RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/ACC/VNM/32 
28 April 2004 
 (04-1886) 
Working Party on the 
Accession of Viet Nam Original:   English 
 
  
ACCESSION OF VIET NAM 
 
Additional Questions and Replies
 
  
 The following additional questions and replies are being circulated at the request of the 
Delegation of the Socialist Republic of Viet Nam. 
  
_______________ 
  WT/ACC/VNM/32 
 Page i 
 
 
TABLE OF CONTENTS 
 
 
II. ECONOMIC POLICIES..........................................................................................................1  
- Investment Regime.............................................................................................................. ......2  
- State Ownership and Equitization ..........................................................................................6  
- Pricing Policies ............................................................................................................... ...........8  
- Competition Policy............................................................................................................. .......9  
III. FRAMEWORK FOR MAKING AN D ENFORCING POLICIES ....................................10  
IV. POLICIES AFFECTING TRADE IN GOODS ...................................................................15  
- Trading Rights ................................................................................................................. .......15  
A. IMPORT REGULATION......................................................................................................19  
- Customs Tariff ................................................................................................................. .......19  
- Other duties and charges levied on imports but not on domestic production...................22  
- Tariff rate quotas, tariff exemptions.....................................................................................23  
- Fees and charges for services rendered.................................................................................25  
- Quantitative import restrictions, includi ng prohibitions, quotas and licensing 
systems ........................................................................................................................ .............26  
- Import licensing ............................................................................................................... .......32  
- Application of internal taxes on imports...............................................................................33  
- Customs valuation.............................................................................................................. .....35  
- Rules of Origin ................................................................................................................ ........39  
- Preshipment Inspection......................................................................................................... .41 
- Anti-dumping, countervailing duties, safeguard regimes ...................................................41  
B. EXPORT REGULATIONS ...................................................................................................42  
- Export rest rictions ............................................................................................................ ......42  
- Export subsidies ............................................................................................................... .......43  
C. INTERNAL POLICIES A FFECTING FOREIGN TRADE IN GOODS .........................44  
- Industrial policy, including subsidies....................................................................................44  
- Technical barriers to trade, sanita ry and phytosanitary measures ...................................44  
- Sanitary and Phytosanitary Measures ..................................................................................52  
- Trade-related investment measures ......................................................................................54  
- State trading entities......................................................................................................... ......56  
- Government procurement......................................................................................................56  
- Transit........................................................................................................................ ..............57  
- Agricultural policies.......................................................................................................... ......57  
- Trade in ci vil aircraft........................................................................................................ ......58  
V. TRADE-RELATED INTELLECTUAL  PROPERTY REGIME.......................................58  WT/ACC/VNM/32 
Page ii  
 
-
 General........................................................................................................................ .............58  
- Trademarks, including  service marks...................................................................................65  
- Geographical indications, including appellations of origin.................................................66  
- Requirements on undisclosed information, including trade secrets and test data............69  
ANNEX 1 ........................................................................................................................ ......................70  
ANNEX 2 ........................................................................................................................ ......................74   WT/ACC/VNM/32 
 Page 1 
 
 
 II. ECONOMIC POLICIES 
Question 1 Paragraph 19 of WT/ACC/SPEC/VNM/4 states that "All remaining restrictions on current 
account relating to import and export payments  and international remittances would be phased 
out during 2003," and that "Viet Nam had removed almost all restrictions on current 
international transfers and payments relating to current transactions.   
Has this been accomplished? Do restrictions on capital investments abroad by Vietnamese companies and requirements on 
the payment of loans contracted abroad still exist?  
Answer:
 
The International Monetary Fund (IMF) and the State Bank of Viet Nam are conducting a technical 
assessment on Viet Nam's fulfilment, de jure and de  facto, of the obligation under Article VIII, IMF 
Charter on current account and international remittan ces.  We hope that this process will conclude so 
that the IMF can confirm Viet Nam's fulfilment of the obligation under Article VIII, IMF Charter.   
With respect to investment abroad, according to the Decree No. 22/1999/ND-CP on Vietnamese 
enterprises' investment abroad, Vi etnamese enterprises must: (i) obtain an overseas investment licence 
issued by the Ministry of Planning and Investmen t; (ii) open a foreign account in an authorized bank 
where all remittances to and from Viet Nam related to their overseas investment must be made through; and (iii) register the opening of th eir foreign account and the progress of transferring 
investment capital abroad with a bank branch in  the province or city where their head offices are 
located.   
At present, Viet Nam does not apply any restric tion in terms of foreign loan payment by local 
enterprises.  After signing a loan agreement, enterp rises must register such lo an with the State Bank 
for statistical purposes and for the management of the total amount of foreign commercial loans by 
enterprises.  After registering, t hose enterprises will be granted a certificate.  When making a foreign 
loan payment, enterprises are only required to show  this certificate to a transferring bank.  This 
requirement is only of procedural nature. 
Question 2 
Viet Nam states that Article XII of the GATS allo ws such restrictions if Viet Nam were facing 
difficulties in its international balance of payments.  Has the IMF indicated that such 
restrictions are justified by Viet Nam's current balance of payments? 
Answer:
 
Viet Nam had in the past applied some restrictions  in transferring investment capital abroad and in 
foreign loan payment due to the Asian financial cr isis.  At present, these restrictions are no longer 
applied. 
Question 3 
With regard to paragraph 22, please explain what "guaranteeing the balancing of foreign 
currency needs for foreign inv estors" means in practice. WT/ACC/VNM/32 
Page 2  
 
 Answer:
 
"Guaranteeing the balancing of foreign curre ncy needs for foreign investors" means:  
Foreign invested enterprises, foreign parties to business co-operation contracts having demand on 
foreign exchange for current transactions and other permitted transactions can buy foreign currency at 
the banks which are authorized to deal with foreign exchange; 
However, when these banks cannot meet the demand  on foreign currency of specifically important 
investment projects under government's program, infr astructure projects and other important projects, 
the Government of Viet Nam will ensure that the su fficient amount of foreign currency be sold to the 
foreign invested enterprises and par ties to business co-operation contracts. 
Detailed provisions are specified in the Decree No. 24/2000/ND-CP dated 31 July 2000 regulating in 
details the implementation of the Law on Fo reign Investment in Viet Nam and Decree 
No. 27/2003/ND-CP dated 19 March 20 03 of the Government on the amendment of and addition to a 
number of Articles of the Decree No. 24/2000/ND-CP. 
- Investment Regime 
Question 4 
In paragraph 24, what is meant when it says that "A minimum legal capital requirement for the 
establishment of enterprises had in principle been abolished." 
Answer : 
The Law on Companies (1991) regulated minimum legal capital required for each business sector.  
The Law on Enterprises (which replaced the Law on Companies), coming into effect since 2000, only 
regulates minimum legal capital for several financial services.  Therefore, most of the sectors are not 
subject to this requirement. 
Question 5 
Paragraph 26: We note that in many sectors, ther e are no ceilings on the capital held by foreign 
investors.  We would like to know whether Viet  Nam has the intention to further broaden the 
sectors covered by this policy, namely with re gard to such sectors as distribution services, 
transport services and telecommunication services. 
Answer : 
Viet Nam is willing to discuss with the interested Members of the Working Party with respect to the 
capital restrictions in the services sectors in the context of bilateral market access negotiations. 
Question 6 
Paragraph 28: Could the remaining investme nt-related fees and charges be described? 
Answer : 
Like Vietnamese organisations and individuals, fo reign invested enterprises are required to pay the 
fees and charges as regulated by laws including but not limited to:  WT/ACC/VNM/32 
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 − Fees and charges regulated by the Ordinance on Fees and Charges; and 
− Social insurance fee, medical in surance and other insurance fees. 
Question 7 
Paragraphs 29/31 of WT/ACC/VNM/4 (also quest ions 9/90 of WT/ACC/VNM/29): We welcome 
the commitment made by Viet Nam that the 80 per cent export ratio requirement would cease 
to be applied upon its accession.  However, we would like to point out that the export ratio 
requirement is imposing, even at the present time , real difficulties on the operations of foreign 
investment companies, and is negatively aff ecting their willingness to commit to further new 
investment.   
In light of this, we would encourage Viet Nam to remove the export ratio requirement applying 
to foreign invested companies at the earliest possible opportunity. 
Answer : 
In our view, the 80 per cent export ratio require ment does not violate the TRIMs Agreement.  
However, in order to facilitate foreign invest ment, Viet Nam has committed to remove this 
requirement upon its accession to the WTO.  It is an effort of Viet Nam towards improving investment environment.  Viet Nam aims to facilita te the activities of foreign investors and is willing 
to discuss this issue outside the WTO framework. 
Question 8 Regarding investment procedures and re quirements in paragraphs 33 to 37 of 
WT/ACC/SPEC/VNM/4, Viet Nam provides resp onses to a series of concerns raised by 
Members (paragraph 32).  In several areas, Vi et Nam's responses indicate that changes to 
requirements are under consideration.  We woul d appreciate information from Viet Nam on 
progress in considering these issues which could be incorporated in WT/ACC/SPEC/VNM/4. 
Answer
: 
With a view to improving the investment climate,  Viet Nam has been implementing various measures 
to remove and/or relax the restrictions a nd requirements on foreign investment, such as: 
The Government has promulgated the Decree No. 27/2003/ND-CP on amendment of and addition to a 
number of Articles of the Decree No. 24/2000/ND-CP , which:  (i) expands the scope of activities 
where foreign investment is encouraged; (ii) narro ws the scope of conditiona l investment projects; 
(iii) eliminates the restrictions in terms of labour  recruitment and capital contribution in form of 
technology transfer; (iv) expands the registration regime for obtaining investment licence. 
The Ministry of Planning and Investment has submitte d to the Prime Minister a proposal of expanding 
the authorizing regime which allows the provinc ial People's Committees and the management boards 
of industrial zones to grant investment licenses. 
Question 9 
Paragraph 34: With regard to the duration of land  lease, we note Viet Nam's response that in 
maximum a seventy-year duration is possible in some  cases.  We would like to know the current 
situation of the amendments to the Land Law wh ich was to have been decided by the end of 
2003.  In order to ensure a stabilized management of foreign invested companies, we ask 
Viet Nam to further extend the duration limit from the current level of fifty years. WT/ACC/VNM/32 
Page 4  
 
 Answer
: 
The regulations on the duration of land lease applicable to foreign invested enterprises are not less 
favourable than those that are applicable to domestic  enterprises.  In addition, these regulations do not 
unnecessarily restrict the operation of foreign invested  enterprises since the duration of land lease can 
be adjusted flexibly in accordan ce with the business requirement of enterprises.  Therefore, at present 
Viet Nam does not intend to revise the above-mentioned regulations. 
The amended Land Law enacted by th e National Assembly in 2003 has regulated land rental and the 
principles for determining land rent al in accordance with market pr ice; the Law also provides in 
details the responsibilities of state agencies in la nd planning and managemen t; improves the land lease 
procedure and facilitates enterprises in assigning and cont ributing capital in the form of land use right.   
Question 10 Paragraphs 32/36:  We highly appreciate the Decree of 6 June, which is to establish a "one 
stop" agency for foreign investment.  In this regard, we would like to have some information on the specific mandate of the Department of Fo reign Investment.  We would hope that the 
Department is to co-ordinate all the relevan t authorities' views in order to facilitate 
administrative procedures in relation to FDI. 
Answer
: 
According to the Decree No. 61/2003/ND-CP on f unctions, tasks, authority and organisational 
structure of the Ministry of Planning and Inv estment, the Foreign Investment Agency has been 
established for the purpose of uniform management of foreign direct investment in Viet Nam as well 
as Vietnamese enterprises' invest ments abroad.  The Foreign Investment Agency is responsible for 
assisting the Minister of Planning and Investment to implement the following tasks: 
− Formulating plans, regulations and policies with respect to foreign investment; 
− Promoting foreign investment into Viet Nam; 
− Receiving investment applications and granting investment licenses for foreign investors 
in Viet Nam and Vietnamese enterprises investing abroad; and 
− Managing foreign investment projects and supp orting the operation of foreign invested 
enterprises in Viet Nam. 
Question 11 
Paragraph 36:  With regard to those sectors subject  to investment licenses, such as electricity 
supply, finance, telecommunications, education,  advertisement and distribution, we would like 
to request Viet Nam to further simplify the re levant procedures and document requirements in 
order to realize speedy foreign investment. 
Answer : 
Viet Nam takes note of this comment.  Viet Nam has made considerable efforts to improve the 
procedures for promoting foreign investment.  Mo st recently, the Foreign Investment Agency has 
been established for the purpose of  uniform management of foreign direct investment in Viet Nam 
and Vietnamese enterprises' investment abroad.    WT/ACC/VNM/32 
 Page 5 
 
 
 Question 12 
Please indicate the impact on investment of th e Decree on amendment of and supplement to the 
A, B, C lists in the Annex of Decree No. 51/19 99/ND-CP of 8 July 1999 on regulations detailing 
the Law on Domestic Investment Promotion (revised), No. 35/2002/ND-CP. 
Answer : 
The amendment of the Lists A, B, C promulgated together with the Decree No. 51/1999/ND-CP has 
made positive impacts by making investments in the sectors and areas where investment is 
encouraged in accordance with the socio-econom ic development program of Viet Nam more 
attractive. 
Question 13 In WT/ACC/VNM/29 the response to question 5 states "On 15 April 2003, the Government of 
Viet Nam issued Decree No. 38/2003/ND-CP allowing  the transformation of FDI enterprises into 
stock-holding companies.  Viet Nam is also considering a uniformly applied enterprise law governing both domestic and foreign investment s with a view to creating a common legal 
framework regulating the establishment, organization and operation of domestic and foreign 
invested enterprises."  Please include this info rmation in the draft WP report.  Please report 
more about how and when a common legal framework will be developed. 
Answer
: 
In its 4th session in November 2003, the National A ssembly of Viet Nam has passed the Legislative 
Program for 2004, which tasked the drafting of a uniform investment law governing both foreign and 
domestic investments (the Uniform Investment Law).  Together with the drafting of this Law, the 
Government has authorized the Ministry of Planning  and Investment, the Ministry of Justice and other 
relevant Ministries and agencies to consider drafting a uniform Enterprise Law which would govern  enterprises under all economic sectors or forms of  ownership (the Uniform Enterprise Law).   
Government of Viet Namal agencies are now draf ting the above-mentioned laws with the following 
directions:  
− the Uniform Investment Law would regulate i nvestment guarantee measures, sectors and 
areas where investment is encouraged, the i nvestment incentives, etc. that are commonly 
applied to both domestic and foreign investors; and 
− the Uniform Enterprise Law would regulate the establishment forms and procedures, 
organisation and management, dissolution of ente rprises, etc. to be applied to enterprises 
of all economic sectors (i.e. forms of ownership). 
The drafts of the above laws would be submitte d to the National Assembly for comments in its 
session at the end of 2004.  The preparation of dr afting these laws has manifested the willingness of 
the Government of Viet Nam in pursuing the comp letion of legal framework of market economy in 
order to maximize the utilization of all resources  for the country's socio-economic development and 
accelerating the integration of Viet Nam in to regional and the world's economy.   WT/ACC/VNM/32 
Page 6  
 
 - State Ownership and Equitization 
Question 14 Please provide a table describing progress in privatization and equitization, laying out the 
numbers of firms slated for the process by majo r sector and/size of firm, and indicate progress 
over the last years of how many such transforma tions have been completed each year and in 
total. 
Answer
: 
Up to 31 December 2003, there have been 1,718 st ate-owned enterprises and parts of state-owned 
enterprises that have completed the equitization and ot her forms of diversification of ownership.  In 
2003 alone, 604 state-owned enterprises and units were  designated to change ow nership, of which 537 
enterprises were equitized, 67 were assigned, sold and contracted out. 
Question 15 
Paragraph 42 appears to indicate that notwiths tanding inclusion in Group I (enterprises in the 
public interest exempted from equitization), en terprises from this Group may be "equitized by 
approval of a Minister, Chairman of the People's Committee or the Prime Minister.   
Is that correct? 
What is the value of ten billion Dong (VND) in U.S. dollars (US$) or EURO (€)? 
Answer:  
The state-owned enterprises which are not subject to equitization according to Article I, Decree 
No. 56/CP dated 2 October 1996 include public-inter est enterprises.  Howeve r, these enterprises may 
still be equitized as decided by the Prime Minister, Minister of relevant Ministry or Chairman of 
People's Committees of cities or provinces. 
In the near future, the identification of "public -interest enterprises" would be changed to the 
identification of public goods and services which ca n be provided by any company through bidding, 
not by certain authorized companies.  The current public-interest enterprises will also be restructured 
(including through equitization). 
According to current exchange rate, VND 10 billi on are equivalent to a pproximately US$ 600,000 or 
€ 500,000.   
Question 16 
Paragraph 43: Why is it necessary that the Government retain control of equitized Group 2 
enterprises? 
Answer : 
The State retains controlling equity or 100 per cent ownership of the enterprises operating business in 
sectors relating to security or defence, sectors that  are vital to the economy, enterprises providing 
essential products to the society or involving in such activities which private sector is not able or not willing to engage in.  The State may also do so to  support the equitized enterprises and their workers 
in the early period of equitization.  WT/ACC/VNM/32 
 Page 7 
 
 
 An important policy adjustment would be made in  the near future towards narrowing the scope of 
activities and the forms of enterprises wher e the State retains controlling equity. 
Question 17 
Concerning Group 3 enterprises, why would pr ivate investors seek to purchase shares in 
enterprises that Viet Nam describes as "long- standing loss making enterprises?" (Note:  
Normally, private investors seek to make a prof it when they invest in firms.  End note) 
Answer : 
Group 3 includes the loss making enterprises as well as other enterprises.  Therefore, there are only a 
few long-standing loss making state-owned enterprises under this Group.  The reason why investors seek to buy shares of these enterprises is that such  enterprises may make losses since they have not 
fully exploited the potential resources such as land,  market, labour, management, etc. or they are seen 
as having good development prospect in the future (e .g., a project has been making losses in its early 
years of operation but it may still have positive prospects). 
Question 18 
Where would the enterprises listed in paragraph 44 be categorized in the Group 1-2-3 
framework?  Is foreign investment prohibited outside of these areas, i.e., is it forbidden to 
establish a wholly new enterprise in competition with the state owned firm being offered for 
privatization?  What is the difference between "privatization" and "equitization?"  
Answer
: 
Foreign investors are allowed to purchase shares of  enterprises under Groups 1 and 2.  According to 
the Decision No. 36/2003/QD-TTg dated 11 March 2003 of the Government, foreign investors are 
allowed to purchase no more than 30 per cent of a co mpany's registered capital.  Article 3 of this 
Decision provides that the Vietnamese enterprises al lowed to receive capital contribution from and to 
sell shares to foreign investors include: equitized  state-owned enterprises, joint stock companies, 
limited liability companies, partnerships operating in the sectors decided by the Prime Minister or announced by the Minister of Planning and Investment as authorized by the Prime Minister.  
Viet Nam does not prohibit foreign investors to  establish new foreign invested enterprise in 
competition with state-owned enterprises being equiti sed.  The differences between "equitization" and 
"privatization", in our view, include: 
Equitization Privatization 
-  is a solution for restructuring, upgrading 
and improving efficiency of a state-owned enterprise.  Contribution to the state budget is not the ultimate purpose. 
-  requires a diversity of ownership 
including ownership by the State and ownership by the employees. 
-  is implemented to maintain an 
enterprise's operation and facilitating its 
business after equitization. 
-  is implemented with consideration to 
the interests of employees after equitization. -  reduces expenses from and increases 
income of the state budget. 
-  shifts an enterprise's ownership to 
private. 
-  is implemented for profits and, as such, a 
privatized enterprise may be ceased its operation after being sold to another owner to earn a profit. 
-  may not appropriately take care of the 
interests of employees. 
 WT/ACC/VNM/32 
Page 8  
 
 Question 19 
Paragraphs 45-46: What is the benefit of part ial ownership of an "equitized" firm vis-a-vis 
conversion to an FDI firm?  How does this distin ction work in practice?  Can "equitized" firms 
engage in foreign trade more easily than FDI fi rms?  Is the two year, fifty percent exemption 
from corporate income tax the only benefit? 
Answer
: 
There is no benefit accorded to equitized firms over FDI firms.  Equitized firms may only have 
advantages vis-a-vis  FDI firms which are newly established if they already had markets, supply 
sources and experience.  With regards to tax incen tives, 100 per cent foreign owned firms are granted 
more incentives than equitized firms. 
- Pricing Policies Question 20 Paragraph 48: Has the Decree authorizing the es tablishment of maximum import prices been 
repealed?  If so, please cite the legal instru ment.  Please confirm that there are no such 
measures currently in effect.   
Answer
: 
Pursuant to the Ordinance on Price (No. 40/2002/PL-UBTVQH10 of the Standing Committee of the 
National Assembly dated 10 May 2002), ma ximum import prices were not applied. 
Question 21 
Paragraph 50: As indicated, the dual pricing mech anism applies only to electricity and domestic 
air fares, and the existing differences between prices charged to local and foreign customers 
would be phased out by 2005.  We have been given to understand that the government of 
Viet Nam has already abolished the dual pricing mechanism on domestic air fares with effect 
from the beginning of 2004.  It would be app reciated if Viet Nam would kindly confirm whether 
this information is correct or not. 
Answer : 
Viet Nam eliminated the dual pricing mechanism on domestic air fares as from 1 January 2004.  At 
present, dual prices are only applied to electricity .  Viet Nam will fully eliminate the dual pricing 
mechanism in 2005. 
Question 22 
Please cite the law that establishes the equalizati on of electricity and air fare prices between 
Vietnamese residents and foreigners.  Please indica te a date certain by when this practice of 
discrimination against foreigners in pricing decisions will be eliminated. 
Answer : 
Viet Nam will fully eliminate the dual pricing mech anism in 2005 as referred to in the Action Plan of 
dual pricing:  WT/ACC/VNM/32 
 Page 9 
 
 
 With respect to air fares: Viet Nam eliminated the dual prices on domestic air fares as from 
1 January 2004 according to the Decision No. 322 6/QD-CHK dated 26 November 2003 of Viet Nam's 
Civil Aviation Department on domestic air fares. 
Electricity: Viet Nam is planning to apply a common electricity price schedule in 2005 which will not 
discriminate between foreign invested enterprises and foreigners with Vietnamese enterprises and 
individuals. 
Question 23 
With regard to dual pricing, we appreciate the Vi etnamese initiative to phase out the price gap 
by 2005.  We would thus like to have information on  the current situation of this initiative.  In 
addition, we encourage Viet Nam to elimin ate all dual pricing prior to its accession. 
Answer : 
Viet Nam eliminated the dual pricing mechanism on domestic air fares as from 1 January 2004.  At 
present, dual prices are only applied to electricity .  Viet Nam will fully eliminate the dual pricing 
mechanism in 2005. 
Question 24 
Does the term "resident" apply to foreign owned firms established in Viet Nam, or are such 
firms considered "foreigners" for the pur poses of this pricing arrangement? 
Answer : 
Foreign owned firms established in Viet Nam are considered "foreigners" for the purpose of the dual 
pricing mechanism.  This distinction, however, becomes much less meaningful as the dual pricing 
mechanism has been abolished in most of sectors and will be fully abolished in 2005. 
- Competition Policy Question 25 Paragraph 54: Please clarify whether the new Competition Law, when enacted, will apply 
equally to State owned, privatized, equiti zed, foreign invested, and private firms. 
Answer
: 
The Competition Law is under drafting.  The latest ve rsion of the draft Law is available in the website 
of the Ministry of Trade (http://www.mot.gov.vn).  Viet Nam would notify to the Working Party the 
content of this Law after its enactment. 
Question 26 
Will wholly and partially state-owned firms be allowed to retain competitive privileges over 
firms organized under different forms of ownership? 
Answer : 
The Competition Law is under drafting.  The latest ve rsion of the draft Law is available in the website 
of the Ministry of Trade (http://www.mot.gov.vn).  Viet Nam would notify to the Working Party the WT/ACC/VNM/32 
Page 10  
 
 content of this Law after its enactment.  The list of Vietnamese enterprises which are accorded with 
certain privileges in the sense of Article XVII of the GATT was notified in the document WT/ACC/VNM/14/Add.1. 
III. FRAMEWORK FOR MAKING AND ENFORCING POLICIES 
Question 27 
WT/ACC/VNM/31 indicates that Ordinance on Most-Favoured-Nation and National Treatment 
in International Trade, No. 41/2002/PL-UBTV QH10 addresses the application of national 
treatment and MFN treatment.   
Please note this in the FRAMEWORK section and describe explicitly what is provided for in 
this legislation vis-a-vis  Articles I and III of the GATT and similar provisions in WTO 
Agreements. 
Paragraph 59 states that "Viet Nam's legislat ion neither provided for direct applicability of 
international treaties in the national legal system  nor did it ban the direct application of such 
treaties."  Please clarify explicitly whether or not this means that international Agreements and 
Treaties such as the Agreement Establishing th e WTO do not supersede domestic law, even 
after ratification. 
Answer
: 
The Ordinance on MFN and NT, which came into e ffect since 1 September 2002, provides general 
principles on non-discriminatory treatment in trade.   The Ordinance also stipulates certain MFN and 
NT exceptions strictly in ac cordance with WTO's rules. 
The legal framework on treaties of Viet Nam is be ing established to adapt to the new development 
requirement of Viet Nam, including international economic integration and the WTO accession.  In 
the legislation program of the National Assemb ly, the Law on Treaties is under drafting and is 
expected to be submitted to the National Assembly  for comments in its 6th session at the end of 2004. 
Viet Nam currently applies the Ordinance on C onclusion and Implementation of Treaties, which 
mainly addresses the classification of treaties, pro cess and authority to propose, negotiate, conclude 
and implement treaties.  This Ordinance does not stipulate whether a treaty is directly applicable in 
the legal system of Viet Nam. 
Nevertheless, almost all of the legal documents of  Viet Nam consist of such common provision as:  
"in case that treaties to which Viet Nam is a party s tipulate otherwise, the provisions of those treaties 
shall prevail".  Therefore, it could be understood that when the same issue is addressed by both 
Vietnamese legal documents and a treaty (e.g. the Protocol on accession of Viet Nam to the WTO 
once ratified by the Vietnamese National Assembly) the treaty's provision shall prevail.  It should be 
noted, however, that this principle would only be applied when stipulated explicitly in Vietnamese 
legal documents.  At present, this principle is not provided for in all legal documents of Viet Nam. 
In order to avoid the difficulties in implementing treaties and to strictly implement international 
commitments made by Viet Nam, the current Ordinance on Conclusion and Implementation of 
Treaties requires the Vietnamese agencies, when proposing, negotiating, concluding and 
implementing treaties, to review domestic laws  and to propose the amendment of, addition to, 
revocation or issuance of legal documents in order to implement such treaties.  WT/ACC/VNM/32 
 Page 11 
 
