RESTRICTEDWORLD TRADE
ORGANIZATIONWT/ACC/VNM/13/Add.2
30 October 2003
(03-5784)
Working Party on the
Accession of Viet NamOriginal:  English
ACCESSION OF VIET NAM
New and Updated Notifications Pursuant to Article XVI:1 of the GATT 1994
and Article 25 of the Agreement on Subsidies and Countervailing Measures
(Period covered by the Notification:  2001-2002)
Addendum
The Government of the Socialist Republic of Viet Nam has submitted the following New and
Updated Notifications 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.
_______________
The following notification provides details of programmes for the period 2001-2002. It
servers as the new subsidies notification for programmes as well as the updating notification
regarding the previous period 1999-2000. This notification may be supplemented, in due time, to
incorporate further elements or clarifications.
In this notification, Viet Nam has included certain measures which may not constitute
“subsidies” under Article 1 of the Agreement on Subsidies and Countervailing measures (“the
Agreement” hereinafter) and certain subsidies which may not be “specific” under Article 2 of the
Agreement in order to achieve the maximum transp arency with respect to the relevant programmes
and measures effective within its territory during the notified period.WT/ACC/VNM/13/Add.2
Page ii
TABLE OF CONTENTS
I. PREFERENTIAL IMPORT TARIFF RATES CONTINGENT UPON
LOCALISATION RATIOS WITH RESPECT TO PRODUCTS AND PARTS
OF TWO-WHEEL MOTORBIKE AND MECHANICAL-ELECTRIC-ELECTRONIC INDUSTRIES (UPDATING PROGRAM II, DOCUMENT
WT/ACC/VNM/13/ ADD.1). .....................................................................................................1
II. SUPPORT FOR THE IMPLEMENTATION OF PROJECTS
MANUFACTURING PRIORITY INDUSTRIAL PRODUCTS (UPDATING
PROGRAM XV, DOCUMENT WT/ACC/VNM/ 13/ADD.1)................................................6
III. INVESTMENT INCENTIVES FOR DOMESTIC ENTERPRISES
OPERATING IN VIET NAM (UPDATING PROGRAM VII, IX, XI,DOCUMENT WT/ACC/ VNM/13/ADD .1) .............................................................................9
IV. INVESTMENT INCENTIVES FOR FOREIGN-OWNED ENTERPRISES
(UPDATING PROGRAMS VI, VII, X, DOCUMENT
WT/ACC/VNM/1 3/ADD.1) ....................................................................................................12
V. INCENTIVES IN DEVELOPMENT INVESTMENT LOAN (UPDATING A
PART OF PROGRAM VIII, DO CUMENT WT/ACC/VNM /13/ADD.1)..........................14
VI. SUPPORT FOR DEVELOPMENT OF TEXTILE AND CLOTHING
SECTORS (NEW).................................................................................................................. .16
VII. EXPORT REWARD (UPDATING A PART OF PROGRAM XII, DOCUMENT
WT/ACC/VNM/1 3/ADD.1) ....................................................................................................18
VIII. EXPORT PROMOTION (UPDATING A PART OF PROGRAM XII,
DOCUMENT WT/ACC/ VNM/13/ADD .1) ...........................................................................20
IX. EXPORT SUPPORTING CREDIT (UPDATING OF PROGRAM VIII
DOCUMENT WT/ACC/ VNM/13/ADD .1) ...........................................................................23
X. TRADE PROMOTION SUPPORT (N EW) .........................................................................26
XI. SUPPORT FOR MECHANI CAL PRODUCTS (NEW) .....................................................28
XII. SUPPORT FOR INVESTMENT PROJECTS IN MANUFACTURING ENGINE
OF TWO-WHEEL MOTORBIKE (NEW) ..........................................................................30
XIII. SUPPORT FOR THE SHIP-B UILDING INDUSTR Y (NEW) ..........................................32
XIV. ASSISTANCE FOR TRADE DEVELOPMENT IN MOUNTAINOUS, ISLAND
AND ETHNIC MINORITY AREAS (N EW) .......................................................................34
XV. ASSISTANCE TO ENTERPRISES FACING DIFFICULTIES DUE TO
OBJECTIVE REAS ONS (NEW) ..........................................................................................36
XVI. INVESTMENT INCENTIVES FOR SCIENCE AND TECHNOLOGY
PROJECTS (UPDATING PROGRAM XIV, DOCUMENT
WT/ACC/VNM/1 3/ADD.1) ....................................................................................................39WT/ACC/VNM/13/Add.2
Page iii
ANNEX I........................................................................................................................ .......................42
ANNEX II ....................................................................................................................... ......................46
ANNEX III...................................................................................................................... ......................54
ANNEX IV....................................................................................................................... .....................60
ANNEX V ........................................................................................................................ .....................61
ANNEX  VI...................................................................................................................... .....................63WT/ACC/VNM/13/Add.2
Page 1
I. PREFERENTIAL IMPORT TARIFF RATES CONTINGENT UPON
LOCALISATION RATIOS WITH RESPECT TO PRODUCTS AND PARTS OF
TWO-WHEEL MOTORBIKE AND MECHANICAL-ELECTRIC-ELECTRONIC
INDUSTRIES (UPDATING PROGRAM II, DOCUMENT WT/ACC/VNM/13/ADD.1).
1. Title of the subsidy program
Preferential import tariff rates contingent upon localization ratios with respect to products and
parts of two-wheel motorbike and mechanical-electric-electronic industries.
2. Policy objectives and/or purposes of the subsidy
To encourage domestic production and assembly of products and parts of two-wheel
motorbike and mechanical-electric-electronic industries.
3. Background and authority for the subsidy
a. Background
- Decision No.38/2002/QD-TTg dated 14/3 /2002 of the Prime Minister on the
management of manufacturing, assembling and importing components of two-wheel
motorbike;
- Inter-Ministerial Circular No.176/199 8/TTLT-BTC-BCN-TCHQ dated 25/12/1998 of
Ministry of Finance, Ministry of Indus try and General Department of Customs
guiding the implementation of tariff imposition contingent upon localization ratios
with respect to products and parts of mechanical-electric-electronic industries;
- Inter-Ministerial Circular No.92/2001 /TTLT-BTC-BCN-TCHQ dated 20/11/2001 of
Ministry of Finance, Ministry of Indus try and General Department of Customs
guiding the imposition of preferential tariff rates contingent upon localization ratioswith respect to products and engines of two-wheel motorbike (in replacement of the
regulation of tariff rates contingent upon localization ratios with respect to products
and engines of two-wheel motorbike stipulated in Inter-Ministerial
No.176/1998/TTLT-BTC-BCN-TCHQ dated 25/12/1998 and No.120/2000/TTLT-
BTC-BCN-TCHQ dated 25/12/2000 of Ministry of Finance, Ministry of Industry and
General Department of Customs);
- Decision No.116/2001/QD-BTC dated 20 Novemb er 2001 of the Minister of Finance
on amending and modifying preferential import tariff rates according to the regulation
on preferential tariff for motorbikes stipulated in MFN Import Tariff Schedule issued
together with Decision No.1944/1998/QD- BTC dated 25 December 1998 of Minister
of Finance on promulgation of regulations on preferential import tariff rates
contingent upon localization ratios with respect to products and parts of mechanical,electric and electronic industries;
- Decision No.66/2002/QD-BTC dated 22/5/2002 of Minister of Finance on modifying
import tariff rates of certain parts of two-wheel motorbike, modifying scheme of
localization ratios and import tariff rates contingent upon localization ratios with
respect to parts of two-wheel motorbike;
- Inter-Ministerial Circular No.52/2002/T TLT-BTC-BCN dated 4/6/2002 of Ministry
of Finance and Ministry of Industry on modification and amendment of Inter-WT/ACC/VNM/13/Add.2
Page 2
Ministerial Circular No.92/2001/TTLT-BTC-BCN-TCHQ dated 20/11/2001 of
Ministry of Finance, Ministry of Indus try and General Department of Customs;
- Decision No. 78/2002/QD-BTC dated 10/6/2002 of Minister of Finance promulgating
the regulation on principle and method for calculating aggregate production capacity
of manufacturing and assembling two-wheel motorbike.
b. Authorities
- Ministry of Finance;
- Ministry of Industry;
4. Form of the subsidy
Preferential import tariff rates.
5. To whom and how the subsidy is provided
5.1 Preferential tariff rates contingent upon localization ratios with respect to products and parts
of two-wheel motorbike
a. Eligibility
All enterprises established under Vietnamese laws (including foreign-invested enterprises)
operating in production, assembly of products and/or engines of two-wheel motorbike.
b. How the subsidy is provided
Preferential import tariff rates are imposed contingent upon localization ratios. Localization
rates are certified by the Ministry of Industry; import tariff rates contingent upon localization
ratios are regulated by the Ministry of Finance:
Complete products of two-wheel motorbike:
Achieved localization ratio (%)MFN import tariff rates
contingent upon localization ratios (%)
1. Above 0 and up to 20
2. Above 20 and up to 30
3. Above 30 and up to 40
4. Above 40 and up to 50
5. Above 50 and up to 60
6. Above 60 and up to 70
7. Above 70 and up to 80
8. Above 8060
50
40
302010
53WT/ACC/VNM/13/Add.2
Page 3
Parts of two-wheel motorbike:
MFN import tariff rates contingent upon localization ratios (%)
With respect to parts which are subject to
MFN import tariff rate of 50%Achieved
localization
ratio
(%)With respect to
parts which are
subject to MFN
import tariff
rate of 30%With respect to
parts which are
subject to MFN
import tariff
rate of 40%Engines Other parts
1. Up to 20
2. Above 20 to 35
3. Above 35 to 45
4. Above 45 to 55
5. Above 55 to 65
6. Above 65 to 80
7. Above 8030
201510
7
5
340
302010
7
5
350
302010
7
5
350
40302010
7
5
5.2 Preferential tariff rates contingent upon localization ratios with respect to products and parts
of mechanical-electric-electronic industries
a. Eligibility
Vietnamese and foreign-invested enterprises operating in production and assembly of parts
and/or complete products of mechanical-electric-electronic industries.
