RESTRICTEDWORLD TRADE
ORGANIZATIONWT/ACC/VNM/9
26 June 2000
(00-2598)
Working Party on the
Accession of VietnamOriginal:  English
ACCESSION OF VIETNAM
Additional Questions and Replies
The Government of the Socialist Republic of Vietnam has submitted replies to additional
questions concerning the Memorandum on the Foreign Trade Regime of Vietnam, with the request
that they be circulated to the members of the Working Party.  Hereunder are replies to questions
raised by WTO members on the basis of documents WT/ACC/VNM/6 and WT/ACC/VNM/7.
_______________WT/ACC/VNM/9
Page i
TABLE OF CONTENTS
Page
No.Question
No.
II. ECONOMY, ECONOMIC POLICIES AND FOREIGN TRADE
2. Economic Policies
(a) Main directions 1 1-22
(b) Monetary and fiscal policies 11 23-31
(c) Foreign exchange and payments system 14 32-37
(d) Foreign and domestic investment policies 18 38-42
(d) Competition policies 19 43-
III. FRAMEWORK FOR MAKING AND ENFORCING POLICIES
AFFECTING FOREIGN TRADE IN GOODS AND TRADE IN
SERVICES
1. Power of Executives, Legislative and Juridical Branches of
Government20 45-57
IV. POLICIES AFFECTING TRADE IN GOODS
1. Import Regulations
(a) Registration Requirements for engaging in importing 27 58-69(b) Characteristics of national tariff 31 70-77
(d) Other duties and charges, specifying any charges for services
rendered33 78-85
(e) Quantitative import restrictions, including prohibitions, quotas and
licensing systems36 86-105
(f) Licensing procedures 42 106-116
(h) Customs valuation 45 117-119
(j) Pre-shipment inspection 47 120
(k) Application of internal taxes on imports 47 121-129
(l) Rules of origin 50 130
(m) Anti-dumping, countervailing duty and safeguard regimes 50 131-134
(p) Other border measures, e.g. any other schemes that have border
effects similar to those of the measures listed under (e) above51 135-136
2. Export Regulation 52
(c) Quantitative export restrictions 52 137-139
(f) Export financing, subsidy and promotion policies 54 140-142
(h) Import duty drawback schemes 55 1433. Internal policies affecting foreign trade in goods
(a) Industrial policy, including subsidy policies 55 144-145
(b) Technical specifications and standards 56 146-155
(c) Sanitary and phytosanitary measures, including measures taken
with respect to imports59 156-157
(d) Trade-related Investment Practices 60 158-172
(e) State-trading practices and SOE 67 173-189
(g) Free economic zones 73 190
(h) Trade-related environment policies 73 191
(k) Government procurement 74 192-1934. Policies affecting Importation and Exportation of Agricultural
products75 194-196WT/ACC/VNM/9
Page ii
Page
No.Question
No.
V. TRADE-RELATED INTELLECTUAL PROPERTY REGIME
2. Substantive standards of protection including procedures for
acquisition and maintenance of intellectual property rights
(a) Copyright and related rights 76 197-
(d) Industrial designs 77 200-201
(e) Patents 78 202-215
(ii-iii) Accounting service 87 216-217
(iv-vii) Architectural Services, Engineering Services, Integrated
Engineering Services, Urban Planning Services87 218-219
2. Telecommunications Services 88 220
7. Banking and Financial Services  88 221-226
VI. INSTITUTIONAL BASE FOR TRADE AND ECONOMIC
RELATIONS WITH THIRD COUNTRIES92 227-228
ANNEX I
List of Imported Items Subject to non-Tariff Barriers in 1999 93
ANNEX II
List of Export prohibited products, unless indicated in investmentlicenses of FDI enterprises96
ANNEX III
List of Narcotics 98WT/ACC/VNM/9
Page 1
II. ECONOMY, ECONOMIC POLICIES AND FOREIGN TRADE
2. Economic Policies
(a) Main directions
Question 1.  
Please confirm Vietnam’s commitment not to introduce new measures inconsistent with Article
III GATT.  Please update the Working Party on the removal of the existing one.
Answer:
Vietnam is in the process of reviewing its legislative documents to identify provisions and
regulations inconsistent with Article III GATT 1994 as well as requirements for adjusting its
institutional and regulatory framework towards co nsistency with GATT rules, to narrow and/or
abolish those discrepancies. In reality, Vietnam has made the following amendments:
- Applying uniformly value added taxes to domestic and imported books and
newspapers.
- Narrowing the scope of enterprises those are exempt from VAT and level of VAT
deduction.
- Elimination of dual pricing system to a number of products and services.
The amendments being done continuously under the legislative programmes will be notified
frequently to the Working Party.
Question 2.  
Regarding Question 3 in WT/ACC/VNM/6, Vietnam provides details about protection of
Agricultural domestic production. Is agriculture the only sector that is protected under
"securing proper protection to domestic production" or are other sectors, such as paper, alsoprovided such protection?
Answer:
Agriculture is not the only sector where so me protection is provided “securing proper
protection to domestic production”.  The paper production industry is another example:
The paper production industry is characterized by small scale, backward technology, poor
range of products, low quality and a high production costs that are even higher than the global price.
The competitiveness of the industry is very low. However, the existence and development of
the domestic paper industry of Vietnam is very much related to the living standard of the farmers who
grow material trees for the industry. Therefore, protection by the State through tariff and restrictive
imports control is necessary (tariff rate for printing papers, pupils textbook papers: 40 per cent; for
newspaper and magazine papers: 20 per cent; thin and sanitary papers: 40 per cent, packaging paper,
cardboard paper: 30 per cent).
Question 3.  
Please specify what is meant by “non-excessive protection that gradually leads to a competitive
environment?” Does Vietnam accept that after th e accession to the WTO the only “protection”
available will be the one resulting from the WTO Treaty in the circumstances foreseen thereof?WT/ACC/VNM/9
Page 2
Answer:
This phrase is not quoted in any of Vietnam's legal documents but a policy orientation
pursued by the Government of Vietnam. Vietnam always strives for a balanced level between
protection needs and competition encouragement to maintain the development dynamic in each
economic sector. This policy will be made compatible to WTO principles and under the tendency ofdecreasing protection, considering the level of economic development. In the process of accession,
Vietnam will concretize such policies and measures which meet the development needs as well as
WTO's principles.
Question 4.  
Please submit to the Working Party the effective lists of the commercial activities that remain
an exclusive domain of the State?
Answer:
In fact there are few goods and services that are solely provided by state enterprises
(e.g. supply of gasoline, petroleum and electricity). Detailed information on Vietnam’s enterprises and
their corresponding businesses as stipulated in Article  XVII of GATT 1994 is provided in the
G/STR/N/4 formatted Notification on State Tr ading Enterprises (document WT/ACC/VNM/14).
Question 5.  
Please specify under which circumstances labour intensive enterprises may be considered for
assistance.
Answer:
There is no formal labour-intensive definition and it is, therefore, unclear about the specific
number of labourers employed in an enterprise to be considered as “labour-intensive”. However,enterprises for which full time employment exceeding the below-stated amounts year-average may be
given certain privileges:
- 100 labourers in the urban areas;
- 20 labourers in socio-economically disadvantaged areas;
- 50 labourers in other areas.
Detailed information is fully provided for in Lists B and C of the Decree No.51/1999/ND-CP
dated 8 July 1999 providing details to implement the amended Law on Domestic Investment
Promotion No.3/1998/QH10.
Question 6.  
Please specify how the aims of the Laws on Comp any and Private Enterprises, listed in the reply
to this question, were actually achieved.
Answer:
The Law on Companies and the Law on Private Enterprises promulgated by the Vietnam
National Assembly of the 8th session at the end of 1990 was an important milestone in the reform
process of the  Vietnamese economy. At that time, the objectives of these laws were:WT/ACC/VNM/9
Page 3
- To develop a multisectoral merchandised economy; to mobilize and efficiently utilize
internal capital, labour and natural resources and to create more employment;
- To protect legitimate interests of investors, accelerate the economic growth;
- To enhance the effectiveness and capability of state management of business
activities.
These two laws have contributed to the success of socio-economic development in Vietnam
over the last 10 years. During that period, there were about 40,000 newly established enterprises with
the aggregated registered capital of 21,000 billion VND approximately (estimated 1.5 billion USD). It
meant that nearly 5,000 enterprises with the total registered capital of more than 2,600 billion VND
were newly established annually. The production of private enterprises and companies  account for
around 8 per cent GDP. According to a rough estimate, for the last 10 years, this sector has created
more than 500,000 jobs and contributed a considerable source into budgetary revenue. Additionally,more than 1.5 million business households, a distinctive type of business guided by the Decree
No.66/HDBT dated 2 March 1992 was also consider ed as a result of the issuance of Law on
Companies and the Law on Private Enterprises. These households are employing 3 million labourers
and generate approximately 9 per cent GDP. The strong development of private enterprises and
companies has undoubtedly made the economy more dynamic, flexible to better serve diverse needsof life.
At present, Vietnam’s socio-economic development has motivated the adaptation of these two
Laws. Firstly, Vietnam realized the necessity of mobilizing all internal and external sources and
encouraging all economic sectors and types of businesses into industrialization and modernization
process.
Secondly, during the last 10 years, the overall le gal framework and that regulating enterprises
in particular have been improved. Consequently, some provisions of the Law on Companies and the
Law on Private Enterprises have no longer been compatible with other applicable laws, so that they
resulted in discrepancies in interpretation and implementation of other related laws and limited the
effective enforcement of the related  regulations.
Thirdly, after the 10-year reform, the number of enterprises in the market has significantly
increased; The market mechanism better functions well in terms of both scale and frequency; the
economy more liberal, business transactions have increased in both absolute and relative terms; Forms
of business activities have become much more complicated and diversified. Meanwhile, some
regulations in the Law on Companies and the Law on Private Enterprises have proved not to be
adaptive to such new development any longer.
These shortcomings and deficiencies of the two laws have limited investors’ flexibility in
selecting investment forms and taking investment opportunities which are relevant to their capability.
Such circumstance partially restricted the mobilization of sources to develop the domestic economy
and weakened the effectiveness of  state management and supervision  over enterprises.
In order to overcome the mentioned shortcomings, the Vietnamese National Assembly in June
1999 passed the Law on Enterprises covering the applicable scopes of both the previous Law onCompanies and the Law on Private Enterprises. The passage of Enterprise Law is one of fundamental
solutions to improve the existing business enviro nment so as to achieve the following goals: to
liberalize and mobilize all production forces and potential; to facilitate business activities for all
households and enterprises; to create favourable environment and conditions for the private sector to
develop legally in all economic fields without restriction on size or scope; to create jobs; to enhanceenforcement of  the law based state administration; and to promote, guide and assist investment
activities for development .
The Law on Enterprises has the following major changes:WT/ACC/VNM/9
Page 4
- To broaden the subjects eligible to set up and contribute to enterprise capital;
- To reform and simplify administrative procedures required for the establishment of an
enterprise by combining establishment application with business registering into a
single stage;
- To grant more business autonomy and creative capability to enterprises and people.
This is reflected and implemented through state management over different business
sectors. Particularly, business sectors are divided into 6 following categories: (1)
prohibited sectors; (2) conditional business sectors; (3) business sectors where legal
capital is required; (4) business sectors where professional licence is required; (5)
business sectors where only the form of a partnership company or a private company
are allowed; and (6) others. Except those und er prohibited sectors, regarding those are
under categories from the second to the fifth, enterprises satisfying all  requirementsstipulated by the related laws, ordinances and decrees and having completed its
business registration are allowed to operate in their registered economic fields.
Regarding the other business sectors, enterprises can automatically register and carry
out their registered business;
- To add more types of enterprises for investors to make their choice, and to create a
legal basis for them to better manage risks in business activities;
- To specify more instruments to protect th e legitimate interests of all investors
including minority shares holders;
- To provide for regulations on enterprise’s de-merging, acquisition, split, merging and
transformation; This gives enterprises more chances and flexibility in extending theirbusiness scope, size and sectors/lines;
- To improve the effectiveness of state management over enterprises as well as the
mechanism for controlling and supervising enterprise’s business operation after
registration.
In effect, the Law on Enterprises with the above-mentioned modifications has really attracted
attention and expectation of business community and the whole society in general. Since the first
months of its entry into force, positive impacts by  Law on Enterprises has been proved by the fact
that the number of newly-registered enterprises pursuant to this Law has reached a record of about
40,000.
Question 7.  
Regarding Question 12 in WT/ACC/VNM/6, we welcome Vietnam's consolidation of the Law on
Company and the Law on Private Enterprise in to the Law on Enterprise.  However, could
Vietnam provide more detail on what constitutes a state-owned public interest enterprise as
described in Decision 20/1998/C T/TTg? Could Vietnam also provide a complete list of those
sectors in which " State-owned public interest enterprises" operate?
Answer:
State-owned public interest enterprises are described in Decree 56/CP dated 2 October 1996
of the Government and elaborated in the Circul ar 1/BKH/DN dated 29 January 1997 of The Ministry
of Planning and Investment. Details are as follows:
Article 1 of The Decree 56/CP of the Governme nt provides that “ State-owned public interest
enterprises are an independent state-owned enterp rise or self-financing affiliate to a national
corporation  directly implements a task related to national defense, security in manufacturing a
product or supplying public services as per policy or commercial order of, at a price or within a price
framework by the Government but on non-lucrative basis. For example:WT/ACC/VNM/9
Page 5
- Public transport and urban works: public passengers transport, sanitary services,
ecological and environmental protection, management of park, green trees, zoo-park,
urban lighting system,  water supplies and sewage services, mourning services in
cities.
- Printing and publication of educational books and textbooks, political books and
newspapers;
- Production and publication of material document films, scientific films, television
films and films for children.
- Production of goods and services under social policy of the government: Production
and provision of culinary salt, emotion pictures and other goods and services for
remote and mountainous, island regions; production and provision of anti-wide
spread disease medicines for human, plants and animals; production of goods andservices for handicapped people.
Question 8.  
 Vietnam should provide details on the procedures  for the allocation of annually fixed subsidies
for each Large National Corporation, e.g. which departments of organs decide allocations of
subsidies? What criteria is used to establish th e allocation of subsidies to each corporation?
Answer:
Vietnam does not have an annual fixed program of subsidies in favour of national
corporations. All enterprises may be given incenti ves in taxes, credit terms when they operate in
disadvantaged regions or with the public interest purpose… etc in accordance with a certain subsidy
and domestic programmes.
Total annual subsidies are not fixed and necessary adjustment would be applicable in each
specific circumstance.
All enterprises, regardless of the scale or nature  of activities, may declare bankruptcy in case
of falling into critical difficult circumstances excep t such bankruptcy threatens to result in big losses
to the society. In this case, the enterprise may be financed to recover it’s business operation.
All necessary information relating to industrial subsidies are provided in the WTO secretariat
formatted notification (document WT/ACC/VNM/13).
- Price Policies
Question 9.  
A discriminative double-pricing policy for foreigners dampens foreign inventors’ enthusiasm to
invest in Vietnam. A serious gap still remains between prices paid by the Vietnamese and those
paid by foreigners, although some progress has been made through the Prime Minister'sDecision No.53, dated 26 March 1999. We suggest that the double-pricing policy should be
abolished. Abolition of such doubled pricin g policy is a major investment incentive.
Answer:
Recently, the Vietnamese Government applied many necessary measures to narrow such
gaps, especially in pricing issues:
- Electricity :  sale price applicable to foreign invested enterprises has been lowered;WT/ACC/VNM/9
Page 6
- Prices and telecommunications fees:  telephone installation fees are applied equally to
foreign invested companies or foreigners and Vietnamese enterprises or Vietnamese
people;  reduction of subscriber fees for foreign invested companies and foreigners.
Local telephone tariff are applied equally for foreign invested companies and
foreigners and Vietnamese people.  From 10 July 1999, international telephone callfees are reduced by 10 per cent and extra charges of hotels are limited to 15 per cent;
- Water supply: Price of water is applied in non-discriminatory manner.
Vietnam intends to adjust pricing policy gradua lly with a view to a non-discriminatory single
tariff .
Question 10.  
Does Vietnam commit to eliminating the disparities between utility costs to foreign and national
enterprises? Please submit a more detailed timetable for the elimination of such disparities thatprovided in question 24.
Answer:
 Please refer to the Action Plan on Pricing Policy (WT/ACC/VNM/10) and the answer 9.
Question 11.  
With respect to Question 24 in WT/ACC/VNM/6, we are pleased that Vietnam has made some
changes to narrow some price differentials in certain sectors and plans to eliminate differences
for water and telephone installations. However, Vietnam states that it is only considering
narrowing differences for other sectors (air passenger tariff). We strongly encourage Vietnam
to eliminate all dual pricing, especially in electricity sector.
Answer:
Please refer to answer 9.
Question 12.  
We appreciate Vietnam’s efforts, as out lined in this section, to lay out its  plans to reform  its
price controls in accordance with the WTO.  The reform effort should include Vietnam
recognition of national treatment and the avoidan ce of prejudicial effects on imports in Article
III of the GATT.
We would appreciate further clarification on this process, as follows:  please confirm that all
such controls on the prices of goods and services are notified to the public in the “Market and
Price Bulletin” as noted in response to the question 26 of WT/ACC/VNM/6.
Answer:
The Market and Price Bulletin issued by an authorized agency of Vietnam is to provide
information about current fluctuation of prices in response to the demands of administration bodies ofthe State and business community, but not the official publication of pricing control measures by the
Government.
All legal documents are publicized in mass media.WT/ACC/VNM/9
Page 7
Question 13.  
Please update the list contained in WT/ACC/VNM/3/Add.1 and indicate that an item on this list
is ready to be removed and phased out from the dual price mechanism.
Answer:
Please refer to the answers 9 and 10.
Question 14.  
Please provide more information on the steps an item undergoes to be eliminated including a
general time frame for this process in an effo rt to make Vietnam’s price control system more
transparent.
Answer:
The Vietnamese Government still maintains pricing control on electricity,
telecommunications fees, water supply, ceiling price to petroleum, steel, cement, fertilizer, papers
because of their  casual linkage to macroeconomic stabilization and life of the people in all classes.
From the year 2000, the Government will gradually phase out goods and services  subject to
pricing control, at the coming stage, on fertilizer, cement, steel, paper.
Question 15.  
Under what conditions would Vietnam continue its plans for liberalization of their remaining
price controls on urea fertilizer, cement, iron, steel and newsprint, after 2000? What are
Vietnam’s plans concerning liberalization of thes e products in the future? What impediments
exist to allowing market priced sales to take place in these industries?
What are Vietnam’s plan concerning future in terventions by the State in the pricing of
commercial exchanges for other products and services?
Answer:
From 2000, Vietnam will gradually phase out pricing controls on fertilizer, cement, steel,
printing papers when the supply and demand relation of these goods comes to a balanced and sound
basis, market prices get into sound normal operation which creates favorable and  fairly competitive
environment among enterprises.
There is no plan to increase the intervention by  the government in regulating prices in other
goods and services.
Question 16.  
Please update the Working Party on the measures taken to eliminate dual pricing.
Answer:
Please refer to the Action Plan on Pricing Policies (WT/ACC/VNM/10) and the answer 9.
Question 17.  
Vietnam affirms that it intends to strengthen price supervision. How this will apply in practice.WT/ACC/VNM/9
Page 8
Answer:
The State regulates market prices by macroeconomic policies and instruments such as fiscal
and monetary measures, reserve ratio requirement, etc.
At Present, the Government of Vietnam only keeps direct control over prices of a certain
important public utility goods and services including electricity, postal  and telecommunicationscharges, port charges, and determines the ceiling selling prices of gasoline and petroleum, liquefied
gas, iron and steel, cement, journal printing paper.
In the coming time, the list of items subject to the State’s direct pricing control will be
shortened to enhance business autonomy.
Question 18.  
Is price control only applied to domestically produces goods?
Answer:
The control over prices of goods/services subject to the State pricing control is applied both to
domestically produced goods and imports.
Question 19.  
Please include specific information on the planned intensification of price supervision referred
to the response to the question 25 of WT/ACC/VNM/6.
Answer:
There is no further information other than th ose described in answer 25 of WT/ACC/VNM/6.
- Privatization Plans
Question 20.  
Please update the Working Party on the ongoing process of equitization. Does Vietnam intend to
increase the number of companies in whic h foreigners are allowed to buy shares?
