERPRISES WITH FOREIGN OWNED CAPITAL
WHICH OPERATE IN CERTAIN BUSINESS FIELDS AND SECTORS9
VI. SUPPORT FOR DOMESTIC ENTERPRISES WHICH OPERATE IN
CERTAIN AREAS12
VII. SUPPORT FOR ENTERPRISES WITH FOREIGN OWNED CAPITAL
WHICH OPERATE IN CERTAIN AREAS16
VIII. PREFERENTIAL CREDIT FOR ELECTRICAL MATERIAL ENTERPRISES 18
IX. SUPPORT FOR PRODUCTION UNITS FACING DIFFICULTIES, FOR
NEWLY SET UP OR EXPANDED PRODUCTION UNITS, FOR
PRODUCTION UNITS APPLYING NEW PRODUCTION TECHNOLOGY19
X. ASSISTANCE FOR STATE-OWNED PUBLIC UTILITY ENTERPRISES 20
APPENDIX I
- List A on business fields and sectors eligible for investment preferential
treatment
- List of projects where investment is especially encouraged
- List of projects where investment is encouraged23
26
27WT/ACC/VNM/13
Page 1
I. SUPPORT FOR CERTAIN ENTERPRISES TO RESTRUCTURE
1. Title of the subsidy program
Support for certain socially and economically important enterprises employing a large number
of labourers  which are facing great difficulties in their business.
2. Period covered by the notification
1996-1998
3. Policy objectives and/or purposes of the subsidy
To promote the restructuring and rationalization for improving production efficiency of
certain socially and economically important enterprises employing a large number of laborers
which are facing great difficulties in their business with the view to securing employment and
maintaining production stability and social security.
4. Background and authority for the subsidy
- Ministry of Finance;
- Ministry of Industry.
5. Form of the subsidy
- Preferential credits;
- Capital tax exemption;
- Turnover tax exemption;
- Deferral payment of land rental.
6. To whom and how the subsidy is provided
Supports are provided to certain socially and economically important enterprises employing a
large number of labourers, which are facing serious difficulties in their business with bulkstocks of unsold products due to impacts of the national economy’s transformation.
7. Total amount or the annual amount budgeted for the subsidy
Enterprises receiving
subsidyForm of subsidy Total budgeted amount Duration of
subsidy
Vietnam National
Textiles and GarmentsCorporationAccess to loans at preferential
lending rate of 0.81% per month
1
within the terms of  7 – 10 yearsTotal credit:
-- 1997: 93 billion VND;-- 1998: 266 billion VND;1997-1998
Capital tax exemption for 3 years 10 b illion VND 1996-1998
Turnover tax exemption 20 billion VND 3 yearsNam Dinh Textiles
Company
Access to credits at preferential
lending rate of 1% per yearTotal credit:
6.7 million USDCredit term:
40 years asfrom 1998.
                                                     
1 Normal commercial lending rate:  1.1 – 1.25 % per month.WT/ACC/VNM/13
Page 2
Enterprises receiving
subsidyForm of subsidy Total budgeted amount Duration of
subsidy
Capital tax exemption 10 billion VND 1996-1998
Turnover tax exemption 15 billion VND 3 years
Access to investment credit atpreferential lending rate of 4% peryearTotal credit:
3 million USDCredit term:
10 years asfrom 19978-3 Textiles Company
Deferral payment of land rental 5 billion VND 5 years
Vinh Phu Textiles
CompanyAccess to investment credit at
preferential lending rate of 5% peryear plus relevant expensesTotal credit:
4.6 million USD15 years plus
a four-yeargrace period
Viet Nam National SteelCorporationAccess to loans at preferential
lending rateTotal credit:
-- 1997: 102 billion VND;-- 1998: 111 billion VND;1997-1998
Thai Nguyen Cast-Iron
and Steel CompanyEntitled to a cost price reduction
of stocks of unsold products.1997:  63 b illion VND 1997
8. Duration of the subsidy and/or any other time-limit attached to it
See the detailed table above.
9. Statistic data permitting an assessment of the trade effects of the subsidy
The trade effect of the assistance are difficult to assess because the relevant data are not
available and too scattered to be collected and the objective of the assistance is to assist thereadjustment and restructuring of certain enterprises employing a large number of laborers,
which are of great importance to the economy and society so as to ensure full employment
and social stability.
II. SUPPORT FOR ENTERPRISES WITH FOREIGN OWNED CAPITAL
2 WHICH
PRODUCE GOODS FOR EXPORT
1. Title of the subsidy program
Support for enterprises with foreign owned capital which produce goods for export.
2. Period covered by the notification
1996-1998
3. Policy objectives and/or purposes of the subsidy
The objective is to encourage foreign investment in export-producing sectors.
4. Background and authority for the subsidy
- Law on Foreign Investment in Vietnam dated 12 November 1996;
- Decree No.12-CP dated 18 February 1997 of the Government providing detailed
regulations on the implementation of the Law on Foreign Investment in Vietnam;
                                                     
2 An enterprise with foreign owned capital includes a joint venture enterprise and an enterprise with
one hundred (100) per cent foreign owned capital (Article 2.6, Law on Foreign Investment  in Vietnam dated 12November 1996)WT/ACC/VNM/13
Page 3
- Decree No.10/1998/ND-CP dated 23 Januar y 1998 of the Government on a number
of measures to encourage and guarantee foreign direct investment activities in
Vietnam;
- Law on the Amendment of and Addition to a number of Articles of the Law on
Profits Tax dated 6 July 1993;
- Ministry of Finance.
5. Form of the subsidy
Preferential profits tax rates3.
6. To whom and how the subsidy is provided
Enterprises with foreign owned capital which satisfy the specified criteria contingent upon
their export performance are entitled to preferential profits tax rates as follows: :
A profits tax rate of 20% shall be applied for a period of 10 years from the time when the
project commences its production or business activities to investment projects which export
of at least 50% of products; Additionally, the above described projects shall be exempted
from profits tax for 1 year commencing from the time when their operations start to earn
profits and shall be granted a 50% reduction for the 2 subsequent years; and shall be entitled
to a refund of any profits tax already paid at the rate of 50% upon satisfying specifiedreinvestment conditions;
A profits tax rate of 15% shall be applied for a period of 12 years from the time when the
project commences its production or business activities to investment projects which export
of at least 80% of products; Additionally, the above described projects shall be exempted
from profits tax for 2 year commencing from the time when their operations start to earnprofits and shall be granted a 50% reduction for the 3 subsequent years; and shall be entitled
to a refund of any profits tax already paid at the rate of 75% upon satisfying specified
reinvestment conditions;
A profits tax rate of 10% shall be applied for a period of 15 years from the time when the
project commences its production or business activities to investment projects which export100% of products; Additionally, the above described projects shall be exempted from profits
tax for 4 year commencing from the time when their operations start to earn profits and shall
be granted a 50% reduction for the 4 subsequent years; and shall be entitled to a refund of any
profits tax already paid at the rate of 100% upon satisfying specified reinvestment conditions;
7. Subsidy per unit, or in case where this is not possible, the total amount or the annual
amount budgeted for the subsidy
Data not available.
