RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/ACC/SPEC/VNM/4/Rev.1 
25 May 2004 
 (04-2230) 
Working Party on the 
Accession of Viet Nam  
 
 
 
ACCESSION OF VIET NAM 
 
Elements of a Draft Report  
of the Working Party on the Accession of Viet Nam  
 
Revision   WT/ACC/SPEC/VNM/4/Rev.1 
 Page i 
 
 
TABLE OF CONTENTS 
 
Introduction................................................................................................................... .........................1  
Documentation provided ......................................................................................................... ..............1  
Introductory statements ........................................................................................................ ................1  
ECONOMIC POLICIES.............................................................................................................. .........3  
Monetary and fiscal policy ..................................................................................................... ...............3  
Foreign exchange and payments.................................................................................................. .........5  
Investment regime.............................................................................................................. ....................8  
State ownership and privatization.............................................................................................. ........14  
Pricing policies ............................................................................................................... ......................17  
Competition policy............................................................................................................. ..................19  
FRAMEWORK FOR MAKING AN D ENFORCING POLICIES .................................................19  
POLICIES AFFECTING TRADE IN GOODS ................................................................................26  
Trading rights (the right to import and export)................................................................................ 26 
1. Import Regulation.............................................................................................................. .....29  
Customs tariff................................................................................................................. ......................29  
Other duties and charges....................................................................................................... ..............31  
Tariff rate quotas, tariff exemptions .......................................................................................... ........32  
Fees and charges fo r services rendered......................................................................................... .....34  
Application of internal taxes .................................................................................................. .............35  
Quantitative import restrictions, including pr ohibitions, quotas and licensing systems...............39  
Customs valuation.............................................................................................................. ..................43  
Rules of origin ................................................................................................................ ......................46  
Other customs formalities ...................................................................................................... .............46  
Pre-shipment inspection ........................................................................................................ ..............47  
Anti-dumping, countervailing duties, safeguard regimes ................................................................47  
2. Export regulation.............................................................................................................. ......49  
- Customs tariffs, fees and charges for serv ices rendered, application of internal 
taxes to exports............................................................................................................... .........49  
Export restrictions............................................................................................................ ....................49  
Export subsidies ............................................................................................................... ....................51  
3. Internal policies affecting foreign trade in goods.................................................................53  
Industrial policy, including subsidies......................................................................................... ........53  
Technical barriers to trade, standards and certification..................................................................58  
Sanitary and phytosanitary measures............................................................................................ ....63  
Trade-Related Investment  Measures (TRIMs) .................................................................................67  WT/ACC/SPEC/VNM/4/Rev.1 
Page ii  
 
State trading entities......................................................................................................... ...................70
 
Free zones, special economic areas............................................................................................. ........72  
Government procurement......................................................................................................... ..........74  
Trade in Ci vil Aircraft........................................................................................................ .................76  
Transit ....................................................................................................................... ...........................76  
Agricultural policies.......................................................................................................... ...................78  
(a) Imports – description of the types of  border protection maintained .................................78  
(b) Exports........................................................................................................................ .............78  
(c) Internal policies.............................................................................................................. .........79  
Fisheries ...................................................................................................................... ..........................82  
Textiles Regime ................................................................................................................ ....................82  
Core Labour Standards.......................................................................................................... .............83  
Trade-Related Intellectual Property Rights (TRIPS).......................................................................84  
1. General........................................................................................................................ .............84  
(a) Industrial property protection...............................................................................................84  
(b) Responsible agencies for policy formulation and implementation .....................................85  
(c) Participation in international intellectual property agreements ........................................85  
(d) Application of national and MFN treatment to foreign nationals......................................86  
(e) Fees and taxes ................................................................................................................. .........86  
2. Substantive standards of protection, including procedures for the acquisition 
and maintenance of intellectual property rights ..................................................................87  
(a) Copyright protection ........................................................................................................... ...87 
(b) Trademarks, including  service marks...................................................................................92  
(c) Geographical indications, including appellations of origin.................................................95  
(d) Industrial designs............................................................................................................. .......96  
(e) Patents........................................................................................................................ ..............97  
(f) Plant variety protection....................................................................................................... .100 
(g) Layout designs of integrated circuits ..................................................................................101  
(h) Requirements on undisclosed information, including trade secrets and test data..........101  
3. Measures to control abuse of intellectual property rights.................................................102  
4. Enforcement .................................................................................................................... ......103  
(a) Civil judicial procedures and remedies...............................................................................103  
(b) Provisional measures ........................................................................................................... .104 
(c) Administrative procedures and remedies...........................................................................105  
(d) Special border measures.......................................................................................................1 06 
(e) Criminal procedures............................................................................................................ .107 
Policies affecting trade in services ........................................................................................... .........109   WT/ACC/SPEC/VNM/4/Rev.1 
 Page iii 
 
 
Transparency................................................................................................................... ...................112  
Publication of information on trade............................................................................................ .....112  
Notifications.................................................................................................................. ......................113  
Trade Agreements............................................................................................................... ...............113  
Conclusions.................................................................................................................... .....................115  
ANNEX 1 ........................................................................................................................ ....................116  
 
  WT/ACC/SPEC/VNM/4/Rev.1 
 Page 1 
 
 
ELEMENTS OF A DRAFT REPORT 
 
 
Introduction 
1. The Government of the Socialist Republic of  Viet Nam applied for accession to the World 
Trade Organization in January 1995 (document WT/L /1).  At its meeting on 31 January 1995, the 
General Council established a Working Party to exam ine the application of the Government of the 
Socialist Republic of Viet Nam to accede to the World Trade Organization under Article XII of the 
Marrakesh Agreement Establishing the WTO.  The terms of reference and the membership of the 
Working Party are reproduced in document WT/ACC/VNM/1/[Rev.17]. 
2. The Working Party met on 30-31 July and 3 December 1998 ; 22-23 July 1999 ; 
30 November 2000 ; 10 April 2002 ; 12 May and 10 December 2003; [15 June 2004]  and ……… under 
the Chairmanship of H.E. Mr. Seung Ho (Republic of Korea). 
Documentation provided 
3. The Working Party had before it, to serve as a basis for its discussions, a Memorandum on the 
Foreign Trade Regime of Viet Nam (WT/ACC/VN M/2), the questions submitted by Members on the 
foreign trade regime of Viet Nam, together with th e replies thereto, and other information provided by 
the authorities of Viet Nam (WT/ACC/VNM/3 and Corrigendum 1 ; WT/ACC/VNM/3 and Addenda 
1, 2 and 3 ; WT/ACC/VNM/5 and Addendum 1 ; WT/ACC/VNM/6 and Addenda 1 and 2 ; 
WT/ACC/VNM/7 ; WT/ACC/VNM/8 ; WT/ACC/VNM/9 and Addenda 1 and 2 ; WT/ACC/VNM/10 ; 
WT/ACC/VNM/11 and Revisions 1, 2 and 3 ; WT/ACC/VNM/12 ; WT/ACC/VNM/13 and Addenda 1 
and 2 ; WT/ACC/VNM/14 and Addendum 1 ; WT/ACC/VNM/15 and Addenda 1 and 2 ; 
WT/ACC/VNM/16; WT/ACC/VNM/18 and Revision 1 ; WT/ACC/VNM/19 and Revision 1 ; 
WT/ACC/VNM/20 and Revisions 1 and 2 ; WT/ACC/VNM/21 and Revisions 1 and 2 ; 
WT/ACC/VNM/22 and Revision 1 ; WT/ACC/VNM/23 ; WT/ACC/VNM/24 and Revisions 1 and 2 ; 
WT/ACC/VNM/25 and Revisions 1, 2 and 3; WT /ACC/VNM/29; WT/ACC/VNM/31 and Revision 1; 
WT/ACC/VNM/32;  ….….), including the legislative texts and other documentation listed in Annex I. 
Introductory statements 
4. The representative of Viet Nam said that Viet  Nam had been carrying out economic reforms 
since 1986 under the "Doi Moi" (Renovation) polic y, focussing on market oriented economic 
management ; restructuring to build a multi-sectoral economy ; financial, monetary and administrative 
reforms ; and the development of external economic re lations.  Having joined the Association of 
Southeast Asia Nations (ASEAN), the Asia-E urope Cooperation (ASEM) and the Asia-Pacific WT/ACC/SPEC/VNM/4/Rev.1 
Page 2  
 
Economic Cooperation Forum (APEC), Viet Nam was participating in regional institutions which 
were committed to WTO principles and rules, a nd preparatory and substantially supportive of 
Viet Nam's accession to the WTO. 
5. Viet Nam recognized the important role and si gnificance of the WTO in the development of 
the global economy as well as the economic growth of individual countries.  Viet Nam had decided to 
apply for WTO membership with a view to expandi ng its economic, trade and investment ties with 
other Members, reflecting a firm resolve to cont inue the process of integration of Viet Nam's 
economy into the world trading system.  Conscious that WTO membership involved both rights and obligations, Viet Nam was committed to upholding th e principles of the WTO as the basis for its trade 
policies.  Viet Nam was revising its legislation to adapt gradually to the rules and principles of the 
WTO. 
6. The Government had established an inter-mi nisterial National Committee on International 
Economic Co-operation (NCIEC), responsible for in ter-sectoral coordination in policy formulation 
and economic cooperation, as well as a Governmental Negotiation Team on International Economic 
and Trade Affairs, comprising senior officials from various Ministries.  Viet Nam was prepared to 
embark on negotiations in all sectors of interest to Members of the WTO.  Referring to Viet Nam as a 
low-income and highly indebted developing coun try, he hoped and believed that Members would 
show sympathy and flexibility in the elaborati on of the terms and conditions for Viet Nam's 
membership. 
7. Members of the WTO welcomed strongly Viet  Nam's application to join the WTO and 
pledged their full support to the accession process.   Members appreciated the significant reforms 
already undertaken and encouraged Viet Nam to c ontinue the policies towards market-orientation, 
liberalization and transparency.  Viet Nam's integration into the world economy would allow 
Viet Nam to solidify the gains of its ongoing economi c reforms.  Some Members noted that Viet Nam 
would need to make further adjustments in its  legal and trade regime to conform to WTO 
requirements, and looked forward to working ac tively with Viet Nam towards this objective. 
8. The Working Party reviewed the economic policie s and foreign trade regime of Viet Nam and 
the possible terms of a draft Protocol of Accession to the WTO.  The views expressed by members of 
the Working Party on the various aspects of Viet Nam's foreign trade regime, and on the terms and 
conditions of Viet Nam's accession to the WTO ar e summarized below in paragraphs 9 to [369].  WT/ACC/SPEC/VNM/4/Rev.1 
 Page 3 
 
 
ECONOMIC POLICIES  
Monetary and fiscal policy  
9. The representative of Viet Nam said that in accordance with the Law on State Bank of Viet 
Nam, the main objective of Viet Nam's monetary policy was to stabilize the value of the currency – 
the Vietnamese Dong, to control inflation and to pr omote socio-economic development.  Credits were 
channelled into activities making full use of the pot entials of various economic sectors.  The State 
Bank of Viet Nam was using monetary policy instrume nts such as refinancing, reserve requirements, 
interest rates, exchange rates, open market operati ons and other supplementary instruments to regulate 
the money supply.  The State Bank of Viet Nam had applied a uniform rediscount rate for all 
commercial banks since 1999.  Credit policy conti nued to be improved to meet sufficiently the 
financing requirements for economic growth in line with monetary policy objectives from time to 
time.  The credit mechanism had been amended to become more liberal in order to create a level 
playing field among various economic sectors, improve the autonomy and accountability of credit institutions, and enhance credit quality.   
10. Asked about the level of commercial debt owed  by public sector enterprises, he said that 
State-owned enterprises had owed Vietnamese commercial banks 79.7 trillion Dong, or 42 per cent of 
total outstanding debt, on 31 December 2001.  Fi nancial institutions considered and decided 
themselves whether to provide loans to St ate-owned enterprises, on commercial terms. 
11. The budget deficit was considered the main cause of inflation.  The Government targeted a 
deficit ratio of maximum 3 per cent of GDP, co mpared to an average budget deficit of about 
8 per cent to GDP in the 1980s.  The budget deficit had amounted to 1.3 per cent of GDP in 1999, 2.7 per cent in 2000, 2.9 per cent in 2001, 2.3 per cent in 2002 and 2.1 per cent in 2003.  The Government also aimed at maintaining a surplus of current revenue over current expenditure at 
4.5 per cent of GDP.  The respective ratios had been 5.1 per cent in 1999, 5.2 per cent in 2000, 
3.9 per cent in 2001, 5.8 per cent in 2002 and 5.1 pe r cent in 2003.  The first phase of Viet Nam's tax 
reform programme had helped in raising the tota l tax collected to GDP ratio from 13.1 per cent in 
1991 to 22.6 per cent in 1995.  The second phase of the programme had focussed on streamlining the 
tax rate structure, non-discrimina tion, a broadening of the tax base , improved tax administration, and 
the introduction of value-added tax (VAT) to repl ace a turnover tax.  The main taxes levied in 
Viet Nam were corporate income tax; Agricultura l Land Use tax; a Tax on th e Transfer of Land Use 
Rights; Natural Resources tax (Roya lties); Land and Housing tax; (Pers onal) Income tax; VAT; Special 
Consumption tax (Excise tax); and im port and export duties.  In additi on, the Government levied fiscal 
charges such as land rent, water charges, a slaught ering tax (abolished in 1999) , business licensing tax, WT/ACC/SPEC/VNM/4/Rev.1 
Page 4  
 
property registration fees and trans portation fees.  The total revenue from taxes, fees, charges and other 
levies as a percentage of GDP had amounted to 22.1 per cent in 2002 and 21.9 per cent in 2003.   
12. Corporate income tax was levied in accordan ce with the amended Law on Corporate Income 
Tax, enacted by the National Assembly on 17 June 2003 and in effect since 1 January 2004, having 
replaced the Law on Corporate Income Tax of 10 Ma y 1997.  The amended Law stipulated a general 
tax rate of 28 per cent and preferential rates of 10,  15 and 20 per cent, applied to both domestic and 
foreign invested enterprises.  The amended Law ha d also revoked a provision refunding the amount of 
corporate income tax corresponding to reinvested income and the amount of withholding tax according to Articles 42 and 43 of the Law on Forei gn Investment in Viet Nam.  The Agricultural 
Land Use tax had been levied since 1 January 19 94 on all individuals and entities using land in 
agricultural production.  Households using land in  excess of established standard acreage paid an 
additional tax equal to 20 per cent of the basic ra te.  The land and housing tax was levied on houses, 
residential land and construction sites.  Howeve r, the housing tax had remained temporarily 
uncollected.  The amended Law on Corporate Inco me Tax had revoked a provision on taxes on the 
transfer of land use rights imposed on trading units  according to the Law on Taxes on the Transfer of 
Land Use Rights.  According to the amended Law, inco me of trading units arising from the transfer of 
land use rights were now subject to corporate income  tax, while income arising from the transfer of 
non-business land use rights of individuals were subj ect to personal income tax as stipulated by the 
laws.  The Law on supplements of and amendments to some Articles of the Tax on the Transfer of 
Land Use Rights, effective since 1 January 2000, provi ded for a tax rate of 2 per cent on land used in 
agricultural, forestry and aquatic production, and 4 per cent on land used for residential, construction 
and other purposes.  The natural resources tax was applied in accordance with the amendments to the 
Ordinance on Natural Resources Tax of 30 March 1990,  effective since 1 June 1998.  The Ordinance 
provided for tax rates varying from 1-8 per cent on metal minerals, coal and precious gems, 0-
25 per cent on oil and gas, 1-5 per cent on non- metal minerals, 1-10 per cent on natural marine 
products, 1-40 per cent on natural forest products , 0-10 per cent on natural water, 10-20 per cent on 
swallow's nests, and 0-10 per cent on other natural resources.  The tax was applied to all types of 
projects, except when the Vietnamese partner in a joint venture had contributed the registered capital 
in the form of natural resources. 
13. Legislation on personal income tax - the Ordi nance on Income Tax of High Income Earners 
of 27 December 1990, amended on 1 June 1994 – distinguished between Vietnamese residents, 
foreign residents in Viet Nam, and Vietnamese c itizens working abroad.  Tax rates for Vietnamese 
residents ranged from zero to 60 per cent with a thr eshold of 1.2 million Dong, while foreign residents 
and Vietnamese citizens working abroad were taxed at rates from zero to 50 per cent with a threshold  WT/ACC/SPEC/VNM/4/Rev.1 
 Page 5 
 
 
of five million Dong (8 million Dong since 30 June  1999).  Legislation introducing the various types 
of taxes contained provisions on tax exemption or tax reductions. 
14. He added that the Ordinance on Income Tax of High Income Earners of 1990, amended in 
1994, had been replaced by a new Ordinance on Pers onal Income Tax in 2001, which introduced a 
new threshold for permanently taxable income of 3 million Dong per month for Vietnamese residents 
and 8 million Dong for foreign residents and Vietna mese citizens working abroad.  Tax rates for these 
subjects would range from 0 to 50 per cent.  Other tax laws would also be amended to make them 
compatible with the Law on Value-Added Tax and the Law on Corporate Income Tax.  He confirmed 
that new tax rulings were not applied retroactively. 
15. A Member was concerned about very high pe rsonal income tax rates in Viet Nam and 
considered this a major investment disincentive.  The representative of Viet Nam replied that the tax 
system was under review with a view to removing de fects in the current system.  The objective was to 
offer tax paying workers appropriate incentives comp atible with international norms and practices. 
Foreign exchange and payments  
16. The representative of Viet Nam said that Viet Nam had replaced a fixed exchange rate system 
with a managed float flexible exchange rate mechanism in 1989.  Fore ign exchange transaction 
centres had been opened at the end of 1991, and an  inter-bank currency market for commercial banks 
had been established in October 1994.  The State Bank of Viet Nam monitored the balance-of-payments and foreign exchange r eserves position of Viet Nam, and the State Bank could intervene in 
the market as necessary.  The State Bank publishe d the average transaction exchange rate of the 
Vietnamese Dong against the U.S. dollar in the inte r-bank foreign exchange market on a daily basis.  
Viet Nam had normalized its financial relations with the International Monetary Fund (IMF) in 
October 1993.  In order to prepare for the acceptan ce of the obligations under Article VIII of the 
Fund
's Articles of Agreement, Viet Nam had been gr adually meeting the requirements mentioned in 
Article VIII.   
17. The convertibility of the Vietnamese Dong had been mentioned as an objective in 
Government Decree No. 05/2001/ND-CP of 17 January  2001, which had amended and supplemented 
Government Decree No. 63/1998/ND-CP on Foreign Exchange Management of 17 August 1998.  
Controls on current account transactions had been liber alized.  Pursuant to this Decree, (i) residents 
and non-residents were allowed to open and mainta in foreign exchange accounts with authorized 
banks in Viet Nam; (ii) Vietnamese citizens residi ng in Viet Nam were allowed to purchase, transfer 
and carry foreign exchange abroad for purposes su ch as tourism, education, medical treatment, 
payment of membership fees, and other charges fo r the purposes of providing support or inheritance WT/ACC/SPEC/VNM/4/Rev.1 
Page 6  
 
to family and relatives abroad, upon presentation of relevant documents in accordance with the 
regulations of the State Bank; (iii) foreign reside nts having legal income in foreign currency were 
permitted to transfer or carry the money out of Vi et Nam, and income in Vietnamese Dong could be 
converted into foreign currency at authorized banks upon presentation of re levant documents and a 
certificate that all financial obligations in accordance  with the laws had been fulfilled.  Pursuant to 
Circular No. 04/2001/TT-NHNN on Foreign Exchange Management of foreign-invested enterprises 
and parties to business cooperation contracts (BCC ) of 18 May 2001, foreign investors would be 
permitted to transfer abroad profits and ot her legal income upon presentation of relevant 
documentation to the authorized banks, i.e. the Me morandum of the Board of Directors (or Project 
Management Unit in the case of a BCC) on the distribution of profits (or distribution of revenue in case of a BCC) and a certificate from the competent tax authorities testifying that all financial 
obligations to the State of Viet Nam had been fulf illed.  Foreign investors would also be permitted to 
transfer legal capital or reinvested capital due to termination or liquidation before expiry date upon 
presentation of relevant documents - i.e. the deci sion on dissolution of the enterprise (or Decision on 
termination of a BCC), including a statement of liqui dation for terminated projects, and the certificate 
issued by the competent tax aut horities - to the authorized banks. 
18. Some Members noted that Viet Nam had imposed  obligations to surrender foreign exchange 
in 1998.  Viet Nam also appeared to maintain me asures at odds with Articles XI and XVI (footnote 8) 
of the GATS, and Viet Nam was asked to reconsider these measures. 
19. The representative of Viet Nam replied that, due to the impact of regional monetary and 
financial crises, Viet Nam had introduced temporar y obligations to surrender foreign exchange in 
1998 with the aim of concentrating foreign currency in the banking system to meet essential needs for 
foreign currency in the economy.  Viet Nam had re laxed this surrender requirement continuously as 
the economic situation had improved.  The requi rement had been reduced from 80 per cent to 
50 per cent in 1999, 40 per cent in early 2001, and 30 per cent in May 2002.  He added that the 
obligatory foreign currency surrender ratio applicable to current transactions of  resident economic and 
social entities had been set at zero per cent in accordance with the Prime Minister's Decision No. 
46/2003/QD-TTg, issued on 2 April 2003.  Concerning Article XI and footnote 8 to Article XVI of 
the GATS, Viet Nam had removed almost all rest rictions on current international transfers and 
payments relating to current transactions.  In r espect of capital transactions, Viet Nam had relaxed 
capital transfers by foreign investors and foreign borrowing by resident organisations.  The State Bank of Viet Nam was currently working with the Intern ational Monetary Fund (IMF) to confirm that Viet 
Nam had completed fully the obligations under Ar ticle VIII of the IMF Charter on current account 
payments and international remittances.    WT/ACC/SPEC/VNM/4/Rev.1 
 Page 7 
 
 
20. At present, Viet Nam only maintained restri ctions on (i) capital transfers abroad for 
investment by resident organisations, which were subject to approval by the competent agencies and 
within the amount of foreign currency owned by th em; and (ii) payment and repayment of foreign 
loans by resident organisations, which were perm itted only when their loan agreements had been 
certified by the State Bank of Viet Nam.  However, according to Article XII of the GATS (Restrictions to Safeguard the Balance of Payments),  such restrictions could be considered acceptable 
as Viet Nam was facing difficulties in its internationa l balance of payments.  The registration with the 
State Bank was a procedural matter maintained for statistical purposes and in order to manage the 
overall amount of foreign commercial loans by en terprises.  Asked about present requirements and 
restrictions on the repayment of loans and capital investments abroad by Vietnamese enterprises, he 
added that according to Decree No. 22/1999/ND-CP en terprises investing abroad were required to (i) 
obtain an overseas investment licence from the Mini stry of Planning and Investment; (ii) open a 
foreign account with an authorized bank and chan nel all remittances through this account; and (iii) 
register the opening of the account and investment ca pital transfers with a bank branch in the province 
or city of its head office.   
21. Some Members considered a requirement that each foreign company should maintain 
equilibrium between inflows and outflows of foreig n currency, as prescribed in Article 33 of the Law 
on Foreign Investment, an impediment to the commercial activities of foreign investors and 
recommended that this requirement be eliminated. 
22. The representative of Viet Nam replied that th e foreign exchange self-balancing requirement 
had been eliminated pursuant to the Law on Amendm ent to and Supplement of some Articles of the 
Law on Foreign Investment in Viet Nam, approve d by the National Assembly on 9 June 2000.  He 
confirmed that Viet Nam had no intention to re introduce such a requirement.  The amendments 
allowed foreign invested enterprises and parties to  business cooperation contracts (BCC) to purchase 
foreign currency at authorized banks to finan ce current, capital and other permitted types of 
transactions. 
23. He added that his Government was consid ering guaranteeing the balancing of foreign 
currency needs for foreign investors investing in especially important projects identified in 
government programmes, and supporting foreign curre ncy balancing for infrastructure projects and 
some other important projects in case the authorized banks could not meet all foreign currency needs.  Detailed provisions were specified in Decree No . 24/2000/ND-CP of 31 July 2000 regulating the 
implementation of the Law on Foreign Investment  in Viet Nam and in Government Decree 
No. 27/2003/ND-CP of 19 March 2003.   Under certain circumstances, and subject to approval of the WT/ACC/SPEC/VNM/4/Rev.1 
Page 8  
 
State Bank of Viet Nam, foreign invested ente rprises were permitted to open foreign exchange 
accounts abroad.   
Investment regime  
24. The representative of Viet Nam said that the National Assembly had promulgated the Law on 
Companies and the Law on Private Enterprises in 1990, and that these laws had been considered 
important milestones in the economic reform process in Viet Nam.  During the following ten years, 
about 40,000 new enterprises with an aggregat e registered capital of 21,000 billion Dong 
(approximately US$1.5 billion) had been establishe d.  These enterprises had created employment for 
more than 500,000 people.  In addition, more th an 1.5 million business households, a distinctive type 
of business guided by Decree No. 66/HDBT of 2 March 1992, employed some 3 million labourers.   
25. The legal and regulatory framework had been fu rther improved in the 1990s and, as a result, 
some provisions of the Law on Companies an d the Law on Private Enterprises had become 
incompatible with other applicable laws, which ha d hampered the effective enforcement of related 
regulations.  The National Assembly had therefor e passed a new Law on Enterprises, superseding the 
Law on Companies and the Law on Private Enterpri se, in June 1999.  The Law on Enterprises had 
entered into force on 1 January 2000.  The main  changes brought forward by the new Law were 
broader eligibility to set up and contribute to ente rprise capital; simplified administrative procedures, 
including single-stop registration of new businesses; and more business autonomy.  Business sectors were divided into (i) prohibited sectors; (ii) c onditional business sectors; (iii) sectors requiring legal 
capital; (iv) sectors requiring professional licence; (v ) sectors reserved for partnerships or private 
enterprises; and (vi) other sectors.  Enterprise re gistration in other sectors was automatic.  Minimum 
legal capital requirements for the establishment of en terprises stipulated in the Law on Companies had 
been abolished, except in some financial service s sectors, when the Law on Enterprises had entered 
into force in 2000.  The number of newly register ed enterprises had been increasing rapidly since the 
promulgation of the Enterprise Law.  By Sept ember 2003, some 72,600 new enterprises had been 
registered, adding to the 45,000 enterprises regi stered during 1991-1999 and thereby raising the 
number of privately-owned, registered enterprises in Viet Nam to about 120,000.    
26. The Law on Foreign Investment of 29 Decemb er 1987 together with its amendments and 
additions of 1990, 1992, 1996 and 2000 and other guiding docu ments mentioned therein constituted 
the legal framework for foreign direct investment (F DI) activities in Viet Nam.  In addition, with a 
view to creating a comprehensive legal framework for FDI, Viet Nam had signed and acceded to various bilateral and/or multilatera l arrangements on investment, includi ng bilateral agreements on the 
encouragement and protection of investment with  46 countries and territories, agreements on the  WT/ACC/SPEC/VNM/4/Rev.1 
 Page 9 
 
 
avoidance of double taxation with 40 countries and territories, the Framework Agreement on ASEAN 
Investment (AIA), the MIGA and the New York Conven tion, etc.  These international treaties were an 
integral part of Viet Nam 's legal framework for FDI in Viet Nam.  The Ministry of Planning and 
Investment was the government authority regulating investment activities.  Approval procedures for 
foreign invested projects were stipulated in the Law on Foreign Investment, in Government Decree 
No. 24/2000/ND-CP of 31 July 2000, and in Decree No. 27/2003/ND-C P of 19 March 2003 on 
amendment of and addition to a number of Articles  of Decree No. 24/2000/ND-C P, guiding in detail the 
implementation of the Law on Fore ign Investment in Viet Nam.  Viet Nam encouraged foreign 
investment into almost all economi c areas.  Investments in some sectors were subject to certain 
conditions (specified in Decree No. 24/2000/ND-CP ).  As of December 2003, 4,412 foreign 
investment projects, with a total registered capital of US$41.7 billion, operated in Viet Nam.  Foreign 
investment projects accounted for 18 per cent of the total invested capital, 31 per cent of Viet Nam's 
export revenue and 37 per cent of industrial output, contributing nearly 14 per cent of Viet Nam's GDP.  Foreign investment projects had created some 620,000 jobs directly, and several hundred 
thousand jobs were indirectly dependent on these projects.   
27. Due to its low level of economic development, Viet Nam applied a wide range of incentives 
to stimulate economic development and employment.  The main elements of this policy were wide 
sectoral coverage; encouragement of a wide range of investment forms with no ceiling on the capital held by foreign investors; priority accorded to pr ojects in agriculture and the production of consumer 
goods; encouragement of export oriented production,  including import duty exemptions and/or 
drawback on imported inputs used in the production of  exports; special incentives for investment in 
disadvantaged regions; import duty exemptions on m achinery and equipment, means of transportation, 
and materials used in construction for joint ventur e enterprises; tax holidays; and low tax on profit 
repatriation.  Foreign investment projects were subject to minimum wage regulations.  Minimum wages 
had been stipulated in local currency since 1 July 1999. 
28. In accordance with the provisions of Decree No. 27/2003/ND-CP of 19 March 2003, providing 
for the amendment of and addition to a number of  Articles of Decree No. 24/2000/ND-CP, foreign 
investment in some sectors was only allowed in the form of joint venture or business co-operation 
contract.  The sectors listed were exploitation a nd processing of oil and gas and precious and rare 
minerals; consultancy services (except engineerin g services); air, railway and sea transportation; 
public passenger transportation; airport and por t construction (except for BOT, BTO and BT 
projects); maritime and aviation business services; culture (except for projects for the printing of 
technical materials, packaging and labels, and prin ting on textile and garments , leather and footwear, 
printing of computer graphics onto animated films, and entertainment and sports areas); afforestation 
(except for indirect afforestation via Vietnamese organizations, family househ olds and individuals); WT/ACC/SPEC/VNM/4/Rev.1 
Page 10  
 
travel tours; production of industrial explosives;  and consultancy services (except for technical 
consultancy).  The Ministry of Planning and Invest ment would coordinate with ministries, branches 
and people's committees of provinces and cities under central authority to submit the listed sectors to 
the Prime Minister for consideration and promulgation.   
29. He added that his Government had abolishe d most regulations discriminating between 
domestic and foreign investment, and there were ge nerally no substantial differences between these 
two categories of investment, even concerning th e establishment, maintenance, management and 
control of enterprises.  Notably, the Prime Mini ster had issued Decision No. 53/1999/QD-Ttg, 
unifying a number of investment-related fees and ch arges.  Among the fees and charges currently paid 
by foreign invested enterprises were fees and charges regulated by the Ordinance on Fees and 
Charges, as well as social insurance,  medical insurance and other insura nce fees.  Pursuant to the Law 
on amendments and supplements to some Articles of the Law on Foreign Investment of 9 June 2000, 
foreign-invested enterprises were permitted to cha nge the form of investment and divide, de-merge, 
consolidate or merge with other enterprises.  Exis ting joint-ventures could be  allowed to transform 
into wholly-owned foreign capital enterprises unde r certain conditions pursuant to Government 
Decree No. 24/2000/ND-CP of 31 July 2000. 
30. Foreign invested enterprises were encouraged to manufacture goods for export.  Tax 
incentives, i.e. preferential rates of  corporate income tax (10, 15 or 20 per cent against the standard 
rate of 28 per cent) and tax reducti ons or exemptions with up to 9 year duration, could be granted to 
enterprises depending on their export ratio or area of  investment.  Foreign invested enterprises were 
also allowed to purchase goods not produced by th emselves in the domestic market to be processed 
for export or exported without processing (excep t products listed as prohibited to trade for 
exportation, or conditionally exported goods).  En terprises were remitted import duties on materials 
and inputs actually used in the manufacturing of exports of finished goods.  The Government 
maintained additional measures granting more favour able conditions for export-oriented enterprises. 
31. Labour intensive industries were entitled to tr ade-related privileges pursuant Article 15 of 
Government Decree No. 51/1999/ND-CP of 8 July 1999 providing details on implementation of the 
amended Law on Domestic Investment Promotion (Law No. 3/1998/QH 10), under Government 
Decree No. 24/2000/ND-CP of 31 July 2000 guiding the implementation of the Law on Foreign 
Investment, Government Decree No. 27/2003/ND-CP of 19 March 2003 on amendment of and addition to a number of Articles of Decree No. 24/2000/ND-CP, as well as Government Decree No. 164/2003/ND-CP of 22 December 2003 guiding the implementation of the Law on Corporate 
Income Tax.  Incentives could be accorded in the form of reduction or exemption from land rents or 
the land use tax, and extended periods of co rporate income tax exemption or reduction.   WT/ACC/SPEC/VNM/4/Rev.1 
 Page 11 
 
 
32. Some Members considered the granting of a ta x preference upon the fulfilment of an export 
requirement to be contrary to WTO provisions, most  notably Article 3 of the Agreement on Subsidies 
and Countervailing Measures, and requested Viet Na m to provide a timeframe for the elimination of 
this incentive.  The representative of Viet Nam rep lied that his Government had examined its policies 
to identify measures inconsistent with WTO provi sions.  Although Viet Nam did not consider an 
export ratio requirement to be contrary to WTO ru les, Viet Nam would remove this requirement upon 
accession in an effort towards improving the business environment in Viet Nam.   
33. Some Members noted that foreign investors were facing various serious difficulties in 
Viet Nam.  These difficulties were  caused by complicated and burdensome procedures, and included 
governmental investigation and a public tender require ment for the construction of factories, and a 
requirement in Article 14 of the Law on Foreign Inv estment that personnel and financial decisions in 
joint-venture companies be unanimous.  Viet Nam's laws and regulations also encouraged increased 
Vietnamese participation in joint-venture compani es, thereby restricting substantially a foreign 
investor 's participation.  Conditions on the right to us e land remained inconvenient and insufficient for 
foreign investors, limiting the possibilities for investors to raise funds by mortgaging land.  In 
addition, the land register system was consider ed imperfect and the methods for calculating land 
prices were not transparent.  In centives accorded to foreign invest ment in Viet Nam's laws and 
regulations were not available automatically, but subject to case-by-case approval by the authorities.  
Furthermore, Viet Nam applied a discriminatory la bour system against forei gn-invested companies, 
which were requested to hire employees through "employment promotion centres" and pay salaries of 
local workers in U.S. dollars.  Viet Nam was en couraged to continue deregulating complicated 
procedures, in particular by introducing a one-s top service for investment, improving the laws and 
regulations regarding land and exte nding land use rights, ensuring that preferential benefits would be 
granted to foreign companies without excepti on, and by making improvements to address 
discrimination in labour matters.  Viet Nam was al so invited to allow stock-holding companies as one 
form of investment, and urged to ensure that all company-specific information obtained through the 
licensing procedures would remain confidential.  A Member highlighted specific problems in the mining sector, including overlapping regulatory responsibilities between central and provincial 
authorities, as well as Viet Nam's practice to gran t investment licences at the development stage, 
rather than at the exploration stage,  which was the international norm.   
34. The representative of Viet Nam replied that tender requirements aimed at ensuring fair 
competition, equality and transparency.  Government Decree No. 88/1999/ND-CP of 1 September 1999 on the issuing of a Procurement Re gulation and its amendmen ts of 2000 and 2003 
had introduced more transparent, specific and simp le tender procedures.  In spections of construction 
sites guaranteed the quality of the works in accordance with Viet Nam
's construction standards.  A WT/ACC/SPEC/VNM/4/Rev.1 
Page 12  
 
new Construction Law has been issued on 10 December 2003, entering into force on 1 July 2004.  
Following the passage of this Law, three Decrees w ould be issued to guide the implementation of the 
Law.  These included a Decree on construction qualit y management, a Decree on the management of 
construction investment projects, and a Decree on construction planning and management.  These 
Decrees were expected to be drafted and submitted to  the Government for consideration during 2004.   
35. The representative of Viet Nam considered unani mity among the parties in a joint-venture an 
important contribution to its success.  He added that the Law on Foreign Investment had been 
amended in 2000 to narrow further the scope of  matters requiring unanim ity among joint venture 
parties.  He stressed that, according to this Law, regulations encouraging gradually increasing 
Vietnamese participation in join t-venture enterprises or allowing Vietnamese enterprises to purchase 
part of the capital of a wholly foreign-owned en terprise were not binding, and should be applied 
strictly on the basis of mutual agreement between th e joint venture parties or with the consent of the 
owner of the wholly foreign-owned enterprise.  Land was subject to pub lic ownership and State 
administration in Viet Nam.  Thus, even Vietnamese  nationals could not own or mortgage land.  The 
amended Law on Foreign Investment nevertheless stated that a foreign invested enterprise was 
permitted to mortgage assets associated with land an d the value of land use rights to secure loans from 
all credit institutions permitted to operate in Viet Nam.  The Law also held Provincial Committees and 
Vietnamese partners responsible for establishing clear  procedures relating to land use rights and, if 
necessary, offering compensation.  Foreign invested  enterprises could lease land in connection with 
investment projects.  The duration of the lease should normally not exceed 50 years.  In cases 
stipulated by the Standing Committee of the Nationa l Assembly, the Government could grant leases 
with maximum 70 year duration.  In his view, Viet  Nam's land lease regulations, which were applied 
in a non-discriminatory manner between domestic a nd foreign investors, were not obstructing 
business activities, and Viet Nam had no plans to revi se these regulations.  He added that the National 
Assembly had adopted the Land Law on 26 November 2003.   
36. The representative of Viet Nam noted that Vietna mese enterprises were also required to apply 
for investment incentives, and that Government De cree No. 24/2000/ND-CP listed detailed criteria for 
the granting of preferential treatment to foreign in vestors.  As to labour matters, the newly amended 
Labour Code, which had entered into force in Janua ry 2003, allowed foreign invested companies to 
hire local personnel directly without going through employment promotion centres.  Wage payments 
to Vietnamese employees were effected in acco rdance with Decision No. 708/1999/QD-BLDTBXH 
of 15 June 1999.  He stressed that his G overnment respected and protected investors
' right to 
confidentiality of their business contracts, and in tended to address problems identified at all State 
agency levels.    WT/ACC/SPEC/VNM/4/Rev.1 
 Page 13 
 
 
37. He added that on 19 March 2003 his Governme nt had issued Decree No. 27/2003/ND-CP 
providing for amendment of, and addition to, a number of Articles of Decree No. 24/2000/ND-CP 
with a view to simplifying procedures further.  The Decree expanded the scope of activities where 
foreign investment was encouraged.  The group of pr ojects subject to investment registration – which 
was more open than the investment licensing regime – had been enlarged, the criteria for the issuance 
of investment licences had been clarified, the list of sectors subject to conditional investment licences 
had been narrowed, and restricti ons on labour recruitment and capita l contributions in the form of 
technology transfer had been abolished.  Vi et Nam had authorized provincial committees and 
management committees of industrial parks to grant licences to speed up procedures, and the Ministry 
of Planning and Investment was considering to decen tralize further the authority to issue investment 
licenses to provincial people’s committees and industr ial zones’ management boards.  He noted that 
licences were granted within a week in the province of  Binh Duong.  Efforts to establish a "one stop" 
agency for foreign investment were ongoing.  On 6 June 2003, his Government had issued Decree 
No. 61/2003/ND-CP mandating the Agency of Foreign Investment within the Ministry of Planning and Investment to administer foreign investment ac tivities uniformly throughout Viet Nam.  Together 
with other concerned ministries and agencies, the Mi nistry of Planning and Investment was reviewing 
existing regulations with the objective of abolis hing provisions, procedures and licenses considered 
out-dated, overlapping or impeding the operation of FDI enterprises.  The Ministry of Planning and Investment had submitted a proposal to the Prime Minister which would allow provincial People's 
Committees and the management boards of industri al zones to grant investment licences.   
38. On 15 April 2003, his Government had issued Decree No. 38/2003/ND-CP, providing for the 
transformation of foreign invested enterprises into join t stock companies.  In addition, with a view to 
setting up a "level playing field" for foreign and domestic investors, Viet Nam was moving forward 
on creating a common Investment Law to be applied for both domestic and foreign investors.  His 
Government had also authorized the Ministry of Planning and Investment, the Ministry of Justice and 
other relevant ministries and agencies to consider the elaboration of a uniform Enterprise Law which would apply to all enterprises irrespective of economic  sector or form of ownership.  The draft Laws 
would be submitted for consideration by the Nationa l Assembly at its session in November 2004.  As 
to foreign investment in mining, Viet Nam was revising the Mineral Law to bring it closer to 
international practice.  According to Govern ment Decree No. 76/2000/ND-CP of 15 December 2000 
(Article 52.4), investment licences covering expl oration, exploitation and processing activities were 
granted to foreign individuals and organizations, and joint vent ures.  Management of foreign 
investment in mineral exploitation had been tr ansferred to local authorities to improve the 
effectiveness of FDI management in this sector.   WT/ACC/SPEC/VNM/4/Rev.1 
Page 14  
 
State ownership and privatization 
39. The representative of Viet Nam said that Viet Nam was shifting from a system of central 
planning to a market-based economy.  Resolution No.51/2001/QH10 of 25 December 2001, which 
amended the 1992 Constitution, recognized seven types of  ownership – State-owne d, collective, private 
individual, households, private capita list, State capitalist and foreign investment – as equal before the 
laws.  State-owned enterp rises had accounted for 41 per cent of GDP in 1996, and 39.5 per cent of GDP 
in 2000.  All enterprises operating legally on the te rritory of Viet Nam and/or under the laws of 
Viet Nam were recognized and prot ected by the laws, including protec tion against nationalization.  The 
laws of Viet Nam did not yet recognize private ow nership of land, forests and water resources, but 
only recognized the right to use these properties.  Sustainable land use rights for land users, including the transfer of land-use rights, had been recogni zed by the State since 1993.  The State of Viet Nam 
recognized the ownership to fixed assets (except land) of foreigners during their residency in Viet Nam. 
40. The State-owned sector had been  restructured and reorganized since 1986, and in particular 
since 1991.  Their assets had been re-evaluated and a udited.  The State had abo lished direct monitoring 
and administration of enterprise s by governmental agencies.  Th e management of State-owned 
enterprises had been given autonomy, and were held  accountable for the performance of their business 
operations.  In the past, the profit s of State-owned enterprises had be en transferred to the State budget, 
and losses had been covered by subsidies from the St ate.  At present, insolvent State-owned enterprises 
would be treated as any other enterprises under th e Law on Bankruptcy, in force since 1 July 1994. 
41. Economic co-operatives were recognized and pr otected under the Law on Cooperatives.  In 
particular circumstances, co-operatives could assign land and capital goods to co-operative member 
households.  Cooperatives were mainly located in ru ral areas and engaged in agricultural production, 
handicrafts, rural transport and credit funding.   The Government assisted cooperatives through 
measures such as exemption from land use tax, tax ex emptions or reductions, and reduced tuition fees 
at public training institutions.  Proprietorships and h ouseholds played an import ant role in small scale 
production in Viet Nam.  The production of private enterprises and companies acc ounted for around 
8 per cent GDP.  In addition, business households accounted for approximately 9 per cent of GDP. 
42. Pursuant to the Prime Minister
's Directive No. 20/1998/CT-TTg of 21 April 1998 and Decree 
No. 64/2002/ND-CP of 19 June 2002, State-owned ente rprises had been transformed into joint-stock 
companies ("equitized").  Restrictions had been lif ted on the proportion of initially issued shares that 
individuals and legal entit ies could purchase, and the percentage of shares that had to be sold by 
auction to outsiders through financ ial institutions.  The Prime Mini ster had promulgated Decision 
No. 58/2002/QD-TTg on 26 April 2002.  The Decision sp ecified the criteria for classifying enterprises  WT/ACC/SPEC/VNM/4/Rev.1 
 Page 15 
 
 
as State-owned and State corporations.  State-owned general corporations would be merged, dissolved 
or transformed into individual enterprises.  Only  a few qualified general corporations would be 
retained and restructured.  He added that the Stat e had taken measures to accelerate the "equitization" 
of certain State-owned enterprises.  Asked to de fine the concept of "equitization", he said that 
Viet Nam considered the process a step towards the restructuring, upgrading and enhancement of the 
efficiency of State-owned enterprises, whereas revenue to the State budget was not the ultimate 
purpose.  The process foresaw diversity of ownership, including by the State and the employees, and 
was implemented with consideration to the interests of the employees.   
43. Pursuant to the Prime Minister's Directive, ministries and agencies had classified and 
arranged State-owned enterprises in three groups; (i ) enterprises which would remain State-owned, 
(ii) enterprises in which the State would reta in special interest or controlling shares and 
(iii) enterprises in which the State would dispose of all its shares.  Group 1 were State-owned 
enterprises considered to play an important role  in the economy, and therefore 100 per cent State-
ownership should be retained.  Certain public-interest  State-owned enterprises, specified in Article 1 
of Government Decree No. 56-CP of 2 Octobe r 1996, were excluded from "equitization", including 
enterprises in the defense industry,  and public-interest enterprises whic h derived at least 70 per cent of 
their revenue from urban public works and public tr ansportation; infrastructure such as railway, road, 
waterways, airport, air traffic control, maritime safety, and ship navigation in and out of harbours; 
technical inspection of road and waterway mean s of transportation; examination, control and 
distribution of radio frequency; exploitation and prot ection of irrigation works; production of original 
breed plants and animals; publication and distri bution of school books, political publications and 
newspapers; production and distribut ion of newsreels, documentary films, and films for children; 
cinematographic services in the highlands, border regions and island areas; the production and supply 
of salt; and the production and suppl y of other products and services in accordance with the State 's 
social policies.  Group 1 also included enterprises which manufactured produc ts or provided services 
under State monopoly, i.e. explosive materials, toxic chemicals, radioactive materials, the printing of 
money and paper of monetary value (valua ble notes), and nationa l and international 
telecommunications gateways and networks.  Notw ithstanding their inclusion in Group 1, public-
interest State-owned enterprises could be equ itized upon approval of the Prime Minister, for 
enterprises with capital exceeding 10 billion Dong (US $600,000), or decisions taken by a Minister, or 
the Chairmen of People 's Committees of provinces or cities, for enterprises involving capital equal to 
or less than 10 billion Dong. 
44. Group 2 were enterprises in which the State should retain special interest or controlling shares 
when equitizing, as their businesses were related secu rity or defence, the activities were considered 
vital to the economy, involved the supply of essen tial products, or activities which his Government WT/ACC/SPEC/VNM/4/Rev.1 
Page 16  
 
believed the private sector was unwilling or unable to  engage in.  Group 2 included public-interest 
State-owned enterprises with capital of more than 10 billion Dong; enterprises engaged in exploitation 
of precious and rare ores, and enterprises engage d in large-scale mineral exploitation; providing 
technical services relating to oil and gas exploita tion; production of fertilizers, insecticides, 
pharmaceuticals and pharmaceutical chemicals; la rge-scale production of non-ferrous metals and 
precious and rare metals; large-scale electricity production, electricity transmission and distribution; 
aircraft repair; post and telecommunications services;  railway, airway and maritime transportation; 
printing, publishing and large-scale production of alc ohol, beer, and cigarettes; investment banks and 
banks for the poor; and enterprises engaged in large- scale trading of petrol.  Joint-stock companies 
were required to comply with the provisions of the Company Law (now Enterprise Law).  At least 
20 per cent of the enterprises in Group 2 subjec t to self-accounting had been targeted for 
"equitization" during 1998-99 in accordance with Directive No. 20/1998/CT-TTg of 21 April 1998.  
Group 3 consisted of enterprises in which the State di d not hold a controlling interest, having disposed 
of all or part of its shareholdings.   
45. Foreign investors were allowed to participat e in the equitization process by purchasing shares 
of State-owned enterprises in sectors identified in the Prime Minister Decision No. 36/2003/QD-TTg 
of 11 March 2003.  The sectors listed were tex tiles and garments; footwear; leather-processing; 
production and processing of agricultural, forestry an d marine products; produc tion of other consumer 
goods; production of construction materials; road tr ansportation, inland wate rway transportation and 
container merchandise transportati on; production of stationery and teaching equipment for schools; 
production of toys; commerce, hotel and hotel-related services; and mechanical engineering manufacturing.  The regulation did not distinguish between enterprises producing for the local market 
or for exportation.  Moreover, Viet Nam did not prohibit the establishment of foreign invested enterprises competing with State-owned enterprises undergoing equitization.   
46. For equitized Group 1 and Group 2 enterprises, the total value of shares sold to foreigners 
should not exceed 30 per cent of a joint-stock company
's registered capital.  An auction would be 
required if the value of the shares bought by fore igners exceeded this thr eshold, unless the company 
would be transformed into an FDI enterprise and thus governed by the Law on Foreign Investment.  
Shares purchased by foreign investors were paid in local currency.  Foreign exchange was converted 
at the average inter-bank exchange rate announced by the State Bank of Viet Nam at the time of the 
sale.   
47. Equitized enterprises benefitted from a 50 per cent reduction in corporate income tax for 
two years after the transformation had taken place.  The fees associated with the transformation were  WT/ACC/SPEC/VNM/4/Rev.1 
 Page 17 
 
 
deducted from the State capital.  Enterprise empl oyees were entitled to buy shares at a discount, and 
cash bonuses were also distributed to the employees.   
48. A Member requested Viet Nam to provide a table detailing the progress in privatization and 
equitization, including data on completed transforma tions as well as future plans by major sector 
and/or size of enterprise.   
49. In reply, the representative of Viet Nam said that, up to 31 December 2003, Vietnam had 
"equitized" and diversified the owne rship of 1,718 enterprises and units.  His Government had issued 
Decree No. 103/1999/ND-CP of 10 September 1999 on the assignment, sale, contracting out, and 
leasing of State-owned enterprises.  By the end of 2000, about 100 State enterprises had been assigned, sold, contracted out or leased.  According to the 2002-2005 Plan for the restructuring and 
change of ownership of State-owned enterprises,  some 2,053 enterprises were expected to be 
equitized, while 200 were to be sold, 278 to be merged and 108 to be acquired.  During 2003, 537 
State-owned enterprises had been equitized and 67 had been assigned, sold or contracted out.  
Following the ownership transformation, most of  these enterprises were currently operating more 
efficiently and contributing to employment and inco me generation for their employees.  He added that 
important policy adjustments were expected in the n ear future, including the restructuring of current 
public-interest enterprises, and the identification of public goods and services to be provided by any 
enterprise through bidding, rather than by authorization.    
Pricing policies  
50. The representative of Viet Nam said that his Government resp ected the autonomous right of 
enterprises and individuals operating legally in Viet Nam to set their prices.  Prices of most goods and 
services were determined by market forces.  The Ordinance on Price, which had come into effect on 
1  July 2002 and Decree No. 170/2003/ND-CP of 25 December 2003 guiding in detail the implementation of a number of Articles of this Ordi nance, confirmed that direct State intervention in 
pricing would be limited.  His G overnment would only use measures dire ctly affecting prices in case 
of dumping or abuse of monopoly position in order to stabilize the socio-economic environment, or to 
protect the legitimate interests of producers, consumer s and the State.  Such rates, the enterprises and 
individual businesses subject to price control, and the implementing period, were published widely in 
the media (television, newspapers and the internet ) in Viet Nam.  Since 2003, his Government had 
applied price controls only on petrol, electricity, postal and telecommunications services, air fares 
between Hanoi and Ho Chi Minh City, and potable water.    
51. The Ministry of Trade had been empowered to establish maximum import prices in 
accordance with Government Decree No. 33/CP of 19  April 1994.  Maximum import prices had been WT/ACC/SPEC/VNM/4/Rev.1 
Page 18  
 
imposed on fertilizer, petroleum, iron and steel and certain machinery and equipment.  This price 
control measure had been temporary, not applied to Viet Nam's trade on a regular basis, and was no 
longer in effect pursuant to the Ordinance on Price No. 40/2002/PL-UBTVQH10 of the Standing 
Committee of the National Assembly of 10 May 2002.   
52. A Member noted that with the introduction of Value Added Tax on 1 January 1999, the 
Vietnamese authorities had issued "guidance" to en terprises not to add VAT to the price of their 
goods.  This Member considered such "guidance"  measures unreasonable.  The representative of 
Viet Nam replied that to avoid market disturban ce his Government had issued regulations requiring 
all businesses to declare publicly the selling pr ices of their goods.  His Government required 
enterprises to review their costs and set reasona ble prices, and had been strict in preventing 
enterprises from taking advantage of the introduction of VAT to increase their prices.  This 
"guidance" had however been phased out. 
53. He added that Viet Nam was phasing out gradually  a system of dual pricing according to which 
Vietnamese residents and foreigners  were charged different prices for identical goods or services.  
Uniform telecommunications charges had been app lied since 1 October 2000.  By February 2004, 
Viet Nam had eliminated the dual pricing mech anism on domestic air fares (Decision No. 3226/QD-
CHK of 26 November 2003), telecommunication services, and port services, leaving only electricity subject to dual pricing.  According to the timetab le for adjusting electricity prices approved by his 
Government, a common electricity price would be ap plied for both Vietnamese and foreigners as from 
2005.  Price reform would be conduc ted in tandem with a reform of salaries aimed at raising people's 
income.   
54. Some Members were pleased that Viet Nam had eliminated dual prices on many goods and 
services.  These Members encouraged Viet Nam to implement the measures foreseen to eliminate all 
dual pricing prior to accession, including for electric ity, and reminded Viet Nam that in order to meet 
WTO requirements, price controls applied to trad e should be transparent and conform to other WTO 
provisions, e.g. national treatment a nd the avoidance of prejudicial effects on imports in Article III of 
the GATT 1994.   
55. [The representative of Viet Nam confirmed that, from the date of accession, in the application 
of price controls, Viet Nam would apply such m easures in a WTO-consistent fashion, and take 
account of the interests of exporting WTO Members as provided for in Article III.9 of the GATT 1994, and in Article VIII of the General Agr eement on Trade in Services (GATS).  [He also 
confirmed that Viet Nam published the list of goods and services subject to State control and any  WT/ACC/SPEC/VNM/4/Rev.1 
 Page 19 
 
 
changes in its Official Gazette and would continue  to do so after accession.]  The Working Party took 
note of these commitments.] 
Competition policy 
56. The representative of Viet Nam said that during the period of central planning in Viet Nam, 
government agencies had controlled all State- owned enterprises operating in each sector.  
Government agencies no longer had such controlli ng power, but they were still responsible for 
sectoral development policies ("sectoral management"). 
57. Viet Nam was drafting a Competition Law for pr esentation to the National Assembly.  In the 
meantime, specific anti-trust and competition matter s had been addressed in existing legislation, 
notably in the Law on Enterprises, the Commercial Law, the Ordinance on Consumer Protection (1999), and the Ordinance on Prices (effective as from  1 July 2002).  Viet Nam had been applying 
certain measures, such as prohibition of abuse of monopolistic power and price fixing, to encourage 
fair competition.  Asked whether the new Competi tion Law, once enacted, would apply equally to 
State-owned, privatized, equitized, foreign invested and private firms, or whether wholly or partially 
State-owned firms would be allowed to retain comp etitive privileges compared to other enterprises, he 
noted that the Competition Law was still in elabora tion and invited Members to examine the latest 
version of the draft at the website of the Ministry of Trade (http://www.mot.gov.vn).   
FRAMEWORK FOR MAKING AND ENFORCING POLICIES  
58. The representative of Viet Nam said that in the unitary State of Viet Nam the National 
Assembly was the highest organ of  State and legislative power in accordance with the 1992 Constitution 
of the Socialist Republic of Viet  Nam.  The National Assembly de cided on the fundamental domestic 
and foreign policies, socio-economic policies, nationa l defense and security issues, etc.  The State 
President and Vice-President, the Prime Minister, the President of the Supreme People's Court and the Head of the Supreme People's Proc uracy were all elected by the National Assembly.  The duration of 
each National Assembly legislature was five years.  The National Assembly held two regular sessions 
each year and, whenever necessary, extr aordinary sessions w ould be convened.  
59. The Standing Committee of the National Assembly was a permanent body entitled to enact and 
supervise ordinances and resolutions.  The Standing Committee also supervised the implementation of 
the Constitution and resolutions of the National Assemb ly, as well as the activities of the executive and 
juridical branches of government and local electe d bodies.  The Standing Committee of the National 
Assembly was authorized to interp ret the Constitution, laws and ordinances, and carry out the routine 
tasks of the National Assembly  in-between its sessions. WT/ACC/SPEC/VNM/4/Rev.1 
Page 20  
 