 
 Due to the above situation, Viet Nam has been pu tting every effort to review legal documents based 
on the WTO rules so as to set up a legislation pr ogram for implementing strictly its schedule of 
commitments upon accession to the WTO.  At the same time, Viet Nam expects that the promulgation of a new Law on Treaties will clarify more clearly the hierarchical order of treaties in the legal system 
of Viet Nam. 
Question 28 Paragraph 63:  Provision of an opportunity for transparent review and comment on the rulings 
and regulations of Government Agencies is required under some WTO Agreements.  
Generalized to other sectors, particularly as they relate to international trade and customs, 
services, and intellectual property, would be an  immense step forward for Viet Nam.  The 
effectiveness and integrity of such a facility should be protected. 
Please provide a copy of the amended law. The requirement that "Government agencies involved in the drafting of legal documents... [are] 
required to offer individuals and organizations  an opportunity to comment on the legal 
document," does not specify how this is to be done, and therefore is subject to being 
undermined.  Viet Nam should explicitly require pub lication in a single periodical or internet 
website with clear guidance on how comments should  be collected for review.  There should be a 
reasonable time provided for such comments, e.g., at least 30 days, prior to implementation of 
the regulation or other normative act.  What a re Viet Nam's plans for improving the clarity and 
predictability of this facility? 
What progress has Viet Nam made in the considerat ion of proposals to move from a "positive" 
to a "negative" list approach in its legislation,  whereby activities would be considered permitted 
unless expressly prohibited by law? 
Answer
: 
The English version of the Law on Enactment of Le gal Documents has already been submitted to the 
Working Party prior to the 7th session in December 2003. 
Article 3 of the amended Law on Enactment of Legal Documents provides that: 
− During the process of drafting legal documents, depending on the nature and contents of a 
bill or draft, the agency and organization concerned shall facilitate other agencies, 
organizations and individuals to participate by providing their opinions, and shall gather 
opinions from those directly affected by the legal documents within an appropriate scope and in an appropriate form; and 
− Comments contributed to a bill or draft of a legal normative document must be taken into 
consideration with a view to accepting re visions to the bill or draft document. 
More specifically, the amended Law stipulates r esponsibilities of each agency and organisation in 
gathering comments on the draft of legal documents, in particular, in gathering comments from those 
directly affected by such documents (Articles 26.4 and 61.4).  With regards to drafts of Resolution 
and Decree of the Government, Decision and Instru ction of the Prime Minister, Articles 62.2 and 65.4 
require the Office of the Government to publish su ch drafts on the mass media and the internet for 
comments by agencies, organisations and individuals.  The opinions seeking process, in principle, 
should be arranged flexibly depending  on the nature, contents and the scope of effect of the document 
concerned.  The amended Law, therefore, cannot stipulate a common and "fixed" provision on this 
issue.   WT/ACC/VNM/32 
Page 12  
 
 Viet Nam has been conducting various  kinds of activities and measures in order to implement actively 
the amended Law, such as: 
− Preparing a draft of a Decree regulating in details the implementa tion of the amended 
Law on Enactment of Legal Documents, which consists of a Charter on seeking opinions.  
The draft will clarify responsibility, form a nd method to seek opinions on drafts of legal 
documents.  For example, provisions on prep aring the issues subject  to comments; the 
address to send comments; an appropriate period that agency must reserve (i.e., 20 days) for agencies, organizations and individuals directly affected by the legal normative 
document in question to contribute their opinions; the investigation of such opinions to revise the draft, etc.  The draft Decree regulates that the lists of opinions gathered shall be attached to the bills or draft documents  upon submission to competent authorities for 
consideration and approval; 
− The opinion-seeking process for drafts of legal documents issued by local authorities is 
considered for stipulating explicit provisions in the bill of the Law on Enactment of Legal 
Documents by People's Councils, People's Committees (which are expected to be submitted to the National Assembly in May 2004). 
The implementation of the amende d Law are also made through the proposals carried out by various 
agencies: 
− Proposal for gathering public opinions on law and ordinance projects prepared by the 
Office of the National Assembly; 
− Proposal of the Government on improving qua lity of law and ordinance project submitted 
by the Government (prepared by the Offi ce of the Government) to the National 
Assembly, the Standing Committee of the Na tional Assembly, whereby the following 
Regulations are expected to be issued: Regula tion on attracting experts and scientists in 
the process of drafting and evaluating draf ts of legal documents and Regulation on 
gathering opinions from those directly affected by legal documents; and 
− Program on upgrading the preparation, drafti ng, improving quality of legal documents 
conducted by the Ministry of Justice acco rding to the Decision No. 909/QD-TTg dated 
14 August 2003 of the Prime Minister.   
Many of the legal documents of Viet Nam, incl uding the Constitution and the Enterprise Law already 
have negative list approach.  For example, Article  16 of the Constitution regulates: " ...Organisations, 
individuals of all economic sectors are allowed to  conduct production and business in the sectors not 
prohibited by laws, to have long-term developm ent and equal co-operati on..."; Article 6 of the 
Enterprise Law regulates that enterprises are allowe d to register and conduct business at their own 
discretion in sectors  that are not subject to prohibition and conditional list.  The negative list 
approach, however, is still new in Viet Nam and its pros and cons will certainly be examined and 
evaluated during the legal reform process of Viet Nam. 
Question 29 
With regard to the amended Law on Enactment of Legal Documents, please provide detailed 
information on the procedure for seeking public comments.  We are particularly interested in 
how targets are designated and how th e comments collected are announced. 
We appreciate Viet Nam's response to Q18 of WT/ACC/VNM/29.  We hope that the Vietnamese 
authorities will be quick and efficient in ensuring the consistency of legislation, in order to prevent any subjective interpretation, and in executing civil judgements.  WT/ACC/VNM/32 
 Page 13 
 
 
 Answer : 
The English version of the Law on Enactment of Le gal Documents, which was amended in order to 
improve the transparency of the promulgation pro cess of legal documents, has already been submitted 
to the Secretariat for transmittance to the Worki ng Party prior to the 7th session in December 2003. 
Article 3 of the amended Law on Enactment of Legal Documents provides that: 
− During the process of drafting legal documents, depending on the nature and contents of a 
bill or draft, the agency and organization concerned shall facilitate other agencies, 
organizations and individuals to participate by providing their opinions, and shall gather 
opinions from those directly affected by the legal documents within an appropriate scope and appropriate form; and 
− Opinions contributed to a bill or draft of a legal normative document must be investigated 
in order to accept revision of the bill or draft document. 
More specifically, the amended Law stipulates r esponsibilities of each agency and organisation in 
gathering opinions on the draft of legal documents, in particular, in gathering opinions from those 
directly affected by such documents (Articles 26.4 and 61.4).  With regards to drafts of Resolution 
and Decree of the Government, Decision and Instru ction of the Prime Minister, Articles 62.2 and 65.4 
require the Office of the Government to publish su ch drafts on mass media and internet for comments 
by agencies, organisations and individuals.  The opi nions gathering, in principle, should be arranged 
flexibly depending on the nature, contents and the scope of effect of the document concerned.  The 
amended Law, therefore, cannot stipulate a common and "fixed" provision on this issue.   
Viet Nam has been conducting various  kinds of activities and measures in order to implement actively 
the amended Law, such as: 
− Preparing a draft of a Decree regulating in details the implementa tion of the amended 
Law on Enactment of Legal Documents, whic h consists of a Charter on gathering 
opinions.  The draft will clarify responsibilit y, form and method to gather opinions on 
drafts of legal documents.  For example, provisions on preparing the issues subject to comments; the address to send comments; an a ppropriate period that gathering agency 
must reserve (20 days) for agencies, organizations and individuals directly affected by the legal normative document in question to cont ribute their opinions; the investigation of 
such opinions to revise the draft, etc.  The dr aft Decree regulates that the lists of opinions 
gathered shall be attached to the bill or  draft documents upon submission to competent 
authorities for consideration and approval; and 
− The gathering opinions on drafts of legal documents issued by local authorities is 
considered for stipulating explicit provisions  in the draft of the Law on Enactment of 
Legal Documents by People's Councils, People' s Committees (which are expected to be 
submitted to the National Assembly in May 2004). 
The implementation of the amende d Law are also made through the proposals carried out by various 
agencies: 
− Proposal for gathering public opinions on bills of law and ordinance prepared by the 
Office of the National Assembly; 
− Proposal of the Government on improving qualit y of bills of law and ordinance submitted 
by the Government (prepared by the Offi ce of the Government) to the National 
Assembly, the Standing Committee of the Na tional Assembly, whereby the following 
Regulations are expected to be issued: Regula tion on attracting experts and scientists in WT/ACC/VNM/32 
Page 14  
 
 the process of drafting and evaluating draf ts of legal documents and Regulation on 
gathering opinions from those directly affected by legal documents; and 
− Program on upgrading the preparation, drafti ng, improving quality of legal documents 
conducted by the Ministry of Justice acco rding to the Decision No. 909/QD-TTg dated 
14 August 2003 of the Prime Minister.   
Question 30 Paragraph 66: Please elaborate in this paragr aph on the relevant procedures for appeals of 
administrative decisions in the areas covered by  WTO provisions, with particular attention to 
customs issues, licensing requirements, fees, t axes, and other requirements on imported goods 
and services, and intellectual property issues. 
Answer
: 
At present, pursuant to the Law on Complaint and Denunciation, individuals and organizations (i.e., 
economic organizations) are entitled to lodge petitions and appeal administrative decisions or actions 
to courts if they consider such decisions or acti ons illegal.  The procedures for lodging petitions or 
appealing cases to courts are stipulated as follows:  
The complainant lodging the first petition sha ll send the petition to the agency issuing the 
administrative decision.  The period available for lodging the petition is 90 days from the date of 
receiving the administrative decision (Article 30 of the Law on Complaint and Denunciation).  The 
period for settlement of the first petition or denunciation sh all be 30 days from the date of receiving 
the petition or denunciation; in complicated cases, th e settlement period may be extended but shall not 
be longer than 45 days; in remote and distant ar eas, the above period shall be 45 days and 60 days 
respectively. 
Within 30 days from the date of terminating the set tlement period but the petition is not settled, or 
from the date of receiving the decision on settlement of the first petition, the complainant is entitled to 
either continue lodging the appeal to a superior  administrative body or to bring the case to an 
administrative court.  Issues relating to customs,  taxes, licensing fees and charges are all under the 
purview of administrative courts (Article 11 of  the Ordinance on Procedures of Settlement of 
Administrative Cases).   
Question 31 
Paragraph 71:  The assurance in this paragraph does not go far enough.  We seek clarification 
of the scope of sub-central authority in matt ers covered by WTO Agreements and Viet Nam's 
WTO obligation and more precision on what Viet  Nam is willing to do when apprised of a 
situation where WTO obligations are being violated. 
Answer : 
Regarding authority of local governmental agenci es concerning matters covered by WTO agreements 
and Viet Nam's obligations under the WTO, the Law on Organization of People's Councils and 
People's Committees dated 26 November 2003 clearly regulates the tasks and authority of People's 
Committees at different levels in trade, services and tourism, i.e.:  
Provincial People's Committees ha ve the following functions:  
− Establishing plan to develop trade, services  and tourist networks ; participating in 
international cooperation in trade, servi ces and tourism as stipulated by laws;   WT/ACC/VNM/32 
 Page 15 
 
 
 − Issuing and revoking licenses of tourist business, t ourist areas, tourist spots, hotels, local 
travel agencies within the province as regulated by laws; 
− Organizing the export-import management as regulated by laws; instructing market 
supervision activities; and 
− Organizing the inspection and supervision of the observation to laws and regulations on 
trade, services and tourism activities.   
The decentralization of management to People's Comm ittees at different levels is also stipulated in 
other specific laws.  As such, People's Committees at  different levels only implement administrative 
functions as stipulated specifically in legal documents  and they have to comply with those documents.  
As a result, local governmental agencies also have  to fully comply with the obligations committed 
upon Viet Nam's accession to the WTO. 
Question 32 
With regard to the Legislative Action Plan to implement WTO Agreements 
(WT/ACC/VNM/31), we would welcome further in formation on the implementation process.  
Does it proceed as planned? 
Answer : 
The Government of Viet Nam has considered car efully the Legislation Program submitted to the 
Working Party.  This Program may be further adjusted to adapt the schedule of our commitments until 
Viet Nam reaches final agreements on WTO accession.  The updated Legislation Program is 
submitted to Members of the Working Party together with this document.   
IV. POLICIES AFFECTING TRADE IN GOODS 
- Trading Rights Question 33 
Viet Nam's responses to the questions regarding  this issue in WT/ACC/VNM/29 are inadequate 
and do not specifically respond to the questions.   
Viet Nam still maintains an asymmetrical reg ime in which foreign-own ed companies do not 
have the same rights to import, import for resale, or export as domestic firms.  As this restricts 
imports vis-a-vis  domestic output of similar products, it violates GATT Articles III and XI of the 
GATT and must be corrected prior to accession.   
Answer
: 
Relating to the right to import and export, Viet Nam confirms that foreign invested enterprises are 
entitled to export as Vietnamese enterprises.  Viet Nam commits to a schedule on import trading right 
as specified in detail in a document on tradi ng rights attached herewith (Annex I).   
Question 34 
Concerning importation: The responses state th at, "Foreign invested enterprises are also 
allowed to import all types of goods cons istent with their investment licenses." 
Is the scope and quantities of products that are co nsistent with investment licensing identical to 
that for which domestic firms are eligible to import?   WT/ACC/VNM/32 
Page 16  
 
 Are there any foreign exchange regulations specifi c to foreign-invested firm importation?  With 
regards to defining a firm's scope of business,  is the process or requirements different for 
foreign versus domestic firms, and if so how?   
We are also concerned that current investment licensing may not be sufficiently broad and 
flexible enough so as to allow for changes in  the business environment, which could ostensibly 
be considered a violation of GATT Article XI.  We  maintain that the only restrictions on trade 
should be those consistent with GATT Articles XX and XXI.   
Answer
: 
Relating to the right to import and export, Viet Nam confirms that foreign invested enterprises are 
entitled to export as Vietnamese enterprises.  Viet Nam commits to a schedule on import trading right 
as specified in detail in a document on tradi ng rights attached herewith (Annex I).   
Viet Nam does not apply regulations on foreign exchange for importation specific to foreign invested 
enterprises.  Article 67 of the Decree No. 24/ 2000/ND-CP providing deta iled regulations on the 
implementation of the Law on Foreign Investment in Viet Nam stipulates that "Enterprises with foreign owned capital or foreign parties to bus iness co-operation contracts may purchase foreign 
currency from banks permitted to se ll foreign currency in order to meet their demands on current 
transactions and other permitted tr ansactions in accordance with regulations on foreign exchange 
control".  Business scope of foreign invested en terprises are defined in their investment licenses 
granted by competent authorities based on projects proposed by investors.  Similarly, domestic 
investors may also register the business lines of th e enterprises which they propose to establish.   
Investment licenses do not specify quantities of goods that foreign invested enterprises can import.  
As a result, regulations on investment licenses do not violate the obligation of elimination of 
quantitative restrictions stipulated in Article XI of the GATT.  Investment licensing procedure in 
Viet Nam have been streamlined, in  certain cases licence is  granted within 24 hours.  In 2003, foreign 
invested enterprises accounted for 34.9 per cent of total imports.    
Question 35 
In response to Question 22 of document WT/ACC/VNM/29 Viet Nam states that "The 
importation of goods inconsistent with the invest ment licenses (i.e., importation for resale) is a 
matter relating to distribution services." 
This is not the case.  The restriction is in the form of an inability to import, on foreign firms 
based prospectively on whether th e firms can distribute said goods.  The right to import is not 
dependent on the right to distribute, and there is no request that foreign firms or individuals be 
given distribution rights, only the right to be the importer of record. 
Answer
: 
Viet Nam appreciates that the request for trading right s does not mean a request for distribution rights.  
Viet Nam commits to a schedule on import trading right as specified in detail in a document on 
trading rights attached herewith (Annex I). 
Question 36 Concerning exportation: The responses to questions 19-23 of document WT/ACC/VNM/29 state 
that "Viet Nam confirms that foreign invested en terprises are entitled to  export as Vietnamese 
enterprises."  WT/ACC/VNM/32 
 Page 17 
 
 
 To clarify, does Viet Nam confirm that foreign-inv ested firms' rights to export are identical to 
those of domestic firms, irrespective of produc t, sourcing from the domestic (Vietnamese) 
market, and registration requirements?   
May foreign-invested firms export any and all produc ts eligible for export for domestic firms?  
What products are still subject to export restrictions? 
Viet Nam should revise its responses. Answer
: 
Viet Nam confirms that foreign invested enterpri ses' rights to export are identical to Vietnamese 
enterprises.  Viet Nam's export restrictions are a pplied equally to both domestic and foreign invested 
enterprises.   
Question 37 Paragraphs 75, 80, and 81:  We seek provision in  Viet Nam's laws that permits all foreign and 
domestic firms and individuals to import and export.  The arguments in paragraph 81 miss the 
point. 
For imports, there should be scope for firms and individuals to be the importer of record 
without requirement that imports be for manufacturing.  Without this right, imported goods 
are, in effect, subjected to requirements and rest rictions not in place for domestic items, and 
therefore engaging Articles III and XI of the GATT. 
The importer of record legally owns the goods at time of importation, and should be able to 
distribute these goods domestically in accordance with domestic law.  There should be no 
discrimination in the ability of these goods to find a suitable distributor after importation, but 
the issue of who actually distributes the goods is  a separate issue from whether foreign persons 
and enterprises may import goods. 
For export, Viet Nam's restrictions on the right of foreign owned firms, legally incorporated, to 
export goods is not in accordance with Article XI and should be eliminated. 
Has Viet Nam considered how to address these issues and provide  for the right to import and 
export in its trade regime? 
Answer
: 
Viet Nam commits to a schedule on import trading right as specified in detail in a document on 
trading rights attached herewith (Annex I).  T hose commitments, however, are without prejudice to 
the commitments in distribution services which will be  discussed in the context of bilateral market 
access negotiations on services.   
Regarding the right to export, Viet Nam confirms th at foreign invested enterprises' rights to export are 
identical to Vietnamese enterprises.   
Question 38 
In its Answer to Question 22 Viet Nam has replie d that the importation of goods for resale is a 
matter relating to distribution services and m ay be discussed in the context of bilateral WT/ACC/VNM/32 
Page 18  
 
 negotiations on market access.  We have already registered our strong interest in this sector and 
look forward to discussing it with Viet Nam bilaterally. 
Paragraphs 74/77/80/81: Additionally, we would like to point out that, contrary to the argument 
put forward in paragraph 80, foreign enterprises do not enjoy the same trading right as local 
businesses.  Viet Nam explains, in paragraph 81, that foreign invested firms are free to define 
their scope of trading lines and hence are free to determine the list of imported goods indicated 
in their Certificate of Business Registration.  It seems, however, that this only applies to foreign 
invested enterprises of a manufacturing na ture.  Such importation is mainly for the 
establishment of their fixed assets.  As indicate d in paragraph 77, branches of foreign traders 
are allowed to purchase certain goods, mainly agr icultural, for export.  These branches are 
permitted to import only a few products for sale  in the domestic Viet Nam market.  And there 
are still certain requirements applyi ng to the right of import, such as the fact that any foreign 
exchange relating to an import should only come from what is earned through export activities; 
the import is still subject to a licence from th e Ministry of Trade.  These requirements were 
embodied in Decree No. 45/2000/ND-CP in 2000.   
We would therefore like to suggest that Viet Nam, during its forthcoming accession process, 
might consider amending the above-mentioned Dec ree, in order to gradually broaden the trade 
lines and to relax the requirements applying to the right of import. 
Answer
: 
Viet Nam commits to a schedule on import trading right as specified in detail in a document on 
trading rights attached herewith (Annex I).  T hose commitments, however, are without prejudice to 
the commitments in distribution services which will be  discussed in the context of bilateral market 
access negotiations on services.   
Regarding the right to export, Viet Nam confirms th at foreign invested enterprises' rights to export are 
identical to Vietnamese enterprises.   
Question 39 
Paragraphs 80 and 81:  We appreciate Viet Nam's explanation on the issue of Trading Rights.  
However, we are of the view that there do exis t some restrictions for foreign-invested companies 
to obtain trading rights, which are not consiste nt with GATT Article III.  We request Viet Nam 
to eliminate such restrictions to foreign -invested companies prior to its accession. 
Answer : 
Viet Nam commits to a schedule on import trading right as specified in detail in a document on 
trading rights attached herewith (Annex I).  T hose commitments, however, are without prejudice to 
the commitments in distribution services which will be  discussed in the context of bilateral market 
access negotiations on services.   
Regarding the right to export, Viet Nam confirms th at foreign invested enterprises' rights to export are 
identical to Vietnamese enterprises.   
Question 40 The replies to Questions 19-23 (WT/ACC/VNM/29) and paragraphs 80-81 of 
WT/ACC/SPEC/VNM/4 do not address concerns th at Viet Nam's trade regime in respect of the 
trading rights of foreign-invested enterprises is  not consistent with GATT Article XI or WTO  WT/ACC/VNM/32 
 Page 19 
 
 
 national treatment provisions.  We seek confirma tion that by the time Viet Nam accedes to the 
WTO, trading rights will be administered consistently with all relevant WTO provisions. 
Answer : 
Viet Nam commits to a schedule on import trading right as specified in detail in a document on 
trading rights attached herewith (Annex I).  T hose commitments, however, are without prejudice to 
the commitments in distribution services which will be  discussed in the context of bilateral market 
access negotiations on services.   
Regarding the right to export, Viet Nam confirms th at foreign invested enterprises' rights to export are 
identical to Vietnamese enterprises.   
Question 41 
Paragraph 79: As these "specialized enterprises" h ave a special right to trade in items denied to 
other firms, they can be considered state tradin g enterprises.  Will Viet Nam notify these firms 
under Article XVII?  Is the list in WT/ACC/VNM/14 comprehensive? 
Answer : 
The term "specialized enterprises" , which was notified in 1997, is no longer used.  As Viet Nam has 
confirmed, special right to trade for the "speciali sed enterprises" had been revoked (see paragraph 74 
of document WT/ACC/SPEC/VNM/4).  Regarding the comprehensive list of state trading enterprises 
within the meaning of Article XVII of the GATT, please refer to document WT/ACC/VNM/14/Add.1. 
A. IMPORT REGULATION 
- Customs Tariff 
Question 42 
As Viet Nam itself has recognized, "frequent ch anges in tariff rates [have] limited the stability 
of [its] tariff policy and affected business plans" (page 27, paragraph 85).   
Have any modifications been made to Viet Na m's tariff schedule since the last Working Party 
meeting?  Please describe the efforts being made to  publish any changes in tariff rates.  Are the 
tariff rates contained in WT/ACC/VNM/28/A dd.1 published and available in Viet Nam? 
Answer
: 
Document WT/ACC/VNM/28/Add.1 is Viet Nam's preferential tariff schedule issued by the Finance 
Minister's Decision No. 110/2003/QD-BTC dated 25 July 2003.  The tariff schedule was published in the Official Gazette and widely circulated before coming into force.   
Viet Nam is aware that frequent ch anges in tariff rates have limited the stability of tariff policy and 
affected business plans of enterprises.  However, being a developing count ry with a transitional 
economy, the requirement for changes in tariff sch edule in order to develop a proper economic 
structure, especially infant industries, is inevitable. 
Since the last session of the Working Party, Viet  Nam has constrained itself from making changes in 
import tariff rates.  Specifically, only very limited changes have taken place in cases where WT/ACC/VNM/32 
Page 20  
 
 commodities having major impact on the economy were  affected by wide price fluctuations in 
international market such as gasoline and recen t tariff changes for iron and steel products.   
Question 43 
Concerning the response to Question 27 of WT /ACC/VNM/29:  Please explain Viet Nam's 
understanding of the MFN provisions in its bila teral arrangements, e.g., its BTA with the 
United States, in light of the preferential provision of valuation treatment vis-a-vis wines, 
spirits, and ceramic tiles? 
Answer
: 
Regarding customs valuation, accord ing to the latest Action Plan to implement the Customs Valuation 
Agreement submitted to the Working Party together  with this document, Viet Nam commits to 
eliminate minimum prices on imports upon its accession to the WTO. 
Question 44 
We request a response from Viet Nam to the fo llowing questions, which were raised at the 
previous Working Party meeting.   
In its tariff offer, Viet Nam still indicates pro ducts for which it wants to reserve the right to 
convert to specific rates in the future.  Coul d Viet Nam provide more details concerning its 
methodology for any such conversion? 
Answer : 
Viet Nam is planning to apply some specific tariff rates or compound rates (for example 30 per cent 
or US$ 2/unit, whichever is higher).  The specific rates are being calculated based on experience of WTO Members and will be added to our Tariff Offer at an earliest possible time as a basis for market 
access negotiations.   
All conversions from ad valorem  tariffs to specific tariffs or compound tariffs after Viet Nam's 
accession will comply with WTO's rules and regula tions on modifications of schedules of tariff 
commitments under Article XXVIII of the GATT 1994 as well as other WTO's relevant regulations.   
Question 45 
The reply to Question 28 does not Answer the question.  We repeat the question.  For many 
tariff lines Viet Nam is seeking the ability to convert ad valorem  duties into specific duties in the 
future (WT/ACC/SPEC/VNM/1/Rev.1).  We are concern ed that this could mean that the value 
of Viet Nam's tariff concessions will be affected  in the future, reducing both the security and 
transparency of Viet Nam's tariffs.  If Viet Na m's proposal is to be considered, Viet Nam needs 
to provide: 
− More information on the need for such conversions; 
− An explanation of why GATT Article XXVIII processes are not adequate should 
tariff concessions need to be modified in the future; and 
− An explanation of the methodology that Vi et Nam proposes to use to undertake such 
conversions. 
Please provide the information requested.  WT/ACC/VNM/32 
 Page 21 
 