8. Duration of the subsidy and/or any other time-limit attached to it
1993 -
9. Statistic data permitting an assessment of the trade effects of the subsidy
Data not available.
                                                     
3 Normal profits tax rate generally applied for enterprises with foreign owned capital is 25% on the
profits earned.WT/ACC/VNM/13
Page 4
III. SUPPORT FOR DOMESTIC ENTERPRISES WHICH PRODUCE GOODS FOR
EXPORT
1. Title of the subsidy program
Support for domestic enterprises which produce goods for export.
2. Period covered by the notification
1996-1998
3. Policy objectives and/or purposes of the subsidy
The objective is to encourage and promote domestic enterprises to engage in the production
of export goods.
4. Background and authority for the subsidy
- Law on Promotion of Domestic Investment dated 22 June 1994;
- Decree No.29-CP dated 12 May 1995 providing detailed regulations on the
implementation of the Law on Promotion of Domestic Investment;
- Decree No.07/1998/ND-CP dated 15 January 1998 providing detailed regulations on
the the Law on Promotion of Domestic Investment (amended);
- Decision No.151/TTg dated 12 April 1993 on the setting up, use and management of
the Price Stabilization Fund;
- Decision No.764/QD-TTg dated 24 August 1998 on the setting up of Export Reward
Fund;
- Decision No.808/TTg dated 9 December 1995 of the Prime Minister on the setting up
of the National Investment Promotion Fund;
- Decision No.462/TTg dated 9 July 1996 on the approval of the Charter of the
National Investment Promotion Fund;
- Decision No.82/1998/QD-TTg dated 15 April 1998 on the Amendment of the Charter
of the National Investment Promotion Fund;
- Decision No.178/QD-TTg dated 19 September 1998 on granting banks’ loan interest
rate support for certain exported goods;
- Ministry of Finance;
- Ministry of Trade;
- State Bank of Vietnam.
5. Form of the subsidy
- Export reward;
- Tax concessions;
- Preferential credits;
- Preferential credit guarantees;
- Other preferential measures.
6. To whom and how the subsidy is provided
Eligible recipients of the following support m easures include domestic enterprises investing
in building or expanding establishments specialized in the production and processing ofWT/ACC/VNM/13
Page 5
materials and auxiliary materials for the production of export goods and improving their
production capacities, research & development, technology renovation.
a) Export reward:
Domestic exporting enterprises which satisfy one of the following criteria are entitled to
considerations for reward from the Export Reward Fund:
- Exporting for the first time products (or a category of products) produced in Vietnam
to abroad markets, and/or to new export markets with profits;
- Expanding existing export markets or finding new export markets for Vietnamese
export goods with high efficiency;
- Producing and exporting high-quality products that have been awarded medals at
international exhibitions/fairs organised abroad or certificates issued by competent
international product quality organisations;
- Exporting goods with the consumption of a large quantity of domestic materials
(accounting for at least 60% of the goods va lue) or the employment of large numbers
of domestic laborers during their domestic production - processing;
- Exporting products which are not subject to export quotas or allocated export
quantities with the annual export value of USD 50 million or more.
In case an enterprise has satisfied a number of criteria prescribed above at the same time, that
enterprise will be considered for export reward separately for each criterion but the total
reward shall not exceed 300 million VND per enterprise per year.
b) Tax concessions:
Investment projects if involving in the exploitation of mineral resources (except for oil and
gas) shall be entitled to a maximum 50% reduction of natural resources tax for the first 3
years from the time when the exploitation commences.
Production, transport, trade and service establishments investing in export production sectors
shall be entitled to a 50% reduction of the payable turnover tax amount for 1 year from the
month the taxable turnover is made; be exempt from profits tax for the first 2 years from thetime the taxable profits is generated and entitled to a 50% reduction of the payable profits tax
amount for the subsequent 3 years.
c) Preferential credits:
Regarding a number of important export commodities eligible for development priority
according to the List prescribed by the Govern ment, in cases where the international market
prices of such commodities fall or the domestic prices of materials and raw materials for the
production of such export commodities rise, thus causing big losses for the establishmentswhich produce export goods, such establishments shall be considered for being granted
interest rate support through Price Stabilization Fund;
The National Investment Promotion Fund shall partially subsidizes the lending interest rates
for loans granted by the Bank for Investment  and Development and State-owned commercial
banks to projects investing in the production of goods for export. The subsidy level shall beequal to the difference between the lending interest rate set by the Bank for Investment andWT/ACC/VNM/13
Page 6
Development or the State-owned commercial bank  where the investor borrows capital and the
lending interest rate set by the National Investment Promotion Fund at the time of capital
borrowing, and such subsidy shall be provided to the investor only after he/she has repaid the
principal of the loan.
Establishments involved in the production of goods for export or production of raw materials
and/or materials in direct service of the production of goods for export, which are entitled to
investment incentives/privileges, shall be gr anted export credit loans by the Bank for the
Investment and Development and the State-owned commercial banks, including loans for the
purchase of export goods and loans for the expansion of establishments producing export
goods. In cases where such banks fail to have sufficient capital for lending, the State Bank of
Vietnam shall be responsible for granting the above mentioned banks with loans as
reallocated capital in accordance with the current regulations of the State Bank of Vietnam.
Investment projects for the production of export goods or the production of raw materials and
materials in direct service of the production of export goods shall be entitled to export credit
loans granted by the State-owned commercial banks at preferential interest rate.
The Government allows commercial banks to provide interest rate support to enterprises
which produce and/or trade in certain export products4 in forms of grant loans at preferential
lending interest rate of 0.2% per month lower than the normal interest rates applicable for
export credit loans that commercial banks are generally imposing.
d) Preferential credit guarantees:
The National Investment Promotion Fund shall provide investment credit guarantee for
projects investing in export production sectors.
Investment projects for the production of export goods or the production of raw materials and
materials in direct service of the production of export goods shall be entitled to guarantee
granted by the National Investment Promotion Fund for export credits.
Establishments involved in the production of goods for export or production of raw materials
and/or materials in direct service of the production of goods for export, which are entitled toinvestment incentives/privileges, shall be granted export credit guarantee by the Bank for the
Investment and Development and th e State-owned commercial banks.
e) Other preferential measures:
Investment projects for the production of export goods or the production of raw materials and
materials in direct service of the production of export goods shall be entitled to shortening by
half the duration for depreciation of fixed assets which are used in the production, processing
or assembly of export goods.