60. The State President was elected by the National Assembly among its Deputies for a term 
similar to that of the National Assembly.  Among th e duties and powers of the State President were to 
promulgate the Constitution, laws and ordinances; to  negotiate and sign international agreements on 
behalf of the Socialist Republic of Viet Nam with  other heads of State; and to ratify or accede to 
international agreements, except in cases requiring ra tification by the National Assembly.  Pursuant to 
the resolutions of the National Assembly or the Standing Committee of the National Assembly, the 
State President could appoint, relieve from duty or dismiss the Vice Prime Minister, Ministers and 
other members of the Government, the Vice President of the Supreme People's Court, judges, and the Vice President and prosecutors of the Supreme People's Procuracy. 
61. Executive power to implement policies affec ting the economy, cultural and social life, 
national defense and security, foreign policy, etc.  rested with the Government, reporting to the 
National Assembly, the Standing Committee of the Na tional Assembly, and the State President.  The 
Government was in charge of foreign affairs.  It negotiated and signed in ternational agreements on 
behalf of the Socialist Republic of Viet Nam ex cept in cases falling under the responsibility of the 
State President, and on behalf of the Government; ratified international agre ements on behalf of the 
Government and monitored their implementation; and protected the interests of the State and 
Vietnamese organisations and citizens abroad.  The Government ensured implementation of the 
Constitution and the laws, prepared bills and draf t law amendments for approval by the National 
Assembly, issued by-laws (decrees and regulations ), and guided the implementation of laws and 
ordinances.  It exercised administrative power at all levels of the administrative system, i.e. central 
government, provinces and cities directly under the cen tral government, districts, precincts and ward 
communes.  Provincial People's Committees carried out  State administrative management and control 
over foreign economic activities within their pr ovinces pursuant to the Constitution, the Law on 
Organization of People's Councils and People's Comm ittees, and other relevant legislation.  The 
Government ensured uniform nationwide implementation of the legal system. 
62. The Prime Minister was empowered to promulgate  decisions and directiv es to implement laws, 
ordinances and law-decrees; to suspend or annul deci sions, directives, and circul ars issued by Ministers 
or other senior members of the Government, and decisions or directives issued by the People's 
Committees and by the President of the People's Co mmittees of provinces and cities under central 
management which were considered contrary to the Constitution, laws and other legal documents issued 
by higher-level State agencies; to suspend the impl ementation of resolutions issued by the People's 
Councils of provinces or cities under central management which we re considered contrary to the 
Constitution, laws and other legal documents issued  by the higher-level State agencies, and to propose 
their annulment by the Standing Committee of th e National Assembly.  The main ministries and 
agencies involved in trade and investment related policies were the Ministries  of Trade, Planning and  WT/ACC/SPEC/VNM/4/Rev.1 
 Page 21 
 
 
Investment, Finance, Foreign Affair s; the Office of the Government; and the People's Committees of 
provinces and cities directly  under central government rule. 
63. He confirmed that the National Assembly was the only body empowered to promulgate the 
Constitution and laws.  In case of conflict between pr ovisions of legally equivalent documents, the most 
recently promulgated provisions would prevail.  Pursuant to the Law on the Enactment of Legal Documents of 12 November 1996 and the Law on amen dment of and addition to a number of Articles 
of the Law on Enactment of Legal Documents adopted by the National Assembly on 
16 December 2002, the hierarchy of laws in Viet  Nam comprised - in descending order - (i) the 
Constitution of the Socialist Republic of Viet Nam, (ii) legislation issued by the National Assembly, 
including laws and resolutions, (iii) legislation issued by the National Assembly's Standing Committee including ordinances and resolutions, (iv) orders and decisions of the State President, 
(v) resolutions and decrees of the Government and decisions and instructions of the Prime Minister, 
(vi) decisions, instructions and circulars issued by  Ministers and heads of ministry-equivalent bodies, 
(vii) resolutions of the Judicial Committee of the Supreme People's Court; decisions, instructions and 
circulars issued by the Head of the Supreme People' s Procuracy, (viii) resolutions and circulars issued 
jointly by government authorities, government auth orities and socio-political organizations, and (ix) 
legislation issued by People's Councils and Peopl e Committees at different levels in order to 
implement the legislation of superior government authorities.   
64. He noted that Viet Nam's legislation neither provided for direct applicability of international 
treaties in the national legal system nor did it ban the direct application of such treaties.  The 
Ordinance on the Conclusion and Implementation of Treaties mainly addressed the classification of treaties, the process and the authority to propose, negotiate, conclude and im plement treaties, and did 
not stipulate whether a treaty was directly applicable in the legal system of Viet Nam.  However, the 
Ordinance required Vietnamese agencies proposing,  negotiating, concluding and implementing 
treaties to review domestic laws and to propose th e amendment of, addition to, revocation or issuance 
of legal documents in order to implement such treati es.  In addition, many (but not all) Vietnamese 
legal documents included a general provision that "i n case that treaties to which Viet Nam is a party 
stipulate otherwise, the provisions of those treaties shall prevail".  He added that a Law on Treaties 
was in preparation and was expected to be subm itted to the National Assembly for comment at the 
end of 2004.  He expected the new Law on Treaties would clarify further the hierarchical order of treaties in the legal system of Viet Nam.  Concer ning the application of MFN and national treatment, 
he noted that the Ordinance on Most Favoured Natio n and National Treatment in International Trade 
No. 41/2002/PL-UBTVQH10, which had entered into  force on 1 September 2002, provided for the 
general principles of non-discriminatory treatment in trade, as well as exceptions to MFN and national 
treatment in strict accordance with WTO rules.   WT/ACC/SPEC/VNM/4/Rev.1 
Page 22  
 
65. The Supreme People's Procuracy supervised the fu ll and strict observance of the law by local 
authorities and had the right to initiate public pr osecution.  Local People's Procuracy and Regional 
Military Procuracy supervised judicial activities and exercised the right to initiate public prosecution 
within their jurisdictions.  
66. Viet Nam's judicial system comprised the Supreme People's Court, local People's Courts and 
military tribunals.  The National Assembly could also decide to establish special tribunals.  The 
Supreme People's Court supe rvised and directed the judicial work of local People's courts and military 
tribunals.  The President of the Supreme People's C ourt reported to the National Assembly or, when not 
in session, to its Standing Committee and to the Stat e President.  Hearings of  the People's Courts were 
public except in cases determined by the law.  Judg ements by the Civil Courts were executed by central 
and local level bodies under uniform admini stration by the Ministry of Justice. 
67. Encouraged by some Members to improve opportuniti es for consultation prior to the passage of 
laws, and to accelerate the process of issuing guidelines accompanying the relevant laws, the 
representative of Viet Nam noted that Viet Nam had made considerable progress in speeding up 
procedures for the promulgation of legal documents.  Government agencies involved in the drafting of 
legal documents were required to offer individuals and organizations  an opportunity to comment on the 
legal document, and to take account of these commen ts according to Article 3 of the amended Law on 
Promulgation of Legal Documents, approved by th e National Assembly on 16 December 2002 (see also 
the section "Transparency").  In response to Member s' observations that conf licting provisions in Viet 
Nam's legislation encouraged subj ective interpretation and complicate d enforcement, the representative 
of Viet Nam did not share these view s, particularly in respect of legal documents issued by the National 
Assembly or its Standing Committee in the area of in ternational trade.  He st ressed that Viet Nam was 
making every effort to identify and correct discre pancies among its laws and regulations.  Viet Nam 
would also consider proposals to move from a "positive"  to a "negative" list approach in its legislation, 
whereby activities would be considered permitted unles s expressly prohibited by law.  The principle had 
already been applied, for example, in the Constitution (Article 16) and in the Enterprise Law (Article 6).  
However, the "negative" list approach was still a novelty in Viet Nam, and would require further 
examination and evaluation.  In regard to a sugg estion that Viet Nam shoul d make its laws self-
enforcing, he stressed that Vi et Nam was making every effort to enforce laws immediately after 
promulgation.   
68. The representative of Viet Nam said that proce dures for negotiation, conclusion and approval 
or ratification of international treaties were re gulated by the Ordinance on the Conclusion and 
Implementation of International Treaties of 20 A ugust 1998.  The State President decided on the 
ratification of international agreements, except in ca ses where these would need to be submitted to the  WT/ACC/SPEC/VNM/4/Rev.1 
 Page 23 
 
 
National Assembly for decision.  International trea ties subject to ratification were those addressing 
issues concerning peace, security, territorial borde rs and national sovereignt y; the basic rights and 
obligations of citizens and judicial cooperation; th ose containing provisions not  stipulated in, or in 
contradiction of, provisions in lega l documents issued by the National Assembly, the National Assembly 
Standing Committee or th e State President; treaties having an impact on the State budget upon 
submission by the Government for ratification; or treaties cont aining provisions on mandatory 
ratification.  International treaties signed on behalf of the Government, or Ministries subject to approval, 
were those containing provisions on mandatory approval , or treaties containing provisions not stipulated 
in, or in contradiction of, legal documents issued by his Government .  He confirmed that accession to 
the WTO would require ra tification.  The National Assembly was competent to supervise the 
implementation of international agreements in Viet  Nam and to promulgate legal documents for the 
implementation of such international agreements. 
69. Procedures for the settlement of economic di sputes were stated in the Ordinance on 
Procedures for Settlement of Economic Cases, a dopted by the Standing Committee of the National 
Assembly on 29 March 1994.  All parties to an ec onomic dispute were entitled to bring their cases to 
the People's courts for resolution within 6 months from the date on which the dispute had arisen.  He 
expected the Code for Prosecution of Civil Cases and the Ordinance to be amended to extend the 
current time limit from 6 months to 2 years.  Disputes involving a foreign party were solved by People's courts at the provincial level in accordance with first instance procedures.  The court would 
seek amicable settlement before th e first instance hearing.  The fi rst instance hearing was conducted 
by a council of trial comprising two judges and one juror, deciding by majority vote.  All parties were entitled to appeal against the first instance court' s judgment or decision and to request the People's 
court at a higher level to conduct the second instance tr ial within 10 days from the date of declaration 
of the court's judgment.  The judgement of the court of first instance would be legally effective if not 
appealed within this time-limit.  Except in comple x cases, the court of appeal would generally open 
the appeal hearing within one month after the date of receipt of all documents submitted by the court 
of first instance.  The judgment or decision of the court of appeal would be legally effective. 
70. Individuals and organizations were entitled to  lodge petitions and appeal administrative 
decisions or actions to the courts if they consider ed such decisions or actions illegal pursuant to the 
Law on Complaint and Denunciation.  Disputed admini strative decisions would first be appealed to 
the agency having taken the decision.  The appeal should be lodged within 90 days from the date of 
receipt of the decision (Article 30 of the Law on Complaint and Denunciation).  If the complainant 
was not satisfied, he could lodge a petition to the immediate higher administrative level or initiate 
legal proceedings with an Administrative Court.   Article 1 of the Ordinance on Procedures for 
Settlement of Administrative Disputes, adopted on 21 May 1996, and its ame ndments of 25 December WT/ACC/SPEC/VNM/4/Rev.1 
Page 24  
 
1998, stipulated that every individual, entity and governmental body had the right to initiate a case 
before the Administrative Court to protect their le gitimate rights and interests.  The Administrative 
Court had competence to handle economic-related  administrative cases such as petitions against 
administrative decisions or administrative acti ons concerning land management, the grant or 
withdrawal of permits and licences in constructio n, production and business, forced requisition, 
purchase or confiscation of property, the collection of  taxes and tax arrears, and decisions or actions 
concerning the collection of charges and fees.  The Administrative Court was a judicial tribunal in the 
system of People's Courts and was independent from the executiv e branch.  He confirmed that 
according to Article 11 of the Ordinance on Proce dures of Settlement of Administrative Cases issues 
relating to customs, taxes, licensing fees and charges were all under the purview of administrative courts. 
71. Court judgments or decisions having come into  legal force could be challenged under the 
judicial procedure. The President of the Supreme Pe ople's Court and the Head of the Supreme People's 
Procuracy had the right to protest ag ainst judgments or decisions, which ha d taken effect, of  Courts at all 
levels.  The Vice President of the Supreme People's  Court and the Deputy Head  of the Supreme People's 
Procuracy had the right to protest against judgments or  decisions (which had taken effect) of lower-level 
Courts.  The President of the provincial People's Court and the Head of the provincial People's 
Procuracy also had the right to protest against effect ive judgements or decisions of lower-level Courts.  
The Head of the Supreme People's Pr ocuracy had the right to request re trial of judgements or decisions 
(which had taken effect) of People's Courts or Military Courts at all levels.  The Head of the provincial 
People's Procuracy had the right to request retrial of effective judge ments or decision s of district 
People's Courts.  The Head of the Regional Militar y Procuracy could reques t retrial of effective 
judgements or decisions of Regional Military Courts.  The trial panel was entitled to reject a protest, to 
retry a case under the first instance or appeal procedures, or to modify  the judgements or decisions of the 
case.  Judgments or decisions of the People's cour t in economic disputes were mandatory, and enforced 
in accordance with the Ordinance on implementation of civil judgments. 
72. Procedures for settlement of economic disputes by  arbitration were provided in Government 
Decree No. 116/CP of 5 September 1994 on the Organi zation and Activities of Economic Arbitration.  
If the parties to a dispute did not want to file a petition to the People's court, they could choose, by 
consensus, to resolve the dispute by an economic arbitration centre.  The pe tition should attach a 
written agreement on the choice of arbitrators and other re lated documents.  Arbi tration decisions were 
final and binding, and could not be appealed by an y party.  However, if a party did not accept the 
decision, he would have the right to request an auth orized People's court to try the case in accordance 
with the procedure on settlement of economic cases.  Ordinance No. 08/2003/PL-UBTVQH on 
Commercial Arbitration had been adopted by the National Assembly Standing Committee on  WT/ACC/SPEC/VNM/4/Rev.1 
 Page 25 
 
 
25 February 2004 in order to replace Decree No. 116/CP of 5 September 1994 and Decision No. 
204/TTg of 28 February 1993 of the Prime Minister.  The Ordinance expanded the concept of commerce 
to be consistent with international practice, stipulated  that decisions of an arbi trator would be final and 
that the related parties had to follow the decisions of arbitrators and the decisions of courts, except when 
the decisions of arbitrators had been rejected by a co urt according to the provisions of this Ordinance.  
The Ministry of Justice was respons ible for the organization of and ac tivities of arbitrators and, once 
established, the Arbitration Centre s should operate according to the Charter and Procedural Rules of 
Arbitration Centres.  Unless specified otherwise, the deadline for the filing of an arbitration case 
would automatically be two years from the date the dispute had arisen.   
73. A Member asked the representative of Viet Nam to confirm that sub-central entities had no 
autonomous authority over issues of subsidies, ta xation, trade policy or any other measures covered 
by WTO provisions, and that Viet Nam would apply the provisions of the WTO agreement, including 
its Protocol of Accession uniformly throughout its  customs territory and other territories under its 
control, including in regions engaging in border trad e or frontier traffic, special economic zones, and 
other areas where special regimes for tariffs, taxes a nd regulations were estab lished.  Viet Nam should 
also confirm that, after accession, when informed  of a situation where WTO provisions were not 
being applied or applied in a non-uniform manner, the central authorities would act to enforce WTO 
provisions without requiring affected parties to petition through the courts. 
74. The representative of Viet Nam replied that the assignment of authorisation to different levels 
of administration was determined by Viet Nam's laws.  Thus, according to the Law on Organization of 
People's Councils and People's Committees of 26 November 2003, the functions of provincial 
People's Committees included (i) the establishment of  plans to develop trade, services and tourist 
networks and participate in inte rnational cooperation in trade, services and tourism as stipulated by 
laws; (ii) issuing and revoking li censes for tourist businesses, tourist areas, tourist spots, hotels, and 
local travel agencies within a prov ince as regulated by laws; (iii) market supervision and organization 
of export-import management as regulated by laws; and (iv) inspection and supervision of trade, 
services and tourism activities to ensure their compliance with laws and regulations.  The 
decentralization of management functions to People's Committees at different levels was also 
stipulated in other specific laws.  However, th e People's Committees implemented the administrative 
functions specifically stipulated in legal docum ents, and were required to comply with these 
documents.  Viet Nam would ensure uniform application of its commitments upon accession to the WTO.  His Government would implement measures as necessary to carry out its obligations required by the WTO and the obligations of Viet Nam stipulat ed in its accession Protocol.  He confirmed that 
local authorities had no right to promul gate any kind of fees on imported goods. WT/ACC/SPEC/VNM/4/Rev.1 
Page 26  
 
75. A Member noted that most WTO members allowe d for the full use of administrative appeals 
prior to recourse to the courts, and that participa tion in one process would not preclude recourse to the 
other.  This Member urged Viet Nam to consider the advantages of allowing both avenues of appeal 
in the context of its accession.  The representative of Vi et Nam replied that this question had raised an 
important issue to be considered in the process of ad ministrative and judicial reform in Viet Nam.  His 
Government's commitment to public administration reform had been confirmed in a Master Plan 
covering the period 2001-2010 and focu sing on reforms of institutions, public finances, organizational 
matters and human resour ces development.   
POLICIES AFFECTING TRADE IN GOODS  
Trading rights (the right to import and export)  
76. The representative of Viet Nam said that, in th e past, only businesses licensed by the Ministry 
of Trade had been allowed to import and export.   The regulation distinguished between production 
enterprises and non-production enterprises, including those specialized in commerce and the supply of 
services (i.e. tourism, transportation, forwarding etc.).  Production enterprises were required to be 
legally established in Viet Nam and to operate in the line of business for which they had been 
registered initially. 
77. The import-export licensing requirement had been  abolished by virtue of Government Decree 
No. 57/1998/ND-CP of 31 July 1998, and a workin g capital requirement for trading enterprises was 
no longer effective.  As of 1 September 1998, all wholly Vietnamese-owned enterprises - irrespective 
of ownership structure, nature (trading or manufact uring) and size of capital - were allowed to import 
and export goods.  However, business activities in some  sectors were prohibited (arms, narcotics, etc.) 
or conditional (mainly for safety, human health and environmental purposes).  His Government did 
not limit or otherwise intervene in the scope of bus iness chosen by Vietnamese enterprises and, except 
in the prohibited sectors, wholly Vietnamese-owned enterprises were entitled to determine their scope 
of business at their own discretion.   
78. Concerning importation by foreign invested enterp rises, past regulations were still in force.  
Foreign-invested enterprises were subject to  the Law on Foreign Investment, while domestic 
enterprises were subject to a different set of re gulations.  Viet Nam did not encourage foreign 
investment in pure trading without a local production or manufacturing base.  Foreign invested 
enterprises and foreign joint venture enterprises were  not permitted to import goods for distribution in 
Viet Nam.  Foreign invested enterprises were a ccordingly allowed only to import goods used as inputs 
in the manufacturing process, and machinery, equipm ent, transportation means and materials used in 
the construction and installation of the project  in accordance with th e investment licence.  WT/ACC/SPEC/VNM/4/Rev.1 
 Page 27 
 
 
79. As a step towards levelling the playing field between Vietnamese-owned and foreign invested 
enterprises, the Government of Viet Nam had promulgated Decree No. 10/1998/ND-CP on 
23 January 1998.  The Decree allowed foreign in vested manufacturing enterprises to purchase goods 
in the local market for direct exportation or e xportation after processing, except goods prohibited to 
export (also applicable to Vietnamese enterpri ses) as well as (i) rice (HS 1006.10-1006.40), (ii) 
explosives and inflammables (HS 3601-3604 and 3606), (iii) books and magazines (HS 4901, 4902), 
(iv) pearls, precious stones and metals, and jewe llery (HS 7101-7116 and 7118), (v) fine art items, 
collectibles and antiques (HS 9701-9706), (vi)  garments and textiles destined for the 
European Communities, Canada, Norway and Turkey , (vii) processed items made from wood, (viii) 
coffee beans, (ix) wild an imals, (x) forestry plants  for seeds, (xi) aquatic products, and (xii) minerals 
(see also Annex II in document WT/ACC/VNM/9).  Foreign invested enterprises could only export 
goods falling within these categories if indi cated in their investment licences.   
80. Categories (iii), (vi), (viii), (xi), (xii) and part  of (v) had subsequently been removed from the 
list of goods FDI enterprises were not allowed to  purchase for export in accordance with Circular 
No. 26/2001/TT-BTM of 4 December 2001.  Pursuant to Government Decree No. 24/2000/ND-CP of 
31 July 2000 foreign-invested enterprises and bus iness co-operation parties were allowed not only to 
export directly or authorize agents to export th eir products, but also to purchase goods and products 
directly in the Vietnamese market for processing  for export or for exportation without further 
processing, except for prohibited exports or certain exports specified by the Ministry of Trade for 
particular periods.  Foreign invested enterp rises and business cooperation parties exported goods 
subject to the list of conditional exports, and imported goods in accordance with their awarded 
investment licences.  Pursuant to Decree No. 45/2000/ND-CP of 6 September 2000, branches of foreign traders were allowed to purchase handicraf ts, agricultural products and processed agricultural 
products (except rice and coffee), vegetables and processed vegetables, consumer goods, poultry and 
cattle meat and processed foodstuff for export.  Th ese branches were also permitted to import certain 
goods for sale in the Vietnamese market – machinery;  equipment for mineral exploitation, processing 
of agricultural products and a quatic products; materials for production of human and animal 
medicines; and materials for the production of fe rtilizer and pesticides - provided they used the 
foreign exchange earned from export activities to fi nance the imports, and had obtained a licence from 
the Ministry of Trade.  Viet Nam did not apply foreign exchange regulati ons for importation specific 
to foreign invested enterprises. 
81. Concerning changes in the scope of business, Article 61 of the Foreign Investment Law 
stipulated that "any change to business objective of an enterprise must be approved by competent 
authority".  Wholly Vietnamese-owned enterpri ses intending to amend the Business Registration 
Certificate had to re-register with the local De partment of Planning and Investment.  National WT/ACC/SPEC/VNM/4/Rev.1 
Page 28  
 
Corporations belonging to the Government were also obliged to comply with this procedure, but they 
registered with the Ministry of Planning and Investment.   
82. Some Members noted that importation of items d esignated to be of special importance to the 
national economy were reserved for "specialized  business enterprises".  Annex 3 of document 
WT/ACC/VNM/3/Add.1 contained all possible items falling under the category of special importance 
as of 1997, and Viet Nam was requested to provide information on the frequency and procedure of 
adding and removing items of special importance.  Th e representative of Viet Nam replied that import 
trading rights had been relaxed considerably over th e past years.  Importation of items designated to 
be of special importance to the national economy was no longer reserved for "specialized business 
enterprises", except for the products listed in document WT/ACC/VNM/14/Add.1.   
83. Some Members stated that foreign-invested fi rms did not have the same rights to import, 
import for resale, or export as Vietnamese firms.  Th e current system granted a preference to national 
companies over foreign ones and denied imported goods national treatment as required by Article III 
of the GATT 1994.  Restricting importation to it ems specified in the investment licence or the 
Business Registration Certificates could be seen as  a non-tariff barrier to importation prohibited by 
GATT Article XI.  These Members insisted that Viet Nam should eliminate this discriminatory 
system, thus allowing domestic and foreign individuals  and firms to import inputs and finished goods 
for resale, and to export without any restriction ot her than those consistent with GATT Articles XX 
and XXI.  The process should be completed prior to  or by the time of accession to the WTO, as 
national treatment was a basic requirement of the WTO.  Viet Nam should provide additional 
information to the Working Party on its plans to  ensure national treatment in this regard.   
84. The representative of Viet Nam replied that, in his opinion, the restrictions outlined above did 
not violate the national treatment obligation of Ar ticle III of the GATT 1994 and did not amount to an 
import restriction as enterprises were free to define  their scope of business (trading lines) and hence 
free to determine the list of imported goods indicate d in their Certificate of Business Registration, 
except for goods listed as prohibited imports a nd exports.  Article 61 of the Law on Foreign 
Investment stipulated that any change in the bus iness objective of an enterprise with foreign owned 
capital required approval by the competent authority.  In his view, the provisions of Article 61 of the 
Law on Foreign Investment did not cause any im pediment to the importation of equipment, 
machinery, and materials used in the establishmen t and production of these enterprises.  Importation 
of goods for resale in Viet Nam was, in his opi nion, a matter relating to distribution services and 
therefore to be addressed in the bilateral market access negotiations on trade in services.  Concerning 
exports, he confirmed that the rights of foreign i nvested enterprises to export were identical to those 
of Vietnamese enterprises.    WT/ACC/SPEC/VNM/4/Rev.1 
 Page 29 
 
 
85. The representative of Viet Nam confirmed that  wholly Vietnamese-invested enterprises had 
been granted full rights to trade since 1 January 2002.  Regarding foreign invested enterprises, he 
proposed to phase in trading rights gradually in accordance with the conditions and the timeframe 
detailed in Annex 1 (Commitments  on Trading Rights) and Table A in document WT/ACC/VNM/32.   
1. Import Regulation  
Customs tariff 86. The representative of Viet Nam said that Viet Nam had begun levying import duties in 
accordance with the Law on Import, Export Duties for Commercial Goods of 29 December 1987.  In 1991, Viet Nam had promulgated the Law on Export-Im port Duties, which had replaced the 1987 Law.  
The Law on Export-Import Duties had been amen ded in 1993 and 1998, and the tariff rates were 
accordingly decided by his Government within dut y bands promulgated by the Standing Committee of 
the National Assembly.   
87. At the time of circulation of the Me morandum on the Foreign Trade Regime in 
September 1996, Viet Nam's import tariffs ranged from zero to 60 per cent.  About 52 per cent of the 
tariff lines fell in the 0-5 per cent range.  The av erage tariff on major imported items such as 
automobiles (for detailed rates see document  WT/ACC/VNM/3 pp.107-109), alcoholic and non-
alcoholic beverages, petroleum, air-conditioners, re frigerators, electric household appliances, cement, 
plastics, rubber, paper and steel was 33.5 per cent.   The trade weighted average duty collected on 
imported goods amounted to 15-16 per cent in 1996.  Viet Nam's tariff schedule had been modified 
several times since then in respon se to the country's development needs.  The number of tariff bands 
had been reduced, as well as the number of tariff lines subject to zero tariff.  In principle, the rate of 
duty applied to imports should not exceed 60 per cent of the c.i.f. price at the point of customs clearance.  In order to improve the transparency of its trade policy regime and fulfill commitments 
vis-à-vis  the IMF and the World Bank, Viet Nam had gradually been removing import restrictive non-
tariff measures since 2000.  These non-tariff measures would be replaced by import duties or 
temporary surcharges during a transitional period.  Thus, Viet Nam's customs tariff included some MFN tariff rates exceeding 60 per cent.   
88. Some Members requested information on the implementation of the Harmonized System 
nomenclature in Viet Nam and further work to align with the ASEAN Harmonized Tariff 
Nomenclature (AHTN).  Viet Nam was also asked to clarify its "Current Statutory Applied Ceiling 
Rates" and their relationship with the applied customs tariff.  Some Members observed that 
Viet Nam's present tariff system lacked transparency, and urged Viet Nam to submit its current customs tariff and detailed trade statistics to f acilitate the market access negotiations on goods.  A WT/ACC/SPEC/VNM/4/Rev.1 
Page 30  
 
Member said that his authorities had been advised  by exporters that Viet Nam had increased the 
import duty on wheat flour from 10 to 20 per cent in October 1998, and wondered whether Viet Nam 
had raised import duties on any other products.  Th is Member considered such action inconsistent 
with the standstill expectation on new trade distorting measures. 
89. In reply, the representative of Viet Nam said that the Harmonized System Convention had 
come into force in Viet Nam on 1 January 2000,  making Viet Nam's tariff nomenclature in full 
compliance with the HS 1996 nomenclature at the six-digit level.  Viet Nam's nomenclature had 
subsequently been harmonized with the AHTN at th e eight-digit level, in full consistency with HS 
2002.  The new tariff nomenclature had been issued by virtue of Decision No. 82/2003/QD-BTC of 13 June 2003.  Concerning the tariff rates, he noted that the Standing Committee of the National 
Assembly had established maximum rates of duty at  the four-digit HS level ("Current Statutory 
Ceiling Rates of Duty"), which constituted the legal basis for the "effective rates of duty" established 
by the Government at the eight-digit level, currently stipulated in Decision No. 110/2003/QD-BTC of 25 July 2003, which had replaced previous legal documents governing this issue.  A copy of the 
Effective Import Tariff (MFN rates) was provide d to the Working Party (see notice in document 
WT/ACC/VNM/28/Add.1), as well as import a nd export statistics for 1998-2000 (see 
WT/ACC/VNM/27).  Although he recognized that fre quent changes in the tariff rates limited the 
stability of the tariff policy and affected business pl ans, he stressed that the Vietnamese economy was 
undergoing transition and restructuring and the tariff nomenclature was being adjusted to keep up 
with the economic changes and to assist the developm ent of domestic infant industries.  Changes in 
tariff rates were decided in consultation with the business community and the ministries and agencies 
concerned.  He assured the Working Party that Viet  Nam would make best efforts to publish the rates 
prior to application and to stabilize the tariff ra tes.  The customs tariff introduced through Decision 
No. 110/2003/QD-BTC had been published in the Offici al Gazette and circulated widely prior to the 
entry into force.  Tariff rates on petrol and some  iron and steel products had been changed recently 
due to wide price fluctuations in world markets. 
90. He noted the preference expressed by some Members for ad valorem  duty rates and their 
concern that any future conversion to specific duties would lead to reduced transparency and 
predictability, but stressed that Viet Nam might n eed to apply specific or compound duty rates on 
certain items in the future to counter custom s fraud.  He stressed that any conversion of ad valorem  
rates after Viet Nam's accession to the WTO would comply with the procedures for modification of schedules under Article XXVIII of the GATT 1994 as well as  other relevant regulations of the WTO.   
91. The representative of Viet Nam added that Viet Nam's trading partners were subject to tariff 
treatment at the preferential, MFN or standard rate (also referred  to as normal or non-MFN rate).   WT/ACC/SPEC/VNM/4/Rev.1 
 Page 31 
 
 
General provisions also allowed Viet Nam to impose additional import duty on goods originating in 
countries discriminating against goods originating in  Viet Nam on the basis of tariffs or other 
measures.  However, Viet Nam had no specific provisions regulating such cases, and he could 
therefore not indicate the criteria Viet Nam would u se to identify such discriminatory treatment.  He 
confirmed that after accession to the WTO, a ny measure taken by Viet Nam in response to 
discriminatory treatment would be consistent with  the regulations applied by WTO Members.  The 
Standing Committee of the National Assembly had adopted the Ordinance on Most Favoured Nation 
and National Treatment on 22 May 2002, which require d Viet Nam to comply with MFN and national 
treatment provisions of international treaties.   
92. Viet Nam aimed at a uniform import tariff regime for border trade and international trade.  In 
response to a specific question, he added that Vi et Nam had not signed any agreement with Cambodia 
favouring border trade.  According to Decisi on 0724/99/QD/BTM of 8 June 1999, border trade by 
local residents amounting to 500,000 Dong (about  US$35) per passage per day were exempt from 
custom duty.  The excess value was subject to normal tariff trea tment.  Cargoes cleared through 
Customs by businesses were of commercial nature and therefore subject to normal duty.  The same 
principles applied to trade along the borders with China and the Lao PDR. 
Other duties and charges  
93. The representative of Viet Nam said that his Government had operated a Price Stabilization 
Fund since April 1993.  The difference between do mestic and world market prices for certain goods 
was monitored, and surcharges were collected in ca se of significant fluctuations.  The Government 
decided or authorized the Head of the Government  Pricing Committee to decide on the items subject 
to surcharge and the amount of surcharge.  The a pplied rate of surcharge normally amounted to 30 to 
70 per cent of the price differences observed.  The revenues were used to stabilize domestic prices and 
to protect domestic production a nd consumption.  Viet Nam maintained no fixed list of goods and 
services subject to price stabilization, but it was ge nerally applicable to essential goods such as paddy 
and rice, coffee, rubber, sugar cane, cashew nut s, petroleum-related pr oducts, iron and steel, and 
fertilizer.  Since 1993, surcharges had been impos ed on imported petroleum, iron and steel for 
construction purposes, DAP fertilizer and sheet steel, and Vietnamese exports of coffee, rubber and 
cashew nuts.  Although the Price Stabilization F und no longer existed, the import and export 
surcharges had been carried over into the Export Pr omotion Fund, which had been set up to replace 
the Price Stabilization Fund pursuant to Decision No. 195/1999/QD-TTg of 27 September 1999.   
94. A Member asked Viet Nam to explain the rati onale for charges imposed on cement, clinkers, 
ceramics, paper, and steel.  Some Members sought the elimination of all non-tariff charges on imports WT/ACC/SPEC/VNM/4/Rev.1 
Page 32  
 
other than domestic taxes applied in conformity with Article III of the GATT 1994, customs or other 
fees or charges applied to cover the cost of servi ces rendered, or other charges authorized by WTO 
Agreements.  Consequently, Viet Nam was requested to bind all "other duties and charges" (ODCs) 
within the meaning of Article II:1(b) of the GA TT at "zero" in its Schedule of Concessions and 
Commitments on Goods.   
95. The representative of Viet Nam replied that Viet Nam had been eliminating non-tariff 
measures on imports gradually since 2000 under an ex tended structural adjustment programme.  The 
non-tariff measures had in some cases been replaced temporarily by import surcharges, including on 
cement, clinkers, ceramics, paper, and steel.  The ODCs assisted the elimination of non-tariff 
measures by (i) mitigating the negative and direct im pact of the elimination of non-tariff measures in 
the early stages of the programme and (ii) ensuring flexibility in solving issues that might arise in 
implementing the NTM elimination programme.  He confirmed that the surcharges on the goods listed 
in Tables 1 (a) and 1(b) had been applied sinc e 2000, and for imported sheet glass and some steel 
products since 1 January 2002.  Viet Nam was ma king efforts to convert these ODCs into ordinary 
customs duties.  As per April 2004, Viet Nam applied ODCs only to welded steel pipe (HS 7306) and 
PVC in powder and granule form (HS 3904).  
96. Some Members reiterated their request that Viet Nam bind all other duties and charges at zero 
in its Schedule of Concessions and Commitments on Goods. 
97. [The representative of Viet Nam stated that any other duties and charges applied to imports 
other than ordinary customs duties and fees and ch arges for services rendered would be in accordance 
with WTO provisions from the date of accession.  He further confirmed that Viet Nam would not list any other charges in its Schedule of Concessions a nd Commitments on Goods under Article II:1(b) of 
the GATT 1994, and would bind such charges at "zero".  The Working Party took note of this 
commitment.] 
Tariff rate quotas, tariff exemptions  
98. Some Members were concerned that Viet Na m was proposing to introduce tariff rate quotas 
for a range of products, arguing that TRQs were outmoded and distorted trade.  If tariff quota 
commitments were to be agreed upon, Viet Nam would be requested to provide fu ll details of all tariff 
quota arrangements in force, including information on the in-quota and out-of-quota tariff rates;  
proposed quota volumes and annual growth ra tes;  supporting data on domestic production, 
consumption and imports for each  product concerned;  and guarantee tariff quota access on a non-
discriminatory basis for all WTO Members.  Viet Nam was reminded that a tariff quota system should 
be simple, transparent, timely, predictable, unifo rm, non-discriminatory and non-trade restrictive, and  WT/ACC/SPEC/VNM/4/Rev.1 
 Page 33 
 
 
be administered in a way that would not distor t trade or cause more burdens than absolutely 
necessary.   
99. The representative of Viet Nam replied th at his Government had issued Decision 
No. 91/2003/QD-TTg on 9 May 2003, introducing tariff rate quotas on the importation of cotton, tobacco materials, salt, dairy products, eggs and maiz e.  TRQs were being applied on a pilot basis as a 
step in the process of increasing market access and in the elimination of non-tariff measures such as 
prohibitions, licences or import quotas affecting the same products.   
100. The representative of Viet Nam said that the procedure for tariff exemption was outlined in 
the 20 May 1998 Law amending and supplementi ng the Law on Import-Export Duties of 
26 December 1991.  Tariff exemptions were perm itted for non-refundable aid; temporary imports and 
re-exports, temporary exports for exhibitions and re-i mports; goods in transit; exports and imports of 
foreign organizations and individuals enjoying immunities stipulated by the Government pursuant to 
international treaties to which Viet Nam was a signatory or participant; and materials and raw 
materials imported for processing and re-export in ac cordance with a contract entered into with a 
foreign party.  In accordance with Article 11 of  the Law amending and supplementing the Law on 
Import-Export Duties, import duty exemptions were applicable to imports for specialized use for 
security, national defence, scientific, educational, training; equipment and machinery imported in 
accordance with Article 47 of the Law on Foreign Investment and Article 25 of the Law on Promotion 
of Domestic Investment; exports and imports of enterprises with foreign owned capital and foreign 
parties to a business co-operation contract; gifts of foreign organizations  and individuals to 
Vietnamese organizations and individuals, and vice- versa, within the permitted amount; and imported 
goods for duty-free shops.  The tax exemptions acc orded under Article 47 of the Law on Foreign 
Investment applied also to project expansions and upgrading of technology.  In regions where investment was specially encouraged the import duty exemption for raw materials, equipment and 
components was valid for five years following the commencement of production. 
101. The importer (a domestic enterprise or a foreign- owned enterprise) filed an application to the 
General Department of Taxation, the Ministry of Finance for approval on a case-by-case basis for imports which were eligible for duty exemption.  The required documentation was specified in the 
legal documents guiding the implementation of the Law on Export and Import Duties.  These 
procedures were not required if the Ministry of Trade had already approved the importation of 
equipment, machinery or specialised means of transport for the capital construction establishing a 
foreign invested project.  Regarding other cases of duty exemption, importers filed applications with 
the Customs authority. WT/ACC/SPEC/VNM/4/Rev.1 
Page 34  
 
Fees and charges for services rendered  
102. The representative of Viet Nam said that fees a nd charges for the State budget were levied in 
accordance with Decree No. 04/1999/ND-CP of 30 Ja nuary 1999, Chapter IV of Government Decree 
No. 16/1999/ND-CP of 27 March 1999 on customs procedures, customs supervision and customs 
fees, and the Ordinance on Fees and Charges that had come into effect on  1 January 2002.  The 
Ministry of Finance and General Department of Cu stoms had issued an Inter-Ministerial Circular 
No. 71/2000/TTLT/BTC-TCHQ on 19 July 2000 pr oviding for guidelines on the collection of 
customs fees and usage management.  The Inter-Minis terial Circular identified the following forms of 
customs fees:  (i) customs clearance fees applicab le to imported or exporte d goods calculated on the 
basis of quantity of goods, (ii) customs warehouse fees for cargo and luggage, (iii) cargo escort fees 
based on accompanying distance, (iv) customs seali ng fees (for paper, lead seal and seal ring), (v) 
transit fees, and (vi) administrative fees for re-c ertification of customs documents.  The respective 
fees and charges are enumerated in Table 2.  This Circular had superseded an earlier inter-ministerial 
circular issued in April 1993.  The fees had been adjusted for inflation to ensure that they were 
maintained at a level approximate to the cost of  the customs services rendered.  An earlier provision 
in the 1993 circular, allowing customs fees to be adju sted when market prices  fluctuated more than 
20 per cent relative to an established pr ice index, had been abolished.   
103. Some Members noted that fees for fundamental  infrastructure, such as port services, were 
very high in Viet Nam compared to other countries in the region, and requested that these fees be 
reduced drastically.  The representative of Viet Na m replied that fees for fundamental infrastructure 
were generally based on commercial considerations.  The general policy of his Government was to try 
to reduce such fees to facilitate trade and investme nt activities in Viet Nam.  He noted that port 
services charges were determined by the port servi ces enterprises themselves, and that these charges 
had been reduced by approximately 10 per cent in 2002 and a further 20 per cent in 2003 and early 
2004. 
104. A Member was concerned that some of Viet Nam's extensive charges and fees might be 
applied to importers or to imported goods in a manner that provided less favourable treatment for 
imports compared to similar domestic goods.  Viet  Nam was requested to identify charges and fees 
applied in a discriminatory manner to importers or foreigners.  The Working Party needed to examine 
these fees and charges to determine those that wo uld have a negative impact on trade in possible 
violation Article III or Article VIII of the GATT.  Th e representative of Viet Nam replied that current 
regulations on fees and charges had been reviewed to amend the discriminatory provisions relating to 
differential rates between Vietnamese or forei gners, or between domes tic and imported goods.  WT/ACC/SPEC/VNM/4/Rev.1 
 Page 35 
 
 
105. A Member noted that Viet Nam applied a fee for the purchase or sale of foreign exchange 
which varied according to the value of the transf er.  The fee did not meet the requirements of 
Article VIII of the GATT, and should be eliminated or revised to meet the criteria of this Article.  In 
reply, the representative of Viet Nam said that th e customs fee for importation and exportation of 
foreign exchange was determined per tranche of US$100,000, with a minimum of VND 100,000 
(US$6) and a maximum of VND 1.5 milllion (US$100) for each transaction.  He considered this fee 
approximate to the costs of the services rendered a nd thus not inconsistent with Article VIII of the 
GATT 1994.   
Application of internal taxes 
106. The representative of Viet Nam said that certain goods were subject to excise tax , levied in 
accordance with the Law on Excise Tax of 30 J une 1990, with amendmen ts of 5 July 1993, 
28 October 1995 and 20 May 1998.  The tax system  was explained in further detail in Circular 
No. 98 TC/TCP of the Ministry of Finance.  Ta xes initially ranged from 32 to 70 per cent on tobacco, 
75 to 90 per cent on beer, 15 to 90 per cent on othe r alcoholic beverages, 100 per cent on pyrotechnic 
articles (excluding firecrackers), 30 to 100 per cent on motor vehicles and 15 per cent on petroleum 
products.  Bo ttled, canned, and fresh beer were taxed di fferently depending on the consumption pattern, 
and thus the elasticity of demand, for each type of  beer.  Effective 1 January 1999, the coverage of the 
Law on Excise Tax had been extended to vari ous "non-essential" goods and services, including 
automobiles (less than 24 seats) ; air conditioners; votive paper a nd votive objects; dancing halls; 
massage parlours; karaoke bars; casino, jackpot games and gambli ng activities; and golf services, 
including the sale of golf club membership cards and tickets.  The rates of excise tax applicable in 2003 are enumerated in Table 3. 
Table 3:  Goods and services subject to excise tax
 
HS Code Description No.  (for goods) Goods Tax rates 
(per cent) 
1 Cigarettes, cigars:  
 2402 a) Filter cigarettes mainly made of 
imported material, cigars 
b) Filter cigarettes mainly made of 
domestically-produced materials 
c) Cigarettes without filter 65 
 
45 
 
25 
2 Spirits:  
 2204;  2205;  2206;  2207; 
2208 a) Of alcoholic strength exceeding 40 ° vol 
b)  Of alcoholic strength 20-40 ° vol 
c)  Of alcoholic strength less than 20 °, of 
wine or fruit flavoured ° 
d)  Medicinal and herbal wines 75 
30 
20 
 
15 
3 Beer:  
 2203 a)  Bottled, canned and draught beer 75 WT/ACC/SPEC/VNM/4/Rev.1 
Page 36  
 
HS Code Description 
b)  Draft beer 30 
4 Automobiles:  
 8703 a)  5 seats or less 80 
 8702;  8703 b)  6 to 15 seats 50 
 8703 c)  16 to 24 seats;  pick-up cars  25 
5 2710 Petrol, naphtha, reformade components, other 
petrol components  10 
6 8415 Air conditioners of capacity not exceeding 
90.000 BTU 15 
7 9504.40.00 Playing cards 40 
8 4823.90.10 Votive papers;  votive objects 70 
     Services  
1  Dancing halls, massage parlours, karaoke bars 20 
2  Casino, jackpot games 25 
3  Gambling on horse racing, motor racing  20 
4  Golf services: sale of golf club member cards 
and tickets 20 
 