Answer:
The ongoing process of equitization in Vietnam:  By the end of December 1999, the
cumulative total of equitized enterprises has reached 370 (250 equitized enterprises in 1999
inclusive), of which 43 enterprises have registered capital of more than 10 billion VND and 6enterprises have foreign  shareholding. Since owne rship diversification of state-owned enterprises is
an important solution in the process of Vietnam’s enterprise reform, the number of equitized
enterprises in 2000 will be enlarged rapidly.
Regarding sales of  state-owned enterprises shares to foreign investors:  
With the view of
attracting more capital, new technology through the contribution of capital by foreign investors, the
Vietnamese Government issued the Decree N o.44/1998/ND-CP dated 29 June 1998 on transformation
of state-owned enterprises into joint-stock companies and the Prime Minister issued the DecisionNo.145/1999/QD-Ttg dated 28 June 1999 providing regulations on sales of SOEs shares to foreign
investors (including list of sectors where sale of shares to foreign investors are permitted); the numberWT/ACC/VNM/9
Page 9
of enterprises selling shares to foreign investors depends on size and type of each enterprise as well as
its specific objectives.
Please refer to the answer 21 for the list of in sectors where sale of shares to foreign investors
are permitted
Question 21.  
Please detail the conditions which apply for buying shares and which were under preparation at
the time of the last Working Party session.
Answer:
Pursuant to the Decision No.145/1999/QD-Ttg of  28 June 1999 issued by the Prime Minister
establishing regulations on sales of SOEs shares to foreign investors, foreign organizations and
individuals are allowed to buy shares in the joint-stock companies operating in the following sectors:
- Textiles and garments sector;
- Footwear sector;
- Leather-processing sector;
- Agricultural products, forestry and marine products processing sector;
- Other consumer products manufacturing sector;
- Construction materials sector;
- Road transportation, internal waterway transportation and container merchandise
transportation
- School stationery and learning instruments manufacturing sector;
- Children toys manufacturing sector;
- Hotel and related services sector;
- Mechanical sector;
- Exports producing enterprises which operate in above sectors.
Foreigners are allowed to purchase shares directly or through Vietnamese financial
institutions or banks or through foreign financial institutions or banks operating within Vietnamese
territory. Foreign investors are permitted to open accounts in those financial institutions or banks.
The total value of shares sold to foreigners  must not exceed 30 per cent of the company’s
registered capital. In case that the value of shares registered to be bought by foreigners exceeds this
threshold, an auction is required.
Shares purchases by foreign investors are paid in VND. Foreign currencies must be converted
at the average inter-bank exchange rate announced by the State Bank of Vietnam at the time of sales.
The sales of SOEs shares must be made publicly known through mass media.
Regarding conditions for transfer of stocks:- Foreign investors who engage in the management of a joint stock company are
allowed to transfer their stocks after 3 years as from the date of his purchase of the
company’s shares.
- Foreign investor who do not engage in the management of a joint stock company are
allowed to transfer their stocks after 1 years as from the date of his purchase of thecompany’s shares.WT/ACC/VNM/9
Page 10
Question 22.  
The response to question 295 in WT/ACC/VNM/6 notes that Vietnam it is pushing forward its
program of “equitization” of State-owned enterprises.
We understand that this process is intended to foster non-state participation in the ownership
and management of State-owned firms.
We seek further information from Vietnam on:
- how the process of equitization is intended  to work; (b) Where in the process Vietnam
now find itself relative to its ultimate goals for the program, particularly with respect to
equitization of its large national corporations; and
- What goals the program has ultimately, with respect to private ownership of firms and
enterprises within Vietnam’s economy, if anything.
Answer:
Equitization is an important measure in the process of reform of enterprises in Vietnam.
Pursuant to the Guidance 20/TTG/1998 dated 21 April 1998 of The Prime Minister on Acceleration of
restructure and reform of state owned enterprises, lin e ministries must classify state-owned enterprises
into 3 groups:
- Group 1: state-owned enterprises with certain important role in the economy will be
maintained to ensure firmly the vital role in the process of development. This group consist of
100 per cent state-owned  and public interest enterprises.
- Group 2:  state-owned enterprises which are subject to ownership restructuring and classified
into 3 categories (1) enterprises maintaining majority of state shareholding, (2) special
shareholding of the State or (3) no state shareholding at all.
During 1998 – 1999, at least 20 per cent of those in group 2 enjoying autonomous or internal
accounting regime should be equitized following various modalities in accordance with the
Decree 103/1999/ND-CP dated 19 September 1999)  such as contractual assignment, sale or
lease of state owned enterprises to labourer group  or other economic sectors.
- Group 3: state owned enterprises suffering long-lasting losses
On the basis of such classification, ministries and provinces must report to the Government
and set up annual and long-term plans and road map of equitization of state-owned enterprises for
Group 2.
Equitization of state owned enterprises are implemented in the following forms:
- To issue new shares to attract more investment capital in order to transform state-
owned enterprises into joint-stock companie s on the basis of maintaining the current
value of capital investment hold by the State;
- To sell a part of the current state-invested  capital in the enterprise to transform the
state-owned enterprise into a joint-stock company;
- To separate a unit from a state-owned enterprise in order to transform it into a joint-
stock company;
- To transform the enterprise in to a joint-stock company, andWT/ACC/VNM/9
Page 11
Initial results of the process are:
- Business and production outcomes of joint-stock companies have increased as
compared to pre-equitized state owned enterprises;
- Employment and income of the employees have increased.
The role of employees in joint-stock companies and business management methods have been
improved significantly. In addition, there are also some other positive impacts in term of inflow of
government funds, absorption of non-operating mone y from different sectors into production and
business.
The Objective of equitization plan of Vietnam are:
- To absorb money from the whole society including individuals, foreign and domestic
social and economic organizations to invest in technology innovation, employment
creation and business enterprise development;
- To reform management methods and create momentum for domestic enterprises to
develop their business efficiency as well as incomes of the employees.
Please refer to the answer 20 above for further information.
(b) Monetary and fiscal policies
Question 23.  
Vietnam affirms to be willing to gradually making the Dong fully convertible. Could Vietnam
provide more information on the time that will be requested for this result to be achieved?
Answer:
The purpose of making the Vietnamese Dong convertible is stipulated in Decree No.
63/1998/ND-CP dated 17 August 1998 of the Government on Foreign Exchange Control.
Decree No. 63/1998/ND-CP has relaxed the control over personal money transfer.
Particularly, individuals are allowed to purchase, transfer money abroad for purposes of aids, inherent,
tourism, study, operation, medical treatment, club membership and types of fee; foreigners who have
legal income in foreign currency are permitted to transfer or bring the money out of the country. If
income is in Vietnamese Dong they are permitted  convert into foreign currency at the appointed
banks.
The Law on Amendment and Supplement of some  provisions of Law on Foreign Investment
in Vietnam approved by The National Assembly on 16 May 2000 stipulates that foreign invested
enterprises and parties to business cooperation contracts (BCC) are allowed to purchase foreign
currency in commercial banks to finance current transactions and other kinds of transaction provided
by regulations on foreign currency. This regulation replaced the previous restriction by The Law on
Foreign Investment in Vietnam which had required foreign invested enterprises to self balance theirforeign currency demands (requirements). However, the Vietnamese Government only provides
guarantee of balancing foreign currency requirements for certain significant important projects under
economic programmes of the government in specific periods. The Vietnamese Government provides
the assurance of its assistance to balance the foreign currency requirements of enterprises operating in
infrastructure construction and other important projects. In addition, in certain circumstances, subjectto the approval of State Bank of Vietnam,  foreign invested enterprises are permitted to open bank
account abroad in order to meet it’s business demands rising from business scope expanded in both
domestic and foreign markets ( i.e petroleum projects, tourism  and international travel projects).WT/ACC/VNM/9
Page 12
Question 24.  
Please clarify how the Production Protection Fund will reduce adverse effects of market
fluctuations.
Answer:
Vietnam does not have a Production Protection Fund. Instead it maintained the Price
Stabilization Fund, which was set up by the Government of Vietnam in April 1993. This Fund was
financed by collection of certain proportions of differences between world market prices and domestic
prices caused by an unforeseen price fluctuation.  In order to stabilize prices over certain periods, this
Fund mainly performed the function of supporting enterprises by covering a part of banks’ lending
interest rates. That helps these enterprises to prev ent their normal business activities from  any abrupt
change caused by the market price fluctuation. By the end of 1999, the Price Stabilization Fund
terminated its operation and the Export Promotion Fund took over its role. The Export PromotionFund is established pursuant to the Decision No.195/1999/QD-Ttg dated 27 September 1999 of the
Prime Minister. This Fund’s earnings are charges and fees imposed on exports and imports and other
sources in accordance with the Government’s regulation. The goal of this Fund is to financially
support enterprises producing and trading in exported products to cope with adverse fluctuation of
international market prices, improve their competitiveness and to promote exportation.
For further information, please refer to the answer to Question 144.
Question 25.  
Would Vietnam please commit to submit to th e Working Party the draft decree on fees and
charges which contains regulation on the principles and authority to charge fees as soon as it
becomes available.
Answer:
On 30 January 1999, the Government of Vi etnam issued Decr ee No.04/1999/ND-CP
stipulating charges and fees under national budget. The list of surcharges and fees will be submitted to
the Secretariat.
Question 26.  
The excise taxes applied to cigarettes and beer are in clear contrast to Article III GATT 94 as
they tax differently like products. Please subm it to the Working Party a detail plan for the
elimination of the existing discrimination.
Answer:
As indicated in Answer 39 of document WT/A CC/VNM/6 (List of exercise rate applied to
tobacco and alcohol drink), currently there is still discrimination on exercise rate applied to filter
cigarette manufactured substantially by imported materials and those manufactured substantially bydomestic materials. However, in case of beer, exercise rate is applied equally between imported and
domestic products.
Question 27.  
What is the transition period referred to in answer to question 41?WT/ACC/VNM/9
Page 13
Answer:
The transition period is the interim by which priorities may be granted to enterprises coping
with difficulties when the new tax law come into effect enabling them to get along with new tax law
which is less favorable than the previous one.
Question 28.  
Please note that as long as a specific benefit is granted upon condition that a certain amount of
local content is included in the final product, there is an infringement of the Trims Agreement
as specified in the annex to the Agreement. Ha s Vietnam replaced the local content requirement
with the local manufacturing one?
Answer:
Vietnam has been implementing adjustments to convert local content requirements in
automobile and motorbike manufacturing, household electric appliances into purely localmanufacturing requirements.
Question 29.  
Has Vietnam decided whether to specify minimum wages for foreign companies in Dong instead
of US dollars?
Answer:
Yes, as from 1 July 1999, minimum salaries or wages  indicated in the labour contracts of
Vietnamese employees working in foreign invested enterprises established and operated under
Foreign Investment Law in Viet nam are  in Vietnamese Dong.
Question 30.  
Please describe the incentive granted to export -oriented companies in or der to increase earning
foreign currencies?
Answer:
With respect of foreign invested enterprises,  in order to  encourage these enterprises to
produce goods for export, Vietnamese laws and regulations stipulate preferential profit tax (10 per
cent, 15 per cent, 20 per cent) and profit tax reduction or exemption (up to 8 years) to be granted tothese enterprises subject to export performan ce. According to the Law on Amendment and
Supplement of some provisions of Law on Foreign Investment in Vietnam approved by The National
Assembly on 16 May 2000, the phrase “ profit tax” is replaced by “ corporate income tax”
Foreign invested enterprises are allowed to purchase goods not  produced by the enterprise
itself except those under list products prohibited from trading for export to increase foreign currency
earnings.
For domestic enterprises, in addition to the fact that any enterprise which has business
registration certificate is permitted to carry out export-import activities under provisions of
Commercial Law and other related regulations, the government has adjusted export tariff rate of
nearly most of products to 0 per cent. All Enterprises have the right to access Export Promotion Fund
established from January 2000 which is aimed at crea ting favorable conditions, establishing markets
and partially limiting risks for enterprises in export activities.WT/ACC/VNM/9
Page 14
Value-added tax rate for exports is at 0 per cent applicable to all domestic and foreign
invested enterprises. Enterprises are exempted from import duties imposed on materials, inputs for
manufacturing exported products.
In addition, the government still maintains other measures to grant more favorable conditions
for export activities of enterprises.
Question 31.  
We are concerned over the extremely high rate of  Vietnam’s income tax imposed in individuals.
This, in our view, is a major investment disin centive, and the rate for individuals should be
reduced.
Answer:
Individual Income Tax Law of Vietnam give more favourable terms to foreigners than to
Vietnamese people. On 30 June 1999, the Ordinance providing amendments to some provisions ofIncome Tax Ordinance has increased trigger point to taxable regular incomes of foreigners from VND
5 million per month to 8 million per month. Meanwhile, Vietnamese peoples monthly income of more
than VND 2 million are subject to income taxes. Therefore, income tax system of Vietnam offers
foreigners more favourable treatment.
Vietnam began studying and drafting Individual Income Tax under the tax system
improvement program – phase two with a view of removing defects in the current tax system. The set-
out goals of the program are to ensure appropriate incentives to the labourers as well as it’s
compatibility to international customs and practices.
(c) Foreign exchange and payments system
Question 32.  
The requirement that each foreign company sh ould maintain equilibrium between incoming
and outgoing of foreign currencies as pres cribed in Article 33 of the Law on Foreign
Investment, hinders foreign investors’ commercial activities and, as a result, is a major
investment disincentive and will dampen a foreig n investors’ enthusiasm to invest in Vietnam.
Answer:
The regulations requiring foreign invested ente rprises to self balance their foreign currency
requirements as provided for in the article 33 of the Law on Foreign Investment in Vietnam has been
loosened.
The Law on Amendment and Supplement of some  provisions of Law on Foreign Investment
in Vietnam approved by The National Assembly on 16 May 2000 stipulates that foreign invested
enterprises and parties to business cooperation contracts (BCC) are allowed to purchase foreign
currency in commercial banks to finance current transactions and other kinds of transaction providedby regulations on foreign currency. This regulation replaces the previous restriction by The Law on
Foreign Investment in Vietnam which required foreign invested enterprises to self balance their
foreign currency demands. However, the Vietnamese Government only provides the assurance of
balancing foreign currency requirements for some significant important projects under development
programmes of the government in specific periods. The Vietnamese Government provides theassurance of its assistance to balance the foreign currency requirements of enterprises operating in
infrastructure development and other important projects.WT/ACC/VNM/9
Page 15
While facing critical difficulties in the BOP, assurance of balancing or assistance to balance
foreign currency requirements are granted to specific projects which are significantly important or
important to the economy specified by the Vietnamese Government. This measure is applied in other
countries who also face constraints in foreign exchange reserves.
Over the last few years, the Government has made great efforts to improve the foreign
investment climate including the relaxation of requirements on foreign exchange balance. This
process has been conducted continuously along with  the process of reforming the legal framework on
foreign investment since 1990, particularly,
The amended Law on foreign investment in 1990 abolished the requirement on salary/wages
for workers made in Vietnam Dong which originated in foreign currencies.
The amended Law on foreign investment in 1992 supplemented a regulation that allows FIEs
to pay for services such as electricity and water services in Vietnamese Dong and to collect andpurchase goods for export in accordance with the guideline of the Ministry of Trade.
The amended Law on foreign investment in 1992 supplemented enterprises which produce
essential import substitutes into a list of enterprises, which are balanced foreign currency requirement
by the Government.
The Law on foreign investment in 1996 supplemented important projects into a list of
enterprises, which absorb balanced foreign currency requirement by the Government.
Decree No.10/1998/ND-CP dated 23 January 1998 stipulated that enterprises producing
exports shall be supported a part of foreign currency demand by the Central Bank of Vietnam within 3
years from the commencing of operation. Enterprises operating in the fields of services (e.g. tourism,
hotel and office for rent) shall be considered to buy foreign currency by the Central Bank inaccordance with applicable regulations.
Decree no.63/1998/ND-CP dated 17 August 1998 on foreign exchange control and the
Circular providing in detail guidelines of the Decree, FIEs and foreign parties to Business
Cooperation Contract operating in the areas of offi ce, hotel and hospital business shall be allowed to
receive foreign currency from non-residents to pay house and office rental etc.
Most recently, with a view to promote and guarantee foreign investment in Vietnam, the Law
on Amendment and Supplement of some provisions  of the Law on Foreign Investment in Vietnam
approved by The National Assembly on 16 May 2000 has loosened the restrictions on balance of
foreign currency requirements as above described.
With the effort to speed up the process of economic development and trade liberalization,
Vietnam have been gradually creating better favourable conditions for local and foreign investors in
getting borrowings from the bank and loans guarantees, which pave the way for the relax of foreignexchange control and transaction, and widen the list of enterprises subject to be granted the assurance
of balancing foreign currency requirements by the Government in the years to come.
Question 33.  
Vietnam’s answer to Question 17(i) is still unclear. Should we understand that a foreign
business entity is allowed to open some accoun ts in certain branches of authorized banks?
A translation into English of Decree No.63/ 1998/ND-CP should be provided to the WTO
Secretariat for consultation.WT/ACC/VNM/9
Page 16
Answer:
Pursuant to Decree No 63/1998/ND-CP dated 17 August 1998 on Foreign Exchange
Management, issued by the  Vietnamese Government:
- Residents who are foreign invested enterprises operating in Vietnam and having
revenues from current transactions, capital transactions and other lawful revenues inforeign currencies shall be permitted to open and maintain their account in foreign
currencies at authorized banks in Vietnam.
- Non-residents who are foreign economic organizations established and conducting
business operations in foreign countries,  having foreign currencies which are
remitted from overseas  through banks and/or carried in upon entry into Vietnam and
certified by Customs at border check-point , and/or having other lawful sources of
revenue in foreign currencies in Vietnam shall be permitted to open and maintaintheir account  in foreign currencies at authorized banks in Vietnam.
(English version of  the  Decree No 63/1 998-ND-CP in document WT/ACC/VNM/9/Add.1).
Question 34.  
Does the State Bank of Vietnam allow foreign business entities to have the right of a foreign
exchange conversion priority to convert all Vietnamese Dong into a foreign currency upon
request, after having satisfied all the requirements announced by the Ministry of Planning and
Investment?
The certificate issued by the State Bank of Viet nam for the right of foreign exchange conversion
on a case-by-case basis to foreign business enti ties not having the right of a foreign exchange
conversion priority is unreasonable and should be reconsidered.
A translation into English of Circular No.08 /TT-NHNN7, dated 30 Se ptember 1998, should be
provided to the WTO Secretariat for consultation.
Answer:
The Ministry of Planning and Investment shall annually announce the list of infrastructure
projects, other important projects and the list of essential import substitutes, eligible for prioritizedaccess to  foreign currencies. Based on those lists, the State Bank of Vietnam shall issue licenses on
the rights for foreign currency conversion priority to  foreign invested enterprises during the course of
their  operations.
Please refer to the answer 466 (WT/ACC/VNM/6) for the information on subjects who must
sell their foreign currency to commercial banks to  be granted foreign currency conversion rights by
the government.
Law on Amendment and Supplement of some provisions of Law on Foreign Investment in
Vietnam approved by The National Assembly on 16 May 2000 stipulates that foreign invested
enterprises and parties to business cooperation co ntracts (BCC) (without the right for foreign currency
conversion priority) are allowed to purchase foreign currency in commercial banks to finance current
transactions and other kinds of transaction provided by regulations on foreign currency. However,
these enterprises shall not be granted by the Government the right of foreign currency conversionpriority and assurance of balancing foreign currency requirements or assistance to balance foreign
currency requirements.WT/ACC/VNM/9
Page 17
(Circular No 08/TT-NHNN7 – document WT/ACC/VNM/9/Add.1.)
Question 35.  
 Vietnam’s answer to Question 17(iii) is again still unclear. Do the Vietnamese authorities
currently require any authorization, certificate or licence to make a remittance to abroad,
despite Vietnam’s answer that there is no provision restricting remittance to abroad of profit?
Answer:
Pursuant to Decree 12/CP,  18  February 1997 issued by Vietnamese Government, providing
specific regulation on the implementation of the Law on Foreign Investment in Vietnam: After
fulfilling their tax obligations, foreign investors in vesting in Vietnam shall be permitted to transfer
abroad their profits  generated  from  business operations, revenue received from provision of services
and transfer of technology, principal and interest payments of foreign loans during their  course of
operations, invested capital, other sums of money and assets lawfully owned by them.
In order to transfer abroad their profits, foreign investors have to present the following
documents to the Bank:
- Financial  Statement certified by an  audit  agency;
- Memorandum of the Board of Directors  (or Project Management Unit in the case of
business cooperation contracts) on the distribution of  profits (or distribution ofrevenues);
- Certificate of competent tax authorities, which certified that foreign invested
enterprise and/or foreign partner to business cooperation contract has  fulfilled their
tax obligations;
- Statement on liquidation of enterprise and/or business cooperation contract  approved
by investment licence issuing agency (if foreign investors remit overseas their profits
upon termination or dissolution of enterprise).