b. How the subsidy is provided
The above-mentioned enterprises enjoy preferential import tariff rates according to
localization ratios:
(i) Electronic products and parts:
- Electronic products:
MFN import tariff rates contingent upon localization ratios (%)
Achieved
localization
ratio
(%)With respect to
parts which are
subject to MFN
import tariff rate of
30%With respect to
parts which are
subject to MFN
import tariff rate
of 40%With respect to
parts which are
subject to MFN
import tariff rate
of 50%With respect to
parts which are
subject to MFN
import tariff rate
of 60%
1. Up to 20
2. Above 20 to 35
3. Above 35 to 50
4. Above 50 to 60
5. Above 6020
1510
5330
2010
5340
301510
340
301510
3WT/ACC/VNM/13/Add.2
Page 4
-E l e c t r o n i c  p a r t s :
MFN import tariff rates contingent upon localization ratios (%)
Achieved
localization
ratio
(%)With respect to
parts which are
subject to MFN
import tariff rate
of 30%With respect to
parts which are
subject to MFN
import tariff rate
of 40%With respect to
parts which are
subject to MFN
import tariff rate
of 50%With respect to
parts which are
subject to MFN
import tariff rate
of 60%
1. Up to 15
2. Above 15 to 30
3. Above 30 to 40
4. Above 40 to 50
5. 5- Above 5020
1510
5320
1510
5330
2010
5340
2010
53
(ii) Mechanical-electric products and parts:
- Mechanical-electric products:
MFN import tariff rates contingent upon localization ratios (%)
Achieved
localization
ratio
(%)With respect to
parts which are
subject to MFN
import tariff rate of
30%With respect to
parts which are
subject to MFN
import tariff rate of
40%With respect to
parts which are
subject to MFN
import tariff rate of
50%With respect to
parts which are
subject to MFN
import tariff rate of
60%
1. Up to 20
2. Above 20 to 35
3. Above 35 to 50
4. Above 50 to 60
5. Above 6020
15
10
5330
20
10
5340
30
2010
350
40
2010
3
- Mechanical-electric parts:
MFN import tariff rates contingent upon localization ratios (%)
Achieved
localization
ratio
(%)With respect to
parts which are
subject to MFN
import tariff rate of
30%With respect to
parts which are
subject to MFN
import tariff rate of
40%With respect to
parts which are
subject to MFN
import tariff rate of
50%With respect to
parts which are
subject to MFN
import tariff rate of
60%
1. Up to 15
2. Above 15 to 30
3. Above 30 to 40
4. Above 40 to 50
5. Above 5020
1510
5320
1510
5330
2010
5340
2010
53
6. 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.WT/ACC/VNM/13/Add.2
Page 5
7. Duration of the subsidy and/or any other time-limit attached to it
- Preferential import tariff rates contingent upon localization ratios with respect to products and
parts of two-wheel motorbike: from 1999 to 31 December 2002 (This program is not applied
from 1 January 2003) ;
- Preferential import tariff rates contingent upon localization ratios with respect to products and
parts of mechanical-electric-electronic industries: from 1999.
8. Statistic data permitting an assessment of the trade effects of the subsidy
Data not available.WT/ACC/VNM/13/Add.2
Page 6
II. SUPPORT FOR THE IMPLEMENTATION OF PROJECTS MANUFACTURING
PRIORITY INDUSTRIAL PRODUCTS (UPDATING PROGRAM XV, DOCUMENT
WT/ACC/VNM/13/ADD.1)
1. Title of the subsidy program
Support for the implementation of projects manufacturing priority industrial products.
2. Policy objectives and/or purposes of the subsidy
To support the manufacture of  priority industrial products.
3. Background and authority for the subsidy
a. Background
- Decision No.37/2000/QD-TTg dated 24/3/2000 of the Prime Minister promulgating
regulation of supporting the manufacture of priority industrial products (including
maritime ships with the capacity of 11,500 tones, internal combustion engines withcapacity below 30 CV, colour television sets) and the Circulars guiding the
implementation of this Decision;
- Decision No.19/2001/QD-TTg dated 20 Fe bruary 2001 of the Prime Minister on
adding computer products to the list of priority industrial products subject to the
financial support regulated under the Decision No.37/2000/QD-TTg dated 24 March,2000 of the Prime Minister and relevant circulars.
b. Authorities
- Ministry of Transport;
- Ministry of Industry.
4. Form of the subsidy
- Exemption of import duty;
- Preferential corporate income tax rates;
- Preferential access to development investment loans from the state;
- Reduction of land rental;
5. To whom and how the subsidy is provided
a. Eligibility to financial support and tax incentives:
Enterprises which are principally responsible for the implementation of the projects of
manufacture of priority industrial products including:
- Viet Nam Shipping Industry Corporation - principally responsible for the project of
building maritime ships with the capacity of 11,500 tonnes;WT/ACC/VNM/13/Add.2
Page 7
- Viet Nam Engine and Agriculture Machinery Corporation (VEAM) - principally
responsible for the project manufacturing internal combustion engines with capacity
below 30 CV;
- Hanoi Electronics Company (HANEL) - principally responsible for the project
manufacturing colour television sets.
- Viet Nam Electronics and Informatics Corporation - principally responsible for the
project manufacturing computer products.
Enterprises (including both Vietnamese and foreign-invested enterprises) assigned to co-
ordinate with the principal enterprises implementing the project of manufacturing priority
industrial products include those supplying materials, semi-finished products, components
and accessories, etc. (including the supply to manufacturers of unfinished products, units,
components and accessories, etc.), which are used in the manufacture of priority industrialproducts and are certified by the Ministry of Industry.
b. How the subsidy is provided:
Tax incentives :
- Import duty is exempted until the end of 31 December 2003 for specialised
machinery, equipment, means of transportation of the technological line to establishfixed assets of an enterprise;
- Enterprises implementing this project enjoy corporate income tax rate of 25%,
corporate income tax exemption for 2 years from the time of having taxable income
and a 50% reduction of the payable corporate income tax for the 2 subsequent years.
Credit incentives :
- Enterprises described in section 5 above are allowed to access to development
investment loans from the state via the Development Assistance Fund to satisfy its
demand for construction of production units. The loan period is not exceed 10 years
for each loan. No mortgage is required for the loan. However, borrowers are not
allowed to assign their assets before full repayment of their debts (including theprincipal and interests) for each loan;
- Approved research and development proposals are granted capital support from the
state’s budget for science and technology research.
Land rental incentives :
- Eligible enterprises enjoy a 50% reduction of land rental throughout the duration of
the project.
6. 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.WT/ACC/VNM/13/Add.2
Page 8
7. Duration of the subsidy and/or any other time-limit attached to it
From 8 April 2000
From 8 April 2000 to 31 December 2003 with respect to import duty incentives.
8. Statistic data permitting an assessment of the trade effects of the subsidy
Negligible.WT/ACC/VNM/13/Add.2
Page 9
III. INVESTMENT INCENTIVES FOR DOMESTIC ENTERPRISES OPERATING IN
VIET NAM (UPDATING PROGRAM VII, IX, XI, DOCUMENT
WT/ACC/VNM/13/ADD.1)
1. Title of the subsidy program
Investment incentives for domestic enterprises operating in Viet Nam.
2. Policy objectives and/or purposes of the subsidy
To encourage domestic enterprises to invest in trade and production.
3. Background and authority for the subsidy
a. Background
Law on Domestic Investment Promotion (a s amended) No.03/1998/QH10 dated 20 May 1998
and legal documents guiding the implementation of this Law.
b. Authority
Ministry of Planning and Investment.
4. Form of the subsidy
- Exemption, reduction of land use payment;
- Exemption, reduction of land rental;
- Exemption, reduction of land use tax;
- Preferential corporate income tax rates;
- Exemption of import duties for the equipment, machinery contributed as fixed assets
of an enterprise;
- Exemption of personal income tax.
5. To whom and how the subsidy is provided
a. Exemption, reduction of land use payment
Investors who are allocated land by the State enjoy exemption and 50%-100% reduction of
land use payment for investment projects in areas and sectors where investment is encouraged
as listed in Annexes I, II and III;
b. Exemption, reduction of land rental
Investors implementing investment projects in encouraged investment areas and sectors listed
in Annexes I, II and III enjoy land rental exemption and reduction for the period from 3 to 15
years, or for the whole period in limited special cases;WT/ACC/VNM/13/Add.2
Page 10
c. Exemption, reduction of land use tax
Investors implementing investment projects in encouraged investment areas and sectors listed
in Annexes I, II and III are granted a 50% reduction of land use tax for the period of 7 years;
exemption of land use tax for the period from 7 to 15 years from the date of land allocation;
exemption of land use tax for the whole period of project;
d. Preferential corporate income tax
Incentives on corporate income tax rates:
- 25% for investment projects listed in Annexes I and II;
- 20% for investment projects listed in Annex I implemented in areas listed in
Annex II, investment projects listed in Annex III;
- 15% for investment projects listed in Annex I implemented in areas listed in
Annex III.
Incentives on period of corporate income tax exemption and reduction
Corporate income tax is exempted for the period from 2 to 4 years, reduced by 50% for the
period from 2 to 9 subsequent years for investment projects in areas and sectors where
investment is encouraged as listed in Annexes I, II and III; for BOT and BTO projects; for
scale-expanding and upgrading investment projects.
Investors producing goods for export and/or exporting goods are granted corporate income
tax exemption for the amount of income earned by export in the financial year for investment
projects in areas falling under the List of areas of specially difficult socio-economical
conditions; 20%-50% reduction of corporate income tax on the amount of income earned
from export to new markets, new export products, and in the case of higher export volume ascompared with the previous year, export turnover accounting for more than 50% of total
turnover.
Investors are exempted from supplementary corporate income tax, which is imposed on the
high income attributable to objective advantage
1.
e. Exemption of import duties for equipment, machinery contributed as enterprise’s fixed assets
of an enterprise.
Exemption of import duty for specialised machin ery, equipment, means of transportation (of
the technological line) imported to establish enterprises’ fixed assets or to expand investment
scale and to renovate technology; for specialised transportation means used to transport
workers. 
f. Exemption of personal income tax
Individual investors are exempted from personal income tax for the income attributable to
his/her capital contribution to or stock purchase of enterprises located in areas of difficult
socio-economic conditions or areas of specially difficult socio-economic conditions for 10
                                                     
1 Refer to the Government’s Decree No.30/1998/ND-CP dated 13 May 1998 providing details to
implement the Law on Corporate Income Tax for provisions related to supplementary corporate income tax.WT/ACC/VNM/13/Add.2
Page 11
years commencing from the time when he/she is liable for personal income tax in accordance
with relevant regulations on personal income tax.