107. The taxable value was the duty-inclusive price for imported goods and the ex-works selling 
price for domestically-produced goods.  Excise tax wa s in general applied uniformly to imported and 
domestically-produced goods.  Howeve r, cigarettes made from imported  tobacco were taxed at a higher 
rate than cigarettes made with domestic tobacco. 
108. The representative of Viet Nam added that, in pr inciple, all individuals and entities producing or 
importing goods subject to excise tax were liable to pay the tax.  However, the Law on Excise Tax 
specified cases where tax reduction could be considered for producti on enterprises facing difficulties 
due to natural disasters,  war and other contingencies, as we ll as for the expansion of production 
capacity.  Tax breaks for enterprises investing in new technology and additional production capacity had 
been abolished. 
109. Domestically manufactured or a ssembled motor vehicles were originally not subject to excise 
tax.  Since 1 January 1999 such vehicles had been s ubjected to excise tax, in principle.  However, 
according to the Law on Excise Ta x and Official Note 168/1999/TT-BTC  of the Ministry of Finance, 
local car assembling enterprises wo uld be entitled to a 95 per cent tax reduction until the end of 2003, 
and the reductions could be extended an additional fi ve years for enterprises still incurring losses.  He 
added that Article 16 of the amended Law on Exci se Tax No. 08/2003/QH11 of  17 June 2003 allowed 
excise tax reductions for domestic automobile ma nufacturers until 31 Decemb er 2006.  Golf business 
enterprises had been accorded an excise tax reduction of 30 per cent  for three years starting from 1999 
and, as a transitional measure until 2004, loss-mak ing small breweries qualified for a reduction in the 
amount of excise tax due equal to the annual loss.  He confirmed that the tax exemption for loss-making  WT/ACC/SPEC/VNM/4/Rev.1 
 Page 37 
 
 
small breweries had been abolished according to the amended Law on Excise Tax No. 08/2003/QH11 of 
17 June 2003.   
110. Some Members noted that Viet Nam applied discri minatory excise taxes on imported tobacco, a 
possibly WTO-inconsistent lower rate  of excise duty on herbal wines, and preferential excise tax rates 
on domestically-produced beer and automobiles.  The excise taxes applied to cigarettes and beer were in clear contrast to Article III of the GATT 1994 as they taxed like products differently, and these 
Members requested Viet Nam to submit a detail ed plan for the elimin ation of the existing 
discrimination to the Working Party.  In their view, the preferential tax treatment for domestic 
producers was also inconsistent with the national treatment principle of Article III and should be 
abolished prior to accession. 
111. The representative of Viet Nam replied that only cigarettes made of domestically-produced 
materials and those made of importe d materials were subject to different excise tax rates according to 
Article 7 of the Law on Excise Tax of 20 August 1998.  He added that Viet Nam would comply with the non-discrimination principles stipulated in Article III of the GATT 1994 in respect of imported tobacco upon accession.  The Law on Excise Tax did not provide for any tax rate discrimination 
between domestically-produced and imported beer.  Vi et Nam used its excise taxes to influence trade, 
production and consumption between  high-value, luxurious products  and cheaper varieties, and 
therefore applied lower tax rates on low-cost items such as draft beer and medicinal and herbal wine 
compared to other beers and wines.  The manufacturi ng of automobiles was still an infant industry in 
Viet Nam, and the amended Law on Excise Tax No. 08/2003/QD11 of 17 June 2003 stipulated a 
reduction in the excise tax rate for domestic manuf acturers equal to 70 per cent in 2004, 50 per cent in 
2005 and 30 per cent in 2006.  The preferential  excise tax regime for domestic automobile 
manufacturers would lapse on 31 December 2006, and Vi et Nam would comply fully with Article III 
of the GATT 1994 in respect of its excise taxes on automobiles from 1 January 2007.   
112. Concerning value added tax
, the representative of Viet Nam said that the Law on Value 
Added Tax, adopted by the National Assembly  on 10 May 1997 had entered into force on 
1 January 1999, replacing the Law on Turnover Tax.   The Law on Value Added Tax stipulated four 
rates (0, 5, 10 and 20 per cent).  The tax was collected monthly and settled at the end of every 
calendar year.  VAT applied generally to all products  and services in the covered categories and used 
in production and consumption in Viet Nam irrespectiv e of their origin.  He identified 26 products and 
services not subject to VAT, including sales of unprocessed or semi-processed  agricultural products 
by organisations or individuals producing these products; salt; credit services; life insurance; health and education services; and public sanitation services.   According to Article 4 of the Law on Value 
Added Tax, VAT was not assessed on goods and servi ces subject to excise tax, and this provision WT/ACC/SPEC/VNM/4/Rev.1 
Page 38  
 
applied equally to imported and domestically-produced  goods (including on locally manufactured and 
imported motor vehicles with less than 24 seats). 
113. Noting that goods subject to excise taxes were not subject to VAT, some Members asked 
Viet Nam to provide a comprehensive list, using th e HS classification, of items subject to VAT and 
the corresponding tax rate, as well as a listing of items exempt from VAT.  The representative of 
Viet Nam replied that the list of items exempt fro m VAT had been issued in accordance with Circular 
No. 122/2000/TT-BTC of 29 December 2000 of the Mi nistry of Finance.  He provided a detailed 
listing of imported items subject to VAT (exempt, 5 or 10 per cent) in 2003, prepared in accordance 
with Circular No. 84/2003/TT-BTC of 28 August 2003,  issued by the Minister of Finance (see notice 
in document WT/ACC/VNM/28/Add.2).  The VAT rate of 20 per cent stipulated in the Law had been 
repealed.  He confirmed that Viet Nam's value added tax system in principle provided for equal 
treatment of imported and domestically-produced goods.   
114. In response to queries about the VAT exem ption on unprocessed and semi-processed 
agricultural and aquatic products sold by individu als and organizations in Viet Nam, against the 
5 per cent VAT applied on similar imported items, the representative of Viet Nam added that the 
objective of Article 4, section 1 of the ame nded Law on Value Added Tax No. 07/2003/QH11 of 
17 June 2003 was not to protect domestic production against imports, but a measure to simplify the 
management of the VAT system.  The proportion of unprocessed and semi-processed agricultural and 
aquatic products sold by farmers directly to final consumers was very low, and all such products sold 
by farmers to distribution and processing intermediaries were subject to 5 per cent VAT.  Viet Nam 
would welcome technical assistance to improve the management of its VAT system.   
115. Noting that Viet Nam exempted from VAT machinery equipment imported for fixed asset 
purposes by foreign investing enterprises accordi ng to Article 60 of the Foreign Investment 
Regulation, a Member requested Viet Nam to apply this exemption uniformly and in compliance with Article III of the GATT 1994, as VAT exemptions app eared not to be granted if the same kind of 
equipment could be manufactured in Viet Nam.   
116. In reply, the representative of Viet Nam confirmed that according to Article 60 of Decree 
No. 24/2000/ND-CP, VAT was not levied on equipm ent, machinery and sp ecialized means of 
transportation forming part of a technological line, not yet domestically produced, and imported to 
form fixed assets of FDI enterprises or to implemen t business co-operation contracts.  In his opinion, 
this regulation was not inconsistent with Artic le III of GATT 1994 since no comparison could be 
made to a "like domestic product", and the purpose of  this measure was not to afford protection to 
domestic production.  He noted that equipment and machinery produced in Viet Nam was subject to  WT/ACC/SPEC/VNM/4/Rev.1 
 Page 39 
 
 
the same value added tax as imported products.   
Quantitative import restrictions, including prohibitions, quotas and licensing systems 
117. The representative of Viet Nam said that im portation of some products was subject to 
quantitative restriction, or restricted by other means.   He noted that Viet Nam had been liberalizing its 
quantitative import restrictions.  Responding to statem ents from Members that quantitative restrictions 
were inconsistent with GATT Article XI at that Viet Nam should provide a single comprehensive and 
consolidated list of its current quantitative restri ctions, including all bans, quotas and restrictive 
licensing requirements and to provide a timetable fo r each measure currently in place, either to be 
eliminated, revised or replaced with a specific WTO consistent alternative, or present an appropriate 
WTO justification for the retention of the measu re, the representative of Viet Nam provided a 
timetable for the elimination of specific non-tariff measures in document WT/ACC/VNM/25, 
subsequently revised in documents WT/ACC/VNM/25/ Rev.1, Rev.2 and Rev.3.  Although Viet Nam 
initially envisaged to phase out quotas and licensi ng requirements on some non-agricultural products 
after accession, the representative of Viet Nam subs equently confirmed that Viet Nam committed to 
eliminate all quantitative import restrictions in the form of quotas or restrictive licences upon 
accession, and had revised the list of non-tariff me asures - reproduced in Table 4 - accordingly.   
118. Quantitative restrictions on agricultural products would also be eliminated upon accession, or 
replaced by tariff rate quotas for some items.  Viet Nam had not fixed annual import quotas, but relied on a flexible system based on forecasted gaps  between total demand and supply of the goods 
concerned.  Quota volumes were decided by the Minist ry of Trade, in consultation with the Ministry 
of Planning and Investment, and the line ministries in charge of the goods.   
119. Asked to provide further jus tifications for the measures a pplied, the representative of 
Viet Nam said that Viet Nam prohibited importa tion of arms and ammunition, narcotics, toxic 
chemicals, depraved and reactionary cultural products , firecrackers, children's toys adversely affecting 
their moral education and social security, cigare ttes (except as personal belongings), right-hand drive 
motor vehicles, second hand spare parts for motor ve hicles, second hand internal combustion engines 
below 30 CV, and asbestos materials under the amphi bole group.  The main agencies responsible for 
issuing detailed regulations and guidance concerning products subject to import prohibition included 
the Ministry of Public Security, the Ministry of Culture and Information, the Ministry of Industry, and 
the Ministry of Health.  Restrictions on trade in  toxic products were applied equally to Vietnamese 
and foreign traders.  Toxic chemicals prohibited to import or subject to conditional approval are detailed in Tables 4.1.a and 4.1.b.  In exceptiona l cases, importation of prohibited goods was subject 
to approval by the Prime Minister, in consulta tion with relevant ministries and agencies.   WT/ACC/SPEC/VNM/4/Rev.1 
Page 40  
 
120. Some Members questioned whether Viet Nam was using the least trade restrictive means to 
address health, environmental, safety or other concerns, and invited Viet Nam to outline the 
restrictions applied to domestic production an d sale of products such as cigarettes, certain 
motorcycles, second-hand motor vehicle spare parts and certain combustion engines.  Viet Nam was reminded that if it wished to limit vehicle regist rations for environmental/traffic congestion reasons, 
this need not be accomplished through a quota syst em on imported vehicles.  Viet Nam was requested 
to provide more specificity with respect to the seco nd-hand products covered by import restrictions as 
some of the categories, e.g. electronic goods, appear ed rather broad.  Unless Viet Nam could confirm 
that it prohibited the internal resale or resale of  domestic manufactures for all second-hand consumer 
goods, materials and equipment listed in Table 4, Viet Nam was invited to explain how its import 
restrictions did not violate Articles III and XI of the GATT 1994.  Viet Nam was also asked to 
provide an indication of the types of children's t oys considered to have adverse effects on moral 
education and social security, and provide examples  of depraved and reactionary cultural products. 
121. The representative of Viet Nam replied that the import prohibition on cigarettes was part of an 
anti-smoking programme aiming at restricting th e production and consump tion of cigarettes.  
Although existing tobacco production units were being utilized, Viet Nam had no intention to develop 
its cigarette industry and discouraged the establis hment of new production units.  He added that 
provisions restricting domestic production and consumption of tobacco had been included in 
Government Resolution No. 10/2000/NQ-CP of 14 August 2000 on a national policy on preventing 
harmful effects of tobacco in the period 2000-2010, and in Decree No. 76/2001/ND-CP of 
22 October 2001.  Viet Nam had also signed the Framework Convention on Tobacco Control, adopted 
by the World Health Organization on 25 May 2003 , in order to limit the number of increasing death 
tolls of tobacco-related diseases.  However, Viet Nam was seeking alternative WTO-consistent measures to achieve its objectives, and accordingl y committed to eliminate the prohibition on imports 
of cigarettes and cigars upon accession.   
122. Viet Nam prohibited importation, registration a nd circulation of motorcycles with engine 
capacity exceeding 175 cm³.  Importation of such motorcycles was only allowed for special purposes 
such as for the armed forces, security personnel, or  for competitive sports.  Responding to calls for 
removal of this ban, as motorcycles of this si ze were produced and sold as a commercial good for 
non-military use in many countries, the representative of Viet Nam reiterated that Viet Nam prohibited the domestic registration of motorcycles with engine capacity exceeding 175 cm³ to ensure 
traffic safety.  Imports of second hand spare parts were prohibited for traffic security reasons, and the 
prohibition on second hand internal combustion engines below 30 CV was enforced to protect the 
environment.  He considered the import prohib ition on second-hand motor vehicle spare parts to be 
the most feasible measure to protect safety that Viet Nam could implement under the current  WT/ACC/SPEC/VNM/4/Rev.1 
 Page 41 
 
 
conditions, as there was no alternative enforceable  internal mechanism.  Similarly, Viet Nam 
prohibited imports of second-hand clothing to protect public health as there was no enforceable 
internal mechanism.  He noted that no domestic or ganizations or individuals  were granted Business 
Registration Certificates to conduct business in second-hand consumer products subject to import 
restrictions.   
123. Concerning toys, the Minister of Trade had issu ed a detailed list of goods subject to import 
prohibition in Decision No. 0088/2000/QD-BTM of 18 January 2000.  The Decision specified 
"children toys having adversely effect in moral ed ucation, children's health and social security" as 
gun-shaped toys; airguns or guns using compressed spring as propelling force for firing plastic bullets 
or other kinds of bullets; guns firing water or water vapour; guns flaring or making noise while 
shooting; weapon-shaped toys other than gun-shap ed toys; shape-like grenades, bombs, mines, or 
explosives; shape-like swords, spears, bayonets, daggers, bows and crossbows; firecrackers of all 
kinds; certain types of virtual toys; toys in th e form of cultural products (publications, cassettes, 
discs), electronic games containing images, sound, actions describing brutal combats, fights, murderous attacks or other actions degradi ng or offending human dignity, destroying the 
environment, or detrimental to children's aesthetic sense or adversely affecting children's education; 
computer software, electronic games with conten t inciting the users to violence or prostitution; 
remote-controlled electrical toys that could interfere  with the operation of other equipment, devices or 
be unsafe for children; and toys using the nation al flag, Viet Nam's map, leaders' pictures and 
photographs inconsistent with regula tions, or for bad intentions. Viet Nam had not issued any specific 
legal document stipulating the criteria for determin ing "depraved and reactionary cultural products".  
He suggested that depraved, reactionary, superstitious  or morally pernicious cultural products would 
include books, newspapers, magazines, pictures, paintings, calendars, posters, catalogues, leaflets, 
circulars, handbills, pamphlets, tracts/propaganda l eaflets, slogans, couplets, scrolls, sound or pictures 
recording tapes and discs of various kinds, films (i ncluding cinematographic films and video films), 
photos, practical arts, and other cultural docum ents and products of depraved, reactionary, 
superstitious or morally pernicious content.  Prohibited toys included virtual toys propagating 
violence or running counter to traditional Vietnamese morals.   
124. Some Members asked whether Viet Nam app lied procedures which met the definition of 
automatic import licensing under the Agreement on Import Licensing Procedures and sought an 
explanation why government ministries needed to supervise the quality of imported products as this 
should be an issue determined betw een buyers and sellers.  Viet Na m was requested to clarify, for 
each tariff line item, why licensing was imposed  and the precise conditions under which licences 
would not be issued or would be restricted in volume or otherwise.   WT/ACC/SPEC/VNM/4/Rev.1 
Page 42  
 
125. In reply, the representative of Viet Nam pr ovided information on import licensing procedures 
in document WT/ACC/VNM/3/Add.1, Annex 3.  Products subject to import licensing (as of 
1 May 1997) are listed in Table 5.  Products subject  to line management, i.e. import licensing by line 
Ministry, are listed by HS number in Table 5.1.  He added that import restrictive line-management 
measures had been eliminated in early 2001.  Annex 3 of the Prime Minister's Decision 
No. 46/2001/QD-TTg of 4 April 2001 stipulated that  imported products subject to line management 
for the purpose of health, safety, etc., once allo wed for use in Viet Nam, would be imported upon 
demand and not subject to limitation in amount or valu e.  Current measures we re applied to supervise 
product quality and safety - for example for pharmaceu ticals, breeding animals and plants - and were, 
in his view, in compliance with international pr actice and with WTO provisions, notably Articles XX 
and XXI of the GATT 1994.  The fees associated with  the issuance of licences were consistent with 
the Ordinance of Fees and Charges and, in his opinion, modest and commensurate with the related 
administrative costs.   
126. A Member requested Viet Nam to list the inte rnational environmental conventions Viet Nam 
was a party to, and the rules and standards specifically applied when requiring licenses on 
unprocessed wood and forestry products.  This Member  also asked Viet Nam to explain the rationale 
behind the licence requirement for importation of "complete equipment for forestry production and 
wood processing industry" based on " management of  quality and standards of imported technology". 
127. The representative of Viet Nam replied that Vi et Nam was a signatory to the Convention on 
World Cultural Heritage and Natural Resour ces Conservation signed on 19 October 1987; the 
Convention on Wetland of Internati onal Importance, especially of  Waterfowls Habitat (Ramsar), 
signed on 20 January 1989; the Convention on Inte rnational Trade in Endangered Species of Wild 
Flora and Fauna (CITES), signed 20 January 1994; th e Protocol on Ozone destructive substances; the 
Framework Convention on Climate Change, si gned on 16 November 1994; the Convention on 
Biological Diversity (CBD), signed on 16 November  1994; the Convention on Marine Law, signed in 
1994; the Basel Convention on controlling the trans it and disposal of dangerous waste, signed in 
1995; and the Convention on Combat Desertification (CCD), signed on 23 July 1998.  He added that 
Viet Nam no longer maintained the licence requireme nt for importation of "complete equipment for 
forestry production and wood processing industry" based on " management of quality and standards 
of imported technology".  Importe d second-hand equipment, machinery and materials in connection 
with foreign investment projects were only subject to general requirements re lating to labour safety, 
environmental protection, and product and service quality.  An earlier certification requirement 
regarding the remaining quality of imported used  equipment or machinery was no longer effective 
(Decision No. 06/2003/QD-BKHCN of 3 April 2003 of the Ministry of Science and Technology).    WT/ACC/SPEC/VNM/4/Rev.1 
 Page 43 
 
 
128. Some Members sought a commitment from Viet  Nam that, upon accession to the WTO, it 
would only maintain those import restrictions that can be justified under WTO rules.  Vi et Nam was 
requested to submit a detailed action plan for the introduction of licensing procedures that conform to 
WTO rules.  Notably, Article 1.6 of the Agreem ent on Import Licensing Procedures stipulated that 
licence applicants should need to approach only on e body, and not more than three administrative 
bodies if "strictly indispensable".  Viet Nam would al so need to bring its licensing regime into full 
compliance with the time-limits for processing of import licence applications as set out in 
Article 3.5(f) of the Agreement on Import Licensing Procedures. 
129. In reply, the representative of Viet Nam subm itted an action plan for the implementation of 
the WTO Agreement on Import Licensing Procedur es (WT/ACC/VNM/22), subsequently revised in 
document WT/ACC/VNM/22/Rev.1.  According to th e revised plan, Viet Nam would ensure full 
compliance with the Agreement by 1 January 2 005, except for the submission of publications 
containing information on import licensing procedures to the Secretariat (obligation under Article 1.8), and the provision of all relevant info rmation to Members interested in the trade in a 
product subject to non-automatic licensing (Article 3.5.a).  The two latter provisions would be 
complied with upon Viet Nam's accession to the WTO.   He added that Viet Nam intended to comply 
with the provisions of the Agreement on Import Licensing Procedures upon accession either by (i) 
including import licensing provisions in the (ame nded) Commercial Law planned to be submitted to 
the National Assembly in September 2004; or (ii) in case the drafting of the above Law could not be 
completed in time, to issue regulations in the form of a Government Decision in order to fully comply 
with the WTO Agreement on Import Licensing Procedures. 
Customs valuation  
130. The representative of Viet Nam said that customs valuation of  imported and exported goods 
was carried out in accordance with the Law on Expor t-Import Duties.  The basic valuation principle 
was the "contract price", which was not entirely synonymous with the "transaction value" stipulated in 
the Agreement on Implementation of Article VII of  the General Agreement on Tariffs and Trade 1994 
(the Customs Valuation Agreement).  Viet Na m provided information on the implementation and 
administration of the Customs Valuation Agreemen t in document WT/ACC/VNM/3/Add.1, Annex 4.  
He acknowledged that several of the provisions of the Agreement had not yet been implemented in 
Viet Nam. 
131. He added that Viet Nam was taking steps to implement the WTO Customs Valuation 
Agreement.  The National Assembly had adopted  the new Law on Customs on 29 June 2001, and 
Government Decree No. 102/2001/ND-CP of 31 December 2001 provided detailed procedures and WT/ACC/SPEC/VNM/4/Rev.1 
Page 44  
 
processes to conduct post-clearance examination for exported and imported goods.  Viet Nam had 
also introduced measures to combat  commercial fraud and transfer pricing.  In addition, customs 
officers and the business community needed training to  use the new valuation procedures.  Viet Nam 
had established a Working Group to promote implem entation of the Agreement.  The Government 
had promulgated Decree No. 60/200 2/ND-CP to implement the Agreement on a pilot basis for goods 
imported from ASEAN countries under the ASEAN Common Effective Preferential Tariff (CEPT) 
Program.   
132. Some Members noted that Viet Nam used mini mum import prices in customs valuation, and 
that Viet Nam's valuation practices resulted in hi gher tariffs on imports from some countries, raising 
issues of non-MFN treatment of imports, transpar ency and consistency with the Agreement on 
Customs Valuation.  The proliferation of this pract ice to include differential valuation treatment for 
wines, spirits and ceramic tiles was highlighted.   
133. The representative of Viet Nam replied that the minimum import prices were determined 
jointly by the Ministry of Finance and the Mini stry of Trade.  The minimum import prices were 
adjusted periodically to take account of fluctuations  in world market prices.  Products of different 
origin varied in quality, level of consumer confid ence and retail sales price, and Viet Nam's minimum 
import prices reflected the influence of these factors.  Viet Nam had removed minimum customs values for wines, spirits and ceramic tiles imported fr om the EU in exchange for preferential treatment 
to Vietnamese exports of textiles and clothing pr oducts.  He added that Viet Nam was generally 
phasing out its minimum import values.  The differe nces in the minimum import prices of goods from 
various origins had already been narrowed.  The number of commodity groups subject to minimum value had been cut from 15 to 7 in 2000.  Goods  subject to minimum customs values as per 
April 2004 are listed in Table 6.   
134. Asked to clarify whether an importer had the right to judicial review of customs valuation 
decisions by an independent judicial body, and that recourse to an independent tribunal would not 
preclude the right to lodge administrative appeal s, the representative of Viet Nam said that under 
current rules an importer could appeal either to a higher administrative body or bring a case before the Administrative Court in accordance with Article 13 of the Ordinance on Procedures for Settlement of 
Administrative Disputes of 21 May 1996.  Cases brought forward by one complainant would be 
handled by the Administrative Court.  Final a nd binding decisions on appeals to the higher Customs 
bodies were taken by the Minister of Finance; in  exceptional cases the Minist er's decision could be 
brought before the Prime Minister.  In order to comply fully with Article 11(2) of the Agreement on Customs Valuation, Viet Nam was consideri ng amending the existing Law on Complaint and 
Denunciation.    WT/ACC/SPEC/VNM/4/Rev.1 
 Page 45 
 
 
135. A Member sought a commitment from Viet Nam to  implement fully the provisions for the 
valuation of carrier media bearing software for data processing equipment and the provisions on the 
treatment of interest charges in the customs value of imported goods.  The representative of Viet Nam 
replied that carrier media bearing software and inte rest charges were being valued in accordance with 
the basic principles of the Agreement on Customs Valu ation.  He added that the valuation of carrier 
media bearing software raised complex issues a nd Viet Nam would appreciate receiving additional 
assistance on this matter. 
136. Some Members requested Viet Nam to provide a detailed action plan specifying each measure 
necessary for the implementation of the Agreement a nd target dates for implementation.  The action 
plan should include early elimination of minimum cu stoms values, which resulted in higher tariffs on 
imports from some countries and were considered inconsistent with the MFN, transparency and 
consistency requirements of the Agreement on Customs Valuation.   
137. In reply, the representative of Viet Nam subm itted an action plan for the implementation of 
the Custom Valuation Agreement.  The action plan was subsequently revised (see documents 
WT/ACC/VNM/20 and Revisions 1 and 2).  He noted that domestic legislation to implement the 
Customs Valuation Agreement had been largely co mpleted with the promulgation of Government 
Decree No. 60/2002/ND-CP of 6 June 2002.  The Mini stry of Finance had promulgated Circular No. 
118/2003/TT-BTC of 8 December 2003 guiding the implementation of Decree No. 60/2002/ND-CP 
of 6 June 2002.  The new system would be applied on a pilot basis for certain target groups from 
1 January 2004.  The minimum customs values stipulated in accordance with Decisions Nos. 
164/2000/QD-BTC of 10 October 2000, 136/2001/QD-BTC of 18 December 2001 and 164/2002/QD-BTC of 27 December 2002, affecting imports of goods enumerated in Table 6, would be eliminated 
upon accession.  Relevant legislation addr essing this issue would be promulgated. 
138. [The representative of Viet Nam confirmed that, from the date of accession, Viet Nam would 
apply fully the WTO provisions concerning customs valuation, including the Agreement on the 
Implementation of Article VII of the GATT 199 4 and Annex I (Interpretative Note) and the 
provisions for the Valuation of Carrier Media Bearing Software for Data Processing Equipment 
(Decision 4.1), providing that valuation of the soft ware was based on the value of the media.  He 
stated that Viet Nam would not use any form of reference price or fixed valuation schedule for the 
valuation of imports or to apply du ties and taxes, and that all methods of valuation used were in strict 
conformity with those provided for in the WTO Agreement on the Implementation of Article VII of 
the GATT 1994.  The Working Party took note of these commitments.]   WT/ACC/SPEC/VNM/4/Rev.1 
Page 46  
 
Rules of origin 
139. A Member requested Viet Nam to supplement or amend its legislation to meet all aspects of 
the Agreement on Rules of Origin, in particular the requirements of Article 2(h)  and paragraph 3(d) of 
Annex II of the Agreement.   
140. The representative of Viet Nam said that Viet  Nam had issued several legal documents to 
implement ASEAN preferential rules of origin as well as non-preferential ru les of origin, including 
Decision No. 416/TM-DB of 13 May 1996 of the Minister of Trade, and joint-ag ency Circulars of the 
Ministry of Trade and the General Customs Department Nos. 09/2000 /TTLT-BTM-TCHQ of 
17 August 2000 and 22/2001/TTLT-BTM-TC HQ of 2 October 2001.  Viet Nam was participating in the 
ASEAN Free Trade Area (AFTA) and the preferential rules of origin of AFTA, and importers were thus required to submit certificates of  origin (form D), proving 40 per cent ASEAN cumulative origin, for 
goods imported under the CEPT implementing the ASE AN Free Trade Area.  Importers were also 
required to provide certificates of origin issu ed by relevant authorities in accordance with 
international practices (or as provided in the contr act).  The owners of the goods, or the customs 
agents acting on their behalf, were legally responsibl e for the accuracy of the information contained in 
their certificates of origin.   
141. The existing legal documents were, in his view , consistent with the Agreement on Rules of 
Origin, although they did not elaborate fully all aspects governed by the Agreement, including the requirements of its Article 2(h).  Viet Nam was considering drafting a higher level legal document 
addressing the remaining issues.  He confirmed that  Viet Nam intended to comply fully with the 
Agreement on Rules of Origin from the date of accession.   
Other customs formalities 
142. Some Members noted that Viet Nam’s customs procedures were complicated and at times 
unpredictable, depending on the discretion of customs officials.  Moreover, continued high tariffs 
appeared to be contributing to rampant smuggling, putting goods cleared through the official channels 
at a disadvantage in the Vietnamese market.  The presence of significant quantities of illegally copied 
goods was also noted.  Viet Nam was urged to establish prompt, simplified and more transparent 
customs procedures, as well as to strengthen the pr otection of intellectual property rights, including 
the enforcement capability of border measures. 
143. The representative of Viet Nam said that Viet Nam was making continuous efforts to ensure 
fair trade and reinforce legal compliance.  His Government had established a Steering Committee to supervise activities to combat smuggling and fraudul ent trading practices, and Viet Nam's customs  WT/ACC/SPEC/VNM/4/Rev.1 
 Page 47 
 
 
administration was receiving technical assistance fro m the World Customs Organizations and bilateral 
donors to strengthen and enforce anti-smuggling measur es.  The General Department of Customs had 
organized training courses to enhance the knowledg e of Viet Nam's customs regulations among 
customs officials, and cooperated with the Viet  Nam Chamber of Commerce and Industry to raise 
awareness of the Law on Customs and its guiding legal documents among ot her agencies and the 
business community.  Customs procedures were publicly known and transparent.  In addition, a "hot-
line" communication system had been set up in cu stoms agencies to discourage bribery practices.   
Pre-shipment inspection 
144. Some members noted that Viet Nam did not ap ply preshipment inspection requirements.  In 
case Viet Nam would contract the services of pr e-shipment inspection firms, the Government of 
Viet Nam was asked to ensure that the operations of such firms be consistent with the relevant WTO 
Agreements, in particular GATT Article VIII, th e Agreement on Preshipment Inspection and the 
Agreement on the Implementation of Article VII of the GATT 1994.  A member requested a 
commitment that Viet Nam would not apply PSI measures until WTO-consistent legislation had been implemented. 
145. In reply, the representative of Viet Nam said th at Viet Nam would take into consideration the 
provisions of WTO Agreements in the formulation of its  policies in this area.  While indicating initially 
that preshipment inspection might be introduced on a trial basis on particular  consignments, he later 
confirmed that Viet Nam was not applying mandator y preshipment inspection, and was not preparing 
any legislation covering th is subject matter.   
146. The representative of Viet Nam stated that if preshipment inspecti on requirements were 
introduced, they would be temporary and in confor mity with the requirements of the Agreement on 
Preshipment Inspection.  Viet Nam would take full  responsibility to ensure  that such enterprises 
operating on its behalf complied with the provision s of WTO Agreements.  Decisions by such firms 
could be appealed by importers in the same way as  administrative decisions taken by the Government of 
Viet Nam.  The Working Party took note of these commitments. 
Anti-dumping, countervailing duties, safeguard regimes 
147. The representative of Viet Nam said that Viet Nam at the outset had no provisions on 
antidumping, countervailing duty or safeguard measures in  its legislation.  He noted, however, that the 
Law on Amendment and Revision of a number of Articles in the Law on Import and Export Duties (Articles 2 and 9), passed by the National Assemb ly on 20 May 1998, would allow the imposition of 
additional duty on goods imported at a price lower than the "normal price as a result of dumping WT/ACC/SPEC/VNM/4/Rev.1 
Page 48  
 
practices, and consequently causing difficulties to  domestic producers of like products" or "normal 
price resulting from subsidy in the exporting country , consequently causing difficulties to domestic 
producers of like products".  Viet  Nam could also impose additi onal duty on goods originating in 
countries that applied "d iscriminatory treatment against Vietname se goods with respect to tariff rates 
and/or any other measures".  He co nsidered this provision necessary to  ensure that Viet Nam, as a non-
WTO Member, would not be disadvant aged in international trade. 
148. The representative of Viet Nam acknowledged that Viet Nam needed to establish a proper 
legal and institutional framework to enforce provi sions on antidumping and countervailing measures.  
Ordinances on Antidumping and Countervailing Measur es were in preparation and slated for adoption 
by the Standing Committee of the National Assembly  [prior to Viet Nam's accession to the WTO].  
He expected the Ordinance on Antidumping Measures to be submitted to his Government in [late 
2003], and the Ordinance on Countervailing Measures in [2004].  He added that the Standing 
Committee of the National Assembly had appr oved an Ordinance on Safeguard Action on 
25 May 2002.  The Ordinance had entered into fo rce on 1 September 2002, and had been submitted to 
the Working Party.  
149. A Member asked whether Viet Nam was ready to  make a commitment that, in the absence of 
WTO compatible rules on antidumping and counte rvailing regimes, Viet Nam would not impose 
similar remedies to foreign goods.  The representative of Viet Nam replied that Viet Nam reserved the 
right to apply WTO-consistent anti-trade dist ortion measures and trade remedies to dumped or 
subsidized imports, causing or threatening to cause injury to domestic production of like products, to 
protect the legitimate interests of Vietnamese producers.   
150. [The representative of Viet Nam said that any legislation in place at the time of accession or 
implemented in the future providing for the appli cation of measures taken for safeguard, anti-dumping 
or countervailing duty purposes would be brought in to conformity with the provisions of the WTO 
Agreements on Safeguards, on Anti- dumping and on Subsidies and Countervailing Measures.  In the 
absence of such conforming legislative authority in place at the time of accession, Viet Nam would 
not apply measures for safeguard, anti-dumping or  countervailing duty purposes until legislation in 
conformity with the provisions of these WTO Ag reements had been implemented.  The Working 
Party took note of this commitment.]  WT/ACC/SPEC/VNM/4/Rev.1 
 Page 49 
 
 
2. Export regulation  
- Customs tariffs, fees and charges for services rendered, application of internal taxes to 
exports 
151. The representative of Viet Nam said that Vi et Nam levied export duties on some non-
renewable minerals and natural r esources exported in raw form.  The main purpose of these export 
duties was to protect scarce natural resources, limit the export of strategic goods, and to regulate and 
reconcile revenue to the State budget. 
152. Export duties were imposed in accordance with  the Law on Import, Export Duties.  Viet Nam's 
export duties were applied on an MFN basis.  Ra tes of export duty ranged from zero on processed 
products to 45 per cent on scrap metal.  Goods subject to export  duties are listed in Table 7. 
153. In addition, surcharges were or had been applie d to exports of coffee, rubber and cashew nuts. 
The rates of surcharge were linked to fluctuations  in commodity prices, and the revenue had been 
channelled into the Price Stabilization Fund.  The ra tes of surcharge applied in 2000 are indicated in 
Table 1(b).  He added that an Export Promotion Fu nd had been established by the Prime Minister's 
Decision No. 195/1999/QD-TTg of 27 September 1999.  According to Article 3 of this Decision, 
revenue was collected on price differentials for certain imported and expor ted goods.  For exported 
goods, the price differential was calculated on the basi s of the actual export price, excluding freight 
and insurance, but inclusive of export tax a nd domestic distribution fee, if applicable. 
154. Asked whether Viet Nam intended to adjust the measures applied to cas hew nuts and coffee to 
make them consistent with WTO rules, the representa tive of Viet Nam said that surcharges applied to 
exports of coffee had been phased out since 1995.   Those applied for the benefit of the Export 
Promotion Fund would be adjusted in accordance wi th the requirements of the WTO.  Viet Nam was 
trying to reduce fees and charges appl ied to exports with a view to en couraging exportation.  He did not 
consider Viet Nam's regulat ions on surcharges to be at odds with WTO rules. 
Export restrictions 
155. Some Members noted that Viet Nam allowed only licensed businesses to export.  In addition, 
Viet Nam prohibited exports of timber logs, sawn  wood, charcoal, raw rattan and various semi-
processed and processed wood products "for the purpose of pr otecting the environment" and these 
Members asked whether Viet Nam could confirm th at domestic production of  these items was also 
restricted for the same reasons.  Some Members were also  concerned that Viet Nam's export quota on WT/ACC/SPEC/VNM/4/Rev.1 
Page 50  
 
rice was WTO-inconsistent, as Article XI of the GATT 1994 prohibited export quotas unless applied 
temporarily to prevent or reli eve critical food shortages. 
156. The representative of Viet Nam replied that the import-export licensing requirement had been 
abolished by virtue of Government Decree No. 57/1998/ND-CP of 31 July 1998, and that the working capital requirement for trading enterprises was no longer effective.  Viet Nam imposed pr oduct-
specific controls or restrictions on the items listed in Table 8.  Certain exports were subject to line 
management approval.  The Ministry of Aqua-cultu re licensed exports of certain aquatic species (see 
Table 9).  The list of products subject to export prohi bition, in his view, conformed to the requirements 
of Article XX of the GATT 1994.  An enterprise wishing to export a product on the prohibited list, 
submitted an application, including justifications fo r the exports, to the Mini stry or People's Committee 
concerned.  If these institutions cons idered the demand justifiable, the application would be submitted to 
the Prime Minister for final decision.  He added that Viet Nam restricted the cutting volume of wood 
and maintained an annual cutting allocation in additi on to quantitative restrictions on exports of wood.  
The production ceiling for wood products had been reduced from 617,000 m³ in 1995 to 300,000 m³ in 1999, and the corresponding export quotas for natu ral wood had been set at 330,000 m³ in 1996, 
80,000 m³ in 1997, 100,000 m³ in 1998 and 150,000 m³ in 1999. 
157. In order to ensure national food security, Viet Na m had controlled the export of rice by setting 
indicative export volumes and by channelling expor ts through so-called fo cal point exporters.  
According to Decision No. 141/TTg of the Prime Mins ter "On the Administration of Rice Exports and 
Fertilizer Imports in 1997" of 8 Marc h 1997, rice export quotas had been  allocated to provincial People's 
Committees based on the output of rice paddy in co mmercial quantities in each province, and the 
provincial People's Committees allo cated their quotas to enterprise s based on their actual export 
capacity.  Quotas had also been dist ributed to certain Central Food Cor porations based on their capacity.  
Enterprises had been required to be members of the Vietnamese Foods  Association to be eligible for 
quota allocations.  An enterp rise unable to fill its a llocated quota would need to  report promptly to the 
Ministry of Trade and the Ministry of Agriculture and Rural Development.  The Prime Minister could 
transfer unused entitlem ents to other enterprises; no other form of  quota transfer or sale was permitted. 
158. The Government had announced the indicative expor t volume to be allocated to enterprises at 
the beginning of each year base d on forecasts for annual consumption, storage and production.  The 
indicative export volume could be adjusted during the year, and actual exports had exceeded the indicative levels in 1998 and 1999.  As for the foca l point exporters, only St ate-owned enterprises had 
held the right to export rice in the past.  Foca l point status was no longe r limited to State owned 
enterprises and, since 1998, other Vi etnamese enterprises regardless of form of ownership had also been 
entitled to export rice.  The number of enterprises ex porting rice had increased from 26 in 1997 to 64 in  WT/ACC/SPEC/VNM/4/Rev.1 
 Page 51 
 
 
1999, and had continued to rise in 2000.  He confirmed that minimum e xport prices on rice and crude 
oil, serving only as guidance prices, had been abolished. 
159. Noting that export quotas were generally not justified under WTO rules, some Members 
requested a commitment that Viet Nam would only maintain those export restrictions that could be justified under WTO rules upon accession to the WTO.  Some Members did not consider Viet Nam's 
export controls, in particular those on rice and timb er, in conformity with WTO provisions.  Viet Nam 
was requested to revise its regime to introdu ce WTO consistent measures to achieve its policy 
objectives, and to provide a clear timetable for th e elimination of measures inconsistent with WTO 
rules. 
160. In reply, the representative of Viet Nam said th at rice was considered vital for Viet Nam's 
socio-economic security, and Viet Nam therefore di d not intend to eliminate controls on production 
(and trade), but would develop a flexible control mechanism.  He added that rice export quotas had 
been eliminated, and that Viet Nam was not applyi ng any export restriction on rice at present.   
Export subsidies 
161. The representative of Viet Nam provided info rmation on industrial subsidy programmes, 
including export subsidies, in documents WT/ACC/VNM/13 (covering the period 1996-1998), 
WT/ACC/VNM/13/Add.1 (for 1999-2000), and WT/A CC/VNM/13/Add.2 (2001-2002).  Viet Nam 
had established an Export Promotion Fund to assist, encourage and promote exportation of 
Vietnamese products.  Subsidies were provided in th e form of interest rate support (full or partial 
refund of interest incurred on ordinary bank loans); di rect financial support, particularly to first-time 
exporters, for exports to new markets, or goods subj ect to major price fluctuations; and export rewards 
and bonuses.  Total expenditure from the Export Pr omotion Fund had amounted  to 128.4 billion Dong 
(about US$9.2 million) in 2000.  Asked to define th e terms "financial support" and "export reward", 
the representative of Viet Nam said that financial support covered any kind of financial benefit, and 
that both financial support and export rewa rd could be considered as grants.   
162. Export rewards were paid to traders exporting new products of recognized high quality, based 
on labour intensive manufacturing or the processing of local raw materials.  In order to receive a "Certificate on Export Performance", successful traders would also need to satisfy criteria with respect 
to minimum export volume or export growth.  Sinc e 1998, the average annual export reward to each 
eligible enterprise had ranged between US$2,900 and US$4,710.  The programme to provide export 
bonuses had targeted exports of agricultural products  in 2001, but in 2002 the programme had been 
extended to include non-agricultural products such  as handicrafts, rattan and bamboo ware, plastic 
products and mechanical products (Decisi on No. 63/2002/QD-BTC of 21 May 2002).   WT/ACC/SPEC/VNM/4/Rev.1 
Page 52  
 
163. The Export Promotion Fund also provided support to enterprises for expenditures on trade 
promotion activities such as participation in trade fairs and exhibitions, market surveys, consultancy 
fees and the opening of trade promotion centres and re presentative offices abroad since the beginning of 
2001.  Payments were determined on the basis of exported value (0 .1-0.2 per cent), but the support could 
not exceed 50-70 per cent of the actual expend itures of enterprises on such activities.   
164. Effective since 25 September 2001, the Develo pment Assistance Fund – which had been 
established in 1999 to assist in the implementation of important economic projects and the 
development of disadvantaged areas - was administering an export credit programme, covering short-term loans and guarantees, medium and long term i nvestment loans, post-investment interest rate 
support and investment credit guara ntees.  Viet Nam had granted s hort-term export support loans 
amounting to 140 billion dong in 2001 and 3,006 billion dong in 2002.   
165. He added that Viet Nam granted a five year  tariff exemption on the importation of production 
raw materials to foreign invested enterprises expor ting at least 80 per cent of their products, or 
50 per cent in the case of agricultural, forestry or a qua-cultural products.  Investment in such projects 
were "specially encouraged" acco rding to Decree No. 24/2000/ND-CP.  He confirmed that the export 
ratio requirement would be eliminated upon Viet  Nam's accession to the WTO.  Domestic firms 
producing goods for export were exempted from im port duties on the importation of equipment, 
machinery, and specialized transportation means used  in the establishment of the enterprises' fixed 
assets.  Fixed assets used in the production, processing or assembly of exported goods had been subject 
to accelerated depreciation (half the normal duratio n).  In addition, enterprises in the software and 
mechanical industry benefited from duty exemp tion on the exportation of their products.   
166. Some Members noted that Viet Nam appeared to  be using incentives stipulated in Decree 
No.24/2000/ND-CP which were linke d to export performance or use of local raw materials and 
resources, and that the criteria employed in the allo cation of such incentives we re unclear a nd potentially 
open to abuse.  Moreover, the e xport bonuses granted in accordance with Decisions Nos. 65/2001/QD-
BTC and 63/2002/QD-BTC would appear questionable in  the light of Article 3 of the Agreement on 
Subsidies and Countervailing Measures.  A Member note d that Viet Nam considered itself a low-income 
developing country eligible to maintain e xport subsidies under the Agreement on Subsidies and 
Countervailing Measures (SCM).  However, Article  27.2(a) of the Agreement was specific to 
developing countries referred to in Annex VII of the SCM, and this was not a self-nominated or 
expanding list of countries.  Moreover, the provisions of Article 27.4 of the Agreement, available to 
developing countries with a small share of world expor t trade, would not be available to Viet Nam.  
While ready to consider some flexibility as to how  Viet Nam would phase out its prohibited export 
subsidies, this Member maintained that Viet Na m should have no recourse to provisions allowing the  WT/ACC/SPEC/VNM/4/Rev.1 
 Page 53 
 
 
use of prohibited subsidies following its accession.  Moreover, as Viet Nam would be acceding to the 
WTO after the lapse of the phase-out period for expo rt subsidies by developing countries, Viet Nam 
should phase out its export subsidy schemes upon accession.   
167. In reply, the representative of Viet Nam confir med that subsidies contingent on localization 
ratios and the use of domestic over imported goods w ould be eliminated upon Viet Nam's accession to 
the WTO.  As for subsidies in the form of dir ect payments contingent on export performance, he 
proposed that Viet Nam would abolish such subsidi es within five years from the date of accession to 
the WTO.  Viet Nam would seek to maintain subsid ies in the form of inv estment incentives until its 
per capita GNP reaches US$1,000.   
3. Internal policies affecting foreign trade in goods 
Industrial policy, including subsidies  
168. The representative of Viet Nam said that Viet  Nam's socio-economic development strategy 
was orientated towards industrialization and mode rnization.  The State had concentrated on 
rehabilitation, upgrading and construc tion of infrastructure such as electricity and water supply, roads, 
airports, sea-ports and post and telecommunications f acilities.  Most of Viet Nam's industries were at 
the initial stage of development and frequently suffered from low competitiveness.  The paper 
industry, for example, was characterized by sma ll scale, inefficient technology, poor product range, 
low quality and high production costs.  At the same  time, the industry was important for the living 
standards of farmers supplying raw materials fo r the production of paper.  The industry was 
accordingly protected by high tariffs and import control measures.   
169. The representative of Viet Nam submitted a "Notif ication on Industrial Subsidies Pursuant to 
Article XVI:1 of the GATT 1994 and Article 25 of  the Agreement on Subsidies and Countervailing 
Measures" for the period 1996-1998 in document WT/ACC/VNM/13, updated to cover the period 
1999-2000 in document WT/ACC/VNM/13/ Add.1, and 2001-2002 in document 
WT/ACC/VNM/13/Add.2.  According to the up-date d notifications, Viet Nam provided import duty 
reductions on inputs to certain mechanical-electric and electronic industries; investment incentives to 
labour intensive domestic enterprises; support to enterprises employing a great number of female 
employees; development assistance to some projects in mechanical industries; investment incentives 
to domestic and foreign invested enterprises produc ing goods for export, or operating in certain 
business fields and sectors, or certain areas; de velopment assistance to enterprises located in 
disadvantaged areas; assistance channelled throu gh a Development Assistance Fund; investment 
assistance for science and technology development; s upport for the development of priority industrial 
products; assistance for the development of software  industry; assistance for newly-established or WT/ACC/SPEC/VNM/4/Rev.1 
Page 54  
 
expanding Vietnamese enterprises or domestic enterpri ses moving to disadvantaged areas; as well as 
assistance to Vietnamese enterprises c onducting special activities.  He noted that most of the subsidy 
programmes were based on tax concessions or exemp tions, i.e. revenue foregone to his Government, 
and that Viet Nam's statistical and data manageme nt systems were not yet sufficiently developed to 
estimate the revenue foregone and thus to provide da ta on total subsidy amount or subsidy per unit for 
most of the programmes listed.  However, in his assessment most of the programmes provided only 
minor subsidies. 
170. The import duty reduction programme for domest ic and foreign-invested enterprises 
producing or assembling mechanical, electric, or el ectronic products and/or parts of these products 
was contingent on local content, but not on expor t performance.  Details on the tariff reductions and 
corresponding local sourcing ratios are provided in Ta ble 10.  The programme was part of Viet Nam's 
overall industrialization strategy, a lthough he recognized that the programme only played a useful role 
in the development phase of these industries.  Current  legislation did not specify eligibility criteria or 
indicate any timeframe for the application of the s ubsidy.  However, he confirmed that the import 
duty reduction programme for two-wheel motorcyc les and parts had not been applied since 
1 January 2003.  He confirmed that the duty reduc tions were the only incentives provided to recipient 
firms under this programme, and that firms reducin g their local content ratios without approval from 
the competent authorities would face sanctions, including repayment of rebated duty.  
171. Labour-intensive domestic enterprises were eligib le for exemption or re duction of land rental 
and land use tax, and extended corporate income ta x exemption and reduction.  The programme aimed 
primarily at creating employment and improving pe ople's income and conditions of living.  He 
confirmed that the incentives provided under this  programme were not industry- or enterprise-
specific, and were linked entirely to the number of employees.  Land rental fees differed from region 
to region and the average value of the subsidy could not be determined.  Domestic and foreign-
invested enterprises employing a large number of fe male employees were entitled to corporate income 
tax reductions.  The enterprises could also deduct expenses related to the employment of female 
workers from the taxable income.  The programme  was not enterprise- or industry-specific. 
172. A programme to develop the mechanical indus try was channelled towards manufacturing of 
bicycles, electric fans, small-size power engines and maritime ships.  Assistance was provided in the 
form of preferential credits; co rporate income tax exemption or reduction; exemption from export 
duties; and import duty exemption on components, acce ssories, materials and equipment.  Eligible 
firms were enterprises facing difficulties in rais ing capital to upgrade the technology used in 
production.  By February 1998, the programme had provided assistance to 34 projects in four 
mechanical sub-sectors (bicycle, electric fan, pow er machine, and shipbuilding).  Manufacturers  WT/ACC/SPEC/VNM/4/Rev.1 
 Page 55 
 
 
and/or exporters of selected products - computer software and mechanical products including diesel 
engines, power engines, bicycles and electric fans - had also been eligible for preferential credits from 
commercial banks between September 1998 and Octo ber 1999.  However, this programme - providing 
credit at a monthly interest rate 0.2 per cent lower than on normal export credits accorded by these 
banks - had been discontinued. 
173. Export oriented foreign-invested enterprises bene fitted from investment incentives in the form 
of exemption of corporate income tax or preferen tial tax rates, and exemption of import duties.  
Domestic enterprises producing goods for export were  also entitled to various subsidies, including 
exemption or reduction of land use payment, land rental, and land use tax; preferential corporate 
income tax rates; extended corporate income tax exemption and reduction; exemption or reduction of 
the corporate income tax payable on the income attributable to expans ion and/or enhancement 
investments; exemption from supplementary cor porate income tax; import duty exemption on 
equipment and machinery constituting the enterp rise's fixed assets; and additional preferential 
treatment with respect to corporate income tax.   
174. His Government granted investment incentiv es to foreign-invested and domestic firms 
operating in certain business fields and sectors of national development priority.  Decree 
No. 24/2000/ND-CP identified investment project s which were "specially encouraged" or 
"encouraged", reproduced in Annexes IV and V of document WT/ACC/VNM/13/Add.2.  Foreign 
investment in such projects were eligible for pref erential rates of corporate income tax, reduction or 
exemption of corporate income tax, or duty exemp tions for imported fixed assets and materials.  As to 
domestic firms, these were eligible for exemption or reduction of land use pa yment, land rental, and 
land use tax; preferential corporate income tax ra tes; extended corporate income tax exemption and 
reduction; exemption or reduction in the corporate in come tax payable on the income attributable to 
expansion and/or enhancement investments; exemp tion from supplementary corporate income tax; 
and import duty exemption on equipment and machinery constituting an enterprise's fixed assets.  The 
business fields and sectors covered under the prog ramme were listed in Annex I of document 
WT/ACC/VNM/13/Add.2.  He confirmed that some of the incentives conferred to foreign-invested 
firms were contingent on export performance, but argued that most of the sectors were important for 
the development of disadvantaged regions.  Regiona l development support in the form of investment 
incentives was, in his view, legitimate for a lo w income developing country in the process of 
economic transition such as Viet Nam.   
175. Enterprises operating in socio-economic disadvantaged areas were entitled to investment 
incentives.  The list of areas in which foreign-i nvested firms could benefit from incentives had been 
published in Decree No. 24/2000/ND-CP of 31 July 2000, and was reproduced in Annex VI of WT/ACC/SPEC/VNM/4/Rev.1 
Page 56  
 
document WT/ACC/VNM/13/Add.2.  All projects ope rated by foreign-owned enterprises in these 
areas were entitled to incentives in terms of prefer ential corporate income tax rates, exemption or 
reduction in corporate income tax, import duty ex emption and preferential remittance tax rates.  
Domestic firms operating in the areas listed in Annexes II and III of document WT/ACC/VNM/13/Add.2 could benefit from exemp tion or reduction in land use payment, land 
rental, and land use tax; preferential corporate in come tax rates; extended corporate income tax 
exemption and reduction; exemption or reduction of the corporate income tax payable on the income 
attributable to expansion and/or  enhancement investments; exemption from supplementary corporate 
income tax and personal income tax; and impor t duty exemption on equipment and machinery 
constituting an enterprise's fixed assets.   
176. Benefits granted through the Development Assist ance Fund to assist in the implementation of 
important economic projects and the development of disadvantaged areas included preferential 
investment credits ("development investment loan s"), post-investment interest-rate support, and 
investment credit guarantee.  Enterprises investi ng in technology research and development benefitted 
from preferential corporate income tax rates; ex emption and reduction in corporate income tax; 
exemption from supplementary corporate income tax;  preferential treatment in respect of land use 
payment, land rental, and land use tax; import dut y exemption; preferential credit terms and other 
forms of support.  He confirmed that the benefits and incentives provided under these two 
programmes were not contingent on export perform ance or on the use of domestic over imported 
goods. 
177. Viet Nam also supported some enterprises impl ementing projects to promote the development 
of priority industrial products.  Assistance took the form of import duty exemptions, preferential 
corporate income tax, preferential access to the State's development investment credits, and reduction 
of land rentals.  Enterprises eligible under this  program were the Viet Nam Shipping Industry 
Corporation, for the building of maritime ship s with a capacity of 11,500 tonnes; the Viet Nam 
Engine and Agriculture Machinery Corporation (VEAM), responsible for manufacturing internal 
combustion engines (below 30 CV); the Hanoi  Electronics Company (HANEL), which produced 
colour television sets; as well as sub-contractors to these enterprises.  Computers had been added to 
the list in February 2001 (Decision No. 19/2001/QD- TTg).  The representative of Viet Nam added 
that, in accordance with Circular No. 86/2000/TT- BTC of 16 August 2000, the import duty incentives 
would lapse on 31 December 2003.   
178. In the software industry, incentives were grante d to domestic and foreign-invested enterprises 
to stimulate investment and promote the supply of software-related services in Viet Nam.  Incentives 
included preferential corporate income tax rates, exemption from corporate income tax, preferential  WT/ACC/SPEC/VNM/4/Rev.1 
 Page 57 
 