Question 36.  
 Please specify what exactly is the reference “No.164” in question 17(v).
Answer:
The reference “No 164” in the answer 17 (v) (WT/ACC/VNM/6) should be corrected as
reference No 466 (WT/ACC/VNM/6)
Question 37.  
The Vietnamese measures mentioned in (2) to (5) are all, in our view, possibly inconsistent with
Article XI and note 8 on Article XVI of the GATS. Vietnam should reconsider these measures.
Answer:
At present, the Vietnamese Government is gradually moving toward liberalization of current
transactions, including payment and remittance transactions. The Vietnamese Government shall
consider fully liberalizing current transactions when its economic conditions are suitable.WT/ACC/VNM/9
Page 18
(d) Foreign and domestic investment policies
Question 38.  
Regarding Questions 54 and 107 (WT/ACC/VNM/3). Granting a tax preference upon the
fulfilment of an export requirement is contrary to WTO provisions, most notably Article 3 of
the ASCM Agreement. Could Vietnam please indicate a timeframe for their elimination?
Answer:
The application of preferential profit tax on export performance is an important policy in most
developing countries in order to promote export-oriented industries. Vietnam will continue to
maintain this policy on the position of a developing country with GNP less than 1,000 USD per
capita.
Vietnam is reviewing the existing policy on industrial subsidies by the Government to
identify the measures unconformity with the WTO Agreement on Subsidies and CountervailingMeasures.  The removal of these measures (if any) is subject to the outcomes of accession
negotiations of Vietnam.
Question 39.  
Please update the Working Party on the elaboration of terms and conditions governing the
participation of foreign investors in Vietnam.
Answer:
Please refer to the answer 21.
Question 40.  
Can Vietnam provide a time schedule for the abolition of the discrimination in the standard of
assessment?
Answer:
The issue of gradual elimination of the di scriminatory treatment between domestic and
foreign investors was raised in 1996 during the process of the revision of Foreign Investment Law and
improvement of legal environment of investment including domestic investment.
Particularly, after the Prime Minister issued Decision No.53/1999/QD-Ttg, a number of
investment related fees and charges has been applied equally while the others are being gradually
adjusted  into a commonly applicable level.
Gradual elimination of the discriminatory investment conditions between domestic and
foreign investors is one of the most important issues to be addressed.
Question 41.  
Can Vietnam specify when the amount of the transferred capital would be considered “much
higher” than the initial and re-in vested capital? Why the licence issuing authority should clear
the transfer?WT/ACC/VNM/9
Page 19
Answer:
Article 73, paragraph 3 of Decree No.12/1997/ ND-CP stipulated that when transferring
money abroad, if the amount is higher than initial invested capital and re-invested capital, the
approval from investment licence issuing authority is required. This regulation is aimed at controlling
the remittance of the investor only. If such income  is legally obtained from investment activities in
Vietnam, the investor will be allowed to transfer  the amount abroad by investment licence issuing
authority regardless if such amount is higher than initial capital and re-invested capital. Examination
of legitimacy of the money transferred is used in every country in order to avoid "money laundry" and
to find out illegal income which may be veiled behind the appearance of abroad remittance from
foreign investments.
Question 42.  
Regarding Question 54 of WT/ACC/VNM/6, the aforementioned “Decision of the Minister of
Planning and Investment No.229/1998/BKH-QD”, req uiring an 80 per cent export performance
requirement, should be abolished as soon as possible as it is a major disincentive for foreign
investors which also intend to domestic sales.
Answer:
Vietnam is a developing country faced with a lot of difficulties. Therefore, the development
policy maintains a certain level of protection in favour of several domestic industries and the
development of export activities which create pre-conditions for balancing international payment and
export expansion.
Decision 229/1998/BKH dated 29/4/1998 merely applied for foreign investment projects
which have been licensed after the effective date of the Decision. Otherwise, the export ratio of 80 percent of products is accepted by investors on a voluntary basis. Therefore, it does not violate TRIMs.
Vietnam will continue considering the creation of better conditions for foreign investors by
gradually phasing out the export requirement ratio and adjust the policy, appropriate to the
development needs.
All comments in the question shall be taken in to consideration in policy making process.
(e) Competition policies
Question 43.  
When a law on competition is  expected to be adopted?
Answer:
The drafting of Competition Law is under process. This draft needs to be completed and
submitted to the National Assembly soon.
Question 44.  
Regarding Question 67 of WT/ACC/VNM/6.  The answer to the question should be elaborated
on as the current answer is not clear as to exactly what are “certain indirect measures”, “certain
business areas” and “the legal framework”. A detailed explanation should be provided backed
up with sufficient examples.WT/ACC/VNM/9
Page 20
Answer:
Article IX, Commercial Law stipulates some provisions related to depraved competition
practices subject to prohibition are as follows:
- Business entities  are obliged to provide true and accurate information relating to the
goods and services which they supply.
- Business entities must be responsible for the lawfulness of the goods which they sell
- Business entities are prohibited from:
- Inflating or depressing prices to the detriment of producers and consumers;
- Deceiving or misleading customers;
- Selling imitation goods;
- Using deceptive advertisements;
- Conducting illegal commercial promotion.
Consumers may establish organizations for the purpose of protecting their legitimate rights in
accordance with law.
Where their interests are infringed upon, consumers have the right to lodge complaints against
business entities with the competent state body to institute court action against business entities in
accordance with law.
Although there is not any specific law to regulate competition, many practices are indirectly
regulated.
“Legal Framework” in the answer 160 (WT/A CC/VNM/6) means not contrary to provisions
of laws and regulations.
III. FRAMEWORK FOR MA KING AND ENFORCING POLICIES AFFECTING
FOREIGN TRADE IN GOODS AND TRADE IN SERVICES
1. Power of Executives, Legislative and Juridical Branches of Government
- National Parliament:
Question 45.  
Will the parliament be involved in the process of the ratification and implementation of the
WTO agreement?
Answer:
As stipulated in paragraph 13, Article 84 of the Constitution issued in 1992; Article 12 of the
Law of the Organization of National Assembly; The National Assembly is eligible to approve or
abrogate international treaties to which Vietnam is a signatory or party proposal by the State
President. Paragraph 1, Article 10 of the Ordinance on Conclusion and implementation of an
international treaty, International treaties to be approved by the National Assembly include those:
- related to peace, national security, national borders and territory, national sovereignty,
basic rights and obligations of the people and legal assistance;WT/ACC/VNM/9
Page 21
- have provisions which are not conformed to or  not yet indicated in the existing legal
documents of the National Assembly, Standing Committee of the National Assembly
and the State President;
- are related to treasury budget upon proposal by the Government for approval;
- contain requirement for ratification by the National Assembly.
As stipulated in paragraph 2 Article 12 of the Ordinance on Conclusion and Implementation
of  International Treaties, the State President sh all make decision on accession to international
plurilateral or multilateral treaties on the behalf of the State, international plurilateral treaty containing
provisions which are not in conformity with or not indicated in legal documents of the National
Assembly or Standing Committee of National Assembly, international plurilateral treaty containing
provision requiring approval by the State President, except those are necessary to be submitted to
National Assembly for approval.
Therefore, legal documents for the WTO  accession of Vietnam must be ratified prior the
implementation in Vietnam. The National Assembly has the right to supervise the implementation of
those agreements as well as to  issue necessary legal documents to implement those agreements.
Question 46.  
Which academic qualifications are required for judges in the Vietnamese courts?
Answer:
Pursuant to the provision of Article 37 of Law on the Organization of the People's Court and
Articles No.4, 16, 17, 18 of the Ordinance on Judges and Assessors of the People’s Courts, a judge of
People’s Courts of the Socialist Republic of Vietnam must be titular of Judicial college Diploma or an
Bachelor of Law or higher. He may be required to meet other qualifications if so required by law.
Question 47.  
The three laws, i.e. the Civil Code, the Commercial law and the law on Economic Contracts
“Phap lenh hop dong”, regulate civil and commercial contracts. Should we understand that the
Civil Code is a general contract law whil e the Commercial Law and the Law on Economic
Contracts are special contract laws? How are such laws applicable to the contracts made
between companies in Vietnam, including enterprises with foreign-owned capital?
Answer:
The three laws (the Civil Code, the Commercial law and the law on Economic Contracts)
have different  objects. Therefore, they have different positions and roles in regulating the relations
between products and money in Vietnam.
1. Civil Code regulates civil relations (including contractual civil relations) while the Ordinance
on Economic Contracts regulates economic contractual relations. These two relations areexisting independently (Economic contractual relation is not an integrated part of civil
contractual contract). Therefore, it should not be considered that Civil Code is dominating law
on contractual relations and Ordinance on Economic Contracts regulates special contracts
(economic contract). In short, the relation between the civil contract and economic contract is
not the relation between generality and specificity but two different and equal categories.Therefore, there are Ordinance on Economic Contract (1989) and Ordinance on Civil
Contract (which has been replaced by the Civil Code in 1995) existing at the same time in
Vietnam; There are economic courts to settle disputes on economic contracts existing in
parallel with civil courts to handle civil cases.WT/ACC/VNM/9
Page 22
2. Relations between the Commercial Law and the Ordinance on Economic Contracts is
different from those relations indicated above. According to the Commercial Law,
commercial relations are a group or a part of economic relations. Therefore, their relations are
the relations between generality and specificity  and not equal categories.
3. All business entities in Vietnam, regardle ss of their ownership, are allowed to conclude
economic contracts in accordance with provisions in the Ordinance on Economic Contracts.
When  concluding commercial contract, business entities must comply with all regulation
provided for in the Commercial Law that woul d enable them to apply provisions of the
Ordinance on Economic Contracts to settle arising disputes.
Question 48.  
There is some uncertainty over the definition of the term. “official document(s) ‘cong van’ not
mentioned in the Law on the Promulgation of  Statutory Instruments “Luat Ban hanh van ban
qui pham phap luat”. The “official documents” include  those that should be categorized as legal
documents, e.g.
(i) The “Official document regarding temporary postponement to implement the regulation
on fund preparation by state-owned enterprises on Article 11 of 59CP (6755-KTTH)”
limiting the effects of the relevant government are decrees;
(ii) The official interpretive answered by the Government to questions from lower organs of
the government relating to the applicability of governmental decrees.
These “official documents” are rarely published by the official gazette even though they
substantively regulate the fundamental rights of the people and companies.
Many of “official documents” include substantively important regulations on the rights of
people and companies that should be promulgated, even if not legally required to be
promulgated, in order to be recognized widely by both people and companies.
All governmental organs should be obliged to pr omulgate all “official documents” in order to
fulfill the above task. Furthermore, “official documents” which are largely binding should be
enacted in the form of a law.
Answer:
Pursuant to the Article 1 of the Law on Prom ulgation of  Legal Documents issued by the
National Assembly of the socialist Republic of Vietnam in 12 November 1996 and Article 1 of the
Decree 101/CP dated 23 September 1997 providing guidance on implementation of the Law, “ official
document is not a kind of legal documents so that it shall not be regulated by those two documents
above and be publicized on Official Gazette. Otherwise, there has been any legal document providing
that documents relating to interests or rights of  groups, individuals or companies must  be issued in
the form of legal document and publicized in the public mass media. Therefore, in reality, in the
process of management, sometime and in some places, there will be newly rising issues before
administration bodies. That would require a certain appropriate guidance and adjustments through the
form of official documents which including those documents in the question 19.
Recently, the government and authorities have been carrying a certain activities in order to
gradually adjust policies making process into orderly disciplines. For example, the program of
policies, laws and legal document review by the government and the issuance of the Decree 101/CP
dated 23 September 1997 providing Guidance on the Law on Promulgation of Legal Documents are to
eliminate all current inappropriate or ineffective legal documents; to revise, amend current legalWT/ACC/VNM/9
Page 23
documents to make them more suitable to real ity and jurisdictions; to systemise current legal
documents and publicize to make the current policy system more transparent to everybody. However,
this work is very difficult and complex which require long time and extreme efforts from the
government and related authorities.
Question 49.  
Although some major important laws, e.g. th e law on Foreign Investment and the Law on
Import and Export Custom Duties, do not themselves have any provisions which regulate the
main interests of companies, their detailed en forcement regulations and ordinances, which are
laid down just before enactment of the laws, include important regulations on the vital interests
of companies, e.g. the establishment of a peri od for applying the preferential rates of the
corporation income tax and the abolishment of the schedule of the ordinary customs duties.
Substantial amendments brought about by the enforcement of regulations, undermine thesignificance of the national diet which ex clusively exercises its law-making power and,
subsequently, has a negative influence on the relevant people and companies.
Answer:
According to the Law on Promulgation of Legal Documents issued by the National Assembly
of the socialist Republic of Vietnam in 12 November 1996 and Article 1 of the Decree 101/CP dated23 September 1997 providing guidance on implementation of the Law, the National Assembly is the
only body having the power of making constitution and laws. All legal document issued by lower
agencies must be in compliance with higher agencies. Pursuant to paragraph 2, Article 82 of the Law
on Promulgation of  Legal Documents, in the case of there is a discrepancy between various legal
documents on an issue, higher effective legal document shall be applicable. Therefore, if legaldocuments that were promulgated before the effective date of a law, have provisions contrary to the
law, all such contrary provisions will be abolished upon the law comes into effect.
- Division of authority between central and sub-central form of Government
Question 50.  
Vietnam states in the response to question 73 of WT/ACC/VNM/6 that the Government is
drafting a decree on fees and charges that addresses the rights and sub-central authorities in
this area.
Please provide this decree to the Working Party wh en it is promulgated. Please indicate for the
Working Party the nature of the authority or its limits that is addressed in this decree.
Answer:
On 30 January 1999, Vietnamese Government has promulgated the Decree 04/1999/ND-CP
on fees and charges. This decree has been publicized on Official Gazette.
With a view to uniformly manage all fees acquired to the government fund, the decree
stipulates jurisdictions to regulate fees and charges of authorities such as the Government, Ministry of
Finance, People’s committees of provinces and cities under central authority. These fees and charges
consist of payable fees and charges for the public and administration services.
Question 51.  
Can Vietnam confirm that at present, or subseque ntly in the context of this decree, that sub-
central entities have no autonomous authority ove r issues of subsidies, taxation, trade policy orWT/ACC/VNM/9
Page 24
any other measures covered by WTO provisions a nd that Vietnam will 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 trade
or frontier traffic, special economic zones, and other areas where special regimes for tariffs,
taxes and regulations are established?
Answer:
The assignment of authorisation to different levels of administration is determined by
Vietnam’s laws. However, Vietnam will ensure the uniform application on its commitments upon
accession to WTO.
Question 52.  
Does Vietnam’s law currently provide that prov isions of the international agreements and
treaties ratified by the State President or the National Assembly, as Vietnam outlines in the
response to question 70, will have the force of law in Vietnam whether or not there is
conforming legislation.
Answer:
Most of the legal regulations promulgated by the State of Vietnam e.g. the Civil Code,
Commercial Law, Civil Aviation Law stipulate that international treaties being effective and ratifiedby the State President and the National Assembly shall be applied in the whole territory of Vietnam.
The provisions of the above treaties shall prevail in case of in conformity with the Vietnamese
regulations.
Question 53.  
Can Vietnam confirm that, after accession, when informed of a situation where WTO
Provisions are not being applied or are applied in a non-uniform manner, the central authorities
will act to enforce WTO provisions without requiring affected parties to petition through the
courts?
Answer:
After accession, all such notification will be considered carefully and the Vietnamese
Government will implement necessary measures as to carry out its obligations if so required by the
WTO regulations and the obligations of Viet nam stipulated in the accession Protocol.
- Any Legislative Programmes or Plans to Change the regulatory Regime
Question 54.  
Prior to the next Working Party, we would appreci ate a list of the legal instruments enacted, in
the process of legislative enactment, in draft or being prepared those address WTO issues. This
should include information on th e WTO issues being addressed, where the legal instrument is in
the process of enactment, and the date that Vietnam believes it will be enacted in law.
Please  provide copies of all such legal instrument for the Working Party review.WT/ACC/VNM/9
Page 25
Answer:
Legal regulations which were promulgated, in draft or being drafted, which address WTO
issues, has been listed in the legislation program of the 10th session of the National Assembly.
Vietnam will provide to the Working Party with this legislation program.
Followings are drafts of Laws and Ordinances addressing WTO which have been adopted
among the Laws and Ordinances included in the legislation program of the 10th session of the
National Assembly:
- Enterprise Law, promulgated in June 1999;
- Ordinance on Consumers Ri ght Protection; April 1999
- Tourist Ordinance, February 1999;
- Ordinance on commercial bills;
- Ordinance on Goods Quality (revised);
- Ordinance on Measurement (revised).
The following Laws and Ordinances submitted by the Government to the Standing
Committee of the National Assembly for consideration in the 2000 legislation program:
- State Enterprise Law;
- Law on Amendment of and Addition to a Number of Articles of the Commercial
Law;
- Law on Amendment of and Addition to a Number of Articles of the Law on Foreign
Investment in Vietnam;
- Customs Law;
- Insurance Law;
- Bidding Ordinance;
- Ordinance on Fees and Charges;
- Ordinance on entry to, exit from, residence and travel of foreigners in Vietnam
(revised);
- Ordinance on plants protection and disease inspection;
- Foods Ordinance.
- Description of Judicial, Arbitral or Administrative Tribunals or Procedures
Question 55.  
The responses to question 74-78 and 180 of WT /ACC/VNM/6 seem to confirm that traders may
appeal administrative decisions on issues cov ered by the WTO either administratively within
the Ministry of Jurisdiction or to an independent tribunal, but not both. Can Vietnam confirm
or clarify this situation.
Answer:
According to the provisions of the Ordinance on Procedures of Settlement of Administrative
Disputes (OPSAD) adopted by the Standing Co mmittee of the National Assembly of Vietnam on
21/5/1996 and the revised version of this Ordinance issued on 25/12/1998, person in subject is entitled
to submit an appeal to an initial competent authorit ies as stipulated in Articles 19 – 25 of the Law on
Complaints and Accusation adopted by the National Assembly on 2/12/1998 before submission of
such appeal to an authority of higher level. If the settlement of such appeal is not implemented or not
satisfied by the person in subject after expiration of initial settlement duration as stipulated in Article
36 of the Law on Complaints and Accusation, person in subject is entitled to appeal to a higher
competent authority according to the Law on Comp laints and Accusation or to bring the case toWT/ACC/VNM/9
Page 26
administrative court according to the above-mentioned OPSAD. The establishment of two separate
settlement procedures as referred to above not only allows person in subject to select an appropriate
settlement procedure, but also facilitates the settlement in a short time.
Question 56.  
We note that most WTO members allow for the full use of administrative appeals prior to
recourse to the courts, and that participation in  one process doesn’t preclude recourse to the
other.
This can be useful to the government, in that th e issue is thoroughly ex amined prior to engaging
the judicial branch. Does Vietnam intend to review this situation with a view to revising its
procedure?
We urge Vietnam, in the context of its accession to consider the advantages of allowing to both
avenues of appeal.
Answer:
It is essential that the State should establish different mechanisms of disputes settlement so
that person in subject can choose the most suitable mechanism for himself and proper rights and
interests of person in subject should be equally a nd quickly considered in each mechanism. With this
view, every country may set up its own dispute sett lement mechanism that is appropriate with the
development conditions and situation as well as common laws of such country. That is why not all the
WTO members have the same disputes settlement mechanism, which “allow full use of administrative
appeals prior to recourse to the court”.
However, this question has raised an important issue to be considered in the process of
administrative and judicial reform in Vietnam at this time.
Question 57.  
How many cases have been appealed befo re the court in accordance with the Law on
Complaints and Accusation of 2 December 1998 or the Ordinance on Settlement of
Administrative Disputes of 1996/1998?
Answer:
 According to statistic information of the Supreme Court, the number of administrative
disputes settled from 1996 to 1998 is as follows:
1996: handled 17 cases but transferred to 1997 for settlement;
1997: settled 88 cases including 17 cases transferred from 1996;
1998: settled 282 cases;
1999 (first 9 months): settled nearly 400 cases.WT/ACC/VNM/9
Page 27
IV. POLICIES AFFECTING TRADE IN GOODS
1. Import Regulations
(a) Registration Requirements  for engaging in importing
Question 58.  
Do changes in the scope of business have to be registered prior to introduction? Is it correct that
while Vietnamese companies can import and ex port all goods, foreign one can only import
goods that serve for their investment objectives?