7. Subsidy per unit, or in case where this is not possible, the total amount or the annual
amount budgeted for the subsidy
Data not available.
                                                     
4 Computer software; certain mechanical products including diesel engines, power engines, bicycles,
electric fans.WT/ACC/VNM/13
Page 7
8. Duration of the subsidy and/or any other time-limit attached to it
1998 -
9. Statistic data permitting an assessment of the trade effects of the subsidy
Data not available.
IV. SUPPORT FOR DOMESTIC ENTERPRISES WHICH OPERATE IN CERTAIN
BUSINESS FIELDS AND SECTORS
1. Title of the subsidy program
Support for domestic enterprises which operate in certain business fields and sectors
2. Period covered by the notification
1996-1998
3. Policy objectives and/or purposes of the subsidy
To encourage and promote various economic sectors to invest in  production and trade  in
certain business fields and sectors which are granted investment incentives and privileges by
the State for socio-economic development.
4. Background and authority for the subsidy
- Law on Promotion of Domestic Investment dated 22 June 1994;
- Decree No.29-CP dated 12 May 1995 providing detailed regulations on the
implementation of the Law on Promotion of Domestic Investment;
- Decree No.07/1998/ND-CP dated 15 January 1998 providing detailed regulations on
the the Law on Promotion of Domestic Investment (amended);
- Decree No.36-CP dated 24 April 1997 promulgating the Regulations on Industrial
Parks, Export-Processing Zones and High-tech Parks;
- Decision No.808/TTg dated 9 December 1995 of the Prime Minister on the setting up
of the National Investment Promotion Fund;
- Decision No.462/TTg dated 9 July 1996 on the approval of the Charter of the
National Investment Promotion Fund;
- Decision No.82/1998/QD-TTg dated 15 April 1998 on the Amendment of the Charter
of the National Investment Promotion Fund;
- Ministry of Finance;
5. Form of the subsidy
- Tax concessions;
- Preferential credits;
- Preferential credit guarantees;- Other preferential measures;WT/ACC/VNM/13
Page 8
6. To whom and how the subsidy is provided
Eligible recipients of the following support m easures include domestic enterprises investing
in business fields and sectors to be encouraged under the List A issued together with the
Decree No.07/1998/ND-CP dated 15 January 1998 providing detailed regulations on the the
Law on Promotion of Domest ic Investment (amended).
a) Tax concessions:
Production, transport, trade and service establishments investing in business fields and sectors
prescribed above shall be entitled to a 50% reduction of the payable turnover tax amount for 1
year from the month the taxable turnover is made; be exempt from profits tax for the first 2
years from the time when the taxable profits is generated and entitled to a 50% reduction of
the payable profits tax amount for the subsequent 3 years.
Production, transport, trade and service establishments investing in business fields and sectors
prescribed above and satisfying one or more of the following conditions shall be entitled to a
50% reduction of the payable profits tax amount for 1 more year:
Investment in production establishments that use technologies contingent upon one of the
following factors:
- Technology to produce export goods or import substitutes;
- Technology which, upon its practical application, is able to lead on to renovation of
technology and equipment in other business fields and sectors;
- Technology that uses domestic materials to manufacture final products with quality
higher than that of existing products of the same type;
- Clean technology; technology that makes full use of solid, liquid and gas waste
matters.
- Investment in production and/or trade projects which annually employ at least an
average number of:
- 100 labourers for urban areas of the 1st and 2nd categories;
- 50 labourers for areas other than urban areas, areas of ethnic minorities, mountain or
island areas or other difficult areas eligible for preferential treatment.
Investment projects on List A, if involving in the exploitation of mineral resources (except for
oil and gas), shall be entitled to a maximum 50% reduction of natural resources tax for the
first 3 years from the time the exploitation commences.
b) Preferential credits:
The National Investment Promotion Fund shall partially subsidizes the lending interest rates
for loans granted by the Bank for Investment and Development and State-owned commercialbanks to projects investing in the production of goods for export. The subsidy level shall be
equal to the difference between the lending interest rate set by the Bank for Investment and
Development or the State-owned commercial bank  where the investor borrows capital and the
lending interest rate set by the National Investment Promotion Fund at the time of capital
borrowing, and such subsidy shall be provided to the investor only after he/she has repaid theprincipal of the loan.
c) Preferential credit guarantees:
The National Investment Promotion Fund shall provide investment credit guarantee for
investment projects on the List A.WT/ACC/VNM/13
Page 9
d) Other preferential measures:
Enterprises with investment projects for infrastructure construction and business in industrial
parks, export-processing zones or high-tech parks shall be entitled to a 50% reduction of the
land rental for 5 years from the time the land-renting contract is signed.
Enterprises with investment projects prescribed in List A in industrial parks, export-
processing zones or high-tech parks shall be entitled to a 50% reduction of the land ground
rental at the original renting price set by the State, excluding the value of infrastructure
constructions owned by domestic infrastructure development companies, for 5 years from the
time the ground-renting contract is signed.
7. Subsidy per unit, or in case where this is not possible, the total amount or the annual
amount budgeted for the subsidy
Data not available.
8. Duration of the subsidy and/or any other time-limit attached to it
1998 -
9. Statistic data permitting an assessment of the trade effects of the subsidy
The trade effect is insignificant.
V. SUPPORT FOR ENTERPRISE WITH FOREIGN OWNED CAPITAL WHICH
OPERATE IN CERTAIN BUSINESS FIELDS AND SECTORS
1. Title of the subsidy program
Support for enterprises with foreign owned capital which operate in certain business fields
and sectors.
2. Period covered by the notification
1996-1998.
3. Policy objectives and/or purposes of the subsidy
To encourage and promote foreign investment in certain business fields and sectors for the
cause of industrialization and modernization, national economic development on the basis offull and effective exploitation and utilization of domestic resources.
4. Background and authority for the subsidy
- Law on Foreign Investment in Vietnam dated 12 November 1996;
- Decree No.12-CP dated 18 February 1997 of the Government providing detailed
regulations on the implementation of the Law on Foreign Investment in Vietnam;
- Decree No.10/1998/ND-CP dated 23 Januar y 1998 of the Government on a number
of measures to encourage and guarantee foreign direct investment activities inVietnam;WT/ACC/VNM/13
Page 10
- Law on the Amendment of and Addition to a number of Articles of the Law on
Profits Tax dated 6 July 1993;
- Decree No.36-CP dated 24 April 1997 promulgating the Regulations on Industrial
Parks, Export-Processing Zones and High-tech Parks;
- Ministry of Finance.
5. Form of the subsidy
- Tax concessions.