 
treatment with respect to VAT, export duty ex emption, import duty exemption on materials, 
preferential access to the State's development invest ment credits, preferential treatment in respect of 
land use and land rents, and other forms of support. 
179. In 2001, Viet Nam had introduced a subsidy programme to support a Development Strategy 
(2001-2010) for the textile and clothing sector, focusing on projects to develop the production of textile materials, investment in waste water trea tment, infrastructure development, and training and 
research.  Assistance was provided in the form  of preferential credits, investment incentives, 
government guarantees and support to trade promotion activities.  Revenue from auctions of textile 
quotas and fees collected in gran ting such quotas were earmarked for trade promotion and human 
resources development.  By the end of 2002, medium  and long term loans totalling 1,379 billion dong 
had been granted to 56 projects, and the estimated  value of the subsidy elements of these loan 
agreements amounted to 395 million dong.  Viet Na m had also introduced a new preferential credit 
and tax incentive scheme for the shipbuilding indust ry in October 2000, provided new preferential 
credits for the mechanical industry since 2001, an d preferential credits for the manufacturing of 
motorcycle engines during 2002.  In addition, the Ministry of Finance had administered a programme 
to assist enterprises "facing difficulti es due to objective reasons" since January 2001.  The programme 
allowed enterprises in financial difficulties to postp one payment of taxes or other dues to the State 
budget for periods of 6-12 months, or to have th eir payment obligations forgiven or frozen.   
180. Newly-established or expanding Vietnamese ente rprises and domestic enterprises moving to 
mountainous, island and other disadvantaged areas were entitled to exemption and reduction in 
corporate income tax and - from 18 January 2002 - loan s at reduced rate of interest granted by State-
owned commercial banks.  Corporate income tax ho lidays were also granted to domestic enterprises 
engaged in scientific research; technical services  related to agriculture; vocational training for 
disabled persons, ethnic minority people, and childr en from families in difficulties; production, 
training or services to households earning less than the minimum salary of State employees; and 
enterprises employing disabled persons.   
181. Some Members stated that the subsidies provide d specifically to export-oriented enterprises 
were contingent on export performance.  In additio n, the investment incen tives granted to foreign-
invested firms producing goods for export appeared to  be contingent on local content.  Such subsidies 
were prohibited under the Agreement on Subsid ies and Countervailing Measures, and should 
accordingly be phased out.  Some Members also not ed that the import duty reduction programme for 
mechanical-electric and electronic industries appeared to be a pr ohibited import substitution subsidy 
according to Article 3.1(b) of the Agreement on Subsidies and Countervailing Measures, and would 
have to be phased out prior to accession.  It was al so noted that the interest rate support to certain WT/ACC/SPEC/VNM/4/Rev.1 
Page 58  
 
mechanical industries and Viet Na m's assistance to develop its software industry would seem to be 
linked to export performance.  Viet Nam was aske d to repeal all measures contingent on export 
performance.  Concerning Viet Nam's subsidies for regional development, some Members noted that 
these subsidies could be considered specific in  the WTO, and provisions which had allowed non-
actionable regional subsidies had lapsed on 31 December 1999. 
182. The representative of Viet Nam replied that, in his view, the incentives applied to export 
oriented production were consiste nt with WTO provisions available to certain developing countries.  
He requested the right for Viet Nam to maintain  these incentives in accordan ce with the special and 
differential treatment provisions of the WTO.  He  added that the import duty reduction programme for 
mechanical-electric and electronic industries would be  phased out by the date of Viet Nam's accession 
to the WTO, as indicated in Viet Nam's action pl an for implementation of the TRIMs Agreement.  
The preferential credits accorded to certain mechan ical industries were not, in his view, contingent on 
export performance nor on the use of domestic ove r imported goods.  The programme to assist the 
software industry would, in his opinion, be subject to the disciplines pertaining to trade in services.   
183. The representative of Viet Nam confirmed that subsidies contingent on localization ratios and 
the use of domestic over imported goods would be eliminated upon accession.  For subsidies in the 
form of direct payments contingent on export  performance, he proposed that Viet Nam would 
eliminate this form of subsidy within 5 years from th e date of accession.  As for subsidies in the form 
of investment incentives, Viet Nam would seek to maintain such subsides until its per capita GNP 
reaches US$1,000. 
Technical barriers to trade, standards and certification 
184. The representative of Viet Nam said that a St ate administration body - the Directorate for 
Standards and Quality (STAMEQ), reporting to th e Ministry of Science and Technology - was 
responsible for advising the Government on issues related to standardiza tion, metrology and quality 
management, and representing Viet Nam in inte rnational and regional st andardization fora.  
Information on technical barriers to trade w as submitted in document WT/ACC/VNM/3/Add.1, 
Annex 5, in which STAMEQ was designated as Viet  Nam's central contact point for standards, 
technical regulations and conformity assessment issu es, as well as the notification authority for TBT 
issues according to Decision No. 356/2003/QD-BKHCN of 25 March 2003 of the Ministry of Science 
and Technology.   
185. The main tasks of STAMEQ included preparation of rules and regulations on standardization, 
metrology and quality control for approval by the co mpetent authorities; supervision and control of 
the implementation of approved rules and regulatio ns; to organize and guide activities relating to  WT/ACC/SPEC/VNM/4/Rev.1 
 Page 59 
 
 
standardization, metrology and quality control; to formulate national standards; to perform quality 
system certification, product certification and accr editation of testing and calibration laboratories, 
quality inspection bodies and quality certification bodi es; to implement State supervision of quality 
requirements related to goods; to keep the national measurement standards; to organize and guide 
activities of verification, calibration, and certification of measuring instruments and patterns; to conduct studies on standardization, metrology and quality cont rol; to participate in international cooperation 
on standardization, metrology and quality control; and to provide information and training on these 
subjects. 
186. The legal framework for standardization, metr ology and quality control consisted of the 
Ordinance on Metrology No. 16/1999/PL-UBTVQH10 of 6 October 1999, the Ordinance on Goods 
Quality No. 18/1999/PL-UBTVQH10 of 24 Decemb er 1999, the Ordinance on Consumer Rights 
Protection No. 13/1999/PL-UBTVQH10 of 27 April 1999, the newly promulgated Ordinance on Food 
Safety and Hygiene No. 12/2003/PL-UBTVQH11 of 26 July 2003, issued by the National Assembly Standing Committee, and other rela ted 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 to guide the implementation of the Ordinance on Metrology and the 
Ordinance on Goods Quality.  He expected a new Ordinance on Standardizati on to be developed and 
introduced in 2007.  The main ministries involved in standardization and quality requirements were 
the Ministries of Science and Technology; Industry; Fisheries; Health; Trade; Agriculture and Rural 
Development; Post and Telematics; Resources and E nvironment; and Transport.  Asked to define the 
term "quality" more precisely, he said that the term should be understood in a broad sense.  The 
Ordinance on Goods Quality governed the state administration of quality through technical regulations with the aim to protect human health, safety, the environment and other legitimate objectives as indicated in the TBT Agreement.   
187. Concerning standardization, he said that over 5,600 national standards (Viet Nam standards) 
existed in Viet Nam as per October 2003, of which nearly 1,300 standards were foreign, regional and 
international standards adopted and translated fo r application in Viet Nam.  Draft technical 
regulations or standards were prepared by draf ting committees or technical committees respectively 
(for example, for drafting Viet Nam standards 86 technical committees and 38 sub-committees had 
been established to date).  These committees and sub-committees had been established by STAMEQ 
and were organized and operated in accordan ce with the guidelines of the International 
Standardization Organization (ISO).  In order to  facilitate the collection of comments on draft 
standards, STAMEQ posted the annual standa rds preparation program on the Internet 
(http://www.vsc.org.vn), and interested parties could request copies of draft standards for 
consideration and comment, if necessary.  Concerning technical regulations, the Law on the WT/ACC/SPEC/VNM/4/Rev.1 
Page 60  
 
Enactment of Legal Documents stipulated that for te chnical regulations issued by the Government, the 
Government would assign a drafting body to establis h drafting committees.  The drafting committees 
consisted of the relevant agencies and organizations, expert s and scientists.  Ministries or Ministerial 
level bodies issuing technical regulations established committees or working groups to assist in the preparation.  Draft technical regulations were - s ubject to their nature and content - submitted to the 
relevant bodies, organizations a nd individuals for comment.  These committees or working groups 
were dissolved upon completion of the assignment.   
188. Viet Nam was considering the issue of publicati on of draft standards and technical regulations 
for the purpose of comment prior to adoption.  Viet Nam had embarked on programmes to harmonize 
national standards with internati onal standards, particularly for electrical and electronic products, 
within the framework of ASEAN, APEC and ASEM. 
189. Several Vietnamese standards were compulsory  under the provisions of specific technical 
regulations.  Among the some 5,600 national standards listed in the Viet Nam Standards Catalogue in 
2002, 231 were mandatory.  Requested to provide  a list of the mandatory standards/technical 
regulations applicable in Viet Nam, he referre d Members to the internet homepage of STAMEQ 
(http://www.tcvn.gov.vn
).  Providing an example, he noted that on 24 December 1999, the Standing 
Committee of the National Assembly had adopt ed Ordinance No. 18/1999/PL-UBTVQH10 which 
stipulated that goods related to food, safety, san itary, human health, environment, and other goods 
specified by laws and regulations, were obliged to  be in conformity with Viet Nam's national 
standards.  The Ordinance had entered into force on 1 July 2000, superseding an Ordinance on Goods 
Quality of 27 December 1990.  The Ordinance st ipulated that both domestic and imported goods 
could be subject to either quality inspection - the list of goods would be determined by the 
Government - or quality certification, to be determ ined by Ministers.  Both methods were being 
developed and revised on the basis of ISO Guides.  Quality certification to establish the conformity 
with Viet Nam standards was mostly carried out on a voluntary basis.   
190. Viet Nam was developing safety certification, formerly known as "mandatory product quality 
certification", on the basis of Systems 4 of the ei ght third-party certification systems introduced by 
ISO, notably for electrical and electronic products.  Safety certification would include type testing and 
post-certification surveillance in the market or at th e production site.  Fees for testing, verification and 
related administrative formalities had been establi shed by the Ministry of Finance (Circular 
No. 83/2002/TT-BTC of September 2002), based on th e Ordinance on Fees and Charges promulgated 
by the National Assembly Standing Committee on 28 August 2001, and Government Resolution 
No. 57/2002/ND-CP of 3 June 2002.  According to this Circular, Vietnamese and foreign 
organizations and individuals paid State management fees and charges for the granting, testing, goods  WT/ACC/SPEC/VNM/4/Rev.1 
 Page 61 
 
 
quality State inspection, and verification of measuring instruments, by State administrative bodies for 
standards, metrology and quality, or other authori zed bodies.  The fees and charges were stipulated in 
Vietnamese Dong and were based on the costs of the services rendered.  Viet Nam had issued 
Decision No. 2424/2000/QD-BKHCNMT of 12 December 2000, introducing a procedure for supplier's declaration of conformity.  The procedure was based on ISO/IEC Guide 22.  Imported products were also subject to this method.  He e xpected supplier's declaration of product conformity 
to become the principal method of quality management  in Viet Nam in the future.  Viet Nam had also 
established certification schemes of quality assurance systems based on ISO guidelines, Codex (GMP, HACCP) and on the systems of other countries such as New Zealand and Japan. 
191. The representative of Viet Nam listed im ported and exported commodities subject to 
mandatory quality inspection in 1997 in docum ent WT/ACC/VNM/3/Add.1, Appendix 5.  When 
asked by some Members to update these lists he referred them to the website of STAMEQ 
(http://www.tcvn.gov.vn
).  The Ordinance on Goods Quality stipulated that the Government should 
issue a list of goods subject to mandatory quality insp ection.  The most recent list had been published 
in Decision 117/2000/QD-KHCNMT of 26 January 2000, but this list was currently subject to 
revision.  [Once published, the revised list will be provided to the Working Party.]  He added that 
mandatory registration of product qua lity had been abolished in early  2001.  Inspection procedures for 
imported and exported goods had been  simplified by moving towards a system of type testing.  The 
requirement to inspect each individual consignmen t could be waived for companies with a proven 
track record of quality.  The principle of simplifie d inspection procedures applicable to imported and 
exported goods had been approved by the Mini ster of Science and Technology in Decision 
No. 1091/1999/QD-BKHCNMT of 22 June 1999.  The detailed conditions under which simplified 
inspection procedures could be applied were specified  in regulations issued by the Directorate for 
Standards and Quality and line management ministri es for each type of goods.  Complaints against 
decisions by the authorities responsible for conf ormity assessment or quality inspection procedures 
were conducted in compliance with Viet Nam's Ordinance on Claim and Denouncement. 
192. Asked specifically about the quality inspecti on and customs procedure for imported goods 
subject to state quality inspection, he added that  the procedures were guided by Inter-Circular 
No. 37/2001/TTLT/BKHCNMT-TCHQ issued by the fo rmer Ministry of Science, Technology and 
Environment and General Department  of Customs on 28 June 2001.  The Circular stipulated that the 
owner had legal responsibility for the specified quality  of imported goods subject to State mandatory 
quality inspection.  The owner registered for qua lity inspection with the inspecting body using the 
registration form provided in the Inter-Circular. No . 37.  Within one working day following customs 
clearance, the goods owner should present the declared goo ds in their original state together with the 
cleared customs documents and other documents pursu ant to the regulations of the inspecting body.  WT/ACC/SPEC/VNM/4/Rev.1 
Page 62  
 
The inspecting body was required to verify the re gistration for State quality inspection, or issue a 
notification of inspection exemption, to the customs agency within one working day.  As noted above, 
the list of imported and exported goods subject to State quality inspection was implemented according 
to the Decision No. 117/2000/Q Đ-BKHCNMT of the former Minister of Science, Technology and 
Environment.  The list included specified the good s subject to State quality inspection under the 
competence of specialized inspecting bodies of the former Ministry of Science, Technology and 
Environment; the Ministries of Health; Agriculture and Rural Development; Industry; and Fisheries. 
193. Among the steps Viet Nam was taking to remedy deficiencies in its current standardization 
and regulatory regime, he noted that existing standard s were subject to review and revision to ensure 
consistency with international and regional standards, inspection procedures were shifting from 
consignment-by-consignment inspection to type tes ting where appropriate, Viet Nam was establishing 
product testing laboratories meeting the require ments of ISO/IEC Guide 25 as well as ISO/IEC 
Guide 17025, and Viet Nam had entered into mu ltilateral mutual recognition agreements (APEC-
MRA).  In response to a specific question, the re presentative of Viet Nam said that Viet Nam had 
signed bilateral agreements with China, the Russian Federation and Ukraine which included 
provisions on harmonisation of national standa rds and conformity assessment procedures with 
international standards and guides, mutual tech nical cooperation, and a mechanism for mutual 
recognition of conformity assessment results.  He referred requests for the texts of Viet Nam's existing Mutual Recognition Agreements to the website of STAMEQ (http://www.tcvn.gov.vn). 
194. Asked whether and how Viet Nam accepted the results of conformity assessment procedures 
in other Members, as foreseen under Article 6.1 of the TBT Agreement, and whether Viet Nam 
recognized test data and/or certification conducted by bodies outside of Viet Nam, he said that 
Viet Nam provided many forms of acceptance of tes ting results or certification undertaken by foreign 
organisations.  In most of cases, test results and certifications undertaken by foreign organisations 
were accepted by the sellers and buyers.  For good s subject to quality inspection and certification, 
testing and certification results were accepted under,  for example, (i) bilateral and multilateral mutual 
recognition agreements to which Viet Nam and ex porting countries were parties; (ii) unilateral 
acceptance by Viet Nam of foreign laboratories or  certifying organizations; and (iii) import quality 
inspection.   
195. Some members asked Viet Nam to confirm th at full compliance with the TBT Agreement 
would be ensured by the time of accession, and requested a detailed plan of action addressing all 
outstanding issues.  The representative of Viet Na m submitted an Action Plan for the Implementation 
of the WTO Agreement on Technical Barriers to Tr ade in document WT/ACC/VNM/24, subsequently 
revised in documents WT/ACC/VNM/24/Rev.1 and Rev.2.   According to the revised plans, Viet Nam  WT/ACC/SPEC/VNM/4/Rev.1 
 Page 63 
 
 
would ensure that all new technical regulations, standards, and conformity assessment procedures 
would be in full compliance with the Agreement fr om the date of accession.  In recent years his 
Government had been promoting a program to review legal documents to ensure progressive 
consistency with WTO obligations , including in the area of technical regulations and conformity 
assessment.  The Ministry of Justice acted as the focal point for this program, and legal documents 
drafted by a ministry were sent to the relevant ministries, including the Ministry of Science and 
Technology and STAMEQ, for comment before subm ission to the Government.  He added that 
Viet Nam, by enhancing the capacity of STAMEQ to  prepare standards, would accept and implement 
fully throughout its administration the Code of Good Practice for the preparation, adoption and implementation of standards.  Although Viet Nam had established its TBT Enquiry Point and National 
Notification Body, he did not expect this agency to be fully operational until the end of 2005 or, if 
earlier, by the date of accession.   
196. [The representative of Viet Nam confirmed that Viet Nam would apply the Agreement on 
Technical Barriers to Trade from the date of accession  without recourse to any transition period.  The 
Working Party took note of this commitment.]   
Sanitary and phytosanitary measures  
197. The representative of Viet Nam submitted an Action Plan for the implementation of the 
Agreement on the Application of Sanitary  and Phytosanitary Measures in document 
WT/ACC/VNM/11; the plan has subsequently been revi sed four times.  He noted that Viet Nam was 
working on the establishment of an SPS regime b ased on international standards, guidelines and 
recommendations.  Among the main challenges facing Viet Nam were the deve lopment of software 
for pest risk analysis, application of pest risk an alysis for genetically modified organisms, and to 
amend legislation on plant quarantine in accordance w ith the 1997 revision of the International Plant 
Protection Convention.  Viet Nam was facing diffi culties in performing risk assessment and had not 
yet been able to analyze disease risk s in accordance with international cr iteria.  In principle, Viet Nam 
applied international standards in the areas wher e Viet Nam could not conduct its own independent 
risk assessment.   
198. Concerning phytosanitary measures, he said th at the basic legal instruments were the 
Ordinance on Plant Protection and Quarantine on  15 February 1993, amended on 25 July 2002, 
Regulations on plant protection and inspecti on attached to Decree No. 58/2002/ND-CP of 
3 June 2002, and decisions and circulars by the Ministry of Agriculture and Rural Development 
guiding their implementation.  Viet Nam was in the process of reviewing and amending its subsidiary legislation to ensure consistency with the ame nded Ordinance and the new Regulations.  The legal WT/ACC/SPEC/VNM/4/Rev.1 
Page 64  
 
documents were based on the International Plant Pr otection Convention, as amended in 1997, and the 
disciplines of the Asia Pacific Plant Protection Commission (APPPC).  Viet Nam was reviewing its 
legislation on phytosanitary measures in the li ght of the SPS Agreemen t, the IPPC and other 
international standards to harmonize phytosan itary measures with ASEAN and WTO norms.  
Viet Nam and other ASEAN members were developi ng a harmonisation framework for phytosanitary 
procedures comprising 10 agricultural products at the outset and applicable to ASEAN members only.  
Work on a phytosanitary certification management system had been completed.   
199. The principal legal framework for inspection of animals was the Veterinary Ordinance 
enacted on 15 February 1993; Decree No. 93/CP of 27 November 1993 for implementation of the 
Ordinance; Regulations on animal protection and inspection attached to Decree No. 93/CP; the 
Regulation on Quarantine Slaughter control and vete rinary hygiene inspection of animals and animal-
related products; and Decisions Nos. 389 NN-TY/Q D and 607 NN-TY/QD providing details of the 
Ordinance.  He expected his Government would pr omulgate a revised Veterinary Ordinance before 
the end of 2003, and a Decree guiding the impl ementation of the Ordinance on Animal Disease 
Control, Animal Quarantine and Inspection and Vete rinary Hygiene Inspection, and Veterinary Drug 
Management in the first quarter of 2004.  Viet Nam was also preparing Recommendations to improve 
veterinary hygiene and food safety inspection proc edures, and inspection procedures for veterinary 
medicines and vaccines.  Viet Nam had signed agreements and memoranda of understanding on 
technical animal health cooperation with the United States, Argentina, Australia, the Netherlands, the 
Russian Federation, France, etc.  Viet Nam's im port requirements for animals and animal products 
were based on the International Animal Health Code and, in his view, Viet Nam's veterinary standards 
and inspection measures were consistent with regul ations of international organizations such as 
CODEX, OIE, and ASEAN.  Unsuitable import require ments, if any, would be revised to meet OIE 
standards.  Viet Nam was also making efforts to  build the necessary infrastructure for veterinary 
hygiene inspection of animals and animal-related products. 
200. The Ministry of Health was responsible for State control of food safety.  A new Ordinance on 
Food Safety and Hygiene had been promulgate d in November 2003, and a Decree guiding the 
implementation of this Ordinance would be pr omulgated during 2004.  The Ordinance addressed 
various issues including hygiene and food safety in  the production, importation, and exportation of 
food and foodstuff.  In the meantime, food safety w as regulated by the Law on Protection of People's 
Health, Decree No. 23/HDBT of 24 January 1991, Decree No. 86/CP of 8 December 1998 on the 
settlement of administrative breaches in State mana gement of health, and Decree No. 41/1998/ND-CP 
regulating medical inspection at the border of  food and foodstuff which, according to the 
representative of Viet Nam, was based on norms es tablished by the WHO.  Viet Nam had adopted  WT/ACC/SPEC/VNM/4/Rev.1 
 Page 65 
 
 
about 60 per cent of CODEX standards relating to  food and foodstuff as of December 2001 and was 
planning to adopt all remaining CODEX standards.   
201. Concerning GMO labelling, he noted that this w as a relatively new subject in Viet Nam.  A 
Regulation on safety management for genetically modi fied organisms was in preparation.  Viet Nam 
intended to formulate compulsory standards fo r products using GMO technology based on specific 
evidence or labelling as "products using GMO technology".  
202. Asked specifically about Viet Nam's current SPS requirements for the importation of meat 
and poultry, live plants, horticultural products and grain , as well as  technical requirements for the 
certification, labelling, and packaging of food pr oducts, the representative of Viet Nam said that 
Viet Nam's requirements for imported meat were generally based on the Recommendations of OIE, 
the regulations of CODEX, and agreements between Viet Nam and exporting countries.  Poultry meat 
importers were required to obtain a sanitary certificat e issued by the National Veterinary Authority of 
the exporting country, certifying that (i) the exporting country was free from Avian influenza, (ii) the 
meat originated from healthy poultry slaughtered in disease free zones, (iii) the poultry had been 
examined anti-mortem and post-mortem and found free from every infectious disease, and (iv) met all veterinary hygiene standards and were free from harmful micro-organisms.  Plants imported for 
consumption, including grains, were  required to be free from plant quarantine pests of Viet Nam and 
be accompanied by a Phytosanitary Certificate of  the exporting country.  Li ve plants imported for 
propagation or planting should have a quarantine perm it issued the competent Vietnamese authority, a 
Phytosanitary Certificate of exporting country, and be free from plant quarantine pests of Viet Nam.  As for technical requirements for the certification of food products, Viet Nam applied certification 
procedures based on national and international st andards, and certified the quality management 
system based on ISO 9000, Good Manufacturing Pr actices (GMP) and Hazard Analysis and Critical 
Control Point (HACCP) for food producing units.  Labelling and packaging of food products was regulated according to the Prime Minister's Decision No. 178/1999/QD-TTg of 30 August 1999 and 
Circular No. 34/1999/TT-BTM of 15 December 1999 guiding the implementation of the Decision. 
203. A Member noted that although Viet Nam Action Plan (third revision) provided a reasonable 
framework, it did not address directly  some key provisions of the SPS Agreement, notably its Articles 
5.1 and 2.2.  Viet Nam was requested to detail how  it would act when international standards did not 
exist or the level of protection of an international standard did not meet Viet  Nam's appropriate level 
of protection, as the Agreement stipulated that Viet  Nam would need to undertake a risk analysis to 
validate each measure (Article 5.1), or determin e that insufficient scientific evidence would only 
justify the application of a provisional measure (Artic le 5.7).  Viet Nam was also requested to specify WT/ACC/SPEC/VNM/4/Rev.1 
Page 66  
 
to what extent Viet Nam would adopt internationa l standards and under what circumstances different 
standards might be used.   
204. The representative of Viet Nam replied that  Viet Nam's SPS standards were based on 
CODEX and FAO/WHO standards.  Should CODEX and FAO/WHO standards not be available, 
Viet Nam would adopt the standards of regional or developed countries, or as a last resort, national 
standards would be applied to the extent that th ese were consistent with the SPS Agreement.  He 
noted that the SPS standards applied by Viet Nam we re in conformity with international ones, but 
generally at a lower level in order to adapt to th e production conditions in Viet Nam.  He confirmed 
that Viet Nam was committed to apply interna tional standards once a WTO Member.  Viet Nam 
would gradually improve the techniques and proce dures for conducting risk assessment in cooperation 
with international organizations a nd WTO Members, and he expected Viet Nam to be in conformity 
with Articles 2.2, 5.1 5.2 and 5.3 upon accession.   
205. The representative of Viet Nam said that Viet Nam had not yet established a single enquiry 
point to provide information on its SPS measures, but his Government had assigned the task to the Ministry of Agriculture and Rural Development of Viet Nam (MARD).  The Ministry served as a 
general enquiry point for information on sanitary and phytosanitary requirements.  Viet Nam had also 
assigned responsibility for sanitary and phytosanitary control, plant and animal quarantine, health 
quarantine and fisheries inspection to various minist ries and agencies, and each entity was responsible 
for the submission of information relevant to its domain.  Thus, the Department of Plant Protection 
and the Department of Animal Health were at present national enquiry points responsible for 
providing information on plant protect ion and veterinary requirements and measures.  In the context 
of the Action Plan, he noted that Viet Nam would en sure that its transparency obligations would be 
met on an ongoing basis.  He added that his Gove rnment envisaged the es tablishment of its SPS 
enquiry point, ensuring the necessary inter-agency cooperation, before the end of 2004, and the 
enquiry point would be fully operati onal by the date of accession.   
206. A Member requested Viet Nam to establish a law or guidance requiring the publication of 
proposed SPS measures, notification to the WTO,  and a reasonable timeframe for comments from 
Members.  The representative of Viet Nam replied that legal documents, including those related to 
SPS issues, were published in the Official Gazette and entered into force minimum 15 days thereafter 
in accordance with the amended Law on Promulga tion of Legal Documents.  As noted above, 
Viet Nam intended to establish its National Enquiry  Point and National SPS Notification Body within 
the Ministry of Agriculture and Rural Developmen t, and this agency would be responsible for 
notifying WTO Members of all regulations and measures in a manner consistent with the SPS  WT/ACC/SPEC/VNM/4/Rev.1 
 Page 67 
 
 
Agreement.  At present, SPS-related legal documents were accessible at two websites 
(http://www.mard.gov.vn/dah and www.ppd.gov.vn). 
207. Some Members noted that Viet Nam appear ed to be taking appropriate account of 
international standards, guidelines and recommenda tions in establishing its SPS regime, and would 
welcome a commitment from Viet Nam to implemen t the SPS Agreement from the date of accession 
without recourse to any transition period.  In reply, the representative of Viet  Nam said that as a low-
income developing country in the process of economic transition, Viet Nam was facing many 
difficulties in implementing the Agreement.  Viet Nam would therefore require a transitional period 
until 1 July 2008 to complete work to comply with the provisions of the SPS Agreement in respect of 
harmonization (Article 3.1, 3.3. a nd 3.4.), equivalence (Article 4) and control, inspection and approval 
procedures (Article 8 and Annex C).  Viet Nam woul d comply fully with the main obligations of the 
Agreement such as transparency, non-discrimination a nd risk assessment from the date of accession.  
SPS measures applied by Viet Nam would not create ba rriers to trade during the transitional period.  
He stressed that Viet Nam would need technical as sistance to train staff, and technical equipment and 
expertise (in particular for disease risk analysis) to develop its laboratories and information systems.   
Trade-Related Investment Measures (TRIMs)  
208. Noting that Viet Nam appeared to apply local  content requirements and that the transition 
period for developing country Members for such requirements expired at the end of 2000, some 
Members requested a detailed action plan from Viet  Nam, identifying current measures inconsistent 
with the Agreement on Trade-Related Investment Measures (TRIMs) and specifying a timetable for 
their elimination.  A Member reminded Viet Nam th at the solution envisaged for automobile assembly 
factories, i.e. voluntary registration of local conten t, would not solve the problem of consistency with 
the TRIMs Agreement.  Conditions attached to ta x concessions to foreign enterprises investing in 
export processing zones and industrial zones also a ppeared to be inconsistent with the TRIMs 
Agreement.  Furthermore, several Members noted  that most TRIMs measu res had been introduced 
after Viet Nam's application to join the WTO, and reminded Viet Nam that acceding governments were expected not to implement new restrictive measures.  In the view of some Members, Viet Nam should comply fully with the TRIMs Agreement from the date of accession to the WTO without 
invoking a transition period. 
209. The representative of Viet Nam replied that follo wing its application to the WTO, Viet Nam 
had amended its legislation to ma ke it increasingly compliant with WT O provisions on TRIMs.  He 
noted that, in 2000, the Law on Amendment an Suppl ement to some Articles of the Law on Foreign 
Investment had removed the requirement on foreig n exchange self-balancing and the obligation for WT/ACC/SPEC/VNM/4/Rev.1 
Page 68  
 
foreign-invested enterprises to give priority to the purchase of domestic products.  Viet Nam had  no 
intention to reintroduce self-balancing requirements.   
210. He nevertheless acknowledged that Viet Nam's legislation on foreign investment included 
measures inconsistent with the TRIMs Agreemen t, for example local content requirements for 
automobile and motorcycle manufacturing projects.  Viet Nam provided sample notifications of its 
existing TRIMs measures in document WT/ACC/VNM/19 and its Revision 1.  Manufacturing of 
automobile spare parts and accessories in Viet Nam was a condition for obtaining investment licences 
to assemble and manufacture automobiles.  The value of locally manufactured spare parts and 
accessories was required to reach minimum 5 per cent of the total value of the vehicle by the fifth year 
of the start-up of production, rising to at least 30 per cent by the tenth year of production.  For motorcycles, the value of components and spare part s manufactured in Viet Nam by a licensed project 
was required to account for 5-10 per cent of the comp lete motorcycle value from the second year of 
production.  The ratio was required to increase gr adually and steadily until reaching a target of 
minimum 60 per cent of the complete motorcycle value during the fifth or sixth year of manufacture.  
Viet Nam did not issue investment licences for projects  to assemble motorcycles in simple CKD form.  
Assembly projects in mechanical engineering,  and electric and electronic products were only 
approved in IKD form.  The value of components and spare parts manufactured in Viet Nam during 
the first two years should account for at least 20 per cent of the value of the finished products, and the ratio should increase steadily in subsequent years.  Investment projects for the manufacture of spare 
parts used in mechanical engineering, electric and electronics industries (except the motor vehicle 
industry) were granted preferential import duty rates c ontingent upon localization rates with respect to 
semi-finished products, accessories, parts and materials used in the production of such spare parts.  
Viet Nam had issued Inter-Ministerial Circular No. 176/1998/TTLT-BTC-BCN-TCHQ of 25 December 1998, and its amendment of 25 December 2000, providing guidelines on the 
implementation of Viet Nam's tariff policy contin gent upon the localisation ratio for products and 
components of mechanical, electrical and electronic industries.  These documents had come into effect in January 2001.  Viet Nam's export require ments and/or tax concessions applied to enterprises 
investing in industrial zones or export processing zon es were, in his view, not contrary to the TRIMs 
Agreement, because this type of measures had not b een included in the illustrative list contained in the 
Annex to this Agreement.   
211. He added that Decision No. 229/1998/QD-BKH of  29 April 1998 of the Minister of Planning 
and Investment applied only to projects licenced af ter the Decision had entered into force.  The 
80 per cent export ratio was otherwise accepted by investors on a voluntary basis.  The sectors subject 
to this requirement are listed in Table 11.  This list had however been updated in light of Decision  WT/ACC/SPEC/VNM/4/Rev.1 
 Page 69 
 
 
No. 718/BKH-QD issued on 7 December 2001 by the Minister of Planning and Investment.  The 
number of products subject to export requi rements had been reduced to 14.   
Table 11:  Industrial Products Subject to Requirement to Export 80 per cent of Output  
No. Description of goods 
1 Motorcycles 
2 Minibuses, trucks of less than 10 ton tonnage 
3 Irrigating pumps of capacity less than 30,000 m3/h, pumps used for everyday lives of capacity less 
than 540 m3/h  
4 Medium and low voltage electric transmission cables 
5 Normal transmission cables 
6 Cargo ships of tonnage less than 30,000 tons, fishing ships of less than 1,000 CV, water boats, 
canoes, barges (this is applicable to 100 per cent foreign invested projects) 
7 Audio-visual products 
8 Aluminium profiles products 
9 Construction glasses in large use ( ∅ < 40 mm) 
10 NPK fertilizers 
11 PVC 
12 Bicycles and bicycle parts  
13 Transformers under 35 KV 
14 Diesel motors under 15 CV 
Note:  The list is attached to Decision No. 718/2001/QD-BKH of 7 December 2001 
212. A Member noted that the export requirement for some products, although deleted according 
to the new list, appeared not to have been eliminat ed in practice.  In some cases, foreign-invested 
enterprises appeared to have been requested also to maintain the same export sales ratio for products 
not included in the list (such as pork).   
213. The representative of Viet Nam submitted an action plan for the implementation of the 
TRIMs Agreement in document WT/ACC/VNM/18, and a revised action plan in document WT/ACC/VNM/18/Rev.1.  He stated that, in accordan ce with the revised action plan, the import duty 
preferences contingent on localization ratio w ith respect to enterprises producing and assembling 
motorcycles specified in the Inter-Ministry Circular No 176/1998
/TTLT-BTC-BCN-TCHQ would 
be eliminated before the end of 2003.  Furthe rmore, upon accession to the WTO Viet Nam would 
eliminate the localization requirements and impor t duty preferences contingent upon localisation 
ratios for enterprises producing automobile parts, electronic and mechanical products specified  in 
the Inter-Ministry Circular No. 176/1998/TTLT-B TC-BCN-TCHQ, amend the list of sectors 
subject to conditional investment licensing (attach ed to Decree No. 24/2000/ND-CP) to eliminate 
the criteria requiring development of raw material sources for vegetable oils, sugar cane, and wood, 
and eliminate the localization requirement in prac tice for investment licences applicable to projects 
producing or assembling automobiles and motorcycles.   Viet Nam would commit not to re-introduce 
phased-out TRIMs from the date of accession.  Compulsory export ratio requirements were, in his WT/ACC/SPEC/VNM/4/Rev.1 
Page 70  
 
opinion, not covered by the provisions of the TR IMs Agreement.  Viet Nam would nevertheless 
commit not to apply them from the date of its accession to the WTO.   
214. Some Members encouraged Viet Nam not to enforce contracts imposing requirements 
inconsistent with the TRIMs Agreement, assuming that the Government of Viet Nam would also eliminate any such requirements accepted on a voluntar y basis.  Viet Nam was invited to confirm that 
any export requirement listed in an investment licen ce, whether issued by the central government or a 
local authority, would be eliminated at the same time. 
215. The representative of Viet Nam replied that fo reign invested enterprises were free to choose 
their own markets for products other than those listed in Decision No. 718/BKH-QD of 7 December 2001.  Immediately upon accession, Vi et Nam would remove the mandatory export 
requirement stipulated in current legal documents  as well as in investment licences issued by central 
or local authorities, and Viet Nam's competent authorities would not apply neither mandatory nor 
voluntary export regulation for enterprises manufact uring the products listed in Table 11.  He 
confirmed that Viet Nam would implement fully the provisions of the TRIMs Agreement from the 
date of accession.   
State trading entities  
216. A Member expressed a general concern that e xporting State trading enterprises (STEs) could 
use their special rights and privileges to disguise export subsidies or to otherwise engage in anti-
competitive behaviour.  Viet Nam was requested to provide details on the specific steps it would be 
willing to take to ensure that the operations and policies of STEs within its jurisdiction would not 
distort trade, and otherwise be consistent with  the principles of non-discriminatory treatment 
prescribed by Article XVII of the GATT 1994.  Information provided by Viet Nam in document WT/ACC/VNM/9, Annex I, indicated that many produc ts subject to State trading were subject to 
additional measures such as quantitative restricti ons, surcharges and import licensing.  Some of 
Viet Nam's enterprises appeared to be involved in trade as well as industry regulation, and Viet Nam 
was encouraged to separate these functions to en sure a more open and transparent regulatory and 
purchasing environment. 
217. The representative of Viet Nam provided information on State-trading in document 
WT/ACC/VNM/3/Add.1, Annex 6, a nd subsequently a "Notification on State Trading Enterprises" in 
document WT/ACC/VNM/14 of 28 June 2000, re vised in document WT/ACC/VNM/14/Add.1 of 
31 October 2003.  He added that Viet Nam was in the process of reforming its State trading enterprises to create a level playing field for all en terprises, and to ensure that enterprises' trading 
activities were conducted in accordan ce with commercial considerati ons.  The system of designating  WT/ACC/SPEC/VNM/4/Rev.1 
 Page 71 
 
 
authorized enterprises to export rice had been phase d out.  Viet Nam would continue to update and 
supplement the information relating to State tradi ng enterprises.  The entities identified by Viet Nam 
as State trading enterprises in 2002 and the products  traded by them, listed by HS numbers, are 
enumerated in Table 12.  
Table 12:  State Trading Enterprises in Viet Nam  
No Products HS Code Name of enterprise Functions of enterprise 
1 Crude oil 27090010 Viet Nam Oil and Gas Corporation 
(PETROVIETNAM) Searching, exploring, 
exploiting, processing and 
dealing in oil and gas 
products, providing oil and 
gas related services.  
2 Refined 
petrol & 
gasoline 271011 
271019 
271099 - PETROLIMEX 
- PETEC 
- PETECHIM 
- SAIGON PETRO - PETROMEKONG 
- VINAPCO (Airlines Petrol & 
Gasoline Company which is the 
exclusive re-exporter of aircraft 
gasoline) - Petroleum Processing and Trading 
Company; 
- MARINESUPPLY - Military Petroleum and Gas 
Corporation  
- Dong Thap Petroleum Import-Export Company Authorised importers of 
gasoline and petrol for 
supplying to domestic 
consumption.   
 
3 Aircraft 
spare parts 
and aviation equipment, 
facility 8802, 
8803 Airlines Import Export Corporation 
(AIRIMEX) Ensuring the supply of 
aircraft, equipment, facility 
and materials used in aviation; Sole importer of aircraft and 
aviation materials, spare parts. 
 
4 Film  8524 Viet Nam Films Import/Export and 
Distribution Company (FAFILM VIET NAM) Sole importer and distributor 
of feature films (video tape, VCD). 
5 Newspapers 4902 Books and Newspapers Import Export 
Company (XUNHASABA) Sole importer and distributor 
of newspapers. 
 
218. Members encouraged Viet Nam to provide updated information on its State trading 
enterprises.  A Member reminded Viet Nam that Ar ticle XVII of the GATT stipulated that purchases 
and sales by State trading enterprises (STEs) shoul d be made "solely in accordance with commercial 
considerations".  However, the information pr ovided by Viet Nam in document WT/ACC/VNM/14 
suggested that some of Viet Nam's STEs did no t operate strictly on the basis of commercial 
considerations, for example with respect to impor tation of fertilizer, printing equipment, printed 
material, and cinematographic works.  Among the programmes causing concern was also an export WT/ACC/SPEC/VNM/4/Rev.1 
Page 72  
 
enhancement programme for rice (Money Award For Rice Export Turnover), whereby the 
Vietnamese Government provided a grant worth appr oximately 1.2 per cent of the turnover for every 
rice exporter.  A Member requested Viet Nam to clarify why several major State-owned enterprises 
involved in agricultural trade had not been include d in its submissions, noting that a Vietnamese 
website listed several entities as State enterpri ses, including the Viet Nam National Coffee 
Corporation (VINACAFE), the Viet Nam National Tea Corporation (VINATEA), and the Viet Nam 
Dairy Products Company (VINAMILK).   
219. The representative of Viet Nam replied that a ll State trading enterprises in Viet Nam were 
operating in accordance with commercial considerati ons.  The Ministry of Culture and Information 
licensed imports of specialised printing plates, printers and typesetting systems for the printing 
industry for reasons of national security and social  stability.  Concerning motion pictures and other 
audio-visual products, the Ministry of Culture a nd Information screened impor ts to preserve national 
culture, traditions and customs and to maintain nati onal and social security.  Quantitative restrictions 
were not applied to such products, except for cinema tographic films.  The purchases and sales of State 
trading enterprises were based only on commercial c onsiderations.  The system of fertilizer import 
quotas and designated importers had been phased out,  as well as the price controls imposed by the 
Government Pricing Committee on fertilizer imports a nd rice exports.  Although he did not consider 
VINACAFE, VINATEA and VINAMILK fell within the scope of GATT Article XVII, he provided information on the trading activities of these ente rprises in document WT/ACC/VNM/32, Annex 2.  
He added that VINAMILK had been equiti zed and was no longer State-owned.   
220. [The representative of Viet Nam confirmed th at his Government would apply its laws and 
regulations governing the trading activities of St ate-owned enterprises and other enterprises with 
special or exclusive privileges in full conformity  with the provisions of the WTO Agreement, in 
particular Article XVII of the GATT 1994 and the U nderstanding on that Article  and Article VIII of 
the GATS.  He further confirmed that Viet Nam would notify any enterprise falling within the scope 
of Article XVII, including those noted in Tabl e 12.  The Working Part y took note of these 
commitments.]   
Free zones, special economic areas  
221. The representative of Viet Nam said that Viet  Nam had established 4 export processing zones 
and 87 industrial zones.  Industrial zones were established by Governme nt Decision or Decision of the 
Prime Minister.  The establishment and operation of export processing enterprises were governed by the Regulations on Industrial zones, Export Processing Zones, and High Tech Parks enacted by Decree No. 36/ND-CP.  WT/ACC/SPEC/VNM/4/Rev.1 
 Page 73 
 
 
222. Enterprises in export processing zones were exempt from import and export duties for goods 
imported from or exported to foreign countries.  En terprises located in industrial zones could import 
duty free equipment, machinery and specialized means of transport (including spare parts and 
accessories) for the initial establishment, expansion or rehabilitation of the project.  Materials and 
parts used in the production of exports were subj ect to import duty, which would subsequently be 
refunded in proportion to the amount  of exported products.  Enterprises located in export processing 
zones were allowed to sell their pr oducts in the domestic market upo n approval by the Ministry of 
Trade.  However, all such sales were subject to the same tariff treatment and customs procedures 
applicable to imported goods.  
223. Asked whether incentives in industrial zones a nd export processing zones were tied to export 
performance, the representative of Viet Nam said th at enterprises in industrial zones which exported 
less than 50 per cent of their output were subject to 15 per cent profit tax and corporate income tax 
exemption for two years after the first profit-making year.  An additional reduction of 50 per cent in payable corporate income tax was granted for th e two consecutive years for enterprises exporting 50 
to 80 per cent of their output.  Enterprises exporting 80 per cent or more of their output were subject 
to 10 per cent corporate income tax as well as the two-year corporate income tax exemption and the 
50 per cent reduction in payable corporate income tax for the third and fourth year after the first profit-making year.  Enterprises engaged in infrast ructure development in the export processing zones 
were subject to 10 per cent corporate income tax, exemption from corporate income tax for four years 
after the first profit-making year, and a reduction of 50 per cent in payable corporate income tax 
during the following four years.  The 10 per cent prof it tax also applied to enterprises meeting at least 
two among four stipulated conditions, i.e. being a service enterprise, assigning assets to the State of Viet Nam without compensation upon expiry of operati ons, investing in regions with specially harsh 
socio-economic conditions, or investing in "specia lly encouraged" projects enumerated in Decree No. 
24/2000/ND-CP of 31 July 2000.   
224. A Member stated that Viet Nam was using pr ohibited subsidies as incentives to locate in its 
export processing zones, as the benefits were tied to  a specific level of exportation from the zone.  
This Member therefore asked what Viet Nam woul d be prepared to do to bring these measures into 
line with WTO provisions, and in what timeframe .  Another Member requested confirmation from 
Viet Nam that the preferential tr eatment for investments in high-t ech parks, industrial zones and 
export processing zones would not be granted in a manner inconsistent with the Agreement on 
Subsidies and Countervailing Measures. 
225. In reply, the representative of Viet Nam said that the preferential treatment provided by the 
Regulations on industrial zones, export processi ng zones and high-tech parks were measures WT/ACC/SPEC/VNM/4/Rev.1 
Page 74  
 
commonly applied by other countries to attract fore ign direct investment.  The preferential measures 
applied to industrial zones, expor t processing zones and high-tech parks had been described in the 
Notification pursuant to Article XVI:I of th e GATT 1994 and Article 25 of the Agreement on 
Subsidies and Countervailing Measures in docu ment WT/ACC/VNM/13/Add.2.  Viet Nam would 
review these measures to bring them into line w ith WTO provisions in due course if the measures 
encouraged the use of products of domestic or igin and caused discrimination against imports. 
226. [The representative of Viet Nam confirmed that from the date of accession the Government of 
Viet Nam would ensure enforcement of its WT O obligations in its export processing zones and 
industrial zones.  [In this regard, he confirmed that the Laws on foreign investment and domestic 
investment and related regulations  had been amended to eliminate any requirements for establishment 
in the zones or receipt of benefits provided to firms within the zones conditioned on use of local 
goods or export performance.]  In addition, g oods produced in these zones under tax and tariff 
provisions that exempt imports and imported inputs fr om tariffs and certain taxes would be subject to 
normal customs formalities when entering the rest of Viet Nam, including the application of tariffs 
and taxes.  The Working Party took note of these commitments.] 
Government procurement  
227. The representative of Viet Nam said that  his Government ha d promulgated Decree 
No. 88/1999/ND-CP on Procurement Regulations on  1 September 1999.  The Decree regulated 
uniformly the management of bidding activities; th e selection of consultants; procurement of goods; 
construction and installation; and th e selection of partners to implement projects in full or in part. 
Several governmental agencies, including the Minist ry of Investment and Planning in cooperation 
with the Ministry of Finance, the Ministry of Trade, the Ministry of Construction, the State Bank of Viet Nam, and other heads of related ministries/ agencies had been involved in the elaboration of 
guiding documents to implement the Decree. 
228. The Government Decree had been s upplemented and amended by Decrees 
Nos. 14/2000/ND-CP of 5 May 2000 and 66/2003/ ND-CP of 12 June 2003, and a Regulation on 
Procurement had been issued together with the Government Decree in September 1999.  Viet Nam's 
legislation did not specify the procurement ag encies and entities covered, but according to the 
Regulation any purchase of goods and services or any investment by State agencies, mass 
organisations and State-owned enterprises financed by the State budget had to be made in the form of 
a tender.  Viet Nam had not published any list of procuring entities, but the agencies involved were 
mentioned in each bidding announcement.  Statistics on the overall value of public sector purchasing 
and the major procuring entities were not available in Viet Nam.  Whether tenders for procurement  WT/ACC/SPEC/VNM/4/Rev.1 
 Page 75 
 
 
were open to international bidders, or not, was not provided in the relevant regulations, but 
determined according to the nature and purpose of the procurement.   
229. The 1999 Decree and the Regulation on Procuremen t had required foreign contractors to enter 
into partnerships with Vietnamese contractors or  undertake to employ Vietnamese sub-contractors 
when participating in tenders for the selection of consultants, tenders for the purchase of goods, and 
tenders for construction and installation in Vi et Nam.  The amendments introduced through 
Government Decree No. 14/2000/ND-CP on 5 May 2000 limited this requirement to international 
tenders for construction and insta llation in Viet Nam.  The require ment applied to all construction 
projects, including those which were part of a larger procurement contract. 
230. Successful bidders were required to purchase and use materials and equipment produced, 
processed or available in Viet Nam, with due account taken of quality, price, safety and 
environmental considerations rela ted to the procurement.  The quality of materials and equipment 
purchased in Viet Nam should meet the requirements stipulated in the tender invitation documents, 
and be of equal quality to like materials and e quipment purchased overseas.  The price paid should 
also be equal to or lower than that of like ma terials and equipment purchased overseas.  Safety 
requirements and "other necessary issues" would be stipulated in the tender invitation documents as 
well as in the procurement contract. 
231. Concerning procedures for publishing tenders, he said that the notification inviting bids and 
the bid result were required to be made public.  The opening of submitted bids was made public 
under the terms stipulated in the call for tenders  according to Article 13 of the Regulations on 
Procurement, attached to Decree No. 88/ 1999/ND-CP.  The opening report should include 
information such as the name of the tender package,  the date, time and location of the tender opening, 
the names and addresses of the bidders, the bid pri ce, the bid bond (warranty) and the implementation 
schedule.  The representatives of the party calling fo r tenders and the bidders were required to sign the 
report.  Although public notice of government pr ocurement was compulsory, Viet Nam's legislation 
did not specify any particular publication where these notices should be provided.  Consequently, 
public notices were made through either national or  local newspapers, audio-visual media or other 
mass media.  Procuring agencies and entities announ ced their tenders in a least three consecutive 
issues of widely circulated daily newspapers, or in the audio-visual and other mass media.  The 
announcements should be made at least five days be fore the issue of tender invitation documents for 
contracts worth less than 2 billion Dong, and minimu m ten days prior for larger tenders.  Calls for 
international tenders were announced in at le ast one English-language newspaper with wide 
circulation in Viet Nam. WT/ACC/SPEC/VNM/4/Rev.1 
Page 76  
 