Answer:
Pursuant to provisions of Article 61 of th e Investment Law in Vietnam "any change to
business objective of an enterprise must be approved by competent authority".
According to provisions of Article 3 and 8 of the Ordinance No.57/1998/ND-CP, Vietnamese
traders are only permitted to export and import registered products as indicated in Certificate ofBusiness Registration except those fall in the list of import-export prohibited products
Foreign invested enterprises are exempted from import duties for some items as stipulated in
Article 476 of the Foreign Investment Law in Vietnam. Please refer answer 145 for other items
serving investment operation of the enterprises are exempted from import duties as provided for in the
Law on Export and Import Duties.
Question 59.  
Regarding Questions 102 and 104. Please specify to the Working Party those countries, which
have “special preferential import tariff agreements” with Vietnam. detail what special
privileges above MFN status these agreements entail, and list for each country enjoying such
preferential of “special” status the products (s) or sector (s) these agreements cover. Finally,please detail to the Working Party what pe rcentage of overall trade with each of the
preferred/special countries is covered by the special preferential import tariff agreement.
Answer:
At present, special preferential import tariff of  Vietnam is applicable to ASEAN countries and
European Union .
For ASEAN countries: in order to promote ASEAN free trade area (AFTA), Vietnam
committed to grant special preferential impor t tariff to ASEAN countries under CEPT/AFTA
program.  The ASEAN regional agreements have been already submitted to WTO by ASEAN
Secretariat under Article 24 of GATT 1994.
For EU countries: According to the Trade Agreement on Textile and Clothing between
Vietnam and EU, Vietnam must reduce tariff on a num ber of EU textile products imported to Vietnam
during the period of 10 years starting at 1st January, 1996. On the other hand, EU  committed toincrease import quota for Vietnamese textile products.WT/ACC/VNM/9
Page 28
Question 60.  
Does Vietnam allow both foreign and domestic individuals to import for their own use? For
resale to other individuals or firms? If so what are the criteria? If not, when does Vietnam plan
to extend trading rights to include individuals?
Answer:
Both foreign and domestic individuals are allowed to import goods, which are not subject to
import restriction, for their own use by non-trade mean. Such imports are subject to the same taxation
system as that applied to goods imported by trade mean.
Imports of the goods subject to QR or non-automatic licensing system shall depend on import
licensing on case by case basis. After completing import procedures, the owner of the imported goods
is permitted to sale those goods to the others.
According to relevant regulations, only legal entities are permitted to import goods, by trade
mean, for business purposes. Individuals may establish private enterprise to obtain legal entity status
in order to enjoy the said right.
Question 61.  
What are requirements for a firm registered to manufacture in Vietnam to alter its registration
to include the right to trade? Which Ministry  is responsible? What criteria are applied?
Answer:
100 per cent Vietnamese owned enterprises are entitled to import and export goods in
accordance with the provisions in their Business Registration Certificate. When intending to amend
the Business Registration Certificate for additional import-export trading right, the above enterprises
have to apply with local Department of Planning  and Investment, National Corporations belonging to
the Government also have to comply with the same procedure but application shall be submitted to
the Ministry of Planning and Investment.
With respect to goods and sectors requiring conditional licensing, the application of the above
enterprises shall be approved in a short time when respective conditions are met.
Upon granting investment licence, foreign inve sted enterprises (FIE) are permitted to import
those goods as stipulated in their investment licenses for their manufacturing and business purpose
upon granting investment licence. FIE are not permitted to import goods for distribution in Vietnam.
FIE are permitted to purchase goods in Vietnam except for those listed in the Annex 2 attached
herewith for export.
Question 62.  
Vietnam state that it does not encourage forei gn investment in pure trading without local
production or manufacturing base. This policy appears to preclude foreign companies fromimporting and exporting products other than importing of inputs or exportation after
processing. Are whole foreign-owned companies allo wed to participate in trading activities for
marketing or re-sale?
Answer:
Please refer to the answer to Question 80 of WT/ACC/VNM/6.WT/ACC/VNM/9
Page 29
Question 63.  
Can foreign joint-venture businesses obtain licenses to import in exactly the same way as
domestically owned enterprises?
Answer:
No, foreign joint venture enterprises are permitted to import those goods as stipulated in their
investment licenses for their manufacturing and business purpose. Local enterprises are permitted to
import goods in accordance with the provisions in their Business Registration Certificates except for
the goods subject to prohibition and conditional import regulations.
Question 64.  
Do any foreign-owned trading enterprises exist in Vietnam? If not, when does Vietnam plan to
allow foreign owned trading companies?
Answer:
Currently, there is not any wholly foreign owned enterprises involving in trading in Vietnam
because this activity is not encouraged by the Law on Foreign Investment in Vietnam.
According to Article 39 of the Commercial Law of Vietnam, branches of foreign traders are
permitted to be established under decision of the Government of Vietnam. However, the Government
of Vietnam still has not allowed to establish foreign trading branches so far.
Question 65.  
Vietnam states that with regard to the fields which foreign investments are conditional, the
investor has to meet certain criteria as define d by the State. Once investment Licence has been
awarded, these enterprises can import, export go ods which serve their investment objectives as
specified in the investment licence.”
Does a foreign invested firm have the right to import for their own use, e.g. in manufacturing?
Can they register to import for further distribution?
Answer:
Foreign invested enterprises are entitled to import goods for their manufacturing and business
objective in accordance with the provisions in their investments and are not permitted to import goodsfor distribution in Vietnam.
Question 66.  
Vietnam lists a variety of goods which foreign invested enterprises are prohibited from
importing. The list of exception to trading ri ghts is very long. While these products are
currently listed at four digits HS level, we reque st that Vietnam provide a complete list with the
goods corresponding HS categories at six or ei ght digits, depending on the scope of the
requirement. We understand that this list cover an extensive amount of goods, but it isnecessary in order to thoroughly determine Vi etnam’s compliance with the rules of the WTO.WT/ACC/VNM/9
Page 30
Answer:
Currently the above-mentioned list is provided at four digits HS level and including all tariff
lines at six digits under such headings. More details on the exceptions are not available. Vietnam will
try its best to provide a list at more detailed HS level as required by the WTO members.
Question 67.  
Concerning the response in WT/ACC/VNM/6 to question 150, we note that all items designated
to be of special importance to the national economy are limited to import by” specialized
business enterprises”. Vietnam has confirmed that Annex 3 of WT/ACC/VNM/3/Add.1 contains
all possible items that fall under the category of “special importance to the national economy”
Can Vietnam provide information on the frequency and procedure of adding and deleting items
to/from this list? On what timetable does Vi etnam intend on open its import market and
provide equal trading rights for these items to all importers equally?
Answer:
Required information will be provided as soon as it is available.
Question 68.  
Vietnam states in question 79 that “ the Vietnamese Government does not limit or otherwise
intervene in the scope of business as opted by  Vietnamese enterprises.” Later in the same
paragraph, Vietnam states that “ other than the prohibitive fields, the founders  of the
enterprises are free to define the scope of th eir business.” Does this mean 100 per cent wholly
owned Vietnamese enterprises are automatically i ssued foreign trading rights on request? If not
what criteria, other than listed in the reply to question 79, need to be met?
Answer:
Except for prohibited sectors, 100 per cent Vietnamese owned enterprises are entitled to
determine their scope of activities by their own discretion. Registration in conditional business sectors
must satisfy respective conditions, which are publicly promulgated.
Question 69.  
Concerning the response in WT/ACC/VNM/6 to question 162, we applaud Vietnam’s decision to
eliminate the import-export Business Licence by  virtue of Government Decree No 57/1998/ND-
CP dated 31 July 1998 which was effective 1 September 1998. However, only 100 per cent
wholly-owned Vietnamese enterprises are not limit ed in their scope of business. Does this mean
that for the importation of the same goods, a non-100 per cent Vietnamese owned firm would
need an import licence whereas the 100 per cent Vietnamese owned firm would not? If so this
policy violates the national tr eatment principles of the WTO.
Answer:
The Vietnamese laws currently stipulate some restrictions in trading right including import
trading right of foreign enterprises. Vietnam will pr ovide information on current restriction policy for
the purpose of transparencyWT/ACC/VNM/9
Page 31
(b) Characteristics of national tariff
Question 70.  
Regarding Question  89. Is it confirmed that the HS Convention will come into force in Vietnam
on 1 January 2000?
Answer:
Harmonized System Convention came into for ce from 1 January 2000 in Vietnam. However,
as a developing country, Vietnam will fully comply with  the HS Convention within 5-year period as
of 1 January 2000.
Question 71.  
Please provide an electronic version of Vietnam’s current tariff schedule through the Working
Party on Vietnam prior to the next working party.
Answer:
As mentioned before, Vietnam’s current tariff schedule is established basically corresponding
to HS96 at 6 digits level and Vietnam is together with ASEAN countries establishing ASEAN tariff
schedule (AHTN) corresponding to HS96. Thus, we can confirm that Vietnam is actively carrying out
technical preparation appropriate with economic situation and management ability so as to implement
AHTN and HS96 in a short time. However, Vietnam is entitled to enjoy 3 years of transition periodfor implementing of HS Convention. As the tariff codes of current Vietnam’s tariff schedule are
amended currently, the software schedule is not av ailable at this time for providing to the Working
Party.
Question 72.  
Please provide the Working Party with a specific timeframe in which a tariff schedule based on
HS 96 nomenclature will be implemented.
Answer:
Please refer to the answer to Question 71 above.
Question 73.  
Per the response to the question 88 of WT/ACC/VNM/6, we seek information as soon as possible
from Vietnam, and if possible prior to the next Working Party, on how Vietnam’s tariff reform
process will affect autos, including what new ta riff rates can be expected on automobiles and
automobile parts
Answer:
Since issuance of the import and export tariff schedule together with Decision No.
1803/1998/QD/BTC dated 11/12/1998 which came into ef fect from 1/1/1999 up to now, there is no
change in import tariff rate imposed on automobiles and automobiles parts.WT/ACC/VNM/9
Page 32
Question 74.  
The response to question 88 of WT/ACC/VNM/6 state that Vietnam’s import statistic by
products and by tariff lines for the year 1997 are not yet available. When does Vietnam
anticipate this information be available?
Answer:
Official data on Vietnam’s international merchandise trade statistics of 1997 were compiled
and disseminated by General Department of Statistic in April 1999. Detailed data on each imported
commodity by 6 digit HS code in electronic version will be provided upon specific request.
Question 75.  
Per the response to question 102 of WT/ACC/VNM/6, please clarify the following point on tariff
changes under the Export-Import Tariff Law: Vietnam states that goods will be subject to
additional import duties in the case that  goods originating from the countries which
discriminate goods originating from Vietnam on the basis of tariffs or other measures. What
other measures is Vietnam referring to beside discriminatory tariff?
Answer:
According to the current Law on import and export tariff, Vietnam may impose additional
import duty for goods originating from the countries which discriminate goods originating fromVietnam on the basis of tariff or other measures. “Other discriminatory treatment measures” may be
any measure which another country applied for discriminatory purpose in order to cause barrier to
Vietnamese originated goods to that country’s market.
For the goods originating from the countries which discriminate goods originating from
Vietnam, Vietnam may apply other trade measures (detailed regulation is not available now) apartfrom additional import duty on case by case basis and depending on how serious is the discriminatory
treatment imposed by other countries on the goods originating from Vietnam.
Question 76.  
Vietnam is in the process of amending its cu stoms duties in accordance with the conditions
indicated by the IMF. The current situation, together with the detailed action-plan foramending customs duties, should be informed. Is the new customs regime consistent with the
WTO Agreement?
Answer:
The tariff schedule of Vietnam has been modified by the Ministry of Finance. It is expected to
complete the new tariff schedule in correspondence with HS Convention.
With respect to customs valuation, the current valuation system of Vietnam will be changed
gradually to be in conformity with the GATT Valuation Agreement in the coming years. It means thatVietnam will include the valuation principle and methods of CVA in Customs Law, at the same time,
the number of commodity groups subject to minimum price for customs valuation will be reduced and
finally eliminated.WT/ACC/VNM/9
Page 33
Question 77.  
Should we understand that Annex 4 of WT/ACC/VNM/6/Add.1 is the exhaustive list of items
subject to export duties? If not, such exhaustive list should be provided.
Answer:
The Annex 4 of WT/ACC/VNM/6/Add.1 is the current exhaustive list of commodities subject
to export duties.
(d) Other duties and charges, specifying any charges for services rendered
Question 78.  
Has Vietnam completed the study on the implemen tation of fees and charges compatible with
WTO rules?
Answer:
On 30 January 1999, Vietnamese Government promulgated Decree No.04/1999/ND-CP on
fees, surcharges under national budget. The Decree was built to uniformly manage on fees and
surcharges and to ensure soundness and legitimacy of all kinds of fees and surcharges. According to
the Decree, authorities at central level including the Government, Ministry of Finance and local level
authorities which are provincial people's Committees are responsible of state management on fees and
surcharges.
To implement the Decree No.01/1999/ND-CP abov e, Ministry of Finance collaborated with
other ministries, agencies under the government and People's Committee of provinces and cities under
central control to examine and supervise the compliance of these and other authorities in all aspects of
implementation of the decree such as jurisdiction a nd basis for issuance of documents by competent
agencies to provide in details rates, collection organization, use and management of collected funds.The above process is ongoing.  Ministry of Finance has promulgated several decisions on fees and
surcharges tariff and  mechanism for managing fees and surcharges collection in fields of food safety
and hygiene; plant protection and quarantine; health care, fishery sources protection and fees for
issuance of certificate of technical examination and quality of  vehicle means.
Question 79.  
Please provide a detailed action plan for the elimination of the import surcharge before the
accession to the WTO.
Answer:
Both applicable import surcharges and tariff will  be issued in market access negotiation in the
context of WTO accession of Vietnam.
Question 80.  
What is the market price whose fluctuation over 20 per cent determines the increase of the
“customs fees”. How this practice can be deemed consistent with Article  VIII GATT 94?WT/ACC/VNM/9
Page 34
Answer:
Customs fees are stipulated in Circular  No. 31/TTLB/BTC-TCHQ dated 7th April 1993.
According to this circular, when the market price fluctuates over 20 per cent (price index is equal to
inflation rate), Ministry of Finance in collaborat ion with General Department of Customs of Vietnam
will adjust the customs fees in comp liance with the situation accordingly.
This practice is consistent with Article VIII GATT 94 It’s goal is to compensate the loss
caused by price fluctuation to recover the cost of services rendered by Customs Administration.
Question 81.  
Please provide the text of legislation that cover Vietnam “custom fees”. Please include the
administrative “guidelines” that are used to adjust these fees.
Answer:
Current legal documents stipulating fees and charges under State budget include:
- Decree No.16/1999/ND-CP dated 27 March 1999 of Government stipulating customs
procedure and customs charges.
- Decree No. 04/1999/ND-CP dated 30 Janua ry 1999 of Government stipulating fees
and charges under  State budget.
- Circular No. 54/1999/TT-BTC dated 10 May 1999 of the Ministry of Finance guiding
the implementation  of Decree No.04/1999/ND-CP.
General Department of Customs is co-ordinating with other state competent authorities to
promulgate legal documents stipulating in details customs charges in accordance with the above-
mentioned legal documents.
Question 82.  
Per response to question 111 of WT/ACC/VNM/6 and the information in Annex 1 and 2 of
document WT/ACC/VNM/6/Add.1, Vietnam has list the level of each fee except for the fee for
“goods sealing” as mentioned in Vietnam’s answ er to question 230 (in WT/ACC/VNM/3). Please
provide all fee for “goods sealing”. Also please provide the Working Party members with a
description of the accompanying services rendered for each of the fees listed in Annex 1 and 2 ofdocument WT/ACC/VNM/6/Add.1.
Answer:
The Government has just issued Decr ee No. 04/1999/ND-CP dated 30/1/1999 on fees,
charges under state budget. Vietnam can provide required information only after issuance of legal
documents stipulating customs charges in details.
Question 83.  
In the response to question 112 of WT/ACC/VNM/6, Vietnam referred to a list of a sensitive
agricultural products that have 23 tariff lines (at 6 digit level) which “will be totally phased in
the inclusion list by the years 2013 with final bo und rate of 5 per cent”. In response to Working
Party questions on this list, Vietnam has referred Working Party members to its commitments
under the Agreement on Common Effective Pref erential Tariff (CEPT) implementing the
ASEAN  Free Trade Area. Further, the WTO has been   notified of this agreement in accordanceWT/ACC/VNM/9
Page 35
with to Article XXIV of the GATT. However, it is  not made clear in this statement if concerns
by the Working Party have been adequately addressed.
Has Vietnam provided a copy of this list to the members of the Working Party?
Is there any overlapping of products on this list with products on the different lists Vietnam has
already provided (in WT/ACC/VNM/3/Add.1), like the list in Appendix 7 (list 1: ProductsSubject to line management and list 2: Products Subject to Import Restriction)?
Answer:
Before 1995, sensitive unprocessed and high sensitive agricultural products were not included
in CEPT/AFTA. After 1995, ASEAN decided to include these products in the tariff reduction
program under CEPT/AFTA. Since that time, ASEAN countries have established a special
mechanism for tariff reduction and elimination of  NTBs imposed on the above-said products. In
9/1999, the Protocol on special agreement on sensitive and high sensitive agricultural products wassigned (31st AEM), according to which, Vietnam committed to reduce tariff rate for such products to
0-5 per cent by 2013.
Due to the splitting of tariff codes in the process of establishment and completion of tariff
schedule, total tariff lines covering the list of sensitive agricultural products of Vietnam are 51, in
which the following  commodities are identical with those listed in Annex 7 ofWT/ACC/VNM/3/Add.1:
List 1:  Tariff line: 0407 00 10
             Commodities group: 0602
List 2:   Tariff lines: 1701 11 00, 1701 91 00, 1701 99 10, 1701, 99 90
Question 84.  
Can Vietnam confirm that it intends to bind sensitive agricultural products at 5 per cent by the
year 2013?
Answer:
Vietnam will fulfill properly her obligations of an ASEAN member. As the WTO members
may be aware, the above regional commitments shall only be effective on reciprocity basis betweenmembers signing the same regional agreement. They are applied on non-MFN basis to outside
countries under the provisions of Article XXIV of GATT.
Question 85.  
The higher fees for fundamental infrastructure in Vietnam in comparison to that in other
countries, diminish the value of the Vietnam’s labour competitiveness, e.g. the fee for Saigon
Port is approximately three times higher than that of Bangkok Port. We request that the fees be
drastically reduced in order to increase foreign investment in Vietnam.
Answer:
Vietnam will take this comment for reference in the process of policy making and
implementation.WT/ACC/VNM/9
Page 36
(e) Quantitative import restrictions, including prohibitions, quotas and licensing systems
Question 86.  
Regarding Question  15. Please specify when Vietnam intends to dismantle its current system of
import and export quotas in accordance with GATT 94 rules.
Answer:
Over the last few years, Vietnam has significantly eliminated almost all items subject to
import and export quotas. Please refer to Annex 1 on Non-tariff barriers attached herewith.
As from 2000, Vietnam begin remove or loosen certain existing quantitative restrictions. The
follow up steps will, however, be subject to the practical impacts on domestic industry.
Question 87.  
We seek from Vietnam the commitment that, upon accession to the WTO, it will only maintain
those import restrictions that are justified under WTO rules. We would also like to note thatimport quotas are not justified under WTO rules. Could Vietnam provide a clear timetable for
the elimination of those measures th at are inconsistent with WTO rules?
Answer:
Please refer to the answer 86
Question 88.  
It will be useful if Vietnam could submit a table of the goods currently subject to any type of
import restriction specifying the HS number of the good and the WTO justification for the
restriction.
Answer:
List of products being subject to import restrict ions is provided in Annex 1 of this document.
HS code for products in this list is not available. Please refer to the answer 86.
Question 89.  
We seek a report from Vietnam, for circulati on prior to the next Working Party meeting,
detailing the current status of all quotas, bans, prohibitions, and other quantitative restrictions
on imports and its plans for the removal in the context of WTO accession.