 
 Answer : 
Viet Nam confirms that all conversions from ad valorem  tariffs to specific tariffs after Viet Nam's 
accession shall comply with WTO's rules and regula tions on modifications of schedules of tariff 
commitments under Article XXVIII of the GATT 1994 as well as other WTO's relevant regulations.   
Question 46 
We have concerns about Viet Nam's inte ntions to reserve a right to convert ad valorem  tariffs to 
specific duties in the future (final sentence of paragraph 85 WT/ACC/SPEC/VNM/4 and WT/ACC/VNM/29, Questions 59 and 63), although we acknowledge that Viet Nam has reduced 
the proposed scope of this measure.  This is not an appropriate response to the risk of customs fraud which should be addressed through upgradi ng the assessment and valuation capacity of 
customs authorities.  Transparency and pred ictability will suffer under Viet Nam's proposed 
approach.  Compound or mixed tariffs could be  considered by Viet Nam where necessary.  
There is no procedure within the WTO for converting the basis for duty except through 
notification and negotiation under Article XXV III of GATT 1994.  We request Viet Nam to 
reconsider its position on this. 
Answer
: 
Viet Nam is planning to apply some specific tariff rates or compound rates (for example 30 per cent 
or US$ 2/unit, whichever is higher).  The specifi c rates are being calculated based on experience of 
WTO Members and will be added to our Tariff Offer at an earliest possible time as a basis for market access negotiations.   
All conversions from ad valorem  tariffs to specific tariffs or compound tariffs after Viet Nam's 
accession shall comply with WTO's rules and regula tions on modifications of schedules of tariff 
commitments under Article XXVIII of the GATT 1994 as well as other relevant regulations.   
Question 47 
We note in paragraph 86 of WT/ACC/SPEC/VNM/4  that the May 2002 Ordinance on MFN and 
National Treatment requires Viet Nam to comply  with MFN and national treatment provisions 
of international treaties.  Can Viet Nam conf irm whether this has been fully implemented, 
including in relation to ensuring that countri es which have bilateral trade agreements with 
Viet Nam are not disadvantaged by preferenti al arrangements that Viet Nam has recently 
negotiated with some countries? 
Answer
: 
The Ordinance on MFN and NT, which has been in effect from 1 September 2002, provides principle 
on non-discriminatory treatment in trade.  Viet Nam's general position is that non-discriminatory 
treatment should be applied to trading partners, fi rst according to bilateral agreements signed between 
Viet Nam and other countries, and once we become a WTO member, according to the WTO rules and Viet Nam's commitments upon accession. 
With regard to some arrangements that Viet Na m recently negotiated, Viet Nam has intended to 
extend MFN treatment to other partners in accordance with the bilateral trade agreements that the two 
sides have signed.   WT/ACC/VNM/32 
Page 22  
 
 - Other duties and charges levied on im ports but not on domestic production 
Question 48 Viet Nam's Answers to questions 34-37 of WT /ACC/VNM/29 avoid substantive response to a 
number of serious questions.         
Specifically, what products (by HS tariff line number) are currently subject to ODCs, and at 
what level of application?  Are these the products listed in Tables 1(a) and 1(b)?   
Will this list change, i.e., get longer?  Has the level of current ODCs increased since Viet Nam 
initiated WTO accession? 
Has Viet Nam incorporated ODC in formation in its tariff offer? 
Are there circumstances under wh ich Viet Nam will bind these ODCs at zero?  If so, what are 
they? 
Answer
: 
At present, Viet Nam only applies other duties and charges to welded steel pipe (HS 7306) and PVC 
in powder and granule form (HS 3904)  with surcharge rate of 10 pe r cent, 5 per cent and 10 per cent 
respectively. 
Reducing the number of products subject to other duties and charges is a great effort of the 
Government of Viet Nam to enhance transparency in tariff policy.  The mechanism to implement it 
was to propose to the National Assembly's Standing Committee to adjust the statutory ceiling rates so 
that all other duties and charges can be converted into import tariffs. 
Therefore, Viet Nam is ready to commit to bind other duties and charges at zero for almost all 
products upon accession provided that WTO Members w ill take the ceiling rates into consideration to 
give Viet Nam a flexible position against requests on tariffs, especially for products previously subject 
to other duties and charges. 
From the first to the third tariff offer, Viet Nam already included all existing other duties and charges 
at the time of submitting the offers. 
Question 49 
Viet Nam states that import and export surchar ges have been carried over into the Export 
Promotion Fund (paragraph 88 of WT/ACC/SPEC/VNM/4).  We would be grateful if Viet Nam could confirm whether these ODCs on imports are listed in Viet Nam's tariff offer.  We would 
also like to seek an update on Viet Nam's effort s to convert ODCs into ordinary customs duties 
(paragraph 90 of WT/ACC/SPEC/VNM/4 refers). 
Answer
: 
From the first to the third tariff offer, Viet Nam already included all existing other duties and charges 
at the time of submitting the offers.   
Reducing the number of products subject to other duties and charges is a great effort of the 
Government of Viet Nam to enhance transparency in tariff policy.  The mechanism to implement it  WT/ACC/VNM/32 
 Page 23 
 
 
 was to propose to the National Assembly's Standing Committee to adjust the statutory ceiling rates so 
that all other duties and charges can be converted into import tariffs. 
At present, Viet Nam only applies other duties and charges to welded steel pipe (HS 7306) and PVC 
in powder and granule form (HS 3904)  with surcharge rate of 10 pe r cent, 5 per cent and 10 per cent 
respectively. 
Therefore, Viet Nam is ready to commit to bind other duties and charges at zero for almost all 
products upon accession provided that WTO Members w ill take the ceiling rates into consideration to 
give Viet Nam a flexible position against requests on tariffs, especially for products previously subject 
to other duties and charges.     
Question 50 
In respect to paragraph 91 of WT/ACC/SPEC/VNM /4, we would like to stress the need for 
Viet Nam to commit to bind all other duties and charges at zero in its Schedule of Concessions 
and Commitments. 
Answer : 
Commitments on other duties and charges are depend ent on the results of market access negotiations 
in goods.  Therefore, these commitments will be upda ted upon the subsequent results of negotiations.  
However, Viet Nam is ready to include other duties and charges into import tariffs in order to bind all other duties and charges at zero in our final Schedule of Concessions. 
- Tariff rate quotas, tariff exemptions 
Question 51 The responses to Questions 29-33 give no inform ation on the application of TRQs, nor has any 
information on specific products subject to TRQs been incorporated in 
WT/ACC/SPEC/VNM/4.   
Please indicate where the information ref erred to in the responses can be found. 
Please list the products for which TRQs are applied. 
Answer
: 
Please refer to our revised Tariff Rate Quota O ffer (WT/ACC/SPEC/VNM/1/Rev.3/Add.1), which has 
been submitted to Members of the Worki ng Party together with this document. 
Question 52 
The response in paragraph 93 of WT/ACC/SPEC/VNM/4 does not allay our concerns about 
tariff quota restrictions on market  access for several products of in terest to us.  Viet Nam states 
it already has restrictions on imports of dairy and cotton.  This claim is not borne out by 
Viet Nam's list of NTM measures (WT/ACC/ VNM/25 and revisions and tables 4-6).  Can 
Viet Nam advise precisely the import restrictions that have applied in recent years to imports of 
dairy and cotton, and where these are referred to in the docume ntation that it has supplied 
previously to the Working Party? WT/ACC/VNM/32 
Page 24  
 
 Answer
: 
The list of non-tariff measures (document WT/ACC/ VNM/25/Rev.2) and updated versions refer to 
measures that Viet Nam proposes to maintain since the date of our accession.  Table 2 of this list, 
therefore, does not contain any agricultural produc ts.  Regarding agricultural products, Viet Nam 
commits not to apply any quantitative restric tions, except those allowed by the WTO, upon our 
accession. 
In the past, Viet Nam applied import restrictions on milk, for example through limitations on access to 
foreign exchanges for consumer goods, including milk.   
For information on cotton, please refer to Viet Nam's revised Tariff Rate Quota Offer 
(WT/ACC/SPEC/VNM/1/Rev.3/Add.1). 
Question 53 In 2003 Viet Nam announced it would introduce tariff quotas on cotton, tobacco, salt, dairy 
products, eggs and maize.  We note the in formation provided in Viet Nam's TRQ offer 
(WT/ACC/SPEC/VNM/1/Rev.2/Add.1).  However wo uld Viet Nam please advise which of these 
TRQs have been implemented in practice and ad vise if the implemented TRQs differ in any way 
from Viet Nam's WTO offer? 
Answer
: 
Tariff rate quotas have been applied on the followi ng commodities: cotton, tobacco materials, salt, 
dairy products, eggs and maize by virtues of the Prime Minister's Decision No. 91/2003/QD-TTg 
dated 9 May 2003.   
Please refer to our revised TRQs Offer submitted to Members of the Working Party together with this 
document for more information on the situation of TRQs upon accession. 
Question 54 
On Tariff Exemptions:  Please describe the provi sions of Article 17 of the Foreign Investment 
Law and Article 25 of the Law on Promotion of  Domestic Investment related to tariff 
exemptions. 
Are all/all exports and imports of enterprises with foreign owned ca pital and foreign parties to a 
business co-operation contract exempted from tariff duties. 
Answer : 
Provisions on tax exemptions under Article 47 of the Law on Foreign Investment are as follows:  Goods exported or imported by enterprises with foreign owned capital or parties to business co-
operation contracts shall be subject to export a nd import duties in accordance with the Law on Export 
and Import Duties. 
Enterprises with foreign owned capital and parti es to business co-operation contracts shall be 
exempted from import duty on goods imported to form fixed assets, comprising: 
− Equipment and machinery;  WT/ACC/VNM/32 
 Page 25 
 
 
 − Specialized means of transportation being part of a technological line and means of 
transportation used to transport workers; 
− Components, details, parts, spare parts, fittings, moulds and accessories accompanying 
the machinery and equipment and specialized means of transportati on referred to in sub-
clause (b) of this clause; 
− Raw materials and materials used to manufacture equipment and machinery in 
technological lines or to manufacture components, details, parts, spare parts, fittings, 
moulds and accessories accompanying machinery and equipment; 
− Construction materials which are not yet domestically produced. 
The exemption from import duty on the imported goods re ferred to in this clause shall also apply to 
cases of expanding the scale of a project and of replacing and renewing the technology. 
Raw materials, materials, compone nts imported for production of project s in sectors wh ere investment 
is specially encouraged or in regions with sp ecially difficult socio-economic conditions shall be 
exempted from import duty for a duration of five years from the commencement of production. 
The Government shall provide for the exemption fro m, or reduction of, expor t and import duties with 
respect to other special goods which are in  need of investment encouragement." 
Provisions on import tariff exemptions under Ar ticle 25, the Law on Promotion of Domestic 
Investment are as follows: 
− "Domestic investors having investment projects in sectors or areas where investment is 
encouraged shall be exempted from import duty on the following products which are not 
produced domestically or are produced but insufficiently to meet demands. 
− Equipment and machinery, specialized means of transportation being part of a 
technological line to form an enterprise's fi xed assets or to expand investment scale or 
modernize technology; and 
− Means of transportation used to transport workers." 
- Fees and charges for services rendered 
Question 55 
Are the fees listed in Table 2 comprehensive?  A re there any additional fees applied to imports?  
Are any of them ad valorem ? 
Answer : 
Table 2 enumerates all customs fees applicable to imported goods in accordance with the Inter-
Ministerial Circular No. 71/2000/TTLT/BTC-TC-T CHQ dated 19 July 2000 of the Ministry of 
Finance and the General Department of Customs guiding on collection procedures and administration 
of custom fees. 
Question 56 
As was noted at the last Working Party session, fees for fundamental infrastructure, such as 
port services, are very high in Viet Nam.   
Have efforts been made since the last Working Party meeting to reduce these port services fees 
to bring them in line with the cost of services rendered? WT/ACC/VNM/32 
Page 26  
 
 Answer
: 
Fees for port services are determined by port service enterprises, not subject to the State's price 
control.  However, in fact, fees for port services have  recently been reduced considerably to facilitate 
trade activities.  Specifically, there was a reduction of approximately 10 per cent in 2002 and another 
approximately 20per cent in 2003 and the first quarter of 2004. 
Question 57 We note that the fee for the import or export of foreign exchange varies with the value of the 
transfer.   
This fee does not meet the requirements of Article VIII of the GATT.  It should be eliminated or 
revised to meet the criteria for Article VIII. 
Answer
: 
Customs fees concerning the import and export of foreign exchange are based on the unit of 
US$ 100,000, with the fee of VND 100,000 (equivalen t to US$ 6.3 at the exchange rate of 
March 2004) for the first unit, VND 80,000 (equivalen t to US$ 5) from the second unit and but must 
not exceed VND 1,500,000 (approximate US$ 100) in to tal for a transaction.  Therefore, these fees 
are approximate to cost of services rendered.  Thus, these fees are not inconsistent with Article VIII of 
the GATT 1994. 
- Quantitative import restrictions, including prohibitions, quotas and licensing systems  
Question 58 In its list of import prohibitions (WT/ACC/VNM/25/Rev.2), Viet Nam notes that several used 
product categories are banned from import.  Co uld Viet Nam provide more specificity with 
regard to the products covered?  Some categor ies (e.g. electronic goods) appear extremely 
broad. 
Answer
: 
Details of the second-hand products in the im port prohibition list (WT/ACC/VNM/25/Rev.2) are 
enumerated in Annex 01B of Circular No. 11/2 001/TT-BTM dated 18 April 2001 of the Ministry of 
Trade (list of products in 8-digit HS is attached to this document). 
Question 59 
Concerning the importation of second-hand clothing:   We believe that concerns about human health can be addressed with less trade restrictive 
measures.   
An import ban is not the least trade distortive  measure available to provide for public safety, 
and we would encourage Viet Nam to utilize int ernal mechanisms that address environmental, 
health and safety concerns.  WT/ACC/VNM/32 
 Page 27 
 
 
 Answer : 
The import prohibition of the above products is the mo st feasible measure to protect public health that 
Viet Nam can implement in the current conditions as there is no alternative enforceable internal 
mechanism.   
Question 60 
Viet Nam indicates that the products listed in Table 1 of WT/ACC/VNM/25/Rev.2 may not be 
sold on the domestic market at all.   
Please confirm that the internal resale of these goods or the resale of domestic manufactures is 
thus also prohibited for all second-hand consumer goods, materials, and equipment listed in the 
table.  If not, we seek Viet Nam's explanation of how this measure doesn't violate Articles III 
and XI of the GATT. 
Answer : 
No domestic organizations or individuals are gran ted Business Registration Certificate for conducting 
business in the above-mentione d second-hand products.   
Question 61 
Viet Nam states in its Answer to Question 40 of WT/ACC/VNM/29 that motorcycles of a 
cylinder capacity exceeding 175cc may only be impo rted for military use.  All other imports of 
such motorcycles appear to be ba nned based upon safety reasons.   
Motorcycles of this size are pro duced as a commercial good for no n-military use and are sold in 
many countries.  A ban on such  motorcycles does not appear to be the least trade distortive 
measure available to control for safety concern s.  We therefore request that this ban be 
removed. 
Answer : 
Viet Nam prohibits domestic registration of motorcycles with engine capacity exceeding 175 cm³ in 
order to ensure traffic safety.  Such motorcycles are only allowed to use for special purposes such as 
for the armed forces, security pers onnel, or for sport competition.  Thus, the import prohibition of 
motorcycles with engine capacity exceeding 175 cm³ results from the domestic registration 
prohibition. 
Question 62 
With regard to paragraph 111 of WT/ACC/ SPEC/VNM/4, we would welcome further 
justification for import restrictions on second- hand motor vehicle spare parts and cigarettes. 
Answer : 
Viet Nam intends to restrict the developmen t of the local tobacco industry.  Resolution 
No. 10/2000/NQ-CP dated 14 August 2000 of the Government on national policy on preventing 
harmful effects of tobacco in the peri od 2000-2010 and Decree No. 76/2001/ND-CP dated 
22 October 2001 of the Government on trade a nd production of tobacco both have provisions 
restricting domestic production and consumption of tobacco.  Recently, Viet Nam has signed the WT/ACC/VNM/32 
Page 28  
 
 Framework Convention on Tobacco Control which was adopted by the World Health Organization on 
25 May 2003 in order to limit the number of in creasing death tolls of tobacco-related diseases.   
However, we are seeking alternative WTO-consistent measures to achieve this objective.  Viet Nam, 
therefore, commits to eliminate the prohibition on imports of cigarettes and cigars upon accession. 
With respect to the motor vehicle second-hand spare pa rts, the import prohibition is the most feasible 
measure to protect safety that Viet Nam can impl ement in the current conditions as there is no 
alternative enforceable internal mechanism. 
Question 63 
We note the explanation for the ban on imported  tobacco products in response to question 41.   
As Viet Nam has allowed the production of such  products for decades and does not foresee their 
elimination for some time to come, the ban would not appear to be consistent with Articles III 
and XI of the GATT.  Such a differential system  does not appear consistent with the announced 
goal of eliminating tobacco usage. 
Answer
: 
Viet Nam intends to restrict the developmen t of the local tobacco industry.  Resolution 
No. 10/2000/NQ-CP dated 14 August 2000 of the Government on national policy on preventing 
harmful effects of tobacco in the peri od 2000-2010 and Decree No. 76/2001/ND-CP dated 
22 October 2001 of the Government on trade and produc tion of tobacco all have regulations to restrict 
domestic production and consumpti on of tobacco.  Recently, Viet Nam has signed the Framework 
Convention on Tobacco Control which was adopt ed by the World Health Organization on 
25 May 2003 in order to limit the number of increasing death tolls of tobacco-related diseases. 
However, we are seeking alternative WTO-consistent measures to achieve this objective.  Viet Nam, 
therefore, commits to eliminate the prohibition on imports of cigarettes and cigars upon accession. 
Question 64 
In relation to the import prohibition on ciga rettes and manufactured tobacco Viet Nam was 
asked (Question 41 of WT/ACC/VNM/29) to provid e details of any similar prohibition imposed 
on domestic production or sale.  Viet Nam rep lied there are no equivalent domestic restrictions.  
The import prohibition is therefore contrary to GATT Article XI:1 and not justified by 
Article XI:2 or Article XX.  Viet Nam should be  taking steps to remove the import prohibition 
by the date of accession.  Paragraph 112 of WT /ACC/SPEC/VNM/4 is relevant.  Can Viet Nam 
confirm that this, and any other import prohibitio n, will be eliminated by the date of accession? 
Answer : 
Viet Nam intends to restrict the developmen t of the local tobacco industry.  Resolution 
No. 10/2000/NQ-CP dated 14 August 2000 of the Government on national policy on preventing 
harmful effects of tobacco in the peri od 2000-2010 and Decree No. 76/2001/ND-CP dated 
22 October 2001 of the Government on trade and produc tion of tobacco all have regulations to restrict 
domestic production and consumpti on of tobacco.  Recently, Viet Nam has signed the Framework 
Convention on Tobacco Control which was adopt ed by the World Health Organization on 
25 May 2003 in order to limit the number of increasing death tolls of tobacco-related diseases.  WT/ACC/VNM/32 
 Page 29 
 
 
 However, we are seeking alternative WTO-consistent measures to achieve this objective.  Viet Nam, 
therefore, commits to eliminate the prohibition on imports of cigarettes and cigars upon accession. 
Question 65 
Paragraph 113: We note Viet Nam's efforts to li beralize its quantitative import restrictions.  
However, looking at Table 5, we cannot but note that some items will still be subject to 
quantitative restrictions for some years after Vi et Nam's accession to the WTO.  We request 
Viet Nam to eliminate all quantitative import restrictions by the date of its accession. 
Answer : 
Viet Nam commits to eliminate all quantitative import restricti ons in the forms of quotas and 
restrictive licenses upon its accession and has revised its non-tariff measures (document 
WT/ACC/VNM/25/Rev.3) accordingly.   
Question 66 
Paragraph 113 states that "Viet Nam did not fix annual import quotas, but relied on a flexible 
system based on forecasted gaps between tota l demand and supply of the goods concerned.  
Quota volumes were decided by the Ministry of Trade, in consultation with the Ministry of 
Planning and Investment, and the line ministries in charge of the goods."   
Does this refer only to agricultural quotas, or to all currently in place?   This system lacks 
transparency and makes the quotas difficult to utili ze.  Even if the quotas were justifiable, their 
level and how to access them must be provided for traders well before their implementation. 
Answer : 
Viet Nam commits to eliminate all quantitative import restricti ons in the forms of quotas and 
restrictive licenses upon its accession and has revised its non-tariff measures (document 
WT/ACC/VNM/25/Rev.3) accordingly. 
Question 67 
Viet Nam has not replied fully to Question 50 (WT/ACC/VNM/29) which in respect of current 
quotas asked Viet Nam to "provide details of the quotas, including volumes of imports 
permitted, and conditions that must be met".  We note fixed volumes of quotas are not provided 
for the whole year and quotas are administered  flexibly on the basis of the gaps between 
demand and supply.  Nevertheless, would Viet Nam please advise the quota volumes, and actual 
import volumes and values for each of the past th ree years, as well as the conditions that must 
be met for current quotas? 
Answer : 
Viet Nam commits to eliminate all quantitative import restricti ons in the forms of quotas and 
restrictive licenses upon its accession and has revised its non-tariff measures (document 
WT/ACC/VNM/25/Rev.3) accordingly. 
Question 68 
We are encouraged to see the progress that Vi et Nam has made to eliminate various 
quantitative restrictions upon accession, as noted in VNM/25/Rev.2.   WT/ACC/VNM/32 
Page 30  
 