232. The representative of Viet Nam added that a new Ordinance on Procurement in preparation 
would provide for greater transparency in the procurement process.  The Ordinance foresaw the 
creation of a Procurement Gazette to provide gene ral information on tendering activities, invitations 
for tender, lists of tenderers participating in  limited tendering proceedings, selection of bids, 
information on enterprises prohibited to participate, or restricted, in the bidding process, etc.  The 
party calling for tenders would have to publish the terms and conditions of the tender in the 
newsletter.  The Ordinance also aimed at de centralising procurement decision-making to the 
ministries, agencies and local authorities.  The ne w Ordinance would also identify bad practices and 
fraudulent behaviour, stipulate penalties for violati ons, and include provisions concerning right of 
appeal and the settlement of disputes.   
233. A Member encouraged Viet Nam to continue in its ongoing efforts to make its procurement 
systems more transparent and open to competition.   Viet Nam should become an observer to the 
Committee on Government Procurement upon accession as a first step towards joining the Agreement 
on Government Procurement.  Viet Nam was also en couraged to identify its challenges and needs for 
technical assistance in implementing the Agreement.   
234. The representative of Viet Nam replied that Viet Nam had made efforts to improve the legal 
framework for government procurement to enhan ce its transparency and to harmonize the tender 
process and procedures with international practice.  Viet Nam had not yet examined the provisions of 
the Agreement on Government Proc urement and its implications for Viet Nam, but was willing to 
work with Members to improve Viet Nam's understanding of the Agreement.   
Trade in Civil Aircraft 
235. A Member argued that the Agreement on Trade in Civil Aircraft, including the duty free 
treatment of imported aircraft a nd parts, could make a significant contribution to Viet Nam's 
development and growth, and requested Viet Na m to join the Agreement upon accession to the WTO. 
236. In reply, the representative of Viet Nam noted th at this was a plurilateral Agreement and that 
participation in the Agreement was not an obligatio n.  Viet Nam would consider assistance from other 
countries in studying the implications, including the developmental aspects, of the Agreement.   
Transit 
237. The representative of Viet Nam said that goods, in  order to transit through the territory of 
Viet Nam, required prior permission from the Ministry of Trade.  Permits were granted only to authorized Vietnamese carriers or carriers from countries which had si gned bilateral transit agreements  WT/ACC/SPEC/VNM/4/Rev.1 
 Page 77 
 
 
with Viet Nam (China, the Lao PDR and Cambodia).  The selection of  Vietnamese carriers was based 
on past performance.  Regulations were  strict for the purpose of combating smuggling.  While in transit, 
goods were required to be trans ported along the prescribed route and within the time allowed.  
Warehousing of goods in transit was su bject to approval by Customs.  Consumption of goods in transit 
within the territory of Viet Na m was forbidden, and any discre pancy between the amount of goods 
entering and leaving Viet Nam requi red certification by Customs. 
238. Some Members noted that Viet Nam allowed only enterprises of countries having a common 
land border with Viet Nam to apply for the transit li cences, and that goods in transit were subject to a 
transit fee of 1 per cent of the value of the g oods.  These members questioned whether Viet Nam's 
regulations restricted the freedom of transit as provided for under GATT Article V.2, and whether the 
associated fee was commensurate with the administrativ e expenses entailed by transit or with the cost 
of the services rendered for individual cases as required under GATT Article V.3. 
239. The representative of Viet Nam replied that, upon accession to the WTO, Viet Nam will 
observe GATT 1994 rules on the freedom of transit a nd on transit fees commensurate with the cost of 
the services rendered.  The 1 per cent transit fee had b een abolished.  Current fees applicable to goods, 
including postal packages and parcels, and l uggage were calculated according to the means of 
transport and the length of the journey.  The fees for transit and escorting of cargo are enumerated in 
Tables 13 (a) and 13 (b). 
240. Some Members noted that Viet Nam in its res ponses had addressed the issue of transit fees, 
but not the fundamental principle of freedom of transit laid down in Article V of the GATT 1994.  
Viet Nam was invited to provide further justificati ons for its transit procedures and the conditions for 
granting transit permits, and explain how Viet Nam would bring its transit regime into conformity 
with the WTO. 
241. The representative of Viet Nam replied that goods were genera lly allowed to transit through 
Viet Nam once the customs procedures had been completed.  The requirement to obtain a transit 
licence from the Ministry of Trade applied only to in-land or waterway transportation of round or sawn timber, and for transiting goods subject to im port or export prohibition.  Current procedures 
were, in his view, not in violation of GATT Ar ticle V and Viet Nam would therefore commit to 
observe fully WTO rules on transit upon accession. 
242. [The representative of Viet Nam confirmed that his Government would apply any laws, 
regulations and practices governing transit operations and would act in full conformity with the 
provisions of the WTO Agreement, in particular Article V of the GATT 1994.  The Working Party took note of this commitment.]   WT/ACC/SPEC/VNM/4/Rev.1 
Page 78  
 
Agricultural policies  
(a) Imports – description of the typ es of border protection maintained 
243. Some Members noted that Viet Nam was using bans, quotas, discretionary licensing and other 
quantitative restrictions to regulate agricultural im ports, and that the WTO Agreement on Agriculture 
prohibited the use of quantitative restrictions to regul ate such imports.  Import restrictions on rice and 
sugar appeared to violate the WTO Agreements on Agriculture and Import Licensing Procedures, and 
could not be justified under the provisions of Artic le XI of the GATT 1994.  Viet Nam was requested 
to identify, by tariff line, agricultural imports subject to non-tariff measures and undertake to 
eliminate these measures prior to accession to the WT O.  Noting that Viet Nam banned imports of 
cigarettes for health reasons, Viet Nam was remi nded that Article III and Article XX of the GATT 
prohibited the use of such measures if Viet Nam allowed the manufacture, sale and distribution of 
cigarettes domestically.  If necessary, Viet Nam s hould rely on WTO-consistent measures, and ensure 
that imported items would be subject to the same treatment as domestically-produced items, even if 
Viet Nam's policy aimed at human health protecti on.  Viet Nam was urged to maintain maximum 
transparency in any use of tariff-rate quotas and to provide information, if applicable, on differences 
in treatment between State-owned corporations and private companies in the allocation of licenses.  
Some Members noted that Viet Nam was seeking recourse to apply Special Safeguards (SSGs) if 
necessary.  These Member considered SSGs a tr ansitional measure linked to the Uruguay Round 
commitments of some Members, and thus a provision not available to acceding governments.   
244. The representative of Viet Nam replied that Viet  Nam would consider using tariffs instead of 
quantitative restrictions.  As from the date of accessi on, Viet Nam did not intend to use quantitative or 
other import restrictions on any agricultural product, except for measures allowed under the 
provisions of WTO Agreements.  The simple averag e tariff on imports of agricultural products was 
17.7 per cent (document WT/ACC/VNM/3), and had been increased to 27.1 per cent in 2004.  
Imported sugar was subject to licensing and a ta riff of 30 per cent on raw sugar and 40 per cent on 
refined sugar.  Sugar was included in Viet Nam's List of Sensitive Agricultural Products under the 
CEPT/AFTA framework and would not be subject to tax reduction in the short term.  Viet Nam did 
not apply import quotas on rice.  Viet Nam did not in tend to develop its tobacco industry, but existing 
processing facilities were put to best use for the benefit of tobacco-growing farmers.  Viet Nam's 
legislation did not favour St ate-owned enterprises to the detriment of the private sector. 
(b) Exports 
245. A Member noted that State-owned enterprises purchased a major portion of Viet Nam's 
agricultural production, and accounted for a large shar e of Viet Nam's exports, for example of rice  WT/ACC/SPEC/VNM/4/Rev.1 
 Page 79 
 
 
(60 per cent), coffee (70 per cent) and rubber (90 per cent).  Viet Nam was requested to provide 
information about the purchase prices fixed by State-owned enterprises, the relationship between 
State-owned enterprises and the Price Stabilizati on Fund, and the functioning of this Fund. 
246. The representative of Viet Nam replied that purchase prices for exported agricultural products 
were determined by the enterprises themselves, subj ect to market conditions.  State-owned enterprises 
operated in the same manner as all other business ente rprises.  Enterprises had been treated equally in 
relation to the Price Stabilization Fund irrespective of ownership form.  The Export Promotion Fund, 
managed by the Ministry of Finance, had super seded the Price Stabilization Fund in October 1999.  
The purpose of the Fund was to help enterprises pr oducing and trading in e xported products (mainly 
agricultural products) to cope with adverse fluctuations in interna tional market prices, to improve 
their competitiveness, and to promote exports.   
(c) Internal policies 
247. The representative of Viet Nam said that agricu ltural and rural development was a priority in 
the economic and social strategy of his Government .  Commercial banks were encouraged to provide 
loans to agricultural projects and farmers on normal commercial terms.  Soft loans could be provided 
to poor farming households; to develop agricultu re in mountainous or is land regions, and areas 
populated by ethnic minorities; as natural disaster relief, etc.  Transformation of land reserved for rice production to cultivation of other plants was not en couraged for food security reasons.  However, his 
Government presently allowed and facilitated diversif ication from rice to other plants or shrimp 
breeding in areas where rice productivity was unstable or low.  Except for land reserved for the 
cultivation of rice, where the State had invested subs tantially in irrigation infrastructure, farmers were 
free to decide their agricultural production. 
248. He provided information on domestic support an d export subsidies in agriculture for the 
period 1999-2001 in docum ents WT/ACC/SPEC/VNM/3 of 5 November 2002, 
WT/ACC/SPEC/VNM/3/Rev.1 of 30 October 2003, and WT/ACC/SPEC/VNM/3/Rev.2 of 
28 April 2004.  He added that most of Viet Na m's support measures should be considered "Green 
Box" policies, notably the funding of scientific r esearch, training, agricultu ral extension programmes, 
agricultural infrastructure services (irrigation, dikes,  etc.), plant protection, sanitary and phytosanitary 
quarantine, national stockholding for food security, natural disaster relief, structural adjustment 
assistance provided through investment aids, and regional assistance for relocation.  Among programmes which, in his view, would be incl uded in the category of special treatment or 
developmental programmes for developing count ries, he identified programmes to provide 
preferential medium and long term credits throu gh the banking system for farmers and agricultural WT/ACC/SPEC/VNM/4/Rev.1 
Page 80  
 
enterprises building workshops or processing facilities,  and to plant perennial crops; soft loans to 
support the development of infrastructure, water and processing facilities to encourage agricultural 
and forestry production; preferential short term cred its to poor farmers through the Bank for the Poor 
People; and subsidies to shift production away from opium.  In calculating its Total Aggregate 
Measurement of Support, Viet Nam applied a de minimis level of 10 per cent.  Certain subsidies, including "green box" support, were provided by the State and provincial budgets.  Moreover, the 
Price Stabilization Fund had been used to grant soft  loans to enterprises increasing their stock levels 
above normal commercial requirements for the pur pose of stabilizing market supply and demand. 
249. Asked specifically about policies to support the sugar sector, the representative of Viet Nam 
said that sugarcane was cultivated mainly in poor  and disadvantaged areas, i.e. in the mountainous 
midland, central coastal regions, highlands and in  the Cuu Long delta.  Policies supporting the sugar 
sector aimed at improving the economic conditions a nd job creation in these disadvantaged regions.  
In the past, sugar had mostly b een produced by household sugar mills, characterized by low quality, 
waste and environmental pollution.  Since 1995, hi s Government had used funds from abroad and 
domestic credits, and stimulated foreign direct invest ment to build refining plants.  However, the new 
plants had been unable to operate at full capac ity, resulting in low productivity, high prices and, 
consequently, import protection. 
250. A Member requested more detailed informa tion on specific measures applied to support 
Viet Nam's coffee sector, including tax and cred it policies, development assistance programmes and 
export subsidies.  Viet Nam was asked to confir m that its coffee sector was now operating according 
to market principles.  
251. The representative of Viet Nam replied that , under cooperation agreements signed with 
former Socialist partners in 1983, Viet Nam had received a loan of 30 million Transferable Roubles in the form of merchandise such as fertilizers, tractors,  petroleum products, trucks, etc.  The loan, which 
had been reimbursed in 1991, had enabled Viet Nam to sow coffee on 24,500 hectares of land.  
Viet Nam was currently involved in two cooperation projects; (i) a technical assistance programme to 
strengthen the research capacity of the coffee industry, and (ii) a 700 billion Dong project to plant an additional 40,000 hectares of arabica in North Viet Nam.  About 400 billion Dong for the arabica 
coffee project had been financed through a loan from an overseas development agency.  The coffee 
sector was, in his view, operating in accordance with market principles.  In 2000 and 2001, Viet Nam 
had purchased 150,000 tons (representing some 20 pe r cent of domestic production) for temporary 
stockholding.  However, the strategy had failed and the stocks had subsequently been exported at a 
loss.  The low price of Viet Nam's coffee refl ected the high productivity of the domestic coffee 
industry due to good quality soil and favourable climatic conditions.  Viet Nam's coffee prices tracked  WT/ACC/SPEC/VNM/4/Rev.1 
 Page 81 
 
 
fluctuations at the London Commodity Exchange (LIFFE).  The gap between Vietnamese and LIFFE 
prices, ranging from US$150 to more than US$200, was mainly due to temporary oversupply in 
Viet Nam and the gap between the FOB price in Viet  Nam and the CIF price in London.  More than 
90 per cent of Viet Nam's coffee production was expor ted, mainly in the form of green coffee.  
Roasted and ground coffee was largely consumed domestically.   
252. The representative of Viet Nam initially said that Viet Nam did not provide any export 
support in the form of direct transfers from the State budget.  However, Viet Nam had begun granting 
direct budgetary export subsidies in 1998.  Subsidie s took the form of interest rate support; export 
bonuses; support to cover losses for enterprises e xporting rice, pork, and coffee; and support to 
exports of vegetables and fruit.   
253. Some Members were concerned that Viet Nam had introduced and maintained export 
subsidies for agricultural products.  Their expecta tion was that Viet Nam would not use agricultural 
export subsidies on any product after accession to th e WTO.  A Member requested information on 
export bonuses paid for a range of products includi ng rice, coffee, canned ve getables, canned fruit and 
pork in 2001. 
254. The representative of Viet Nam replied that bonuses contingent on export performance had 
been paid to enterprises exporting rice, coffee, por k, canned fruit and canne d vegetables in 2001 in 
accordance with Decision No. 65/2001/QD-BTC of 29 June 2001 of the Ministry of Finance.  The 
export bonus programme had been continued in 2002 , and extended to also cover beef and poultry 
meat;  fresh, dried and semi-processed fruit and vegeta bles;  tea;  peanuts;  pepper;  and cashew nuts 
(Decision No. 63/2002/QD-BTC of 21 May 2002).  Detailed information on subsidy per unit was 
provided in document WT/ACC/VNM/13/Add.2, pp. 20- 22.  He added that Vietnamese farmers had 
faced particularly difficult conditio ns during 1999-2001 with  large fluctuations in commodity prices, 
and his Government had therefore provided suppor t, including export subsidies, to stabilize 
production and foster the development of the agri culture sector.  He considered the level of 
Viet Nam's export subsidies negligible and with no significant distorting effects on international trade. 
255. [The representative of Viet Nam stated that Vi et Nam's agricultural export subsidies would be 
reduced progressively.  Export subsidies on coffee would be eliminated upon accession, and export 
subsidies on other agricultural products would be  phased out within three years from the date of 
Viet Nam's accession to the WTO.][The representativ e of Viet Nam confirmed that from the date of 
accession, Viet Nam would not maintain or introduc e any export subsidies on agricultural products.  
The Working Party took note of this commitment.]   WT/ACC/SPEC/VNM/4/Rev.1 
Page 82  
 
Fisheries 
256. The representative of Viet Nam said that his Government was implementing a comprehensive 
programme to develop aqua-cultu re industries.  The programmes were managed by enterprises, 
households and fishermen, and cooperatives, and re lied to a large extent on technical assistance by 
government experts through a fisheries extension system, training and management guidance for 
labourers in the sector.  Infrastructure, including the construction of refrigerated facilities and 
facilities for the construction and repa ir of fishing boats, was also be ing developed.  His Government 
was offering long-term loans to fishermen to build  or upgrade offshore fishing boats, and encouraged 
the introduction of new technologies.  His Government  had also promulgated the Law on Fisheries, as 
well as standards and regulations equivalent to re gulations on hygiene, food safety and veterinary 
requirements issued by Codex and the Code of Conduct for Responsible Fisheries.   
257. Import licenses for specialised fishery products mentioned in Decision 
No. 344/2001/QD-BTS of 2 May 2001 and Decision  No. 20/2003/QD-BTS of 12 December 2003 of 
the Ministry of Fisheries, includi ng seeds, feed, medicines, vaccin es, bio-chemical treatments, and 
growth stimulants, applied only to new products, in which case a licence for experimental import was 
required.  The Decision stipulated the requirement s and procedures relating to import and export of 
specialised fishery products.  Quarantine requireme nts and quarantine certificates were applied for 
health protection purposes - to prevent the spread of infectious diseases in the aqua-culture industry.  
The Ministry of Fisheries could ban exportation of rare marine species threatened by extinction and 
set conditions for the export of rare living mari ne species with high economic value if considered 
necessary to preserve resources.  
Textiles Regime  
258. The representative of Viet Nam said that tex tile and garment production was a relatively new 
industry in Viet Nam.  Exports of textiles and clothing had grown rapidl y, although Viet Nam's 
exports were still modest compared to other count ries with comparable population.  He noted that 
Viet Nam's export restraints on textile and clothing  products were based on agreements with countries 
applying quantitative import restrictions (Canada, the EU, Turkey and the United States). 
259. Some Members noted that Vi et Nam banned importation of second-hand clothing, and urged 
Viet Nam to apply less trade restrictive measures.   The representative of Viet Nam noted these 
comments, but considered the import prohib ition necessary to protect human health.   
260. A Member asked whether Viet Nam would accept that, for the purposes of Viet Nam's 
accession to the WTO, the phrase "in force on the da y before the entry into force of the WTO  WT/ACC/SPEC/VNM/4/Rev.1 
 Page 83 
 
 
Agreement" contained in Article 2:1 of the Agreem ent on Textiles and Clothing should be deemed to 
refer to the WTO, and that the increase in growth  rates provided for in Article 2:13 and 2:14 of the 
Agreement on Textiles and Clothing  should be applied to these base levels, as appropriate, from the 
date of accession of Viet Nam to the WTO. 
261. [The representative of Viet Nam confirmed that the quantitative restrictions on imports 
maintained by WTO Members on textiles and clothing pr oducts originating in Viet Nam that were in 
force on the date prior to the date of accession of  Viet Nam to the WTO should be notified to the 
Textiles Monitoring Body (TMB) by the Members main taining such restrictions  and would be applied 
for the purposes of Article 2 of the Agreement on Textiles and Clothing.  Thus, for the purposes of Viet Nam's accession to the WTO, the phrase "in for ce on the day before the entry into force of the 
WTO Agreement" contained in Article 2.1 of the Agreement on Textiles and Clothing shall be 
deemed to refer to the day prior to the date of accession of Viet Nam to the WTO.  To these base 
levels the increase in growth rates provided for in  Article 2.13 and 2.14 of the Agreement on Textiles 
and Clothing shall be applied, as appropriate, in  the Agreement on Textiles and Clothing from the 
date of Viet Nam's accession, such base leve ls and growth rates coming to an end upon the 
termination of the Agreement on Textiles and Clot hing.  The Working Party took note of these 
commitments.]   
Core Labour Standards 
262. Referring to paragraph 4 of the Singapore Ministerial Conference Declaration, a Member 
noted the commitment of all WTO Members to th e observance of core labour standards, i.e. 
recognising that the International Labour Organi zation (ILO) was the relevant body to advise upon 
these standards and declaring that all Members had an obligation to promote and realize the 
fundamental principles and rights at work.  In this  context, this Member requested Viet Nam to 
provide information concerning (i) the provision of core labour standards to workers in Viet Nam 
through national law and practice; (ii) work undertak en with the ILO to modify its law and practice to 
bring these into greater conformity with interna tionally recognised core labour standards; and 
(iii) whether the Government of Viet Nam had re quested technical cooperation and advisory services 
from the ILO to promote Viet Nam's observance of these standards.  A Member noted that Viet Nam 
had not ratified eight ILO Conventions related to cu rrent core labour standards, and asked whether 
Viet Nam had stipulated any rules or regulations concerning minimum wages. 
263. The representative of Viet Nam replied that Vi et Nam had ratified many conventions in the 
framework of the ILO.  By May 2003, Viet Nam had ratified 16 ILO Conventions.  The Labour Code 
of Viet Nam and other related lega l documents had been established w ith reference to the conventions WT/ACC/SPEC/VNM/4/Rev.1 
Page 84  
 
and recommendations of the ILO.  The Vietnamese  Government had requested technical cooperation 
and advisory services from the ILO in order to ensu re that Vietnamese labour  laws were consistent 
with established international standards. 
Trade-Related Intellectual Property Rights (TRIPS) 
1. General (a) Industrial property protection   264. The representative of Viet Nam said that the main legal instruments for the protection of 
intellectual property in Viet Nam were the Civ il Code of 1995 (Part Six); Government Decree 
No. 63/CP of 24 October 1996 on Detailed Regul ations on Industrial Property; Circular 
No. 3055/TT-SHCN of 31 December 1996 of the Mini stry of Science, Technology and Environment 
on Guiding the Implementation of the Provisions  on the Procedures for Establishing Industrial 
Property Rights, and a number of other procedures in Decree No. 63/CP; and Government Decree 
No. 76/CP of 29 November 1996 on Guiding the Implementation of the Provisions on Copyrights in the Civil Code; and Circular No. 23-TC/TCT of 9 May 1997 of the Ministry of Finance on Industrial Property Fees. 
265. He added that Viet Nam was upgrading the legal system for the protection of intellectual 
property rights and effective enforcement of these rights.  Viet Nam had enacted Government Decree 
No. 12/1999/ND-CP of 6 March 1999 on handling admini strative violations in the industrial property 
fields; Circular No. 825/2000/TT-BKHCNMT of 3 May 2000 of the Ministry of Science, Technology 
and Environment guiding the implementation of  Decree No. 12/1999/ND-CP; Government Decree 
No. 54/2000/ND-CP of 3 October 2000 on the protecti on of industrial property rights in business 
secrets, geographical indications, trade names a nd protection against unfair competition in the 
industrial property field; Government Decree No. 06/2001/ND-CP of 1 February 2001 on amendment 
and supplement to some articles of Decree No. 63/CP detailing the regulations on industrial property; 
Government Decree No. 13/2001/ND-CP of 20 April 2001 on the protection of new plant varieties; 
Government Decree No. 31/2001/ND-CP of 26 June 2001 on handling administrative violations in the 
field of culture and information, including copyright; Joint Circular No. 01/2001/TANDTC-
VKSNDTC-BVHTT of 5 December 2001 on dispute settlement procedures concerning copyright 
violations; Decree No. 101/2001/ND-CP of 31 December 2001 providing guidelines on customs 
procedures; Circular No. 29/2003/TT-BKHCN of 5 November 2003 of the Ministry of Science and Technology guiding the implementation of procedures for establishing industrial property rights to industrial designs; and Circular No. 30/2003/TT-BK HCN of 5 November 2003 of the Ministry of 
Science and Technology guiding the implementation of procedures for establishing industrial property  WT/ACC/SPEC/VNM/4/Rev.1 
 Page 85 
 
 
rights to inventions/utility solutions, including provis ions on application and examination in respect of 
micro-organisms.   
266. He presented an Action Plan for the Implemen tation of the TRIPS Agreement in document 
WT/ACC/VNM/12, and revised action pl ans in documents WT/ACC/VNM/21 and 
WT/ACC/VNM/21/Rev.1 and Rev.2.  Viet Nam was considering issuing an Intellectual Property 
Code, or individual Laws governing each subject-ma tter, against the option of including intellectual 
property provisions in an amendment to the Civil Code, and then issue various documents guiding the 
implementation of the Civil Code.   
(b) Responsible agencies for policy formulation and implementation 
267. The representative of Viet Nam said that the ma in ministries and agencies responsible for IPR 
policy formulation and implementation were the Mi nistries of Science and Technology; Culture and 
Information; Justice; Finance; and Trade; the Ge neral Customs Department (under the Ministry of 
Finance); the National Office of Intellectual Prop erty (under the Ministry of Science and Technology) 
and the Copyright Office (under the Ministry of Culture and Informa tion).  Administrative enforcement 
of IPR legislation was entr usted to the customs offices, the mark et control organizations, the Economic 
Police, the Culture and Informa tion Inspections, the Science and Technology Inspections, and the 
People's Committees at all levels (p rovincial, distri ct and commune). 
268. Concerning the tasks of the enforcement agenci es, he said that customs was responsible for 
controlling borders to prevent and deal with infringe ment of intellectual property rights in export and 
import activities, the market control organizations de alt with protection of intellectual property rights 
in production, trade and services within the domestic market, while the Economic Police was 
responsible for preventing and handling infringement of intellectual property rights in all business 
activities.  The People's Committees at the provincial level were entrusted by the Central Government 
to cooperate with enforcement bodies in protect ing industrial property rights (Section 63(3) of 
Decree No. 63/CP). 
(c) Participation in international intellectual property agreements 
269. The representative of Viet Nam said that Viet Nam had been party to the Paris Convention for 
the Protection of Industrial Property and the Madrid  Agreement on International Registration of Marks 
since 1949; the Convention establishing the World In tellectual Property Organization since 1976; and 
the Patent Cooperation Treaty sinc e March 1993.  Viet Nam had conclu ded bilateral agreements on the 
protection of intellectual property with the EU, the United States, a nd Switzerland, and was preparing 
its accession to the Berne Convention for the Protecti on of Literary and Artistic Works (1971).  He WT/ACC/SPEC/VNM/4/Rev.1 
Page 86  
 
expected Viet Nam to join the Berne Convention, the Rome Convention and the International Union for 
the Protection of New Varieties of Plants (UPOV Convention) in 2004.  He confirmed that Viet Nam's 
legislation neither allowed nor banned  the direct application of international treaties to which Viet Nam 
was a party.   
270. Viet Nam had so far not taken any decision on accession to the IPIC Tr eaty, as the level of 
protection afforded by this international treaty w ould essentially be covered by Viet Nam's eventual 
adherence to the TRIPS Agreement.  Viet Nam had no plans to ratify and join the WIPO Copyright 
Treaty or the WIPO Performance and Phonograms Treaty (WPPT).   
(d) Application of national and MF N treatment to foreign nationals 
271. The representative of Viet Nam said that Viet Na m applied the national treatment principle in 
accordance with the Paris Convention for the Protection of Industrial Property, and applied no 
discrimination, including Most Favour ed Nation treatment between the nationals of other countries.  
Viet Nam applied the principle of reciprocity in other cases.   
272. A Member noted that Viet Nam appeared to require foreign na tionals not having a 
representative office in Viet Nam to use specially licensed agents to establish or enforce trademark, 
design and patent rights, and asked whether this requirement also a pplied to copyright protection.  
Concerned that these provisions might  impose a burden on foreign applicants, restrict access and hamper 
the development of an effective intellectual property system, this Member asked what steps Viet Nam would take to ensure equal treatment betw een foreign and domestic right holders.   
273. In reply, the representative of Viet Nam said th at existing laws did not re quire foreign natural or 
legal persons to establish and enforce copyright th rough intellectual property agents.  According to 
Decree No. 63/CP (Article 15.3.b)  and Decree No. 42/2003/ND-CP (Art icle 12.3), the requirement to 
use Vietnamese industria l property agents applied only to fo reign non-residents and foreign legal 
persons without legal representation or an effective indu strial or commercial presence in Viet Nam.  The 
requirement aimed at protecting the interests of the right holder and facilitating his/her communication 
with the competent State authorities and was, in his view, in conformity with international practice and 
exceptions to national treatment a llowed under the TRIPS Agreement.   
(e) Fees and taxes  
274. The representative of Viet Nam said that current regulations specified 18 ty pes of fees related to 
administrative procedures for the establishment, maintenance and protection of industrial property 
rights.  Most fees were in the US$10-60 range; fees related to the establishmen t of rights in respect of  WT/ACC/SPEC/VNM/4/Rev.1 
 Page 87 
 
 
inventions amounted to US$100, and the annual ma intenance fees ranged from US$50 to US$280.  He 
added that Viet Nam imposed a tax on income derive d from royalties.  The tax rate was 5 per cent for 
non-resident individuals and enterprises in Viet Nam.  For resident individuals and enterprises, income 
derived from royalties was subject to the provisions of the Ordinanc e on Income Tax for High Income 
Earners and the Law on Corporate Income Tax.   
275. A Member stated that if Viet Nam charged a fee on top of the application fee to enjoy a 
priority right, then this practice would be contrary  to the Paris Convention.  The representative of 
Viet Nam held the view that the Paris Convention prohibited the collection of fees for late filing of 
documents, but not the application of fees with respect to priority right claims.  He considered Viet Nam's fee justified by the additional work in volved in comparing the two applications, adding 
that some WTO Members appeared to apply similar provisions.   
276. Some Members noted that Viet Nam had recons idered amending Circular No. 23 TC/TCT of 
the Ministry of Finance of 9 May 1997 to provide uniform fees and charges for both foreigners and 
Vietnamese, as Viet Nam had taken the view that f ees and charges levied in the area of industrial 
property were a matter of administrative proce dures and thus a permitted exception to the national 
treatment principle (Article 2 of the Paris Conventio n).  A Member pointed out that the exceptions to 
national treatment in Article 2 of the Paris Conve ntion referred only to judicial and administrative 
procedures, jurisdiction, and the designation of an address for service or appointment of an agent, 
adding that the national treatment provision of the TRIPS Agreement expressly included matters 
affecting the acquisition and maintenance of intell ectual property rights such as fees and related 
charges.  This Member urged Viet Nam to amend Circular No. 23 TC/TCT as early as possible. 
277. The representative of Viet Nam replied that his Government would consider this request.  
Differential fees and charges which could not be justified under the exem ptions provided for in 
Article 2(i) of the Paris Convention would be  annulled by a Circular amending Circular 
No. 23/TC-TCT.  A the Draft Circular of the Ministry of Finance on industrial property fees and 
charges to substitute Circular No. 23/TC-TCT of 9 May 1997 had been prepared, and he expected the 
new Circular to be promulgated during 2004.   
2. Substantive standards of protection, incl uding procedures for the acquisition and 
maintenance of intellectual property rights 
(a) Copyright protection 
278. The representative of Viet Nam said that accord ing to Article 747 of the 1995 Civil Code the 
literary, artistic, and scientific works in various fo rms subject to State copyright protection included WT/ACC/SPEC/VNM/4/Rev.1 
Page 88  
 
written works; lectures and speeches; theatrical wo rks and other forms of artistic performance; 
cinematographic and video works; radio and television  works; press works; musical works; architectural 
works; applied art work and fine art works; phot ographic works; scientific works, text books and 
teaching materials; graphi cs, drawings, sketches and maps rela ted to topography, architecture or 
scientific projects; translated, adapted, rewritten, transformed, compiled, annotated, selected and anthological works, including comp ilations; computer soft ware, including databases; and other works 
prescribed by laws.  "Scientific wo rks" covered works referring to scie nces such as written theoretical 
works in the natural, social, tec hnological, and economic sciences.  "Press works" were works published 
in newspapers.  "Other works" wa s an open provision referring to othe r forms of works not mentioned in 
the list, but subject to copyright protection.  Protec tion would not be granted for the works above if they 
were found to be in violation of  Article 749 of the Civil Code. 
279. Copyright was provided for original works irresp ective of form, language used for expression, 
and the quality of the works.  Copyright arose from the moment the work was created in a certain material form.  Works existing prior to the entry into force of the Civil Code were protected in 
accordance with paragraph 3 of the National Assemb ly Resolution on the implementation of the Civil 
Code if their term of protection had not expired and were not in vi olation of Civil Code provisions. 
Authorship was protected for the lifetime of the au thor and 50 years after hi s decease (in case of a 
co-authored work for 50 years after the death of th e last surviving author).  Cinematographic works; 
radio, television or video works; sound record ing works; and works published posthumously were 
protected for a period of 50 years from the date of first publication.   
280. The Civil Code also regulated the registration of  and application for the protection of author's 
right and the right to ownership of a work (Article 762); the rights of the author, owner of work and 
the time-limit for author's right protection (Articles 751,  752 and 766); and the rights of performers, 
individuals or organizations producing audio ta pes, video tapes and disks, and broadcasting 
organizations (Article s 775, 777 and 779); the rights of registratio n of and application for the protection 
of authorship/ownership of work (Articles 759 and 76 2); the rights of copyright transfer (Article 763); 
the rights of inheritance (Articles 764  and 765); and rental rights (Article 751).  Article 8.2 of 
Decree No. 76/CP regulated import rights of duplicates.  Phonogram producers were protected under 
the related rights provision (Artic les 776 and 777 of the Civil Code), and unfixed performances under 
Article 775 of the Civil Code.  Concerning radio an d television broadcasts, Vi et Nam had no specific 
regulation covering pre-programme or encrypted signal s, or transmission by cable.  The definition of 
broadcasting included only transmis sion by wireless means received directly by the public.  Protection 
of pre-programme and encrypted sign als would be considered in the pr eparation of the appropriate legal 
documents.    WT/ACC/SPEC/VNM/4/Rev.1 
 Page 89 
 
 
281. The registration process was governed by Article 762 of the Civil Code and Articles 23, 24, 
25, 26 of Government Decree No. 76/CP of 29 December 1996 on Implementation of Certain 
Provisions Concerning Copyright of the Civil Code.  The author or the copyright owner of a work 
filed the application and related documents with the Copyright Office of Viet Nam (COV).  The COV 
decided on the granting of a Registration Certificate within 10 days from the date of receipt of the 
application. 
282. Copyright arose from the moment a work was created in a concrete material form irrespective 
of whether or not it was a registered work (A rticle 754 of the Civil Code and Article 6 of 
Decree No. 76/CP).  Unless the declaration in the application for copyright protection was false, an 
author or owner of a registered work would not be  obliged to justify his/her ownership right over the 
work in case of dispute.   
283. Pursuant to Article 836 of the Civil Code and Article 12 of Decree No. 60/CP of 6 June 1997, 
the works of foreign individuals or foreign organi sations which were protected in Viet Nam included 
(i) works created and displayed in a certain mate rial form in Viet Nam, (ii) works made known 
publicly or disseminated in Viet Nam for the first time, and (iii) works protected in Viet Nam under 
international treaties signed or adopted by Viet Nam.   
284. Right holders had the exclusive right of repr oduction (Article 751.1.d of the Civil Code) and 
translation (Articles 757 of the Civil Code).  Limitations to author's rights were laid down in Article 760 of the Civil Code, which provided that individuals and organisations could use works 
which had been made known public or disseminated if duplication of the works was not prohibited, 
for non-commercial use, did not affect the normal exploitation of the works, and did not infringe on other rights of the works' author or owner.  Indi viduals or organisations using these works would not 
be required to apply for permission or pay royalties to the author or owner of the work, but would be 
required to include the name of the work's author and the source of the works.   
285. Pursuant to Article 761 of the Civil Code and Article 12 of Decree 76/CP, free use of 
published works included duplication for personal use, archives or for use in libraries; quotation without 
falsifying the intent of the author for commentary or illustration in other works (reports, periodical 
publications, documentary films, broadcasts or tele vision programmes) or for teaching and educational 
purposes; performance of theatrical works and other fo rms of artistic performance in public; direct audio 
and visual recording of performances for newscast or educational purposes; introduction of works of 
publicly displayed sculptures, architecture, photograp hy and applied arts; transl ation and dissemination 
of works in Vietnamese into the languages of ethni c minorities in Viet Nam and vice versa; and the 
conversion of printed works into Bra ille characters (for the blind).  However, according to item 1b, c WT/ACC/SPEC/VNM/4/Rev.1 
Page 90  
 
and d of Article 761 of the Civil Code, a quotation from a published work should not become the main 
part of a new work, and quotations w ould be limited only to the extent  of introduction, commentary or 
clarification of issues raised in the work of the person making the quotation, and should spell out clearly 
the name of the author and the sour ce of the quoted work (Article 12.2 of Decree No. 76/CP).  He added 
that the Ordinance on Libraries No. 31/2000/PL-UB TVQH10 of 28 December 2000 required libraries 
and governmental offices to comply with Viet Nam's legislation on intellectual property 
(Article 13.2). 
286. Authors or owners of works whose rights were  being infringed were entitled to require the 
person having committed the acts of infringement to  apologize, rectify, compensate for damages and 
to stop his infringement acts, or to request the comp etent State authority to force the person to do so 
(Article 759).  Criminal remedies were stipulated in Article 131 of  the Criminal Code.  Violators 
could face a fine of 200 million Dong or up to thr ee years imprisonment.  Recourse to civil remedies 
would depend upon the level of damage caused by  the person making the infringement acts.  Eight 
copyright infringement cases had been brought before th e civil courts so far.  Pursuant to Articles 57 
and 58 of the Customs Law (2001), the right holder could also request customs offices to halt 
clearance temporarily of infringing imported or exported goods. 
287. A Member had been informed by industry sources that the virtual absence of legally 
authorized distribution of first-run motion pictur es in Viet Nam created incentives and opportunities 
for piracy, and asked what steps Viet Nam intended to take to allow legal importation of first run 
motion pictures. 
288. The representative of Viet Nam replied that all films on show in Viet Nam were legally 
authorized.  The Ministry of Culture and Info rmation approved all imports of motion pictures, 
videotapes and DVD.  Imports were effected th rough FAFIM under the Ministry of Culture and 
Information (Article 15 of Gove rnment Decree 48/CP of 17 July 1995).  However, Government 
Decree No. 26/CP of 3 August 2000 and Article 3 of Circular No. 28/2000/TT-BVHTT of the 
Ministry of Culture and Information authorized  cinema businesses possessing or having held using 
rights for cinema theatre motion pi ctures for minimum five years, a nd whose cinema theatres met the 
requirements set by the Ministry of Culture and In formation and the Ministry of Construction, to 
import motion pictures - not necessarily through FAFIM - to be shown in their cinema theatres.  The 
monopoly rights conferred to FAFI M extended only to the importation of video tapes and DVD.  In 
deciding the number of foreign films approved for im portation, the Ministry would take into account 
the number of films produced locally and the capacity of the domestic distribution network.  All locally-produced and imported films were screened pursuant to Decision No. 2455/QD-DA on movie  WT/ACC/SPEC/VNM/4/Rev.1 
 Page 91 
 
 
inspection of 8 August 1997.  Viet Nam television coordinated importation of films for broadcasting 
with the Ministry of Culture and Information.   
289. Asked specifically about Viet Nam's regulation of digital copyright i ssues, the representative 
of Viet Nam said that the Civil Code, while provi ding protection to works in "determined physical 
forms", i.e. customary and traditional forms, did not specifically include the digital format and did not 
regulate temporary copies.  Protection of temporar y copies would be considered in the revision of 
Viet Nam's legislation on copyright and related rights.  The principles and forms of fair use 
exceptions permitted according to Articles 760 and 761 of the Civil Code did not include copied 
computer software.  Viet Nam had no direct and specific regulation on technological protection 
measures for protected copyright.  As to Internet services, Article 6.1 of Decree No. 55/2001 required 
compliance with the respective regulations under th e Law on Newspapers, the Law on Publishing, the 
Ordinance on Protection of State Secrets, and othe r laws and regulations on intellectual property and 
Internet information management.  The Decree prohibited strictly theft and unlawful use of 
passwords, codes and private information of individuals or entities on the Internet.   
290. A Member noted that Article 7 of the Ordinance on Copyright Protection of 1 July 1994 
contained wide provisions for denial of copyri ght and wondered whether any amendment would be 
required to comply with Article 9.2 of the Bern e Convention.  Referring to the Berne Convention 
requirement for automatic protection free of forma lities, the Member also requested an explanation 
for the reference in Article 5 of the Ordinance to grant protection to authors who did not register but 
"have needs for copyright" , in contrast to the reference to protection granted on the basis of 
registration. 
291. The representative of Viet Nam replied that the Ordinance on Copyright Protection of 1994 
had expired on 1 July 1996 and that all copyright-rela ted provisions had been incorporated in the Civil 
Code of 1995 (Chapter 1, Part Six).  He adde d that implementation of the TRIPS Agreement and 
accession to the Berne Convention for the Protection of Literary and Artistic Works would require 
Viet Nam to amend and improve its  legislation on copyright protection in some areas.  Existing 
legislation was inadequate with respect to detailed regulations on the protec tion of computer programs 
and compilations of databases (Ar ticle 10); provisions on the term  of protection of performers 
(Article 14.1); provisions on the rights of fixati on and communication to the public of broadcasts 
(Article 14.3); provisions on rental rights of phonogram s (Article 14.4); and provisions on the right of 
communication to the public in respect of perform ance of dramatic, dramatic-music and musical 
works (Article 9.1).  Moreover, the limitations on the rights of authors of published works in respect 
of performance of dramatic, dramatic-musical, musical and the fixation of musical works in Sections 
774 and 776 of the 1995 Civil Code were inconsiste nt with the requirements of Article 9.1 of the WT/ACC/SPEC/VNM/4/Rev.1 
Page 92  
 
TRIPS Agreement.  Amendments required to im plement the TRIPS Agreement properly were in 
preparation, but the timeframe for thei r adoption had yet to be determined. 
(b) Trademarks, including service marks 
292. The representative of Viet Nam said that trad emarks were protected in accordance with 
Article 785 of the Civil Code.  He noted that the sco pe of trademark protection in Viet Nam had been 
narrower than the requirement in Article 16.1 of the TRIPS Agreement, but had recently been 
extended by Decree No. 06/2001/ND-CP of 1 Febr uary 2001.  Trademarks for pharmaceutical 
products were regulated by the ge neral laws and regulations on trad emarks.  Mandatory registration 
was not required for any goods or services.  All trad emark registrations were published in the Official 
Gazette of Industrial Property. 
293. A trademark could be a word, an image or a comb ination of such elements represented in one 
or many colours.  A sign capable of distinguishing goods or services of the same kind, and not being 
objects excluded from protection in accordance with trademark laws and regulatio ns, could be registered 
for protection as trademarks.  While Viet Nam's laws  did not list the signs pr otectable as trademarks, 
personal names were ex officio  recognized as registerable signs.  Applications for registration of marks 
were filed with the competent State authority (the National Office of Intellectual Property).  Foreign 
natural and legal persons filed a pplications for trademark registra tion through a legally operating 
industrial property representative of their choice, or  through their branches or wholly-owned companies 
in Viet Nam.  Use was not a condition for entitlem ent to file an application for registration of a 
trademark.  A sign which did not possess distinctive character could be protecte d if it had been used 
widely and had a good reputation in Viet Nam.  Curr ent laws and regulations also applied to service 
marks.  Well-known marks were protected in  accordance with the Paris Convention. 
294. Examination of marks was mandatory, and include d examination as to form and substance.  
The National Office of Intellectual Property conducted ex officio  substantive examination of 
trademark applications and decided on refusal of  registration if a trademark failed to meet the 
protection requirements.  Prevailing Vietnamese laws had provisions on opposition to a trademark 
application prior to registration.  Not recogni zed as marks were signs not possessing distinctive 
character; signs describing goods in terms of quality, property, utility etc.; signs that could mislead the 
public; signs representing State flags, armorial beari ngs or emblems of Viet Nam or other countries 
(unless authorized by the relevant persons or authorities); names or emblems of international 
organizations (per Article 6 ter of the Paris Convention); signs contrary to law, public order and 
morality; and signs identical or similar to marks previ ously registered in Viet Nam or protected by an 
international convention to which Viet Nam was party in respect of the same kind of goods.  WT/ACC/SPEC/VNM/4/Rev.1 
 Page 93 
 
 
295. The owner of a trademark had the exclusive right to use, transfer, and licence the trademark to 
other persons.  He had the right to request a th ird party to stop infringement or to request the 
competent authority to handle such infringements.  A trademark was protected for ten years counted 
from the filing date and was renewable for periods of ten years without limitation.  The owner of a 
trademark was obliged to use the registered mark.  Fa ilure to use a trademark fo r five consecutive years 
without plausible reason would lead, upon request of a third party, to the nullification of the protection 
certificate.  Examples of justifiable reasons were na tural disasters, war, governm ental restrictions on use, 
etc.  Licensing of a trademark would not be considered  effective use, but the use of the trademark by the 
licensee would be considered an act of use (Section 46(3) of Decree No. 63/C P).  A registration would 
not be invalidated in the absence of a request for te rmination of validity, or if the owner had begun use 
of the trademark when such a requ est was made, even if the period of non-use had been longer than 
five years.  Applications reques ting termination or cancellation of a Trademark Registration Certificate 
were processed in accordance with procedures laid down in Section 27 of Decree No. 63/CP. 
296. Any contract of assignment of a trademark right needed to be registered with the National 
Office of Intellectual Property.  An assignment contract which had not been registered would be 
invalid.  In response to a specific question, he noted  that Viet Nam's laws did not oblige a trademark 
assignor to transfer, together with the trademark, the business to which the trademark belonged.  Thus, 
the trademark owner had the right to assign his trademark without the transfer of business in compliance with Article 21 of the TRIPS Agreement.   
297. Legal entities, including charitable organizations , could apply for trademark registration only 
if legally engaged in commercial activities.  However, charitable entities not engaged in commercial activities were protected against non- authorized registration of signs a nd designations identical to or 
similar to their emblems or designations according to Decree No. 63/CP, Section 6, subsection 2(g). 
298. Concerning co-ownership of trademarks, a Member noted that Viet Nam appeared not to allow 
a trademark to have more than one owner.  Several countries allowed joint ownership of trademarks, not 
to be confused with collective trademark rights,  and against this background Viet Nam's provisions 
would seem unduly restrictive – possibly due to a mi sinterpretation of Artic le 5(c) of the Paris 
Convention – and could provide a limitation on the rights of foreign trade mark owners to seek 
protection in Viet Nam. 
299. In reply, the representative of Viet Nam said that neither the TRIPS Agreement nor the Paris 
Convention required recognition of jo intly owned trademarks.  As the function of a trademark was to 
help consumers distinguish between goods and servic es of different businesse s, co-ownership might 
cause confusion.  His Government would ne vertheless consider this matter further. WT/ACC/SPEC/VNM/4/Rev.1 
Page 94  
 
300. A Member requested information about the right of appeal of administrative decisions 
provided for in the TRIPS Agreement, as Viet Na m appeared not to be in compliance with the 
requirement for judicial review of administrative decisions.  The representative of Viet Nam replied 
that decisions relating to the establishment, mainte nance, invalidation and cancellation of trademarks, 
having been appealed to the Director General of th e National Office of Intell ectual Property, could be 
appealed further, at the appellant's discretion, either to the Administra tive Court according to the 
Ordinance on the Judgement of Admi nistrative Cases, or to the Mini ster of Science and Technology 
according to Article 27(4) of Decree No. 63/CP.  Decisions of the Minister of Science and Technology on the legal effect of the decision unde r appeal were final and could not be further 
appealed to the Administrative Court.  As such, in  his view, existing laws a nd regulations provided an 
opportunity for both judicial and administrative review in compliance with the TRIPS Agreement.  
Viet Nam did not yet have detailed regulations on  procedures for the judgement of administrative 
cases relating to the establishment, maintenance, cancellation and invalidati on of trademarks (in 
particular, and of industrial property rights in gene ral).  For the time being, the promulgation of a 
circular guiding the judgement of cases relating to industrial property rights of the Supreme Court and 
related authorities was under consideration and schedul ed to be completed after the promulgation of 
the Civil Procedures Code at the end of 2004. 
301. He added that on 1 February 2001 his Government had promulgated Decree No. 06/2001/ND-
CP on amendments to Decree No. 63/CP of 24 Oc tober 1996.  Decree No. 06/2001/ND-CP broadened 
the scope of protection of trademark rights in comp liance with the TRIPS Agreement.  In particular, 
the Decree stipulated as infringement of a trademark owner's rights "the use of signs which are identical with the trademark protected by a Trademar k Registration Certificate or by an International 
Registration for goods or services similar to, or relate d to goods or services in the list registered with 
the trademark and/or the use of signs which are similar to the protected trademark for goods or 
services identical with, or similar to, or related to  goods or services in the list registered with the 
trademark, if such use is liable to create confusi on of the origin of goods or services".  Decree No. 
06/2001/ND-CP defined a "well-known trademark" as a trademark used continuously for so reputable 
goods or services that the trademark was widely known (Article 1, para.2 of the Decree).  Well-known 
trademarks did not need to be registered or used w ithin the territory of Viet Nam to be protected.  The 
industrial property rights of well-known trademarks were protected without time limit from the date 
on which the trademark had been recognised by a competent State authority as a well-known trademark.  Procedures for the recognition of we ll-known trademarks would be provided for in a 
Circular of the Minister of Science and Technol ogy on the implementation of Decree No. 63/CP, as 
amended by Decree No. 06/2001/ND-CP, to be promulga ted in 2004.  Pursuant to the draft Circular, 
requests for recognition would need to be accomp anied by documents proving the well-known status  WT/ACC/SPEC/VNM/4/Rev.1 
 Page 95 
 
 
of the trademark, including information on the num ber of relevant consumers knowing the mark by 
purchasing or using the goods or services bearing the trade mark; the number of countries in which 
the trade marked goods and services were being sold , providing trademark protection or recognizing 
the trademark as well-known; genera ted sales revenue; period of con tinuous use; indications of 
widespread reputation; the value of the trademark in  terms of licensing, contribution to an investment 
asset, etc.  He confirmed that in drafting the Circul ar Viet Nam had taken account of the provisions of 
the Joint Recommendation concerning the Provisi ons on the Protection of Well-Known Marks 
adopted by the Assembly of the Paris Union and the General Assembly of the World Intellectual 
Property Organization (WIPO) in September 1999.  He considered Viet Nam's system for the recognition of well-know marks to be fully consiste nt with the TRIPS Agreement, as well as with 
paragraph 1 of Article 6 bis of the Paris Convention.   
(c) Geographical indications, including appellations of origin 
302. The representative of Viet Nam said that geographical indications in general were protectable 
under Government Decree No. 54/2000/ND-CP on the protection of industrial property rights of business secrets, geographical indications, trade na mes and protection against unfair competition, 
notably Articles 10-13 and 19.  Article 5 of this D ecree stipulated that industrial property rights of 
geographical indications would be established automa tically if all prescribed conditions were fully 
satisfied without requirement for registration with  any competent State authority.  Article 10 of 
Decree No. 54/2000/ND-CP, which specified the criteria for protection of geographical indications, 
allowed protection for geographical indications othe r than geographical names.  Regions and localities 
within a country, as well as territories crossing intern ational borders, were protected if they complied 
with all requirements stipulated by laws.  The provisions were, in his view, in compliance with 
Article 22.1 of the TRIPS Agreement.  According to Article 23 of Decree No. 54/2000/ND-CP, acts 
infringing geographical indications would be handled  in accordance with the procedures for handling 
infringement of other industrial property rights.  Civil remedies for wrongfu l use of a geographical 
indication were provided for in paragraph 1 of Arti cle 21 of Decree No. 54/2000/ND-CP, and criminal 
penalties were stipulated  in Article 171 of the Criminal Code of 1999. 
303. Geographical indications of a special kind, name ly appellations of origin, were protectable 
under Decree No. 63/CP of 24 October 1996  as amended by Decree No. 06/2001/ND-CP of 
1 February 2001.  Appellations of origin had to be registered to enjoy protection.  The term of 
protection was indefinite.  The right to use appellati ons of origin was subject to certification by the 
National Office of Intellectual Property pursuant to the procedures provided for in Circular No. 3055/TT-SHCN, dated 31 July 1996, of the Minist ry of Science, Technology and Environment.  
The time-limit for formality examination was three months from the filing date and six months for WT/ACC/SPEC/VNM/4/Rev.1 
Page 96  
 
substantive examination.  A person having the right to  use an appellation of origin could request the 
competent State authorities to stop unlawful use of  such appellation, and demand compensation from 
unlawful users for the damage caused.  However, he would not have exclusive right to such appellation 
of origin, and could not transfer the right of use to other persons.  Three appellations of origin were 
currently protected in Viet Nam.   
304. Article 19.3 of Decree No. 54/2000/ND-CP of 3 October 2000 provided additional protection 
for wines and spirits.  Provisions on the protection of  appellations of origin a pplied generally to goods 
of all kinds, prohibiting "the illegal use of an appellati on of origin or signs confusingly similar thereto, 
including the case where the true origin of the prod uct or the appellation of origin is indicated or 
accompanied by wordings such as ""kind", "type", "imitating", or similar words to that effect" 
(Section 47(1)(b) of Decree No. 63/CP).  Infringements  could be dealt with under civil, administrative 
or criminal procedures and the provisions were, in  his view, consistent with the requirements of 
Article 23.1 of the TRIPS Agreement.   
305. As to the relationship between the protection of geographical indications and trademarks, 
Article 6.1(f) of Decree No. 63/CP of 24 Oct ober 1996 prohibited the registration of a trademark 
identical with or confusingly similar to protected  geographical indications, including appellations of 
origin.  The time to be taken into consideration for the protection of geographical indications was the 
priority date of the trademark application, or  the date of requesting recognition of a well-known 
trademark.  A Protection Title issued by mistake could be cancelled through the appeals procedure.  
Viet Nam's provisions were, in his view, in conf ormity with Articles 22.3 and 23.2 of the TRIPS 
Agreement, and also accommodated the conflict be tween trademarks and geographical indications 
dealt with in Article 24.5 of the Agreement.   
(d) Industrial designs 
306. The representative of Viet Nam said that indus trial designs - a specific appearance of a 
product embodied by lines, three-dimensional forms, colours or a combination thereof of world-wide 
novelty capable of serving as a pattern for a product of industry or handicraft – were protected in  accordance with Article 784 of the Civil Code.  Text ile designs were protectable in the same manner 
as other industrial designs.  Applications for re gistration of industrial de signs were filed with 
the competent State authority (the National Office of Intellectual Property) and subject to examination as 
to form and substance.  The initial term of protectio n of an industrial design was five years, counting 
from the filing date, and it could be renewed for two consecutive terms of five years (Section 9(2)(c) of Decree No. 63/CP).  WT/ACC/SPEC/VNM/4/Rev.1 
 Page 97 
 