6. To whom and how the subsidy is provided
Enterprises with foreign owned capital and foreign parties to business cooperation contracts
which invest in projects eligible for investment incentives shall be entitled to the profits tax
concessions as follows:
Regarding projects satisfying one of the following criteria, a profits tax rate of 20% shall be
applied for a period of 10 years from the time when the project commences its production or
business activities; additionally, these projects shall be exempted from profits tax for 1 year
commencing from the time when their operations start to earn profits and shall be granted a
50% reduction for the 2 subsequent years; and shall be entitled to a refund of any profits tax
already paid at the rate of 50% upon satisfying specified reinvestment conditions:
- Employing 500 or more labourers;
- Cultivating and/or processing of agricultural, forestry or aquatic products;
- Applying advanced technology or investing in research and development;
- Intensive use of materials and supplies available in Vietnam; efficient processing and
exploitation of natural resources in Vietnam; obtaining a high localization rate inproduction as required by the relevant provisions regulating each particular field.
Regarding projects satisfying one of the following criteria, a profits tax rate of 15% shall be
applied for a period of 12 years from the time when the project commences its production or
business activities; additionally, these projects shall be exempted from profits tax for 2 year
commencing from the time when their operations start to earn profits and shall be granted a50% reduction for the 3 subsequent years; and shall be entitled to a refund of any profits tax
already paid at the rate of 75% upon satisfying specified reinvestment conditions:
- Investing in the fields of metallurgy, basic chemicals, machinery manufacturing,
petrochemicals, fertilizers and manufacture of electronics components, automobiles
and motorcycle spare parts;
- Constructing and operating infrastructure projects (bridges, roads, water supply and
drainage systems, electricity, construction of seaports and so forth);
- Cultivating perennial industrial crops;
- Assigning assets to the State of Vietnam after the expiration of the duration of
operation without any compensation requirement (including hotel projects);
- Projects satisfying two of the criteria prescribed in the above paragraph.
Regarding projects satisfying one of the following criteria, a profits tax rate of 10% shall be
applied for a period of 15 years from the time when the project commences its production or
business activities; additionally, these projects shall be exempted from profits tax for 4 year
commencing from the time when their operations start to earn profits and shall be granted a
50% reduction for the 4 subsequent years; and shall be entitled to a refund of any profits tax
already paid at the rate of 100% upon satisfying specified reinvestment conditions:WT/ACC/VNM/13
Page 11
- Afforestation;
- Projects in the List of projects in which investment is specially encouraged;
(Normal profits tax rate generally applied for enterprises with foreign owned capital and
foreign parties to business cooperation contracts is 25% on the profits earned).
Large scale projects having a significant socio-economic impact which are specified in the
List of projects where investment is specially encouraged shall be exempted from profits tax
for 8 years commencing from the time when their operations start to earn profits.
Apart from the projects which are entitled to profits tax exemption for 8 years under Article
56.4 of Decree No.12-CP, investment projects in the List of projects where investment is
specially encouraged as stated in the Appendix  I attached to Decree No.10/1998/ND-CP dated
23 January 1998 of the Government on a number of measures to encourage and guarantee
foreign direct investment activities in Vietnam shall be granted the preferential profits taxrates throughout the operating duration of the projects and entitled to profits tax exemption
for 4 years starting from the time when the profits are generated from business activities and a
50% reduction of profits tax for 4 subsequent years.
Investment projects in the List of projects where investment is specially encouraged as stated
in the Appendix I attached to Decree No.10/1998/ND-CP dated 23 January 1998 of theGovernment on a number of measures to encourage and guarantee foreign direct investment
activities in Vietnam shall be exempt from import duty on production materials for 5 years
from the commencement of production.
With respect to investment projects under BOT, BTO and BT contracts, projects for
infrastructure construction of industrial parks, export processing zones and investmentprojects in industrial parks, export processing zones, the preferential profits tax rates
stipulated in Article 54 of Decree 12-CP shall be applied throughout the duration of
implementation of the investment project.
Export-processing enterprises, high-tech industrial enterprises in industrial parks, export
processing zones and high-tech parks shall be entitled to a refund of any profits tax alreadypaid at the rate of 100% upon satisfying specified reinvestment conditions.
7. Subsidy per unit, or in case where this is not possible, the total amount or the annual
amount budgeted for the subsidy
Data not available.
8. Duration of the subsidy and/or any other time-limit attached to it
1993 -
9. Statistic data permitting an assessment of the trade effects of the subsidy
No data available.WT/ACC/VNM/13
Page 12
VI. SUPPORT FOR DOMESTIC ENTERPRISES WHICH OPERATE IN CERTAIN
AREAS
1. Title of the subsidy program
Support for domestic enterprises which operate in certain areas.
2. Period covered by the notification
1996-1998
3. Policy objectives and/or purposes of the subsidy
To encourage various economic sectors to invest in production and trade in mountainous,
remote areas/regions and other areas which are under harsh conditions or which are placed at
a social-economic disadvantage by their geographical situation with a view to stimulating the
socio-economic development therein.
4. Background and authority for the subsidy
- Law on Promotion of Domestic Investment dated 22 June 1994;
- Decree No.29-CP dated 12 May 1995 providing detailed regulations on the
implementation of the Law on Promotion of Domestic Investment;
- Decree No.07/1998/ND-CP dated 15 January 1998 providing detailed regulations on
the Law on Promotion of Domestic Investment (amended);
- Decision No.808/TTg dated 9 December 1995 of the Prime Minister on the setting up
of the National Investment Promotion Fund;
- Decision No.462/TTg dated 9 July 1996 on the approval of the Charter of the
National Investment Promotion Fund;
- Decision No.82/1998/QD-TTg dated 15 April 1998 on the Amendment of the Charter
of the National Investment Promotion Fund;
- Ministry of Finance;
5. Form of the subsidy
- Tax concessions
- Preferential credits;
- Preferential credit guarantees;
- Other preferential measures.
6. To whom and how the subsidy is provided
Eligible recipients of the following support m easures include domestic enterprises investing
in districts of ethnic minorities, mountainous and island areas to be granted the preferential
treatment (List B)5 and other difficult and disadvantaged areas (List C)5.
a) Tax concessions:
- Production, transport, trade and service establishments investing in districts of ethnic
minorities and high-mountain areas as prescr ibed in Part I of List B, if annually
employing at least an average number of 20 labourers, shall be entitled to a 50%
                                                     
5 List B and List C are issued together with Decree No. 07/1998/ND-CP dated 15 January 1998
providing detailed regulations on the Law on Promotion of Domestic Investment (amended).WT/ACC/VNM/13
Page 13
reduction of the payable turnover tax amount for 4 years from the month the taxable
turnover is generated; be exempt from profits tax for the first 4 years from the time
the taxable profits are made and be entitled to a 50% reduction of the payable profits
tax amount for the subsequent 7 years.