Answer:
In addition to the commodities listed in WT/ACC/VNM/3/Add.1, the import prohibition list
of Vietnam is amended with the following commodities: narcotics, reactionary and depraved cultural
products,  morally pernicious toys,  firecrackers (except for signal-fire used for maritime safe purpose
and other purposes as required properly by the Prime Minister), cigarettes, left-hand automobile,
products made from materials under amphibole group , second hand internal combustion engine under
30 CV.
The following commodities are subject to import li censing: gasoline, fertilizer, 2 wheel, 3 wheel-
motorcycle and completed components, electric fan used in family, ceramic and granite tiles,WT/ACC/VNM/9
Page 37
porcelain, ceramic and glass consumer goods including sanitary wares, packaging finished plastic
products made from finished plastic, non-complete d frames of 2, 3-wheel motorcycle, NaOH liquid,
bicycles, refined vegetable oil, DOP, clinker, black cement, refined and raw sugar, automobile, some
types of construction steel, various kinds of papers, 1,5 mm - 7 mm white and clear floating glass.
Quota is imposed on gasoline, fertilizer, construction glasses, spirits of more than 30o.
 The elimination schedule of the above restrictions will be listed in the Initial Offer in goods.
Please see the attached Annex 1 for more details
Question 90.  
In the context of providing this report, we reque st that Vietnam provide a single comprehensive,
consolidated list of its current quantitative import  restrictions, including all bans, quotas, and
restrictive licensing requirements. Vietnam should provide information on import quotas for
the years after 1995.
Answer:
Please refer to the answer 89.
Question 91.  
Please detail which products have been removed from Vietnam’s quantitative restriction list as
well as any that remain subject to the restriction.
Answer:
Concerning Vietnam’s current quantitative restriction list, please refer to the answer 93.
Products which have been removed from quantitative restriction list notified in WT/ACC/VNM/3
consists of: certain kinds of cements, second-hand clothes, remnants, aircraft gear-box.
Question 92.  
Please provide the HS number, description, the type of restrictions, and the agency or Ministry
responsible for control of these goods.
Answer:
Please refer to Annex 1 attached hereby.
Question 93.  
Vietnam should also provide for each measure cu rrently in place a timetable for its elimination
or revision to a specific WTO consistent altern ative, or appropriate WTO justification for
retention of the measure.
Answer:
Please refer to the answer 89.
Other details will be notified promptly after the programmes of adjusting trade policy
measures being completed.WT/ACC/VNM/9
Page 38
Question 94.  
Regarding Questions 86 and 87 in WT/ACC/VNM/6, Could Vietnam elaborate on what factors
will be taken into account when making decisions regarding the extent and duration of each
import restriction?
Answer:
The extent and duration of import restriction of Vietnam are decided  depending on Vietnam’s
economic development objectives and the improvement of domestic enterprises’ competitiveness to
respective imports in economic transitional period. During this period, Vietnam will gradually move
the import restriction in line of WTO regulations.
Question 95.  
Please include in this list “depraved and reactio nary cultural products, morally pernicious toys,
some used consumer goods, right hand drive vehicles” and any other prohibited items notformerly included.
Answer:
Technically, it is impossible to describe shapes, circumstances of injury causing, violence
excitement or other bad consequences of a partic ular product. Products: toys in shape of weapons,
pictures and photographs, films which may excite violence or sex have to be approved on case by casebasis.
Question 96.  
Can Vietnam provide a list of all products which it considers “culturally illegal” and “morally
pernicious” in an effort to provide importers with more information on Vietnam’s import
regime? Also please provide clarification on what Vietnam considers a “toy” (i.e firecrackersand guns are not generally considered “toy”). For those products listed as “toys” please indicate
if they are plastic, wooden, etc.
Would Vietnam please provide a comprehensive list of all “toys and cultural products” covered
by its import prohibition policy? When will HS codes for these products be available for
Working Party members’s review?
Answer:
Please refer to the answer 95
Question 97.  
Concerning the response in WT/ACC/VNM/6 to question 122, what is the “general mechanism”
that Vietnam applies to all consumer goods?
Vietnam states that consumer goods, including  milk powder and condensed milk, “are subject
to Ministry of Health’s inspection for the purpose of food hygiene and safety standards. Theyare not subject to any other import restriction measure.” What are the standards the Ministry
of Health uses to inspect food and check its hygiene? Does Vietnam define “hygiene” in this
context based on scientific standards?WT/ACC/VNM/9
Page 39
Answer:
The “general mechanism” applicable to all consumer goods which have effect to health,
production and environment is as follows: the producer must publish specifications of their products
by registering at competent institutions (according to the Act of Quality of Goods); when exported or
imported these goods are subject to inspection by the appointed institutions.
Consumer goods, including milk powder and condensed milk in annual Registration list
established by Ministry of Health and the list of imported and exported foods subject to inspection
established by Ministry of Science, Technology and Environment must be checked for hygiene and
safety to protect consumers. They are not subject to any other import restriction measure.
Vietnamese Standards (TCVN), hygiene and safety requirements established by Ministry of
Health (Decision 867/1998/QD-BYT dated 4/4/1998) a nd Codex standard are used where appropriate.
The hygiene and safety standards of Vietnam based on the standards of Codex and other
developing countries.
Information concerning TBT, SPS are available at respective agencies.
Question 98.  
Vietnam has stated that its list of prohibited imported goods is “ subject to prior approval from
the Prime Minister on a case-by-case basis”. Is there a process, including a call for comments,
that supports the Prime Minister’s decision? Are importers granted access to the Prime
Minister’s Approval process?
Answer:
Prime Minister approves imports or export under the list of prohibited imported goods based
on consultation with relevant Ministries. Importers could reflect their ideas to the organism in charge(for example: Ministries, Provincial People’s Committee). But they do not have direct access to the
Prime Minister’s Approval process.
Question 99.  
Vietnam states “that local manufacturers are not allowed to produce arms and toxic chemicals
if approval from the Prime Minister is not obtained.” Vietnam also states that “ the restrictionsreferred to in the question are only applied to imports”. This latter statement seems to
contradict the former. Are such restrictions, in fa ct, only applied to imports, or do they apply to
the same goods domestically produced? if no t such restrictions need to be uniform in
application. Does Vietnam have any domestic producers of these products?
Answer:
The production of above mentioned products have to be licensed by competent agency subject
to the product’s nature, utility and toxic effects.
Question 100.  
Concerning the response in WT/ACC/VNM/6 to question 129, we appreciate Vietnam’s
inclusion of Annex 5 in WT/ACC/VNM/6 which clarifies previous Working Party questions
regarding Annex 3 to WT/ACC/VNM/3/Add.1 which lists goods subject to import licenses.
Beside import licensing, are consumer goods subjects to any other form of restriction?WT/ACC/VNM/9
Page 40
Answer:
Recently, in addition to import licensing system applicable to consumer items, (please refer to
Annex 1 for updated list of goods subject to import licensing) enterprises importing consumer items
are also required to self balance their demand for foreign currency and not allowed to use deferred
payment.
Question 101.  
Concerning the response in WT/ACC/VNM/6 to question 130, at what time does Vietnam apply
“time-limited restriction in agriculture?” Can Viet nam list all agricultural products that would
be subject to additional import restrictions?
Answer:
As soon as trade policy adjustment programmes finished, the above information will be
submitted to  the Members.
Question 102.  
Concerning the response in WT/ACC/VNM/6 to question 137, we note that Vietnam has
confirmed that it does not prohibit the import of pharmaceuticals, and that Vietnam updates
annually its list of import prohibited goods. Can Vietnam provide the Working Party with a list
of drugs it considers “narcotics”?
Answer:
Please refer to Annex 3 attached hereafter.
Question 103.  
Concerning the response in WT/ACC/VNM/6 to question 143, does Vietnam have a time-frame
for the removal of import restriction on vehicles?
Answer:
Up to now, time to remove import restriction on car has not been determined. Requested
information will be submitted to the Working Party as soon as possible.
Question 104.  
Concerning response in WT/ACC/VNM/6 to question 153, when does Vietnam anticipate having
an applicable table listing items subject to impo rt licensing that is more permanent that the
current list in WT/ACC/VNM/3/Add.1, Annex 3? Please provide the corresponding
Harmonized Tariff Schedule numbers for the items listed either in the aforementioned
document, or the new document replacing WT/ACC/VNM/3/Add.1, Annex 3?
Answer:
Vietnam recognize the need of improving import licensing mechanism and updating
information as soon as possible.
Vietnam will supply respective HS code of products under above list as soon as
Nomenclature of Import – Export as per HS 1996 is published.WT/ACC/VNM/9
Page 41
Question 105.  
Concerning the response to question 157 (WT/ACC/VNM/6), please list the international
environmental conventions Vietnam is a party t o, and the rules and standards it specifically
applies when requiring licenses on unprocessed wood and forestry products?
Please further explain the rationale behind the licence requirement for the import of "complete
equipment for forestry production and wood processing industry" based on " management of
quality and standards of imported technology"?
Answer:
List of international conventions on envi ronment to which Vietnam is a signatory:
- Convention on World Cultural Heritage and Natural Resources Conservation signed
on 19 October 1987;
- Convention on Wetland of International importance, especially of Waterfowls Habitat
(Ramsar), signed  on 20 January 1989;
- Convention on International Trade in Endangered Species of Wild Flora and Fauna
(CITES), signed 20 January 1994;
- Protocol on Ozone destructive substances;
- The Framework Convention on Climate Change, signed on 16 November 1994;
- Convention on Biological Diversity (CBD), signed on 16 November 1994;
- Convention on Marine Law, signed in 1994;
- Basel Convention on controlling the transit and disposal of dangerous waste, signed
1995;
- Convention on Combat Desertification (CCD), signed on 23 July 1998.
Regulations as well as specific criteria that Vietnam applies when granting licence to
unprocessed wooden products and forestry products:
Vietnam encouraged export of  planting forestry products (including logs ); simultaneously
applies necessary measures to assure that forests will regenerate, recover to keep the bio-environment
balanced.
Enterprises are allowed to process, export parts and whole of wooden art products and well
processed products using domestic natural forest ry wood or import of raw wood. The following
natural forestry wooden products are allowed to export: components of wooden art products,
completely processed wooden products including wooden furniture indoor and outdoor decoration,
products for construction works, specialized produc ts (medical, sport and education instruments) or
natural forestry products combined with other materials such as bamboo, plastic, mineral and glass.
In term of wood types, excluding category 1A  (including Calocedrus macrolepis, Taxus
chinensis, Cephalotaxus fortunei, Podocarpus neriifalius, Pinus kwangtugensis, Pinus dalatenis,
Glyptostrobus pensilis, Keteleerie calcarea, Amentotasux argotenia, Abies nukiangensis, Aquilaria
crassna, Cupressus torulasa, Ducampopinus krempfil), the products listed above are made of wood of
group from 8 to 1 produced for export (Wood List was established in Decision No 2198/CNR dated
26/11/1997 by Ministry of Forestry, which currently is Ministry of Agriculture and RuralDevelopment).
The above products when exported must still be under management according to wood export
quota every year specified for enterprises in Se ction 1 Article 5 of Decision No 65/1998/QD-TTg.WT/ACC/VNM/9
Page 42
While Quality, Hygienic and Work Safety Monitoring Systems... have not been fully
established, these requirements are examined in many stages including import licensing..
(f) Licensing Procedures
Question 106.  
Concerning the response in WT/ACC/VNM/6 to question 152, we note Vietnam's commitment
to implement the proper reforms to meet the WTO requirements on involving not more than
three (3) administrative bodies involved in licen sing. However, Article I:6 of the Agreement on
Import Licensing Procedures that there should  be only one body, and not more than three if
"strictly indispensable"
Why is it "strictly indispensable" that there be  three such bodies in Vietnam? What is the
specific timetable for implementing this reform in order to make Vietnam compliant with the
Agreement on Import Licensing Procedures?
Answer:
The simplification of import licensing procedure has made some significant progress.
Vietnam will continue this process, and simultaneously continue to update the information.
Question 107.  
We seek from Vietnam the commitment that, upon accession to the WTO, it will only maintain
import-licensing procedures that are full confor mity with WTO rules. Could Vietnam provide a
clear timetable for the implementation of measures that are consistent with WTO rules?
Answer:
Please refer to the answer No.158 (WT/ACC/VNM/6) and document WT/ACC/VNM/3/add.1
and the answer 112 herewith.
Question 108.  
Regarding Question  149. Could Vietnam update the Working Party on the reform of the
merchandise licensing system?
Answer:
Please refer to Annex 1 and  to the answer 58 herewith.
Question 109.  
Regarding Question  164. We comment Vietnam on the engagement to respect GATT rules on
the freedom of transit and on transit  fees upon accession. We would be grateful if Vietnam
could submit a detailed action plan on the impl ementation of the relevant rules. Would Vietnam
also explain to the Working Party what has supersed ed the transit fees of 1 per cent of the value
of the goods mentioned in its answer to this question?
Answer:
Please refer to the answer 111.WT/ACC/VNM/9
Page 43
Question 110.  
Concerning the response to question 158 (WT/ACC/VNM/6)?
Please provide the Working Party with an accura te implementation schedule of the new tariffs,
and the tariff lines for which import-licensing requirements will be removed. Further, does
Vietnam have any plans to reduce and/or phase-out its import licensing requirements in orderto further liberalize trade?
Answer:
Vietnam takes note of the request and will supply this schedule as soon as possible.
Question 111.  
Concerning the response to question 164, Vietnam stated that "the rate of 1 per cent previously
mentioned has been superseded"
Has this fee been superseded by another fee? If so, how much is this fee , and what services or
administrative expenses are associated with it? If the old fee has been superseded by something
other than a fee, please explain wh at it is and what its purpose is?
Answer:
Government has just issued Decree N o.04/1999/ND-CP dated 30 January 1999 on fees,
surcharges under national budget (Please see the attached list for all applicable fees and surcharges).However, the formulation of detailed regulations on custom surcharges and fees is underway. After
issuing, the above mentioned information will be submitted.
Question 112.  
Concerning the answer to question 165, Vietnam states in Annex 3 of WT/ACC/VNM/3/Add.1
that it "has already established an Administra tive Court. In the future, it is certain that
importers shall have the right to make a claim at  the Administrative Court. Currently the Court
has started receiving claims against decisions of Customs Offices"
This statement implies that currently importers cannot be certain that they can voice their
claims on the denial of import licenses. When will this Court be fully operational and certain to
hear all cases involving the denial of import li censes? Is there a legal obligation to issue the
licence within a certain time limit?
Answer:
Please refer to the answer 74, 75 and 77 of the document of WT/ACC/VNM/6.
Decision No. 0385/QD/BTM dated 28 March 1998 stipulates administrative procedures of
Ministry of Trade which specifies different time periods of giving response to a duly complete dossier
and/or guidelines to incomplete ones, but not exceeding 10 working days.
Question 113.  
Concerning the response to question 166 , of all the goods that have been imported into Vietnam
in 1997 and 98, what is the proportion of those goods for which an import licence was required?
We note that importers do not have to pay to obtain an import licence.WT/ACC/VNM/9
Page 44
Answer:
Import licensing procedures are provided in the Annex 3 (WT/ACC/VNM/6). Other
categories not mentioned therein can be imported upon completion of custom formalities. The current
Vietnam's statistic system does not allow detailed answers to the requirements.
Question 114.  
Concerning response to question 167, after chan ges are made to import licensing procedures,
how many days prior to entering into force are they published?
Answer:
Vietnam Law specifies that law-regulating documents by the Government, the Prime
Minister, Ministers, Heads of Ministry-equivalent Organs, Head of Governmental Agencies become
effective 15 days after the date when such documents are signed or in a later date if specified in the
documents themselves.
Legal documents must be sent to related Central or local organizations and organs within 2
days from the signing date to be widely publicized. Law-regulating documents promulgated by
Governmental Bodies shall be published the "Official Gazette" within at least 15 days from the
issuance or publication date. Law-regulating documents declared in Official Gazettes retain original
value. Therefore those documents will be publicized at least 10 days before enforcement date andmust be publicized in Official Gazettes before becoming effective.
Question 115.  
Concerning response to question 169, are there any other criteria which must be respected
besides ability, first-come-first-serve principle, and past performance before an enterprises is
granted a merchandise licence? What is the period of licence validity?
When does Vietnam intend to submit its Impo rt Licensing Agreement Questionnaire to the
Working Party?
Answer:
Please refer to Annex 3 (WT/ACC/VNM/3/Add.1) providing necessary information about the
issuance of importing licenses according to secretariat format WTO.
Annex 3 is constructed to meet the requiremen t of the questionnaire in the Annex 3 of ACC/1
document. For other updated information on this ma tter, please to the answers 107 and 108 herein.
Any modification to the licensing procedure will be notified frequently to the Working Party.
Question 116.  
 (Q.161) We would like to know whether there is a target date by which Vietnam will bring its
licensing regime into full compliance with the time-limits for processing import licence
applications as set out in Article 3.5(f) of the Agreement on Import Licensing Procedures.
Answer:
Details of the plan of action on the licensing will be notified to the Working Party, when
available.WT/ACC/VNM/9
Page 45
(h) Customs valuation
Question 117.  
Please provide a comprehensive list of "goods, which are not subject to the States management
in respect of customs values and for which contra ct values cannot be applied, "that the General
Department of Customs sets the minimum prices. We note that these goods are not the samegoods as listed in question 313 of document WT/ACC/VNM/3.
Answer:
The goods which are subject to management with respect to customs values are listed
hereunder 15 groups.
In comparison with the List mentioned in question 313 document WT/ACC/VNM/3, 6 groups
of commodities were cut down from this list. The former included 21 groups and the current includes
15 groups. It is new progress in our effort to amend Custom Evaluation system as mentioned inanswer 73.
According to Decision QD 68/1999/QDBTC date d 01/7/99 of Ministry of Finance, the
following goods categories are under Import Duty Price management:
- Sugar, cake and confectionery;
- Beverages;
- Paints;
- Plastic and plastic products including categories specified in the Pricing list;
- Rubber tyre, inner tube, brassiere;
- Paper, paper cover including categories  specified in the Pricing list;
- Hygienic products (washing basket, basin, bath, lavatory, water tap), tile;
- Construction glass;
- Iron, steel and fixative aluminum;
- Gas cooker;
- Motor and engine;
- Electrical appliances including:
electric water bumper, speaker of various types, electric fans, radio, cassette player,
CD player, air conditioner, television, refrig erator, cooler bar, video player, amplifier,
washing machine, electric hot water boiler, video CD player with accessories, electric
rice cooker (the above appliances designed using voltages from 80V)
- Cars and accessory kit;
- Motorcycles and accessory kit;
- Table, chair, bed, wardrobe...
Question 118.  
Regarding Question  172. Could Vietnam update on the step taken since the last session of the
Working Party to implement the CVA. WE request that Vietnam commit to a clear timetable
for the implementation of the CVA. Please report the timetable for the fulfilment of this
undertakings to the Working Party.
Answer:
The timetable for the implementation of the GA TT Valuation Agreement is divided into the
following stages:WT/ACC/VNM/9
Page 46
- Stage 1: Up to the year 2003
To formulate  legislation on to gradually comply with Custom Valuation Agreement.
To implement  the Post Clearance Audit
To carry out determination of customs values as per transaction value as well as to
shorten gradually the list of items subject to minimum values for customs valuationpurpose.
To organize  training courses and disseminate  information on determination of
customs values  consistent with the Customs Valuation Agreement.
- Stage 2: From 2004 to 2005
To continue to formulate and improve legal documents providing guideline on
implementation of Customs Law (which has been issued by National Assembly) on
the determination of customs values and other documents on post clearance auditunder the new customs valuation system.
To implement customs valuation methods as provided for in Customs Law.
Therefore, if the above stages are completed smoothly, Vietnam will fully implement the
Customs Valuation Agreement by 2005.
Question 119.  
Please specify the HS number of the goods submitted to minimum prices. Please specify a clear
timetable for the elimination of minimum prices
Answer:
The list of items subject to minimum values for customs valuation purpose, which was
regulated on Decision 68/1999/ QD/BTC of Ministry of Finance in July 1 1999, consist of 15
following groups
List of commodity group subject to price management for determination of import duties
No Commodity HS Number
1 Sugar and confectionery 170100, 170200, 1704, 1806, 1905
2 Beverages Chapter 22 excl. heading 2209
3 Paints From heading 3208 to heading 3210
4 Plastic and plastic products:
+ Plastic plate
+ Plastic doors and windows
+ Plastic ceiling coverings
+ Plastic film for production ofpackages.All the commodities in heading 3925 excl. sub-
heading 39251000, from heading 3919 to heading
3921, 391800
5 Tyres, inner tubes, .. 4011, 4012, 4013
6 Printing, writing and photocopy
papers4801, 4802, 4810, 4823
7 Sanitary wares (wash-basins, sinks,
water closet pans, bidet, tap), bricks3922, 681599, 690100, 6902, 690400, 690700,
690800, 691000, 691190, 691200, 7324WT/ACC/VNM/9
Page 47
No Commodity HS Number
8 Glass sheet 7003, 7004, 700800, 7009
9 Iron and steel Chapter 72
10 Gas cookers 732100
11 Electric Equipment:
+ Pumps+ Electric fans
+ Air conditioning machines
+ Refrigerators, refrigerating display
counters
+ Washing machines+ Storage water heaters
+ Cooker
+ Speakers
+ Radio, cassette, cassette player
+ CD apparatus/player+ VCD apparatus/player
+ Electric amplifier
+Television
+Video head841350, 841360, 841370, 841381
841451, 841459
841510 ®Õn 841590
nhãm 8418
nhãm 8450
85161085166010
851821, 851822, 851829
8519
8522
8522851840
852810, 852820
8521
12 Combustion piston engines, electric
motors and generators8407, 8408, 510
13 Automobile and spare parts 870200, 8703, 8704, 870600, 870700, 870900,
8715, 8716
14 Motorcycle and spare parts  8711
15 Furniture 9401, 9403
(j) Pre-Shipment inspection
Question 120.  