6. Subsidy per unit, or in case where this is not possible, the total amount or the annual
amount budgeted for the subsidy
YearNo. of projects
entitled to
investment
incentivesTotal registered
capital (billion
VND)% project
entitled to
investment
incentives on
tax% project
entitled to
investment
incentives on
land% project
entitled to
investment
incentives on
credit
1999 637 7,541 100% 12% 60%
2000 1,374 14,955 100% 15% 64%
2001 2,425 38,723 100% 18% 70%
Source: Ministry of Planning and Investment
7. Duration of the subsidy and/or any other time-limit attached to it
From 1999
8. Statistic data permitting an assessment of the trade effects of the subsidy
Not assessableWT/ACC/VNM/13/Add.2
Page 12
IV. INVESTMENT INCENTIVES FOR FOREIGN-OWNED ENTERPRISES
(UPDATING PROGRAMS VI, VII, X, DOCUMENT WT/ACC/VNM/13/ADD.1)
1. Title of the subsidy program
Investment incentives for foreign-owned enterprises.
2. Policy objectives and/or purposes of the subsidy
Attracting foreign direct investment into Viet Nam.
3. Background and authority for the subsidy
a. Background
- Law on Foreign Investment in Viet Nam dated 12 November 1996;
- Law on amendment of and addition to certain Articles of the Law on Foreign
Investment in Viet Nam (Law No.18/2000/QH10) dated 9 June 2000;
- Another legal documents guiding the implementation of this Law.
b. Authority
Ministry of Planning and Investment.
4. Form of the subsidy
Tax incentives
5. To whom and how the subsidy is provided
a. Preferential corporate income tax rates; exemption and reduction of corporate income tax:
Preferential corporate income tax rates of 20%, 15%, 10%2, an exemption of corporate
income tax for the period from 1 to 4 years and a 50% reduction for the period from 2 to 4
subsequent years are applied to the following investors :
- Enterprises located in industrial zones operating in service sector;
- Being included in the Lists of Encouraged Investment Projects and Specially
Encouraged Investment Projects; Lists of Areas under difficult socio-economic
conditions and Areas under specially difficult socio-economic conditions;  (Annexes
IV-VI);
- Enterprises operating in service sector and located in export processing zones;
- Enterprises located in industrial zones exporting more than 50% of their products;
- Enterprises committing non-refundable transfer of assets to the state after the
operation period expires;
                                                     
2 Normal tax rate is 25%WT/ACC/VNM/13/Add.2
Page 13
- Enterprises building and operating infrastructure facilities of industrial zones, export
processing zones and high-tech zones; export processing enterprises;
- Enterprises engaged in education and training, health care, science research sectors.
Vietnamese individuals residing abroad enjoy a 20% reduction of corporate income tax of the
same kind of investment projects, except the case of tax rate of 10%.
b. Exemption of import duties for the period of 5 years or for the whole period of  investment
project:
- Goods imported to establish fixed assets;
- Raw materials and materials imported to implement BOT, BTO and BT projects;
plant seeds and animal breeds, specialised agricultural medicine allowed to be
imported to implement agricultural, forestry and aqua-culture projects;
- Raw materials for production of investment pr ojects included in the List of Specially
Encouraged Investment Projects; List of Areas under socially and economically
difficult conditions; other raw materials for investment projects included in the List of
Specially Encouraged Investment Projects (Annexes IV-V-VI)
6. 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.
7. Duration of the subsidy and/or any other time-limit attached to it
From 1996 -
8. Statistic data permitting an assessment of the trade effects of the subsidy
Not assessable.WT/ACC/VNM/13/Add.2
Page 14
V. INCENTIVES IN DEVELOPMENT INVESTMENT LOAN (UPDATING A PART OF
PROGRAM VIII, DOCUMENT WT/ACC/VNM/13/ADD.1)
1. Title of the subsidy program
Incentives in development investment loan.
2. Policy objectives and/or purposes of the subsidy
To support the process of transformation of economic structure and consumption of
agricultural products.
3. Background and authority for the subsidy
a. Background
- Decision No. 02/2001/QD-TTg dated 2 January 2001 on regulation on investment
support from the Development Assistance Fund;
- Decree No.43/1999/ND-CP dated 29 June 1999 of the Government on the
development investment loans from the state;
- Decision No. 80/2002/QD-TTg dated 24 June 2002 of the Prime Minister on the
promotion policy for consumption of agricultural products by purchase contracts.
b. Authorities
- Ministry of Finance;
- Ministry of Agriculture and Rural Development;
- The Development Assistance Fund.
4. Form of the subsidy
- Credit incentives;
- Credit guarantee.
5. To whom and how the subsidy is provided
a. Eligibility:
Production and processing projects in export-oriented sectors; agricultural production such as
planting of perennial trees, cattle and aqua-culture breeding, salt production, development of
processing industry .
b. How the subsidy is provided:
- Preferential investment loan from the Development Assistance Fund;
- Credit guarantee up to 100% of loans from financial institutions legally operating in
Viet Nam;WT/ACC/VNM/13/Add.2
Page 15
- Investment projects in processing and consumption of agricultural products in remote
areas, areas of specially difficult socio-economic conditions, borderland, islands are
allowed to borrow from the Development Assistance Fund at interest rate of 3% per
annum.
6. 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.
7. Duration of the subsidy and/or any other time-limit attached to it
From 7 January 2001.
8. Statistic data permitting an assessment of the trade effects of the subsidy
Data not available.WT/ACC/VNM/13/Add.2
Page 16
VI. SUPPORT FOR DEVELOPMENT OF TEXTILE AND CLOTHING SECTORS
(NEW)
1. Title of the subsidy program
Program supporting the implementation of the Development Strategy of Viet Nam’s textile
and clothing sectors to the year 2010.
2. Policy objectives and/or purposes of the subsidy
To develop the textile and clothing industries into one of key and labour-intensive industries;
to improve the competitiveness of textile and clothing products.
Background and authority for the subsidy
a. Background
- Decision No.161/1998/QD-TTg dated 4 September 1998 approving Master Plan for
the development of textile and clothing industries to the year 2010;
- Decision No.55/2001/QD-TTg dated 23 April 2001 approving the Development
Strategy and certain supporting policies and measures to implement the Development
Strategy of Viet Nam’ s textile and clothing industries to the year 2010;
- Decision No. 17/2002/QD-TTg dated 21 January 2002 of the Prime Minister on
direction and development of cotton tree for the period 2001-2010.
- Resolution No.05/2001/ND-CP dated 24 May 2001 of the Government on
supplementing certain solutions to manage the Economic Plan for the year 2001;
- Another relevant legal documents.
b. Authorities
Ministry of Industry;
4. Form of the subsidy
- Preferential credit terms;
- Investment incentives;
- Guarantees provided by the Government;
- Assistance in trade promotion expenditures.
5. To whom and how the subsidy is provided
Assistance from the state budget, Official Development Assistance is granted to projects
developing materials areas (e.g. planting cotton trees, mulberry trees, growing silkworms);
investing in waste water treatment works; to planning  textile and weaving clusters; building
infrastructures for new industry clusters; training and research projects of clothing and textile
institutes, colleges and research centers.WT/ACC/VNM/13/Add.2
Page 17
Entities investing in production of fibers, w eaving, complete dyeing, materials for weaving,
accessories for sewing and sewing machinery:
- are allowed to borrow development investment loan from the Development
Assistance Fund, 50% of the value of which is subject to the interest rate of 3%/year
for the period of 12 years with 3 years of grace period; the remaining 50% is subjectto the interest rate of 5.4%/year;
- are considered to invest in encouraged investment sectors and are allowed to enjoy
investment incentives stipulated in Law on Domestic Investment Promotion.
All the fees collected from granting textile and clothing quotas and quota bidding  are
reserved for trade promotion activities and for training human resources of textile and
clothing industries.
6. Subsidy per unit, or in case where this is not possible, the total amount or the annual
amount budgeted for the subsidy
- Total medium and long term loans of 56 projects is VND 1,378.6 billions.
- Total value based on loan agreements is VND 395 millions.
7. Duration of the subsidy and/or any other time-limit attached to it
From 7 May 2001 – 2010.
8. Statistic data permitting an assessment of the trade effects of the subsidy
Negligible.WT/ACC/VNM/13/Add.2
Page 18
VII. EXPORT REWARD (UPDATING A PART OF PROGRAM XII, DOCUMENT
WT/ACC/VNM/13/ADD.1)
1. Title of the subsidy program
Export reward.
2. Policy objectives and/or purposes of the subsidy
To encourage entrepreneurs achieving high export performance in the form of a small reward.
3. Background and authority for the subsidy
a. Background
- Decision No.195/1999/QD-TTg da ted 27 September 1999 of the Prime Minister on
establishment, utilization and management of Export Promotion Fund;
- Decision No.02/2002/QD-BTM dated 2 Febr uary 2002 promulgating the regulations
on export reward evaluation (superseding the Decisions issued earlier by the Ministryof Trade promulgating regulations on export reward evaluation).
b. Authority
Ministry of Trade.
4. Form of the subsidy
Export reward (accompanied with Ce rtificate on Export Performance).
5. To whom and how the subsidy is provided
a. Eligibility:
Traders established and operating the Vietnamese laws, whose direct export performance
meets the following criteria are considered to be granted export reward:
(i)  Exported products are new and efficient with annual export volume of at least
US$100,000. With respect to traders located in mountainous and island provinces,
annual export volume required is at least US$50,000.
(ii) The current year’s export volume is at least 20% higher than that of the preceding
year with absolute increase of at least US$400,000; with respect to entities located in
mountainous and island provinces, numbers are 15% and US$200,000 respectively.
(iii) Exported products reach high quality, which are awarded medals at international fairs
and exhibitions held abroad; or granted certificates or written confirmation by
international quality control organizations.
(iv) Exported products are manufactured and processed by local raw materials, or labor-
intensive products (fine-art handicraft articles; agricultural, forestry and aquatic
products; garments, footwear, etc.) with annual export volume of at least US$10
million and at least US$3 million with respect to fine art handicraft articles, fruits andpork.WT/ACC/VNM/13/Add.2
Page 19
(v) Non-quota products are exported with annual export volume of at least US$50
million.
Export rewards are granted by the Export Promotion Fund.
6. Subsidy per unit, or in case where this is not possible, the total amount or the annual
amount budgeted for the subsidy
Year Total reward No. of  enterprisesAverage reward per
enterprise
1998 VND 4.7 billion
(equiv.US$323,103)85 US$3,800
1999 VND 6.2 billion
(equiv.US$427,586)148 US$2,900
2000 VND 10.6 billion
(equiv.US$706,667)158 US$4,470
2001 VND 12.7 billion
(equiv.US$845,000)195 US$4,330
2002 (estimated) VND 16.3 billion
(equiv.US$1,051,600)223 US$4,710
7. Duration of the subsidy and/or any other time limit attached to it
From 1998 -
8. Statistic data permitting an assessment of the trade effects of the subsidy
Negligible.WT/ACC/VNM/13/Add.2
Page 20
VIII. EXPORT PROMOTION (UPDATING A PART OF PROGRAM XII, DOCUMENT
WT/ACC/VNM/13/ADD.1)
1. Title of the subsidy program
Export promotion.