- Production, transport, trade and service establishments investing in districts of ethnic
minorities and high-mountain areas as prescr ibed in Part I of List B, if annually
employing at least an average number of 20 labourers and satisfying one or more of
the following conditions, shall be entitled  to a 50% reduction of the payable profits
tax amount for 2 more years in addition to the preferential treatment specified above:
- Investment in business fields and sectors prescribed in List A issued together
with Decree No.07/1998/ND-CP dated 15 January 1998 providing detailed
regulations on the Law on Promotion of Domestic Investment (amended);
- Investment in production establishments that use technologies contingent
upon one of the following factors:
- Technology to produce export goods or import substitutes;
- Technology which, upon its practical application, is able to lead on to
renovation of technology and equipment in other business fields andsectors;
- Technology that uses domestic materials to manufacture final
products with quality higher than that of existing products of the
same type;
- Clean technology; technology that makes full use of solid, liquid and
gas waste matters.
- Production, transport, trade and service establishments investing in districts of ethnic
minorities, mountain and island areas as prescribed in Part II of List B, if if annually
employing at least an average number of 20 labourers, shall be entitled to a 50%
reduction of the payable turnover tax amount for 3 years from the month the taxableturnover is generated; be exempt from profits tax for the first 4 years from the time
the taxable profits are made and be entitled to a 50% reduction of the payable profits
tax amount for the subsequent 5 years.
- Production, transport, trade and service establishments investing in districts of ethnic
minorities, mountain and island areas as prescribed in Part II of List B, if annually
employing at least an average number of 20 labourers and satisfying one or more of
the following conditions, shall be entitled  to a 50% reduction of the payable profits
tax amount for 2 more years in addition to the preferential treatment specified above:
- Investment in business fields and sectors prescribed in List A issued together
with Decree No.07/1998/ND-CP dated 15 January 1998 providing detailed
regulations on the Law on Promotion of Domestic Investment (amended);
- Investment in production establishments that use technologies contingent
upon one of the following factors:
- Technology to produce export goods or import substitutes;
- Technology which, upon its practical application, is able to lead on to
renovation of technology and equipment in other business fields and
sectors;WT/ACC/VNM/13
Page 14
- Technology that uses domestic materials to manufacture final
products with quality higher than that of existing products of the
same type;
- Clean technology; technology that makes full use of solid, liquid and
gas waste matters.
- Production, transport, trade and service establishments investing in other difficult and
disadvantaged areas as prescribed in List C, if annually employing at least an average
number of 20 labourers, shall be entitled to a 50% reduction of the payable turnover
tax amount for 2 years from the month the taxable turnover is generated; be exempt
from profits tax for the first 3 years from the time the taxable profits are made and be
entitled to a 50% reduction of the payable profits tax amount for the subsequent 5
years.
- Production, transport, trade and service establishments investing in other difficult and
disadvantaged areas as prescribed in List C, if annually employing at least an average
number of 20 labourers and satisfying one or more of the following conditions, shall
be entitled to a 50% reduction of the payable profits tax amount for 2 more years in
addition to the preferential treatment specified above:
- Investment in business fields and sectors prescribed in List A issued together
with Decree No.07/1998/ND-CP dated 15 January 1998 providing detailed
regulations on the the Law on Promotion of Domestic Investment (amended);
- Investment in production establishments that use technologies contingent
upon one of the following factors:
- Technology to produce export goods or import substititutes;
- Technology which, upon its practical application, is able to lead on to
renovation of technology and equipment in other business fields and
sectors;
- Technology that uses domestic materials to manufacture final
products with quality higher than that of existing products of the
same type;
- Clean technology; technology that makes full use of solid, liquid and
gas waste matters.
- Investment projects carried out in areas in List B or List C, if involving in the
exploitation of mineral resources (except for oil and gas), shall be entitled to
a maximum 50% reduction of natural resources tax for the first 3 years fromthe time when the exploitation commences.
b) Preferential credits:
The National Investment Promotion Fund supports in vestment projects in List B and List C in
forms of providing mid-term and long-term loans at preferential lending interest rates. The
project’s investor shall be entitled to use assets purchased by this borrowing capital formortgages. The lending interest rates shall be decided by the Prime Minister on the basis of
the proposal of the Minister of Finance.
Establishments involved in the production of goods for export or production of raw materials
and/or materials in direct service of the production of goods for export, which are entitled to
investment incentives/privileges as prescribed in List B or List C, shall be granted exportcredit loans by the Bank for the Investment and Development and the State-ownedWT/ACC/VNM/13
Page 15
commercial banks, including loans for the purchase of export goods and loans for the
expansion of establishments producing export goods. In cases where such banks fail to have
sufficient capital for lending, the State Bank of Vietnam shall be responsible for granting the
above mentioned banks with loans as reallocated capital in accordance with the current
regulations of the State Bank of Vietnam.
c) Preferential credit guarantees:
Investment projects as prescribed in List B and List C shall be entitled to guarantee granted
by the National Investment Promo tion Fund for investment credits.
Establishments involved in the production of goods for export or production of raw materials
and/or materials in direct service of the production of goods for export, which are entitled to
investment incentives/privileges as prescribed in List B or List C, shall be granted export
credit guarantee by the Bank for the Investment and Development and the State-ownedcommercial banks.
d) Other preferential measures:
The minimum level of working capital required for import-export enterprises which have
registered their operations in the areas as prescribed in List B or List C shall be entitled to
50% lower than the generally required level of working capital.
Enterprises involved in agricultural, forestry, aquaculture, salt production and enterprises
investing in projects of business fields/sectors to be encouraged in List A which are carried
out in areas as prescribed in List B or List C, if allocated land by the State, shall be entitled to
exemption from land use payment; if renting land, shall be entitled to land rental exemption
for the first 5 years and a 50% reduction of the land rental for the subsequent 5 years from thetime the land-renting contracts are signed.
7. Subsidy per unit, or in case where this is not possible, the total amount or the annual
amount budgeted for the subsidy
Data not available.
8. Duration of the subsidy and/or any other time-limit attached to it
1998-
9. Statistic data permitting an assessment of the trade effects of the subsidy
Minimal.WT/ACC/VNM/13
Page 16
VII. SUPPORT FOR ENTERPRISES WITH FOREIGN OWNED CAPITAL WHICH
OPERATE IN CERTAIN AREAS
1. Title of the subsidy program
Support for enterprises with foreign owned capital which operate in certain areas.
2. Period covered by the notification
1996-1998
3. Policy objectives and/or purposes of the subsidy
To promote and encourage foreign investment in mountainous, remote areas/regions and
other areas which are under harsh conditions or which are placed at a social-economic
disadvantage by their geographical situation with a view to stimulating the socio-economic
development therein.