Re Question 186. We seek the commitment that Vietnam will not apply PSI measures until a
WTO consistent legislation is implemented.
Answer:
When the application of PSI measures is necessary, Vietnam will make reference to
provisions of related Agreements and reality as a basis to prevent Vietnam’s commitments from any
possible discrepancy in the context of Vietnam’s negotiation for WTO membership.
Vietnam’s legislation is being revived and complemented to be adaptive to WTO rules,
including eventual legislation on pre-shipment inspection.
(k) Application of internal taxes on imports
Question 121.  
Concerning response to question 188, when does  Vietnam intend to provide the Working Party
with a comprehensive list that clearly shows ea ch item taxed by the VAT on HS basis and the
corresponding tax rate?WT/ACC/VNM/9
Page 48
Answer:
Please refer to answer 71
Question 122.  
Concerning response to question 189 (WT/ACC/VNM/6)
Vietnam states that "during the transitional  stage, local automobile assemblers and
manufactures may be granted preferential reduction or exemption as determined by the
Government"
How long does Vietnam anticipate the "transitional stage" will last? Does Vietnam intend to
apply exemptions and/or preferential treatment du ring the duration of the transitional stage?
Answer:
According to regulations in Excise Tax Law and Official Note 168/1999/TT-BTC of Ministry
of Finance: car assembling enterprises are entitled to 95 per cent deduction from Excise tax in 5 yearsfrom 1/1/1999 to 31/12/2003. In case the producer still suffering from loss,  deduction might be
applicable but not exceeding in the next 5 years.
Question 123.  
Vietnam also states in its new Law on Excise Ta x, that it will reduce the rates for several items,
such as cigarette, beer, and liquors. Does this mean that rates of the excise tax have been
harmonized between cigars/cigarettes produced from domestic inputs and cigars/cigarettes
imported or domestically produced from import ed tobacco? When does Vietnam anticipate that
all items to be covered by the new Law on Excise Tax will be fully harmonized?
Answer:
In the tax reform process at period II, Vietnam always considers national treatment between
exported and domestic products. However, appropriate balances in economic and trading policy
framework concerning the assurance of overall need to be taken into account. Vietnam is making
strong efforts to overcome this problem as soon as possible.
Question 124.  
Concerning response to question 194, can Vietna m provide a comprehensive list of all items
covered by the new Law on Excise Tax and their corresponding rates and HS codes? How does
Vietnam determine which goods are "non-essen tial" and then their corresponding tax?
Answer:
Please refer to answer 71.
Identification of "non-essential" goods categories are based on similar procedures as of other
countries, namely luxurious goods categories that are beyond the needs of basic life or the
consumption of such goods might affect community health or social morality... Duty level  will bespecified based on consumption demand for such goods in relation with residential savings and
budget payment.WT/ACC/VNM/9
Page 49
Question 125.  
Concerning response to question 198, Vietnam states  that "goods that are subject to excise taxes
are not subject to VAT". Does this exemption apply equally to domestically produced and
imported goods?
Answer:
Value Added Tax (VAT) of Vietnam specifies goods categories subject to Excise tax which
are not targeted by VAT at direct import and export stages. VAT  will be applied identically to import
and domestic goods.
Question 126.  
Concerning response to question 199, Vietnam co nfirms that domestic and foreign firms are
both equally subject to the Natural Resources Tax (modified)
Are there different levels of the tax for foreign firms as opposed to domestic firms? If so, this
could possibly violate national treatment principles of the GATT?
Answer:
All individuals, organizations exploiting natural resources within mainland, islands, internal
water, privileged economic areas and veranda floor of mainland are subject to Resource tax. This
means that the same amount of tax is imposed on any foreign or domestic companies which exploitthe same kinds of natural resources.
Question 127.  
Concerning response t o question 200, it is unclear which specific appendix and/or annex
Vietnam is referring to in WT/ACC/VNM/3/Add.1
Please cite a specific appendix and/or annex, or provide a separate list on which beverages are
subject to the "special sales tax"
Answer:
Decree 84/1998/ND-CP dated 12/10 /1998 specifies details for implementing Excise Tax law,
the following beverage products are targeted:
- Alcohol;
- Beer.
Concerning Article 20, please refer to the unofficial translated version of Excise Tax available
at the Secretariat.
Question 128.  
Guidance by the Vietnamese authorities for forei gn companies not to add VAT on the price of
goods after introduction of VAT in January wa s unreasonable bearing in mind that the nature
of indirect taxes. Such guidance not to increase the price, even after introduction of a new VAT
system, should be abolished.WT/ACC/VNM/9
Page 50
Answer:
At the very beginning of the implementation of VAT, a number of businesses had taken the
opportunity of new tax implementation to raise prices illegally which caused losses to consumers. To
avoid a big mess in the market, the Government issued regulations for stabilising prices such as
requiring all businesses to declare publicly the selling prices of their goods. Sensible goods categoriesunder governmental management will not experience increase in price including electricity, gas and
petroleum, telephone fee ... For other goods categories, the Government encourages businesses to
calculate correct price based on supply and demand to protect business's rights and keep the normal
flow of goods in the market. Practice has proved that goods prices in market have been accepted by
consumers and a lot of businesses have cut down product price due to VAT composition in selling
price is lower than before.
Question 129.  
Vietnam should explain why the comprehensive list , regarding the classification by HS
numbers to show clearly the VAT of all the item s is applicable under Article 8 of the Law on
VAT, not available at this moment. We strongly request Vietnam to provide such a list to
Working Party.
Answer:
Please refer to the answer 71.
(l) Rules of origin
Question 130.  
Could Vietnam provide more details on the “plan” for the elaboration of legislation on rules of
origin to the Working Party, or any draft legislation when it becomes available. Please provideto the Working Party the timetable that Vietna m envisions for the creation and implementation
of such legislation.
Answer:
Vietnam taken part in the establishment of AFTA (Asean Free Trade Agreement) and
applying the Preferential Rules of Origin of AFTA. Vietnam will issue legal documents onidentification and examination of goods origin. Vietnam will provide the Working Party with the
timetable for setting up non-preferential rules of origin as soon as it is available.    
(m) Anti-dumping, countervailing duty and safeguard regimes
Question 131.  
Re Question 207. Please provide to the Working Party a timetable for the establishment of
“legal and institutional framework for the proper enforcement” of anti-dumping and
countervailing duty legislation. Please also outline the type of legal and institutional reforms,which Vietnam envisions in order to prov ide for enforcement during this period.
Answer:
At the moment, Vietnam has not designed a concrete plan to create the regulations on anti-
dumping, countervailing duty and safeguard. Vietnam will provide the Working Party with the
timetable for formulating and implementing those regulations as soon as it is available.WT/ACC/VNM/9
Page 51
Question 132.  
Concerning response to question 102 and 207, Vi etnam states that the 1999 Amendment to the
E-I Tariff Law provides that goods may be subject to additional import duties, inter alia, " if
the goods imported in Vietnam with lower prices as compared to normal prices as a result of
dumping [and] export subsidies which hamper the production of similar goods in Vietnam
What does Vietnam mean by "normal prices" and how are they calculated?
Answer:
A draft under-law regulation is underway for implementation of additional import tariff. It is
planned that methods of determining transaction price with reference to the Agreement on
Implementation of Article VII of the GATT 1994 will be applied as far as the current management
skills of Vietnam allow.
Question 133.  
Please confirm, per the response to question 207 that Vietnam does not consider that these
provisions constitute sufficient legal provisions for the administration of Antidumping, CVD
and safeguard measures in accordance with WTO requirements.
Answer:
These above regulations will be elaborated for implementation purpose. During the
construction process of such elaborate documents, Vietnam will take WTO related rules into
consideration.
Question 134.  
When does Vietnam plan to elaborate these provisions to implement the WTO Agreement on
Antidumping, Subsidies and Countervailing Measures and Safeguards?
Answer:
Vietnam will try her best to observe the framework of WTO rules promptly or as soon as
possible after the accession.
(p) Other border measures, e.g. any other schemes that have border effects similar to those
of the measures listed under (e) above.
Question 135.  
Concerning response to question 171, when does  Vietnam expect to have a completed set of
rules for trade in the Vietnam-Cambodia border areas?
Vietnam states that "for a large amount, trade will have to pay duties". Please clarify who
and/or what is meant by "trade"?
Please explain the nature of the duties that will have to be paid?
Answer:
No favourable bordering trade agreement has been signed between Vietnam and Cambodia.
However, the following regulations on Vietnam-Cambodia bordering trade exist:WT/ACC/VNM/9
Page 52
Decision 0724/99/QD/BTM dated 8/6/1999 promulgates Regulations on the establishment of
and control on the markets along the border between Vietnam and Cambodia.
Regarding Customs on bordering trade, the above Decision 0724/99/QD/BTM specifies the
following:
- Border trade by local residents amounting to 500.000 VND (equivalent to 35
USD)/turn/day are exempted from custom duty. The exceeding value will be subject
to normal tariff.
- Cargoes cleared through the custom by businesses are commercial in nature and
subject to normal duty.
Therefore export and import duty specified here are basically the same as normal custom
duty.
Question 136.  
Vietnam states in WT/ACC/VNM/6 that "the measures  that are inconsistent with Art III, if any,
will be reviewed and phased-out". Can Vietnam provide a specific time-table for review? Is
there currently any legislation pending addre ssing any such inconsistencies? Will all
inconsistent measures by phased-out and/or replaced with consistent ones prior to accession?
Answer:
In Vietnam Legal system there still exist a number of points inconsistent with Article III of
National Treatment. Vietnam is thoroughly examinin g the Legal system together with step-by-step
adjusting to comply with WTO  rules including Article III.
As an outcome of the 3rd session of the Working Party, at the 4th session of the Working
Party, Vietnam will provide the legislation program which gave names and estimated issuance datesfor new regulations, adjusting and supplementing the current legal system moving toward the
compliance with WTO rules.
2. Export Regulation
(c) Quantitative export restrictions
Question 137.  
Vietnam currently restricts the maximum cuttin g volume of wood and maintain the annual
cutting allocation in addition  to the quantitative restrictions on exports of wood.
The annual maximum cutting volume over the past 5 years, as well as the percentage of the
allocation to be applied to exports, should be informed.
Answer:
Report on maximum production of wooden products exploited in the last 5 years and the quota for
natural forestry wooden export:WT/ACC/VNM/9
Page 53
Quota for Natural Wood for Export Year Maximum Production
of Wooden Products
ExploitedM3Percentage in
Exploited Woods
1995 617,000
1996 590,000 330,000 55
1997 522,000 80,000 15
1998 432,000 100,000 23
1999 300,000 150,000 5
Source:  Ministry of Agriculture
- Total amount of exploited wood from planting forests currently is approximately 35,000 m3
per year.
- In addition to exports exploited from domestic natural forests, there are a number of exported
wood and wooden products which are originated from imports.
Question 138.  
We seek from Vietnam the commitment that, upon accession to the WTO, it will only maintain
those export restrictions that are justified und er WTO rules. We would also like to note that
export quotas are not justified under WTO rules. Could Vietnam provide a clear timetable for
the elimination of those measures th at are inconsistent with WTO rules?
Answer:
The abolishment of export restrictions on textile and clothing depends on agreements to be
concluded between Vietnam and other countries   applying quantity import restrictions.
Since rice is vital for Vietnam’s socio-economic security, Vietnam does not intend to give up
the control over production and importation of this commodity. However, Vietnam will develop a
flexible control mechanism.
Question 139.  
Please explain how the flexible export  restrictions on rice is applied.
Answer:
In order to ensure national food security, Vietnam has been relying on 2 rice export control
measures:
- Indicative Export Volume
- Focal-point exporter
Indicative Export Volume: Depending on the forecast of annual consumption demand, storage
and production volume of rice, at the beginning of each year, the Government announces planned
indicative export volume which will be allocated to enterprises. During that year, the Government
may increase or adjust the indicative export volume. The indicative export volumes has been
increasing for the last recent years.WT/ACC/VNM/9
Page 54
Data on Quota and Fulfilled Quantity of Export Rice in Recent Years
Year Indicative Export Volume Actual Export
1997 - 3.5
1998 3.5 3.7
1999 3.9 4.5
2000 4.3 -
Unit:  Million tonnes
Source:  Ministry of Trade
Focal-point Exporter: In the past, only State-ow ned enterprises had the right to export rice.
Nowadays, economic entities who may become  foca l-point exporters are no longer limited to  state
owned enterprises. Since 1998, beside the focal point exporters, other Vietnamese enterprises
regardless of their forms of ownership seeking a new market and signing export contracts with
favorable terms (it is actually required that the contract providing that rice export performance issubject to the allocation of export quota by the government ) are also entitled to export rice.
The number of enterprises exporting rice for the years 1997-1999
Year Number of Enterprises
1997 26
1998 36
1999 64
(f) Export financing, subsidy and promotion policies
Question 140.  
Concerning response to question 218 and 222, Vietnam acknowledges that it operates
agricultural and industrial subsidies, and states that notifications for these measures are being
prepared.
We seek circulation of these notifications to the Working Party for review and discussion prior
to the conclusion of negotiations.
Answer:
In terms of agricultural subsidies, Vietnam is in process to complete data for the WT/ACC/4
formatted Notification to be submitted to the Working Party in due course.
Question 141.  
What does Vietnam intend to do about the industrial export subsides detailed in the response to
question 222 to bring them in to line with WTO provisions?
Answer:
Being a developing country with very low income, on the one hand, Vietnam is trying to limit
export subsidies. But on the other hand, Vietnam also realizes the need to reserve this right for the
purpose of development.WT/ACC/VNM/9
Page 55
Question 142.  
The response to question 226 is inadequate, in that  the issue is not whether the firms receiving
subsides are STEs but rather what Vietnam is prep ared to do to eliminate the violation of WTO
provisions represented by the subsidy. What is Vietnam prepared to do to eliminate the
violation to WTO provisions?
Answer:
For years enterprises have no longer been provided with inputs and materials at subsidized
prices.  Some enterprises regardless of their ownership are allowed to operate and conduct their
business activities with privilege. The relevant  information are provided in the WTO format
notification on Industrial Subsidy attached herewith. The information regarding Vietnam’s
agricultural domestic supports and export subsidies will be submitted in due course in the format of
document WT/ACC/4 of the WTO Secretariat.
Vietnam’s policy-adjusting programmes are in progress and will be notified as soon as
possible.
(h) Import duty drawback schemes
Question 143.  
Please confirm that the amount of duties rebat ed upon export do not exceed the import duties
applied to goods physically incorporated in the export, and do not cover production machinery
or other un-incorporated factors of production
Answer:
The tariff duties imposed on imported materials used as inputs to produce or process exports shall be
refunded proportionate with their actual incorporation in the exports. The determination ofdepreciation costs of machinery and equipments and other costs relating to export processing
activities which are not covered in the amount of duties rebated upon export will be applied according
to the provisions of Law on Corporate Income Tax the same as to other types of production and
trading enterprises.
3. Internal policies affecting foreign trade in goods
(a) Industrial policy, including subsidy policies
Question 144.  
Besides lower tax rates applied to export-produci ng enterprises, which other subsidy is granted
to companies?
Answer:
Beside preferential taxes given by Decr ee 51/1999/N§-CP, companies producing export
goods are allowed to enjoy privilege from Export Promotion Fund of the Government. In September,
1999, Prime Minister issued Decision 195/1999/Q§-TTg on Establishment, Use and Management of
Export Promotion Fund for supporting, encouraging, promoting the exportation of goods, and
strengthening the competitiveness of Vietnam exports.
The purposes of the Export Promotion Fund are as follows:WT/ACC/VNM/9
Page 56
To cover wholly or partially bank interest lending rate to purchase agricultural products for
stock when the world market price slumps that causes adverse affects on domestic production.  (The
stock will be exported under the guidance and management of the government).
To provide occasional support to export promotion efforts of products suffering weak
competitiveness or to cover the losses caused by unforeseen risks.
To grant financial rewards for efforts of export market research and expansion, production of
goods, new export products, production of high quality exports recognized in writing by International
Organizations, high export turnover and effectiveness.
Question 145.  
Please specify the conditions for obtaining th e import duty exemption for equipment, machinery
and specialized means of transport.
Answer:
Foreign invested enterprises, parties to business co-operation contracts are exempted from
import duties for:
- Machinery, equipment to set up fixed assets of the companies or the  business co-operation
contractual projects.
- Specialized means of transport used in technological assembly to set up fixed assets of the
companies or business co-operation contractual projects and specialized transport means for
workers (vehicle with 24 seats or more , waterway transport  means);
- Spare parts, accessories, components, models supplementary to instruments, machinery,
specialized means of transport and other means of transport as above mentioned;
- Raw materials, building materials necessary to manufacture instruments, machinery of
technological assembly or spare parts, accessories, components  instrument which are
supplementary to the machinery and equipment.
When a project expands it’s operation or invests in technology innovation, the exemption of
import duties is also applicable.
(b) Technical specifications and standards
Question 146.  
Information in the inquiry point for TBT measures should be provided. Has Vietnam already
established an inquiry point as required by the TBT Agreement? If so, this should be informed
as soon as possible.
Answer:
Information on the requested enquiry point has been notified in Annex 5 of document
WT/ACC/VNM/3/Add.1 on TBT.
So far Vietnam has not yet established such an enquiry point to provide enterprises with
necessary information as required by the TBT agreement.WT/ACC/VNM/9
Page 57
Question 147.  
Re Question 228, We are concerned with the stat ement indicating that some standards are made
compulsory as may be decided by the Minister-i n-charge in accordance with criteria such as
“applying to goods that are significantly impo rtant to the economy”! Could Vietnam provide
examples?
Answer:
We would like to provide two examples of Mandatory Standards of Vietnam (TCVN) as
follows:
- TCVN 1656: 1993 of Steel
- TCVN 2682: 1992 of Portland Cement
Steel and cement which are considered as significantly important to our economy must ensure
to meet all the safety requirements
Question 148.  
Could Vietnam give more explanations how unnecessary barriers to trade could be removed
based on the criterion of “ensuring effective surveillance in parallel with facilitation of
production and business activities”?
Answer:
“Ensuring effective surveillance in parallel with facilitation of production and business
activities” may be subject to be deliberated in the process of removing business obstacles.
Several measures of control and supervision are necessary but in the process of
implementation, they lead to excessive obstacles caused by many factors such as weaknesses in
management, professional skills, complicated procedures and incorrect understanding. To overcomethose weaknesses, maintaining the necessary measures at a reasonable level, taking into account the
actual management capability, may be appropriate methods to reach the target.
However, in many cases, assessment of  a measure  is unnecessary business obstacle and the
possibility of abolishing this obstacle in the reality of Vietnam needs to be considered thoroughly and
objectively in order to ensure the abolishment of such measure does not cause disorder to businessand production activities and life of people in all classes or adverse impact on trade.
Question 149.  
Could Vietnam explain what does “consistency of technical regulations with that of ISO” mean?
Answer:
Eliminating the technical barriers to trade is Vietnam’s crucial viewpoint to accelerate process
of integration to the world economy. Depending on our capability, Vietnam strives to align Vietnam
Standards/Technical Regulations with those of International Standardization Organisation (ISO) andother international standardizing bodies.
For instance, Vietnam has set up Vietnam Laboratory Accreditation Scheme (VILAS). This
scheme is based on ISO/IEC Guides 25 and 58. As ISO/IEC Guide 25 has been replaced by ISOWT/ACC/VNM/9
Page 58
17.025, so Vietnam will continue to revise the regulations on VILAS in order to make them
harmonized with the requirements of those new standard of ISO.
Question 150.  