2. Policy objectives and/or purposes of the subsidy
To promote exports, especially agricultural products and those produced in rural areas.
3. Background and authority for the subsidy
a. Background
- Decision No.195/1999/QD-TTg da ted 27 September 1999 of the Prime Minister on
establishment, utilization and management of the Export Promotion Fund;
- Decision No.65/2001/QD-BTC dated 29 J une 2001 on granting bonus contingent
upon export performance of rice, coffee, pork, canned fruits and vegetables for theyear 2001;
- Decision No.166/2001/QD-BTC dated 26 Decem ber of 2001 on adding  half-grown
pork to the list of the commodities subject to export bonus under the Decision
No.65/2001/QD-BTC dated 29 June 2001;
- Decision No. 908/2001/QD-TTg dated 26 July 2001 of the Prime Minister on
measures to promote export and manage import in the later half of 2001;
- Instruction No. 31/2001/CT-TTg dated 13 December 2001 on enhancing and
improving the effectiveness of export-import activities in 2002;
- Decision No.63/2002/QD-BTC dated 21 May 2002 on reward levels contingent upon
export performance in 2002.
b. Authorities
- Ministry of Trade;
- Ministry of Finance;
- Ministry of Agriculture and Rural Development;
- Ministry of Planning and Investment.
4. Form of the subsidy
Export bonus.WT/ACC/VNM/13/Add.2
Page 21
5. To whom and how the subsidy is provided
a. Export bonus contingent upon export performance of agricultural products in 2001
Eligibility (2001): enterprises of all economic sectors exporting rice, coffee, pork, canned
fruits and vegetables.
The bonus is applied contingent upon export volume (in terms of FOB prices in Viet Nam’s
ports or equivalent delivery means) of products exported in 2001. Export volume in other
foreign currencies are to be converted into US$ at the market exchange rate in the inter-bank
foreign currency market at the time of payment.
b. Export bonus contingent upon export performance  in 2002
The reward contingent upon export volume is applied to entities of all economic sectors
exporting the following products: rice, coffee, pork, canned fruits and vegetables, tea,
peanuts, pepper, cashew nuts, handicrafts, rattan and bamboo ware,  plastic and mechanicalproducts (excluding products exported under Government agreements and  those exported to
pay loans)
6. Subsidy per unit, or in case where this is not possible, the total amount or the annual
amount budgeted for the subsidy
- Bonus in 2001:
No. Products Bonus level
1. Rice VND 180/US$
2. Coffee VND 220/US$
Pork
- piglet  VND 280/US$
- half-grown pork VND 450/US$3.
- cuts of pork VND 900/US$
Canned fruits and vegetables
- Canned fruits VND 400/US$4.
- Canned vegetables VND 500/US$
- Bonus in 2002:
Number Product Bonus level
1. Rice of all kinds VND 180/US$
Coffee
- Unprocessed coffee VND 220/US$2.
- Instant coffee of all kinds and coffee powder VND 100/US$
Pork
- piglet, half-grown pork VND 280/US$3.
- Pork in cuts, lean blocs VND 900/US$
4. Cattle and poultry meats of all kinds VND 100/US$
Fruit and vegetables of all kinds
- Canned fruits and vegetables VND 400/US$5.
- Fresh, dried and semi-processed fruits and vegetables VND 100/US$
6. Teas of all kinds VND 220/US$
7. Peanut VND 100/US$WT/ACC/VNM/13/Add.2
Page 22
Number Product Bonus level
8. Pepper VND 100/US$
9. Cashew nut (excluding unprocessed cashew nut) VND 100/US$
10. Handicrafts VND 100/US$
11. Rattan and bamboo ware VND 100/US$
12. Plastic products VND 100/US$
13. Mechanical products VND 100/US$
7. Duration of the subsidy and/or an y other time limit attached to it
From 2001 -
8. Statistic data permitting an assessment of the trade effects of the subsidy
As mentioned in above tables.WT/ACC/VNM/13/Add.2
Page 23
IX. EXPORT SUPPORTING CREDIT (UPDATING OF PROGRAM VIII DOCUMENT
WT/ACC/VNM/13/ADD.1)
1. Title of the subsidy program
Export support credit.
2. Policy objectives and/or purposes of the subsidy
To support enterprises, economic organizations and individuals to develop trade and
production of export commodities according to the state’s export promotion policy.
3. Background and authority for the subsidy
a. Basis
- Decree No.50/1999/ND-CP dated 8 July 1999 of  the Government on the organization
and functions of Development Assistance Fund;
- Decision No.133/2001/QD-TTg da ted 10 September 2001 of the Prime Minister on
the issuance of Regulation on Export Supporting Credit and related guiding legal
documents.
b. Authority
The Development Assistance Fund.
4. Form of the subsidy
Medium and long-term export support credit including:
- Medium and long-term investment loans;
- Post-investment interest rate support;
- Investment credit guarantees.
Short-term export supporting credit:- Loans
- Bidding guarantee and contractual performance guarantee.
5. To whom and how the subsidy is provided
Beneficiaries: enterprises of all economic sectors; cooperatives;  union of cooperatives;
households and individuals having Business Registration Certificates (hereinafter called“entities”).
a. Medium and long-term loans:
- Beneficiaries: entities implementing projects or contributing capital to projects
producing, manufacturing and processing export-oriented commodities.WT/ACC/VNM/13/Add.2
Page 24
- The loans’ interest rates are applied according to those of development investment
loans from the state;
- The maximum period of loans are 10 years; in special cases the period may be
extended.
b. After-investment interest rate support
- Beneficiaries: entities implementing the projects mentioned in subsection (a) above
which have not been provided preferential investment loans or investment credit
guarantees by the state and have borrowed capital from credit institutions operating
legally in Viet Nam;
- The amount of the post-investment interest rate support is the difference between the
interest rate of credit institutions and that of the development investment loan
borrowed from the state at the time of borrowing.
c. Investment credit guarantee
- Beneficiaries: entities implementing projects mentioned in subsection (a) above when
borrowing capital from credit institutions legally operating in Viet Nam;
- Guarantee conditions: entities entitled to investment credit guarantee according to
general regulations which have not been fully or partially provided with developmentinvestment loan by the state. Entities being provided investment credit guarantee have
to pay a guarantee fee of 3% of the guaranteed amount per year.
- The guaranteed amount for each project is determined by the Development
Assistance Fund and shall not be higher than 100% of the capital borrowed from
credit institutions within the scope of total investment capital.
d. Short-term loan
Beneficiaries:
- Entities producing, processing, trading and exporting commodities under the export
promotion and priority program determined annually or periodically by the Prime
Minister (commodities in 2001: rice, coffee, pork, canned fruits and vegetables;commodities in 2002: rice, coffee, pork, canned fruits and vegetables, tea, peanuts,
pepper, cashew nuts, handicrafts, rattan and bamboo ware,  plastic and mechanical
products).
- Entities exporting to new markets or exporting for maintaining traditional markets.
- Entities implementing projects mentioned in subsection (a) above in the first year of
signing export contract since the projects have been completed and put into
production.
Loan amount:
- Loan before delivery: the loan amount does not exceed 80% of L/C value or 70% of
export contract value.WT/ACC/VNM/13/Add.2
Page 25
- Loan after delivery: the loan amount does not exceed 90% of the value of valid bill of
exchange.
Short-term interest rate is equivalent to 80% of interest rate of the development investment
loan from the state at the time of signing loan contract and is kept constant during the loan
period.
Short-term loan period depends on the time requir ed to implement export contract but shall
not be longer than 12 months.
6. Subsidy per unit, or in case where this is not possible, the total amount or the annual
amount budgeted for the subsidy
Total amount of short-term loans for export support is VND 140,360 million  in 2001, VND
3,005,998 million in 2002.
7. Duration of the subsidy and/or any other time limit attached to it
From 25 September 2001
8. Statistic data permitting an assessment of the trade effects of the subsidy
Not assessable.WT/ACC/VNM/13/Add.2
Page 26
X. TRADE PROMOTION SUPPORT (NEW)
1. Title of the subsidy program
Support for market development and trade promotion activities .
2. Policy objectives and/or purposes of the subsidy
To enhance market development and trade promotion activities for export.
3. Background and authority for the subsidy
a. Background
- Resolution No.05/2001/ND-CP dated 24 May 2001 of the Government on
supplementing some solutions to administer the economic plan for the year 2001;
- Circular No.61/2001/TT-BTC dated 1 Augu st 2001 of the Ministry of Finance
guiding the allocation of supporting amount for market development  and trade
promotion activities.
b. Authorities
- Ministry of Trade;
- Ministry of Finance.
4. Form of the subsidy
Partial support for the expenditures arisen out of trade promotion activities (granted by Export
Promotion Fund).
5. To whom and how the subsidy is provided
- Beneficiaries: enterprises of all economic sectors conducting export activities are
eligible to this program. Professional and sectoral associations bringing export
contracts to their member entities through trade promotion activities are also eligibleto this program by transferring the supporting amounts from member entities.
- Supporting amount for trade promotion activities
- With respect to trade promotion expenditures for collecting information on
export markets, customers and products; for export market surveys; for
consultancy fees for exporting products: the supporting amount is determinedas 0,2% of export volume (FOB price), but must not exceed 50% of actual
expenditures for these activities of an enterprise;
- With respect to expenditures for organizing stalls in trade fairs and
exhibitions held abroad: the supporting amount is determined as 0,2% of
export volume (FOB price), but must not exceed 70% of actual expenditures
for these activities of an enterprise;
- With respect to trade promotion expenditures of opening Viet Nam Trade
Promotion Centers abroad; opening Representative Offices of VietnameseWT/ACC/VNM/13/Add.2
Page 27
enterprises and professional and sectoral associations abroad: enterprises are
entitled for a supporting amount of not higher than 50% initial investment
costs from the state. The supporting amount is determined as 0.1% of export
volume (FOB price), but shall not be higher than 70% of actual expenditures
for these activities of an enterprise.
- Source of support: support for market development and trade promotion activities are
granted by the Export Promotion Fund.
6. 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.
7. Duration of the subsidy and/or any other time limit attached to it
From 1 January 2001
8. Statistic data permitting an assessment of the trade effects of the subsidy
Not assessable.WT/ACC/VNM/13/Add.2
Page 28
XI. SUPPORT FOR MECHANICAL PRODUCTS (NEW)
1. Title of the subsidy program
Support for mechanical products.