 We remain concerned, however, regarding the number of products where quotas are scheduled 
to remain in force for several years.  As Viet  Nam acknowledged in its response to Question 49 
of WT/ACC/VNM/29, such measures are inconsistent with WTO rules.  These quotas should be eliminated upon accession. 
The justifications provided in the Working Pa rty report are not complete.  Viet Nam cannot 
ban or restrict the importation of goods that it produces and trades internally and be considered 
to be consistent with WTO provisions.    
Answer
: 
Viet Nam commits to eliminate all quantitative import restricti ons in the forms of quotas and 
restrictive licenses upon its accession and has revised its non-tariff measures (document 
WT/ACC/VNM/25/Rev.3) accordingly.   
Question 69 
We appreciate the specific assurances in the Wo rking Party report that for the products listed, 
the quantitative restrictions in place will be eliminated either upon accession or within a 
timeframe thereafter. 
The timetable provided does not provide for in itiating removal of the measures prior to 
accession.  Has Viet Nam begun to remove these measures now, during the Accession process?  
If not, why not? 
Please confirm that the list in VNM/25/Rev.2 is  comprehensive for non-agricultural products 
and that all other imports are free from quantitat ive restriction.  Could the list of agricultural 
products under quota be provided to the WP? 
Answer : 
Viet Nam has been implementing a process of phasing out quantitative restrictions for several years 
and shall continue with this process.  Viet Nam commits to eliminate all quantitative import 
restrictions in the forms of quotas and restrictive licenses upon its accession and has revised its non-tariff measures (document WT/ACC/VNM/25/Rev.3) accordingly.   
With respect to agricultural products, Viet Na m has committed not to apply any quantitative 
restrictions upon accession as Viet Nam has been maki ng recourse to other measures being used by 
WTO Members such as tariff rate quotas.   
Question 70 
Referring to paragraph 115 of WT/A CC/VNM/4 and the list provided in 
WT/ACC/VNM/25/Rev.2, we would welcome further flexibility with regard to the rapid 
elimination of specific non-tariff measures upon a ccession, e.g. in the areas of paper, steel, 
motorcycles and automobiles. 
Answer
: 
Viet Nam commits to eliminate all quantitative import restricti ons in the forms of quotas and 
restrictive licenses upon its accession and has revised its non-tariff measures (document 
WT/ACC/VNM/25/Rev.3) accordingly.    WT/ACC/VNM/32 
 Page 31 
 
 
 Question 71 
Paragraph 115 of WT/ACC/SPEC/VNM/4 and the a ttached tables envisage transitions for 
elimination of import restrictions.  These would be an exception to Article XI of GATT, and there is no entitlement to a transition.  Quest ion 51 (WT/ACC/VNM/29) requested Viet Nam to 
provide details of the arrangements envisaged to progressively phase out the WTO-inconsistent 
measures for which it is seeking a transition period.  Would Viet Nam please advise, for each 
proposed QR listed in the table of NTMs, the qu ota volumes, administration methods, proposed 
progressive liberalisation, and other details propo sed for each year of the requested transition 
period? 
Answer
: 
Viet Nam commits to eliminate all quantitative import restricti ons in the forms of quotas and 
restrictive licenses upon its accession and has revised its non-tariff measures (document 
WT/ACC/VNM/25/Rev.3) accordingly. 
Question 72 
We are not satisfied with the explanation in paragraph 116 of WT/ACC/SPEC/VNM/4.  
Question 52 (WT/ACC/VNM/29) noted many pro ducts are subject to line-management, and 
requested a full description of measures that Viet  Nam proposes to retain after accession and a 
detailed WTO justification for these.  We are still seeking a full reply to this question. 
Answer : 
As already explained in paragraph 116 of WT/ACC /SPEC/VNM/4, the concept of import restrictive 
line-management licensing, which was the case in past, has not existed since early 2001.  As 
stipulated in the Annex 3 of the Prime Minist er's Decision No. 46/2001/QD-TTg dated 4 April 2001, 
imported products subject to line management for the purpose of health, safety, etc, once allowed to be used in Viet Nam, "shall be imported upon dema nd" and "shall not be limited in amount or in 
value".  Such management are applied for domest ic consumption (therefo re, imported products are 
also subject to similar management if they are d estined for domestic consumption) with respect to 
pharmaceuticals, breeding animals, plants, etc. and is  fully consistent with Article XX and XXI of the 
GATT 1994 and international practices. 
Question 73 
Viet Nam states in reply to Questions 45 and 46 of WT/ACC/VNM/29 that the import licensing 
under line-management (table 6.1) is not restrictive.  Does this mean that it meets the definition 
of automatic import licensing?  We request Vi et Nam to explain why government ministries 
need to supervise the quality of imported product given that this should be an issue determined 
between buyer and seller.  Are there other reasons apart from product quality and safety?  If so, 
what are they?  We ask Viet Nam to clarify fo r each measure on each HS line the reason why 
licensing is imposed, and the precise condition s under which licenses would not be issued, or 
would be restricted in volume of otherwise. 
Answer
: 
As already explained in paragraph 116 of WT/ACC /SPEC/VNM/4, the concept of import restrictive 
line-management licensing, which was the case in past, has not existed since early 2001.  As 
stipulated in the Annex 3 of the Prime Minist er's Decision No. 46/2001/QD-TTg dated 4 April 2001, 
imported products subject to line management for the purpose of health, safety, etc, once allowed to WT/ACC/VNM/32 
Page 32  
 
 be used in Viet Nam, "shall be imported upon dema nd" and "shall not be limited in amount or in 
value".  Such management are applied for domest ic consumption (therefo re, imported products are 
also subject to similar management if they are d estined for domestic consumption) with respect to 
pharmaceuticals, breeding animals, plants, etc. and is  fully consistent with Article XX and XXI of the 
GATT 1994 and international practices. 
Viet Nam commits to eliminate all quantitative import restrictions upon its accession.   
Question 74 
Paragraphs 110-120: Table 2 on page 4 of WT /ACC/VNM/25 indicates that certain commodities 
are subject to either quota or licence requirement s, but others are subject to both quota and 
licence requirements.  According to the explanatio n provided in the Notes, the timetables for the 
phasing out of the quota and/or licence requirements are not exactly the same.   
Could Viet Nam please explain exactly how the syst em described in the Table is administered.  
We would also appreciate further clarification of how the quota or licence requirements on the 
one hand are related to the phase-out requirements on the other. 
Answer
: 
Viet Nam commits to eliminate all quantitative import restricti ons in the forms of quotas and 
restrictive licenses upon its accession and has revised its non-tariff measures (document 
WT/ACC/VNM/25/Rev.3) accordingly. 
- Import licensing 
Question 75 
In WT/ACC/VNM/22/Rev.1, Viet Nam indicates th at the regulations necessary to bring it into 
conformity with the WTO Agreement on Import Licensing Procedures will be implemented on 
1 January 2005.   
We thank Viet Nam for these assurances, but seek information on what is being done at this 
time to actually implement the provisions.  Has Viet Nam begun drafting the regulations?  What 
law will they elaborate or amend?  Are any of the drafts noted in the Action Plan ready for 
review now?  The Working Party would appreciat e reviewing these as soon as they may be 
available. 
What are the fees currently associated with getti ng an import licence and will they be changed? 
Answer : 
In order to comply with provisions of the Ag reement on Import Licensing upon accession, Viet Nam 
envisages two possible solutions:  (1) to include provisions of import licensing in the (amended) 
Commercial Law planned to be submitted to the Nati onal Assembly in September 2004; or (2) in case 
the drafting of the above Law cannot be comple ted in time to meet the requirement of WTO 
accession, Viet Nam would issue regulations in the fo rm of a Government's Decision in order to fully 
comply with the WTO Agreement on Import Licensing. 
Fees associated with getting an import licence, if an y, have been consistent with the Ordinance of 
Fees and Charges and, therefore, are equivalent to the costs of services rendered.    WT/ACC/VNM/32 
 Page 33 
 
 
 - Application of internal taxes on imports 
Question 76 The discussion in paragraphs 100-105 is not cl ear.  Viet Nam has di scriminatory taxes on 
imported tobacco, a possibly WTO-inconsistent  lower duty excise on Herbal wines, and 
preferential excise tax rates on domestic beer  from small breweries and automobiles.  The 
justifications offered for these discriminatory measures are not complete.  Viet Nam should 
develop an action plan as soon as possible to eliminate the discriminatory measures. 
Answer
: 
With respect to imported tobacco: Viet Nam co mmits to comply with the non-discriminatory 
principles stipulated in Article III of the GATT upon accession. 
With respect to herbal wine (the strict and correct  translation from the Vietnamese word is "medicinal 
alcohol" but the word "medicinal and herbal wine" has been used in the previous documents): there 
are differences in production process,  inputs and effects between medicinal alcohol and other types of 
alcohol such as wines or other alcoholic beverages.   Specifically, medicinal alcohol is a low-cost 
alcohol produced from medicinal herbs and is used for medical treatment purposes.  Excise tax is used 
to adjust trade, production and consumption by a pplying high tax rates on high-value and luxurious 
items.  Therefore, more luxurious wines and al cohols are subject to higher excise tax rates. 
Exemption of excise tax for loss-making small br eweries had been abolished according to the 
amended Law on Excise Tax No. 08/ 2003/QH11 dated 17 June 2003. 
With respect to automobiles: Article 16 of th e amended Law on Excise Tax No. 08/2003/QH11 dated 
17 June 2003 stipulates that excise tax exemption and reduction for car assembling enterprises are 
subject to a phasing out schedule until 31 Decemb er 2006 as follows: exemption and reduction for 
domestic automobile enterprises shall be 70 per cen t, 50 per cent, 30 per cent and 0 per cent in 2004, 
2005, 2006 and 2007 respectively. 
Viet Nam has invested in the infant automob ile industry for 10 years and wishes to maintain 
supporting measures in the next three years by ex emption and reduction of excise tax for local car 
assembling enterprises.  These measures, however, ar e subject to a phasing out schedule in three 
years.  Therefore, Viet Nam will not discriminate among car assembling enterprises as from the end of 2006 and wishes WTO Members allow Viet Nam to maintain this schedule.  As from 2006, 
Viet Nam will fully comply with Article III of the GATT with respect to excise tax on imported 
automobiles.   
Question 77 
We note the entitlement to a 95 per cent reducti on in the excise payable by local car assembling 
enterprises will cease at the end of 2003.  However we are concerned Viet Nam will extend the reductions for an additional five years for loca l car assembly enterpri ses still incurring losses 
(paragraph 103 of WT/ACC/SPEC/VNM/4).  This  would not be consistent with GATT 
Article III and discriminates against imported vehi cles.  Can Viet Nam confirm the excise on 
imported motor vehicles will be levied consiste ntly with GATT Article III by the date of 
accession? WT/ACC/VNM/32 
Page 34  
 
 Answer
: 
Article 16 of the amended Law on Excise Tax No . 08/2003/QH11 dated 17 June 2003 stipulates that 
excise tax exemption and reduction for car assembling enterprises are subject to a phasing out schedule until 31 December 2006 as follows: exemp tion and reduction for domestic automobile 
enterprises shall be 70 per cent, 50 per cent, 30 pe r cent and 0 per cent in 2004, 2005, 200 6 and 2007 
respectively. 
Viet Nam has invested in the in fant automobile industry for te n years and wishes to maintain 
supporting measures in the next three years by ex emption and reduction of excise tax for local car 
assembling enterprises.  These measures, however, ar e subject to a phasing out schedule in three 
years.  Therefore, Viet Nam will not discriminate among car assembling enterprises as from the end 
of 2006 and wishes WTO Members allow Viet Nam to maintain this schedule.  As from 2006, 
Viet Nam will fully comply with Article III of the GATT with respect to excise tax on imported 
automobiles.   
Question 78 
Concerning Excise tax (paragraphs 102, 104): We would welcome further information on the 
criteria to be applied for excise duty reductions ava ilable for companies facing difficulties due to 
natural disasters or expanding th eir production capacity.   
We recall that the preferential tax treatment for domestic producers of cigarettes is not 
compatible with Art. III GATT.  We would therefore welcome further information on the 
change of this system. 
Answer
: 
With respect to excise tax on to bacco, Viet Nam commits to comply with the non-discriminatory 
principles stipulated in Article III of the GATT upon accession. 
Question 79 
In relation to Table 3 and paragraph 100 of  WT/ACC/SPEC/VNM/4, we do not understand the 
difference between "draught beer" and "draft b eer" and why the excise rate differs between 
these products.  Can Viet Nam explain please? 
Answer : 
Viet Nam applies excise tax rate of 75 per cent on draught beer and 30 per cent on draft beer due to 
the differences in production process and inputs betw een these products.  Specifically, draught beer 
requires production process, inputs, product quality and sanitary standard at higher level as compared 
with draft beer (which is a cheaper variety that s hould be consumed within the day).  Thus, draught 
beer is a more luxurious product. 
Excise tax is used to adjust trade, production and social consumption by applying high tax rates on 
high-value and more luxurious products.  Therefore,  draught beer with higher value is subject to 
excise tax rate of 75 per cent.  WT/ACC/VNM/32 
 Page 35 
 
 
 Question 80 
Concerning VAT: Please confirm that the VAT applications listed in WT/ACC/VNM/28/Add.2 
are comprehensive and, with the exceptions no ted in paragraph 106, applied both to imports 
and domestic goods equally. 
Paragraph 106: The VAT exemption on unprocessed  or semi-processed agricultural products 
by organisations or individuals producing these products discriminates against imported 
agricultural products, and should be eliminated or  extended to similar imported items.  Is salt 
imported, or is there a ban? 
Answer : 
The VAT applications listed in WT/ACC/VNM/28/ Add.2 are comprehensive at the period of 
September 2003.   
Viet Nam confirms that the Valued Added Tax provi des for equal application in principle to both 
imported and domestic goods. 
The Law No. 07/2003/QH11 dated 17 June 2003 on am endment of and addition to a number of 
Articles of the Law on Value Added Tax, Article 4, section 1 stipulates that domestic unprocessed and 
semi-processed agricultural and aquatic products ar e not subject to value added tax while imported 
unprocessed and semi-processed agricultural and aquatic  products are subject to a 5 per cent value 
added tax (Article 8, section 1.g).  Viet Nam confirms that the objective of these provisions does not aim at protection of domestic production against im ports.  These provisions stem from the fact that 
Viet Nam has a high proportion of population, about 80 per cent, engaging in agriculture.  As a result, from the point of view of tax management, the inclusion of unprocessed and semi-processed 
agricultural and aquatic products in to taxable coverage, meaning to manage all farmers as taxpayers, 
is not feasible.  Also, the value of unprocessed a nd semi-processed agricultural and aquatic products 
which are sold directly from farmers to final c onsumers accounts for a very small proportion of the 
total value of like products in the market.  Most of these products are sold by farmers to distribution 
and processing intermediary stages, which are all subject to 5 per cent value added tax.  Viet Nam 
looks forward to receiving technical assistance fro m other countries to overcome difficulties in VAT 
management and is willing to discuss with other WTO Members to implement VAT in conformity 
with the WTO rules. 
Salt is currently subject to tariff rate quota, pursuant to the Prime Minister's Decision 
No. 91/2003/QD-TTg dated 9 May 2003.   
- Customs valuation 
Question 81 
Paragraphs 121-128: The factual description pr ovided needs elaboration.  We suggest the 
following: 
Confirmation of the scope of the use of minimu m values for valuation purposes, i.e., a closed a 
list by HS item number of all products currently subject to minimum valuation. 
Revised responses to the questionnaire on customs valuation based on the provisions of the new 
and prospective legislation that Viet Nam intends to apply beginning in 2004. WT/ACC/VNM/32 
Page 36  
 
 Action prior to the next WP meeting that revi ses the current appeal process that denies recourse 
for appeal to an independent tribunal unless furt her administrative appeals are foregone.   
Answer
: 
According to the latest Action Plan to implement the Customs Valuation Agreement submitted to the 
Working Party together with this document, Viet  Nam commits to eliminate the minimum prices on 
imports upon its accession to the WTO.  The list of it ems that are subject to minimum prices will be 
removed immediately after relevant legislati on addressing this issue is promulgated.   
For transparency purposes, the list of the items cu rrently subject to minimum prices is described 
below together with 4-digit HS code for th e reference of the Working Party's Members: 
No Items HS 
1 Beverages including those under Charter 22 of the current Import 
Tariff Nomenclature 2201, 2202, 2203, 2204, 2205, 
2206, 2208 
2 Tyres, inner tubes and plastic front strips for automobiles, 
motorcycles and bicycles 4012, 4013, 4016 
3 Ceramic tiles and sanitary wares  6810, 6904, 6907, 6908, 6910 
4 White and tinted flat glass and mirrors; vacuum flasks and glass 
inners for vacuum flasks 7003, 7004, 7005, 7007, 7009, 
7012, 9617 
5 Combustion piston engines, electric motors and generators 
(excluding those used in automobiles, motorcycles and specialized vehicles e.g. crane-trucks, bulldozers, etc) 8407, 8408 
6 Electric fans (excluding industrial fans under HS code 84145900) 8414 
7 Motorcycles and spare parts 8711, 8714, 7315, 7318, 7320, 
7415, 8301, 8407, 8408, 8409, 
8413, 8414, 8421, 8482, 8483, 8484, 8507, 8511, 8512, 8539, 
8544, 9405 
8 Tobacco leaves and stems, cigarettes 2401, 2403 
9 Automobiles and spare parts 7315, 7318, 7320, 7415, 8301, 
8407, 8408, 8409, 8413, 8414, 8421, 8482, 8483, 8484, 8507, 
8511, 8512, 8539, 8544, 9405, 
8702, 8703, 8704, 8706, 8707, 8708 
 
The Ministry of Finance has issued Circular No. 118/2003/TT-BTC dated 8 December 2003 guiding 
the Decree No. 60 on implementation of cust oms valuation according to the Agreement on 
implementation of Article VII of the GATT 1994.   
Under the current rules, within 30 days from the date of terminating the settlement period but the 
petition is not settled, or from the date of receiving the decision on settlement of the first petition, the 
complainant is entitled to either continue lodging th e appeal to a superior administrative body or to 
bring the case to an administrative court.  Viet Nam, however, is considering the amendments and 
additions to the existing Law on Complaint and Denunciation. 
Question 82 
With regard to minimum customs values, we appr eciate Viet Nam's proposal to gradually phase 
out the minimum price list by July 2007.  We wo uld like to encourage Viet Nam to eliminate all 
minimum customs values by the date of its accession to the WTO.    WT/ACC/VNM/32 
 Page 37 
 
 
 We have some concern about the list of items that are subject to minimum customs values in 
this paragraph.  We do not believe that this list duly reflects the actual situation.  Again, we ask 
Viet Nam to provide us with a precise list cont aining the HS codes on all specific items. 
Answer : 
According to the latest Action Plan to implement the Customs Valuation Agreement submitted to the 
Working Party together with this document, Viet  Nam commits to eliminate the minimum prices on 
imports upon its accession to the WTO.  The list of it ems that are subject to minimum prices will be 
removed immediately after relevant legislati on addressing this issue is promulgated.   
For transparency purposes, the list of the items cu rrently subject to minimum prices is described 
below together with 4-digit HS code for th e reference of the Working Party's Members: 
No Items HS 
1 Beverages including those under Charter 22 of the current Import Tariff 
Nomenclature 2201, 2202, 2203, 2204, 
2205, 2206, 2208 
2 Tyres, inner tubes and plastic front strips for automobiles, motorcycles and 
bicycles 4012, 4013, 4016 
3 Ceramic tiles and sanitary wares  6810, 6904, 6907, 6908, 
6910 
4 White and tinted flat glass and mirrors; vacuum flasks and glass inners for 
vacuum flasks 7003, 7004, 7005, 7007, 
7009, 7012, 9617 
5 Combustion piston engines, electric motors and generators (excluding 
those used in automobiles, motorcyc les and specialized vehicles e.g.  
crane-trucks, bulldozers, etc) 8407, 8408 
6 Electric fans (excluding industrial fans under HS code 84145900) 8414 
7 Motorcycles and spare parts 8711, 8714, 7315, 7318, 
7320, 7415, 8301, 8407, 8408, 8409, 8413, 8414, 
8421, 8482, 8483, 8484, 
8507, 8511, 8512, 8539, 
8544, 9405 
8 Tobacco leaves and stems, cigarettes 2401, 2403 
9 Automobiles and spare parts 7315, 7318, 7320, 7415, 
8301, 8407, 8408, 8409, 8413, 8414, 8421, 8482, 
8483, 8484, 8507, 8511, 
8512, 8539, 8544, 9405, 8702, 8703, 8704, 8706, 
8707, 8708 
 
Question 83 In paragraph 128 of WT/ACC/SPEC/VNM/4, Viet  Nam states that minimum values will be 
phased out gradually between 1 January 2004 and 1 July 2007.  We consider the maintenance of 
minimum customs values is without justification.   The correct application of the valuation 
methods, in hierarchy order, together with domestic legislation enabling the procurement of documentation relating to the sales transaction,  will enable the arrival of correct customs 
values.  We would be grateful if Viet Nam could explain the changes that occurred on 
1 January 2004.  Can Viet Nam explain why minimum values will be phased out for imported products intended as inputs for domestic produc tion three years earlier than for other imported 
goods (see WT/ACC/VNM/20/rev.1)?  What is the WTO basis for differentiating between inputs 
on the basis of their intended use in local production? WT/ACC/VNM/32 
Page 38  
 
 Answer
: 
Paragraph 128 of WT/ACC/SPEC/VNM/4 will be updated to reflect fully the most recent 
commitment of Viet Nam to eliminate the minimum price list upon its accession to the WTO.   
Question 84 
The arrangements described in paragraph 124 of  WT/ACC/SPEC/VNM/4 are not acceptable to 
this Member, especially as Viet Nam is seekin g a transition to maintain WTO-inconsistent 
minimum import prices until July 2007 (par agraph 128 of WT/ACC/SPEC/VNM/4 refers).  Can 
Viet Nam explain why it is technically possibl e to remove minimum customs values for imports 
from some Members but not for imports from ot her Members?  Can Viet  Nam also explain how 
such discrimination is consistent with its exis ting bilateral trade agreements and with Article I 
of GATT 1994? 
Answer : 
Paragraph 124 of WT/ACC/SPEC/VNM/4  will be updated to reflect the commitment of Viet Nam to 
fully implement the WTO's Customs Valua tion Agreement upon accession to the WTO.   
The application of minimum customs values as men tioned in this Question is only transitional and 
will be terminated as soon as relevant le gislation is drafted and/or revised. 
Question 85 
Again with regard to minimum values, Viet Nam has indicated that "a small number of 
products are subject to different minimum pric es based on their brand names" (final sentence 
of paragraph 128 of WT/ACC/SPEC/VNM/4 and WT/ACC/VNM/29, Question 60).  What is the justification for this departure from the basic WTO obligation of non-discrimination between 
suppliers of like products? 
Answer
: 
Viet Nam commits to abolish the minimum price list upon its accession to the WTO, hence all 
different determination of minimum customs values including different prices subject to brand names 
of products will be phased out accordingly. 
Question 86 Viet Nam has not yet provided an Answer on whether it will implement the decisions on 
valuation of carrier media bearing software and interest charges (paragraph 126 of WT/ACC/SPEC/VNM/4). 
Answer
: 
Viet Nam does implement customs valuation of carri er media bearing software and interest charges 
according to the basic principles of  the Agreement on Implementation of Article VII of GATT 1994.  
However, in practice, the issue of customs valuati on of carrier media bearing is very complex, not 
only in Viet Nam but also in other WCO or WTO Memb ers.  Viet Nam, as a result, is studying for the 
application suitable with Viet Nam's current situa tion with reference to in ternational and regional 
experiences in this matter.  Viet Nam highly appreciates assistance from concerned Members and 
organizations in this aspect of customs valuation.    WT/ACC/VNM/32 
 Page 39 
 
 
 Question 87 
WT/ACC/VNM/20/Rev.1: We would welcom e further information on the staged 
implementation of the CVA up to 2007. 
We would be grateful if you could provide us  with a copy of Decree No. 60/2002/ND-CP on 
valuation legislation. 
Could you further elaborate on the price databa se (paragraph 16).  We have difficulties to see 
the need for this concept. 
Answer : 
Viet Nam commits to fully implement the WTO' s Customs Valuation Agreement upon accession to 
the WTO.   
We have submitted the English version of the Decree 60/2002/ND-CP on customs valuation for 
imported products to Working Party Members prio r to the 7th Session of the Working Party.   
Price database mentioned in para graph 16 refers to a system of software, networks, scattered and 
centralized database assisting the storage, statisti cs and retrieval of information on transaction values 
consulted during the process of customs valuati on and risk management.  Customs values are 
identified according to different calculation methods as well as reference to information on importers, 
suppliers who are able to connect to different data base, helping to confirm the legal eligibility through 
other customs techniques like post-cl earance inspection, customs inte lligence, etc. As a result, the 
database referred to paragraph 16 is of significance in supporting CVA implementation.  Viet Nam is 
accelerating the process of setting up this database and has been receiving va luable assistances from 
multilateral organisations and bilate ral partners in doing this.   
- Rules of Origin Question 88 In paragraph 130 of the WP Draft Report, Viet Na m seems to indicate that currently, it has no 
legislation on rules of origin.  It is unclear if law or regulation exists to implement Article 2(h) 
and Para 3(d) of Annex II of the WTO Agreement on Rules of Origin, i.e.,  
− that for both non-preferential and preferential trade, upon the request of an 
exporter, importer or any person with a just ifiable cause, assessments of the origin 
that would be accorded  to a good are issu ed as soon as possible but no later than 
150 days after the request; 
− that requests for such assessments shall be accepted before trade in the good 
concerned begins and may be accepted at any later point in time; and 
− that such assessments shall remain valid for three years provided that the facts and 
conditions, including the rules of origin, under which they have been made remain 
comparable. 
If such provisions currently do not exist, Viet Nam should amend its legislation to meet this 
WTO requirement and to ensure that all other aspects of the WTO Agreement on Rules of Origin are adequately provided for.   WT/ACC/VNM/32 
Page 40  
 