4. Background and authority for the subsidy
- Law on Foreign Investment in Vietnam dated 12 November 1996;
- Decree No.12-CP dated 18 February 1997 of the Government providing detailed
regulations on the implementation of the Law on Foreign Investment in Vietnam;
- Decree No.10/1998/ND-CP dated 23 Januar y 1998 of the Government on a number
of measures to encourage and guarantee foreign direct investment activities inVietnam;
- Law on the Amendment of and Addition to a number of Articles of the Law on
Profits Tax dated 6 July 1993;
- Ministry of Finance.
5. Form of the subsidy
Tax concessions.
6. To whom and how the subsidy is provided
Enterprises with foreign owned capital and foreign parties to business cooperation contracts
investing in projects carried out in areas on the List of geographical areas where investment is
encouraged shall be entitled to profits tax concessions as follows:
Regarding projects investing in areas/regions with difficult natural, economic and social
conditions (including hotel projects), a profits tax rate of 15% shall be applied for a period of
12 years from the time when the project commences its production or business activities;
additionally, the above described projects shall be exempted from profits tax for 2 year
commencing from the time when their operations start to earn profits and shall be granted a
50% reduction for the 3 subsequent years; and shall be entitled to a refund of any profits tax
already paid at the rate of 75% upon satisfying specified reinvestment conditions;
Regarding projects satisfying one of the following criteria, a profits tax rate of 10% shall be
applied for a period of 15 years from the time when the project commences its production or
business activities; additionally, these projects shall be exempted from profits tax for 4 year
commencing from the time when their operations start to earn profits and shall be granted a
50% reduction for the 4 subsequent years; and shall be entitled to a refund of any profits taxalready paid at the rate of 100% upon satisfying specified reinvestment conditions:WT/ACC/VNM/13
Page 17
- Construction of infrastructure in areas/regions with difficult natural, economic, and
social conditions;
- Investment in mountainous areas/regions and remote or distant areas/regions;
- Projects in the List of where investment is encouraged to be located and carried out in
geographical areas where investment is encouraged;
(Normal profits tax rate generally applied for enterprises with foreign owned capital and
foreign parties to business cooperation contracts is 25% on the profits earned).
Afforestation projects, infrastructure construction projects in mountainous or remote
areas/regions; large scale projects having a significant socio-economic impact which are
specified in the List of projects where investment is encouraged to be located and carried out
in geographical areas where investment is encouraged shall be exempted from profits tax for
8 years commencing from the time when their operations start to earn profits.
Apart from the projects which are entitled to profits tax exemption for 8 years under Article
56.4 of Decree No.12-CP, investment projects in the List of projects where investment is
encouraged to be located and carried out in geographical areas where investment is
encouraged as stated in the Appendix I a ttached to Decree No.10/1998/ND-CP dated 23
January 1998 of the Government on a number of measures to encourage and guaranteeforeign direct investment activities in Vietnam shall be granted the preferential profits tax
rates throughout the operating duration of the projects and entitled to profits tax exemption
for 4 years starting from the time when the profits are generated from business activities and a
50% reduction of profits tax for 4 subsequent years.
Investment projects in the List of projects where investment is encouraged to be located and
carried out in geographical areas where investment is encouraged as stated in the Appendix I
attached to Decree No.10/1998/ND-CP dated 23 January 1998 of the Government on a
number of measures to encourage and guarantee foreign direct investment activities in
Vietnam shall be exempt from import duty on production materials for 5 years from the
commencement of production.
Investment projects not subject to investment encouragement if investing in rural areas may
be considered for profits tax exemption for a maximum period not exceeding 2 years from the
time when their operations start to earn profits.
7. Subsidy per unit, or in case where this is not possible, the total amount or the annual
amount budgeted for the subsidy
Data not available.
8. Duration of the subsidy and/or any other time-limit attached to it
1993-
9. Statistic data permitting an assessment of the trade effects of the subsidy
The trade effects are minimal.WT/ACC/VNM/13
Page 18
VIII. PREFERENTIAL CREDIT FOR ELECTRICAL MATERIAL ENTERPRISES
1. Title of the subsidy program
Investment project on production lines to manufacture underground medium- and high-
voltage cables and twisted electric cables.
2. Period covered by the notification
1996-1998
3. Policy objectives and/or purposes of the subsidy
The objective of this investment project is to enhance production capacity for the
development of the national power network and the modernization of electricity supply
network of large cities, urban areas and for the rural electrification. The project focuses on:
a) Supplement of the following equipment (X PLE-covering production line; electric cable-
twisting machines to manufacture steel-fibre protection belts; PVC double-layer coveringmachines; vacuum machines; local electric shock testing machines);
b) Construction of new plants, workshop and warehouse of 1,335m2.
4. Background and authority for the subsidy
- Decree No.42-CP dated 16 July 1996 of th e Government on promulgation of the
Regulations on Management of Investment and Construction;
- Decree No.92-CP dated 23 August 1997 of the Government on the amendment of and
addition to a number of articles of the Regulations on Management of Investment and
Construction issued together with Decree No.42-CP dated 16 July 1996;
- Official letter No.4470/BKH-VPTD dated 2 July 1998 of Ministry of Planning and
Investment.
- Ministry of Industry.
5. Form of the subsidy
Preferential credit;
6. To whom and how the subsidy is provided
a) Vietnam Electric Cables Company (CADIVI);
b) The investment project was approved by  Ministry of Industr y in Decision No.1416/QD-
KHDT dated 10 July 1998.
7. The total amount or the annual amount budgeted for the subsidy
The total amount of loan is 5.2 million USD (equivalent to about 72.8 billion VND).
8. Duration of the subsidy and/or any other time-limit attached to it
1998-WT/ACC/VNM/13
Page 19
9. Statistic data permitting an assessment of the trade effects of the subsidy
Data not available.
IX. SUPPORT FOR PRODUCTION UNITS FACING DIFFICULTIES, FOR NEWLY SET
UP OR EXPANDED PRODUCTION UNITS, FOR PRODUCTION UNITS APPLYINGNEW PRODUCTION TECHNOLOGY
1. Title of the subsidy program
Support for production units facing difficulties, for newly set up or expanded production
units, for production units applying new production technology.
2. Period covered by the notification
1996-1998
3. Policy objectives and/or purposes of the subsidy
To support for production units facing difficulties, for newly set up or expanded production
units, for production units applying new production technology.
4. Background and authority for the subsidy
- Law on Special Sales Tax dated 30 June 1990;
- Law on the Amendment of and Addition to a number of Articles of the Law on
Special Sales Tax dated 5 July 1993;
- Law on the Amendment of and Addition to a number of Articles of the Law on
Special Sales Tax dated 28 October 1995;
- Decree No.97-CP dated 27 December 1995 providing detailed regulations on the
implementation of the Law on Special Sales Tax and the Law on Amendment of andAddition to a number of Articles of the Law on Special Sales Tax;
- Ministry of Finance.