2. Policy objectives and/or purposes of the subsidy
To facilitate the development of mechanical industry.
3. Background and authority for the subsidy
a. Background
- Decision No.67/2000/QD-BCN  dated 20 November 2000 promulgating the list of
mechanical products subject to investment incentives stipulated in Article 5.1 of the
Resolution No.11/2000/NQ-CP dated 31 July 2000 of the Government.
- Resolution No.05/2001/ND-CP dated 24 May 2001 of the Government on
supplementing some solutions to manage the economic plan for the year 2001;
b. Authorities
- Ministry of Industry;
- Ministry of Finance;
- Development Assistance Fund.
4. Form of the subsidy
Preferential credit terms.
5. To whom and how the subsidy is provided
- Beneficiaries: investment projects manufacturing mechanical products.
- How the subsidy is provided: investors of the above-mentioned projects signing
contract for borrowing the state development investment loans from the DevelopmentAssistance Fund since 5 December 2000 are entitled to special preferential interest
rate of 3.5%/year (equal to 50% of normal interest rate) for the loans distributed
before 1 June 2001 and 3%/year for those distributed since 1 June 2001. The credit
duration is 12 years. The investors do not have to pay interest for the first two years
and shall pay their debt since the fifth year of the loan.
6. Subsidy per unit, or in case where this is not possible, the total amount or the annual
amount budgeted for the subsidy
Number of projects: 9
Value of loan contracts signed: VND 239.447 billion.WT/ACC/VNM/13/Add.2
Page 29
7. Duration of the subsidy and/or any other time limit attached to it
From 2001 -
8. Statistic data permitting an assessment of the trade effects of the subsidy
Negligible.WT/ACC/VNM/13/Add.2
Page 30
XII. SUPPORT FOR INVESTMENT PROJECTS IN MANUFACTURING ENGINE OF
TWO-WHEEL MOTORBIKE (NEW)
1. Title of the subsidy program
Support for investment projects in manufacturing engine of two-wheel motorbike.
2. Policy objectives and/or purposes of the subsidy
To develop motorbike industry in particular and mechanical industry in general.
3. Background and authority for the subsidy
a. Background
- Decree No.43/1999/ND-CP dated 29 June 1999 of the Government on the state
development investment credits;
- Circular No.102/2001/TT-BTC dated 20 December 2001 guiding the implementation
of borrowing development investment loans for investment projects in manufacturingtwo-wheel motorbike's engine;
- Decision No.38/2002/QD-TTg dated 14 /3/2002 of the Prime Minister on
administration of manufacturing, asse mbling and importing parts of two-wheel
motorbike;
b. Authority
Ministry of Industry.
4. Form of the subsidy
Preferential credit terms.
5. To whom and how the subsidy is provided
- Beneficiaries: investment projects in manufacturing engine of complete two-wheel
motorbike by enterprises of all economic sectors. These projects must achieve
localization ratio of at least 40% with respect to parts and accessories used in
manufacturing engine of two-wheel motorbike since the first year of operation. The
localization ratio must increase 10% in every subsequent year and be determined by
the Ministry of Industry according to relevant regulations.
- The amount of loan for each project is equal to 70% of total investment capital.
- Special interest rate is applied (3%/year) and borrowers are exempted from interest
rate payment in the first two year.
- Loan duration is determined according to relevant production cycle and capital return
capability of approved projects, but not longer than 10 years.WT/ACC/VNM/13/Add.2
Page 31
6. 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.
7. Duration of the subsidy and/or any other time limit attached to it
From 5 January 2002 to 31 December 2002
(This program is not applied from 1 January 2003)
8. Statistic data permitting an assessment of the trade effects of the subsidy
Negligible.WT/ACC/VNM/13/Add.2
Page 32
XIII. SUPPORT FOR THE SHIP-BUILDING INDUSTRY (NEW)
1. Title of the subsidy program
Support for the ship-building industry.
2. Policy objectives and/or purposes of the subsidy
To encourage and facilitate the maritime ship-building industry.
3. Background and authority for the subsidy
a. Background
- Decision No.117/2000/QD-TTg dated 10 October 2000 of the Prime Minister;
- Resolution No.05/2001/ND-CP dated 24 May 2001 of the Government on
supplementing some solutions to manage the economic plan for the year 2001.
b. Authority
Ministry of Transport.
4. Form of the subsidy
- Preferential credit terms;
- Tax incentive.
5. To whom and how the subsidy is provided
- Investors signing contract for borrowing development investment loans from the
State to invest in projects of upgrading, expanding, constructing ship-building facility
since 25 October 2000 enjoy preferential interest rate of 3.5%/year for the loans
disbursed before 1 June 2001 and 3%/year for those disbursed since 1 June 2001.
- Investors purchasing new ships by the State development investment loans under the
credit contracts signed by domestic ship-building entities since 25 October 2000 areentitled to preferential interest rate of 5%/year for loans disbursed before 1 June 2001
and 3%/year for loans disbursed since 1 June 2001.
- Import duty for machinery, equipment, means of transportation (of the technological
line) to establish fixed assets of an enterprise and raw material, semi-products used in
ship-building process is exempted.
- Corporate income tax is exempted for the first two years from the time of having
taxable income and is reduced by 50% of the tax payable for the 2 subsequent years.
6. 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.WT/ACC/VNM/13/Add.2
Page 33
7. Duration of the subsidy and/or any other time limit attached to it
From 25 October 2000
8. Statistic data permitting an assessment of the trade effects of the subsidy
Negligible.WT/ACC/VNM/13/Add.2
Page 34
XIV. ASSISTANCE FOR TRADE DEVELOPMENT IN MOUNTAINOUS, ISLAND AND
ETHNIC MINORITY AREAS (NEW)
1. Title of the subsidy program
Interest rate is reduced for the loans provided for merchants in the mountainous, island and
ethnic minority areas.
2. Policy objectives and/or purposes of the subsidy
To develop the mountainous, island and ethnic minority areas.
3. Background and authority for the subsidy
a. Background
- Decision No.02/2002/ND-CP dated 3 Janua ry 2002 of the Government on amending
and supplementing several Articles of Decree No.20/1998/ND-CP dated 31 March
1998 of the Government on trade development in the mountainous, island and ethnicminority areas;
- Circular No.04/2002/TT-NHNN dated 3 July  2002 of the State Bank of Viet Nam
guiding the implementation of reduction of loan interest rate for merchants in
mountainous, island and ethnic minority areas as stipulated in Decree
No.02/2002/ND-CP dated 3 Janua ry 2002 of the Government.
b. Authority
- State Bank of Viet Nam;
- State-owned commercial banks.
4. Form of the subsidy
Reduction of loan interest rate granted by state-owned commercial banks.
5. To whom and how the subsidy is provided
Beneficiaries: merchants including individuals, cooperatives and households having Business
Registration Certificates and doing business on a regular and independent basis:
- with head office or branch(es) in the mountainous, island and ethnic minority areas;
- whose business activities are instructed by and amount, value, period of warehousing
and retailing essential goods are certified by people’s committees of provinces and
cities under central authority. The amount and value of agricultural and forestry
products purchased in the mountainous, island and ethnic minority areas must be
certified by people's committees at district and town levels.
Interest rate reduction granted by state-owned commercial banks is compensated from the
state budget.WT/ACC/VNM/13/Add.2
Page 35
6. 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.
7. Duration of the subsidy and/or any other time limit attached to it
From 18 January 2002
8. Statistic data permitting an assessment of the trade effects of the subsidy
Negligible.WT/ACC/VNM/13/Add.2
Page 36
XV. ASSISTANCE TO ENTERPRISES FACING DIFFICULTIES DUE TO OBJECTIVE
REASONS (NEW)
1. Title of the subsidy program
Assistance to enterprises facing difficulties due to objective reasons.
2. Policy objectives and/or purposes of the subsidy
To assist enterprises facing difficulties due to objective reasons to recover trade and
production capacity.
3. Background and authority for the subsidy
a. Background
- Decree No.69/2002/ND-CP dated 12 July 2002 of the Government on managing and
settling outstanding debts of state-own enterprises.
- Decision No.172/2001/QD-TTg dated 5 Nove mber 2001 of the Prime Minister on
postponement, freezing and forgiveness of tax and other dues payable to the state
budget for enterprises facing difficulties due to objective reasons;
- Circular No.32/2002/TT-BTC dated 10 April 2002 guiding the implementation of
Decision No.172/2001/QD-TTg dated 5 Oc tober 2001 of the Prime Minister on
postponement, freezing and forgiveness of tax and other dues payable to the statebudget for enterprises facing difficulties due to objective reasons;
b. Authority
Ministry of Finance.
4. Form of the subsidy
Postponement, freezing and forgiveness of tax and other dues to the state budget.
5. To whom and how the subsidy is provided
Eligible beneficiaries for settlement of payable tax and other dues to the state budget include:
enterprises established and operated under the Law on state-own enterprise, Law on
Enterprises, Law on Foreign Investment in Viet Nam (hereinafter called "enterprises");
organisations and individuals other than the above (excluding the farmers subject to theregulations on agricultural land use tax) currently doing business, who owe tax and other dues
to the state budget because of objective reasons.
Outstanding tax and other dues to the state budget to be settled include: turnover tax, value
added tax, excise tax, export and import tax, land tax, income tax, corporate income tax,
royalty, tax on agricultural land use, the value of land use right, land use rental, fees for using
state budget capital, basic depreciation, fees an d charges belonging to the state budget, fines
on the above-mentioned amounts overdue to the state budget.WT/ACC/VNM/13/Add.2
Page 37
a. Postponement of payable tax and other dues to the state budget:
Beneficiaries: enterprises owing tax  and other dues to the state budget are not able to make
that payment  in time due to the following objective reasons:
- Policy change in terms of taxation and other dues to the state budget, for example: the
Government increases tax rate and other dues to the state budget, therefore directlyaffects enterprises’ business activity, and consequently causes debts to these
enterprises.
- Relocation of enterprises upon request of competent authorities, which forces them to
cease or reduce trade and production scale, to increase investment costs in new
location, and consequently causes tax debt to these enterprises.
- Restructure of trade and production activities, change in business sector, production
of new products in replacement of old products, together with difficulties in thebeginning stage, result in loss and tax debt.
- Loss due to natural disaster, which directly affects enterprises’ business activity and
results in tax debt.
The duration of postponement in the above circumstances are determined as follows:
- 6 months with respect to enterprises owin g tax due to policy change in terms of
taxation and other dues to the state budget; an extension of another 6 months may be
considered;
- 12 months with respect to enterprises owing tax due to relocation, restructure of trade
and production activities and natural disaster.