 We seek Viet Nam's cooperation in providing specific texts of laws that cover the above 
provisions or others in the Agreement, marked to  indicate what aspect of the Agreement on 
Rules of Origin have been implemented. 
Answer
: 
To implement state management over the origin of goods, Viet Nam has issued a number of legal 
documents to govern imports, exports subject to both ASEAN preferential rule of origin and non-
preferential rule of origin.   
Decision of Minister of Trade No. 416/TM-DB da ted 13 May 1996 issuing Regulation  of granting 
Certificate of Origin for goods having ASEAN orig in- Form D for enjoying preferences under the 
Common Effective Preferential Tariff (CEPT).   
Joint-agency Circular of Ministry of Trade and General Customs Department No.09/2000/TTLT-
BTM-TCHQ dated 17 August, 2000 guiding the identifi cation and examination of origins of goods.   
Joint-agency Circular of Ministry of  Trade and General Customs Department 
No.22/2001/TTLT BTM-TCHQ dated 2 October 2001 am ending several points in the above Joint-
agency Circular No.09  
These legal documents are only at the ministerial level.   As a result, paragraph 130 of the Elements of 
the Draft Report of the Working Party means that at  the moment Viet Nam doesn't have a law issued 
by the National Assembly on origin of goods, and does not mean that Viet Nam has no legal documents on origin of goods.   
The above mentioned joint-agency Circular of Mi nistry of Trade and General Customs Department 
No.09/2000/TTLT-BTM-TCHQ dated 17 August 2000 and the joint-agency Circular 
No. 22/2001/TTLT-BTM-TCHQ are documents providing fo r non-preferential rule of origin.  They 
are consistent with WTO's Agreement on rules of or igin, although they have not fully elaborated all 
areas governed by the Agreement, including Article 2( h) of the Agreement.  Viet Nam is considering 
to draft a legal document at higher level which woul d specified in more details the areas governed by 
WTO's Agreement on Rules of Origin.  Viet Nam commits to comply with WTO's Agreement on 
Rules of Origin from accession. 
Question 89 
Concerning the Law of Customs Article 7 para graph 1 and Article 10 paragraph 2 we would 
appreciate a clarification on the responsibility fo r the certificate of origin.  Is it the person 
certifying as mentioned in Article 7 or is it  the goods owner as referred to in Article 10? 
Answer
: 
Item 6, section I on general regulation in the Joint-ag ency Circular of Ministry of Trade and General 
Customs Department No.09/2000/TTLT-BTM-TC HQ dated 17 August 2000 guiding the 
identification and examination of origins of goods  provides that "exporters, importers are legally 
responsible for the legality and eligibility of their presented Certificate of Origin".   
Besides, under regulations in Articles 21 and 23 of the Customs Law and paragraph 2, Article 10 of 
Decree No.101/2001 on rights and responsibilities of  goods owners, customs declarants, agents 
performing customs procedures, goods owners or cust oms declarants (legally authorized by goods 
owners) are legally responsible for the legality of the Certificates of origin.    WT/ACC/VNM/32 
 Page 41 
 
 
 - Preshipment Inspection 
Question 90 We recognize that Viet Nam does not currently utilize a preshipment inspection service.  If one 
should be used in the future, however, for an y activity required for customs clearance, for 
importation or exportation, we would expect that  any fees be based on the cost of the service 
rendered and not on the value of the traded good being inspected or any other basis. 
We note that the bracketed commitment langu age suggests that Government of Viet Nam 
should take responsibility for ensuring that th e Preshipment Inspection Service observe WTO 
provisions, inter alia, in the areas of custom s valuation, import licensing, TBT and SPS, and 
that it provide the right of appeal to the Govern ment in the event of conflict with the trader.  
We endorse this position. 
Answer
: 
Viet Nam is not currently utilizing this service a nd has not adopted any legal documents in this 
regard.  If one should be used and a legal document should be adopted in the future, Viet Nam shall 
ensure that the  Preshipment Insp ection Service fully observe the WTO's provisions and will also take 
account of the comments from the WTO Members.   
- Anti-dumping, countervailing duties, safeguard regimes 
Question 91 We suggest that Viet Nam table its legislation in this area as soon as possible for WP review.  
We endorse a strong commitment by Viet Nam no t to use these measures until WTO consistent 
legislation is in place. 
Answer
: 
Viet Nam commits to fully comply with WTO's rules on anti-dumping, countervailing duty and 
safeguards.  Viet Nam has submitted to the Workin g Party the English version of the Ordinance on 
Safeguards.  The Ordinance on Anti-dumping Measures and the Ordinance on Countervailing 
Measures are now under formulation and are expected to be promulgated before Viet Nam's accession 
to the WTO.  Upon their promulgation, Viet Nam sh all forward them to the Working Party.  In the 
process of formulation, Viet Nam has sought the opinions and comments from all parties and people concerned.   
Question 92 
We welcome the commitment of Viet Nam not to  apply measures for safeguard, anti-dumping 
or countervailing duty purposes until legislation in conformity with the provision of these WTO 
Agreements has been implemented.   
Answer
: 
Viet Nam commits to fully comply with WTO's rules on anti-dumping, countervailing duty and 
safeguards.  Viet Nam has submitted to the Workin g Party the English version of the Ordinance on 
Safeguards.  The Ordinance on Anti-dumping Measures and the Ordinance on Countervailing 
Measures are now under formulation and are expected to be promulgated before Viet Nam's accession 
to the WTO.  Upon their promulgation, Viet Nam sh all forward them to the Working Party.  In the WT/ACC/VNM/32 
Page 42  
 
 process of formulation, Viet Nam has sought the opinions and comments from all parties and people 
concerned.   
Question 93 
We seek clarification of Viet Nam's intention to  use best endeavours in this area (paragraph 138 
of WT/ACC/SPEC/VNM/4) until legislation is introduced and notified to the WTO as set out in 
paragraph 139 of WT/ACC/SPEC/VNM/4.  Also the amendment proposed by Viet Nam to 
paragraph 139 would allow Viet Nam to appl y trade remedies without having relevant WTO-
consistent legislation in place.  Th is is not acceptable to this Member. 
Answer
: 
Viet Nam commits to fully comply with the WT O's rules on anti-dumping, countervailing duty and 
safeguards.  The Ordinance on Safeguards was pr omulgated in 1 September 2002 and its English 
version has been submitted to the Working Party.   Under the Legislation Program that has been 
submitted to the Working Party, Viet Nam sha ll issue the legal documents on anti-dumping and 
countervailing duty before the date of accession to the WTO.  As a result, the last sentence in 
paragraph 138 becomes unsuitabl e and should be deleted.   
B. EXPORT REGULATIONS - Export restrictions Question 94 Viet Nam's export controls do not appear consis tent with WTO provisions, particularly for rice 
and timber.  Viet Nam should work with the Sec retariat and delegations to revise its regime to 
find WTO consistent measures to achieve its policy objectives in these areas, and to bring it into 
WTO conformity. 
Answer
: 
Viet Nam only restricts the export of rough and sa wn timber exploited from natural forests for the 
purpose of environmental protection and sustainabl e development.  At present, Viet Nam is not 
applying any export restriction on rice.   
Question 95 Viet Nam has indicated (paragraph 149 of WT/ ACC/SPEC/VNM/4) that it intends to introduce 
a flexible control mechanism on production and trad e of rice.  We would be grateful if Viet Nam 
could expand this paragraph to include more inform ation on the detail of this proposal, its trade 
effects, and on issues such as tr ansparency, and WTO consistency. 
Answer
: 
At present, Viet Nam is not applying any export restriction on rice.    WT/ACC/VNM/32 
 Page 43 
 
 
 - Export subsidies 
Question 96 Paragraph 31 of WT/ACC/SPEC/VNM/4 states that Viet Nam will eliminate the export ratio 
requirement upon accession to the WTO.  Howev er this is not reflected in the drafting of 
paragraph 154. 
Answer
: 
Viet Nam understands that the revision of docum ent WT/ACC/SPEC/VNM/4 is the responsibility of 
the Secretariat.  However, we suggest that this  comment should be reconsidered as paragraph 154 
refers to certain export subsidies whereas export ra tio requirement linked to investment licensing is 
not regarded as an export subsidy.   
Question 97 We wish to confirm our support for the text of paragraph 155.  Viet Nam is not an LDC and is 
not entitled to these flexibilities as an automatic right.  If such views remain in the WP report 
text, we request that our views to the contrary also be recorded. 
Answer
: 
Viet Nam commits to eliminate subsidies continge nt upon localization ratios and the use of domestic 
over imported goods upon accession to the WTO.  Regarding subsides contingent upon export 
performance in the form of direct payments; Viet Nam shall remove this type of subsidies within five 
years from the date of accession to the WTO.   
As for subsidies in the form of investment incentiv es, Viet Nam seeks the to maintain this type of 
subsidies until its GNP per capita reaches US$ 1, 000 per annum.  The early phasing out of these 
subsides shall have a great impact on the investment environment of Viet Nam and its capability to 
attract foreign direct investment, particularly wh en countries with economic development level higher 
than Viet Nam are still maintain ing such investment incentives.  Given the GNP per capita only 
slightly exceeding US$ 400/year, Viet Nam hopes to  have the flexibility of the Members of the 
Working Party as accorded to other WTO Members.   
Question 98 Our position is that acceding countries should bring into WTO conformity any prohibited 
subsidies from the date of accession, for exam ple through the removal of export-contingent 
criteria.  We note that Viet Nam's positi on as expressed in paragraphs 156 and 171 of 
WT/ACC/SPEC/VNM/4 conflicts with the views ex pressed in paragraph 155, which we share.  
This will need to be resolved and we seek re consideration by Viet Nam of its position. 
Answer
: 
Viet Nam commits to eliminate subsidies continge nt upon localization ratios and the use of domestic 
over imported goods upon accession to the WTO.  Regarding subsides contingent upon export 
performance in the form of direct payments; Viet Nam shall remove this type of subsidies within five 
years from the date of accession to the WTO.   
As for subsidies in the form of investment incentiv es, Viet Nam seeks the to maintain this type of 
subsidies until its GNP per capita reaches US$ 1, 000 per annum.  The early phasing out of these WT/ACC/VNM/32 
Page 44  
 
 subsides shall have a great impact on the investment environment of Viet Nam and its capability to 
attract foreign direct investment, particularly wh en countries with economic development level higher 
than Viet Nam are still maintain ing such investment incentives.  Given the GNP per capita only 
slightly exceeding US$ 400/year, Viet Nam hopes to  have the flexibility of the Members of the 
Working Party as accorded to other WTO Members.   
C. INTERNAL POLICIES AFFECTING FOREIGN TRADE IN GOODS - Industrial policy, including subsidies Question 99 Viet Nam indicates that it plans to eliminat e import duty incentives based on local content 
requirements by the end of 2006.  A transition  for implementing the provisions of the SCM 
agreement is not automatically av ailable to acceding countries.  We would like to know why the 
transitions requested are necessa ry.  Are there legal issues? 
We associate ourselves with the position ta ken by members in paragraph 170, and seek 
Viet Nam's consideration of eliminating its prohibited subsidies. 
Answer
: 
Viet Nam commits to eliminate subsidies continge nt upon localization ratios and the use of domestic 
over imported goods upon accession to the WTO.  Regarding subsides contingent upon export 
performance in the form of direct payments; Viet Na m shall remove this type of subsidies within 5 
years from the date of accession to the WTO.   
As for subsidies in the form of investment incentiv es, Viet Nam seeks the to maintain this type of 
subsidies until its GNP per capita reaches US$ 1, 000 per annum.  The early phasing out of these 
subsidies shall have a great impact on the investme nt environment of Viet Nam and its capability to 
attract foreign direct investment, particularly wh en countries with economic development level higher 
than Viet Nam are still maintain ing such investment incentives.  Given the GNP per capita only 
slightly exceeding US$ 400/year, Viet Nam hopes to  have the flexibility of the Members of the 
Working Party as accorded to other WTO Members.   
- Technical barriers to trade, sa nitary and phytosanitary measures 
Question 100 In paragraphs 172-3 it is indicated that STAM EQ reports to the Ministry of Science and 
Technology on issues related to standardization, metrology and quality management. 
It is our understanding that Decision 356 of the MOST (25 March 2003) designated STAMEQ 
as the TBT Enquiry Point and National Notificati on authority for purposes of implementing the 
TBT Agreement –rather than WT/ACC/VNM/3/Add.1, annex 5 (12 March 1998).  Please 
confirm and, as appropriate, clarify the Factual Summary. 
Is STAMEQ a government agency? Does STAMEQ also provide advice on technical regulations (as defined in the WTO Agreement 
on Technical Barriers to Trade)?  WT/ACC/VNM/32 
 Page 45 
 
 
 Will/does STAMEQ and/or MOST advise other government agencies on compliance with the 
WTO obligations when they propose to deve lop and/or enforce technical regulations and 
associated conformity assessment procedures? (i.e., is STAMEQ and/or MOST have authority for regulatory oversight?) 
What is the process Viet Nam will use to identi fy and abolish or amend existing standards, 
technical regulations and conformity assessme nt procedures that it perceives as not in 
conformity with the WTO obligations?  For exam ple, has MOST or another authority requested 
agencies to review existing requirements by a certai n date to ensure they meet the tests of non-
discrimination and not posing an unnecessary barrier to trade?  Are agencies required to 
provide justifications and sufficient information at the time a proposed technical regulation or 
conformity assessment procedure is drafted so that meaningful review can be undertaken?  
What will the process be? 
How does Viet Nam define quality –it is impo rtant for Working Party members to understand 
whether this term is being used to cover techni cal regulations which aim to achieve objectives 
such as protection of human health, safety, or the environment, or does it refer to consumer 
preferences (a market demand)?  The distinctio n is important in knowing whether Viet Nam 
can meet TBT obligations to ensure technical reg ulations and conformity assessment procedures 
are not more trade restrictive than necessary. 
Clarification in response to these questions in the Factual Summary and future working party 
report would be useful. 
Answer
: 
Viet Nam appreciates the above comments and would like to Answer each specified questions as 
follows: 
The Directorate for Standards and Quality (STAMEQ) is a state administration body.   The Ministry of Science and Technology (MOST)  and STAMEQ are implementing and will continue 
this function when Viet Nam becomes a WTO member. 
With regard to technical regulations and conformity assessment process: during recent years the 
Government of Viet Nam has been promoting the program of legal documents review to ensure 
progressive consistency with the WTO obligations.  As a part of the system of legal documents, 
technical regulations were also subject to this program.  The Government's focal point for this 
program is the Ministry of Justice.  Legal documents drafted by a Ministry are sent to relevant Ministries including MOST and STAMEQ for comm ents before submitting to the Government. 
With regard to technical standards: the review of t echnical standards is a frequent work of Ministries.  
Normally this work is assigned to technical and standard committees to implement prior to 
publication. 
The term "quality" can be understood in a broad sen se.  The Ordinance on Goods Quality governs the 
state administration in quality through technical re gulations with the aim to protect human health, 
safety, the environmental and other legitimate  objectives as indicated in the TBT Agreement. 
Question 101 
We welcome the recent establishment of a nati onal TBT Enquiry Point and Notification Body 
but note that these are not ex pected to become operational until the end of 2005 (i.e. after WT/ACC/VNM/32 
Page 46  
 
 Viet Nam's intended date of accession).  Is there any practical means of bringing these bodies 
into operation earlier as we would expect them to  be fully operational by the date of Viet Nam's 
accession at the latest? 
Answer
: 
In its Action Plan submitted at the 7th session of th e Working Party, Viet Nam notified that its TBT 
Enquiry Point and National Notification Body shall operate and fully meet the indicated obligations 
by the end of 2005.  Viet Nam would like to further clarify this plan: 
Referring to the end of 2005, Viet Nam would like to imply its expected time of formal accession to 
the WTO.  In case Viet Nam joins the WTO earlier than the end of 2005, Viet Nam's TBT Enquiry 
Point and National Notification Body shall become fu lly operational prior to that date in order to 
accommodate Viet Nam's accession obligations.   
In order to ensure the implementation of the ab ove commitments, Viet Nam has been making efforts 
to enhance the operational capacity of these TBT E nquiry Point and National Notification Body to 
progressively meet the transparency obligation as regulated by the TBT Agreement.  Such 
enhancement implemented in terms of allocation and development of resources (human technical 
resources), co-ordination mechanism among relevant bodi es, etc. In this connection, besides domestic 
effort, Viet Nam needs assistance from the WTO members so that the TBT Enquiry Point and 
National Notification Body will fully meet the indicated provisions soon. 
Question 102 
In paragraph 174 reference is made to 2 current Ordinances and 2 prospective ones as the legal 
framework for standardization, metrology and quality control (the Ordinance on Metrology 
and the Ordinance on Goods Quality).  There is also a vague reference to "other related 
regulations such as Decrees or Decisions issued  by the Government or Prime Minister, and 
inter-Ministerial or Ministerial Circulars and/or Decisions issued by Ministries or Ministers." 
Could more specificity be provided to elaborate specifically what these related regulations and 
documents address (if there are others beyond those documents identified in 
WT/ACC/VNM/3/Add.1, Annex 5 (12 March 1998) and in the "elements" of a WP report? 
Do sub-central government authorities have the ability to develop and apply technical 
regulations in Viet Nam?  If so, please describe  their process for doing so and the relationship 
with central government authorities. 
It is our understanding that the Ordinance on Goods Quality requires the Government to 
maintain a list of goods subject to quality inspect ion, but that to date, the Government has not 
promulgated such a list.  Please confirm and clarify what this means in practice.  Does this mean 
that the Ordinance is currently not enforced? 
Answer : 
Other related regulations stated in paragraph 17 4 mean those issued by the Government, inter-
Ministries or Ministries in accordance with their competences to guide the implementation of the 
Ordinance on Metrology and Ordinance on Goods Qua lity ratified by the National Assembly Standing 
Committee.   
Local state bodies have the authority to issue lega l documents locally to im plement legal documents 
issued by the National Assembly, National Asse mbly Standing Committee and the Government.   WT/ACC/VNM/32 
 Page 47 
 
 
 Issuance procedure of the above legal documents by local state bodies is regulated in the Law on 
Enactment of Legal Documents. 
The Ordinance on Goods Quality stipulates that the G overnment shall issue a list of goods subject to 
mandatory quality inspection.  However, when this list has not been issued according to the 
Ordinance, the list that the former Ministry of Science, Technology and Environment (now Ministry 
of Science and Technology) has issued in Decision 117/2000/QD-BKHCNMT dated 26 January 2000, 
as indicated in paragraph 178 of WT/ACC/SPEC/VNM/4, is allowed by the Government to apply.    
Question 103 
Paragraph 175 indicates that draft technical regul ations are prepared by technical committees.  
It also states that Viet Nam is considering the issue of publication of draft standards and 
technical regulations. 
What is the role of the specific regulatory authority (e.g., Ministry of Health) in the technical 
committee?  Does the relevant Ministry (e.g., of Health) initiate the development of a technical regulation?  The establishment of the technical co mmittee?  At what point, and by whom, is it 
determined that a national standard will beco me compulsory (mandatory, i.e., a technical 
regulation, as noted in paragraph 176)? 
Who participates on technical committees?  What is the process for determining who 
participates?  Are there distinctions between technical committees developing voluntary standards and those developing mandatory technical regulations? 
How are interested parties curren tly made aware that work is underway to develop a standard 
or technical regulation?  Or that a draft exis ts?  More information is needed to understand 
what the existing system is in Viet Nam. 
What steps is Viet Nam undertaking to ensure that notices are published and an opportunity 
allowed for all interested parties to provide written comments on drafts? 
Answer
: 
Viet Nam would like to further clarify the technical committees as stated in paragraph 175: 
According to the Law on the Enactment of Legal Documents: 
− In respect to technical regulations issued by  the Government: the Government stipulates 
that it shall assign drafting body to establish drafting committees.  Drafting committee consists of relevant agencies and or ganizations, experts and scientists; and 
− In respect to technical regulations issued by ministries, ministerial level bodies: 
ministries, ministerial level bodies can estab lish committees or working groups to assist 
such drafting.  Draft technical regulations w ill be sent to relevant bodies, organizations 
and individuals for comments subject to thei r nature and content.  These committees or 
working groups will be dissolved upon completion of the assignment.     
For the drafting of national standards (Vie t Nam national standards - TCVN), STAMEQ has 
established 86 Viet Nam technical and standard  committees and 38 sub-committees.  Organization 
and operation of these committees and sub-committ ees follow the guidelines of the International 
Standardization Organization (ISO). WT/ACC/VNM/32 
Page 48  
 
 For the purpose of contribution of comments on draft standards from all parties concerned, in the past 
two years, STAMEQ has posted Viet Nam annual st andards preparation program on the Internet.  
This program lists the name of Viet Nam standard s scheduled to be issued , the basis to prepare 
standards, the name of committees and sub-co mmittees involved and scheduled time to issue.  
Interested parties may ask for draft standards for consideration and comment if necessary 
(http://www.vsc.org.vn)  
Viet Nam agrees to revise paragraph 175 of  WT/ACC/SPEC/VNM/4 according to the above 
statement. 
Question 104 
In paragraph 176 reference is made to an Ordinan ce which took effect on 1 July 2000 and which 
required goods to be subject to either quality certification or quality inspection. 
On what basis/criteria is a particular good determin ed to be subject to a particular procedure?  
Who makes this determination?  Is it specified in particular regulations? 
Is the "quality certification" referenced in this par agraph (and effective as of 1 July 2000) now 
being replaced by "safety certification" referen ced in paragraph 177?  (The sequence of 
information presented is difficult to follow - e. g., paragraph 163 reverts to a discussion of 1997 
inspection procedures). 
Answer
: 
According to the Ordinance on Goods Quality, the Government has the right to put a specific good 
into the list of goods subject to quality inspection, Mi nisters have the right to do the similar into the 
list of goods subject to quality certification. 
Quality certification in conformity with Viet Nam standards is carried out on voluntary and 
mandatory basis, with the former method mainly appl ied.  The quality certification stated in paragraph 
176 that is replaced by safety certification as stat ed paragraph 177 referred to mandatory method. 
Question 105 
Paragraph 177 indicates Viet Nam is developing  a safety certification system to replace a 
"mandatory product quality certification." 
Why is the new system necessary?  What problems is the changed system intended to address?  
What is its purpose and rationale? 
Is the introduction of a procedure for supplier's d eclaration of conformity part of the new safety 
certification system? 
Answer : 
This replacement is made to conform to the Or dinance on Goods Quality.  Accordingly, the goods 
requiring quality certification are those related to safety, hygiene and the environment. 
Suppliers' declaration on standards c onformity is a form of certification made by the first party and 
also focuses on safety, hygiene and the environment.  WT/ACC/VNM/32 
 Page 49 
 
 
 Question 106 
Paragraph 178 refers to mandatory quality inspection requirements established in 1997 for 
certain products, and that the list is under revisions.   
Are the revisions to this 1997 list being undert aken in conjunction with the changes in 
certification referenced above? 
Answer : 
As stated at the end of paragraph 113, mandatory quality inspection is currently carried out according 
to the list issued by the former Ministry of Science, Technology and Environment (now Ministry of Science and Technology) in the Decision No . 117/2000/QD-BKHCNMT dated 26 January 2000.  
This list replaces the list issued in 1997.   
Question 107 Paragraph 179 does not provide sufficient inform ation on whether and how Viet Nam accepts 
the results of conformity assessment procedures in other Members, as foreseen under Article 6.1 
of the TBT Agreement.   
Does Viet Nam recognize test data and/or certification conducted by bodies outside of 
Viet Nam? 
Answer
: 
There are currently many forms of acceptance of t esting results or certification undertaken by foreign 
organisations.   
In most of cases, testing results and certifications undertaken by foreign organisations are accepted by 
sellers and buyers. 
For the goods subject to quality inspection and certifi cation, their testing and certification results are 
acceptable under various forms, such as: 
− Bilateral and multilateral mutual recogniti on agreements to which Viet Nam and 
exporting countries are parties; 
− Unilateral acceptance by Viet Nam on forei gn laboratories or certifying organizations; 
and 
− Imports quality inspection (without doubt or complaint). 
Question 108 
Paragraph 180 contains information on Viet Nam's plans to fully comply with the TBT 
Agreement at the time of accession. 
What steps is Viet Nam currently taking to review and amend or withdraw, as appropriate, 
existing standards, technical regulations and co nformity assessment procedures to ensure their 
compliance with the WTO TBT Agreement?  (The la nguage in the "elements" draft relates only 
to new documents and is silent on existing requirements). 
It is our understanding that Viet Nam has no w identified MOST/STAMEQ as responsible for 
operating the inquiry point and acting as the no tification authority for the TBT Agreement.  WT/ACC/VNM/32 
Page 50  
 