5. Form of the subsidy
Exemption from and reduction of special sales tax.
6. To whom and how the subsidy is provided
Establishments producing goods subject to special sales tax which suffer difficulties as a
result of natural calamities, war or unexpected contingencies shall be considered for a
reduction of payble special sales tax. The percentage of reduction shall be in proportion to the
damage caused to property but shall not exceed 50% of the amount of tax payable and the
total reduction shall not exceed 30% of the value of damaged property. The duration of the
tax reduction shall not exceed 180 days from the date of damage and goods delivery.
Newly set up production establishments or production establishments which are expanding
production or applying new technology suffers losses as a result of paying special sales tax in
full shall be considered for a tax reduction on an annual basis. The percentage of tax reduction
shall be in proportion to the actual losses in each year but shall not exceed 30% of the amount
of tax payable for that year. The duration of the tax reduction shall not exceed two years (24WT/ACC/VNM/13
Page 20
months). A newly set up production establishment is one which is newly established or issued
with a production licence.. Existing production establishments which are now demerged,
merged, renamed, dissolved and then reestablished shall not come under the category of
eligibility for tax reduction stipulated by these regulations. With respect to establishments
expanding production or applying new technology, a tax reduction shall be granted only inrespect of the increase in productivity from that previously achieved.
With respect to small-scale production establishments which are unable to pay the full amount
of taxes as prescribed, the Ministry of Finance shall, on a case-by-case basis, determine the
rate and duration of any tax exemption or reduction based on their actual business or
production situation and the market rates.
7. Subsidy per unit, or in case where this is not possible, the total amount or the annual
amount budgeted for the subsidy
Data not available.
8. Duration of the subsidy and/or any other time-limit attached to it
1996 -
9. Statistic data permitting an assessment of the trade effects of the subsidy
Minimal.
X. ASSISTANCE FOR STATE-OWNED PUBLIC  UTILITY ENTERPRISES
1. Title of the subsidy program
Financial assistance granted to State-owned public utility enterprises
2. Period covered by the notification
1996-1998
3. Policy objectives and/or purposes of the subsidy
The main objective of the program is to provide financial assistance to public utility
enterprises which are not profits-oriented.
4. Background and authority for the subsidy
- Plan of annual State budget allocation approved by the National Assembly;
- Decree No.56-CP dated 2 October 1996 of  the Government on State-owned public
utility enterprises;
- Decree No.59-CP dated 3 October 1996 of the Government on promulgation of the
Regulations on financial management and cost accounting applicable to state-owned
enterprises;
- Circular No.68-TC/TCDN dated 25 September 1997 providing guidelines on
management of the use of some types of State financial assistance granted to state-
owned enterprises;
- Ministry of Finance.WT/ACC/VNM/13
Page 21
5. Form of the subsidy
Financial assistance from the State budget for State-owned public utility enterprises may be in
the following forms:
- Subsidy;
- Price support;
- Lending interest rate support;
- Investment support;
- Debt repayment support granted to enterprises which have borrowed investment
capital to effectively use in their business but face financial difficulties in their
operations.
6. To whom and how the subsidy is provided
Eligible recipients of financial assistance from State budget are State-owned enterprises as
prescribed in Article 2 of Decree No.56-CP dated 2 October 1996 of the Government on
State-owned public utility enterprises and Ar ticle 1 of Decree No.59-CP dated 3 October
1996 of the Government on promulgation of the Regulations on financial management and
cost accounting applicable to state-owned enterprises.
The mechanism for support measures is specified in Circular No.68-TC/TCDN dated 25
September 1997 providing guidelines on management of the use of some types of State
financial assistance granted to state-owned enterprises:
Subsidy means financial assistance from the State budget for enterprises to produce goods, to
supply services or to place orders pursuant to the State policy when their income is
insufficient to cover the costs incurred.
Price support means financial assistance from the State budget in form of a fixed per-unit
subsidy for enterprises to produce goods, to supply services which have been actually
consumed pursuant to the targets set by the State, orders placed by the State or the State
policy.
Lending interest rate support means financial assistance from the State budget to partially or
fully cover the lending interest rates born by enterprises when they borrow capital from credit
institutions to produce goods, to supply services pursuant to the State policy.
Investment support means financial assistance from the State budget for enterprises to expand
or intensively invest in their production pursuant to the State policy.
Debt repayment support means financial assistance from the State budget for enterprises to
pay due debts when they borrow investment capital to effectively use in their business and
make increasing contribution to the State budget but face financial difficulties in theiroperations.
With respect to enterprises established and approved to be granted support by the Prime
Minister and central ministries/agencies, the source of financial assistance is the State budget.
With respect to enterprises established and ap proved to be granted support by Heads of the
People’s Committee of provinces/cities under direct State management, the source offinancial assistance is local budget (exclusively the support granted to enterprises from the
State budget according to the State annual plan or direct support according to decisions of the
PrimeWT/ACC/VNM/13
Page 22
7. The total amount or the annual amount budgeted for the subsidy
- Total amount budgeted for the support granted to state-owned enterprises in 1996:
395 billion VND;
- Total amount budgeted for the support granted to state-owned enterprises in 1997:
235 billion VND;
- Total amount budgeted for the support granted to state-owned enterprises in 1998:
200 billion VND.
8. Duration of the subsidy and/or any other time-limit attached to it
Indefinite.
9. Statistic data permitting an assessment of the trade effects of the subsidy
The trade effect is negligible since these enterprises conduct activities for public utility and
implement government’s social  policies.WT/ACC/VNM/13
Page 23
APPENDIX I
List A on business fields and sectors eligible for investment preferential treatment
(issued together with Decree No.07/1998/ND-CP dated 15 January 1998
 of the Government providing detailed regulations on the implementation of the
Law on Promotion of Domestic Investment (amended)
Investment projects in business fields, sectors of the following domains shall be eligible for
preferential treatment:
I. Afforestation and planting of trees on unused or used land, on waste land or bare hills
for business purposes; aquaculture in unexploited water areas, offshore fishing and
concentrated cattle ranching
- Planting protection forests (in headwaters or coastal areas, or for ecological
protection), and special purpose forests.
- Planting rubber, coffee, tea, mulberry for silkworm, cashew, pepper, fruit trees or
pharmaceutical plants on natural and untransformed land.
- Raising aquatic animals for business purpose in natural water areas which have not
been transformed and used for aquaculture yet.
- Off-shore fishing.
- Concentrated cattle ranching in mountain and mid-land areas.
II. Construction of technical infrastructure; development of public transport, education
and training, healthcare and national culture, scientific and technological research
1. Construction of technical infrastructure.
- Building, renovating or expanding of electric power plants, developing
electric grids and building establishments which consume solar energy, wind
power and biological gas.