Enterprises producing and trading goods and providing services which have not received the
capital that should have been granted from the state budget, consequently are not able to pay
tax and other dues to the state budget.
Enterprises exporting goods for foreign debt payment as instructed by the Government, which
have not received the payment that should have been provided by the Government,
consequently are not able to pay tax and other dues to the state budget.
b. Freezing of outstanding tax and other dues to the state budget:
Eligibility: enterprises having outstanding tax and other dues to the state budget, which are
not able to make that payment due to their nearly bankrupt or dissolved situation, are
considered to be frozen from these outstanding tax and other dues. The duration of freezing is
determined between the date of debt confirmation and the date of bankruptcy or dissolution.
c. Forgiveness of outstanding tax and other dues to the state budget:
Outstanding tax and other dues to the state budget with respect to state-own enterprises under
the process of transfer, equitization or merger into another state-own enterprises are forgiven.
Outstanding tax and other dues to the state budget with respect to state-own enterprises which
suffer loss due to objective reasons and are not able to pay that debt.WT/ACC/VNM/13/Add.2
Page 38
6. 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.
7. Duration of the subsidy and/or any other time limit attached to it
From 21 January 2001
8. Statistic data permitting an assessment of the trade effects of the subsidy
Negligible.WT/ACC/VNM/13/Add.2
Page 39
XVI. INVESTMENT INCENTIVES FOR SCIENCE AND TECHNOLOGY PROJECTS
(UPDATING PROGRAM XIV, DOCUMENT WT/ACC/VNM/13/ADD.1)
1. Title of the subsidy program
Investment incentives for science and technology projects.
2. Policy objectives and/or purposes of the subsidy
To encourage enterprises to invest in science and technology projects with a view to
upgrading and improving technology, improvin g product quality and production efficiency.
3. Background and authority for the subsidy
a. Background
Decree No.119/1999/ND-CP dated 18 Septembe r 1999 of the Government on several
financial policies and measures to encourage enterprises to invest in science and technology
projects;
b. Authorities
Ministry of Finance;
Ministry of Science and Technology.
4. Form of the subsidy
- Tax incentives;
- Land use incentives;
- Credit incentives.
5. To whom and how the subsidy is provided
a Eligibility:
Enterprises of all economic sectors investing in science and technology projects.
b. How the subsidy is provided:
- Exemption, reduction of corporate income tax:
- Enterprises operating under the Law on Domestic Investment Promotion (as
amended) which apply high technology or provide scientific and
technological services enjoy corporate income tax rates for the income earnedfrom these activities as follows:
- 25%;
- 20% with respect to enterprises investing in areas of difficult socio-
economic conditions;WT/ACC/VNM/13/Add.2
Page 40
- 15% with respect to enterprises investing in areas of specially
difficult socio-economic conditions.
- Enterprises with foreign-owned capital and foreign parties to business co-
operation contracts operating under the Law on Foreign Investment in Viet
Nam, which implement investment projects in application and developmentof high technology, providing scientific and technological services are
entitled to enjoy corporate income tax rates of 20% for the period of 10 years
since the time of commencing production and business.
- Incentives on land use payment, land rental, land use tax:
- In case that enterprises have to pay the value of land use right for the
allocated land:
- The land use payment is reduced by 50%;
- The land use payment is exempted if the allocated land is in areas of
difficult socio-economic conditions or specially difficult  socio-
economic conditions.
- In case that enterprises have to pay land rental for the leased land:
- The land rental is exempted for 6 years from the time of signing land
lease contract;
- The land rental is exempted for 15 years from the time of signing of
land lease contract if the leased land is in areas of difficult socio-
economic conditions;
- The land rental is exempted throughout the duration of investment
project if the leased land is in areas of specially difficult socio-
economic conditions.
- In case that enterprises have to pay land use tax for the allocated land:
- The land use tax is exempted for 6 years from the time of land
allocation;
- The land use tax is exempted for 15 years from the time of land
allocation if the allocated land is in areas of difficult socio-economic
conditions;
- The land use tax is exempted throughout the duration of investment
project if the leased land is in areas of specially difficult socio-
economic conditions.
- Import duty incentives: exemption of import duty on imported machinery, equipment,
materials, scientific and technological equipment with automatic control devices,
experimental samples, measurement and experimental devices directly used in R&D
projects and contracts.WT/ACC/VNM/13/Add.2
Page 41
- Credit incentives:
- Enterprises operating under the Law on Domestic Investment Promotion (as
amended) can borrow medium and long-term loans which can satisfy up to
70% of their projects’ investment capital at preferential interest rate from the
Development Assistance Fund, Export Promotion Fund and Science andTechnology Development Assistance Fund.
- In case that an enterprise has been guaranteed by the Development Assistance
Fund to borrow medium and long term loans at the Bank for Investment and
Development, it will be refunded an amount equal to the difference between
the preferential interest rate and the normal borrowing rate by the
Development Assistance Fund.
6. 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.
7. Duration of the subsidy and/or any other time limit attached to it
From 1999 -
8. Statistic data permitting an assessment of the trade effects of the subsidy
Negligible.WT/ACC/VNM/13/Add.2
Page 42
ANNEX I
List of business fields and sectors eligible for investment incentives
(issued together with Decree No 35/2002/ND-CP dated 29 March 2002)
Investment projects in branches and trades of the following domains shall be eligible for
preferences:
1. Afforestation and zoning for forest regeneration; planting of perennial trees on
abandoned land, waste land or bare hills; virgin land reclamation; salt-making;
aquaculture in unexploited water areas:
1. Planting and protecting forests;
2. Planting perennial industrial and fruit trees abandoned and bare hills;
3. Reclaiming land for agricultural, forestry and fishery production.
4. Making, exploiting and refining salt;5. Raising aquatic creatures in water areas which have yet to be exploited;
II. Infrastructure construction, development of public transportation; development of
education and training, health care and national culture
1. Building new electric power plants; power  distribution and transmission networks,
building establishments operated by solar energy, wind power or bio-gas;
2. Building water plants and water supply system for daily usage and industrial purpose,
and building the discharge systems;
3. Building and upgrading such transport system as: bridges, roads, airports, harbors,
railway and bus stations, building new railways;
4. Building living infrastructure for densely populated areas in regions belonging to
Category B or C annexed to this Decree;
5. Developing public transportation: more investment into railway transport means, road
transport vehicles (cars from 17 seats or above), water-way transport (by motored
means);
6. Providing Internet connection and access services and Internet application services in
regions belonging to Category B or C annexed to this Decree, postal and carrier
services;
7. Opening semi-public, people-funded schools and private schools at different levels:
pre-school education, primary education,  junior and senior high education.
professional secondary education, college and tertiary education;
8. Setting up vocational training establishments and establishments for raising workers'
skills.WT/ACC/VNM/13/Add.2
Page 43
9. Setting up national culture houses, music and arts troupes; producing, manufacturing
or repairing national musical instruments, maintaining and preserving national
cultural houses;
10. Setting up people-funded and private medical establishments for medical examination
and treatment, setting up establishments for the prevention and treatment of diseases,setting up centers for relieving and providing health care for orphanage, elderly and
disadvantaged people;
III. Export goods production and trading
Enterprises producing and trading goods with an export turnover exceeding 30% of that of the
goods produced and/or traded by the enterprises in a fiscal year.
IV. Offshore fishing, processing of agricultural, forest and aquatic products; technical
services directly for agricultural, forestry and fishery production.
1. Offshore fishing;
2. Processing of agricultural products from domestic materials: processing poultry and
cattle products; processing and preserving fruit and vegetables; producing oil,
essential oil and fat from plants; producing milk and milk derivatives; producing raw
powder; producing food for cattle, poultry and aquatic creatures; producing cannedand bottled juice.
3. Producing pulp, paper, carton and board directly from domestic sources of
agricultural and forestry materials.
4. Processing and preserving fishery products from domestic sources of materials.
5. Providing supporting services for the cultivation of agricultural, industrial and
forestry plants; providing supporting services for breeding; providing preservation
services for agricultural, forestry and fishery products; building stores for preserving
agricultural, forestry and fishery products.
V. Scientific, technological research and development as well as services; consultancy on
legal matters, investment, business, business administration, intellectual property rightprotection and technology transfer:
1. Setting up technical establishments, laboratory centers for applying new technology
to production; producing new and scarce materials.
2. Producing computers and computer software.
3. Providing such services as research on information technologies, training human
resources for information technologies.
4. Producing semi-conducting materials, electronic components; producing
telecommunication and Internet equipments; applying new technologies in the
production of information and telecommunication equipments.
5. Applying modern technologies; applying new bio-technologies in the health-care
sector, in the production of plant seeds, animal breeds, bio-fertilizer, bio-pesticide,WT/ACC/VNM/13/Add.2
Page 44
animal vaccine; investing in the areas of waste treatment, environment pollution,
waste recycle.
6. Applying technologies to using or producing machinery and equipment consuming
wind power, solar, earth, tide or biological energy.
7. Providing consultancy service on legal matters, investment, trade, business
administration, science and technology, Intellectual property right and technology
transfer.
VI. Investment in the establishment of production chains, business/production expansion
and technology renovation; ecological and environmental improvement and sanitation
in urban areas; relocation of production establishments out of urban areas;
diversification of branches, trades and products.
1. Investing new production lines, increasing production scales, or improve technologies
applied to branches and trades belonging to sectors stipulated in this Annex.
2. Investing in waste treatment systems for the purpose of protecting the environment;
waste collection.
3. Investing in relocating production establishments away from urban areas or into
industrial parks, export-processing zones, high-tech or industrial complexes.
VII. Other branches and trades which need to be developed with priority
1. Planting sugar-cane, cotton, tea, to supply input for the processing industry; planting
medical herbs; producing plant seeds and animal breeds.
2. Producing toys for children; fabric weaving and completing woven products;
producing silk and fiber of all types; leather tanning and processing.
3. Raising cattle, poultry and aquatic farming according to plans for shifting agricultural
production structure with farming scale and above.
4. Producing basic chemicals, refined chemicals, specialized chemicals, dying
substance.
5. Producing medicines for treatment of human diseases; medical equipment, orthopedic
equipment; specialized tools and vehicles for disadvantaged people; building
medicine stores; storing medicines for human treatment in case of flood, storm,
natural disaster, or fatal diseases; medicines for plant protection; medicine for the
prevention and treatment of diseases related to animals and aquatic creatures.