 The information in the draft Elements document  however, indicates they will not be fully 
functional until the end of 2005.  What specific actions does Viet Nam need to take to operationalize this function?  
Similarly, what actions does Viet Nam need to undertake in order to comply with Article 4 and 
Annex 3 of the TBT Agreement –the provisions fo r the development, adoption and application 
of voluntary standards?  (Information indica tes 2006 for compliance with these obligations.) 
Answer
: 
As stated in paragraph 112 of this document, Viet Nam undertakes the re view of current legal 
documents including documents related to  technical barriers to trade.   
Currently, an Office for TBT Enquiry Point and Na tional Notification Body has been established in 
STAMEQ.  In order to ensure the Office's full im plementation of the obligations required by the TBT 
Agreement upon accession, Viet Nam is making its effo rt to enhance the Office's operation through 
consolidating organisational structure, devel oping resources (human and technical resources), 
establishing coordination mechanism among related bodies.  In this regard, besides internal efforts, 
Viet Nam also needs assistance fro m the WTO members so that its TBT Enquiry Point and National 
Notification Body may fully meet the indicated obligations as soon as possible.   
Regarding the implementation of the obligations  required in Article 4, Annex 3 of the TBT 
Agreement, Viet Nam is currently taking appropr iate measures, such as completing the committees 
and sub-committees' operation, enhancing capacity in  preparing standards for STAMEQ.  With these 
efforts, Viet Nam's national standardization agency  may notify on its acceptance of the Code of Good 
Practice for the preparation, adoption and implemen tation of standards (Annex 3 of the Agreement) 
upon accession to the WTO.   
Question 109 
A number of government decisions and decrees a re referenced in the "elements" document.  
Please provide a copy of these, if not alrea dy done so, to the WTO Secretariat for the 
information of Working Party members. 
Answer : 
Viet Nam provides copies of the Decrees and Decisions mentioned in the document 
WT/ACC/SPEC/VNM/4 together with this document. 
Question 110 
Concerning the Law of Customs, Article 7 pa r. 1 point b, we would welcome further 
information on the goods for which a written certification of goods quality in an inspection 
registration made by a goods evaluation organization is required. 
Answer : 
Inter-Circular No. 37/2001/TTLT/BKHCNMT-TCHQ issu ed by the former Ministry of Science, 
Technology and Environment and General Depa rtment of Customs on 28 June 2001 guides the 
quality inspection and customs procedure for imported goods subject to state quality inspection.  This 
circular stipulates that goods owner has legal r esponsibility for importing goods with the specified 
quality and must register for quality inspection w ith inspecting body (registration form provided in 
Inter-Circular No. 37) when importing goods subject to  state mandatory quality inspection.  Within  WT/ACC/VNM/32 
 Page 51 
 
 
 one working day since the time of customs clearance,  goods owner must present the declared goods in 
its original situation with the cleared customs doc uments and other documents pursuant to regulations 
by inspecting body at the registered inspection place.  Within one working day from the time of 
receiving goods owner's application, inspecting bod y must verify registration for state quality 
inspection or issue notification of inspection ex emption for goods owner's submission to customs 
agency when conducting importation procedure. 
The list of imported and exported goods subject to state quality inspection is implemented according 
to the Decision No. 117/2000/Q Đ-BKHCNMT issued by the former Minister of Science, Technology 
and Environment on 26 January 2000.  The list includes names and HS codes of goods subject to state quality inspection under the competence of speciali zed inspecting bodies of the former Ministry of 
Science, Technology and Environment; Ministries of  Health, Agriculture and Rural Development; 
Industry; Fisheries. 
Question 111 
Regarding "Action Plan for the Implementation  of the WTO Agreement on Technical Barriers 
to Trade" WT/ACC/VNM/24/Rev.1 (4 Novemb er 2003), please clarify on what basis this 
document was prepared.  It does not appear th at Viet Nam was guided by the categories on 
'commitments' in WT/ACC/8, "Technical Note on the Accession Process" which contains 
Checklist of Illustrative SPS and TBT Issues for Consideration in Accessions.  It would be 
useful if a future revision of Viet Nam's Acti on Plan took into consideration the specific 
commitments in that checklist. 
Answer
: 
Viet Nam's Action Plan to implement the TBT Agreement has been prepared based on 6 basic 
elements stated in Checklist of Illustrative SPS and TBT Issues for Consideration in Accessions.  
Viet Nam encloses herewith the revised Action Plan.   
Question 112 
The Action Plan indicates two additional legal  documents to be prepared: the Ordinance on 
Food Safety and Hygiene and the Ordinance on  Standardization.  Please clarify how these 
documents are anticipated to change current re quirements and what new requirements will be 
imposed as a result of them.  (It would seem the Ordinance on Food Safety and Hygiene is likely 
to be most relevant for SPS).   
Answer : 
The Ordinance on Food Hygiene and Safety was pr omulgated in 2003.  Although mainly addressing 
SPS issues, it also relates to TBT, for instance, with respect to the provisions on preparation of 
national standards on foods.  Hence, this Ordinance is also mentioned in the Elements of Draft Report 
of the Working Party.   
Question 113 
Concerning other documents (ordinances, decre es, decisions, etc.) Viet Nam foresees as 
necessary to ensure implementation and ongo ing compliance with the TBT Agreement: are 
these listed comprehensively in VNM/31 or any other documentation? WT/ACC/VNM/32 
Page 52  
 
 Answer
: 
Document WT/ACC/VNM/31 lists the legal documents to be issued by the National Assembly and 
National Assembly Standing Committee for furt her implementation of the TBT Agreement. 
- Sanitary and Phytosanitary Measures 
Question 114 
We would appreciate more information concerning Viet Nam's current SPS requirements for 
the importation of meat and poultry, live plants, horticultural products and grain. 
We would also like to know more about techni cal requirements for the certification, labelling, 
and packaging of food products. 
Answer : 
Viet Nam's current SPS requirements:  Meat importation: in general, the requirements of Viet Nam on 
meat importation are based on the Recommendations of OIE, Regulations of CODEX and agreements 
between Viet Nam and exporting countries.  P oultry meat importers must obtain the sanitary 
certificate issued by National Veterinary Author ity of the exporting country which certifies that: 
− the exporting country is free from Avian influenza; 
− meat is slaughtered from healthy poultry in Disease Free Zones; 
− the poultry is anti-mortem and post-mortem examined and free from every infectious 
disease; and 
− meets veterinary hygiene standards,  free from harmful micro-organism. 
Plants importation: commodities imported for consum ption (agricultural products and grain) must: 
− be free from Plant quarantine pests of Viet Nam; and 
− obtain Phytosanitary Certificate of the exporting country. 
Live plants imported for propagation or planting must: 
− have quarantine permit issued Vietnamese competent authority; 
− have Phytosanitary Certificate of exporting country; 
− be free from plant quarantine pests of Viet Nam; and 
Technical requirements for the certification of food products:  Viet Nam applies certification procedures based on Viet Nam's Standards and international standards 
now.  Viet Nam also certifies the quality management system based on ISO 9000, Good 
Manufacturing Practices (GMP) and Hazard Analysis  and Critical Control Point (HACCP) for food 
producing units. 
The labelling and packaging of food products is impl emented according to the following regulations: 
Decision No. 178/1999/QD-TTg dated 30 August 1999 of the Prime Minister promulgating Regulation on labelling of domestically circul ated and imported/e xported goods; Circular 
No. 34/1999/TT-BTM dated 15 December 1999 guiding the implementation of the above Decision.  WT/ACC/VNM/32 
 Page 53 
 
 
 Question 115 
We would appreciate an update from Viet Nam on progress towards establishing the SPS 
Enquiry Point, which is expected to be fully operational by the end of 2004 (paragraphs 188 and 189 of WT/ACC/SPEC/VNM/4 refer). 
Answer
: 
To establish the SPS Enquiry Point under Article 7 and Annex B, the Ministry of Agriculture and 
Rural Development (MARD) was assigned by the Government of Viet Nam to be a National 
Notification Body and Enquiry Point.  Necessary procedures for the establishment of the Office are 
now under process of Government's approval.  Th e Office will be established by the end of 2004 and 
will become fully operational upon WTO accession. 
Question 116 Viet Nam is seeking a two year transition aft er accession to implement the SPS Agreement fully 
(paragraph 190 of WT/ACC/SPEC/VNM/4).  Viet Na m will need to commit to full application 
by the date of accession. 
Answer
: 
Viet Nam would like to propose a transitional period up to 1 July 2008 for 3 among 11 main 
obligations of the WTO's SPS Agreement.  Viet Na m will fully comply with the main obligations 
under the SPS Agreement such as transparency, no n-discrimination, risk assessment etc. upon its 
accession.  Please see also the revised Action Pl an on the implementation of the SPS Agreement 
submitted together with this document. 
Question 117 
Paragraph 190: As indicated in Column 2 of  WT/ACC/VNM/11/Rev.3 (Action Plan for the 
Implementation of the WTO Agreement on Application of Sanitary and Phytosanitary Measures), the time frame for this obligatio n to implement the SPS agreement is three years 
from the date of accession.  We have noted its reasons for requesting a transition period, but we would like to ask Viet Nam to explain how the SPS measures, if any, will not work as a barrier 
to trade during any transition period that Viet Nam may be allowed to enjoy. 
As indicated in Column 6 of Viet Nam's SPS Action Plan, regarding the continued signing of 
bilateral agreements and/or MOUs on SPS and tec hnical standards, we would like to point out 
that SPS measures in compliance with the int ernational standards should be accepted, no 
matter what bilateral agreements or MOUs have or have not been signed. 
Answer
: 
As stated in document WT/ACC/VNM/11/Rev.4 (the revised Action Plan for implementation of the 
SPS Agreement), Viet Nam needs the technical assistance from the WTO members in terms of 
enhancing capacity, training, additional supply of eq uipment and further adjustments, amendment and 
issuance of new standards on SPS in order to ensu re the consistency of these standards with the 
international practices (CODEX, OIE, IPPC) a nd the WTO Agreement on SPS.  SPS measures, when 
applied, are not and will not create barriers to trade during transitional period. 
With regard to the continuance of signing of  bilateral agreements and/or memorandum of 
understanding on SPS and technical standards as stated  in Column 6, Viet Nam's Action Plan for WT/ACC/VNM/32 
Page 54  
 
 implementation of the SPS Agreement, Viet Nam en sures that all measures and technical standards 
related to SPS comply with international standards as well as bilateral agreements or memorandum of 
understanding that were signed. 
Question 118 
While Viet Nam's SPS Action Plan in its current revised format (WT/ACC/VNM/11/Rev.3) 
provides a reasonable framework, it does not direct ly cover some key SPS Agreement articles.  
In terms of Articles 5.1 and 2.2, we would appreciate an explanation of how Viet Nam will handle situations where an international standard  does not exist or where the level of protection 
given by that international standard does not m eet Viet Nam's appropriate level of protection: 
we note that in such situations Viet Nam woul d need to undertake a risk analysis to validate 
each measure (Article 5.1) or to validate that  there is not sufficient science available to have 
anything in place other than a provisional measure (Article 5.7). 
Answer
: 
Please see also the revised Action Plan on th e implementation of the SPS Agreement submitted 
together with this document. 
Question 119 Could Viet Nam please clarify what appears to be a contradiction between the Answer provided 
to Question 84 (WT/ACC/VNM/29) and the response provided to Question 85.  The response to Question 84 states that:  "Paragraph 171 of th e Factual Summary already confirms that 
standards applied by Viet Nam are in conformity with international standards, if they exist, and 
with the SPS Agreement."  In the response to the Question 85 Viet Nam indicates that: 
"Viet Nam has been a member of some internatio nal SPS organizations such as Codex, OIE etc. 
It is in the process of formulating and adapting its national standards in accordance with the standards set out by these international organizations." 
Answer
: 
Standards of SPS now applied in Viet Nam are in c onformity with international ones, but generally 
lower than international level in order to suite the Viet Nam's production conditions.  Viet Nam is 
trying to establish the national standards achieving the equivalent level of protection as the international ones, but at the same time can be implemented in Viet Nam. 
- Trade-related investment measures 
Question 120 Viet Nam has committed itself to removing th e 80 per cent export ratio requirement upon its 
accession.  Paragraph 194 indicates that, for forei gn investors, the number of products subject 
to export requirement had been reduced to 14.  Such kind of requirement was otherwise 
accepted by investors on a voluntary basis.  We a ssume that the Government of Viet Nam, as a 
general approach, will also remove such requirement accepted on a voluntary basis.   
Specifically, we would appreciate confirmation fr om Viet Nam that any such kind of export 
requirement listed on an investment licence, whet her it is issued by the central government or 
by the local authorities, will also be eliminated at the same time.    WT/ACC/VNM/32 
 Page 55 
 
 
 Answer : 
In respect of products not included in the lis t attached to the Decision No. 718/BKH-QD dated 
7 December 2001 issued by the Ministry of Planni ng and Investment, foreign invested enterprises 
have the right to determine their markets by them selves.  Viet Nam's competent authorities will not 
apply neither mandatory nor voluntary export regu lation for enterprises producing the above products.  
The content of paragraph 194 of WT/ACC/SPEC/VNM/4  related to "voluntary export" requirement 
has been removed to reflect precisely Vietnamese law on this issue.   
Immediately after its accession to  the WTO, Viet Nam will remove mandatory export requirement 
stipulated in current legal documents as well as in investment licenses issued by central and local 
competent authorities.    
Question 121 With respect to Viet Nam's requ est to maintain local content requirements until the end of 2006, 
we note that the transition period for such  requirements for developing countries under the 
TRIMs agreement expired at the end of 2000.  This should be reflected in the draft report. 
Answer
: 
The above comment does not reflect fully Viet Na m's commitments submitted at the last Working 
Party Meeting in December 2003.  At this session, Viet Nam has confirmed its full implementation of 
the obligations under the TRIMs Agreement upon its accession. 
Question 122 
Has the IMF indicated that Viet Nam has a Ba lance of Payments problem that could be 
addressed by maintaining TRIMs? 
We reserve on Viet Nam's request. Answer
: 
Viet Nam commits that it will fully implemen t the provisions of the TRIMs Agreement upon 
accession. 
Question 123 
To avoid problems we faced in the past, we would welcome a commitment by Viet Nam not to 
enforce contracts that impose requirements wh ich are incompatible with TRIMs (see WTO 
Panel Report on "India-Measures affecting the automotive sector" 5WT/DS146-175 of December 2001). 
Answer
: 
The current contract laws of Viet Nam do not violate the obligations under the TRIMs Agreement and 
are not of the same manner as "measures affecting au tomobile industry" as stated in the Indian case. WT/ACC/VNM/32 
Page 56  
 
 - State trading entities 
Question 124 We thank Viet Nam for its notification of State Trading Enterprises in 
WT/ACC/VNM/14/Add.1  Can you confirm, per paragraph 202, that Viet Nam has notified each of the STEs falling within the scope of Article XVII?  
Have any STEs notified earlier in the accession process had their special status revoked?  If so 
who and why. 
Answer
: 
Viet Nam has notified the entire list of state trad ing enterprises under the coverage of Article XVII 
(WT/ACC/VNM/14/Add.1) as well as details on their privileges and operation.   
Question 125 We note that Viet Nam's notifications (WT/ACC/VNM/14 and WT/ACC/VNM/14/Add.1) of its 
state trading enterprises (STEs) do not include  several major state-owned enterprises involved 
in agricultural trade listed in Appendix 4 of  WT/ACC/VNM/3/Add.1.  For example, the 
Viet Nam National Coffee Corporation (VINACAFE ), the Viet Nam National Tea Corporation 
(VINATEA), and the Viet Nam Dairy Products Company (VINAMILK), are not included in the 
notification.  However these thre e entities, as well as other significant trading entities, are 
currently listed on the Viet Nam Trade Information Centre website (www.asemconnectvietnam.gov.vn) as state enterprises. 
Can Viet Nam clarify why it has judged that these three entities, as well as other agricultural 
entities included in Appendix 4 of WT/ACC/VNM/3/Add.1 and listed on the Viet Nam Trade 
Information Center website, do not fall und er the Article XVII notification requirements? 
Answer
: 
The term "State enterprise" is normally used in Vi et Nam to refer to "state-owned enterprise".  The 
concept is totally different from "state trading enterp rises" as stipulated in  Article XVII of the GATT.  
Viet Nam confirms that the 3 above-said enterpri ses are not state trading enterprises within the 
meaning of Article XVII of the GATT.  Furthe rmore, the Viet Nam Dairy Products Company 
(VINAMILK) has been equitized and, as a result, is no longer a state-owned enterprise.  For the sake 
of transparency, we enclose herew ith the information in the format of the state trading questionnaire 
on the above 3 enterprises for the Working Pa rty's reference.  Please see Annex 2. 
- Government procurement 
Question 126 
We urge Viet Nam to give sympathetic consideration  of the benefits that could flow from joining 
the WTO Agreement on Government Procurement.  As a first step towards accession we urge Viet Nam to become an observer to the WTO Committee on Government Procurement when 
Viet Nam joins the WTO. 
We also encourage Viet Nam to identify those areas where technical assistance in implementing 
the agreement is needed.  A dialogue with Parties to the agreement on these issues will better  WT/ACC/VNM/32 
 Page 57 
 
 
 enable the Committee to address su bstantive areas of difficulty rel ated to Viet Nam's eventual 
GPA accession. 
Answer : 
Viet Nam has been making efforts to improve  the legal framework towards enhancing the 
transparency of government procurement, and to wards harmonising tender process and procedures in 
accordance with international practices.  Recently , the Ministry of Pla nning and Investment has 
launched a separate website on pr ocurement for the purpose of publishing information on bidding 
opportunities, bidders as well as bidding procedures and process. 
At present, Viet Nam has not been able to st udy and understand the pr ovisions of the WTO's 
plurilateral Agreement on Government  Procurement.  However, Viet Nam is willing to cooperate with 
the Working Party's Members who may wish to help  Viet Nam to understand more clearly about this 
Agreement. 
- Transit 
Question 127 Viet Nam has addressed the issue of transit fees and their consistency with Article VIII of the 
GATT, but not the more fundamental problem of providing transit to trade of other WTO 
members as provided for in Article V.  The restri ctions and requirements in place do not appear 
consistent with the provisions of the Article.  How will Viet Nam bring its regime in this area 
into conformity with WTO. 
Answer
: 
When making in-land or water way transportation of goods in transit, goods owner is only required to 
apply for a transit licence issued by the Ministry of  Trade in case the goods in transit are subject to 
import or export prohibitions or are round or sawn timber.  Other goods are allowed to transit once 
customs procedures are completed.  Viet Nam does not think that these regulations violate Article V of the GATT and, therefore, shall fully observe WTO's rules on transit upon accession. 
Question 128 
We would welcome further justification for the transit procedure and the conditions to grant 
transit permits. 
Answer
: 
When making in-land or water way transportation of goods in transit, goods owner is only required to 
apply for a transit licence issued by the Ministry of  Trade in case the goods in transit are subject to 
import or export prohibitions or are round or sawn timber.  Other goods are allowed to transit once 
customs procedures are completed.   
- Agricultural policies 
Question 129 The amendments proposed by Viet Nam in December 2003 to paragraph 233 of 
WT/ACC/SPEC/VNM/4 are not acceptable to this Member.  We urge Viet Nam to bind export 
subsidies at zero.  Export subsidies are the most tr ade distorting type of subsidies and are costly WT/ACC/VNM/32 
Page 58  
 
 to administer and provide; other green box measu res can be used as an alternative to support 
producers; in the current Doha round of negotia tions WTO members have agreed to eliminate 
export subsidies. 
Answer
: 
Viet Nam commits to progressively reduce agricu ltural export subsidies according to the following 
schedule:  
− to eliminate export subsidies for coffee upon accession; and 
− export subsidies for other products to be phased  out within three years from the date of 
accession to the WTO.   
Since these are products that some WTO Members al so maintain export subsidies, Viet Nam hopes 
that it may reserve these subsidies in a short-term period.  Viet Nam would appreciate to have the WTO Members' agreement to eliminate agricultural e xport subsidies referred to in the question.  We 
would note that Viet Nam had committed to be abide by WTO rules (including Doha Round's 
agreement) on agricultural export subsidies, and woul d feel difficult to understand the request in light 
of the information referred to in the question. 
- Trade in civil aircraft  
Question 130 
We suggest that Viet Nam join the Agreement on Trade in Civil Aircraft, including the duty 
free treatment of imported aircraft and parts, to  facilitate the maintenance of good air services 
and support in Viet Nam, as part of the serv ices infrastructure necessary for development and 
growth.  Viet Nam should join to th e Agreement upon accession to the WTO. 
Answer
: 
Viet Nam understands that participation in the Ag reement on Trade in Civil Aircraft is not an 
obligation.  Viet Nam, however, will consider assistance from other countries in understanding this 
matter, including the developmental impacts of the Agreement. 
V. TRADE-RELATED INTELLECTUAL PROPERTY REGIME 
- General Question 131 
We are aware that TRIPS enforceme nt will take some time in Viet Nam, but we are pleased to 
see that the foundation for it is being laid.  We believe that Viet Nam is committed to eventual 
full implementation, and would seem to be allo cating resources and energy to the issue (and 
taking advantage of almost all offered assistance). 
Viet Nam is clearly engaged on this issue at the political level, and local police officers, customs 
officials, and local judges are all engaged in an  effort to fully implement WTO obligations.  We 
look forward to continued progress in this area and will be monitoring Viet Nam's efforts going 
forward. 
That said, Viet Nam is not yet fully TRIPS compliant, as indicated in the Answer
s given to our 
questions from the last meeting, in WT/ACC/VNM/29.  We appreciate the summary of how  WT/ACC/VNM/32 
 Page 59 
 
 
 Viet Nam intends to proceed, contained in VNM/21/Rev.1, their intention to promulgate 
additional provisions to become TRIPS comp liant well documented.  Full assessment of 
Viet Nam's TRIPS compliance must await review of the additional legislation (circulars, 
amended decrees).  In this regard, and on a pr iority basis to promote clarity, we seek a 
consolidated list of IPR laws and regulations in this area.   
Of priority interest to us are Viet Nam plans, ou tlined in VNM/31, to comply with Article 9 of 
TRIPS (which requires compliance with the Be rne Convention) by late 2005.  We have a 
bilateral commitment from Viet Nam on this i ssue, and look forward to its resolution on a 
priority basis.  We consider timely implementati on of our bilateral commitments with Viet Nam 
as a bellweather for its readiness to adhere to th e rules of the WTO.  Given this, we are not 
prepared at this time to consider further transitions. 
Answer : 
List of laws and regulations on or relating to intellectual property:  Laws and Regulations on 
Protection: 
General provisions: 
− The Civil Code of 1995 (Part Six: provisions on industrial property and copyright) 
Provisions on copyright: 
− Decree 76/CP of 29 November 1996 of the Government guiding the implementation of 
provisions on copyright protection; and 
− Circular 27/2001/TT-BVHTT of 10 May 2001 of the Ministry of Culture and Information 
guiding the implementation of the Decree No. 76/CP of 29 November 1996 and the Decree No. 60/CP of 6 June 1997 of the Government guiding the implementation of 
provisions on copyright of the Civil Code. 
Provisions on industrial property: 
− Decree 63/CP of 24 October 1996 of the G overnment on detailed provisions concerning 
industrial property, as amended and supplemented by the Decree No. 06/2001/ND-CP of 1 February 2001 of the Government; 
− Circular No. 3055/TT-SHCN of 31 December 1996 of the Ministry of Science, 
Technology and Environment guiding the implementation of industrial property 
procedures provided for in Decree No. 63/CP of 24 October 1996 of the Government on 
detailed provisions concer ning industrial property; 
− Circular No. 29/2003/TT-BKHCN of 5 November 2003 of the Ministry of Science and 
Technology guiding the implementation of pr ocedures for establishing industrial property 
rights to industrial designs; 
− Circular No. 30/2003/TT-BKHCN of 5 November 2003 of the Ministry of Science and 
Technology guiding the implementation of pr ocedures for establishing industrial property 
rights to inventions/utility solutions; 
− Circular No. 23/TC-TCT of 9 May 1997 of th e Ministry of Finance on industrial property 
fees and charges; 
− Decree No. 54/2000/ND-CP of 3 October 2000 of the Government on the protection of 
industrial property rights to trade secrets,  geographical indications, trade names and the 
protection of rights against industrial pr operty - related unfair competition; and WT/ACC/VNM/32 
Page 60  
 
 − Decree No. 42/2003/ND-CP of 2 May 2003 of the Government on the protection of 
industrial property rights to layout designs of semiconductor integrated circuits 
Provisions on plant varieties: 
− Decree No. 13/2001/ND-CP of 20 April 2001 of the Government on the protection of new 
plant varieties; and 
− Circular No. 119/2001/TT-BNNPTNT of 21 December 2001 of the Ministry of 
Agriculture and Rural Development guidi ng the implementation of the Decree 
No. 13/2001/ND-CP of 20 April 2001 of the Government on the protection of new plant 
varieties. 
Laws and Regulations on Enforcement:  Civil procedures
 
General provisions: 
− The Ordinance of 1989 on procedures for judgment of civil cases  
Provisions on copyrights: 
− Joint Circular No. 01/2001/TTLT-TANDTC-VKSNDTC-BVHTT of 5 December 2001 of 
the Supreme People Court, the Supreme People Prosecution Institute and the Ministry of 
Culture and Information guiding the application of certain provisions of the Civil Code in judgement of copyright cases; and 
− Official letter No. 97-KHXX of 21 August 1997 of the Supreme People Court on 
jurisdiction of disputes concerning copyrights and industrial property. 
Administrative procedures:
 