- Building or upgrading roads; building, expanding, upgrading or modernizing
airports and harbours; restoring, upgrading or building railways.
- Renovation and development of  communications networks.
- Building water plants and water supply and discharge system in service of
production and people’s life; projects for environmental protection and wastetreatment for urban areas, industrial zones, mountainous, deep-lying and far-
flung areas.
- Constructing technical infrastructure in densely populated areas.
2. Developing cargo transport and public passenger transport.
3. Developing education and training, healthcare and national culture.
- People-funded schools at different educational levels; private schools for pre-
school education, secondary education, vocational secondary education and
tertiary education.
- Establishments in service of job training, improving workers’ skills and
fostering technicians; fostering and improving skills of managerial cadres.
- People-funded and private establishments in such fields as medical
examination and treatment, healthcare for the elderly and disabled people.
- National culture house; national art troupes.WT/ACC/VNM/13
Page 24
4. Scientific and technological research.
- Research into theoretical and applied natural science, technology, social
sciences and humanities.
- Research on the renewal of equipment and modernization of production lines.
- Application and development of information technologies, bio-technology
and technologies for manufacturing and processing materials from domestic
raw material sources.
- Development of the network of technological services; metrology,
standardization, product quality control, technological assessment and
appraisal, technological information, technological transfer of support.
5. Investment in the procurement of building equipment in service of the construction of
projects. Investment in the construction of trade centres and department stores.Investment in the construction of dwelling houses of different types to meet the
demand of people in cities and urban areas.
III. PROCESSING OF AGRICULTURAL , FOREST AND AQUATIC PRODUCTS,
TECHNICAL SERVICES IN DIRECT SERVICE OF AGRICULTURE, FORESTRYAND FISHERY
1. Processing of food, meat, dairy products, fish, shrimp, edible oil, sugar, vegetables
and fruits, rubber, natural silk, tea, coffee, refreshment and fruit juice.
2. Processing of pharmaceuticals and aromatics.
3. Processing of forest products for export.4. Plant and animal protection and supply se rvices; hybridization and multiplication of
new strains and breeds; services in storage of agricultural, forest and marine products
preservation service.
IV. PRODUCTION OF IMPORT SUBSTITUTES
Building or expanding establishments specialized in the production and processing of
materials and auxiliary materials for the production of import substitutes and improving their
production capacities, research, development and renovation of their technologies.
V. INDUSTRIES OF PRIORITY DEVELOPMENT (IN THE 1995-2000 PERIOD)
OTHER THAN THOSE MENTIONED ABOVE
1. Production of consumer goods: textiles, leather ware, rubber, high-quality plastics,
garments, household utensils, papers and school stationery and equipment.
2. Mechanical engineering, electronics and informatics: manufacturing, assembling and
repairing machines and equipment for production and processing of agricultural,
forest and aquatic products and industrial consumer goods; manufacturing
construction and mining equipment and means; building of river and sea-going ships;WT/ACC/VNM/13
Page 25
manufacturing locomotives and carriages; equipment for electricity lines and power
transformer stations; manufacturing electronics components for export, research and
production of computer software.
3. Production of raw materials, fuel and materials: oil and gas exploration, exploitation
and refining; coal exploitation and processing; steel casting and rolling; production ofnon-ferrous metals, cement and other construction materials; production of fertilizers
(nitrogenous, phosphate, composite, micro-biological and oligoelement); and
production of basic chemicals.
4. Traditional crafts which need to be promoted: carving, mother-of-pearl inlaying,
lacquer ware, wickerwork, carpet making, pottery, ceramics and silk weaving.
VI. INVESTMENT IN INDUSTRIAL PARKS, EXPORT PROCESSING ZONES AND
HIGH-TECH PARKS IN VARIOUS BUSINESS FIELDS AND SECTORS,
INCLUDING:
1. Enterprises investing in building and dealing in technical infrastructure of industrial
parks, export processing zones and high-tech parks.
2. Enterprises investing in different production and service sectors within industrial
parks, export processing zones and high-tech parks.WT/ACC/VNM/13
Page 26
List of projects where investment is especially encouraged
(stated in Part I attached to Decree No.10/1998/ND-CP dated 23 January 1998
of the Government on a number of measures to encourage and
guarantee foreign direct investment activities in Vietnam)
1. Projects for the production of new or high-quality hybrid breeds of international standard and
high economic efficiency;
2. Projects for the production of new materials, rare and precious materials, projects to apply
new biological technology, electronic technology, new technology for manufacturing
information and telecommunications equipment; and informatic technology;
3. Export-processing enterprises, high-tech industrial enterprises in industrial parks, export
processing zones and high-tech parks;
4. Projects for treatment of environmental pollution and environment protection, for waste
processing and treatment;
5. Investment projects under BOT, BTO, and BT contracts.WT/ACC/VNM/13
Page 27
List of projects where investment is encouraged
(stated in Part I attached to Decree No.10/1998/ND-CP dated 23 January 1998
of the Government on a number of measures to encourage and guarantee
foreign direct investment activities in Vietnam)
1. The agricultural, forestry and fishery sectors:
- Technology for the preservation of food; post-harvest preservation of agricultural
products; and the application of biotechnology and biological measures in agriculture,
forestry and fishery;
- The production of materials for highly-effective insecticides which are safe for
human beings, domestic animals and environment;
- Manufacture of equipment, spare parts, and farming machinery;
- Projects with intensive labour and effective utilization of natural resources available
in Vietnam.
2. The industrial sector:
- Mineral exploration, exploitation and downstream processing;
- Development of the petrochemical industry;
- Manufacture of high-quality steel, alloys, non-ferrous metals, special metals, steel
cast and iron sponge for industries;
- Manufacture of machine tools for metal working;
- Manufacture of automobile and motorbike spare parts, manufacture and assembly of
construction equipment, vehicles and machinery;
- Manufacture of technologically or technically advanced diesel engines of various
kinds; manufacture of machines and spare parts for engines and hydraulics and
compressors;
- Ship building; manufacture of equipment and spare parts for freighters and fishing
vessels;
- Manufacture of equipment and components for oil and gas exploitation, mining and
energy; manufacture of heavy lifting equipment;
- Manufacture of precision mechanical equipment, manufacture of moulds;
- Manufacture of waste water treatment equipment;
- Manufacture of electrical medium- and high-voltage devices;
- Production of basic chemicals, pure chemicals, dyes and special-purpose chemicals;
- Production of special cement, composite materials, sound-proof, electrical-insulating
and heat-resistant materials, and wood-substitute synthetic materials;
- Production of silk and fibre of various kinds, textiles for export, special fabrics for
industries;
- Production of high-quality materials for production of footwear and garments for
export;
- Production of high-quality packages for export goods;
- Production of materials for medicines;
- Production of medicines of GMP international standards; production of
pharmaceuticals by biotechnology.
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