6. Manufacturing electric tools of medium a nd high voltage; diesel engines; equipment
and spare parts for transport and fishing ships; tools-making machines, machinery,
equipment and spare parts for agricultural and forestry production; food processingmachinery; machinery for the garment and textile industry; machinery for leather
processing; mining machinery; construction machinery; industrial robots;
locomotives and carriages; automobiles of all types and automobiles spare parts;
electric generators; precision mechanical equipment; equipment and machinery for
safety inspection and supervision of indust rial production processes; prototypes forWT/ACC/VNM/13/Add.2
Page 45
the production of metal and non-metal products; building and repairing ships and
boats; producing waste treatment equipment.
7. Producing high standard steel, alloy, non-ferrous metals, scarce metals, spongy iron
for industrial uses; specialized cements, materials specialized for isolating sound,
electricity and temperature, synthetic materials as replacement for wood, plastic usedfor construction, glass fiber, flame-resistant materials; coke coal, activated carbon.
8. Traditional handicrafts: carving, mother-o f-pearl inlaying, lacquer ware, intaglio,
bamboo and rattan products, carpet making, silk weaving, pottery, ceramics,
wickerwork, bronze casting and rhamnoneuron paper making;
9. Building 1
st class markets and exhibition centers; investing in trade promotion
activities, capital lending and mobilizing of People’s Credit Funds.
10. Providing rescuing and pilotage services11. Investing national tourist resources, ecological tourist resource, national parks;
investing in building cultural parks with a full range of sports and recreation
activities.
12. Investing in the construction and business of infrastructure of industrial parks, export-
processing zones and hi-tech parks; investing in production and processing activitiesin industrial parks, export-processing zones and hi-tech parks, industrial parks of
small and medium scale, industrial complexes.WT/ACC/VNM/13/Add.2
Page 46
ANNEX II
List of areas of socio-economic disadvantages
(issued together with Decree No. 35/2002/N§-CP dated 29 March 2002)
I. Districts in highly mountainous provinces
1. Bac Kan Province
Bac Kan town
2. Cao Bang Province
1Cao Bang town
3. Ha Giang Province
Bac Quang distric
Ha Giang town
4. Lai Chau Province
Dien Bien Phu town
Dien Bien district
Lai Chau town
5. Lao Cai Province
Bao Thang district
Cam Duong town
Lao Cai town
6. Son La Province
Mai Son district
Son La townYen Chau district
II. Districts in mountainous and plain areas
7. Bac Giang Province
Luc Ngan district
Luc Nam districtYen The district
8. Hoa Binh Province
Kim Boi district
Ky Son district
Lac Son district
Luong Son district
Lac Thuy districtWT/ACC/VNM/13/Add.2
Page 47
Tan Lac district
Yen Thuy district
Cao Phong district
9. Lang Son Province
Bac Son district
Cao Loc district
Chi Lang district
Huu Lung district
Loc Binh district
Trang Dinh district
Van Lang district
Van Quan district
10. Phu Tho Province
Doan Hung district
Ha Hoa district
Song Thao district
Thanh Ba districtTam Thanh district
Phu Ninh district
11. Quang Ninh Province
Hoanh Bo district
Hai Ninh districtTien Yen district
Van Don district
Hai Ha district
Dam Ha district
12. Tuyen Quang Province
Ham Yen district
Son Duong district
Yen Son district
Tuyen Quang town
13. Thai Nguyen Province
Dong Hy district
Dai Tu districtDinh Hoa district
Phu Luong district
14. Yen Bai Province
Tran Yen district
Van Yen districtVan Chan districtWT/ACC/VNM/13/Add.2
Page 48
Yen Binh district
Nghia Lo town
15. Binh Phuoc Province
Dong Phu district
Phuoc Long districtBinh Long district
16. Dac Lak Province
Cu Jut district
Cu M’gar district
Dak R’Lap district
Dak Mil district
Ea H’leo districtEa Kar district
Ea Sup district
Krong Pac district
Krong Buk district
Krong Bong districtKrong Ana district
Krong Nang district
17. Gia Lai Province
An Khe district
Ayun Pa districtChu Se district
18. Kon Tum Province
Kon Tum town
19. Lam Dong Province
Bao Lam district
Cat Tien district
Di Linh district
Da Teh district
Don Duong district
Duc Trong district
Da Huoai district
Lam Ha district
20. Binh Thuan Province
Bac Binh district
Duc Linh district
Ham Thuan Bac district
Tanh Linh districtHam Thuan Nam districtWT/ACC/VNM/13/Add.2
Page 49
21. Binh Dinh Province
Hoai An district
Phu My district
Phu Cat district
Tay Son district
22. Hai Duong Province
Chi Linh district
Kinh Mon district
23. Ha Tinh Province
Huong Khe district
Huong Son district
Ky Anh districtNghi Xuan district
24. Ninh Binh Province
Tam Diep town
Nho Quan district
Yen Mo district
25. Nghe An Province
Anh Son district
Nghia Dan district
Tan Ky district
Thanh Chuong district
26. Ninh Thuan Province
Ninh Hai district
Ninh Phuoc district
27. Phu Yen Province
Song Cau district
Tuy Hoa district
Tuy An district
28. Quang Tri Province
Dak Rong district
Vinh Linh district
Gio Linh district
Cam Lo districtTrieu Phong district
Hai Lang districtWT/ACC/VNM/13/Add.2
Page 50
29. Quang Nam Province
Dai Loc district
Que Son district
30. Quang Ngai Province
Nghia Hanh district
Son Tinh district
31. Thanh Hoa Province
Thach Thanh district
Quang Dien district
Phong Dien district
Huong Tra district
Phu Loc districtPhu Vang district
32. Thua Thien Hue Province
Nam Dong district
33. An Giang Province
An Phu district
Tri Ton district
Tinh Bien district
Thoai Son district
34. Bac Lieu Province
Bac Lieu town
Vinh Loi district
35. Ca Mau Province
Thoi Binh district
Tran Van Thoi district
Cai Nuoc districtDam Doi district
Ngoc Hien district
36. Dong Nai Province
Dinh Quan district
Tan Phu district
Xuan Loc district
Long Khanh districtWT/ACC/VNM/13/Add.2
Page 51
37. Kien Giang Province
Chau Thanh district
Hon Dat district
Giong Rieng district
An Minh districtTan Hiep district
Ha Tien town
Kien Luong district
38. Khanh Hoa Province
Van Ninh district
Cam Ranh district
Dien Khanh district
39. Soc Trang Province
Long Phu district
My Xuyen district
Soc Trang town
40. Tra Vinh Province
Cau Ngang district
Cau Ke district
Tieu Can district
41. Vinh Phuc Province
Lap Thach district
Tam Duong district
Binh Xuyen district
42. Can Tho Province
Long My district
Vi Thuy districtO Mon district
43. Tay Ninh Province
Tan Bien district
Tan Chau district
Chau Thanh district
Ben Cau district
44. Thai Binh Province
Thai Thuy districtWT/ACC/VNM/13/Add.2
Page 52
45. Long An Province
Duc Hue district
Tan Hung district
Vinh Hung district
Moc Hoa districtTan Thanh district
Duc Hoa district
46. Dong Thap Province
Hong Ngu district
Tan Hong district
Tam Nong district
Thap Muoi district
47. Tien Giang Province
Tan Phuoc district
48. Quang Binh Province
Quang Ninh district
Le Thuy districtBo Trach district
Quang Trach district
49. Ba Ria – Vung Tau Province
Chau Duc district
Xuyen Moc district
50. Vinh Long Province
Tra On district
Tam Binh district
Binh Minh district
51. Ha Noi
Soc Son district
52. Ho Chi Minh City
Can Gio district
Nha Be district
53. Ben Tre Province
Thanh Phu district
Ba Tri districtBinh Dai districtWT/ACC/VNM/13/Add.2
Page 53
54. Bac Ninh Province
Gia Binh district
Que Vo
55. Ha Tay Province
Ba Vi district
56. Da Nang City
Hoa Vang district
57. Ha Nam Province
Thanh Liem district
58. Hung Yen Province
An Thi district
Phu Cu districtTien Lu district
59. Binh Duong Province
Phu Giao districtWT/ACC/VNM/13/Add.2
Page 54
ANNEX III
List of areas of socio-economic harsh conditions
(issued together with Decree No. 35/2002/ND-CP dated  29 March 2002)
I. Districts in highly mountainous and islands areas
1. Bac Kan Province
Ba Be district
Bach Thong district
Cho Moi district
Cho Don district
Ngan Son district
Na Ri district
2. Cao Bang Province
Bao Lac district
Ha Lang district
Ha Quang district
Hoa An district
Nguyen Binh districtQuang Uyen district
Thong Nong district
Tra Linh district
Thach An district
Trung Khanh districtPhuc Hoa district
3. Ha Giang Province
Bac Me district
Dong Van district
Hoang Su Phi districtMeo Vac district
Quan Ba district
Vi Xuyen district
Xin Man district
Yen Minh district
4. Lai Chau Province
Muong Lay district
Muong Te district
Phong Tho district
Tua Chua district
Tuan Giao district
Sin Ho districtDien Bien Dong district
Muong Nhe district
Tam Duong districtWT/ACC/VNM/13/Add.2
Page 55
5. Lao Cai Province
Bac Ha district
Bat Sat district
Muong Khuong district
Than Uyen districtVan Ban district
Sa Pa district
Bao Yen district
6. Son La Province
Bac Yen district
Moc Chau district
Muong La districtQuynh Nhai district
Thuan Chau district
Song Ma district
Phu Yen district
7. Binh Thuan Province
Phu Quy district
8. Ba Ria – Vung Tau Province
Con Dao district
9. Da Nang City
Hoang Sa island district
10. Hai Phong City
Bach Long Vi district
Cat Hai district
11. Khanh Hoa Province
Truong Sa district
12. Kien Giang Province
Kien Hai district
Phu Quoc district
13. Quang Ninh Province
Co To district
14. Quang Ngai Province
Ly Son districtWT/ACC/VNM/13/Add.2
Page 56
II. Districts in mountainous and plain areas
1. Bac Giang Province
Son Dong district
2. Hoa Binh Province
Da Bac district
Mai Chau district
3. Lang Son Province
Binh Gia district
Dinh Lap district
4. Phu Tho Province
Thanh Son district
Yen Lap district
5. Quang Ninh Province
Ba Che district
Binh Lieu district
6. Tuyen Quang Province
Chiem Hoa district
Na Hang district
7. Thai Nguyen Province
Vo Nhai district
8. Yen Bai Province
Luc Yen district
Mu Cang Chai district
Tram Tau district
9. Dak Lak Province
Dak Nong district
Krong No districtKrong Bong district
Lak district
Buon Don district
M’Drak district
Ea Sup district
Dak Song districtWT/ACC/VNM/13/Add.2
Page 57
10. Gia Lai Province
Duc Co district
K Bang district
Krong Pa district
Kon Chro districtMang Yang district
Ia Grai district
Chu Prong district
Chu Pah district.