With a view to ensuring transparency Vietnam has applied the establishment of an electronic
mail system providing information on tech nical standards and regulations. Why not on
conformity assessment procedures?
Answer:
Concerning the conformity assessment procedure, please access the following addresses:
Stameqinfo@vnn.nn or
http://home.vnn.vn/tcvn
Question 151.  
Does “compulsory standards related to the safety, hygiene and national security” mean
“technical regulations”? Does “mandatory conformity certification” mean “inspection” or/and
“registration”?
Answer:
Yes, compulsory standards related to the safety, hygiene, national security mean the technical
regulations.
Pursuant to the newly amended Ordinance on Qu ality, certification of Vietnam’s standards
mandatory conformity includes:
- Mandatory conformity  certification (third party certification)
- Quality inspection on imports-exports (third party certification)
In addition, the current registration will be replaced by supplier’s declaration in conformity
with technical standards/provisions (first party certification).
Question 152.  
We commend the steps taken to date in order to enhance the commodity of Vietnam’s policies to
the TBTA. Please provide to the Working Party a more detailed timetable on the transition to
full conformity to the TBTA as supplied in question 232, and please confirm Vietnam’sintention to accede to the TBTA upon accession.
Answer:
Vietnam will provide the Working Party with  TBT action plan when it is available.
Question 153.  
Could Vietnam give us some indications on the scope of these bilateral agreementsWT/ACC/VNM/9
Page 59
Answer:
The Agreement includes the following main contents:
- List of products of signat ures to the  Agreement
- Acceptance of technical standards/provisions  of the importing country by the
exporting country
- Acceptance of the competence of testing/calibration laboratories
- Recognition of the exporting country’s certificates by the importing country.
Question 154.  
Please list mandatory standards applied in Vietnam
Answer:
The list of mandatory standards applicable in Vietnam has been already introduced on the
homepage: http://home.vnn.vn/tcvn
Question 155.  
Regarding quality inspection, could Vietnam clarify the statement “It is mainly applicable to
products that are imported for the first time and with unknown or contestable origin or to
imported goods which are known to have quality-related problems”?
Import quality inspection; the issue indicated to the inspection type Vietnam applied in case the
other type of inspection can not be used and the commodity has risk in term of quality as
mentioned in the question.
Answer:
At present, Vietnam is applying State quality control system on imports products publicized
and updated annually by the Ministry of Science, Technology and Environment. Though, qualitycontrol of the List is mandatory, inspecting each and every lot of import and export goods is
absolutely impossible and unnecessary. Hence, products which have been given certificate of quality
standard conformity;  products of legal entities and persons whose quality control system was
certified as conformity with Vietnam standards, foreign standards or international standards products
originating from a country which concluded an Agreement on Standardized Quality MutualRecognition with Vietnam  Products whose samples ha ve been inspected before being offered for sale
products having good and stable quality which have been previously inspected, may be exempted
from inspection. However, mandatory  inspection does not replace inspection requirements as
possibly provided for in the business contracts .
(c) Sanitary and phytosanitary measures, including measures taken with respect to imports
Question 156.  
Could Vietnam prepare a comprehensive presentati on on the implementation of both the TBT
and SPS Agreements, using the WTO Secretariat checklists as a guide?
Answer:
Information on TBT has been provided in  Annex 5 of document WT/ACC/VNM/3/Add.1.WT/ACC/VNM/9
Page 60
Please refer to the Action Plan on SPS Measures which is attached to this document.
Question 157.  
Information on the inquiry point for SPS measur es should be provided. Has Vietnam already
established an inquiry point as required by the SPS Agreement? If so, this should be informed
as soon as possible.
Answer:
 So far,  a single enquiry point to provide information on its SPS measures is not yet
established. Vietnam has already promulgated various legal documents including Ordinances and
Regulations on sanitary and phytosanitary control, on plant and animal quarantine, on health
quarantine and on fisheries inspection to regulate the separate State control assigned  to various
ministries/agencies over each of the above mentioned domains. Therefore, relevant information on
SPS measures will be individually submitted by each of the ministries/agencies above mentioned inaccordance to their specifically responsible domains.
The general enquiry point in Vietnam to provide information on sanitary and phytosanitary
requirements is the Ministry of Agriculture and Rural Development of Vietnam (MARD).
To establish such an enquiry point as required by the SPS Agreement before its accession to
WTO, Vietnam expects to receive technical assistance from WTO’s developed  Member States.
(d) Trade-related Investment Practices
Question 158.  
Regarding Question   95. Can Vietnam provide a time schedule for the liberalization of the
registration requirement for the establishment of  automobile assembly factories? Please note
that the solution currently envisaged (i.e. volunta ry registration of the local content) will not
solve the problem of the inconsistency of th e current regime with the TRIMS Agreement.
Answer:
Vietnam will continue to maintain local content requirement for a certain period to be defined
in the accession agreement between Vietnam and WTO. However, in transitional period, Vietnam will
gradually shift from the mandatory requirements to  economic measures which are mainly aimed atencouraging or granting incentives to foreign inve sted enterprises to carry out local content program.
Particularly, these measures include:
Drawing up of a policy to specially encourage the development of supporting industries
which manufacture accessories, spare parts and components to serve local content program;
Review of existing tariff schedule to identify and eliminate the fact that import duties imposed
on  a certain spare parts and accessories are higher than those on finished products;
Taking into consideration of the possibility of relaxing some obligations or loosening the
required schedule of local content program in a certain period for investment projects which are
copying with difficulties in implementing the program.WT/ACC/VNM/9
Page 61
Question 159.  
Could Vietnam be more specific about how the foreign exchange situation has to improve until
Vietnam will relax the foreign exchange access?
Answer:
Due to the relatively fast increase of exports than imports, Vietnam’s supply and demand on
foreign currency have been strongly improved. With a flexible interest rates policy and export –
incentives granted by the government, the intern ational balance of payment had been improved
making the State foreign currency reserves stable and increased. Foreign and domestic investment in
exports production projects wi ll be continuously promoted.
Question 160.  
Has Vietnam completed the categorization of Trims inconsistent measures?
Answer:
Vietnam is still in the process of clarification of the trade related investment measures. We
will notify the outcome to the WTO Secretariat when it is available.
Question 161.  
Vietnam indicates that it is considering libe ralization of its local content requirements.
We seek a comprehensive presentation from Vi etnam prior to the next Working Party on its
plans for the removal of required domestic content levels and local content requirements
associated with quantitative import restrictions in  conformity with Art III and XI of the GATT,
the TRIMs Agreement and other WTO provisions prior to accession.
This presentation should include comprehensive listing of all such requirements, with HS
number designation on the products affected, and information on the how and when theserequirements will be eliminated
Answer:
Implementation of localization scheme (or local content requirement) is an important policy
which aims at supporting development of mechanical engineering, electric and electronics industries
of all developing countries including Vietnam.
Vietnam’s localization scheme is provided as follows:
- Regarding projects of assembling and manufacturing automobiles: Implementing
scheme for manufacturing automobiles spare parts and accessories is a condition to
obtain investment licence. No later than the 5th year from the year of commencing
production, the value of spare parts and accessories manufactured in Vietnam must be
accounted for at least 5 per cent of the complete automobile value and must be
annually and steadily increased to reach at least 30 per cent of the automobile value at10th  year of production.
- Regarding projects of assembling and manufacturing motorcycles and motorcycles
components: The State of Vietnam does not issue licence for investment projects
assembling motorcycles in simple CKD form. From the 2nd year of manufacture, theWT/ACC/VNM/9
Page 62
value of motorcycle components and spare parts manufactured in Vietnam by the
licensed project must account for 5-10 per cent of the complete motorcycle value and
must be gradually and steadily increased to reach the target of accounting for at least
60 per cent of the complete motorcycle value in the 5th or 6th year of manufacture.
- Regarding projects of assembling and manufacturing mechanical engineering, electric
and electronics products: Assembly projects can only be approved in IKD form and
are required that the value of components and spare parts manufactured in Vietnam in
the first 2 years account for at least 20 per cent of the value of finished products and
must be annually and steadily increased in subsequent years.
- Investment projects of manufacturing spare parts for mechanical engineering, electric
and electronics industries (except automobiles industry) shall be granted preferential
import duty rates contingent upon their localization rates in respect of semi-products,accessories, parts and materials imported for production of those spare parts.
Vietnam shall, with the objective to develop its economy, continue maintaining the above
localization scheme for a certain period of time in accordance with the agreement to be reached with
WTO members. However, Vietnam is planning to gradually displace such requirements of mandatory
nature by mainly taking economic measures, granting special incentives for  foreign investmentprojects implementing localization scheme, particularly as follows:
- Formulating policy to specially encourage the development of supporting industries
to manufacture components, accessories and spare parts for localization scheme;
- Applying tax policies to effectively encourage investment projects manufacturing
components, accessories and spare parts. At present, Vietnam is reviewing its currentimport duty tariff so as to remove the imposition of import duty on some components,
accessories and spare parts with rates higher than those applied to finished products.
- In respect of investment projects under operation which face with difficulties due to
external factors in implementing localizatio n scheme, Vietnam shall consider relaxing
localization requirements and/or granting an extension of localization schedule(rescheduling the required localization time frame) for a certain period of time and
under specific conditions.
Question 162.  
Vietnam’s local content requirement is inconsis tent with TRIMS Agreement and the action-plan
to abolish it should be explained in detail. Mo reover, the requirement to  maintain equilibrium
between imports and exports is also not consistent with the TRIMs Agreement. The current
situation to review the import licensing requirements applicable to foreign investors should beinformed. The export/import licensing regime in  question is, in our view, clearly inconsistent
with the TRIMs Agreement and Vietnam’s justification should be explained in detail.
Answer:
In respect of the Action Plan to remove local content requirement, please refer to the answer
to Question 161.
In respect of the requirement to maintain e quilibrium between imports and exports: Vietnam’s
current regulations on importing and exporting activities of foreign-invested enterprises are not in
violation of the TRIMs Agreement; Vietnam presently does not have any requirement on maintaining
the balance between exports and imports.WT/ACC/VNM/9
Page 63
 In an effort to streamline administrative procedures for foreign investment, Vietnam has
abolished its export licensing regime previously applied to foreign investment projects. According to
the current regulations, foreign-invested enterpri ses are allowed to import equipment, machinery,
means of transport, materials to carry out their capital construction and production in compliance with
their import and export plans approved by provincial People’s Committee or Management Board ofIndustrial Zone (Ministry of Trade has currently delegated the power of approving the export and
import plan submitted by foreign investment projects which are located in the provincial territory or in
the industrial zone to the respective provincial People’s Committee or Management Board of
Industrial Zone).
Question 163.  
A foreign investor faces various serious difficulties caused by the complicated and burdensome
procedures, including a public tender requirement and a governmental investigation, whenconstructing a factory. We request Vietnam to consider deregulating the complicated
procedures hindering foreign investors to develop their economic activities.
Answer:
The objectives of tender requirements are to ensure fair competition, equality and
transparency in the tendering process so as to be able to sort out the proper contractors who can assurethe economic effectiveness of the project, this is also a measure applied in many countries;
investigation is taken by the State agencies when a factory is built by contractors so as to guarantee
the quality of the works in accordance with Vietnam’s construction standards.
However, only are joint-venture projects in which Vietnamese sides are State-owned
enterprises and their capital contribution accounts for at least 30 per cent are required to tender. TheGovernment of Vietnam has recently issued the Decree No.88/1999/ND-CP dated 1 September 1999
on promulgation of a new regulation on tendering which is more transparent, more specific and
simpler.
The above comment will be noted for reference in the process of policy-making of Vietnam.
Question 164.  
Personnel and financial decisions in a joint-venture company are legally required to be made
unanimously by the board of management, including any Vietnamese members of the board,
with regard to Article 14 of the Law on Foreign Investment. Due to the time-consuming process,
a deregulation of the unanimous requirements and the enlargement of autonomy in each
company should be provided.
Answer:
Unanimity among parties in a joint-venture is one of important factors that lead to success. In
fact, however, not all the decisions are required to be made unanimously by the law. The Law on
amendment and supplement of articles of the Law on Foreign Investment in Vietnam newly approved
by the National Assembly on 16th May 2000 stipulates that a number of exceptionally important
cases, when unanimity among all members of the Board of Directors, presenting at the Board
meeting, is required, including appointment and dismissal of key positions such as General Director,First Deputy General Director, amendment and supplement of the Articles of corporation. Besides,
parties could also specify in the Articles of corporation other cases when unanimity is required. Since
such issue could directly affect business activities, a joint-venture cannot be managed effectively and
objectively without unanimity. Not only Vietnamese law but also laws of other countries have the
same provisions.WT/ACC/VNM/9
Page 64
Question 165.  
Vietnamese laws and regulations encourage the increase in the percentage of Vietnamese
participation in a joint-venture company, thereby substantially restricting a foreign investor’s
participation. Foreign participation in joint-ventures that are already established should also be
liberalized, e.g. if Vietnamese participation is  not expected, a joint-venture between foreign
investment should be permitted.
Answer:
The Law on amendment and supplement of articles of the Law on Foreign Investment in
Vietnam newly approved by the National Assembly  on 16th May 2000 stipulates that foreign-invested
enterprises, parties of a business cooperation contract are allowed to change form of investment, to
split, to merge and to acquire an enterprise. The Go vernment stipulates procedures to change form of
investment, to split, to merge and to acquire an enterprise. Such provisions and procedures  will beelaborated by the Government.
Recently, the Government of Vietnam has cons idered to allow joint-ventures investing in
certain sectors, where Vietnamese party is no longer able to joint business, to be shifted to wholly
foreign-owned enterprises. A wholly foreign-owned en terprise can be invested by one foreign investor
or a number of foreign investors collectively. We will provide additional information to this questionafter the Government approves the list of business se ctors where Vietnamese party is no longer able to
joint business.
Question 166.  
Documents necessary for the establishment of foreign capital entities, such as copies of
investment licenses, contract sheets and statut es to establish companies, are often transferred
outside by the Government. For example, there has been a case where the contract sheet of a
certain company was shown by the Government to another company as an example of a
business contract.
We are very concerned over by such a situat ion where important documents, which should be
under the control of the competent authorities,  can be easily transferred. Such undesirable
behaviour could create serious problems such as  that distorting the competitive conditions of
the companies concerned.
The Government is obliged to keep confidenti al any information obtained through licensing
procedures. We strongly urge Vietnam to take all the necessary measures to solve this problem.
Answer:
The Government of Vietnam assures to respect and protect investors’ rights of confidentiality
of their business contracts. The phenomenon raised in the question might mainly occur in Stateagencies at the managerial level. However, the Government will take this problem into serious
consideration so as to find out necessary solutions to solve it.
Question 167.  
Vietnamese laws and regulations on foreign investment provide a variety of preferential
measures, but foreign investment companies a re not entitled to receive those treatment
automatically. Such companies must apply to th e authorities for any preferential treatment and
only if the authorities accept, can they enjoy the benefits. Such a requirement tends to cause
unhealthy conditions between the competent authorities and private companies, and evenWT/ACC/VNM/9
Page 65
encourages bribery. We request Vietnam to automatically grant preferential benefits to foreign
companies without any exceptions.
Answer:
That preferential treatments permissibly enjoyed by an foreign-owned enterprise under the
Law on Foreign Investment in Vietnam must be primarily considered for approval by the competentState authorities upon receiving the enterprise’s application form is to ensure that the concerning
enterprise satisfies all requirements for being grante d those preferential treatments. This consideration
procedure is also applied to the Vietnamese enterprises. There are 2 different phases of applying for
being granted preferential treatments that should be distinguished : 1) enterprise applies for being
granted preferential treatment simultaneously with its application for being issued investment licence.
In this case, the consideration for granting prefer ential treatment to the applicant enterprise are
executed simultaneously with the evaluation of th e investment project and preferential benefits
permissibly enjoyed will be stated in the investment licence of the enterprise. 2) enterprise applies for
additional preferential treatments when new incentive policies are issued. In fact, most of these cases
have been handled promptly and precisely.
In order to simplify investment procedures and facilitate foreign investors, the Government of
Vietnam issued the Decree  No.10-1998/NC-CP attached by  detailed lists describing criteria for being
granted preferential treatments which the applicant en terprise must satisfy so as to enable enterprises
to predict their eligible preferential benefits and to form a base for competent authority to consider
granting preferential treatments to eligible enterp rises. However, Vietnam takes this proposal into
consideration to continue reviewing and reforming investment procedures in order to make
improvements and to avoid bribery and corruption in investment-relating activities.
Question 168.  
There are many cases where a Vietnamese party contributes buildings and the right to use land
when a joint venture with foreign capital is esta blished. In the case of a joint-venture with a
Vietnamese state-owned enterprise, is it correct that such property contributed by the state-
owned enterprise remains state-owned, even aft er the joint venture enterprises is established?
In other words, is it the correct understanding that the contributed property is not regarded as
assets of the joint venture enterprise and that th e joint venture enterprise is limited in its rights
of use and for managing such a property?
Answer:
According to the Law on amendment and supplement of articles of the Law on Foreign
Investment in Vietnam newly approved by the National Assembly on 16th May 2000, Vietnamese
party in a joint-venture is allowed to contribute thei r part in legal capital by the value of right to use
land, pursuant to the regulations on land; and equipment, machinery, plant and other construction
facilities.
Assets contributed to a joint venture shall be c onsidered the joint venture’s assets and thus, it
has the autonomy in conducting businesses in accordance with the investment licence. The joint
venture is also allowed to mortgage the right to use land and the real estate associated with the land inorder to borrow from banks permitted to operate in Vietnam. In case of an bankrupt enterprise or that
to be dissolved ahead of licensed duration, the remaining values of the right to use land contributed is
a part of assets for liquidation.WT/ACC/VNM/9
Page 66
Question 169.  
We are interested in the minimum capital co ntribution requirement prescribed by the
Enterprise Law to be implemented from January 2000, which will combine the Company Law
and the Law on Private Enterprise
A translation into English of the Enterprise Law should be provided to the WTO Secretariat for
consultation.
Answer:
The Law on Enterprises was passed by the National Assembly of Vietnam on 12 June 1999.
This Law will supersede the Law on Companies and the Law on Private Enterprise and come into
force as from 1 January 2000.
Pursuant to the Law on Enterprises, the minimum legal capital requirement for establishing an
enterprise is in principle abolished, with some exceptions of specific cases.
According to the draft Decree providing detailed regulations on the implementation of the
Law on Enterprises which is being prepared by the Ministry of Planning and Investment and
scheduled to be promulgated by the end of this year, these exceptional cases are planned to include
the following business sectors:
- Monetary and credit sector;
- Insurance services;
- Securities brokerage and underwriting.
Details of the minimum legal capital requirement will be expressly stated in specialized legal
documents.
Question 170.  
Referring to answer 29 of the replies of Vietnam to additional queries, although the laws and
regulations on the use of land is gradually being liberalized, conditions for the right to use land
remain inconvenient and insufficient for foreig n investors with regard to commercial credit,
especially in relation to a mortgage on land. Fo reign investors should also be legally permitted
to take out a mortgage on land if acquiring ownership through a mortgage is one of the majormeans enabling for foreign investors to raise funds.
Vietnamese individuals and organizations are permitted to take out a mortgage on land with
Vietnamese credit organizations. However, th e regulations of the national bank currently
prohibits branches of foreign banks to provide  a loan secured on land property. Branches of
foreign banks should also be permitted to provid e such a loan as foreign investors face certain
difficulties in raising funds in Vietnam.
Answer:
According to the Law on amendment and supplement of articles of the Law on Foreign
Investment in Vietnam newly approved by the National Assembly on 16th May 2000, when a
Vietnamese party, in a foreign-invested enterprise, contributes capital by the right to use land, the
enterprise is allowed to mortgage the right to use land and the real estate associated with the land in
order to borrow from banks permitted to operate in Vietnam. The Government shall determine, indetail, conditions and procedures applicable to the mortgage of foreign invested enterprises. Presently,
foreign banks are not yet allowed to provide loans mortgaged by land.WT/ACC/VNM/9
Page 67
Question 171.  
Referring to answers 29 and 30 of the replies of Vietnam to additional queries, foreign
investment in Vietnam involves a high risk as the right to transfer the use of land is not
permitted without approval by the authorities. Minimizing the investment risk would promote
foreign investment in Vietnam. The right to use land, including industrial parks, should bepermitted for transfer on a voluntary basis without undergoing official control.