 
307. The owner of a protected industrial design had the exclusive right to use, transfer or licence 
the right to use such industrial design to other persons, the right to request the competent State 
authority to compel other persons to stop infringe ments, and the right to claim compensation for 
damages caused by such acts of infringement (Article 796 of the Civil Code).  In his view, the current 
laws and regulations of Viet Nam were in complia nce with the requirement of Article 26.1 of the 
TRIPS Agreement.  Although the relevant provisions had not been phrased in the exact same wording 
as the TRIPS Agreement, the provisions also cove red the making, selling or importing of articles 
embodying designs which were "substantially a copy" of a protected design.  
308. The rights were restricted when provisions on prior user or compul sory licensing were applied.  
The rights of prior users were provided in Article 801 of the Civil Code.  According to Article 802 of 
the Civil Code and Section 51 of Decree No. 63/CP, compulsory licensing could only be applied (i) for 
reason of non-use or improper use; (ii) if the propo sed user had failed to reach an agreement with the 
owner on reasonable commercial term s and conditions; or (iii) for reasons of national defense and 
security, the prevention and treatment of diseases or other needs of the society.  The transferee of an industrial design by compulsory licensing was required to pay royalties to the owner.  Viet Nam's laws 
and regulations were, in hi s view, in compliance with Article 26.2 of the TRIPS Agreement. He added 
that provisions on compulsory licensing had been amended by Decree No. 06/2001/ND-CP of 
1 February 2001 to be brought into conformity  with Article 31 of the TRIPS Agreement. 
(e) Patents   
309. The representative of Viet Nam said that inve ntions (involving novelty, inventive step and 
industrial applicability) were protected in accordan ce with Article 782 of the Civil Code.  Patent 
applications were subject to examination as to fo rm and substance.  The time-limit for formality 
examination was one month and 12 mo nths for substantive examination as stipulated in Sections 16.1 
and 30.1 of Circular No. 30/TT-BKHCN.  By 31 December 2003, 4,021 invention patents had been 
granted, and the National Office of I ndustrial Property had a staff of 148. 
310. Subject matter excluded from protection fell with in three main categories, i.e. (i) those not 
considered as inventions, including scientific ideas, principles and discoveries, theories and mathematical methods; aesthetic creations; economi c management methods and systems; educational, 
teaching, training methods and systems; comput er programs; designs a nd planning schemes for 
construction works; projects for regional development and planning; (ii) subjec t matter which should be 
protected under other forms of protecti on than patents, e.g. layout desi gn of integrated circuits, or plant 
and animal varieties; and (iii) th ose not industrially applicable such  as methods for the prevention, 
diagnose, and treatment of human or  animal diseases, esse ntially biological proc esses for the production WT/ACC/SPEC/VNM/4/Rev.1 
Page 98  
 
of plants or animals other than non-biological and microbiological pr ocesses (Section 4( 4) of Decree 
No. 63/CP as amended by Decree No. 06/2001/ ND-CP of 1 February 2001).  Pharmaceutical pr oducts 
and processes to manufacture pharmaceutical products were protectable under Vietnamese law as they 
did not fall under the list of the objects excluded from protection under Section 4(4) of Decree No. 63/CP.  Responding to a Member, who consider ed Viet Nam's exclusions from protection far 
exceeded the exceptions permitted under Article 27.3 of the TRIPS Ag reement, the representative of 
Viet Nam said that the exclusions in Section 4(4) of  Decree 63/CP were essent ially equivalent to those 
of the European Patent Convention and did not, in his view, go well beyond the provisions of Article 
27.3 of the TRIPS Agreement.  Inve ntions could also be excluded from patentability for reasons of 
public order and morality in accordance with Articl e 787 of the Civil Code.  This provision applied 
irrespective of whether the commercial exploitation of such inventions was prohibited by law.   
311. The owner of the invention (patent) had the ex clusive right to use, transfer, and license the 
right to use the invention to other persons.  He  had the right to demand that other persons stop 
infringements, and he could seek compensation for damages caused by acts of infringement.  The 
term of a Patent for Invention began on the grant date and expired at the end of 20 years counting 
from the official filing date according to Section 9 of Decree No. 63/CP and was, in his view, in 
compliance with Article 33 TRIPS Agreement.  He a dded that utility solutions, which did not require 
protection under the TRIPS Agreement, were protected in Viet Nam.  Any technical solution possessing world-wide novelty with industrial appli cability in any economic or social area could be 
protected by a utility solution patent valid for ten years. 
312. The owner of an invention was obliged to use the invention (or transfer the right of use) 
in conformity with the requirements of soci o-economic development of  Viet Nam, and pay 
remuneration to the author of the invention if the ow ner was not the same as the author.  The rights to a 
patent (invention) could be  restricted by provisions on prior use right (Article 801 of the Civil Code) and 
compulsory licensing (Article 802 of the Civil Code).  The transferee of an invention by compulsory 
licensing was required to pay royalty to the owner.  Compulsory licensing coul d only be applied (i) for 
reason of non-use or improper use; (ii) if the propo sed user had failed to reach an agreement with the 
owner on reasonable comm ercial terms and conditions to no avail w ithin a reasonable period of time; or 
(iii) for reasons of national defense and security, the prevention and treatment of diseases or other urgent 
needs of the society.  He confirmed that importati on would satisfy the "use" requirement stipulated in 
Viet Nam's legislation.   
313. Conditions and procedures for granting non-voluntar y licences were laid down in Section 51 of 
Decree No. 63/CP, as amended and supplemented  by Decree No. 06/2001/ND-CP of 1 February 2001.  
Pursuant to Section 51, compulso ry licences could be granted only upon the expiration of a four year  WT/ACC/SPEC/VNM/4/Rev.1 
 Page 99 
 
 
period after the filing of an application for a Protecti on Title or three years after a Protection Title had 
been granted.  The patent owner was entitled to re quest the termination of the use of a non-voluntary 
licence if the circumstances which led to it had ceased or were unlikely to recur, provided such 
termination would not prejudice the grantee of the non-voluntary licence.  The Ministry of Science and 
Technology was responsible for granting and suspendi ng non-voluntary licences.  The Ministry notified 
the patent owner within 15 days upon receipt of a request for a compulsory licence, and the owner then 
had 30 days to give his opinion.  The Ministry could request the parties to renegotiate with a view to 
agreeing to a voluntary contractual licence, but if no agreement could be reached the Ministry had three 
months to issue a decision.  Th e decision to grant a non-voluntary licence had to published in the 
Official Gazette on Industrial Prop erty within one month from the date  of issuance of the licence.  
Specific conditions, corresponding to the provisions of Ar ticle 31 paragraphs (c), (d ), (e), and (h), were 
attached to the licence and the right holder had one month to comply with the conditions.  The patent 
owner and the transferee could appeal against the Mi nistry's decision to the Minister of Science and 
Technology and, in last instance, to the Prime Minist er or initiate an administrative court case.   
314. Compulsory licences for an invention could only be granted under the circumstances prescribed 
in Article 802 of the Civil Code.  He noted that no compulsory licence has been granted in Viet Nam 
thus far.  Although the conditions prescribed in Articles 31(f), (k) and (l) of the TRIPS Agreement 
were not provided for expressly in legal documents , Viet Nam would comply with the requirements 
during the application of provisions on the granting of compulsory licenses.  Provisions incorporating 
the wording of Articles 31(f), (k) and (l) would be  promulgated either by amending the respective 
existing provisions or be included in the new In tellectual Property Law and related regulations.   
315. The patentee's right to assign or inherit his patent and to conclude a licence contract 
(Article 28.2 of the TRIPS Agreement) was ensu red by Article 796 of the Civil Code, section 1, 
item b and section 2.  The assignment or licensing of a patented invention was subject to certain 
restrictions permitted by Articles 30 and 40 of the TRIPS Agreement.  The approval procedure of the 
Ministry of Science, Technology and Environment applicable to licensing and assignment contracts 
provided for in Decree No. 63/CP had been abo lished through Decree No. 06/2001/ND-CP.  In 
response to concerns expressed by a Member ab out limitations on royalty payments applied by 
Viet Nam, the representative of Viet Nam said that  the abolition of ceilings on royalty payments for 
intellectual property rights had been included in a draft amendment to Decree No. 45/1998/ND-CP on Technology Transfer, to be promulgated in 2004.   
316. In exceptional cases, the use of a protected inve ntion would not be considered infringement, 
i.e. use for non-commercial purposes; distribution,  circulation and use of products having been 
marketed by the owners, prior users or persons to whom  the right of use had been transferred; or when WT/ACC/SPEC/VNM/4/Rev.1 
Page 100  
 
use of the invention took place on foreign means of tr ansportation in transit or temporarily staying in 
the territory of Viet Nam and such use was aimed so lely at maintaining the operation of such means. 
317. Procedures for the termination and invalidation of invention patents were regulated by the 
provisions of Section 27 of Decree No. 63/CP as well as by the Ordinance on the settlement of administrative cases.  There were two routes to appeal against decisions of the National Office of Intellectual Property, and as which route to choose w as up to the interested parties, "an opportunity 
for judicial review", i.e. by the Administrative C ourt, was fully ensured.  In case a rightful appellant 
appealed to the Ministry of Science and Technolog y, it would be understood that he would not take 
advantage of the opportunity for judicial review, as the Minister's decision would be final.  He considered Viet Nam to be in full complian ce with Article 32 of the TRIPS Agreement.  
318. Asked about procedures for patent applications in respect of micro-organisms, he said that the 
Ministry of Science and Technology had pr omulgated Circular No. 30/2003/TT-BKHCN of 
5 November 2003 containing provis ions on patent applications for micro-organisms and the 
examination thereof.   
319. Concerning the reversal of the burden of proof in  civil proceedings, he expected provisions to 
be included in the Civil Procedure Code and/or in a Joint Circular of the Supreme People's Court, the 
Supreme People's Prosecution Institute and the Mi nistry of Science and Technology.  The draft 
Circular provided guidelines for the judgement of cases relating to industrial property and included 
provisions which in his view complied with Article  34.1 of the TRIPS Agreement.  He expected the 
Civil Procedures Code to be submitted for promul gation before the end of 2004, with the Joint 
Circular to follow.   
(f) Plant variety protection 
320. The representative of Viet Na m said that Decree No. 31/CP on Innovations and Inventions, 
Inter-ministerial Circular No. 01/NN-KCM on the Rem uneration to the Authors of Plant Varieties and 
Animal Species, and Decree No. 07/ND-CP of 1996 on  the Management of Plant Varieties constituted 
the legal basis for the protection of plant varieties.  A plant variety needed to be novel, stable, uniform 
and useful to obtain protection, and only the creator  of a plant variety was entitled to be registered 
with the Ministry of Science, Technology and Environment for author's rights.  Authors were 
protected by a system of Plant Variety Author Certifi cates, valid for 15 years from the date of filing of 
the application.  Apart from moral rights, the author of a protected plant variety had the right to remuneration paid by the users.  The exclusiv e right over the plant variety belonged to the 
Government.  WT/ACC/SPEC/VNM/4/Rev.1 
 Page 101 
 
 
321. Having studied the compliance of its laws and re gulations on the protection of plant varieties 
with the requirements of the TRIPS Agreement,  his Government had decided to promulgate 
provisions on the protection of new plant varie ties in accordance with UPOV standards.  His 
Government had issued Decree No. 13/2001/ND-CP on the protection of new plant varieties on 20 April 2001.  The Government Decree had been  supplemented by Circular No. 119/2001/TT-BNN 
of the Ministry of Agriculture and Rural Development.  These provisions, as well as 
recommendations of the UPOV Council, had been incor porated into the Ordinance on Plant Varieties, 
issued by the National Assembly on 24 March 2004.  The Ordinance had a higher legal effect than the 
earlier Government Decree.   
(g) Layout designs of integrated circuits 
322. The representative of Viet Nam said that  his Government had promulgated Decree 
No. 42/2003/ND-CP on Protection of Industrial Prope rty Rights in respect of Layout Designs of 
Semiconductor Integrated Circuits on 2 May 2003.  The Ministry of Science and Technology had also 
drafted a Circular guiding the implementation of the Decree for promulgation in 2004.  The Decree 
offered the same protection to "discrete" layout design as to other layout designs.   
323. Asked about intentions to join to the Treaty on  Intellectual Property in Respect of Integrated 
Circuits, he said that Viet Nam had not yet taken a decision on accession to the IPIC Treaty.  Viet Nam believed that such accession would not be  necessary, because the standards provided for in 
the TRIPS Agreement were almost equivalent to or  higher than those of the Treaty, and the WTO had 
far more members than the IPIC Treaty. 
(h) Requirements on undisclosed information,  including trade secrets and test data 
324. The representative of Viet Nam said that Government Decree No. 54/2000/ND-CP of 
3 October 2000, in particular Articles 6-9 and 18 , provided protection for business secrets, including 
trade secrets and test data.  Business secrets would be protected as long as they satisfied fully all 
prescribed conditions without being required fo r registration.  As provided for in Decree 
No. 54/2000/ND-CP, owners of business secrets had the right to demand injunctions from the State 
competent authorities to stop infringements and to claim damages (Article 21).  The protection of 
undisclosed test or other data submitted as a c ondition for approving the marketing of pharmaceutical 
or agricultural chemical products was addressed in  Article 18.4 of Decree No. 54/2000/ND-CP, and 
the authorities concerned – the Office of Pharmaceuti cal Administration under the Ministry of Public 
Health and the Office of Plant Protection under the Ministry of Agriculture and Rural Development – 
were required to keep test data secret in accord ance with regulations on data protection by State 
agencies as long as the data would satisfy the criteria for the protection of undisclosed information.   WT/ACC/SPEC/VNM/4/Rev.1 
Page 102  
 
325. Some Members were of the opinion that Artic le 18.4 of Decree No. 54/2000/ND-CP did not 
specify how Viet Nam's Government itself would protect pharmaceutical or agricultural chemical test 
data provided to it for marketing approval purposes.  The representative of Viet Nam replied that the 
competent authorities were required to ensure the secrecy of test data submitted under the secret- 
keeping rules of the administrative authorities.  More over, the State authority was not allowed to rely 
on test data submitted by one manufacturer to appr ove the products of anothe r manufacturer, and this 
principle would be subject to further elaborati on in a document guiding the implementation of Decree 
No. 54/2000/ND-CP, to be issued in 2004.   
3. Measures to control abuse of intellectual property rights 
326. The representative of Viet Nam said that violations of the regulations or procedures 
establishing a right in relation to an object of indus trial property could lead to the annulment of the 
granted protection certificate.  Non-performance of the owner's obligations such as failure to pay 
maintenance fees or remuneration to the author, or us e or transfer of an objec t already protected could 
result in annulment of the protection certificate or the competent authority could decide to compel the 
owner of the protection certificate to fulfil hi s/her obligations as stipulated by law. 
327. He added that legal provisions ha d been promulgated to enable Viet Nam to take appropriate 
measures to prevent or control anti-competitive prac tices in contractual licences.  Section 17.4 of 
Circular No. 3055/TT-SHCN stipulated restrictions on the contractual licensing of industrial property between the right owners and the licensees (industrial property licensing contracts), applicable to both 
Vietnamese and foreigners. 
328. While acknowledging that Article 8 of the TR IPS Agreement allowed appropriate measures 
to prevent the abuse of intellectual property rights, unreasonable restraints on trade, or adverse effects 
on the international transfer of technology, some  Members noted that Viet Nam had established a 
system of controlling technology transfer agreem ents in Circular No. 3055/TT-SHCN and Articles 32-
37 of Government Decree No. 45/1998/ND-CP of 7 Ja nuary 1998 which might slow the transfer of 
technology to Viet Nam, while the link to any abu se of intellectual property rights was unclear.  The 
system introduced limitations on the duration of royalty payments for patents and know-how, and 
capped royalty payments for trademark licences.  A Member requested Viet Nam to set terms for 
technology transfer agreements that would reflect  the minimum term for the duration of a patent 
stipulated in Article 33 of the TRIPS Agreement.   
329. The representative of Viet Nam replied that th e duration of technology transfer agreements 
were agreed among the related parties, in which th e time period for royalty payments for intellectual 
property rights should be within the relevant prot ection term.  The abolition of ceilings on royalty  WT/ACC/SPEC/VNM/4/Rev.1 
 Page 103 
 
 
payments for intellectual property rights had been  introduced in the draft amendment to Decree 
No. 45/1998/ND-CP on Technology Transfer, to be promulgated in 2004.   
4. Enforcement 
(a) Civil judicial procedures and remedies   
330. The representative of Viet Nam said that Peopl e's Courts (Civil Court), at provincial and 
higher level, had the authority of jurisdiction ove r disputes or infringement relating to industrial 
property rights.  The People's Court could adjudicate cases with respect to claims of abuse of industrial 
property rights, disputes concerning royalty or remuneration, claims on application right and the right of 
authorship, and disputes relating to contracts concerning transfer of owne rship right or licensing contract 
for the right to use objects of industrial property.  Lodging a claim or bringing a suit before the Court, the plaintiff or his/her lawful representative woul d need to provide evidence of his/her industrial 
property right as well as evidence of infringement of the rights.  The defendant had the right to refute 
the evidence and arguments of the plaintiff before the Court.  The Court had the right, upon request of either party or on its own initiative, to dema nd further evidence or documentation and request 
examination, as necessary (Article 41 of the 1989 Ordinance on procedures for handling civil cases).  
Detailed provisions on the proce dures for providing the necessary ev idence would be promulgated in 
a joint Circular of the Supreme People's Court, the Supreme People's Prosecution Institute and the 
Ministry of Science and Technology after the prom ulgation of the Civil Procedures Code in 2004.  
Procedures existed for amicable settlement of disputes over royalty, remuneration, licensing contracts 
and contracts to transfer ownership rights. 
331. The Court could rule that the act of infringement  be stopped, recognize the legitimate rights to 
objects of industrial property, request that the competent State authorities undertake procedures for 
the purpose of acquisition of rights, and award damages.  The compensation amount was determined based on the "actual material damage" or profit obtai ned illegally by the infringing party, and "mental 
damages".  The calculation of "actual material da mages" took into account property losses, costs of 
preventing or minimizing the damages, and lost inco me (Article 310.2 of the Civil Code).  "Mental 
damages" related to damages to the life, health, honour , dignity and prestige of the victim (Article 310.3 
of the Civil Code).  The joint Circular of the Supreme People's Court, the Supreme People's 
Prosecution Institute and the Ministry of Science and Technology would contain detailed provisions 
on the determination of damages and the level of compensation.  People's Courts could order that 
provisional measures be applied.  The Court would decide upon the apportioning of legal costs based on 
the rights and faults of the parties concerned.  The parties could appeal decisions of the first instance 
civil judgment and request a hearing at higher instance.   WT/ACC/SPEC/VNM/4/Rev.1 
Page 104  
 
332. He added that detailed provisions concerning in demnification of the defendant in the case of 
abuse of civil enforcement procedures by the compla inant would be stipulated  in the Civil Procedure 
Code and in joint Circulars of the Supreme People' s Court, the Supreme People's Prosecution Institute 
and the Ministry of Science and Tec hnology.  He noted that the intellectual property right owner, when 
requesting the suspension of customs procedures, was re quired to deposit an amount  equal to 20 per cent 
of the value of the goods at the State Treasury, or provide a guarantee ensuring compensation to the 
owner of the goods (A rticle 14.1.b of Decree No. 101/2001/ND-CP of 31 December 2001). 
333. Referring to Article 41.2 of the TRIPS Agreemen t, a Member asked Viet Nam to extend the 
period to file a suit for the settlement of an econo mic dispute involving infringement of intellectual 
property rights to minimum three years in order to pr ovide sufficient protection.  The representative of 
Viet Nam replied that a two-year period for f iling suits in economic disputes, including those 
involving infringement of intellectual property ri ghts, had been introduced in the draft Civil 
Procedures Code, to be submitted for promulgation in 2004.   
(b) Provisional measures 
334. The representative of Viet Nam said that the Courts having authorit y of jurisdiction over 
violations and disputes in relation to industrial pr operty rights could decide on the application of 
provisional measures.  Detailed provisions were  laid down in the Ordinance on procedures for 
judgement of civil cases of 1989.  The competent State bodies could also impose temporary administrative measures.  Provisional measures included the search and detention of material evidence 
or the facilities of infringement; compelling the infr inging party to stop the infringement; confiscation of 
infringed goods; and temporary seizure of goods fo r the purpose of ensuring proper compensation.  
Provisional measures could be lifted when no longer considered ne cessary by the imposing authority.   
335. The Court could order provisional measures to be taken on its own initiative or at the request of 
the Prosecution Institute or the parties concerned.  Having heard the opinion of the parties, the Court 
could take an immediate decision which would also be effective immediately.   The decision could be 
appealed by either party, in whic h case the Prosecution Institute woul d have the right to make a proposal 
to Court or to the Chief of Justice, who was requi red to respond within three days.  Further detailed 
provisions on provisional m easures would be promulgated in the Ci vil Procedures Code or in a joint 
Circular of the Supreme People's Court, the Supr eme People's Prosecution Institute and the Ministry 
of Science and Technology.  WT/ACC/SPEC/VNM/4/Rev.1 
 Page 105 
 
 
(c) Administrative procedures and remedies 
336. The representative of Viet Nam said that Viet Nam had no special agency for the enforcement 
of Intellectual Property Rights.  The competent bodies which could take administrative action in 
relation to violation of intellectual property rights were the market control organizations of the trade administration, customs offices, specialized inspectio n authorities such as the Culture and Information 
Inspection, the Science and Technology Inspection, the Economic Police, and th e People's Committees 
at various levels.  A radical reform of the industr ial property enforcement sy stem was being envisaged 
under a Decree amending Decree No. 12/1999/ND-CP, to be promulgated before the end of 2004, 
whereby the administrative enforcement system would have a focal point to receive complaints and to coordinate other bodies in the system.   
337. Administrative measures a nd remedies were regulated  by Government Decree 
No. 12/1999/ND-CP of 6 March 1999 on administrative m easures 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 as amended and suppl emented by Circular No. 49/2001/TT-BKHCNMT 
of 14 September 2001, and Govern ment Decree No. 31/2001/ND-CP of 26 June 2001 on administrative 
measures against violations in th e field of culture and information.  Any natural or legal person, 
including non-resident foreigners or foreign lega l entities without a representation in Viet Nam, had 
the right and obligation to denounce a violation by informing the competent authorities in writing or 
by other means.  Further provisions on closed procedures for judgement and measures to protect 
undisclosed information would be provided for in the Civil Procedure Code, to be submitted for 
promulgation in 2004, or in a joint Circular of the Supreme People's Court, the Supreme People's Prosecution Institute and the Ministry of Scien ce and Technology, to be issued thereafter. 
338. Administrative measures included the issu e of warnings or monetary fines up to 
100 million Dong (about US$6,700); seizure of material  evidence or the faci lities of infringement; 
destruction of infringement articles  and counterfeits and re lated materials (such as  product labels and 
packaging); revocation of business licences and profes sional licences (with or without time-limit); and 
the imposition of compensation - up to 1 million Dong - for damages.  The procedures to be followed in 
the confiscation and subsequent treatm ent of material evidence were laid  down in Articles 18 and 19 of 
Decree No.12/1999/ND-CP.  Detailed provisions on additional administrative remedies would be 
elaborated in the Decree amending Decree No. 12/ 1999/ND-CP.  Customs procedures for imports and 
exports could be suspended to protect intellectual property rights in accordance with Articles 57, 58, 
59 of the Customs Law of 29 June 2001 and D ecree No.101/2001/ND-CP of 31 December 2001.   WT/ACC/SPEC/VNM/4/Rev.1 
Page 106  
 
339. Decisions to impose an administ rative penalty were issued in writing within ten days following 
the reporting of the violation, or 30 days in complicated cases.  Appeals procedures were regulated 
according to the 1995 Ordinance on procedures for judgement of administrative cases, as amended and 
supplemented by the Appeal and De nounce Law of 1998.  Administrati ve decisions could be appealed 
by either party, first to the authority having issued the decision and subsequently either to the administrative court or to a superior administrative body.  If the latter option was chosen, the decision of 
the superior administrative body would be final a nd could not be challenged before a court.   
340. He added that the administrative system played an important role in the enforcement of 
intellectual property rights, and would be further strengthened.  Although th e award of damages was 
limited to 1 million Dong (around US$65), admini strative procedures were speedy, simple, 
inexpensive, and equitable, a nd right owners relied heavily on the administrative authorities, 
especially the market control agencies.  The purpos e of an administrative remedy was to prevent 
further infringement, not to offer just compensation,  as the right holder could still seek redress under 
civil procedures.  Compensation for damage was cu rrently conducted only under civil procedures.  
The injunctions were, in his opinion, powerful enough to prevent further infringement as most 
infringements were minor and unintentional.  The combination of administrative procedures and 
remedies and compensation under civil procedures provided, in  his view, the deterren t effect foreseen in 
Article 41 of the TRIPS Agreement and the indemnification of the defendant stipulated in Article 48.   
341. Asked about the allocation of staff to fight IPR crime and plans, if any, to create and/or 
designate specialized staff or  units, he said that Viet Nam entruste d this task to general law enforcement 
agencies and had no officials specialized in this area.  No particular incentives were available to these officials to encourage investigation a nd prosecution of IPR infringements.   
(d) Special border measures 
342. The representative of Viet Nam said that Cust oms Departments had the authority to detain 
imported or exported goods temporar ily upon request of the right holder.  A request for temporary 
detention of goods had to be accompanied by eviden ce to substantiate lawful  ownership right and use 
right to the object, and evidence testifying the infri ngement.  The right holder would also be required 
to deposit an amount equal to 20 per cent of the c ontractual value of the goods or provide a guarantee 
ensuring compensation in case of a wrongful request.  Decisions to suspend the release of goods from 
customs were issued by the Chief of the Cust oms Bureau pursuant to Article 14 of Decree 
No. 101/2001/ND-CP of 31 December 2001, and the pa rties concerned would be notified accordingly.  
Goods could be suspended from rele ase for ten days from the date the decision was issued, and an 
additional ten days in certain circumstances.  Ev idence of infringement would need to be produced  WT/ACC/SPEC/VNM/4/Rev.1 
 Page 107 
 
 
during this period.  The owner of the seized goods would also be given an opportunity to provide 
evidence or justifications relating to the industrial property right of the detained goods.  The Customs 
office would take a decision to release or prohibit ci rculation of the goods in consultation with the State 
management bodies for Intellectual Property (the National Office of Intell ectual Property and the 
Copyright Office).   
343. In response to specific questions, he added th at Viet Nam's legislation did not provide 
customs offices the right to suspend the release of goods ex officio, and detailed provisions allowing 
right holders or importers to inspect the detained  goods to reinforce their claims had yet to be 
elaborated.  The exemption for de minimis imports  allowed under Article 60 of the TRIPS Agreement 
was addressed in Article 760 of the Civil Code which referred to "usage for non-business purposes 
that does not conflict with the normal exploitation of the works and does not unreasonably prejudice 
the legitimate interests of the author" as not being considered infringement of copyright.  Provisions 
covering goods imported or expor ted for non-commercial purposes, goods exempted under diplomatic 
procedures, gifts, souvenirs, persona l luggage etc. would be elaborated further in a joint Circular of 
the Ministry of Finance and the Ministry of Science and Technology on border enforcement of 
industrial property rights.  The joint Circular woul d be submitted for promulgation before the end of 
2004.   
(e) Criminal procedures  
344. The representative of Viet Nam said that the Criminal Code of 1999 included provisions on 
copyright infringement (Article 131), production and trade in counter feits (Article 156), deceptive 
practices (Article 162), false advert ising (Article 168), and infringemen t of industrial property rights 
(Article 171).  Any person misappropriating copy rights, wrongfully assuming  an author's name, or 
illegally amending, publishing or di sseminating copyrighted works was subject to a fine of 20 to 
200 million Dong or non-custodial probation of up to  two years (Article 131).  Infringements of 
organized character or carrying very serious conseq uences, and repeated offe nce were punishable by 
imprisonment from six months to three years.  Offe nders also risked fines from 10 to 100 million Dong 
and being banned from holding certain positions or practising certain professions during one to 
five years.  Persons manufacturi ng or trading counterfeits valued  up to 150 million Dong risked six 
months to five years imprisonment, or three to ten years for organized or professional counterfeiting, 
recidivism, abuse of position, abuse of names of  organizations, counterfeit s priced between 150 to 
500 million Dong, large illicit profits, and acts resulting in very serious consequences (Article 156).  In 
case of counterfeited value exceeding 500 million Do ng, very large illicit profits and extremely serious 
consequences, the penalty would be increased to seve n to 15 years imprisonment .  Offenders would also 
face a fine of 5 to 50 million Dong, possible co nfiscation of property, interdiction to hold certain WT/ACC/SPEC/VNM/4/Rev.1 
Page 108  
 
positions and practise certain professions during one to five years.  Any person causing losses to 
customers due to fraudulent behaviour could receive a warning or a fine of 5 to 50 million Dong, and be 
liable to non-custodial probation for up to three year s or imprisonment ranging from three months to 
three years (Article 162).  Repeat ed offence or large illegal gains we re punishable by seven to 15 years 
imprisonment.  Offenders could also be fined 3 to 30 million Dong.  Persons fa lsely advertising goods or 
services were subject to a fine  ranging from 10 to 100 million Dong, non-custodial probation for up to 
three years or imprisonment of six months up to three ye ars (Article 168).  They also risked a fine of 5 to 
50 million Dong and an interdiction to practise certain professions during one to five years.  According 
to Article 171, infringements of industrial property ri ghts constituting criminal acts would be subject to a 
fine of 20 to 200 million Dong or non-custodial probatio n of up to two years.  Violations of organized 
character or carrying very serious consequences, and repeated infringemen ts, were punishable by 
six months to three years imprisonment.  Offenders also risked a fine of 10 to 100 million Dong and an 
interdiction to hold certain posts and practise certain professions during one to five years.  He 
considered these provisions effective deterrents and in compliance with Article 61 of the TRIPS Agreement.  
345. Some members considered the application of  death penalty for se rious counterfeiting of 
trademarks unacceptable and reques ted Viet Nam to eliminate this pr ovision as soon as possible.  The 
representative of Viet Nam replied that the Crimin al Code of 1999 only authorized death penalty for 
production and trade in counterfeited foodstuff, medi cines and prophylactics having extremely serious 
consequences.  He considered th ese provisions necessary to protect public hea lth and nutrition, and 
consistent with the principle provided for in Article 8.1 of the TRIPS Agreement.  
346. Asked about the relationship between administra tive penalties and criminal enforcement, the 
representative of Viet Nam said that any infringement of copyright and industrial property rights dealt 
with administratively and subsequently repeated would be considered a crime in accordance with 
Articles 131 and 171 of the Crimin al Code of 1999.  Administrative remedies thus served as a 
deterrent tool and, in the event of non-complianc e with administrative penalties, compelling measures 
could be taken pursuant to Article 64 of the 2002 Ordinance on the handling of administrative 
measures against violations.  The Criminal Code did not contain provisions providing for criminal 
penalties in case of violation of an administrative orde r, except in the event of recidivism as stipulated 
in Articles 131 and 171.  He added that the 2002 Ordinance provided for the immediate transfer of administrative cases including a criminal element to the competent criminal authorities and, in the event an administrative decision ha ving already been issued, the nullificati on of that decision and the transfer 
of the case within three days, unless the time-limit  for criminal prosecution had expired (Articles 62.1 
and 62.2).  Evidence collected during an administrative procedure could be used by the civil court if 
necessary in accordance with Article 3 of the Ordi nance on procedures for handling civil cases of 1989.  WT/ACC/SPEC/VNM/4/Rev.1 
 Page 109 
 
 
347. A Member urged Viet Nam to implement the TRIPS Agreement upon accession without 
recourse to a transitional period, stressing the importance of establishi ng appropriate laws and 
regulations, and adequate enforcem ent mechanisms.  Some  Members noted that although Viet Nam had 
implemented many intellectual property laws, Viet Nam also needed adequate enforcement mechanisms and sanctions to ensure protection of intellectual property rights, including civil procedures allowing 
plaintiffs to bring forward actions regarding in fringement, enforcement by the police, and border 
measures by the customs authorities.   
348. In reply, the representative of Viet Nam refe rred to the Action Plan on the Implementation of 
TRIPS Agreement provided in document WT /ACC/VNM/21, and re vised in documents 
WT/ACC/VNM/21/Rev.1 and Rev.2.  He emphasized that his Government would endeavour to 
complete its intellectual property re gulations, in particular those relate d to dispute settlement, remedies, 
and border measures, and strength en enforcement mechanisms.   
349. [The representative of Viet Na m confirmed that his Government would apply [fully] all the 
provisions of the Agreement on Trade-Related Aspect s of Intellectual Property Rights from the date 
of accession to the WTO, without recourse to any tran sitional period.  The Working Party took note of 
this commitment.] 
Policies affecting trade in services 
350. The representative of Viet Nam said that most se rvices sectors were still in the early stages of 
development in Viet Nam.  According to the Gene ral Statistical Office, services had accounted for 
42.5 per cent of Viet Nam's GDP in 1995.   
351. The main Ministries and agencies involved in the regulation of services activities were the 
Ministries of Agriculture and Rural Development; Tr ade; Planning and Investment; Transportation; 
Information and Culture; Finance; Construction;  Science, Technology and Environment; Labour,  
War Invalids and Social Affairs; and Industry; the State Bank; the Ministry of Posts and Telematics; 
the General Department of Tourism; the Civil Aviation Administration; the Navigation 
Administration; the Directorate for Standards and Quality; the Broadcasting and Television Authorities; and the Cinematography Office.  In addition to governmental agencies, provincial level people's committees were also authorized to administer  local services industries  in conformity with the 
national legal system.  Information on the existing regime in the area of services in the format of 
document WT/ACC/5 was provided in docu ment WT/ACC/VNM/5 of 24 August 1998. 
352. Concerning professional services, he said that foreign law firms could be present in Viet Nam 
in the form of a branch (maximum two branches).  Pursuant to Government Decree WT/ACC/SPEC/VNM/4/Rev.1 
Page 110  
 
No. 92/1998/ND-CP of 10 November 1998 on legal cons ultancy of foreign lawyers in Viet Nam, 
minimum five years of experience in legal consulta ncy was required for the heads of foreign law firm 
branches in Viet Nam.  The experience could be  obtained in any country.  Foreign lawyers in 
Viet Nam were not allowed to advise on Vietna mese laws, and were only permitted to advise on 
foreign and international law in the areas of busin ess, investment, and commerce.  Foreign law firms 
could enter into legal consulting cooperation cont racts with Vietnamese legal services suppliers to 
receive advice on Vietnamese laws.  Foreign auditing firms could operate in Viet Nam in the form of 
a joint-venture with a Vietnamese auditing firm.  Wholly foreign-owned auditing firms had to be 
licensed as provided for in the Foreign Investment La w and other related legal acts.  Advertising was 
a new activity in Viet Nam, and the ma rket would be liberalized gradually. 
353. Engineers and architects had to be certified  in accordance with the Regulation on Granting 
Certificate for Design Practice of Construction Work.  Renewable certificates valid for five years 
were delivered by the Construction Department s of cities and provinces.  The Ministry of 
Construction was responsible for supervising the granting of certificates.  Works covered by the 
Regulation included general layout design, architectural  design, exterior and interior design, structural 
design, electrical and mechanical design, as well as design relating to water supply and sewage, 
energy supply, ventilation and air conditioning, co mmunications, and fire protection.  Engineering 
and architectural services providers  were required to hold a Bachelor  or higher degree, have minimum 
three years experience in the design of construction works, and have participated in the design of 
minimum 3 projects within a list of registered design works.   
354. The Ordinance on Posts and Telecommunications had been enacted in October 2002, being 
the highest legal normative document passed by th e Standing Committee of the National Assembly.  
The Ordinance governed the regulatory, op erational and business activities in posts, 
telecommunications and radio fre quency management, created an important legal framework for 
market liberalization, and a level playing field for co mpetitors.  Together with this Ordinance, several 
governmental decrees, Ministerial circulars and deci sions had been promulga ted on interconnection, 
tariffs and pricing, frequency and numbering, in spection, the settlement of disputes, and illegal 
services.  Long-term development plans and stra tegies had been approved and published.  The 
regulatory and business environment had been improved to become more transparent, predictable and 
pro-competitive.   
355. The organization and operation of credit ins titutions and the banking activities of other 
organizations were governed by the Law on Credit In stitutions and some othe r legal documents.  The 
State Bank of Viet Nam had issued regulations to guide the implementation of the Law on Credit 
Institutions.  The Law specified the licensing re quirements for the establishment and operation of  WT/ACC/SPEC/VNM/4/Rev.1 
 Page 111 
 
 
credit institutions in Viet Nam.  The process in cluded an economic needs test.  Foreign credit 
institutions could operate in Viet Nam in the form  of a representative offi ce, a bank branch, a joint-
venture bank, a joint-venture finance company, or a wholly owned foreign finance company, a joint 
venture financial leasing company, or a wholly owne d financial leasing company.  Pursuant to Article 
32 of the Law on Credit Institutions, credit institu tions were permitted to establish subsidiaries.  
However, up to now, only State owned commercial banks, joint-venture ba nks and shareholding 
commercial banks had been allowed to establish s ubsidiaries.  Operating licences for representative 
offices were valid for five years, 20 years for branches of foreign banks, 30 years for joint-venture banks, and 50 years for joint-venture finance comp anies, wholly foreign-owned finance companies, 
joint-venture financial leasing companies and who lly foreign-owned financial leasing companies, and 
these operating licences could be extended.  Minimum capital requirements had been established for 
Joint-Venture banks (US$10 million), branches of foreign banks (US$15 million), and joint-venture 
or wholly foreign-owned non-bank ing credit institutions (US$5 milli on).  The contribution of the 
foreign party in a joint-venture bank acting as a co mmercial bank could not exceed 50 per cent of the 
bank's registered capital, while the foreign part y in a joint venture non-banking credit institution 
needed to account for at least 30 per cent of the re gistered capital.  A foreign legal entity or foreign 
individual was not allowed to own more than 10 per cent of the registered capital of a Vietnamese 
joint-stock commercial bank or joint-stock financia l company, and the aggregate share of foreign 
shareholders could not exceed 30 per cent of the registered capital.   
356. The establishment of foreign insurance companies in the Vietnamese market was subject to an 
economic needs test.  Vietnamese individuals a nd organizations were not allowed to purchase 
insurance abroad for risks arising in Viet Nam.  The National Assembly had approved the Law on Insurance Business on 9 December 2000.  The Law had entered into force on 1 April 2001.  A 
securities trading center had been established in Ho  Chi Minh City, and plans existed to establish a 
center also in Hanoi.  Foreign securities companies wishing to trade securities in Viet Nam would be 
required to set up joint-ventures with Vietnamese partners and operate in conformity with the 
Enterprise Law and Government Decree No. 114/20 03/ND-CP on securities and stock exchange, and 
other applicable laws and regulations. 
357. As a member of the Association of Southeast Asia Nations (ASEAN) and the Asia-Pacific 
Economic Cooperation Forum (APEC), Viet Nam was pa rticipating in negotiations to liberalize trade 
in services.  Viet Nam had offered certain co mmitments in some services sectors such as 
telecommunications, tourism, transportation, and financial services under the ASEAN Framework 
Agreement on Services (AFAS).   WT/ACC/SPEC/VNM/4/Rev.1 
Page 112  
 
358. In response to requests from Members that Viet Nam phase out business co-operation 
contracts (BCC) in favour of more attractive arrange ments for foreign investors, as well as the lifting 
of limitations on foreign participa tion in joint ventures in several services sectors, the representative 
of Viet Nam said that these matters could be di scussed further in the bilateral market access 
negotiations.   
Transparency Publication of information on trade 
359. A Member noted that Viet Nam was consideri ng a bill to amend the Law on the Promulgation 
of Legal Documents to include procedures for pub lication and public comment.  This Member urged 
Viet Nam to adopt the bill promptly, and thereby develop a system for easy and prompt access to 
relevant legal documents.  Some  WTO Agreements required the provision of an opportunity for 
transparent review and comment on the regulati ons and rulings of government agencies, and 
generalized to other sectors, in particular those re lating to international trade and customs, services 
and intellectual property, would be an immense st ep forward for Viet Nam.  This Member also 
encouraged government agencies and people's commi ttees to respond in a prompter and more reliable 
manner in the future to queries regarding th e interpretation of legal documents.   
360. The representative of Viet Nam said that as a general rule, stipulated in the Law on the 
Enactment of Legal Documents of 12 November 1996,  legal documents were required to be published 
in the Official Gazette or made known to the public through the mass media.  As the effective dates of 
most legal documents were attributed to the time of publication in the Official Gazette as regulated by 
the Law, the Official Gazette was published almost  daily.  On average, Viet Nam issued 3 to 4 
volumes of its Official Gazette every month.  According to the amended Law on Promulgation of 
Legal Documents, approved by the National Assemb ly on 16 December 2002, legal documents were 
required to be published in the Official Gazette a nd would only become effective 15 days thereafter, 
or at a later date if so specified.  He added that  legal documents were accessible on the Internet, for 
the time being in Vietnamese only.  Legal doc uments issued by local authorities and provincial 
People's Councils were put up in  notice on their premises.   
361. Viet Nam had issued the Law on the Enactment of Legal Documents (amended in 2002) to 
ensure the transparency of the legal system of Viet  Nam from the stage of drafting to implementation.  
Since the implementation of this Law, comments on  drafts of legal documents had been collected 
widely from related agencies and individuals.  The obligation to seek the opinions of those directly 
affected by the legal documents, and the possibility to take account of these opinions in the drafting 
process, was laid down in Articles 3, 26.4 and 61 .4 of the amended Law on Enactment of Legal  WT/ACC/SPEC/VNM/4/Rev.1 
 Page 113 
 
 
Documents.  Articles 62.2 and 65.4 of the amende d Law required the Office of the Government to 
publish draft Government Resolutions and Decrees and Decisions and Instructions of the Prime 
Minister in the mass media and on the internet  for comment by agencies, organizations and 
individuals.   
362. Draft trade-related legislation was made availa ble to residents and non-residents for comment 
through the Vietnamese Chamber of Commerce and Industry, and through other channels.  Annual 
and long-term legislative plans adopted by the Na tional Assembly were published in accordance with 
the Law on the Enactment of Legal Documents.  Pursuant to this Law, agencies drafting legal 
documents were required to accept the comments collect ed and revise their drafts accordingly.  Asked 
whether laws, regulations or administrative orders  could take effect prior to publication, the 
representative of Viet Nam said that according to  the Law on the Enactment of Legal Documents, 
Viet Nam's legislation applied retroactively only in extreme cases.  The Law also stipulated non-
retroactivity in case of (i) new legal obligations imposed on actions happening at a time when such 
legal obligations had not been provided by law; and (ii) new legal obligations  which were higher than 
those applied at the time when such actions took place.   
Notifications 
363. [The representative of Viet Nam said that, at the latest upon entry into force of the Protocol of 
Accession, Viet Nam would submit all initial notif ications required by any Agreement constituting 
part of the WTO Agreement.  Any regulations sub sequently enacted by Viet Nam which gave effect 
to the laws enacted to implement any Agreement constituting part of the WTO Agreement would also 
conform to the requirements of that Agreement.  The Working Party took note of this commitment.] 
Trade Agreements 
364. The representative of Viet Nam said that, as of April 1995, Viet Nam had acceded to 
73 multilateral agreements and treaties.  He provide d a list of 55 foreign trade agreements, 17 general 
treaties and 17 tax treaties in document WT/ACC/VNM /3/Add.1, Annex 8.  The trade agreements 
provided for MFN treatment, granted on a reciprocal basis.  At present, preferential rates of import 
duty were applicable only to ASEAN countries and on 243 tariff lines of textile items imported from 
the European Union (in return for increased impor t quotas on Vietnamese exports of textiles to the 
EU).  Viet Nam had become member of ASEAN in July 1995 and as part of its membership 
commitments, Viet Nam had signed 21 ASEAN Agre ements and two Memoranda  of Understanding.  
As of 2000, the Inclusion List of Viet Nam compri sed 4,233 tariff lines, the Temporary Exclusion List 
contained approximately 1,900 tariff lines, the Gene ral Exclusion List covered 131 products and the 
Sensitive List of Unprocessed Agricultural Products included 51 tariff lines.  Viet Nam did not have a WT/ACC/SPEC/VNM/4/Rev.1 
Page 114  
 
list of highly sensitive products.  Viet Nam had not  entered into any labour market integration 
agreements. 
365. Some Members noted that Viet Nam, in the context of its commitments under the Agreement 
on a Common Effective Preferential Tariff (CEPT)  implementing the ASEAN Free-Trade Area, had 
referred to its list of sensitive agricultural products to be fully phased into the inclusion list by 2013 
with final bound rates at 5 per cent.  Viet Nam was requested to provide a copy of the list of sensitive 
products to the Working Party, and to indicate whet her the list overlapped with  imports subject to line 
management or other forms of import restriction. 
366. The representative of Viet Nam replied that  sensitive unprocessed agricultural products and 
highly sensitive products had not b een included in the CEPT/AFTA framework prior to 1995.  Since 
then, ASEAN members had established a special m echanism for tariff reduction and elimination of 
non-tariff barriers on these products.  Viet Nam ha d signed a Protocol in September 1999, according 
to which Viet Nam was committed to reducing its tariffs on sensitive unprocessed agricultural 
products to 0-5 per cent for other members of ASEAN by 2013. 
367. Some Members noted that Viet Nam was requi red – under a bilateral agreement on textiles 
and clothing - to reduce its tariffs on a number te xtile products imported from the EU during a period 
of ten years starting from 1 January 1996.  These Members asked whether the tariff reductions were implemented on an MFN basis and, if not, how Vi et Nam would abide by Article I of the GATT as a 
Member of the WTO.  Some Members requested that Viet Nam provide a copy of its bilateral trade 
agreement with the United States to the Working Pa rty.  A Member requested Viet Nam to clarify 
how provisions in this agreement would be applie d in relation to other Members of the WTO.   
368. The representative of Viet Nam replied that Viet Nam would comply with the MFN principle 
within the meaning of Article I of GATT 1994 upon accession to the WTO.  The bilateral agreement 
with the United States had come into force at the end of 2001.   
369. [The representative of Viet Nam confirmed that Viet Nam would observe all WTO 
provisions, including those of Article XXIV of the GATT 1994 and Article V of the GATS in the trade agreements to which it belongs, and would en sure that the provisions of these WTO Agreements 
for notification, consultation and other requireme nts concerning free trade areas and customs unions 
of which Viet Nam was a member were met from the date of accession.  He confirmed that Viet Nam 
would submit notifications and copies of the Free Trade Area and Customs Union Agreements to 
which it belongs to the Committee on Trade in G oods for transmittal to the Committee on Regional 
Trade Agreements (CRTAs) for review.  The Wo rking Party took note of this commitment.]  WT/ACC/SPEC/VNM/4/Rev.1 
 Page 115 
 
 
Conclusions 
370. The Working Party took note of  the explanations and statements of Viet Nam concerning its 
foreign trade regime, as reflected in this Report.  The Working Party took note of the commitments 
given by Viet Nam in relation to certain speci fic matters which are reproduced in paragraphs 
[      and        ] of this Report.  The Working Party took note that these commitments had been 
incorporated in paragraph 2 of the Protocol of Accession of Viet Nam to the WTO.   
371. Having carried out the examination of the foreign trade regime of Viet Nam and in the light of 
the explanations, commitments and concessions made by the representative of Viet Nam, the Working 
Party reached the conclusion that Viet Nam be  invited to accede to the Marrakesh Agreement 
Establishing the WTO under the provisions of Article  XII.  For this purpose, the Working Party has 
prepared the draft Decision and Protocol of Accessi on reproduced in the Appendix to this Report, and 
takes note of Viet Nam's Schedule of Concessions and Commitments on Goods (document 
WT/ACC/VNM/../Add.1) and its Schedule of Specific Commitments on Services (document WT/ACC/VNM/../Add.2) that are annexed to the draft Protocol.  It is proposed that these texts be adopted by the General Council when it adopts th e Report.  When the Decision is adopted, the 
Protocol of Accession would be open for acceptan ce by Viet Nam which would become a Member 
thirty days after it accepts the said Protocol.  Th e Working Party agreed, therefore, that it had 
completed its work concerning the negotiations for the accession of the Socialist Republic of 
Viet Nam to the Marrakesh Agreement Establishing the WTO.   
_______________ 
 WT/ACC/SPEC/VNM/4/Rev.1 
Page 116  
 