11. Kon Tum Province
Dak To district
Dak Glei districtKon Plong district
Sa Thay district
§ak Ha district
Ngoc Hoi district
Kon Ray district.
12. Lam Dong Province
Lac Duong district
13. Kien Giang Province
An Bien district
Go Quao districtVinh Thuan district
14. Soc Trang Province
My Tu district
Thanh Tri district
Vinh Chau district
Cu Lao Dung district
15. Tra Vinh Province
Chau Thanh district
Tra Cu district
16. Binh Dinh Province
An Lao district
Vinh Thanh districtVan Canh districtWT/ACC/VNM/13/Add.2
Page 58
17. Khanh Hoa Province
Khanh Vinh district
Khanh Son district
18. Ninh Thuan Province
Ninh Son district
19. Ba Ria-Vung Tau Province
Tan Thanh district
20. Bac Lieu Province
Hong Dan district
21. Binh Phuoc Province
Bu Dang district
Loc Ninh district
22. Ca Mau Province
U Minh district
23. Thanh Hoa Province
Quan Hoa district
Ba Thuoc districtLang Chanh district
Thuong Xuan district
Quan Son district
Muong Lat district
Nhu Xuan districtNgoc Lac district
Cam Thuy district
Nhu Thanh district
24. Nghe An Province
Ky Son district
Tuong Duong district
Con Cuong district
Que Phong district
Quy Hop district
Quy Chau district
25. Quang Binh Province
Minh Hoa district
Tuyen Hoa districtWT/ACC/VNM/13/Add.2
Page 59
26. Quang Tri Province
Huong Hoa district
27. Thua Thien – Hue Province
A Luoi district
28. Quang Nam Province
Hien district
Giang district
Phuoc Son district
Tra My district
Hiep Duc district
Tien Phuoc district
Nui Thanh district
29. Quang Ngai Province
Ba To district
Tra Bong district
Son Tay district
Son Ha districtMinh Long district
Binh Son district
30. Phu Yen Province
Son Hoa district
Song HinhDong XuanWT/ACC/VNM/13/Add.2
Page 60
ANNEX IV
LIST OF SPECIALLY ENCOURAGED INVESTMENT PROJECTS
(issued together with Decree No. 24/2000/ND-CP dated 31 July 2000)
- Producing, processing for export at least eighty (80) per cent of products;
- Processing agricultural, forestry (except for wood) and aquaculture products from domestic
material sources for export of at least fifty (50) per cent of products;
- Producing various kinds of new strains with high quality and high economic efficiency;
- Cultivation of agricultural, forestry and aquaculture products;
- Manufacturing new materials and precious and rare materials; applying new bio-technology
and new technology for manufacturing communi cations and telecommunications equipment;
- High-tech industry;
- Investment in research and development;
- Producing equipment for waste treatment;
- Producing materials for antibiotic drugs;
- Treatment of pollution and protection of environment; treatment of waste;
- Investment under BOT, BTO and BT contracts.WT/ACC/VNM/13/Add.2
Page 61
ANNEX V
LIST OF ENCOURAGED INVESTMENT PROJECTS
(issued together with Decree No. 24/2000/ND-CP dated 31 July 2000)
- Producing, processing for export at le ast fifty (50) per cent of products;
- Producing, processing for export at least thirty (30) per cent of products and using many
domestic raw materials and materials (with a value of at least thirty (30) per cent of total
production costs);
- Intensively using labour and effectively utilizing natural resources available in Viet Nam;
- Processing agricultural, forestry (except for wood) and aquaculture products;
- Preserving foodstuffs; post-harvest preservation of agricultural products;
- Exploration, mining and down-str eam processing of minerals;
- Development of petro-chemical industry; constr uction and operation of oil and gas pipelines,
oil storage and ports;
- Manufacturing of equipment and component packs for oil and gas exploitation, mining, and
energy fields; manufacturing of large-size lifting equipment;
- Production of high-quality steel, alloy, non-ferrous metal, and special metal, steel billet and
sponge iron used in industry;
- Manufacturing machine tools for metal processing, metallurgy equipment;
- Manufacturing precision mechanical equipment, equipment for safety examination and
control; manufacturing jig and dies for metal and non-metal products;
- Manufacturing high and medium voltage electric devices;
- Manufacturing diesel engines with advanced techniques and technology; manufacturing
dynamic and hydraulic machinery, parts and compressing machines;
- Manufacturing automobile and motorcycle parts; manufacturing and assembly of equipment,
vehicles and machinery for construction; technical equipment for transportation;
- Building ships; manufacturing equipment and parts for transportation ships and fishing ships;
- Manufacturing communications and telecommunications equipment;
- Manufacturing electronic and informatics equipment and components;
- Manufacturing agricultural equipment, parts and machines, irrigation equipment;
- Producing various types of materials for pesticides;
- Producing basic chemicals of various kinds, purified chemicals and dyes; various kinds of
specialized chemicals;WT/ACC/VNM/13/Add.2
Page 62
- Producing materials for cleansing chemicals and additives for chemical industry;
- Producing special cement, composite materials, and sound, electricity and heat insulating
materials, and wood-substitute synthetic materials, fire-proof materials, construction plastic
and fibreglass;
- Manufacturing light construction materials;
- Producing paper pulp;
- Producing silk and fibres of various kinds; special fabric for industry;
- Producing high-quality raw materials for manufacturing footwear and garments for export;
- Producing high-quality packages for exports;
- Producing medical equipment for analytical and extractive technologies in medical sector;
- Producing medicine materials; producing medi cines with international GMP standard;
- Upgrading and developing energy sources;
- Public passenger transportation;
- Construction and upgrading of bridges, roads, airports, ports, railway stations, bus stations
and railways;
- Construction of water plants and water supply and drainage systems;
- Construction and operation of infrastructure faci lities of industrial zones, export processing
zones and high-tech zones.WT/ACC/VNM/13/Add.2
Page 63
ANNEX  VI
LIST OF REGIONS IN WHICH INVESTMENT IS ENCOURAGED
(issued together with Decree No. 24/2000/ND-CP dated 31 July 2000
No. Province/CitySection A
Areas with specially difficult socio-
economic conditionsSection B
Areas with difficult socio-economic
conditions
1. Ha Giang All districts and towns
2. Cao Bang All districts and towns
3. Lai Chau All districts and towns
4. Lao Cai All districts and towns
5. Son La All districts and towns
6. Bac Kan All districts and towns
7. Tuyen Quang All districts and towns
8. Lang Son All districts and towns
9. Yen Bai All districts and towns
10. Thai Nguyen All districts and towns and Thai
Nguyen City
11. Bac Giang All districts and towns
12. Vinh Phuc Lap Thach, Tam Duong and Binh
Xuyen DistrictsDistricts not in Section A
13. Phu Tho All districts and towns and Viet Tri
City
14. Hoa Binh All districts and towns
15. Bac Ninh Que Vo, Yen Phong, Gia Binh, Luong
Tai and Thuan Thanh Districts
16. Hanoi Soc Son District
17. Ha Tay Ba Vi, My Duc, Phuc Tho, Quoc Oai,
Thach That and Ung Hoa Districts
18. Quang Ninh Ba Che, Binh Lieu, Quang Ha, Hoanh
Bo, Tien Yen and Dong Trieu
Districts and Mong Cai TownYen Hung District and Cam Pha and
Uong Bi Towns
19. Hai Phong Vinh Bao and Tien Lang Districts
20. Hai Duong Chi Linh District All districts not in Section A
21. Hung Yen All districts and towns
22. Thai Binh All districts and towns
23. Ha Nam All districts and towns
24. Nam Dinh All districts and Nam Dinh City
25. Ninh Binh Nho Quan, Yen Mo and Gia Vien
DistrictsTam Diep Town and districts not in
Section A
26. Thanh Hoa Lang Chanh, Thuong Xuan, Quan
Hoa, Ba Thuoc, Ngoc Lac, Nhu Xuan,
Cam Thuy, Thach Thanh, Quan Son
and Muong Lat DistrictsDistricts not in Section A
27. Nghe An Ky Son, Tuong Duong, Con Cuong,
Quy Chau, Que Phong, Quy Hop,Nghia Dan, Anh Son, Tan Ky, ThanhChuong and Do Luong DistrictsCua Lo Town and other districts not in
Section A
28. Ha Tinh All districts Ha Tinh Town
29. Quang Binh All districts Dong Hoi Town
30. Quang Tri Quang Tri Town and All districts Dong Ha Town
31. Thua Thien Hue All districts Hue City
32. Da Nang Hoa Vang, Thanh Khe, Ngu Hanh SonWT/ACC/VNM/13/Add.2
Page 64
No. Province/CitySection A
Areas with specially difficult socio-
economic conditionsSection B
Areas with difficult socio-economic
conditions
and Lien Chieu Districts
33. Quang Nam All districts and Hoi An Town Tam ky Town
34. Quang Ngai All districts Quang Ngai Town
35 Binh Dinh All districts Quy Nhon Town
36. Phu Yen All districts Tuy Hoa Town
37. Khanh Hoa Khanh Son and Khanh Vinh Districts District not in Section A
38. Binh Thuan All districts Phan Thiet Town
39. Ninh Thuan All districts Phan Rang Town
40. Kon Tun All districts and towns
41. Gia Lai All districts and towns
42. Dak Lak All districts and Buon Ma Thuot City
43. Lam Dong All districts and towns and Da Lat
City
44. Dong Nai Dinh Quan, Tan Phu and Xuan Loc
Districts
45. Binh Phuoc All districts and towns
46. Binh Duong Ben Cat, Phu Giao, Tan Uyen and
Dau Tien districts
47. Tay Ninh All districts
48. Ho Chi Minh City Can Gio and Cu Chi Districts
49. Ba Ria - Vung
TauLong Dat and Xuyen Moc Districts
50. Long An All districts Tan An Town
51. Dong Thap All districts and towns
52. Tien Giang All districts and towns My Tho City
53. Ben Tre All districts and towns
54. Vinh Long All districts and towns
55. Tra Vinh All districts and towns
56. An Giang All districts and Long Xuyen City
57. Can Tho All districts and towns Can Tho City
58. Soc Trang All districts and towns
59. Bac Lieu All districts and towns
60. Ca Mau All districts and towns
61. Kien Giang All districts and towns
__________