General provisions: 
− The Ordinance of 2002 on procedures for j udgement of administrative violations; 
− The Customs Law of 2001; and 
− Decree No. 101/2001/ND-CP of 31 December 2001 of the Government on detailed 
provisions for the implementation of the Customs Law 
Provisions on copyrights: 
− Decree No. 31/2001/ND-CP of 26 June 2001 of the Government on administrative 
measures against violations in the field of culture and information; and 
− Joint Circular No. 58/2003/TTLT-BVHTT-BTC of 17 October 2003 of the Ministry of 
Culture and Information and the Ministry of Finance guiding the copyright protection of 
exportations and importations at customs offices 
Provisions on industrial property: 
− Decree No. 12/1999/ND-CP of 6 March 1999 of the Government on administrative 
measures against violations in the field of industrial property; 
− Circular No. 825/2000/TT-BKHCNMT of 3 May 2000 of the Ministry of Science, 
Technology and Environment guiding the implementation of the Decree  WT/ACC/VNM/32 
 Page 61 
 
 
 No. 12/1999/ND-CP of 6 March 1999 of the Government on administrative measures 
against violations in the field of industrial property, as amended and supplemented by the 
Circular No. 49/2001/TT-BKHCNMT of 14 September 2001 of the Ministry of Science, Technology and Environment; 
− Directive No. 31/1999/CT-TTg of 27 October 1999 of the Prime Minister on combating 
the production of and trading in counterfeiting goods; and 
− Joint Circular No. 10/2000/TTLT-BTM-BTC- BCA-BKHCNMT of 27 April 2000 of the 
Ministry of Trade, the Ministry of Finance,  the Ministry of Public Security and the 
Ministry of Science, Technology and Envi ronment guiding the implementation of the 
Directive No. 31/1999/CT-TTg of 27 October 1999 of the Prime Minister. 
Criminal procedures: 
− Criminal Code of 1999 (Section 131 - on copyrights, Section 156, 157, 158 - on 
counterfeits, Section 170, 171 - on industrial property); and 
− Criminal Procedures Code of 1988. 
Regarding to the compliance with Berne Conventio n: The competent authorities of Viet Nam are 
working on the procedures for participation to the Berne Convention. 
Question 132 
Viet Nam has indicated that it intends to take the following actions: - join the UPOV, Rome draft and Berne Conventions in 2003 
- promulgate additional legislation to address concerns as follows: 
− A draft amendment to Government Decree No. 76/CP of 26 November 1996 on the 
Implementation of Certain Provisions Concerning Copyright of the Civil Code was in preparation, but the timeframe for adoption of the amendment had yet to be determined 
− protection for encrypted signals from broadcast organizations under appropriate 
legal documents (no date) 
− a Circular substituting Circular No 3055/TT-SHCN on regulations concerning 
patent applications for micro-organisms in 2003 
− a Joint Circular with regulations on the reversal of the burden of proof in process 
patent cases in 2003 (or put in the Civil Procedures Code expected to be promulgated in 2004) 
− a Legal document on guidance on the impl ementation of Decree No. 54/2000/ND-CP 
on protection of undisclosed test data (no date given) 
− a Circular on the implementation of Decree No. 63/CP, as amended by Decree No. 
06/2001/ND-CP on procedures for recognition of well-known marks; 
− a Decree on Amendment of Decree No. 12/ 1999/ND-CP to simplify administrative 
enforcement and establish procedures for in camera proceedings (by the end of 
2004) 
− a Circular  guiding the implementation of Decree No. 54/2000/ND-CP on the 
protection of industrial property rights to business secrets, geographical indications, 
trade names and on protection against unfair competition in respect of industrial property; WT/ACC/VNM/32 
Page 62  
 
 − a Circular guiding the implementation of Decree No. 42/2003/ND-CP on protection 
of industrial property in respect of layout designs of semiconductor integrated circuits; 
− a Circular on border enforcement of industrial property rights; and 
− a Circular on guiding the  judgment of cases related to industrial property rights.  
Also, Viet Nam has stated that it will "consider" taking the following steps: 
− promulgation of provisions to apply TRIPS Articles 31(f), (k) and (l); 
− amending Circular 23/TC-TCT on fees (to remove discrimination); and 
− protecting temporary copies and pre-program  signals from broadcast organizations 
in the process of improvement of the legal system on copyright and related rights. 
− In reply to concerns that a consolidated set of IP laws (including Codes, Laws, 
Ordinances, and Decrees) is needed to en sure transparency, the representative of 
Viet Nam stated that a plan of issuing an Intellectual Property Code is being studied and considered instead of issuing various documents guiding the implementation of 
the Civil Code, and that Viet Nam is aware of the problems that may result from the 
promulgation of this Code and will use care to ensure unity and transparency of the 
legal system. 
We would like to know what is the status of th e draft Circulars and other actions planned that 
are cited above?  If these actions have been comp leted, please provide copies of relevant legal 
documents.  If not, please specify timeframe for taking the action.  Has Viet Nam taken 
decisions with regard to the actions that it will "consider" taking that are cited above? 
Answer
: 
Regarding to the participation in inte rnational intellectual property treaties: 
The UPOV Convention: At a request of Viet Nam of 18 February 2003, on 11 November 2003 the UPOV Council made a 
conclusion on the compliance of Decree No. 13/2001/ND-CP of 20 April 2001 on the protection of new plant varieties with the Instrument 1991 of the UPOV Convention. According to the conclusion, 
most of the substance of the 1991 Act are inco rporated in main provisions of the Decree 
No. 13/2001/ND-CP and only some clarifications  or amendments are needed. Viet Nam has 
incorporated the provisions of the Decree No. 13/2001/ND-CP taking into account the recommendations of the UPOV Council in the Ordina nce on Plant variety issued by the National 
Assembly Standing Committee on 24 March 2004 (which has higher legal effect than Governmental 
Decree). Following the promulgation of the Ordi nance, the procedures for accession to the UPOV 
Convention will be continued.  
The Berne Convention, the Rome Convention: The participation to the Berne Convention is being 
considered by the state competent authorities. 
Regarding to the preparation and promulgation of  laws and regulations:  the following legal 
documents were promulgated in 2003: 
− Circular No. 29/2003/TT-BKHCN of 5 November 2003 of the Ministry of Science and 
Technology guiding the implementation of pr ocedures for establishing industrial property 
rights to industrial designs (substituting respective provisions of Circular No. 3055/TT-SHCN of 31 December 1996);  WT/ACC/VNM/32 
 Page 63 
 
 
 − Circular No. 30/2003/TT-BKHCN of 5 November 2003 of the Ministry of Science and 
Technology guiding the implementation of pr ocedures for establishing industrial property 
rights to inventions/utility solutions (subs tituting respective provisions of Circular 
No. 3055/TT-SHCN of 31 December 1996), including provisions on application and examination in respect of micro-organisms.  
The other drafts of legal documents are being prepar ed and expected to be submitted for promulgation 
in the year 2004, will include: 
− Copyrights: a draft of amended Decree No. 76/CP dated 26 November 1996 of the 
Government on implementation of a number of  regulations concerning copyright in the 
Civil Code in order to implement relevant provisions of the TRIPS Agreement is being 
prepared. It is, however, not clear as when this draft will be adopted. 
Industrial property: 
− A Circular of the Ministry of Science and Technology guiding the implementation of 
procedures for establishing industrial property rights to trademarks and appellation of 
origins (substituting the respective provisions of Circular No. 3055/TT-SHCN of 31 December 1996); 
− A Circular of the Ministry of Science and Technology guiding the implementation of 
procedures for establishing industrial property rights to layout designs of semiconductor integrated circuit (implementing Decree 42/2003/ND-CP of 2 May 2003); 
− A Circular of the Ministry of Science an d Technology guiding the implementation of the 
Decree No. 54/2000/ND-CP of 3 October 2000 of the Government on the protection of industrial property rights to trade secrets,  geographical indications, trade names and the 
protection of rights against industrial pr operty - related unfair competition; and 
− A Circular of the Ministry of Finance on industrial property fees and charges (substituting 
the Circular No. 23/TC-TCT of 9 May 1997). 
Plant variety: 
− An Ordinance on Plant Variety. 
Civil enforcement: 
− A Civil Procedures Code; 
− A Decree of the Government on civil remedies in the field of intellectual property;  
− A joint Circular of the Supreme People Court, the Supreme People Procuracy and the 
Ministry of Science and Technology guiding the judgement of cases related to industrial 
property rights. 
Administrative enforcement: 
− A Decree of the Government amending th e Decree No. 12/1999/ND-CP of 6 March 1999 
of the Government on administrative measures ag ainst violations in the field of industrial 
property; 
− A Circular of the Ministry of Science and Technology amending the Circular 
No. 825/2000/TT-BKHCNMT of 3 May 2000 of the Ministry of Science, Technology and Environment guiding the implementation of the Decree No. 12/1999/ND-CP of 6 March 1999 of the Government on administ rative measures against violations in the WT/ACC/VNM/32 
Page 64  
 
 field of industrial property, as amended by  the Circular No. 49/2001/TT-BKHCNMT of 
14 September 2001 of the Ministry of Science, Technology and Environment; 
− A joint Circular of the Ministry of Science and Technology and the Ministry of Finance 
on border control measures in respect of industrial property rights for imports and 
exports; and 
− A joint Circular of the Ministry of Trade, the Ministry of Science and Technology and the 
Ministry of Culture and Information on me asures of market control and procedures for 
handling violations of intellectual propert y rights in production, trade and service 
activities.  
Regarding to issues "considered": 
− So far, no compulsory licence has been gran ted in Viet Nam. Although the conditions 
prescribed in the Articles 31(f), (k) and (l) of the TRIPS Agreement are not provided expressly in legal documents, they will be complied with during the application of 
provisions on granting compulsory licenses. Th e provisions on conditions of the grant of 
compulsory licenses with the wording of th e Articles 31(f), (k) and (l) of the TRIPS 
Agreement will be promulgated when there is a possibility of amending the respective provisions or making an Intellectual prope rty Law and regulations thereof; and  
− The abolishment of treatment discrimination h as been introduced into  the Draft Circular 
of the Ministry of Finance on industrial pr operty fees and charges (to substitute the 
Circular No. 23/TC-TCT of 9 May 1997), whic h is expected to be promulgated in the 
year 2004. 
The protection of temporary copies and pre-program signals:  
− The drafting of an Intellectual Property Law and regulations thereof in order to upgrade 
the intellectual property legal system of Viet Nam towards transparent and effective will be determined together with the amendmen t of the Civil Code in the year 2004. The 
existing intellectual property legal system unde r the Civil Code continues to be amended 
and supplemented according to the Action Plan for the implementation of the TRIPS Agreement until the promulgation of the In tellectual Property La w and regulations 
thereof; and 
− The elimination of non-discrimination has been in corporated into the draft of a circular to 
be issued by the Ministry of Finance on the collection, payment, management and use of 
industrial property charges, which replaces the Circular No. 23/TT-TCT of 9 May 1997, 
is expected to be issued in 2004. 
Question 133 
We appreciate Viet Nam's commitment to fully apply the TRIPS Agreement without any 
transition periods.  We also appreciate the submis sion of the Action Plan for the implementation 
of the TRIPS Agreement (WT/ACC/VNM/21/Rev.1) 
With regard to paragraph 292, reference is made that Viet Nam "found no need to 
accommodate paragraphs (f), (k) and (l) of  Article 31 of the TRIPS Agreement in its 
legislation".  We, however, do not share this  view.  In our understanding, a Member country 
shall accommodate paragraph (f) of Article 31 in it s domestic legislation in order to authorize 
other usage.  We thus encourage Viet Nam to incl ude paragraphs (k) and (l) of Article 31 in its 
legislation when considering the amendment of the relevant laws. 
With regard to the Technology Transfer Agreement in Q.111 and Q.112 of WT/ACC/VNM/29, 
we would like to comment on following points:  WT/ACC/VNM/32 
 Page 65 
 
 
 Can Viet Nam specifically confirm that there is no  limit to the payment period of consideration 
in relation to technical transfer, and that su ch period is subject to an agreement between 
parties? 
We urge Viet Nam to relax its limitation on royal ties as soon as possible.  We further believe 
that such limitation should ultimately be eliminated. 
Answer : 
Comparing requirements set forth in paragraphs (f), (k) and (l) of Article 31 of the TRIPS Agreement 
with its current provisions on conditions for granti ng compulsory licenses in regards of patent for 
inventions Viet Nam found: 
Compulsory licenses for an invention shall be gran ted only under the circumstances prescribed in 
Article 802 of the Civil Code, which are as follows: 
− The owners fail to use such invention or the use of the invention does not meet the needs 
of economic and social development of the country without justifiable reasons; 
− The proposed user has made efforts to obtain authorization from the owner on a 
reasonable price, but failed to reach an agre ement with the owner on the right to use the 
invention; and 
− The use of such invention is necessary for me eting the needs of national defence, national 
security, health or other urgent needs of the society. 
Thus, according the said provision, the compulsory licen ce is granted only if it meets the needs of the 
internal market, complies with the requirement of paragraph (f) of Article 31 of the TRIPS Agreement.  However, Viet Nam will consider stipul ating in more detail this matter when considering 
the amendment of the relevant law. 
Paragraph (k), Article 31 of the TRIPS Agreement provides for the conditions that allow Members not 
to be obliged to comply with the provisions set forth in paragraphs (b) and (f) of this Article in respect 
of controlling anti-competitive practices.  The prev ailing laws and regulatio ns of Viet Nam do not 
provide for exceptions as in paragraphs (b) and (f).  Therefore, there is no provision corresponding to 
paragraph (k).  However, Viet Nam will consider  the promulgation of such provisions when the 
Competition Law is enacted. 
Viet Nam will consider promulgating an additi onal provision on conditions for granting compulsory 
licenses for dependant patent as required by paragraph (l). 
The royalty payment period for intellectual property ri ghts in technology transfer contracts is to be 
agreed by parties within the relevant term of protection. 
The abolition of ceilings on royalty payments for intellectual property rights was introduced to the 
draft amendment to Decree No. 45/1998/ND-CP on tec hnology transfer to be promulgated in 2004. 
- Trademarks, including service marks Question 134 Concerning well-known marks, Viet Nam has Answered in Question 147 of document 
WT/ACC/VNM/23 that in order for well-known marks to be protected in Viet Nam, a State competent authority must recognize them as we ll-known marks.  How will well-known marks 
from third countries get recognition from the state authority?  Since the Paris Convention WT/ACC/VNM/32 
Page 66  
 
 requires members to protect unregistered well-kn own marks, how is a registration system for 
well-known marks consistent with WTO obligations? 
Answer
: 
Well-known marks from third countries will be r ecognized as well-known in Viet Nam by the state 
authority if the person seeking protection proves to th e satisfaction of the state authority that the mark 
has been widely-known in the relevant sector of th e public in Viet Nam as a result of purchase, sale, 
consumption and advertisement, etc. 
The procedures for recognition of well-known marks are not registration ones, but rather are the 
examination procedures for recognition of well-known st atus of the marks prior to the registration or 
use by other persons of a mark conflicting with, i.e. identical with or similar to, the well-known mark.  
The Viet Nam's condition for the protection of well- known marks that the well-known status must be 
recognized by the competent state authority is expressly permitted by paragraph 1 of Article 6 bis of 
the Paris Convention.  Therefore, the system for recognition of the well-known marks in Viet Nam is 
fully consistent with WTO obligations.  Viet Na m believes that it is required by every well-known 
mark protection system that whenever the owner takes actions against third parties the well-known 
status must be recognized by the competent authority, be it judicial or other authorities.  Viet Nam 
would be grateful if this Working Party Member could explain how a well-known mark is protected in 
his country. 
Question 135 
Article 35 of Decree No. 63/CP states that the trad emark owner shall be entitled to transfer the 
right to use the trademark entirely or in part to other natural or legal persons or other entities.  
Do the terms "entirely or in part" refer to the "transfer of business" language in TRIPS 
Article 21 that allows a trademark to be assign ed with or without the transfer of business to 
which the trademark belongs?  Can an owner of  a registered mark assign a trademark either 
with or without the transfer of business to which the trademark belongs? 
Answer : 
The terms "entirely or in part" in Article 35 of th e Decree No. 63/CP do not refer to the "transfer of 
business" in TRIPS Article 21, but rather the sc ope of licence which may, as provided for in 
Section 17.3 of the Circular No. 3055/TT-SHCN, include some or all of the protected acts of using (production, sale, importation…) with respect to the whole or a part of prot ection scope (some or all 
of the goods or services in respect of which the mark is registered). 
Vietnamese laws and regulations have no provisions  requiring the trademark owner to transfer the 
trademark along with his business.  So, the owner of  a registered mark can assign the trademark either 
with or without the transfer of business to which the trademark belongs, and according to Section 17.2, 3 of the Circular No. 3055/TT-SHCN , the trademark owner can assign the mark with 
respect to some or all of the goods or services registered. 
- Geographical indications, including appellations of origin 
Question 136 
In document WT/ACC/VNM/29, question 125 (ref erring to paragraph 260), Viet Nam was 
asked to clarify "how the exclusive rights of tr ademark holders will be protected with respect to 
potentially infringing geographical indications"  (TRIPS 24.5).  Viet Nam responded "…that the 
rights derived from the trademark shall not be affected by the protection of the geographical  WT/ACC/VNM/32 
 Page 67 
 
 
 indication."  It appears, based on this response,  that trademarks in Viet Nam would be allowed 
to coexist with confusingly similar and later in time geographical indications.  Please explain 
how such a system is consistent with the excl usive rights given to trademark owners in TRIPS 
Article 16.1 as well as Article 24(5). 
Answer : 
Rights derived from a trademark shall not be affect ed by the protection of a geographical indication 
because the purposes and nature of protection of these two IPR categories are different: the trademark owner have the rights to exclude other from using any sign, including geographical indications, if 
such use causes confusion as to co mmercial origin of the goods, while the geographical indications 
protection is to prevent using signs causing confusi on as to geographical origin of goods and as to the 
characteristics of goods originated from the relevant geographical region.  Such concurrent protection 
of a geographical indication and a trademark is in no way in contradiction with the provision of Article 16.1 vµ 24.5 of the TRIPS. 
Question 137 
Please provide a copy of Decree No. 54/2000/ ND-CP which contains provisions regarding 
Geographical Indications.  In addition, please provide copy of Decree No. 06/2001/ND-CP 
containing provisions regarding appellations of origin. 
Answer
: 
The copies of the Decree No. 54/2000/ND-CP an d the Decree No. 06/2001/ND-CP have been 
enclosed with the document WT/ACC/VNM/29. 
Question 138 
In response to question 125 of document WT /ACC/VNM/29, and referring to paragraph 257, 
Viet Nam has stated that a geographical region may not be an administrative unit indicated in the national administrative map (country, provin ce, district, village).  How is this statement 
compliant with the portion of Article 22(1) TR IPS, which states that geographical indications 
are indications which identify a good as originating in the territory or a Member, or a region or 
locality in that territory?" 
Answer
: 
A geographical region may not be an administrative unit indicated in the national administrative map 
(country, province, district, village) because a geographical indication usually is a traditional 
geographical name having been historically deve loped, which corresponds a defined geographical 
region, while administrative geographical name and border may be changed by time.  Therefore, at a 
time the defined geographical region may, compared  to the current administrative map, corresponds 
one administrative unit or only a part of it, or belong to different administrative units or even different 
countries.  This is not, in any way, in contradiction with the provision of Article 22.1 of the TRIPS on the obligation to provide protection to geographical  indications corresponding to the territory or a 
Member, or a region or locality in that territory. 
Question 139 What procedures are in place for interested pa rties or owners of third-country geographical 
indications to prevent the use of foreign geographical indications?  WT/ACC/VNM/32 
Page 68  
 
 Answer
: 
According to Article 23 of the Decree No. 54/2000/ND-CP, acts infringing geographical indications 
of foreign countries as well as of Viet Nam shal l be handled in accordance with procedures for 
handling acts infringing other industrial property rights such as trademarks, industrial designs, 
inventions etc. 
Question 140 What are the civil and criminal penalties for wrongful use of a geographical indication?  Who 
enforces judgments related to the wrongful use of a geographical indication?  In cases of infringement, how are damages calculated? 
Answer
: 
The civil remedies for wrongful use of a geographi cal indication are provided for in paragraph 1 of 
Article 21 of the Decree No. 54/2000/ND-CP , which include injunction and damages. 
The criminal penalties for wrongful use of a geograp hical indication are provided for in Article 171 of 
the Criminal Code of 1999, which include:  
− a fine of VND 20 million to VND 200 million or non-custodial probation of up to two 
years, in case of violations  causing serious consequences; or 
− imprisonment of six months to three years, in  case of violations of organized character, 
repeated infringements or causing very or especially serious consequences; and 
− and, an interdiction to hold certain posts a nd practise certain professions for one to five 
years. 
In case of wrongful use of a geographical indication, that constitutes the crime of manufacturing or 
trading in counterfeits, penalties include: 
− imprisonment of 6 months to 15 years; a fine of VND 5 million to VND 50 million, 
confiscation the whole or a part of property,  interdiction to hold certain positions and 
practise certain professions during one to five years (Article 156 of the Criminal Code of 
1999); 
− imprisonment of two years to life time; a fine of VND 5 million to VND 50 million, 
confiscation of the whole or a part of prope rty, interdiction to hold certain positions and 
practise certain professions during one to five years, in case where counterfeits are foodstuff or drugs for treatment of human diseases (Article 157 of the Criminal Code of 1999); and 
− imprisonment of one to 15 years; a fine of VND 10 million to VND 100 million, 
confiscation of the whole or a part of prope rty, interdiction to hold certain positions and 
practise certain professions during one to five years, in case where counterfeits are feed, 
fertilizer, drugs for animal, chemical agents  for protecting plant, plant varieties and 
animal species (Article 158 of the Criminal Code of 1999). 
The competent authorities responsible for enforcing judgments of the civil courts are the Judgment 
Enforcing Agency under the Ministry of Justice,  Judgment Enforcing Division under each Provincial 
Justice Department and Judgment Enforcing Team  under each District Justice Department.  The 
competent authorities responsible for enforcing judg ments of the criminal courts are the police. 
The current laws and regulations  have no provisions on calculation of damages derived from wrongful 
use of a geographical indication.  The plaintiff has to prove the actual damages in any way  WT/ACC/VNM/32 
 Page 69 
 
 
 satisfactory to the judgement board of the court.  However, Viet Nam intends to promulgate a Decree 
on civil remedies in the field of intellectual property, which would contain provisions on the calculation of damages.   
- Requirements on undisclosed information,  including trade secrets and test data 
Question 141 
According to the response to question 131 of WT/ACC/VNM/29, the government of Viet Nam a 
circular guiding the implementation of Decr ee No. 54/2000/ND-CP on the protection of 
industrial property rights to business secrets, etc.  will be issued.  How do the authorities - the 
Office of Pharmaceutical Administration and Offi ce of Plant protection - protect the test data?  
What is the term of protection for test data?   
Answer
: 
The competent authorities, namely the Office of Pharmaceutical Administration and Office of Plant 
Protection, are obliged to protect test data subm itted to them against disclosure according to secret 
keeping rules of administrative authorities, like th e Intellectual Property Office keeps all applications 
for patents of inventions, utilit y solution and industrial designs  secret until it publishes them. 
According to Item 2 Article 8 of Decree No. 54/ 2000/ND-CP, industrial property rights to business 
secrets shall be protected as long as the protection requirements provided for in Item 1 Article 6 of the Decree are fully met.  Therefore test data are protected as long as they satisfy all protection requirements. 
To have an insight, Viet Nam would be grateful this Working Party Member could be kind enough to 
explain its own laws and practice in respect of its interested issues mentioned above. WT/ACC/VNM/32 
Page 70  
 
 ANNEX 1 
Commitments on Trading Rights
 
1. Viet Nam confirms that wholly Vietnamese-i nvested enterprises have been granted full right 
to trade since 1 January 2002. 
2.   Upon accession, foreign directly invested enterprises in the production and manufacturing 
sectors, which are not purely import and export trading entities, would be granted full rights 
to trade, subject to the restrictions listed in Table A (attached), and pr ovided such enterprises 
are engaged in substantial business activities in the production and manufacturing sectors.  
Such enterprises shall register their business lin es with the relevant State's registration 
agencies. 
3.   Upon accession, nationals and companies from WTO Members shall be allowed to set up 
joint ventures with Vietnamese partners to engage in import and export activities, with 
foreign capital contribution not exceeding 49 per cent of the legal capital of the joint ventures.  
Not later than 1 January 2008, this limita tion shall be 51 per cent.  Not later than 
1 January 2009, 100 per cent foreign directly i nvested enterprises shall be allowed to be 
established to engage in import and export activities.   
4.   Joint ventures and 100 per cent foreign direc tly invested enterprises referred to in paragraph 3 
above shall:  
− be entitled to import and export all kinds of goods, subject to the restrictions listed  in 
Table A (attached); and 
− register their business lines with the re levant State's registration agencies. 
5. The trading rights referred herein shall not automatically grant the importers the right to 
distribute goods in Viet Nam.  The distribution of goods and the provision of distribution 
services shall be subject to Viet Nam's Speci fic Schedule of Commitments in Services. 
6. The trading rights referred herein shall in no case affect the rights of the Government of 
Viet Nam to: 
− adopt or enforce requirements fo r customs and fiscal purposes; and 
− adopt or enforce regulations with respect to the importation, exportation, re-importation, 
re-exportation, and transit of goods in consis tence with relevant provisions of the WTO 
Agreements and with Viet Nam's commitmen ts upon accession to the WTO, such as those 
relating to import licensing, TBT and SPS.  WT/ACC/VNM/32 
 Page 71 
 