ANNEX 1 
Laws, Regulations and Other Information Pr ovided to the Working Party by Viet Nam
 
- National Assembly's Resolution No. 51/200 1/QH10 on amendment of and supplement to 
some Articles of the 1992 Constitution of the Socialist Republic of Viet Nam of 25 December 2001; 
- Law on Profit Tax of 1 October 1990; 
- Law on Enterprise Income Tax (1997) of 10 May 1997; - Law on Agricultural Land Use Tax (1993) of 10 July 1993; - Law on Transfer of Land use Right Tax of 22 June 1994; - Ordinance on Income Tax on High-Income Earners of 19 May 2001; 
- Ordinance of the Standing Committee of th e National Assembly on Income Tax of High 
Income Earners (1994) of 19 May 1994, as amended; 
- Ordinance of the State Council on Royalties of 30 March 1990; - Decision No. 396/TTg dated 4 August 1994 On Amendments of and Additions to Foreign 
Currency Control in the Prevailing Circumstances; 
- Circular No. 08/1998/TT-NHNN7 of 30 September 1998 on Guiding the Implementation of 
Decision 173/1998/QD/TTg on the obligation to sell and rights to buy foreign currencies from 
Residents which are organizations (the State Bank of Viet Nam (SBV) provides guidance for 
this Decision); 
- Decree No. 63/1998/ND-CP of 17 August 199 8 on Foreign Exchange Management of the 
Government; 
- Decision of Compulsory Selling Rage of Fore ign Currency with Respect to Current Sources 
of Income of Residents Being Economic or Social Organizations (Decision No. 46-2003-QD-
TTg of 2 April 2003); 
- Law on Cooperatives (1996); - Law on Companies of 21 December 1990, as amended 1 July 1994; 
- Law on Private Enterprises of 21 December 1990, as amended 1 July 1994; 
- Commercial Law No. 05/1997/QH9 of 10 May 1997; - Law on Business Bankruptcy of 30 December 1993; - Law No. 13/1999/QH10 – The Enterprise Law; - Law on Promotion of Domestic Inv estment (1994) of 22 June 1994; 
- Law on Foreign Investment in Viet Nam of 12 November 1996; 
- Law on amendment of and addition to a number of articles of the Law on Foreign Investment 
In Viet Nam of 9 June 2000; 
- Governmental Decree No. 12/CP of 18 Fe bruary 1997 Providing Regulations on Foreign 
Investment in Viet Nam (1997); 
- Circular No. 74 TC/TCT of 20 October 1997 Providing Guidance On the Implementation of 
Tax Provisions Applicable to Various Form s of Investment Under the Law on Foreign 
Investment in Viet Nam; 
- Government Decree Providing Detailed Regula tions on the Implementation of the Law on 
Foreign Investment in Viet Nam (Decree No. 24-2000-ND-CP of 31 July 2000); 
- Ordinance on Price of 26 April 2002; - Petroleum Law of 6 July 1993; 
- The Law on amendment of and addition to a number of articles of the Law on Petroleum of 
9 June 2000; 
- Law on Land of 31 May 2001; - Law No. 10/1998/QH10 mending and complementing a number of Articles of the Land Law 
dated 2 December 1998; 
- Labour Code (1994) of 23 June 1994;  
- Law on the amendment of and supplement to a number of Articles of the Labour Code of 
2 April 2002;  WT/ACC/SPEC/VNM/4/Rev.1 
 Page 117 
 
 
- Law on State Enterprises of 20 April 1995 (Presidential Order No. 39-L/CTN of 
30 April 1995 to promulgate the Law on State Enterprises and the Law on Amendments and Supplements to a number of Articles of the Law on Viet Nam Civil Aviation); 
- Law on the Promulgation of Legal Documents of 12 November 1996; - Law on Amendment and Addition to a Number of Articles of the Law on Promulgation of 
Legal Instruments (Law No. 02-2002-QH11 of 16 December 2002); 
- Ordinance on Commercial Arbitration (No. 08-2003-PL-UBTVQH11 of 25 February 2003); 
- Ordinance on Procedure for Settlement of Economic Disputes of 1 July 1994; 
- Ordinance on Most-Favoured-Nation and Nati onal Treatment in International Trade of 
7 June 2002; 
- Law on Customs (Law No. 29-2001-QH10 of 29 June 2001); 
- Decree on Customs Procedures, Customs Inspection and Control, Making Detailed Provisions 
for Implementation of a Number of Articles of the Law on Customs (Decree No. 101-2001-ND-CP of 31 December 2001); 
- Decision No. 79/TCHQ-GQ of 14 June 1998 On Customs Procedure of Border Imports-
Exports; 
- Decision No. 50/1998/QD-TCHQ of 10 March 1998 of the Director General of the General 
Department of Customs on Handbook and Guideline on Customs Procedure 1995; 
- Decision No. 299/1998/QD-TCHQ of 12 Septem ber 1998 On Amendment and Addition to 
Instruction of the Customs Procedures for Import-Export of Goods (1998) (issued in conjunction with Decision No. 50/1998/QD- TCHQ of 10 March 1998 of the General 
Department of Customs); 
- Decision No. 287/TCHQ/KTTT of 19 December 1995 of Director General of the General 
Department of Customs on the Issuance of New Form of Customs Declaration for Import-Export Commodities; 
- Instruction No. 224/TCHQ-GSQL of 10 N ovember 1994 On Measures of Import-Export 
Inspection for Customs Superv ision and Management (1994); 
- Decision No. 189/TCHQ-GSQL of 7 October 1994  On Issuing Regulation On Inspection of 
Exported and Imported Goods (1994); 
- Regulations No. 296-TMDL/XNK of 9 April 1992 on the Issuance of Import-Export Business 
Permit; 
- Viet Nam's List of Effective Import Tariff (MFN Rates); 
- Ordinance on Levies and Fees of 30 August 2001; 
- Law on Export and Import Duties (1991) of 26  December 1991, as amended 16 January 1992 
and 5 July 1993; 
- Law on Export and Import Duties (1993) of 26  December 1991, as amended 16 January 1992 
and 5 July 1993; 
- Governmental Decree No. 54-CP of 28  August 1993 on Export-Import Duty (1993); 
- Law No. 02/1997/QH9 of 10 May 1997 on Value Added Tax; - Schedule of VAT on Imports (2003); - Law on Turnover Tax (1993) of 30 June 1990, as amended 5 July 1993; - Law on Special Sales Tax of 30 June 1990, as amended 5 July 1993 and 28 October 1995; 
- Circular No. 98-TC/TCP Providing Guidance on the Implementation of Governmental Decree 
No. 97/CP of 27 December 1995 which provides detailed provisions for the implementation 
of the Law on Special Sales Tax and the Law on the Amendments of and Additions to a 
number of Articles of the Law on Special Sales Tax; 
- Detailed Guidance on the Application of Speci al Sales Tax (1995) (Appendix attached with 
Circular of the Ministry of Finance No. 98-TC/TCP of 30 December 1995); 
- Special Consumption Tax Schedule for Imports (with HS Code reference); 
- List of the Commodities Banned from Export and Import in 1997 (Decision of the Prime 
Minister No. 28-TTg of 13 January 1997); 
- Decision of the Prime Minister No. 28-TTg of 13 January 1997 on Import-Export 
Management Policy (1997); WT/ACC/SPEC/VNM/4/Rev.1 
Page 118  
 
- Circular of the Ministry of Trade No. 02-TM/XNK of 21 February 1997 Guiding the 
Implementation of Decision No . 28-TTg of 13 January 1997; 
- Decree No. 89 of 4 April 1996 on Revoking the Procedures for Granting Export or Import 
Permits for Each Consignment; 
- Decision of the Prime Minister No. 864-TTg of 30 December 1995 Regarding the Policy on 
Commodities and the Regulation on Import-Export in 1996; 
- Regulations of the Ministry of Commerce and Tourism No. 297-TMDL-XNK of 9 April 1992 
on Export-Import Licence; 
- List of Second Hand Consumer Goods Subject to Import Prohibition (issued together with 
Circular 11/2001/TT-BTM of 18 April 2001 of the Ministry of Trade); 
- Decree on Prescribing the Determination of Tax Calculation Values of Imported Goods 
According to the Principles of the Agreement Implementing Article VII of the GATT (Decree 
No. 60/2002/ND-CP of 6 June 2002); 
- Decision No. 155/1998/QD-TTg of 27 May 1998 On Issuing the Regulations On 
Determination of Dutiable Va lue of Imports and Exports; 
- Decision No. 590A/QD/BCT of 29 April 1998 On  Promulgation of the Table of Dutiable 
Values; 
- Regulation No. 192/TCHQ/KTTH of 15 May 199 5 On Promulgating Application of Dutiable 
Value of Goods for Import and Export Duties (1998); 
- Decision No. 918-TC/QD/TCT of 11 November 1997 on the Promulgation of the Minimum 
Purchase Price Table at Border Gates for Import Duty Calculation; 
- Ordinance on Safeguards in the Import of Foreign Goods into Viet Nam 
(No. 42/2002/PL-UBTVQH10 of 1 September 2002); 
- Ordinance on Safeguard Measures of 7 June 2002; - Ordinance on the Quality of Goods of 27 December 1990; - Ordinance on Weights and Measures (1990) of 16 July 1990; 
- Order No. 20/2003/L-CTN Promulgating the Or dinance on Food Hygiene and Safety (passed 
on 26 July 2003) of 7 August 2003; 
- Decision No. 1091/1999/QD-BKHCNMT Promulgating the Regulation on the State Control 
of Import-Export Goods Quality of 22 June 1999; 
- Ordinance on Veterinary Activities (1993) of 27 November 1993; - Decision No. 389 NN-TY/QD of 15 April 1995 On Promulgating the Regulation On 
Procedures for Animal Quarantine, Veterinary  Control for Animal Slaughtering, Animal 
Products and Hygienic Inspection (1995); 
- Veterinary Quarantine and Inspection Subject s List Attached to Decision No. 607 NNTY/QD 
of 9 June 1994 by the Minister for Agriculture and Food; 
- Ordinance on Plant Protection and Inspection of 25 July 2001; 
- Decree on Tendering (Decree No. 88-1999-ND-CP of 1 September 1999, amended on 
5 May 2000); 
- Decree on Amendments and Additions to a Nu mber of Articles of the Regulations on 
Tendering Issued with Decrees of the Govern ment No. 88-1999-ND-C P Dated 1 September 
1999 and No. 14-2000-ND-CP Dated 5 May 2000 (Decree No. 66-2003-ND-CP of 12 June 2003); 
- Decree No. 43/CP of 16 July 1996 on Procurement; 
- Part VI of the Civil Code – Intellectual Property Rights and Technology Transfer; - Decree No. 63/CP of October 1996 on Detaili ng the Regulations on Industrial Property; 
- Governmental Decree on Detailed Regulations  Concerning Industrial Property (Decree 
No. 63/CP of 24 October 1996, amended and supplemented by Governmental Decree 
No. 06/2001/ND-CP of 1 February 2001); 
- Circular No. 3055-TT/SHCN (1996) of 31 Dece mber 1996 Guiding the Implementation of the 
Regulations on the Procedures for Establishi ng Industrial Property Rights and Other 
Regulations in Decree No. 63/CP;  WT/ACC/SPEC/VNM/4/Rev.1 
 Page 119 
 
 
- Decree on Amendment and Addition of a Number of Articles of Decree 63-CP of the 
Government Dated 24 Octobe r 1996 on Industrial Property (Decree No. 06-2001-ND-CP of 
1 February 2001); 
- Circular No. 23-TC/TCT dated 9 May 199 7 Guiding the Collection, Payment and 
Management of Industrial Property Service Charges and Fees; 
- Decree on Penalties for Administrative Offences  in Relation to Industrial Property (Decree 
No. 12-1999-ND-CP of 6 March 1999); 
- Ministry of Science, Technology and E nvironment's Circular No. 825/2000/IT-BKHCNMT 
of 3 May 2000, as Amended and Supplemented by the Ministry's Circular No. 49/2001/TT-BKHCNMT of 14 September 2001, Guides the Implementation of Decree 
No. 12/1999/ND-CP of 6 March 1999 on the Handling of Administrative Violations in the 
Field of Industrial Property; 
- Decree on Copyright Providin g Guidelines for the Implementation of a Number of the 
Provisions of the Civil Code with Respect to Copyright (Decree No. 76-CP of 29 November 1996); 
- Decree on the Protection of New Plant Varieties; 
- Circular on the Implementation of G overnment Decree No. 13/2001/ND-CP Dated 
20 April 2001 on the Protection of New Plant Varieties; 
- Decree on Protection of Industrial Property Rights with Respect to Trade Secrets, 
Geographical Indications and Trade Names and Pr otection of Rights to Fight Against Unfair 
Competition Relating to Industrial Property (Decree No. 54-2000-ND-CP) of 3 October 2000; 
- Ordinance on Advertisement of 16 November 2001; 
- Ordinance on Post and Telecommunication of 7 June 2002; - Law on Insurance Business of 9 December 2000; - Decree No. 64-CP dated 9 October 1995 On Or ganization and Operation of Finance Leasing 
Companies; 
- Circular No. 03-TT-NH5 dated 9 February 1996 On Finance Leasing Companies (providing 
guidelines for the implementation of the tempor ary regulations on orga nization and operation 
of finance leasing companies in Viet Nam); 
- Ordinance on Lawyer Organization of 25 July 2001; - Decree No. 42-CP dated 8 July 1995 On Lega l Consultancy Practices of Foreign Law Firms 
in Viet Nam; 
- Circular No. 791-TT-LS-TVPL dated 8 Septembe r 1995 On Foreign Law Firms (providing 
guidelines for the implementation of the Regulati ons on legal consultancy practices of foreign 
law firms in Viet Nam); 
- Decree on Management, Provision and Use of Internet Services (Decree No. 55-2001-ND-
CP); 
- Decree on Dealing with Administrative Offences in the Sector of Culture and Information 
(Decree No. 31-2001-ND-CP of 26 June 2001); 
- Decree on Cinematographic Organizations a nd Activities (Decree No. 48-CP of 17 July 
1005); 
- Decree on Amendment and Addition to Decree 48- CP of the Government Dated 17 July 1995 
on Cinematographic Organizations and Activities (Decree No. 26-2000-ND-CP); 
- Ordinance on the Conclusion and Implementa tion of International Treaties (1989) of 
17 October 1989; 
- Decree No. 18-CP of 4 April 1996 of the Government Issuing the List of Commodities and 
Import Tariffs in Implementing the Programme  of Reducing Tariffs on Goods Imported from 
the European Communities in the years 1996-1997;  
- Import-Export Statistics for 1997;  and 
- Ordinance on Entry, Exit, Residence and Travel of Foreigners in Viet Nam of 28 April 2000.  
 WT/ACC/SPEC/VNM/4/Rev.1 
Page 120  
 
Table 1(a):  Differential Price Surcharges Collected on Imported Goods
 
 
No HS Code Description of goods Rate of payable price 
differentials (%) 
1 2917.32.00 Dioctyl orthophthalates  5 
2 Ex. 4804 Paperboards and flat cartons used for packing, having  
a maximum horizontal pressure resistance of 
3 kgf/cm2 and vertical pressure resistance of 14 kgf 10 
3 6910.10.00 
6911.90.00 Sanitary ceramic wares  20 
20 
4 6910.10.00 
 
7013.10.00 
7013.29.00 
7013.32.00 7013.39.00 
7013.99.00 Drinking glasses, cups and kitchenware of porcelain 
or china Drinking glasses, cups and kitchenware of glass other 
than of lead crystal 
 20 
 
20 
20 
20 20 
20 
5 8414.51.00 Table, floor, ceiling, wall and roof fans of a power 
below 100W 20 
6 7012.00.00 
 
 
9617.00.10 Glass inners for commonly-used vacuum flasks of a 
capacity not exceeding 2.5 litre  
Commonly-used vacuum flasks of a capacity not 
exceeding 2.5 litre, other than piston vacuum flasks and  self-boiling vacuum flasks) 30 
 
 
40 
7  Welded and zinc-galvanized pipes and tubes in steel 10 
8  Bars and rods in steel CT3, not further worked, 
reinforced bars and rods in steel CT5 10 
9  Steel sheets CT3 and CT3C  4 
10  PVC powder 5 
11 4802.51.10 
4802.52.10 
4802.60.10 
4823.51.10 4823.59.10 Uncoated printing paper, writing paper 10 
10 
10 
10 10 
12 6810.11.00 
6810.19.10 
6910.19.90 6904.10.00 
6904.90.00 
6907.10.00 6907.90.00 
6908.10.00 
6908.90.00 Ceramic and granite flooring tiles not exceeding 400 
x 400 mm and those kinds of which either side is 
400mm or less 10 
10 
10 10 
10 
10 10 
10 
10 
13 2523.10.00 Clinker 10 
14 7003.12.00 
7003.19.90 
7004.20.90 
7004.90.90 
7016.90.00 Light brown sheet glass of a thickness between 5mm 
and 12 mm; dark green sheet glass of a thickness 
between 3mm and 6 mm; white (transparent) and flat 
sheet glass of a thickness between 1.5mm and 12 mm 
(not including flower-worked glass, multi-layer glass, 
safety glass, wired glass,  glass having reflecting layer) 10 (as from 1 January 2002) 
10 (as from 1 January 2002) 
10 (as from 1 January 2002) 
10 (as from 1 January 2002) 
10 (as from 1 January 2002) 
15 7213.10.10 
7214.20.20 Bars and rods of steel for construction in wound or 
twisted coils (containing indentations, ribs, grooves), 
measuring from 10-40mm in diameter 10 (as from 1 January 2002) 
10 (as from 1 January 2002) 
16 7214.10.20 
7214.99.00 
7215.50.90 
7215.90.90 Bars and rods of steel for construction, not further 
worked, measuring from 6-40mm in diameter 10 (as from 1 January 2002) 
10 (as from 1 January 2002) 
10 (as from 1 January 2002) 
10 (as from 1 January 2002)  WT/ACC/SPEC/VNM/4/Rev.1 
 Page 121 
 
 
No HS Code Description of goods Rate of payable price 
differentials (%) 
17 7216.50.10 
7216.50.90 V angle sections of steel of a height of 20-125mm; C-
shaped sections of steel of a height not exceeding 
160mm 10 (as from 1 January 2002) 
10 (as from 1 January 2002) 
18 7216.21.00 
7216.40.10 L angle sections of steel of a height of 20-125mm 10 (as from 1 January 2002) 
10 (as from 1 January 2002) 
19 7216.10.00 
7216.31.10 
7216.31.90 U-shaped sections of steel  of a height not exceeding 
160mm 10 (as from 1 January 2002) 
10 (as from 1 January 2002) 
10 (as from 1 January 2002) 
20 7216.10.00 
7216.32.10 
7216.32.90 I-shaped sections of steel of a height not exceeding 
160mm  10 (as from 1 January 2002) 
10 (as from 1 January 2002) 
10 (as from 1 January 2002) 
21 7216.10.00 
7216.33.10 7216.33.90 H-shaped sections of steel  of a height not exceeding 
160mm 10 (as from 1 January 2002) 
10 (as from 1 January 2002) 10 (as from 1 January 2002) 
22 7210.41.10 
7210.49.10 
7210.61.10 7210.69.10 
7210.70.40 
7210.70.50 7210.70.90 
7210.90.40 
7210.90.50 Flat-rolled steel, zinc-galvanized, of a thickness of 
0.25-0.55mm and length  not exceeding 3500mm; 
flat-rolled steel, zinc-gal vanized, corrugated; flat-
rolled steed, galvanized with non-ferrous metals, 
corrugated 10 (as from 1 January 2002) 
10 (as from 1 January 2002) 
10 (as from 1 January 2002) 10 (as from 1 January 2002) 
10 (as from 1 January 2002) 
10 (as from 1 January 2002) 10 (as from 1 January 2002) 
10 (as from 1 January 2002) 
10 (as from 1 January 2002) 
 
 
Table 1(b):  Differential Price Surcharges Collected on Exported Goods  
 
No HS Code Description of goods Rate of payable price 
differentials (per cent) 
1  Raw cashew nuts for export 10 
2  Unprocessed rubber latex for export 6 
 
 WT/ACC/SPEC/VNM/4/Rev.1 
Page 122  
 
 
Table 2:  Customs fees levied in accordance with 
 
Inter-Ministerial Circular No. 71/2000/TTLT/BTC-TCHQ of 19 July 2000  
of the Ministry of Finance and the General Department of Customs  
 
Customs Clearance Fee 
No. Kind of goods Calculation unit Fee rates 
(VND) 
I Ordinary cargo: 
1 Cargo transported by ships, barges (bulk goods, goods of 
different sorts contained in bags, cans, drums, barrels, tanks, 
reservoirs)   
-  Minimum fee rate for 1 ton or less VND/ton 20,000 a. 
-  Fee rate for the second ton onwards VND/ton 1,200 
Goods transported by ships (goods of the same sort): fee rate 
per ton VND/ton 500 
Maximum customs clearance fee rate for:   
-  Ships of a capacity of less than 10,000 GRT (Gross 
registered tonnage) Ship Not exceeding 
3 million 
-  Ships of a capacity of be tween 10,000 and less than 
20,000 GRT Ship Not exceeding 
6 million 
-  Ships of a capacity of be tween 20,000 and less than 
70,000 GRT Ship Not exceeding 
15 million b. 
-  Ships of a capacity of 70,000 GRT or more Ship Not exceeding 
20 million 
2 Goods transported by land 
a. -  Goods transported by car VND/ton 5,000 
b. -  Goods transported by train VND/ton 2,000 
Postal packages, parcels 
-  Of a weight of between 5 kg and less than 20 kg VND/clearing case 7,000 
-  Of a weight of between 20 kg and 50 kg VND/clearing case 10,000 
-  Of a weight of more than 50 kg, for every extra 10 kg a 
surcharge shall be collected VND/10 kg 500 3 
-  Of a weight of 1 ton or more, a surcharge shall be 
collected VND/ton 3,000 
II Cargo contained in containers 
1 Cargo contained in 20-feet containers VND/container 60,000 
2 Cargo contained in 40-feet containers VND/container 120,000 
III Cargo being automobiles and motorcycles of all kinds 
Automobiles of all kinds 
-  Automobiles in complete units VND/unit 18,000 1 
-  Automobile components in complete sets VND/set 20,000 
2 Motorcycles (units and complete sets) VND /unit or set 6,000 
Cargo being gold and gemstone 
-  Fee rate for 1 tael (37.5 gr ) or less VND/clearing case 15,000 
-  Fee rate for the second tael (37.5 gr) onwards VND /tael 1,000 IV 
-  Maximum fee rate for each clearance case  Not exceeding 
1.5 million 
Import and export of foreign currencies 
-  Import, export of less than US$100,000 (or equivalent 
amounts of other foreign currencies) VND 100,000 
-  For every extra US$100,000, a surcharge shall be 
collected VND 80.000 V 
-  Maximum rate for each clearance case VND Not exceeding 
1.5 million  WT/ACC/SPEC/VNM/4/Rev.1 
 Page 123 
 
 
Customs Clearance Fee 
No. Kind of goods Calculation unit Fee rates 
(VND) 
Fees For Goods and Luggage Consigned and Put at Customs Warehouses  
(Customs Warehouse Fee) 
Automobiles of all kinds 
-  Trucks of a capacity of 2 tons or more, passenger cars 
with 15 seats or more Unit 50,000 1  
-  Trucks of a capacity of less than 2 tons, tourist cars with 
14 seats or less Unit 30,000 
2 Motorcycles, mopeds Unit 10,000 
3 Computers, fax machines, photocopiers Unit 10,000 
4 Air-conditioners, radios, cassettes, communication machines, 
television sets, video sets Unit 5,000 
5 Gold Tael (37.5 gr) 7,000 
6 Gemstone Tael 10,000 
7 Other goods 
a. Small postal parcels of a weight of less than 20 kg Parcel 2,000 
b. Small postal parcels of a weight of between 20 kg and 100 kg Parcel 4,000 
c. Goods packages of a weight of between more than 100 kg and 
1,000 kg Package 5,000 
d. Goods packages of a weight of more than 1,000 kg Package 10,000 
Administrative Fee 
Free rate for re-certifica tion of cargo, luggage documentation Case 12,000 
Note:  Transit and transit-related fees ar e enumerated in Table 13(a) and 13 (b). 
 
 WT/ACC/SPEC/VNM/4/Rev.1 
Page 124  
 
Table 4:  Viet Nam's Non-Tariff Measures (April 2004)
 
 
HS Description Rationale Note 
1207 91 00 Poppy seeds Materials for  
production of 
opium   
1302 11 00 Opium, anhydrous morphine anhydrous content   Materials for  
production of 
opium  
2402,  
2403 Tobacco, cigarettes, and other kinds of 
manufactured tobacco  Limit the 
consumption of cigarettes.  Import prohibition 
to be abolished upon accession   
2618 00 00 Granulated slag (slag sand) from the manufacture 
of iron or steel Residues causing 
environmental 
pollution   
2619 00 00 Slag, dross (other than granulated slag), scalings 
and other waste from the manufacture of iron 
orngs steel Residues causing 
environmental 
pollution   
2620 Ash and residues (other than from the manufacture 
of iron or steel) containing metals or metal compounds Residues causing 
environmental pollution   
2621 00 00 Other slag and ash, including seaweed ash (kelp) Residues causing 
environmental 
pollution   
3601 00 00 Propellant powders Materials for 
production of 
explosives   
8710 00 00 Tanks and other armored fighting vehicles, 
motorized, whether or not fitted with weapons, 
and parts of such vehicles Military equipment   
ex 8711 Motorcycles of a cylinder capacity exceeding 
175cc Security and traffic 
safety  
9301 00 00 Military weapons, other than revolvers, pistols and 
the arms of heading 307: revolvers, pistols Military equipment    
9302 00 00 Revolvers and pistols, other than those of heading 
9303 or 9304 Weapons  
9304  Other arms (for example, spring, air or gas guns       
and pistols, truncheons), excluding those of heading 9307 Weapons   
9305 Parts and  accessories of  articles of headings 9301 
to 9304 Weapons   
9306 Bombs, grenades, torp edoes, mines, missiles and 
similar munitions of war and parts thereof;  cartridges and other ammunition and projectiles 
and parts thereof, including shot and cartridge 
wads Weapons   
9307 Swords, cutlasses, bayonets, lances and similar         
arms and parts thereof and scabbards and sheaths 
thereof Weapons   
NA Second-hand consumer goods, including: 
- Textiles and clothes; footwear 
- Electronic goods 
- Refrigerating equipment and products - Household electric goods 
- Furniture 
- Household goods made from porcelain, clay, glass, metal, resin, rubber, plastic, and other 
materials  Product safety   WT/ACC/SPEC/VNM/4/Rev.1 
 Page 125 
 
 
HS Description Rationale Note 
NA Used materials and e quipment, including: 
- Used machines, structures, inner tires, tires, accessories, motors of au tomobiles, tractors, 2-
wheel and 3-weel motorbikes  
- Internal combustion engines and machines with 
internal combustion engines having capacity 
below 30 CV  - Bicycles, 2-wheel and 3-wheel vehicles; 
- Passenger cars of less than  16 seats, trucks with 
loading capacity of less than 5 tons, ambulances.  Traffic safety  
NA Toxic chemicals  
List published by the Ministry of Industry  Environment 
protection, 
protection of human 
health   
NA Garbage and waste materials which may cause 
environmental pollution and epidemics  
List published by the Ministry of Science and 
Technology Environment 
protection, 
protection of human 
health   
NA Depraved and reactionary cultural products  Public morals   
NA Children toys having adverse effect in moral 
education, public order and security  Public morals & 
social security  
NA Narcotics  Protection of 
human life  
NA Firecrackers (excluding fire signal used for 
maritime safety and other purposes as stipulated by the Prime Minister in  the official Document 
No.1383/CP-KTTS dated 23/11/1998)  Protection of 
human health & life  
NA Right-hand steering vehicles (including their 
components and those modified to left-hand drive 
ones prior to importation into Viet Nam), except 
for specialized right-hand steering vehicles operating in small areas such as cranes, trench and 
canal digging machines, garbage trucks, road 
sweepers, road construction trucks, airport passenger transportation buse s, fork-lifts used at 
warehouses and ports.    Traffic safety  
NA Asbestos products and materials under amphibole 
group  Protection of 
human health  
NA Specialized encryption machines and encryption 
software subject to State secret National security  
 
Note :  NA Not applicable 
 
These products are not allowed to be  circulated in the domestic mark et on a normal commercial basis.  
Importation for non-commercial purposes might be permitted in exceptional circumstances. 
 WT/ACC/SPEC/VNM/4/Rev.1 
Page 126  
 
Table 4.1.a:  Import Prohibitions- Highly Toxic Chemicals
 
 
No.  Name of chemical s Formula Concentration 
1 Aldrin C 12H8Cl6  
2 BHC (lindane) C 6H6O6  
3 Chordane   
4 DDT   
5 Dieldrin   
6 Eldrin   
7 Heptachlor C 10H5Cl5  
8 Isobenzen   
9 Isodrin   
10 Methamidophos C 2H8NO 2PS  
11 Monocrotophos C 7H14NO 5P  
12 Methyl Parathion C 8H10NO 5PS  
13 Ethyl Parathion   
14 Phosphamidon   
15 Polychlorocamphere   
16 Strobane   
17 Captan   
18 Captofol   
19 Hexachlorobenzen C 6Cl6  
20 24,5 T (Brochtoc, Decamine)   
21 Axit cyanhydric and its salts HCN 0.0003 
22 Hexacloro cyclohexan C 6H6Cl6 0.0001 
23 Methyl parathion (demetil paranitro photpho, 
volfatoc...)  0.0001 
 
  WT/ACC/SPEC/VNM/4/Rev.1 
 Page 127 
 
 
 
No.  Name of chemicals 
1 O-Alkyl ( ≤ C10, including cycloalkyl), Alkyl (Me, Et, n-Pr or i-Pr) phosphonofluo-ridates 
2 O-Alkyl ( ≤ C10, including cycloclkyl), N,N-dialkyl (Me, Et, n-Pr or i-Pr) phospho-ramidocyanidates 
3 O-Alkyl (H or C,10, including cyclolkyl), S-2-dialyl (Me, Et, n-Pr or i-Pr)-amincethyl alkyl (Me, Et, n-
Pr or i-Pr) phosphonothiolates and respective alkylat or protonat salts 
4 Sulfur mustards: 
2-Chloroethylchloromethylsulfide, (2625-76-5) 
Mustard gas: Bis(2-chloroethyl) sulfide, (505-60-2),Bis(2-chloroethylthio) methane, (63869-13-6) 
Sesquimustard: 1,2-Bis(2-chloroethylthio)ethane, (3563-36-8) 
1,3-Bis(2-chloroethylthio)-n-propane, (63905-10-2) 
1,4-Bis(2-chloroethylthio)-n-butane, (142868-93-7) 1,5-Bis(2-chloroethylthio)-n-pentane, (142868-94-8) 
Bis(2-chloroethylthiomethyl) ether, (63918-90-1) 
O-Mustard: Bis(2-chloroethylthioethyl) ether, (63918-89-8) 
5 Lewisites: 
Lewisite 1: 2-chlorovinyldichloroarsine, (541-25-3) 
Lewisite 2: Bis(2-chlorovinyl)chloroarsine, (40334-69-8) 
Lewisite 3: Tris(2-chlorovinyl)arsine, (40330-70-1) 
6 Nitrogen mustards: 
HN1: Bis(2-chloroethyl) ethylamine, (538-07-8) 
HN2: Bis(2-chloroethyl) methylamine, (51-75-2) HN3: Tris(2-chloroethyl) amine, (555-77-1) 
7 Saxitoxin, (35523-89-8) 
8 Ricin, (9009-86-3) 
9 Alkyl (Me, Et, n-Pr or i-Pr) phosphonyldifluorides 
10 O-Alkyl (H or ≤ C10, including cycloalkyl) 0-2-dialkyl (Me, Et, n-Pr or i-Pr)-aminoethyl alkyl (Me, 
Et, n-Pr or I-Pr) phosphonites and respective alkylat or protonat salts 
11 Chlorasine: O-Isopropyl methylphosphonochloridate, (1445-76-7) 
12 Chlorosoman: O-Pinacolyl ethylphosphonochloridate, (7040-57-5) 
13 Amiton: O,O-Diethyl S-[2-(diethylamino)ethyl] phosphorothiolate, (78-53-5) and respective alkylat or 
protonat salts 
14 PFIB: 1,1,3,3,3-Pentafluoro-2-(trifluoromethyl)-1-propene, (382-21-8) 
15 BZ: 3-Quinuclidinyl beilate, (6581-06-2) 
16 Methylphosphonyl dichloride, (676-97-1), Dimethyl methylphosphonate, (756-79-6) 
17 N,N-Dialkyl (Me, Et, n-Pr or i-Pr) phosphoramidic dihalides 
18 Diakyl (Me, Et, n-Pr or i-Pr) N,N-dialky l (Me, Et, n-Pr or i-Pr)phosphoramidates 
19 2,2-Diphenyl-2-hydroxyaxetic acid, (76-93-7) 
20 Quinuclidine-3-ol, (1619-34-7) 
21 N,N-Dialyl (Me. Et, n-Pr or i-Pr) aminoethyl-2-ols and respective protonat salts 
23 N,N-Dialyl (Me. Et, n-Pr or i-Pr) aminoe thane-2-thiols and respective protonat salts 
24 Thiodiglycol: Bis (2-hydroxyethyl) sulfide, (111-48-8) 
25 Pinacolyl alcohol: 3,3-Dimethylbutane-2-ol, (464-07-3) 
26 Phosgene: Carbonyl dichloride, (75-44-5) 
27 Chloropicrin: Trichloronitromethane, (76-06-2) 
 WT/ACC/SPEC/VNM/4/Rev.1 
Page 128  
 
Table 4.1.b:  Import allowed conditionally -
  
Toxic Chemicals and Products Containing Toxic Chemicals  
No.  Name of chemical s Formula Concentration 
1 Acetonitril CH 5-CN  
2* Anilin C 6H7-N  
3* Benzene C 6H6  
4 Choloroform CHCl 3  
5* Furfurol C 5H4O2  
6 n-Hexan CH 3(CH 2)4CH 3  
7 Piridin C 5H5N  
8 Carbon tetra chloro CCl 4  
9* Tuluen C 7H8  
10* Ethylen Glycol CH 2OH-CH 2OH  
11* n-Butanol CH 3(CH 2) 2CH 2OH  
12* Aldehyd acetic CH 3CHO  
13* IsoPropanol CH 3CHOHCH 3  
14* Asbestos raw material   
15* Selen and selen compounds Se  
16* Cadmium and cadmium compounds Cd  
17 Thallium Tl  
18* Xylen C 6H4(CH 3) 2  
19* Acid Pechloric HClO 4  
20 Acrolein CH 2=CH-CHO +0.002 
21* Amoniac NH 3NH 4OH +0.002 
22 Anhydric acsenio and anhydrit acsenic  
(asen pentoxide) As2O3 
As2O5 +0.0003 
23 Acsenua hydrogen AsH 3 +0.0003 
24* Anhydrit carbonic CO 2 0.1 per cent mg/l 
25* Anhydrit cromic CrO 3 0.0001 mg/l 
26* Anilin C 6H5-NH 2 0.005 
27* Antimony Sb 0.0005 
28* Hydrochloric acid and hydrochlorua  
(calculated as hydrochlorua) HCl 0.010 
29* Acid nitric (calculated as N 2O5) HNO 3 0.005 
30* Acid acetic CH 3COOH 0.005 
31 Cyanhydric calculated as HCN   
32* Acid sulfuric and anhydrit sulfuric H 2SO 4 0.002 
33* Acid phosphoric H 3PO 4  
34* Acid picric C 6H3K8O7  
35* Bary oxide containing 10 per cent free SiO2 BaO 0.005 
36* Bary + dissolvable compound  (Ba)  
37* Benzidin C 12H22N2 0.001 
38* Brom Br 2 1 ml/m3 
39* Bromua metyl Br-CH 3 10 ml/m3 
40* Bromofoc CHBr 3  
41* Bicromat alkali Cr 2O7-(NaK) 0.0001 
42* Lead and inorganic compounds of lead  Pb 0.00001 
0.0001 
43* Chlorine Cl 2 0.050 
44* Chlorinebenzene C 6H5Cl 0.001 
45 Chlorinediphenyl  0.0005 
46 Chlorine oxydiphonyl  0.001 
47 Chlorinenaphtaline (trichlorinenaphtalin) C 10H7Cl 0.005 
48 High level tetra and pentanaphtalin mixture    
49 Chlorineropren CH 2=CH-CCl=OH 2 0.002 
50 Chlorinepycrin CC 3NO 2 20 mg/m3 60 mg/m3  WT/ACC/SPEC/VNM/4/Rev.1 
 Page 129 
 
 
No.  Name of chemical s Formula Concentration 
51* Limestone chlorinerua (calculating as Cl) CaCl 2 0.001 
52* Metylic spirit CH 3OH 0.050 
53* Dimetyl amin (CH 3) 2NH 0.001 
54 Dimetyl focmanit  CH 3 HCO-N < CH 3 0.001 
55 Dichlorinebenzene C 6H4C12  
56 Dinitrochlorinebenzene (NO 2) 2 C6H3  < Cl 0.001 
57 Dinitrotoluen (NO 2) 2C6H3-CH 3 0.001 
58 Dinitrobenzene and identicals   
59 Dioxide Chlorine ClO 2 0.0001 
60* Copper (salt)  0.00005 
61 Etyl mercury phosphate  0.00005 
62* Focmaldehyt HCHO 0.005 
63 Etyl mercury chlorinerua   
64* Florua hydrogen FH 0.0005 
65 Salt of acid flohydric (calculating as HF) FH 0.0005 
66 Salt of acid flohydric (calculating as HF)  0.001 
67 Florosilicat metal dissolved and undissolved   
68 Hexachlorinero cychlorinehexan  0.00005 
69* Isome (gamma)   
70 Hydrazin and derivatives  0.0001 
71 Isopropylnitrat C 3H7NO 2 0.005 
72* NaOH gas, KOH gas   
73* Mangan and mangan compounds (calculating 
as MnO 2) MnO 2 0.0003 
74* Metaldehyl   
75 Nitrobenzene and its compounds C 6H5NO 2 0.005 
76 Nitrochlorinebenzene Cl C 6H4 < NO 2 0.001 
77 Nicotin  0.0005 
78 Metal nitrit NO 2  
79 Ozon O 3 0.0001 
80* Oxide carbon CO 0.030 
81* Oxide etylen  0.001 
82* Oxide zinc ZnO 0.005 
83* Oxide nito, calculating as N2O5 N 2O, NO, NO 2, N 2O3, 
N2O5 0.005 
84* Oxide niken NiO 0.005 
85 Oxide iron including fluo and mangan 
compound  0.004 
86 Photpho white (sesquisulfur phesphore) P 4 0.0003 
87 Photphotrichlorinerua compound  0.00005 
88 Photphua hydrogen PH 3 0.0003 
89 Photphua metal  0.15-0.30g 
90* Photphorit (ore of under 10 per cent free SiO2)  0.0005 
91 Photgen COCl 2 0.0005 
92* Phenol C 6H5OH 0.005 
93 Photphat dietyl C 10H14NO 5PS 0.00005 
94 Paranitropheny  5mg/kg 
95 (Pration, thiophot)  (insecticide) 
96 Sunfur lead PbS 0.0005 
97 Sunfua carbon SC 2 0.010 
98 Sunfua hydrogen H 2S 0.010 
99* Tetrachlorinerua carbon CCl 4 0.050 
100 Tetrachlorineheptan  0.001 
101 Tetra etyl lead Pb(C 2H5) 4 0.000005 
102 Tetra nitrometan CH 3(NO 2) 4 0.00003 
103 Metal mercury and mercury inorganic Hg 0.00001 WT/ACC/SPEC/VNM/4/Rev.1 
Page 130  
 
No.  Name of chemical s Formula Concentration 
compound, excluding HgC12 (sublime) 
104 Mercury (II)   
105 Chlorinerua (sublime) HgCl 2 0.0001 
106 Trinitro chlorinebenzene  0.001 
107 Trichlorineetylen  0.001 
108 Trichlorineetylen C 2H3Cl3 0.050 
109 Trinitrobenzene and its compounds C 6H3(NO 2) 3 0.001 
110 Toluen dihydrogenxyanat  0.0005 
111 Nitro Toluen CH 3-C6H4-NO 2 0.003 
112 Tetraetyl C 10H20N2S4  
 
No.  Name of chemicals 
1 Phosphorus oxochloride, (10025-87-3) 
2 Phosphorus trichloride, (7719-12-2) 
3 Phosphorus pentachloride, (10026-13-8) 
4 Trimethyl phosphite, (121-45-9) 
5 Triethyl phosphite, (122-52-1) 
6 Dimethyl phosphite, (868-85-9) 
7 Diethyl phosphite, (762-04-9) 
8 Sulfur monochloride, (10025-67-9) 
9 Sulfur dichloride, (10545-99-7-0) 
10 Thionyl chloride, (7719-09-7) 
11 Ethyldiethanolamine, (139-87-7) 
12 Methyldiethanolamine, (105-59-9) 
13 Triethanolamine, (102-71-6) 
14 Asen and asen compounds 
15 Cyanide compounds 
16 PCB (Polychlorinated biphenyls) and PCB-containing compounds 
17 Mercury and mercury-containing compounds 
 
 
   WT/ACC/SPEC/VNM/4/Rev.1
 Page 131Table 5:  Products subject to import licensing (as of 1 May 1997)  
 
No.  Name of items Licensing competence Licen sing purpose Related legal documents Note 
A. Import Prohibited Goods 
     Some of the banned goods shall 
still be imported if permitted by 
the Prime Minister (PM). 
1 Weapons, ammunition, explosives, 
technical milita ry equipment Prime Minister 
(PM) National security  Decision No. 28/TTg dated  
13 January 1997 by PM Only allowed to meet 
requirements of security and military 
2 Toxic chemicals PM Environment 
protection, 
protection of human health and fauna, 
flora life  Decision No. 28/TTg dated  
13 January 1997 by PM Possibly permitted by PM in 
cases of serving agricultural 
production 
3 Second-hand consumer goods PM Environment 
protection, protection of human 
health and fauna, 
flora life  Decision No. 28/TTg dated  
13 January 1997 by PM Possibly permitted by PM in 
cases of humanitarian aid. 
4 Used spare parts of automobiles, 2-wheel 
and 3-wheel motorbikes PM Traffic safety Decisi on No. 28/TTg dated  
13 January 1997 by PM Prohibition shall be absolutely 
applied to this group, excluding 
used motorbike tyres which may be considered for import 
by  the PM. 
B.   Products Subject to Licen ce of the Ministry of Trade 
1 Explosives for purpose of agricultural 
production MOT National security  Decision No. 28/TTg dated 
13 January 1997   
2 Petroleum and petroleum products MOT Management in 
terms of demand and 
supply  Decision No. 28/TTg dated 
13 January 1997 
Circular No. 01/TM-XNK dated 24 January 1997 and No. 02/TM-
XNK dated 21 February 1997 by 
MOT  
3 Fertilizer MOT Management in 
terms of demand- 
supply  Decision No. 28/TTg dated 
13 January 1997 
Circular No. 01/TM-XNK dated 
24 January 1997 and No. 02/TM-XNK dated 21 February 1997 by 
MOT   WT/ACC/SPEC/VNM/4/Rev.1 
Page 132 No.  Name of items Licensing competence Licen sing purpose Related legal documents Note 
4 Some kinds of steel and steel billets MOT Management in 
terms of demand- 
supply Decision No. 28/TTg dated 
13 January 1997 
Circular No. 01/TM-XNK dated 24 January 1997 and No. 02/TM-
XNK dated 21 February 1997 by 
MOT  
5 Cement and clinker MOT Management in 
terms of demand- 
supply Decision No. 28/TTg dated 
13 January 1997 
Circular No. 01/TM-XNK dated 
24 January 1997 and No. 02/TM-XNK dated 21 February 1997 by 
MOT  
6 Sugar MOT Management in 
terms of demand- supply Decision No. 28/TTg dated 
13 January 1997 Circular No. 01/TM-XNK dated 
24 January 1997 and No. 02/TM-
XNK dated 21 February 1997 by MOT  
7 White and clear  construction glass with 
thickness from over 3mm to under 12mm MOT Management in 
terms of quantity Decision No. 28/TTg dated 
13 January 1997 
Circular No. 01/TM-XNK dated 
24 January 1997 and No. 02/TM-
XNK dated 21 February 1997 by MOT  
8 Paper, toilet paper, cardboard, smooth 
carton, carton duplex MOT Management in 
terms of quantity Decision No. 28/TTg dated 
13 January 1997 
Circular No. 01/TM-XNK dated 24 January 1997 and No. 02/TM-
XNK dated 21 February 1997 by 
MOT  
9 Road freight vehicles and components in 
form of SKD and CKD1 MOT Creating a balance 
between the quantity 
of means of transport 
and infrastructures conditions Decision No. 28/TTg dated 
13 January 1997 
Circular No. 01/TM-XNK dated 
24 January 1997 and No. 02/TM-XNK dated 21 February 1997 by 
MOT  
10 Land transporting vehicles for passengers 
and components in form of SKD and CKD1 MOT Creating a balance 
between the quantity of means of transport 
and infrastructures 
conditions Decision No. 28/TTg dated 
13 January 1997 Circular No. 01/TM-XNK dated 
24 January 1997 and No. 02/TM-
XNK dated 21 February 1997 by 
MOT    WT/ACC/SPEC/VNM/4/Rev.1
 Page 133No.  Name of items Licensing competence Licen sing purpose Related legal documents Note 
11 Two-wheel and three- wheel and spare 
parts in form of SKD and CKD MOT Creating a balance 
between the quantity 
of means of transport and infrastructures 
conditions Decision No. 28/TTg dated 
13 January 1997 
Circular No. 01/TM-XNK dated 24 January 1997 and No. 02/TM-
XNK dated 21 February 1997 by 
MOT  
12 Bicycles MOT Quantitative 
restriction Decision No. 28/TTg dated 
13 January 1997 
Circular No. 01/TM-XNK dated 
24 January 1997 and No. 02/TM-XNK dated 21 February 1997 by 
MOT  
13 Electric fans MOT Quantitative 
restriction Decision No. 28/TTg dated 
13 January 1997 Circular No. 01/TM-XNK dated 
24 January 1997 and No. 02/TM-
XNK dated 21 February 1997 by MOT  
14 Separated machines of over US$100,000 
and complete equipment of over 
US$500,000 procured by State budget MOT Management in 
terms of demand and 
supply  Decision No. 28/TTg dated 
13 January 1997 
Circular No. 01/TM-XNK dated 
24 January 1997 and No. 02/TM-
XNK dated 21 February 1997 by MOT  
C.   Products Subject to Licen ce of the Line Ministries 
1 Some chemicals Ministry of Industry Quantitative 
restriction Decision No. 28/TTg and Circular 
No. 03 dated 26 March 1997 by Ministry of Industry  
2 Intermediate chemicals for production of 
toxic chemicals Ministry of Industry Protection of human 
health and fauna, 
flora life  Circular No. 03/TT-KHDT dated 
26 March 1997 by Ministry of 
Industry  
3 Unprocessed wood and forestry products Ministry of 
Agriculture and Rural 
development Contribution to 
environmental 
protection in the 
world Decree No. 89/CP dated 15 
December 1995 by the Government 
and Decision No. 28/TTg dated 13 
January 1997 by Prime Minister Imported wood from Cambodia 
must be permitted by PM 
4 Complete equipment for forestry 
production and wood processing industry  Ministry of 
Agriculture and Rural 
Development Management of 
quality and standards 
of imported breeds Decree No. 89/CP dated 15 
December 1995 by the Government Not applied to  separate 
equipment  WT/ACC/SPEC/VNM/4/Rev.1 
Page 134 No.  Name of items Licensing competence Licen sing purpose Related legal documents Note 
5 Animals and plants to be used as breeds 
and seeds in agriculture and forestry Ministry of 
Agriculture and Rural 
Development Management in 
terms of quantity of 
imported breeds Decree No. 89/CP dated 15 
December 1995 by the Government. 
Decree No. 07/CP dated 5 February 1996 by the Government. 
Circular No. 02/NN-KNKL/TT 
dated 1 March 1997 by Ministry of Agriculture and Rural development  
6 Flora protective chemicals and materials 
for production thereof Ministry of 
Agriculture and Rural 
Development Protection of 
environment, human 
health and fauna flora life Decision No. 28/TTg dated 
13 January 1997 by PM  
7 Veterinary medicines and materials for 
production thereof Ministry of 
Agriculture and Rural 
Development Protection of human 
health and fauna, 
flora life. Decision No. 28/TTg dated 
13 January 1997 by PM  
8 Feeder and materials for production of 
feeder Ministry of 
Agriculture and Rural 
Development Protection of human 
health and fauna, 
flora life Decree No. 89/CP dated 15 
December 1995 by the Government 
and Decision No. 28/TTg dated 13 
January 1997 by Prime Minister  
9 Pharmaceuticals, substances causing 
addiction,  
pre-substances. Ministry of Health Protection of human 
health Decree No. 89/CP dated 15 
December 1995 by the Government  
10 Some of health care machinery and 
equipment Ministry of 
 Health Protection of human 
health Decree No. 89/CP dated 15 
December 1995 by the Government  
11 Aqua-products to be used as breeds Ministry of 
Aquaculture Protection of human 
health and fauna, 
flora life Decree No. 89/CP dated 15 
December 1995 by the Government  
12 Some kinds of rare aqua-products Ministry of 
Aquaculture  Protection of human 
health and fauna, 
flora life Decree No. 89/CP dated 15 
December 1995 by the Government  
13 Medicines for aqua-culture cultivation Ministry of 
Aquaculture Protection of human 
health and fauna, flora life Decree No. 89/CP dated 15 
December 1995 by the Government  
14 Feeds for aqua-culture cultivation Ministry of 
Aquaculture Protection of human 
health and fauna, 
flora life Decree No. 89/CP dated 15 
December 1995 by the Government  
15 Radio transmitters, receivers,  and other 
radio emitting equipment, telephone 
exchanges General Department of 
Posts and 
Telecommunications Protection of 
national security and 
social order  Decree No. 89/CP dated 15 
December 1995 by the Government    WT/ACC/SPEC/VNM/4/Rev.1
 Page 135No.  Name of items Licensing competence Licen sing purpose Related legal documents Note 
16 Books and newspapers, pictures and 
photographs, other publications (except 
labels and catalogues) Ministry of Culture 
and Information  Maintenance of 
social ethics and 
protection of copyrights Decree No. 89/CP dated 15 
December 1995 by the Government 
Inter-ministerial Circular No. 26/TTLB dated 19 April 1994 
by Ministry of Culture and 
Information - Ministry of Trade  
17 Cinematographic works 
 Ministry of Culture 
and Information Maintenance of 
social ethics and 
protection of 
copyrights Decree No. 89/CP dated 15 
December 1995 by the Government 
Inter-ministerial Circular 
No. 26/TTLB dated 19 April 1994 by Ministry of Culture and 
Information - Ministry of Trade  
18 Programmed video tapes Ministry of Culture 
and Information Maintenance of 
social ethics and protection of 
copyrights Decree No. 89/CP dated 15 
December 1995 by the Government Inter-ministerial Circular 
No. 26/TTLB dated 19 April 1994 
by Ministry of Culture and Information - Ministry of Trade  
19 Special printing equipment Ministry of Culture 
and Information Protection of 
national security and 
social order  Decree No. 89/CP dated 15 
December 1995 by the Government 
Inter-ministerial Circular 
No. 26/TTLB dated 19 April 1994 
by Ministry of Culture and Information - Ministry of Trade  
20 Specialized banking equipment State Bank of Vietnam Protection of 
national security and 
social order  Decree No. 89/CP dated 15 
December 1995 by the Government.  
21 Materials and technologies concerning the 
manufacture and repair of weapons and 
military technical equipment Ministry of National 
Defence Protection of 
national security Decree No. 89/CP dated 15 
December 1995 by the Government.  
22 Military equipment and supplies Ministry of National 
Defence Protection of 
national security and social order Decree No. 89/CP dated 15 
December 1995 by the Government.  
23 Waste materials Ministry of Science, 
Technology and 
Environment Environment 
protection Inter-Ministerial Circular 
No. 2880/KCM-TM dated 19 
February 1996  
24 Humanitarian aid Ministry of Finance Management of 
humanitarian aid Decree No. 89/CP dated 15 
December 1995 by the Government   WT/ACC/SPEC/VNM/4/Rev.1 
Page 136 No.  Name of items Licensing competence Licen sing purpose Related legal documents Note 
25 Products relating to labour safety State Inspectorate in 
charge of labour safety 
under the Ministry of Labour, Invalids and 
Social Affairs Human protection Decree No. 06/CP dated 20 January 
1995 by the Government Inter-
Ministerial Circular No. 26/TTLB dated 3 October 1995 by Ministry of 
Trade - Ministry of Labour, Invalids 
and Social Affairs  
26 Mother's milk simulation products Ministry of Health Children's health 
protection Decision No. 307/TTg dated 10 June 
1994 by PM 
Inter-Ministerial Circular 
No. 18/TTLB dated 3 November 1994 Circular No. 07/BYT-TT dated 
18 April 1995 by Ministry of Health   WT/ACC/SPEC/VNM/4/Rev.1 
 Page 137 
 