 
 TABLE A: SCHEDULE ON TRADING RIGHTS 
(Attached to Annex 1 on Commitments on Trading Rights) 
Notes: For the purpose of this Table: 
− Schedule starts from 1 January of the specified year; and 
− "U" means "Unbound" 
HS Description Schedule 
  Meat and edible meat offal  
0201 Meat of bovine animals, fresh or chilled. 2010 
0202 Meat of bovine animals, frozen. 2008 
0203 Meat of swine, fresh, chilled or frozen. 2008 
0206 Edible offal of bovine an imals, swine, sheep, ... 2008 
0207 Meat and edible offal, of the poultry of heading ... 2010 
0209 Pig fat, free of lean meat , and poultry fat, not ... 2008 
0210 Meat and edible meat offal, salted, in brine, .... 2008 
  Dairy and Dairy Products  
0401 Milk and cream, not concentrated nor containing ... 2008 
0402 Milk and cream, concen trated or containing ... 2010 
0403 Buttermilk, curdled milk  and cream, yogurt, .... 2010 
0404 Whey, whether or not concentrated or ... 2008 
  Edible fruit and nuts; peel of citrus fruit ...  
0805 Citrus fruit, fresh or dried. 2010 
  Cereals  
1005 Maize (corn). 2008 
1006 Rice. U 
  Wheat  
1101 Wheat or meslin flour 2010 
  Plant oils  
1507 Soybean oil and its fractions.... 2008 
1508 Ground nut oil an d its fractions.... 2010 
1511 Palm oil and its fractions....   2008 
1513 Coconut (copra), palm kernel or babassu oil and fractions .....   2010 
  Processed Meat  
1601 Sausages and similar products, of meat, meat offal or blood...                    2008 
1602 Other prepared and preserved meat...   2008 
  Sugar  
1701 Cane or beet sugar and chemically pure sucrose, in solid form 2011 
  Alcohol and Beer  
2203 Beer made from malt  2010 
2204 Wine or fresh grapes, including fortified wines... 2010 
2205 Vermouth and other wine of fresh grapes flavored with plants ... 2010 
2206 Other fermented beverages 2010 
2207 Undenatured ethyl alcohol > 80per cent... 2010 
2208 Undenatured ethyl alcohol < 80per cent... 2010 
  Tobacco and tobacco products  
2401 Unmanufactured tob acco; tobacco refuse... U 
2402 Cigars, cheroots, cigarillos and cigarettes... U 
2403 Other manufactured tobacco and manufactured tobacco ... U 
  Cement and Clinker  
2523 Portland cement, aluminous cement, slag cement etc... 2010 
  Crude oil and petroleum products  
2709 Crude oil from petroleum and bituminous minerals... U WT/ACC/VNM/32 
Page 72  
 
 HS Description Schedule 
2710 Oil (not crude) from petrol and bitum mineral etc.... U 
2711 Petroleum gases and othe r gaseous hydrocarbons... 2011 
  Pharmaceutical products  
3003 Medicaments nesoi of mixtur es, not dosage etc form... 2011 
3004 Medicaments nesoi, mixed or  not, in dosage etc fm... 2011 
3006 Pharmaceutical goods in note 4 to chapter 30... 2011 
  Fertilizers  
3102 Mineral or chemical fertilizers, nitrogenous 2010 
3103 Mineral or chemical fe rtilizers, phosphatic... 2010 
3104 Mineral or chemical fertilizers, potassic... 2010 
3105 Mineral or chemical fertilizers, other... 2010 
  Lubricants  
3403 Lubricating preps, antirust and treating textiles etc... 2008 
  Cinematographic film  
3706 Motion-picture film, exposed and developed... U 
  Printed books, brochures, leaflets and similar printed matter...  
4901 Books, brochures and similar printed matter... U 
4902 Newspapers, journals and periodicals... U 
4903 Children's picture, dr awing or coloring books... U 
4907 Unused postage, check forms, banknotes, stock, etc... U 
4909 Printed or illust post cards, greeting cards, etc.... U 
4910 Calendars, calendar blocks of any kind, printed... U 
4911 Printed matter nesoi, incl print pictures and photos... U 
  Iron and steel  
7208 Fl-rl iron and na steel nun600mm wd hot-rl, not clad... 2010 
7209 Fl-rl iron and na steel nun600mm wd cold-rl, no clad... 2010 
7210 Fl-rl iron and na steel nun600mm wd, clad etc... 2010 
7211 Fl-rl iron and na steel un 600mm wd, not clad etc... 2010 
7212 Fl-rl iron and na steel un 600mm wd, clad etc... 2010 
7213 Bars and rods, iron and na steel, h-r irreg coils... 2010 
7214 Bars and rods, iron and na steel nesoi, h-r etc... 2010 
7215 Bars and rods, iron and na steel nesoi... 2010 
7216 Angles, shapes and sections of iron and nonalloy steel... 2010 
7217 Wire of iron and nonalloy steel... 2010 
  Industrial printers  
8442 Mach etc nesoi for typese t, making pr plates etc... U 
8443 Print mach incl ink-jet mach ancil t prnt pt nesoi... U 
  Records, tapes and other recorded media  
8524 Records, tapes and other recorded media for sound or ... U 
  Other machinery  
8525 Trans appar for radiotele etc; tv camera and rec U 
8526 Radar apparatus, radio navig aid and remote cont app U 
  Automobiles, motocycles  
8702 Motor vehicle f trnspt >ten persons includ driver 2011 
8703 Motor cars and vehicles for transporting persons 2011 
8704 Motor vehicles for transport of goods 2011 
8705 Special purpose motor vehicles nesoi 2011 
8706 Chas w eng f trac, mtr veh f pass/gd and special pur 2011 
8707 Bodies (including cabs), for specif motor vehicles 2008 
8708 Parts and access for motor ve hicles (head 8701-8705) 2010 
8709 Works trucks, self-prop, no lift; stat tractrs; pt 2010 
8711 Motorcycles (incl mopeds) and cycles with aux motor 2010 
8714 Parts and access for cycles  and invalid carriages 2010 
8716 Trailers etc; other vehicles, not mech propeld, pt 2010  WT/ACC/VNM/32 
 Page 73 
 
 
 HS Description Schedule 
  Aircraft  
8802 Aircraft, spacecraft and suborb ital and spacecraft launch vehicle U 
8803 Parts of aircraft, spacecraft and suborbital and spacecraft launch vehicle U 
  Other goods  
9001 Opt fibers and bund etc; pol sheets; unmoun opt elem 2010 
9704 Postage or revenue stamps, firstday covers 2005 
 WT/ACC/VNM/32 
Page 74  
 
 ANNEX 2 
 
Information on Enterprises in Dairy, Co ffee and Tea Sectors as Requested by 
 
Members at the 7th Session of the Working Party on Viet Nam's Accession to the WTO  
 
 
- Coffee  
 I. ENUMERATION OF THE ENTERPRISE  
A. Identification of Enterprise:
 
  Name:  Viet Nam Coffee Corporation (VINACAFE)  Address:  05 Ong Ich Khiem, Ba Dinh, Ha Noi, Viet Nam  Tel:  84 4 8232196/8232291 
 Fax:  84 4 8456422 
 B. Description of products affected (includi ng tariff item number(s) encompassed in product 
description)  
 -  Coffee Bean (HS 0901.11): 
 
 - Robusta coffee bean   - Arabica coffee bean  - Processed coffee (HS 0901.21): 
 
 - Instant milked coffee  - Instant coffee  - Roasted coffee been  - Coffee powder  
-  Others: 
  -  Nutritious cereal powder (HS 1102-20)  - Cashew nut, sugar (from sugarcane), pepper, rice  - Animal feed, other agricultural products 
 - Construction materials, machinery and equipment for coffee processing, etc. 
 II. REASON AND PURPOSE    A. Reason for establishing and/or maintaining the enterprise
 
 
 The Vietnam Coffee Corporation was established under Decision No. 251/TTg of the Prime 
Minister dated 29 April 1995.  VINACAFE's charter was stipulated by the Government's Decree No. 44/CP dated 15 July 1995.  Its main functions are as follows: 
 - Trading in coffee, comprising: 
 
- Taking initiatives in production and trading, including design of development plans, 
preparation of investment projects , mobilization of capital sources and 
implementation of investment projects,  supply of materials and equipment,  WT/ACC/VNM/32 
 Page 75 
 
 
 plantation, agricultural promotion, provision of plant varieties, research and 
development, technological transfer, etc; and 
- Processing, selling, exporting and importi ng and carrying out business cooperation 
with foreign and domestic partners in co mpliance with the Government's laws and 
policies.   
 
- Developing business in other areas in order to effectively take advantage of the country's 
potential of land and climate in accordance with relevant laws and regulations. 
 A. Main business activities of the Cooperation
 
 
 - Planting coffee, food crops and industria l crops; processing agricultural products such 
as tea, coffee, rubber, cocoa, sugar and treacle, etc.; 
 - Raising cattle, processing foodstuffs;  - Manufacturing construction material like bricks, tiles and roof sheets; constructing 
transportation and irrigation works, la nd reclamation; managing and exploiting 
irrigation systems for agricultural purposes; 
 - Trading agro-forestry and fisheries products, purchasing and transporting coffee, etc.; 
and 
 - Providing services in the areas of tourism,  hotel, training and ed ucation, consultancy 
and research, etc. 
 
B. Summary of legal basis for granting the releva nt exclusive or special rights or privileges, 
including legal provisions and summary of statutory or constitutional powers  
  None. 
 
III. DESCRIPTION OF THE FUNCTIONING OF THE ENTERPRISE  A. Summary statement providing overview of operations of the enterprise
 
 - Currently, VINACAFE has 54 subsidiaries wh ich engage in exporting/importing coffee, 
planting coffee and other industrial crops; processi ng coffee (instant coffee, roasted coffee, 
etc.); producing sugarcane, rice, cashew nuts, pepper, etc.; trading fertilizer and manufacturing machinery and equipment for processing coffee and other agricultural products, etc. 
- Each year VINACAFE produces about 50,000 tons of coffee beans and 5,000 tons of 
processed coffee, with exports of more than 200, 000 tons of coffee beans and over 1,000 tons 
of processed coffee.  Its export annual tur nover is approximately US$120 million and its 
import annual turnover is approximately US$25 m illion (including fertilizer and materials for 
production of finished coffee and other goods, etc.). 
 B. Specification of exclusive or special ri ghts or privileges enjoyed by the enterprise
 
 
None.  C. Type of entities other than the enterprise that  are allowed to engage in importation/exportation 
and conditions for participation  
 
- At present, there are no restrictions on the participation in exportation of coffee; - Enterprises of all economic sectors (state, private and foreign invested, etc.) have the right to 
export coffee. 
 WT/ACC/VNM/32 
Page 76  
 
 D. How export levels are established by the enterprise
 
 - Based on the coffee output; - Based on the analysis of VINACAFE; - Based on other factors: market's demand and supply, market prices, etc. 
 
E. How export prices are determined
 
 - Buying and selling prices are based on market prices (mainly of the two major coffee markets 
of London and New York); 
- Other market factors (supply and demand, market, customer, etc.). 
  F. How the resale prices of imported products are determined
  
 - On the basis of seasons, demand for pr oduction and supply in the market;  
- Import price; 
- Other costs: transportation and payment fees, etc; - Other objective factors affecting import markets etc.  G.   Whether long-term contracts are negotiated by  the enterprise.  Whether the enterprise is used 
to fulfil contractual obligations entered into by the government  
 
- The enterprise is allowed to negotiate long-te rm contracts in accordance with their capacity as 
well as customers' demand; 
- VINACAFE participated in contractual ob ligations entered into by the Government 
(fulfilment of the Government's debt repaym ent in kind through the Government's bidding 
process). 
 H. Brief description of market structure
 
 Coffee market includes the following players:   
- Producers: Companies, farms, households, and individuals; 
- Buyers: firms and households; - Coffee processing firms/factories; - Import-export companies; - Consumers: hotels, restaurants, super markets and households. 
 
IV. Statistical Information
 
 
Box II: Information on export by products 
(2000, 2001 and 2002) 
 
Product 
description Total 
Export VINACAFE's 
export Average 
domestic 
buying 
price 
(US$/ton) Average 
domestic 
selling 
price 
(US$/ton) Average 
export 
price 
(US$/ton) Domestic 
production 
Year 2000: - Coffee bean 
- Processed 
coffee  613,871  
171,333 
350 N/A 
 N/A  
619 
2,750 N/A  WT/ACC/VNM/32 
 Page 77 
 
 
 Product 
description Total 
Export VINACAFE's 
export Average 
domestic 
buying 
price 
(US$/ton) Average 
domestic 
selling 
price 
(US$/ton) Average 
export 
price 
(US$/ton) Domestic 
production 
Year 2001: 
- Coffee bean 
- Processed 
coffee 931,198 
  
295,563 
400 N/A 
 N/A  
338 
2,750 N/A 
Year 2002: 
- Coffee bean 
- Processed 
coffee 718,575  
201,683 
503 N/A 
 N/A  
444 
2,752 N/A 
 
- Tea  
 
I. ENUMERATION OF THE ENTERPRISE  
 A. Identification of enterprise
 
  Name:    Vietnam Tea Corporation (VINATEA)   Address:   46 Tang Bat Ho, Hai Ba Trung Dist., Hanoi, Viet Nam 
 Tel:    84 4 9716 230 
 Fax:    84 4 8212 663  B. Description of products affected:
 
 
 Green and black tea of all kinds (HS 090200) 
 II. REASON AND PURPOSE   A. Reason or purpose for establishing and/or maintaining the enterprise
: 
 
- The Vietnam National Tea Corporation was established under Decision No. 394 NN-
TCCB/QD, dated 29 December 1995 of the Ministry  of Agriculture and Rural Development.  
The main functions of the corporation are to  carry out business in tea products including 
growing, processing, selling, importing and exportin g tea; to trade in tea production materials 
and equipment; and to carry out other business activities in acco rdance with laws. 
- The Vietnam National Tea Corporation is allowed to do business, including importation and 
exportation of all kinds of tea, agricultural, for est and forestry products, handicraft, consumer 
goods, materials, machinery, equipments, accessori es and means of transportation; to carry 
out civil and industrial construction; to fulfil related investment and science research and to 
provide services such as consultancy, hotel, t ourism, restaurant, transportation and other 
services provided for by the laws. 
 
B. Summary of legal basis for granting the releva nt exclusive or special rights or privileges, 
 including legal provisions and summary of statutory or constitutional powers  
 None. 
 
III. DESCRIPTION OF THE FUNCTIONING OF THE ENTERPRISE   WT/ACC/VNM/32 
Page 78  
 
 A. Summary statement providing overview of operations of the enterprise
 
 - The Vietnam National Tea Corporation was established on 29 December 1995.  The 
Corporation is the largest company producing and exporting tea in Vietnam with nearly 3,000 hectares and 15 tea-producing factories with the capacity of 5,000 tons per year.  The 
corporation's tea products are not only c onsumed domestically but also exported and 
consumed in 40 foreign markets. 
- Apart from tea production and export, the cor poration has been doing business in other goods 
and services, such as: construction, import and export of materials and machinery. 
 
B. Specification of exclusive or special ri ghts or privileges enjoyed by the enterprise
 
 None.  C. Type of entities other than the enterprise that  are allowed to engage in importation/exportation 
and conditions for participation  
 - All legally established enterprises (including pr ivate enterprises, limited liability companies, 
foreign-invested enterprises) status can all pa rticipate in importation and exportation of tea 
products. 
 
D. How export/import levels are established
  
 - No export quota is applied to tea.  Enterpri ses exporting from 5 kilograms of tea have to make 
customs declaration in accordan ce with the Law on Customs. 
- Import quantities are determined by the importing enterprises according to orders of domestic 
customers, prices and supplies in domestic and international markets, etc.  
 E. How export prices are determined
 
 - With reference to the market price and to th e production costs and other costs to see if the 
offered price is reasonable; 
- By bidding for big contracts. 
 F. How the resale prices of imported products are determined
 
 - Tea products are imported in accordance with domest ic orders and resold at wholesale price.   
 
G. Whether long-term contracts are negotiated by the enterprise.  Whether the enterprise is used 
to fulfil contractual obligations entered into by the government?  
 - The enterprise is allowed to ne gotiate long-term contracts and is  not used to fulfil contractual 
obligations entered into by the Government. 
 
H. Brief description of market structure
 
 
 Export 
  In recent years, the Vinatea has been expor ting over 20,000 tons of tea each year with a 
turnover of more than US$ 30 million, accounting for 40-45 per cent of the country's total tea 
export.  The major market has been Iraq (80 per cent of total exports).  Besides, the corporation exports to over 40 countries, including Pakistan, Russia, the Netherlands and  WT/ACC/VNM/32 
 Page 79 
 
 
 Germany.  The ratio of processed and boxed tea exports is negligible.  About 70-80 per cent 
of total tea output is exported. 
 
 Domestic Consumption 
  The Corporation produces traditional tea varieties for domestic consumption. 
 IV. STATISTICAL INFORMATION   
Table II: Export by tea products
 
 
Year Description 
(with HS) Total 
export 
(by 
product, 
in ton) Vinatea's  
export (ton) Vinatea's 
average 
buying 
price 
(VND 
1,000/ton) Vinatea's 
domestic 
average 
selling 
price 
(VND 
1,000/ton) Vinatea's 
average 
export 
price 
(US$/ton) Vinatea's 
domestic 
production 
2000 53,172 24,427 16,840 N/A 1,369 21,128 
2001 66,919 29,771 16,351 N/A 1,271 25,190 
2002 All types of 
green and 
black tea, 
HS:  090200 71,373 24,013 14,314 N/A 1,279 21,986 
 
 
Table III: Information on domestic activities  
 
Year Description 
(with HS) Value of 
Vinatea 
Corp.'s 
domestic purchase 
(VND 1,000) Vinatea 
Corp.'s 
domestic 
production 
(ton) Revenue of 
Vinatea Corp.'s 
domestic sale 
(VND 1,000) Vinatea Corp.'s 
domestic 
consumption (ton) 
2000 513,686,239 21,128 39,153,400 987 
2001 480,025,301 25,190 47,079,111 1,094 
2002 All types of 
green and 
black tea, 
HS: 090200 374,112,819 21,986 32,661,823 1,132 
 
V. REASON WHY NO FOREIGN TRADE HAS BEEN TAKEN:   The Vinatea Corp.  does not import tea products.  The main objective of the corporation is to 
sell what it produces and processes. 
 VI. ADDITIONAL INFORMATION 
 
None.  
- Milk
 
 
I. ENUMERATION OF THE ENTERPRISE  
 A. Identification of the Enterprise
 
 
 Name:  Viet Nam Dairy Products Company (VINAMILK)  Address: 36 - 38 Ngo Duc Ke, District 1, Ho Chi Minh City,  Viet Nam WT/ACC/VNM/32 
Page 80  
 
  Tel:  84 8 299 644 – 8 298 054  
 Fax:  84 8 294 845  B. Description of products affected (includi ng tariff item number(s) encompassed in product 
description)  
 
 Main products related to the company's operations are as followed:  
 Input/ imported materials     HS code 
 Milk powder        0402.10  Butter oil       0405.90 
 
 Output/exported products     HS Code 
 
 Condensed milk with sugar     0402.99 
 Finished milk powder for children and grown-ups  0402.21 
 Sterilized fresh milk      0401.20  Yogurt        0403.10  Fruit juice       2009  Processed cheese      0406.30  
 The above listing is for informative purpose.  The company does not produce or carry out 
business of any products under priv ileges accorded by the Government. 
 II. REASON AND PURPOSE   
A. Reason for establishing and/or maintaining the Company
  
   The Viet Nam Dairy Products Company (VI NAMILK) operates under the Law on Enterprises 
with the following details: 
- Equitized into a joint-stock company according to Decision No. 155/2003/QD-BCN dated 1st 
October 2003 issued by the Ministry of Industry. 
- Operating according to the Joint-Stock Company Business Licence No.4103001932 dated 
20th November 2003 issued by the Planning a nd Investment Department of Ho Chi Minh 
City. 
- Business coverage: production and processing of milk and dairy products; manufacturing and 
trading in packages, refreshments, processed foods tuff, fast food; trading in equipment, spare 
parts and chemical materials; printing packag es; and manufacturing and trading in plastic 
products. 
 B. Summary of legal basis for granting the releva nt exclusive or special rights or privileges, 
including legal provisions and summary of statutory or constitutional powers  
 
None. 
 III. DESCRIPTION OF THE FUNCTIONING OF THE ENTERPRISE  A. Summary statement providing overview of operations of the Enterprise
 
 
- VINAMILK has the charter capital of VND 1,500 billion and is the country's leading 
enterprise in manufacturing and trading dairy products. 
- Currently, VINAMILK owns the following factories:   WT/ACC/VNM/32 
 Page 81 
 
 
  - Thong Nhat Dairy Factory located in Thu Duc District, Ho Chi Minh City. 
 - Truong Tho Dairy Factory located in Thu Duc District, Ho Chi Minh City.  - Dielac Dairy Factory located in Bien Hoa Industrial Zone, Dong Nai Province.  - Hanoi Dairy Factory located in Gia Lam District, Hanoi.  - Binh Dinh Joint Venture Dairy Factory located in Quy Nhon, Binh Dinh Province. 
 - Can Tho Dairy Factory located in Tra Noc Industrial Zone, Can Tho City. 
 - VINAMILK has a nationwide distribution network. - VINAMILK has been awarded "High quality Vietnamese Products" for many consecutive 
years. 
 
B. Specification of exclusive or special ri ghts or privileges enjoyed by the Enterprise
 
 None.  
C. Type of entities other than the enterprise that  are allowed to engage in importation/exportation 
and conditions for participation  
  All enterprises that have business registration, whether local or foreign-invested, have the 
same rights and responsibilities in manufact uring, trading and participating in 
importation/exportation of dairy products. 
 
D. How import/export levels are established by the Enterprise
 
 - On the basis of the supply – demand rela tionship, its profit and prices in domestic and 
international markets. 
 
E. How export prices are determined
 
 - Based on the comparison between cost price and estimated benefits, with reference to 
domestic and international prices a nd on negotiations with customers. 
 
F. How the resale prices of imported products are determined
  
 - The vast majority of the VINAMILK's imports are materials, which serve as inputs for its 
own production, not for resale purpose. 
 
G. Whether long-term contracts are negotiated by the enterprise.  Whether the enterprise is used 
to fulfil contractual obligations entered into by the Government  
 - Based on agreements reached directly between VINAMILK and its partners, the company 
will enter into short-term or long-term contract s.  However, the term is normally not more 
than one year. 
- The company is now not fulfilling any cont ractual obligations entered into by the 
Government. 
 H. Brief description of market structure
 
  
 The company's dairy products are now holding around 70per cent market share of the 
domestic market. 
- The company's export turnover accounts for about  30per cent of its total revenue, most of 
exports are for the Middle East markets.   
 WT/ACC/VNM/32 
Page 82  
 
  
IV. STATISTICAL INFORMATION (2000-2002 Statistics)  
Table I: Import by products
 
 
Product 
Description 
(HS Code) Gross 
Import VINAMILK's 
import (T) Average 
importing 
price 
(US$/T) Average 
domestic 
price Price 
difference Domestic 
production 
Material milk powder 
(0402.10) N/A 156,000 1,800 N/A* N/A* N/A 
Material 
butter oil (0405.90) N/A  8,700 1,440 N/A* N/A* N/A 
 
Note:  *The VINAMILK imports materials for production and does not resell them in domestic market, thus 
having no resale price to compare.   
 
Table II: Export by product  
 
Product 
Description 
(HS Code) Gross 
Export VINAMILK's 
export 
(MT) Average buying 
price Average export 
price 
(US$/MT) Domestic 
Production 
Condensed 
milk with 
sugar (0402.99) N/A 782  Self-production 1,068  N/A 
Finished 
milk powder 
for children and adults 
(0402.21) N/A 145,000  self-production 2,700  N/A 
 
Table III: Domestic activities  
 
Product 
Description 
(HS Code) Value of 
VINAMILK's 
domestic purchase Domestic 
production VINAMILK's domestic 
turnover Domestic 
consumption 
Material milk powder (0402.10) 0 0 0 N/A 
Material butter 
oil (0405.90) 0 0 0 N/A 
Condensed 
milk with 
sugar 
(0402.99) 0 
(self-production, no 
domestic purchase) N/A VND 2,500 billion N/A 
Finished milk 
powder for 
children and 
adults (0402.21) 0 
(self-production) N/A VND 868 billion N/A 
  WT/ACC/VNM/32 
 Page 83 
 
 
 V. REASON WHY NO FOREIGN TRADE HAS TAKEN PLACE  
  The company imports input materials for its production demand, not for domestic distribution 
purpose.   
 
VI. ADDITIONAL INFORMATION  
  None.  
__________