 
 Table 5.1:  Products subject to line management (import licence by line Ministry)  
 
Code Description Office in charge 
Chapter 1 Live animals  
 Live horses  
0101.1110 -  Pure-bred breeding animals Agr 
 Live bovine animals  
0102.1010 -  Pure-bred breeding animals Agr 
 Live swine  
0103.10 -  Pure-bred breeding animals Agr 
 Live sheep  
0104.1010 -  Pure-bred breeding animals Agr 
 Live goats  
0104.2010 -  Pure-bred breeding animals Agr 
0105 Live poultry, that is to say, fowls of the species Gallus 
Domesticus, ducks, geese, turkeys and guinea fowls   
0105.10 -  Weighing not more than 185g:  
0105.1010 --  Fowls of species Gallus Domesticus  
 ---  Pure-bred breeding animals Agr 
0105.1090 Other:  
 --  Pure-bred breeding animals Agr 
0105.90 Weighing more than 185g:  
0105.9010 --  Fowls of species Gallus Domesticus  
 ---  Pure-bred breeding animals Agr 
0105.9090 Other:  
 --  Pure-bred breeding animals Agr 
0106.00 Other live animals  
0106.0010 -  Pure-bred breeding animals Agr 
Chapter 3 Fish and crustaceans, mollusc s and other aquatic invertebrates  
0301 Live fish  
0301.90 - Other live fish:  
0301.9010 --  Pure-bred breeding animals Aqu 
0301.93 -  Carp:  
0301.9310 --  Pure-bred breeding animals Aqu 
0301.99 -  Other:  
0301.9910 --  Pure-bred breeding animals  Aqu 
0306.00 Crustaceans, whether in shell or  not, live, fresh,  chilled, frozen, 
dried, salted or in brine; crus taceans, in shell, cooked by 
steaming or by boiling in water, whether or not chilled, frozen, 
dried, salted or in brine; flours, meals and pellets of crustaceans, fit for human consumption  
0306.0010 --  Pure-bred breeding animals Aqu 
0307.00 Molluscs, whether in shell or not, live, fresh, chilled, frozen, 
dried, salted or in brine;aquatic invertebrates other than 
crustaceans and molluscs, live, fresh, chilled, frozen,dried, salted or in brine; flours, meals and pellets of aquatic 
invertebrates other than crust aceans, fit for human consumption  
0307.0010 --  Pure-bred breeding animals Aqu 
Chapter 4 Dairy produce; birds' eggs; natural honey; edible products of 
animal origin, not elsewhere specified or included  
0407.00 Birds' eggs, in shell, fresh, preserved or cooked  
0407.0010 -  For hatching Agr 
Chapter 5 Products of an imal origin, not elsewhere specified included  
 0501.00 Human hair, unworked, whether or not washed or scoured; 
waste of human hair Agr WT/ACC/SPEC/VNM/4/Rev.1 
Page 138  
 
 Code Description Office in charge 
0502.00 Pigs', hogs' or boars' bristles and hair; badger hair and other 
brush making hair; waste of such bristles or hair Agr 
Chapter 6 Live trees and other plants; bulbs, roots and the like; cut flowers 
and ornamental foliage  
0601.00 Bulbs, tubers, tuberous roots, corms, crowns and rhizomes, 
dormant, in growth or in flower; chicory plants and roots other 
than roots of heading No. 12.12 Agr 
0602.00 Other live plants (including their roots), cuttings and slips; 
mushroom spawn Agr 
Chapter 10 Cereals  
1005.0010 Maize (corn)for sowing Agr 
1006.1010 Rice in the husk (paddy or rough) for sowing Agr 
Chapter 12 Oil seeds and oleaginous fruits; miscellaneous grains, seeds and 
fruit; industrial or medicinal plants; straw and fodder  
1209.00 Seeds, fruit and spores, of a kind used for sowing Agr 
Chapter 14 Vegetable plaiting materials; vegetable products not elsewhere 
specified or included  
1401.00 Vegetable materials of a kind used primarily for plaiting (for 
example, bamboos, rattans, reeds, rushes, osier, raffia, cleaned, 
bleached or dyed cereal straw, and lime bark) Agr 
Chapter 23 Residues and waste from the food industries; prepared animal 
fodder Importation of all the 
products in this Chapter 
are subject to line-
management of Environment Department, 
Ministry of Science, 
Technology and 
Environment 
Chapter 26 Ores, slag and ash  
2618.00 Slag and ash Sci 
2619.00 Slag, dross (other than granulated slag), scalings and other 
waste from the manufacture of iron or steel  Ind 
2620.00 Ash and residues (other than from the manufacture of iron or 
steel), containing metals or metals compounds Ind 
2621.00 Other slag and ash Ind  
Chapter 29 Organic chemicals  
2936 Provitamins and vitamins, natural or reproduced by synthesis 
(including natural concentrates), derivatives thereof used 
primarily as vitamins, and intermixtures of the foregoing, whether or not in any solvent MoH 
2937 Hormones, natural or reproduced by synthesis; derivatives 
thereof, used primarily as hormones; other steroids use 
primarily as hormones MoH 
2938 Glycosides, natural or reproduced by synthesis, and their salts, 
ethers, esters and other derivatives MoH 
2939 Vegetable alkaloids, natural or reproduces by synthesis, and 
their salts, ethers, esters and other derivatives MoH 
2941 Antibiotics  
2941.10 -  Penicillins and their derivatives with a penicillanic acid 
structure; salts thereof MoH 
2941.1010 Penicillins G (for injection) MoH 
2941.1020 Penicillins V all kind of fi nish products (Vegacilline) of any 
content (for drinking) MoH 
2941.1030 Penicillin sodiquet Procain (for injection) MoH 
2941.1040 Benzathin penicillin, benzathin benzil penicillin (for injection) MoH  WT/ACC/SPEC/VNM/4/Rev.1 
 Page 139 
 
 
 Code Description Office in charge 
2941.1090 Other MoH 
2941.20 -  Streptomycins and their derivatives; salts thereof MoH 
2941.2010 Streptomycins sulphate (for injection) MoH 
2941.2020 Derivatives of streptomycins (for injection) MoH 
2941.2090 Other MoH 
2941.30 -  Tetracyclines and their derivatives; salts thereof:  
2941.3010 Tetracyclines of any content  (for drinking) MoH 
2941.3020 Tetracycline  of any content (for injection) MoH 
2941.3090 Other MoH 
2941.40 -  Chloramphenicol and its derivatives; salts thereof  
2941.4010 Chloramphenicol of any content (for drinking) MoH 
2941.4020 Chloramphenicol of any content (for drinking) MoH 
2941.4090 Other MoH 
2941.50 -  Erythromycin and its derivatives; salts thereof  
2941.5010 Erythromycin  base, estolat, ethylsucdirat, lacto-biarat (for 
injection) MoH 
2941.5020 Erythromycin (base, estolat,ethylsucdirat, lacto-biarat of any 
content (for drinking). MoH 
2941.5090 Other MoH 
2941.90 Other  
 Amoxicilin (for injection) MoH 
 Amoxicilin (for drinking) MoH 
 Ampixilin trihydrat, natrium (for injection) MoH 
 Ampixilin trihydrat, natrium of any content (for drinking) MoH 
 Methinciline sodium (for injection) MoH 
 Cloxacilline sodium (for injection) MoH 
 Gentamycin sunfat (for injection) MoH 
 Cephapirine sodique, cefalotine (for injection and drinking) MoH 
 Lyncomycin base vÿ c,c d'ng HCL (for injection) MoH 
 Lyncomycin base vÿ c,c d'ng HC- (for injection) MoH 
 Sulfamethoxarol (SMZ) (for injection) MoH 
 Trymethoroprin (TM) (for injection) MoH 
 Sulfamethoxarol (SMZ) (for drinking) MoH 
 Trymethoroprin (TM) (for drinking) MoH 
 Other MoH 
Chapter 30 Pharmaceutical pro ducts Importation of all the 
products of this Chapter 
are subject to line-
management of Ministry of Health 
Chapter 37 Photographic or cinematographic goods  
370100 Film for printing industry Cul 
Chapter 38 Miscellaneous chemical products  
3808 Insecticides, rodenticides, fungicides, herbicides, anti-sprouting 
products and plant-growth, regulators, disinfectant and similar 
products, put up in forms or packings for retail sale or as 
preparations or articles (for ex ample, sulphur-treated bands, 
wicks and candles, and fly-papers)  
 -Insecticides:  
38081010 Aerosol Agr 
38081090 Other Agr 
380820 - Fungicides: Agr 
38082010 Liquid Agr 
38082090 Other Agr WT/ACC/SPEC/VNM/4/Rev.1 
Page 140  
 
 Code Description Office in charge 
380830 -  Herbicides, anti-sprouting products and plant-growth 
regulators Agr 
Chapter 39 Plastics an d articles thereof  
391500 Waste, parings and scrap, of plastic Sci 
Chapter 40 Rubber an d articles thereof  
400400 Waste, parings and scrap of rubber (other than hard rubber) and 
powders and granules obtained therefrom Sci 
401400 Hygienic or ph armaceutical articles (including teats), of 
vulcanised rubber other than hard rubber, with or without fittings of hard rubber MoH 
Chapter 41 Raw hides and skins (other than furskins) and leather  
411000 Parings and other waste of leather or of composition leather, not 
suitable for the manufacture of l eather articles; leather dust, 
powder and flour Agr 
Chapter 44 Wood an d articles of wood; wood charcoal  
440100 Fuel wood, in logs, in billets, in twigs, in faggots or in similar 
forms; wood in chips or partic les; sawdust and wood waste and 
scrap, whether or nor agglomerated in logs, briquettes, pellets or 
similar form Agr 
440300 Wood in the rough, whether or not stripped of bark or sapwood, 
or roughly squared Agr  
440400 Hoopwood; split poles; piles, pickets and stakes of wood, 
pointed but not sawn lengthwise; wooden sticks, roughly 
trimmed but not turned, bent or otherwise worked, suitable for the manufacture of walking-sticks, umbrellas, tool handles or 
the like; chipwood and the like Agr 
440500 Wood wool, wood flour Agr 
440600 Railway or tramway sleepers (cross-ties) of wood Agr 
440700 Wood sawn or chipped lengthwise, sliced or peeled, whether or 
not planed, sanded or finger-j ointed, of a thickness exceeding 6 
mm. Agr 
440800 Veneer sheets and sheets for plywood (whether or not spliced) 
and other wood sawn lengthwise, sliced or peeled, whether or 
not planed, sanded or finger-jointed, of a thickness not 
exceeding 6 mm Agr 
440900 Wood (including strips an d friezes for parquet flooring, not 
assembled) continuously shaped (tongued, grooved, rebated, V-jointed, beaded, moulded, rounded or the like) along any of its 
edges or faces, whether or not pl aned, sanded or finger-jointed Agr 
441000 Particle board and similar board of wood or other ligneous 
materials, whether or not agglomerated with resins or other organic binding substances  Agr 
441100 Fibreboard of wood or other ligneous materials, whether or not 
bonded with resins or other organic substances Agr 
441200 Plywood, veneered panels and similar laminated wood Agr 
441300 Densified wood, in blocks, plates, strips or profile shapes Agr 
Chapter 47 Pulp of wood or of other fibrous cellulosic material; recover 
(waste and scrap) paper or paperboard  
470700 Recovered (waste and scrap) paper or paperboard Sci 
Chapter 49 Printed books, newspaper, picture and other products of the 
printing industry; manuscripts, typescripts and plans  
4901 Printed books, brochures, leaflets and similar printed matter, 
whether or not in single sheets  
490110 -  In single sheets, whether or not folded  Cul 
 -  Other:   WT/ACC/SPEC/VNM/4/Rev.1 
 Page 141 
 
 
 Code Description Office in charge 
490191 --  Dictionaries and encycl opedias, and serial instalments 
thereof Cul 
490199 -  Other: Cul 
 49019910 ---  Classbooks, economy or technology sciential or social 
sciential books Cul 
49019990 Other Cul 
4902 Newspapers, journals and periodicals, whether or not illustrated 
or containing advertising material.  
490210 Appearing at least four times a week:  
49021010 Economy or technology sciential or social sciential newspapers 
and journals Cul 
49021090 Other Cul 
490290 Other  
49029010  Issuing for advertisement purposes Cul 
49029020  Economy or technology scien tial or social sciential newspapers 
and journals  Cul 
49029090 Other Cul 
490300 Children,s picture, drawing or colouring books Cul 
490400 Music, printed or in manuscript, whether or not bound or 
illustrated Cul 
491000 Calendars of any kind, printed, including calendar blocks Cul 
491100 Other printed matter, including printed pictures and photographs Cul 
Chapter 50 Silk  
5003 Silk waste (including cocoons unsuitable for reeling, yarn waste 
and garnetted stock)  
500310 -  Not carded or combed Ind, Sci 
500390 -  Other Ind, Sci 
Chapter 51 Wool, fine or coarse animal hair; horsehair yarn and woven 
fabric  
510300 Waste of wool or of fine or coarse animal hair, including yarn 
waste but excluding garnetted stock Agr, Sci 
Chapter 52 Cotton  
5202 Cotton waste (including yarn waste and garnetted stock)  
520210 -  Yarn waste (including thread waste)  Sci, Agr 
Chapter 70 Glass and glassware  
7001 Cullet and other waste and scrap of glass; glass in the mass Sci 
Chapter 71 Natural or cultured pearls , precious or semi-precious stones, 
precious metals, metal clad with precious metals, and articles 
thereof; imitation jewellery; coin  
710100 Pearls, natural or cultured, whether or not worked or graded but 
not strung, mounted or set; pearls, natural or cultured, 
temporarily strung for convenience of transport Aqu   
710200 Diamonds, whether or not worked, but not mounted or set  SBa 
710300 Precious stones (other than diamonds) and semi-precious stone, 
whether or not worked or graded but not strung, mounted or set; ungraded precious stones (other than diamonds) and semi-
precious stones, temporarily strung for convenience of 
transport. SBa 
710400 Synthetic and reconstructed precious or semi-precious stones, 
whether or not work or graded but not strung, mounted or set; 
ungraded synthetic or reconstructed precious or semi-precious stones, temporarily strung for convenience of transport SBa 
710500 Dust and powder of natural or synthetic precious or semi-
precious stones  SBa WT/ACC/SPEC/VNM/4/Rev.1 
Page 142  
 
 Code Description Office in charge 
21II - PRECIOUS METALS AND META LS CLAD WITH PRECIOUS METALS 
710600 Silver (including silver plated with gold or platinum), 
unwrought or in semi-manufactured forms, or in powder form SBa 
710700 Base metals clad with silver, not further worked than semi-
manufactured  SBa 
710800 Gold (including gold plated with platinum) unwrought or in 
semi-manufactured forms, or in powder form  SBa 
710900 Base metals or silver, clad with gold, not further worked than 
semi-manufactured SBa 
711000 Platinum, unwrought or in semi-manufactured forms, or in 
powder form SBa 
711100 Base metals, silver or gold, clad with platinum, not further 
worked than semi-manufactured  SBa 
711200 Waste and scrap of precious metal or of metal clad with 
precious metal; other waste and scrap containing precious or 
precious metal compounds, of a kind used principally for the 
recovery of precious metal. Sci, SBa 
Chapter 84 Nuclear reactors, boilers, machinery and mechan ical appliances; 
parts thereof   
8442 Machinery, apparatus and eq uipment (other than the machine-
tools of heading Nos.84.56 to 84.65), for type-founding or type-
noting, for preparing or making printing blocks, plates, cylinders or other printing components; printing type, blocks, 
plates, cylinders and other printing components, blocks, plates, 
cylinders and lithographic stones, prepared for printing purposes (for example, planed, grained or polished)  
844210 -  Phototype-setting and composing machines Cul 
844220 -  Machinery, apparatus and equipment for type setting or 
composing by other processes, with or without founding device: Cul 
844230 -  Other machinery, apparatus and equipment  Cul 
844250 -  Printing type, blocks, plates, cylinders and other printing 
components; blocks, plates, cy linders and lithographic stones, 
prepared for printing purposes (for example, planed, grained or 
polished) Cul 
8443 Printing machinery, including ink-jet printing machines, other 
than those of heading No. 84.71; machines for uses auxiliary to 
printing  
844310 -  Offset printing machinery Cul 
844320 -  Printing machinery for printing wording (not design), exclude 
flexographic printing machinery  Cul  
844330 -  Flexographic printing machinery Cul 
844340 -  Gravure printing machinery Cul 
844350 -  Other printing machinery Cul 
844360 -  Machinery for uses of printing technology Cul 
Chapter 85 Electrical machinery and equipment and parts thereof; sound 
recorders and reproducers, television image and sound recorders 
and reproducers, and parts and accessories of such articles   
8524 Records, tapes and other recorded media for sound or other 
similarly recorded phenomena, including matrices and masters 
for the production of records, but excluding products of Chapter 
37 Cul 
8525 Transmission apparatus for radio-telephony, radio-telegraphy, 
radio-broadcasting or television, whether or not incorporating 
reception apparatus or sound recording or reproducing 
apparatus; television cameras; still image video cameras and other video camera recorders   WT/ACC/SPEC/VNM/4/Rev.1 
 Page 143 
 
 
 Code Description Office in charge 
852510 -  Transmission apparatus Pos 
852520 -  Transmission apparatus incorporating reception apparatus Pos 
8526 Radar apparatus, radio navigational aid apparatus and radio 
remote control apparatus  
852610 -  Radar apparatus Pos 
 -  Other: Pos 
852691 -  - Radio navigational aid apparatus Pos 
852692 -  - Radio remote control apparatus Pos 
8527 Reception apparatus for radio- telephony, radio-telegraphy or 
radio broadcasting, whether or not combined, in the same 
housing, with sound recording or reproducing apparatus or a clock  
 -  Radio-broadcast receivers capable of operating without an 
external source of power, in cluding apparatus capable of 
receiving also radio- tele phony or radio-telegraphy:  
852711 -  - Combined with sound recording or reproducing apparatus Pos 
852719 --  Other Pos 
 -  Radio-broadcast receivers not  capable of operating without an 
external source of power, of a kind used in motor vehicles, 
including apparatus ca pable of receiving al so radio-telephony or 
radio-telegraphy  
852721 -  - Combined with sound recording or reproducing apparatus Pos 
852729 --  Other Pos 
 -  Other radio-broadcast receive rs, including apparatus capable 
of receiving also radio- te lephony or radio-telegraphy  
852790 Other Pos 
Chapter 88 Aircraft, spacecraft, and parts thereof  
880200 Other aircraft (for examples , helicopters, aeroplanes); spacecraft 
(including satellites) and s uborbital and spacecraft launch 
vehicles Avi 
Chapter 89 Ships, boats and floating structures  
8901 Cruise ships, excursion boats, ferry-boats, cargo ships, barges 
and similar vessels for the transport of persons or goods  
890110 -  Cruise ships, excursion boats, and similar vessels principally 
designed for the transport of persons; ferry-boats of kinds Tra   
890120 -  Tankers Tra 
890130 -  Refrigerated vessels, other than those of subheading 
No. 8901.20 Tra 
890190 -  Other vessels for the transport of goods and other vessels for 
the transport of both persons and goods Tra 
890200 Fishing vessels; factory ships and other vessels for preserving 
fishery products Tra 
890400 Tugs and pusher craft Tra 
890500 Light-vessels, fire-floats, dredgers, floating cranes, and other 
vessels the navigability of which is subsidiary to their main 
function; floating docks; floating or submersible drilling or 
production platforms. Tra 
890600 Other vessels, including warships and lifeboats other than 
rowing boats. Tra 
 Chapter 
90 Optical, photographic, cinematogr aphic, measuring, checking, 
precision, medical or surgical instruments  and apparatus; parts and accessories thereof  
900900 Photo-copying apparatus incorporating an optical system or of 
the contact type and thermo-copying apparatus MoH WT/ACC/SPEC/VNM/4/Rev.1 
Page 144  
 
 Code Description Office in charge 
901800 Instruments and appliances used in medical, surgical, dental or 
veterinary sciences, including scintigraphic apparatus, other electro-medical apparatus a nd sight-testing instruments MoH 
902200 Apparatus based on the use of X-rays or of alpha, beta or 
gamma radiations, whether or not for medical, surgical, dental 
or veterinary uses, including radiography or radiotherapy 
apparatus, X-ray tubes and other X-ray generators, high tension 
generator, control panels and desks, screens, examination or treatment tables, chairs and the like MoH 
Chapter 96 Miscellaneous manufactured articles  
960100 Worked ivory, bone, tortoise-shell, horn, antlers, coral, mother-
of-pearl and other animal carving  material, and articles of these 
materials (including articles obtained by moulding) Agr 
Chapter 97 Works of art, collectors' pieces and antiques  
970200 Original engravings , prints and lithographs Cul 
Agr: Ministry of Agriculture and Rural Development 
Aqu: Ministry of Aquaculture Sci: Ministry of Science, Technology and Environment 
Ind: Ministry of Industry 
MoH: Ministry of Health Cul: Ministry of Culture and Information 
SBa: State Bank of Vietnam 
Pos: General Department of Posts and Telecommunication Avi: Administration of Civil Aviation 
Tra: Ministry of Transportation 
  WT/ACC/SPEC/VNM/4/Rev.1 
 Page 145 
 
 
 Table 6:  Imported products subject to minimum customs value (April 2004)  
 
Item 4-digit HS Code Product description 
1 2201, 2202, 2203, 2204, 2205, 2206, 2208 Beverages including those under Charter 22 of 
the current Import Tariff Nomenclature 
2 4012, 4013, 4016 Tyres, inner tubes and plastic front strips for 
automobiles, motorcycles and bicycles 
3 6810, 6904, 6907, 6908, 6910 Ceramic tiles and sanitary wares  
4 7003, 7004, 7005, 7007, 7009, 7012, 9617 White and tinted flat glass and mirrors; 
vacuum flasks and glass inners for vacuum 
flasks 
5 8407, 8408 Combustion piston engines, electric motors 
and generators (excluding those used in automobiles, motorcycles and specialized 
vehicles e.g.  crane-tr ucks, bulldozers, etc) 
6 8414 Electric fans (excluding industrial fans under 
HS code 84145900) 
7 8711, 8714, 7315, 7318, 7320, 7415, 8301, 
8407, 8408, 8409, 8413, 8414, 8421, 8482, 
8483, 8484, 8507, 8511, 8512, 8539, 8544, 
9405 Motorcycles and spare parts 
8 2401, 2403 Tobacco leaves and stems, cigarettes 
9 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 Automobiles and spare parts 
 WT/ACC/SPEC/VNM/4/Rev.1 
Page 146  
 
 Table 7:  Rates of export duties levied by Viet Nam
 
 
No. Commodity Group and Individual Items Rate 
(per cent) 
0300       Fish and crustaceans, molluscs and other aquatic i nvertebrates.                            
03010    Fish, live, fresh or chilled of heading 030200; frozen fish of heading 030300; 
fillets fish of heading 030400.                                                 0    
0306 Crustaceans (shrimp and crab) whether in shell or not, liv e, fresh, chilled, 
frozen, dried, salted or in brine; crust aceans, in shell, cooked by steaming or 
by boiling in water, frozen, dried; salted or in brine; and molluscs whether in 
shell or not, and other aquatic invertebrates of heading 030700, live, fresh, frozen, dried, salted or in brine.                               
           - Shrimps and prawns, live, fresh, chilled, frozen, dried of all kinds    0  
           - Crabs, live, fresh, chilled, frozen of all kinds     0   
           - Cuttlefish, octopus and squid, live, frozen, chilled, dried of all kinds     0   
           - Others of heading 0300                                    0   
080100     Coconuts, cashew nuts, fresh or dried, whether or not shelled        0   
           Except:     
08013010   - Cashew nuts, unprocessed                          4   
08013090   - Cashew nuts, processed                              0   
090100     - Coffee, whether or not roasted and decaffeinated, coffee substitutes 
containing coffee in any proportion        0   
           Except:                                       
           - Coffee, not roasted                                    0   
090200     - Tea of all kinds                                                   0   
090400  - Pepper, dried chilly fruits, crushed or ground        0 
100500     Maize of all kinds                                              1 
1006 Rice  of all kinds  
100610 - Rice with broken more than 25 per cent                                             0 
100690 - Other 1 
121100 Plants and parts of plants (including seeds, fruits), of a kind 
used primarily in perfumery, in pharmacy, or for insecticide, fungicide or 
similar purposes, fresh or dried, whether or not cut, crushed or powdered.   0 
12119010   - Aguilaria crassna and other aloe                        20   
140100       Vegetable materials of a kind used primarily for plaiting (e.g. bamboo, 
rattans, reeds, rushes, oster, raffia, cleaned,  bleached or dyed cereal straw).            0   
           Except:                                       
           - Rattans, unprocessed      10   
           - Rattans, bleached, head – boiled, dyed or dried         3   
160400     Prepared fish, caviar and caviar s ubstitutes prepared from fish eggs      0   
160500     Prepared products fr om crustaceans, molluscs and other aqua tic invertebrates        0   
2600       Ores, slag and ash.                                       0   
           Except:                                       
260100     - Iron ores and concentrates                              1   
260200     - Manganese ores and concentrates                         10   
260300     - Copper ores and concentrates and ores of heading 260400, 260500                       2   
260600     - Aluminium ores and concentrates and ores of heading 260800      5   
260700     - Lead ores and concentrates                        5 
260900     - Tin ores and concentrates                              20 
261000     - Chromium ores and concentrates, ores of heading 261100, 261200, 261300, 
261400, 261500, 261600, 261700     1 
261100     Tungsten ores, enriched tungsten ores and other ores of heading  261200, 
261300, 261400, 261500, 261600, 261700 2 
270110     Coal                                                     0   
270120     Briquettes, ovoids and similar solid fuels manufactured from coal                          0   
270900  Petroleum oils and oils obtained from bituminous mine rals, crude                          0    WT/ACC/SPEC/VNM/4/Rev.1 
 Page 147 
 
 
 No. Commodity Group and Individual Items Rate 
(per cent) 
           Except:                                       
27090010   - Crude oil                                               4   
400100       Natural rubber, balata, gutta percha, guayule, chide       0   
           and similar natural gums, in primary forms (including           
           latex) or in plates, sheets or strips.                   
           Except:                                       
400110     - Natural rubber latex                                    0   
400120     - Natural rubber in other forms                           0   
410000       Raw hides and skins (other than furs skins) and   leather :      
 - Raw hides and skin of bovine or equine animals (fresh, or salted, limed, 
pickled)     10 
            Other                                                   0     
4400       Wood and articles of wood                
 Of natural wood   
  - Round wood                                       20    
           - Sawn wood                                               20 
           - Parquet panels, shingle and shakes                                          20 
           - Bar for electric pole, railway sleepers of various kinds      20     
           - Poles of wood (electric poles, master pole for house etc.)      20 
           - Door frames, window frames, frames and thresholds                                        15   
           - Stairs or details of stairs                             15   
 - Coffins 15 
 - Vehicle frames, chassis frames and thereof, 15 
 - Pallets, shuttering 15 
 - Pallet and load selves for stock 15 
           - Packing cases, boxes, crates, drums, and high class packing (containing 
liquids) and thereof           10 
           - Packing cases, boxes, crates, drums, and ordinary packi ng                                    10   
           - Foots and roots of various kinds                                       10   
           - Completed doors, windows and thereof                10   
 - Refined wooden panels for domestic or decoration use (planks for ceiling 
decoration,  wall covering boards, finished parquet panels - chipped, planed, 
grooved, rebated 10 
 - Finished blackboard for teachers and thereof 10 
 - Wooden frames of paintings, photographs mirrors, finished book shelves 
and thereof  5 
 - Wooden painting, wooden statuettes 5 
 - Finished wooden table ware, chairs, wardrobe (including wall wardrobe), 
beds and thereof 0 
 -- bed of wood (wood parquetry and inlaid or with the addition of other 
materials such as come, resin, leather)  0 
 -- Other  5 
 - Particle boards made of shavings (whether of not concentrated or 
containing added other materials) 5 
           - Wood wool (whether of not concentrated or containing other materials) 5     
           - Plywood, wood wool, wood of particle board 7     
 - Shaving of wood 10 
 - Coal derived from wood (charcoal) 5 
           - Other wooden items not elsewhere specified, without other materials 5 
 - Other wooden items not elsewhere specified, but combine other materials 0 
 Of wood from planted forestry   
 - Round woods 20 
 - Sawn woods, parquet panels, bar for electronic poles, railways sleepers, 
poles of wood 15 WT/ACC/SPEC/VNM/4/Rev.1 
Page 148  
 
 No. Commodity Group and Individual Items Rate 
(per cent) 
 - Shaving of wood 10 
 - Above-mentioned wooden products with export tariff 15 per cent or 
10 per cent of wood from natural 5 
 Above mentioned wooden products with export tariff 7 per cent, 5 per cent 
or 0 per cent of wood from natural 0 
710300     Synthetic or reconstructed precious or semi-precious stones 
(other than diamonds), whether or not worked or graded 
but not strung mounted or set; ungraded synthetic 
or reconstructed precious or semi-precious stones(other than diamonds), temporarily strung for convenience of transport.     
           - Precious tones and semi-pre cious stones whether not worked      5   
           - Precious tones and semi-p recious stones whether worked      1   
710500     Dust and powder of precious stones of heading 710300        3   
720000       Iron and steel                                            0   
           Except:                                       
720400     - Ferrous waste and scrap of iron                         35   
720700     - Semi-finished products of iron or non-alloy steel and iron and steel of 
heading 720600                        2   
740000       Copper and copper articles       0   
            Except:                                       
740400     - Copper waste and scrap                                  45   
740700     - Copper bars, rods and profiles and copper of heading 740500, 740600, 
740700, 740800, 740900, 741000           15   
750000   Nickel and nickel articles      0   
           Except:                                       
750300     - Nickel waste and scrap                                   45   
750500     - Nickel bars, rods and profiles, nickel of heading 750400, 750600      5   
760000      Aluminium and aluminium articles                      0   
           Except:                                       
760200     - Aluminium waste and scrap                              45   
760400     - Aluminium bars, rods and profiles and aluminium of heading 760300, 
760500, 760600, 760700                  5   
780000    Lead and lead articles       0   
           Except:                                       
780200     - Lead waste and scrap                                    45   
780300     - Lead bars, rods and profiles, lead of heading 780400        10   
790000 Zinc and articles thereof                                 0   
 Except:                                       
790200     - Zinc waste and scrap                                    45   
790400     - Zinc bars, rods and profiles, zinc of heading 790300, 790500                  5   
8000       Tin and tin articles       0   
  Except:                                       
800200     - Tin waste and scrap                                     45   
800400     - Tin bars, rods and profiles and tin of heading 790300, 790500        5   
8100       - Other base metals, cermets; articles thereof            0   
 Except:                                       
 - Base metal waste and scrap                                   45   
 - Metal semi-finished products                            10   
 Other goods not mentioned above (excluding goods mentioned in import – 
export minimum tax tariff of  Council of Ministers).                               0      WT/ACC/SPEC/VNM/4/Rev.1 
 Page 149 
 
 
 Table 8:  Goods subject to export restriction  
(except as indicated in the inv estment licences of FDI enterprises)  
Export prohibition 
- Weapon, ammunition, explosives, technical military equipment 
- Antique 
- Narcotics 
- Toxic chemicals 
- Log, sawn timber, husked wood, fire wood, mining coal from wood or fire wood, other wooden 
products from group IA and high quality-manufactur ed pallet from group IIA (refer to the notice), 
rattan materials 
- Various kinds of wild animal and preciously natural animals and plans 
Products subject to export quota 
- Rice 
- Textile and garment exported to European Union, Canada, Norway and Turkey markets 
Export subject to specific control 
- Coffee bean 
- Wild animals for export 
- Wild animals for breeding 
- Precious gems, metal and natural pearl 
- Wooden products (except handicraft; those produce d from cultivated forest's wood, from imported 
wood and from artificial pallet implemented under th e provision  of the Prime Minister in Decision 
No. 136/1998/Q§-TTg ngµy 31 July 1998) 
- Minerals 
Notice 
Group IA Group IIA 
Calocedrus macrolepis 
Taxus chinensis 
Cephalotaxus fortunei 
Podocarpus neriifolius 
Pinus kwangtugenis Pinus dalatensis 
Glyptostrobus pensillis 
Keteleeria calcarea Amentotaxus argotenia 
Abies nukiangensis 
Aquilaria crassana Copressus torulosa 
Ducampopinus krempfii Dalbergia oliverrii Gamble 
Dalbergia bariaensis 
      Dalbergia oliverrii Gamble 
      Dalbergia Dongnaiensis 
Afzelia xylocarpa  
Sindora cochinchinensis 
Sindora tonkinensis – A.Chev Pterocarpus pedatus Pierre 
Pterocarpus cambodianus Pierre 
Pterocarpus indicus Willd  
Chukrasia tabularis A.juss 
Chukrasia sp Chukrasia sp 
 
Dalbergia cochinchinensis Pierre Dalbergia annamensis 
Dalbergia cambodiana Pierre 
Fokienia hodginsii A.Henry et Thomas 
 
Diospyros mun H.lec  
Diospyros SP 
Markhamia pierrei Madhuca pasquieri 
Burretiodendron hsienmu 
Erythophloeum fordii Padocarpus fleuryi 
Rauwolfia verticillata  
Morinda officinalis 
Lilium brownii 
Panax Viet Nammensis 
Amomum longfiligulare Amomum tsaoko 
 WT/ACC/SPEC/VNM/4/Rev.1 
Page 150  
 
  
Items classified as narcotics
1 
No International name Scientific name 
1. Acetyl dihydrocodein  (5 , 6)- 4,5 - epoxy-3-methoxy-17 methyl-morphinan-6-
olacetat  
2. Alfentanil (N-[1-2(4-ethyl-4,5-dihydro-5-oxo-1 H-tetrazol-1-yl) ethyl]-4-
(methoxymethyl)-4-piperidinyl]-N-Phenylpropanamide 
monohydrochloride) 
3. Alphaprodin (Alpha- 1,3-dimethyl-4-phenyl-4 propionoxypiperidine 
4. Anileridin (1- para-aminophenethyl-4- phnylpiperidine-4-carboxylic acid 
ethyl ester) 
5. Bezitramid (1-(3-cyano- 3,3-diphenylpropyl)- 4 (2- oxo- 3- propoonyl-1- 
benzimidazolinyl)- piperidine) 
6. Butorphanol (-)-17- (cyclobutylmethyl) morphinan- 3,14 diolhydrogen 
7. Ciramadol (-)-2-(-Dimethylamino-3-hydroxybenzyl) Cyclohexanol 
8. Cocain (Methyl ester cña benzoylecgonine)* 
9. Codein (3- methylmorphine) 
10. Dextromoramid ((+)-4 [2-methyl-4-oxo-3,3-diphnyl-4 (1-pyrrolidinyl)- butyl] 
– morpholine) 
11. Dextropropoxyphen ( -(+)-4-dimethylamino-1,2-diphenyl-2-butanol propionate) 
12. Dezocin (-)- 13 - Amino- 5,6,7,8,9,10,11 , 12 octahydro- 5- methyl- 5, 
11- methanobenzo – cyclodecen-3-ol 
13. Difenoxin (1- (3 cyano-3,3-Diphenylpropyl)-4- Phenylisonip ecotic acid 
14. Dihydrocodein 7,8- Dihydro-3-O-methylmorphine-hydrogen 
15. Dipipanon (+) - 4,4- Diphenyl-6-Piperidinoheptan-3. 
16. Drotebanol (3,4- Dimethoxy- 17 –Methyl morphinan-6, 14 diol) 
17. Ethyl morphin (3-Ethylmorphine) 
18. Fentanil  (1-Phenethyl-4-N-Propionylanilinopiperidine) 
19. Hydromorphon (Dihydromorphinone) 
20. Ketobemidon (4-meta-hydroxyphenyl -1-methyl-4-prop ionylpiperidine) 
21. Levomethadon (3-Heptanone, 6- (dimethylamino)-4,4-Diphenyl, (R) 
22. Levorphanol ((-)-3-hydroxy-N-methylmorphinan) 
23. Meptazinol (3(-3-Ethyl-1- me thylperhydroazepin -3-yl) phenol 
24. Methadon (6- dimethylamino-4,4-diphenyl-3-heptanone) 
25. Morphin Morphinan-3,6 diol, 7,8-didehydro-4,5-epoxy-17 –methyl – 
(5,6) 
26. Myrophin Myristyl Benzyl morphine 
27. Nalbuphin 17-Cyclobutylmethyl-7,8-dihydro-14-hydroxy-17-
normorphine 
28. Nicocodin Morphinan- 6- ol, 7,8- Dihydro- 4,5-epoxy- 3 methoxy-17- 
methyl-3-pyridin mecarboxxy late (ester), (5, 6 ) 
29.  Nicodicodin 6- Nicotimylcodein 
30. Nicomorphin (3,6- Dinicotylmorphine) 
31. Norcodein N- Dimethylcodein 
32. Opium Opium 
33. Oxycodon (14- hydroxydihydrocodeinone) 
34. Oxymorphon (14- hydroxydihydromorphinone) 
35. Pethidin (1-methyl-4-phenylpiper odine-4-carboxylic acid ethyl ester) 
36. Phenazocin (2'- Hydroxy-5,9-Dimethyl-2-Phenethyl-6,7- Benzomorphan) 
37. Pholcodin (Morpholinylethylmorphine) 
38. Piritramid (1-(3-cyano-3,3-diphenylpropyl-4-(1-piperidino)-piperidine-4-
carboxylic acid amid) 
                                                      
1 Attached to Decision No. 2033/1999/Q§_BYT dated 9 July 1999 of the Minister of Health 
  WT/ACC/SPEC/VNM/4/Rev.1 
 Page 151 
 
 
 No International name Scientific name 
39. Propiram (N- (1- Methyl- 2 piperidinoethyl- N- 2- pyridyl 
Propionamide) 
40. Sufentanil (N- [4-(methoxymethyl)- 1- [2- (2-thienyl)- ethyl]-4 – 
piperidyl]- propionanilide) 
41. Thebacon (Acetyl dihydro codeinone) 
42. Tonazocin mesylat (+)-1-[(2 R- 6S –1, 2,3,4,5,6 – hexahydro – 8 –hydroxy- 
3,6,11- Trimethyl – 2,6- methano-3-benzazocine-11-yl] 
43. Tramadol (+) - Trans- 2- Dimethylaminomethyl- 1-(3- methoxyphenyl) 
cyclohexanol 
 
 
Narcotics in the form of mixtures2 
No Name of the material Content of base form per single dose 
product unit 
(mg) Concentration of base 
form per multi dose 
product unit 
(mg) 
1. Acetyl dihydrocodein 100 2.5 
2. Cocain  0.1 
3. Codein 100 2.5 
4. Dextropropoxyphen 135 2.5 
5. Difenoxin No more than 0.5mg Difenoxin and 
at least 0.025 mg Atropin Sulfat in per dosage unit of product.  
6. Difenoxylat No more than 2.5mg Difenoxylat 
and at least 0.025 mg Atropin 
Sulfat per dosage unit of product.  
7. Dihydrocodein 100 2.5 
8. Ethyl morphin 100 2.5 
9. Opium 1 mg Morphin in base form  
10. Nicocodin 100 2.5 
11. Nicodocodin 100 2.5 
12. Norcodein 100 2.5 
13. Pholcodin 100 2.5 
14. Propiram 100 2.5 
 
 
                                                      
2 Attached to Decision No. 2033/1999/Q§_BYT dated 09 July 1999 of Minister of Health 
 WT/ACC/SPEC/VNM/4/Rev.1 
Page 152  
 
  
Table 9:  List of precious aqua tic creatures requiring export approval  by the Ministry of Aqua-culture
 
 
Names Scientific Names 
Red coral Carallium Japonieus 
Konojci red coral Carallium Konojci 
Leaf-shaped earth-worms Phylum Spp. 
Round earth-worms Bibis Spp. 
Grown batrachian Ranidae 
Lobsters Panulirus Spp. 
Sea Cods of various kinds Ephinephelus Spp. 
 Seriola Spp. 
Awa Chanos Chanos 
 
Note:  The list is attached to Governme nt Decree No. 89/CP of 15 December 1995.  WT/ACC/SPEC/VNM/4/Rev.1 
 Page 153 
 
 
 Table 10:  Preferential tariff rates contingent  on localization ratios for the manufacturing of 
motorcycles and mechanical-electric-electronic enterprises  
 
Complete products of two-wheel motorbike: 
Achieved localization ratio (%) MFN import tariff rates 
contingent upon localization ratios (%) 
1. Above 0 and up to 20 
2. Above 20 and up to 30  
3. Above 30 and up to 40 
4. Above 40 and up to 50 
5. Above 50 and up to 60 
6. Above 60 and up to 70 
7. Above 70 and up to 80 
8. Above 80  60 
50 
40 
30 20 
10 
5 3 
 
Parts of two-wheel motorbike: 
MFN import tariff rates contingent upon localization ratios (%) 
With respect to parts which are subject to 
MFN import tariff rate of 50% Achieved 
localization 
ratio 
(%) With respect to 
parts which are 
subject to MFN 
import tariff 
rate of 30% With respect to 
parts which are 
subject to MFN 
import tariff 
rate of 40% Engines Other parts 
1. Up to 20 
2. Above 20 to 35 
3. Above 35 to 45 
4. Above 45 to 55 
5. Above 55 to 65 
6. Above 65 to 80 
7. Above 80 30 
20 15 
10 
7 
5 
3 40 
30 20 
10 
7 
5 
3 50 
30 20 
10 
7 
5 
3 50 
40 30 
20 
10 
7 
5 
 
Electronic products: 
MFN import tariff rates contingent upon localization ratios (%) 
Achieved 
localization 
ratio 
(%) With respect to 
parts which are 
subject to MFN 
import tariff rate of 
30% With respect to 
parts which are 
subject to MFN 
import tariff rate 
of 40% With respect to 
parts which are 
subject to MFN 
import tariff rate 
of 50% With respect to 
parts which are 
subject to MFN 
import tariff rate 
of 60% 
1. Up to 20 
2. Above 20 to 35 
3. Above 35 to 50 
4. Above 50 to 60 
5. Above 60 20 
15 
10 
5 
3 30 
20 
10 
5 
3 40 
30 
15 10 
3 40 
30 
15 10 
3 
 WT/ACC/SPEC/VNM/4/Rev.1 
Page 154  
 
 Electronic parts: 
MFN import tariff rates contingent upon localization ratios (%) 
Achieved 
localization 
ratio 
(%) With respect to 
parts which are 
subject to MFN 
import tariff rate 
of 30% With respect to 
parts which are 
subject to MFN 
import tariff rate 
of 40% With respect to 
parts which are 
subject to MFN 
import tariff rate 
of 50% With respect to 
parts which are 
subject to MFN 
import tariff rate 
of 60% 
1. Up to 15 
2. Above 15 to 30 
3. Above 30 to 40 
4. Above 40 to 50 
5. 5- Above 50 20 
15 
10 
5 
3 20 
15 
10 
5 
3 30 
20 
10 
5 
3 40 
20 
10 
5 
3 
 
Mechanical-electric products: 
MFN import tariff rates contingent upon localization ratios (%) 
Achieved 
localization 
ratio 
(%) With respect to 
parts which are 
subject to MFN 
import tariff rate of 
30% With respect to 
parts which are 
subject to MFN 
import tariff rate of 
40% With respect to 
parts which are 
subject to MFN 
import tariff rate of 
50% With respect to 
parts which are 
subject to MFN 
import tariff rate of 
60% 
1. Up to 20 
2. Above 20 to 35 
3. Above 35 to 50 
4. Above 50 to 60 
5. Above 60 20 
15 
10 
5 
3 30 
20 
10 
5 
3 40 
30 
20 10 
3 50 
40 
20 10 
3 
 
Mechanical-electric parts: 
MFN import tariff rates contingent upon localization ratios (%) 
Achieved 
localization  
ratio  
(%) With respect to 
parts which are 
subject to MFN 
import tariff rate of 
30% With respect to 
parts which are 
subject to MFN 
import tariff rate of 
40% With respect to 
parts which are 
subject to MFN 
import tariff rate of 
50% With respect to 
parts which are 
subject to MFN 
import tariff rate of 
60% 
1. Up to 15 
2. Above 15 to 30 
3. Above 30 to 40 
4. Above 40 to 50 
5. Above 50 20 
15 
10 
5 
3 20 
15 
10 
5 
3 30 
20 
10 
5 
3 40 
20 
10 
5 
3 
  WT/ACC/SPEC/VNM/4/Rev.1 
 Page 155 
 
 
 Table 13(a):  Fees for Cargo and Luggage in Transit Through Viet Nam  
 
No. Means of transport – Transiting Distance Calculation 
unit Fee rate 
(VND) 
Automobiles 
-  Distance of less than 100 km Unit 60,000 1  
-  Distance of 100 km or more, a surcharge shall be collected for 
every extra 50 km Unit 24,000 
Train 
-  Distance of less than 100 km Wagon 72,000 2 
-  Distance of 100 km or more, a surcharge shall be collected for 
every extra 50 km Wagon 36,000 
3 Ship 
Fee rates for ships of a weight of between 300 GRT and less than 1,000 GRT:  
-  Distance of less than 100 km Ship 120,000 a. 
-  Distance of 100 km or more, a surcharge shall be collected for 
every extra 50 km Ship 60,000 
Fee rates for ships of a weight of between 1,000 GRT and less than 3,000 GRT 
-  Distance of less than 200 km Ship 300,000 b. 
-  Distance of 200 km and more, a surcharge shall be collected for 
every extra 50 km Ship 70,000 
Fee rates for ships of a weight of between 3,000 GRT and 5,000 GRT 
-  Distance of less than 200 km Ship 720,000 c. 
-  Distance of 200 km and more, a surcharge shall be collected for 
every extra 50 km Ship 120,000 
Fee rates for ships of a weight of more than 5,000 GRT 
-  Distance of less than 200 km Ship 1,200,000 d. 
-  Distance of 200 km and more, a surcharge shall be collected for 
every extra 50 km Ship 240,000 
 
 
Table 13(b):  Fees for Escort and Sealing of Cargo  
 
No. Means of transport Calculation unit Fee rate 
(VND) 
I Customs escorting fee 
Automobiles: 
-  Escorting distance of less than 100 km Unit 48,000 
-  Escorting distance of between 100 km and 150 km Unit 96,000 1  
-  Escorting distance of more than 150 km, a surcharge 
shall be collected for every extra 50 km Unit 30,000 
Train 
-  Escorting distance of less than 100 km Wagon 42,000 
-  Escorting distance of between 100 km and 150 km Wagon 96,000 2  
-  Escorting distance of more than 150 km, a surcharge 
shall be collected for every extra 50 km Wagon 20,000 
3 Ship 
a. Fee rates for ships of a weight of less than 300 GRT as those for river or sea barges (as indicated in 
item 4 below) 
Fee rates for ships of a weight of between 300 GRT and 1,000 GRT:  
-  Escorting distance of less than 200 km Ship 360,000 
-  Escorting distance of between 200 km and 300 km Ship 720,000 b. 
-  Escorting distance of more than 300 km, a surcharge 
shall be collected for every extra 50 km Ship 100,000 WT/ACC/SPEC/VNM/4/Rev.1 
Page 156  
 
 No. Means of transport Calculation unit Fee rate 
(VND) 
Fee rates for ships of a weight of more than 1,000 GRT:  
-  Escorting distance of less than 200 km Ship 600,000 
-  Escorting distance of between 200 km and 300 km Ship 1,200,000 c. 
-  Escorting distance of more than 300 km, a surcharge 
shall be collected for every extra 50 km Ship 150,000 
River or sea barges 
-  Escorting distance of less than 200 km Barge 240,000 
-  Escorting distance of between 200 km and 300 km Barge 300,000 4 
-  Escorting distance of more than 300 km, a surcharge 
shall be collected for every extra 50 km Barge 50,000 
Crafts, boats 
-  Escorting distance of less than 100 km Boat 60,000 
-  Escorting distance of between 100 km and 150 km Boat 120,000 
-  Escorting distance of between 150 km and 200 km Boat 180,000 5 
-  Escorting distance of more than 200 km, a surcharge 
shall be collected for every extra 50 km Boat 240,000 
II Customs sealing fee 
1 Paper seal fee: 
-  Seals which use less than 10 sealing papers Per sealing 
procedure 5,000 
-  Seals which use from 10 to less than 20 sealing papers Per sealing 
procedure 10,000 
-  Seals which use from 20 to less than 50 sealing papers Per sealing 
procedure 20,000  
-  Seals which use more than 50 sealing papers Per sealing 
procedure 30,000 
2 Lead seal fee Per sealing case 5,000 
3 Seal ring fee Per sealing case 20,000 
 
 
__________