Answer:
In Vietnam, land is subject to public ownership and under the administration of the State. So
far the State of Vietnam has promulgated a number of regulations to facilitate land users, inclusively
foreign investors and enterprises with foreign owned capital doing business in Vietnam, in
transferring and mortgaging their land use right. However, like in many other countries, the State of
Vietnam exercises its government and management power over the transfer of land use rights as saidabove, land is a public-owned property.
Question 172.  
Referring to answer 29 of the replies of Vietnam to additional queries, the official registration
system of land property rights, e.g. the right to use land and a mortgage, should be established
as soon as possible in order for the Vietnamese authorities to permit the transfer of the right to
use land and a mortgage.
Answer:
Vietnam takes this comment into consideration for reference.
(e) State-trading practices and SOE
Question 173.  
Re Question 279. Vietnam stated its intention to progressively commercialize the operation of
state trading enterprises. We would welcom e more information on how this progressive
commercialization will be implemented, on  its scope and on the relative timeframe.
When the Vietnamese Anti-Trust Law will be intr oduced and what will be its major provisions?
Answer:
Please see the document G/STR/N/4 on Vietnam’s existing state trading enterprises attached
herewith.
At present, Vietnam has begun drafting the Law on Competition. However, there is not a
specific timeframe for drafting of and submitting  Law on Competition in which  monopoly related
issues are scheduled to be addressed. Vietnam will notify to the WTO as soon as the concrete
information is available.
Question 174.  
Concerning response to question 296 on the th ree kinds of enterprises operating in Vietnam,
SOE may be mandated to carry out public interest activities unless provision is made for
compensation, the costs associated with such acti vities would seem to place such enterprises at
an economic disadvantage relative to private enterprises.WT/ACC/VNM/9
Page 68
How are these costs and disadvantages dealt with by the Vietnamese Government?
Answer:
State enterprises in Vietnam are divided into two following categories:
- Business State enterprise is a State enterprise that operates with profits as main
objective and orientation;
- Public service State enterprise is a State enterprise that manufactures and provides
public services pursuant to State policies, or directly involved in the discharge of
defense or security tasks.
However, some business State enterprises can be mandated by the State to carry out public
interest activities at certain times.
A public service State enterprise has the right to benefit from the regimes of allowances, price
subsidies and other State preferential regimes when the enterprise performs production duties orprovides services for defense and security sectors, for control of natural calamities, or provides public
services or products or services required by the State’s pricing policies, of which it cannot fully cover
the production or service costs (Article 8.1.d of the Law on State Enterprises).
Question 175.  
Please explain more specifically what is meant by  the term "collective enterprises" and indicate
the legal status of such an enterprises?
Answer:
Collective enterprise (Cooperative) is an autonomous economic organization jointly
established by labourers who have common interest and need and voluntarily unite and contribute
capital and labour with view to mobilizing both collective and individual resources  so as to carry outmore effectively their production, trading and service activities as well as improve their lives, making
contribution to Vietnam’s socio-economic development.
Cooperatives operate under the Law on Cooperatives and their legitimate interests and rights
are protected by the State.
Cooperative is a full legal entity operating in economic sectors and responsible for its
commitments.
Question 176.  
Are the large national corporations or A-category corporations listed in WT/ACC/VNM/2 the
public interest corporations? Or the profit-oriented enterprises?
Answer:
Large National Corporations and A-category Cor porations are all profit-oriented enterprises.
Question 177.  
Vietnam states that it intends to progressively commercialize the operations of SOEs.WT/ACC/VNM/9
Page 69
Would Vietnam please elaborate on this po int as well as provide time-lines for this
liberalization?
Answer:
The answer to Question 279 of document WT/ACC/VNM/5 states that Vietnam intends to
progressively commercialize the operation of enterprises enjoying some special rights or privileges,not State-owned enterprises. This liberalization is associated with the gradual removal of special
privileges granted to State trading enterprise s so as to make them subject to commercial
considerations. The schedule of removal will be provided in WTO accession commitments made by
Vietnam through negotiations.
Question 178.  
Please provide information regarding SOEs that retain "exclusive or special privileges" in the
WTO's format of G/STR/N/4
Answer:
 Information on State enterprises which retain exclusive or special privileges will be provided
in the WTO’ s format of G/STR/N/4 as requested in due time.
Question 179.  
The list in Annex 6 of WT/ACC/VNM/3/Add.1 covers all economic fields where State-trading
enterprises are in operation. Does this list  include non-state controlled enterprises with
designated or exclusive trading rights? If not, please provide a more comprehensive list to
include such enterprises.
Answer:
Information as complete as possible on State trading enterprises will be soon provided in the
format of WT/STR/N/4 of the WTO Secretariat.
Question 180.  
We seek a list of all economic areas where Stat e-trading enterprises are operating, including HS
numbers and descriptions of the products traded by each State-trading enterprise.
Answer:
Please refer to the answer to Question 179.
Enterprises listed in Annex 6 of document WT/ACC/VNM/3/Add.1 include State-owned
enterprises and some non State-owned enterprises whic h are also granted special trading privileges. A
comprehensive list of Vietnam’s State trading enterprises as defined in GATT 1994 is provided in the
Notification of State trading enterprises of Vietnam in the format of G/STR/N/4 of WTO attached
herewith.
Question 181.  
Would Vietnam please elaborate on the defining characteristics of its state trading enterprises,
such as "general Corporations" and "Special Corporations" and what makes them different
from each other?WT/ACC/VNM/9
Page 70
Answer:
Information of state trading enterprises provided in the WTO Secretariat’s formatted
G/STR/N/4 notification attached herewith.
General Corporations have multi-sectoral activities immediately upon their establishment
whereas Specialized Corporations initially register ed in some specific trading lines and subsequently
expand their trading activities onto other lines not prohibited by laws.
Question 182.  
According to Annex 6 of WT/ACC/VNM/3/Add.1, focal-point enterprises in Vietnam engage in
the import of pharmaceuticals, culture products, and materials used in the production of
insecticides and veterinary medicines.
Are these the full range of activities for focal- point enterprises? If not, please provide the
Working Party with a comprehensive list of activities in which focal-point enterprises engage
Answer:
In addition to pharmaceuticals, culture products, and materials used in the production of
insecticides and veterinary medicines, Vietnam also requires that a certain number of items be
imported through focal-point enterprises. A complete list of importing activities in which focal-point
enterprises engage is included in the Notification of State Trading Enterprises of Vietnam in theformat of G/STR/4 of WTO and will be supplement ed if necessary. State trading enterprises conduct
their businesses subject to commercial consideration.
Question 183.  
Are foreign companies afforded the same rights as 'other national corporations and private
companies" to trade in gold, precious metals and stones? If not, please expand on thisdiscriminatory treatment.
Answer:
According to existing regulations, enterprises with foreign owned capital operating in
Vietnam are allowed to engage in the business of gold within the scope of producing, processing and
creating gold jewelry and fine arts, importing raw gold, exporting their products and selling a certainportion of their products for domestic consumption in Vietnam.
There is no  discrimination between enterprises with foreign owned capital and domestic
enterprises in the above mentioned business activities of gold.
Question 184.  
In response to the question, "what exceptions do es Vietnam make for monopolies with regard to
the decision to import," Vietnam states th at State-trading enterprises must carry out
commercial activities including import in co nformity with commercial considerations. This
response does not adequately address the question. We request Vietnam expand further on the
question.WT/ACC/VNM/9
Page 71
Answer:
State agencies, not enterprises, have the authority to make decisions to import. Monopoly
enterprises (if any) are allowed to make decisions on business activities in respect of the concerned
imports but not permitted to decide such issues relating to product policy as quantity, time.
Vietnam so far has not yet issued the Law on anti-trust and anti-unfair competition, therefore,
it is only possible for us to submit the Notification of State Trading Enterprises which is attached to
this document. The Law on anti-trust and anti-unfair competition is scheduled to be enacted in 2003.
Vietnam will provide more details on this law after its promulgation.
Question 185.  
We await a complete list of fields and products, by HS number, in which the "State has the
exclusive right to conduct commercial activities", as provided for in the Commercial Law.
Answer:
At present, Vietnam has not yet issued list of fields and products in which the State has the
exclusive right to conduct commercial activities. Annex G/STR/4 will provide information on
Vietnam’s present State trading enterprises.
Question 186.  
When does Vietnam intend to promulgate an anti-trust law?
Answer:
At present, although Vietnam has not yet promulgated any legal document regulating
systematically matters relating to anti-trust and anti-unfair competition, relevant specific problems
have been provided in existing laws, inclusiv ely the Law on Enterprises, the Commercial Law and
other sub-law documents (Ordinance on consumer  protection of 1999, Decision on State management
of prices of 1992…)
The National Assembly of Vietnam has approved to put the Law on Anti-trust in the 10th
National Assembly’s Formation Program of law and decree. The Ministry of Trade, that was assigned
by the Government as the key responsible body in drafting this law, has started the preparatory works
since 1999 to submit the draft law to National Assembly as soon as possible.
Question 187.  
We understand that new laws were enacted governing the export and import of precious stones,
including gold and silver.
Are these new laws going to affect the trade in gold and other precious metals used for
commercial and industrial use (i.e., gold clasps for necklaces)?
Answer:
The coming new laws are expected to regulate  the trade in gold used for commercial and
industrial purposes with the view to simplifying procedures for gold importing and exporting
(particularly raw gold used to produce gold jewelry and fine-arts for re-export).WT/ACC/VNM/9
Page 72
Question 188.  
Do the new laws imply that there will be no State-trading in gold other than that which is allows
by international standards and consistent with the WTO?
Can a foreign enterprise receive an import licence for gold and silver?
Would they apply to State Bank of Vietnam fo r an import licence for both gold and silver?
Is there a cost associated with the licence?
How long does the licence remain valid?
Are these products listed in Annex 6?
Please elaborate on these procedures and requirements?
Answer:
In respect of gold of international standards:
- Credit institutions and businesses trading in gold of international standards shall have
to obtain business licence  issued by the State Bank of Vietnam.
- The State Bank of Vietnam considers issuing shipment licenses for imports/exports of
gold of international standards to credit institutions and businesses permitted to trade
in gold.
Credit institutions and businesses permitted to trade in gold of international standards shall be
operated within the scope of activities as follows :
- To buy and sell gold of international standards and to use gold of international
standards for conducting other transactions with the State Bank of Vietnam, other
credit institutions, businesses permitted to trade in  gold of international standards, in
accordance with regulations of the State bank of Vietnam, and to use gold ofinternational standard for other purposes  upon the permission of the Prime Minister.
- To export/import gold of international standard on the basis of their shipment
licenses.
In respect of gold of non-international standards:
- At present, the Government of Vietnam is drafting a Decree regulating business
activities relating to gold of non-internatio nal standards. This Decree will elaborate
procedures in obtaining licence for import of gold issued by  the State Bank of
Vietnam to foreign invested enterprises permitted to conduct processing and creating
activities of gold jewelry and fine arts in Vietnam.
- Currently, Vietnam Gemstones, Gold & Silver Corporation is a State Trading
Enterprise conducting exploitation, production and trading activities of gold, silver
and gemstones.
 A foreign enterprise can apply for an import licence for both gold and silver.WT/ACC/VNM/9
Page 73
Question 189.  
The estimated proportion of agricultural production, which is purchased or sold by Vietnam’s
state-owned enterprises, covers a major percentage, e.g. 60 per cent of rice exports, 70 per cent
of coffee for export, 90 per cent of rubber exports, etc. How do the state-owned enterprises fix
the purchase price for export? The purchase and sold regime is supposed to be maintainedthrough the Price Stabilization Fund and some activities through the Fund may be categorized
as export subsidies within the meaning of the agreement on Agriculture. Further information on
the relation between state-owned enterprises, the fund, its functioning and other activities
should be provided.
Answer:
Enterprises, regardless of their ownership forms, are given equal treatment in relation to  the
Price Stabilization Fund and subject to the same operating mechanism.
Since October 1999, the Price Stabilization Fund has been superseded by the Export
Promotion Fund,  which is under the management of  the Ministry of Finance. However, the Export
Promotion Fund has not yet come into operation.
The purchase price for export of agricultural products is determined by enterprises themselves
subject to market mechanism (agreement between seller and buyer).
State-owned enterprises do not fix the purchase price for export, but conduct their purchase
activities according to market price mechanism like all other business enterprises.
(g) Free economic zones
Question 190.  
The response to question 300 makes it clear th at Vietnam’s current regime in its export
processing zones uses prohibited subsidies as incentives to locate in the zone, in that the benefits
are tied to a specific level of exportation from the zone.
Are these all the measures in place in the zone s to encourage investment and export? What is
Vietnam prepared to do to bring these me asures into line with WTO provisions?
How will this be accomplished, and in what timeframe?
Answer:
Complete information on investment encouraging measures in place in export processing
zones are provided in the format of WTO Notification on Industrial  Subsidies attached herewith.
Vietnam will review these measures to bring them into  line with WTO provisions in due course if the
measures encourage the use of products of domestic origin and cause discrimination against imports.
(h) Trade-related environment policies
Question 191.  
Concerning the response to question 303, Vietna m applies its environmental policies equally to
domestically produced and imported automobiles.  However, if Vietnam wishes to limit vehicle
registrations for environmental/traffic conges tion reasons, this need not be accomplished
through a quota system on imported vehicle.WT/ACC/VNM/9
Page 74
We request that Vietnam address how they intend to remove or phasing-out this system and
replace it with one that actually addresses environmental concerns.
Answer:
In order to avoid and control increasing environmental pollution, particularly in urban areas,
due to waste emitted by various types of vehicles and transport infrastructure of low quality, theGovernment of Vietnam has been applying a number of measures to limit import of under-50 seat
cars, under-5 ton trucks. However, Vietnam imports annually around 11-18,000 automobiles of
various types to meet various usage objectives. Meanwhile, domestic automobile manufacturers with
limited production capacity can only manufacture and sell about 5,000 units of various types annually,
i.e. equivalent to 27-54 per cent of imported automobiles. The limit set on the number of imported
automobiles, therefore, is of great importance in  order to conserve environment and ensure the
suitable usage, taken into account the underdeveloped infrastructure system.
Vietnam takes the above mentioned comment for reference and will continue studying to adopt other
measures so as to better satisfy the set target.
(k) Government Procurement
Question 192.  
When will the list of the governmental procuring entities be available?
Answer:
The Government of Vietnam promulgated the Decree No.88/1999/NDD-CP dated 01/9/1999
on Tendering Regulations. The Decree regulates uniformly the management on bidding activities,
consultants selection; goods procurement; construction, installation; selection of partners to
implement the project in full or in part within the territory of S.R.Vietnam. At the moment, thegovernmental agencies including the Ministry of Investment and Planning in cooperation with
Ministry of Finance, Ministry of Trade, Ministry of Construction, the State Bank of Vietnam, and
other heads of related ministries/agencies are currently working on guiding documents to implement
the Decree.
Question 193.  
The reply to question 313 in WT/ACC/VNM/6 outlines the process for publishing tenders for
procurement that is open to international bidders. Could Vietnam explain what the rules are for
publishing tender and whether tender notices are available to the public, including foreign
suppliers (who may have an interest in sub-contracting) when the tender is not open to foreign
bidders?
Answer:
Article 13 of the Regulations on Tendering attached to the Decree No.88/CP dated 1/9/1999
of the Government provides that: “The  tender  opening is made public under the terms of date, time
and location stipulated in the caller of tenders. Additionally, at the tender opening, it is required to
have the opening tender report including name of the tender package; date, time and location of the
tender opening; names and addresses of  bidders; bid price; bid bond (warranty) and implementation
schedule. Representatives of the party calling for tenders and  bidders are required to sign the openingtender report. However, whether the tenders for procurement are open to international bidders or not
is not provided in relevant regulations but is pursuant to procurement’s purposes. (The WTO
Agreement on Government Procurement is just a plurilateral agreement, not a multilateral one).WT/ACC/VNM/9
Page 75
4. Policies affecting Importation and Exportation of Agricultural products
Question 194.  
Further information regarding the domestic su gar production extension program should be
provided. Vietnam currently maintains quantitative restrictions on imports of sugar. Moreover,
Vietnam levies import custom duties at 35 per cent on sugar in order to protect domestic sugarproducers, even though Vietnam is a sugar ex porter. Further detailed information on the
program is requested.
Answer:
Sugarcanes are mainly grown in the mountainous midland, central coastal regions, highlands
and Cuu Long delta area in Vietnam, which are poor and disadvantaged. Before 1995, sugar was
mostly produced by household sugar mills, which led to low quality, material waste and
environmental pollution. In order to overcome such situation and increase peasants’ incomes, since1995, the Government of Vietnam has allocated part of ADB’s loans and China’s ODA and domestic
credits to build up sugar cane refining plants and stimulated FDI to pour into this sector.
After more than 4 years of implementing sugar-cane program, industrial sugar-cane
production capacity can reach 800,000 tonnes per year; 44 sugar plants have been newly built up and
expanded. A number of sugarcane growing areas with high quality and productivity have beendeveloped; more jobs have been created, hunger has been gradually eradicated and poverty eliminated
step by step in rural regions in Vietnam.
The newly established plants, however, have not been able to reach their expected capacity,
resulting in low productivity and high price.  This  fact requires the Government to protect domestic
sugar production so as to ensure reasonable inco me for farmers growing sugar-cane for a reasonable
period.
The existing protection measures applicable to sugar are import licence and import duty
levied at 30 per cent and 40 per cent for crude and refined sugar respectively. Presently, sugar is an
item included in Vietnam’s List of Sensitive Agri cultural Products under CEPT/AFTA and will not be
subject to tax reduction in the short term.
Question 195.  
Vietnam does not seem to restrict the domestic distribution of cigarettes and cigars, even though
it currently prohibits the import of cigarettes and cigars from the viewpoint of human health
protection. Further information should be provided.
In addition to Vietnam’s answer to Question 272 in document WT/ACC/VNM/3, Vietnam
reiterates its policy not to lift the import ban. However, Vietnam should secure the same
treatment on imported items as on domestica lly-produced items, even  though the policy is
aimed at human health protection. Vietnam should ensure its consistency with the WTO
Agreements.
Answer:
Vietnam does not intend to develop tobacco industry. However, it is necessary to best utilize
the already-established tobacco factories and stabilise tobacco farmers’ life.WT/ACC/VNM/9
Page 76
Question 196.  
Vietnam should maintain maximum transparency on tariff-rate quotas. Further information, if
any, on differential treatments for state-owned corporations, and the differences of treatment
between state-owned corporations and private compan ies in relation to the allocation of licenses,
should be informed.
Answer:
Vietnam will inform of the assignment of some specific tasks to state-owned enterprises
immediately as soon as the regulations is publicized providing guidance for the issues in supplement
of the Commercial Law. The discriminatory treatment mentioned in the question does not exist in any
legal document of Vietnam. In enforcement, Vietna m will regularly review the practice to improve the
stability, transparency and non-discrimination of its trading environment.
V. TRADE-RELATED INTELLECTUAL PROPERTY REGIME
2. Substantive standards of protection including procedures for acquisition and
maintenance of intellectual property rights
(a) Copyright and related rights
Question 197.  
Under the Civil Code, are unregistered works protected?
Answer:
Article 754 of the Civil Code and Article 6 of the Decree No.76/C P provide that: “The
copyright over a work shall arise at the moment the work is created and embodied in a certain material
form, whether the work has been published or not, registered or not.”
Therefore, unregistered works are protected under the civil code.
Question 198.  
Are plaintiffs whose works are unregistered required to prove copyright ownership?
Answer:
The plaintiffs who have not registered their works are required to prove ownership of
copyright in the works in case of disputes.
Question 199.  
Concerning the response to question 351, Plea se confirm whether producers of phonograms
enjoy copyright protection under Vietnam law? Pl ease list the exclusive rights they enjoy?
Answer:
Rights of producers of phonograms are protec ted pursuant to Article 766, 777 of the Civil
Code.
Producers of phonograms have exclusive rights:WT/ACC/VNM/9
Page 77
- right to permit or to prevent the duplication of the products;
- right to permit of to prevent the distribution of the products;
- right to be entitled to any benefit from the use of the products.
(d) Industrial designs
Question 200.  
Please elaborate on the manner in which Art 796 and 804 of the Civil Code and Section 34
Decree 63/CP provide the required rights for designs that are "substantially a copy” of a
protected design, as required by Art 26.1 of the TRIPs
Answer:
Article 796 Civil Code provides that the owne r of an industrial design has the right to
exclusively use the industrial design, to licence other persons to use the industrial design, to request
injunction and damage order from the State authority.
According to Article 804 Civil C ode “Any person who uses another person's protected object
of industrial property during the term of protection without permission shall be considered to infringe
the industrial property right”. Article 805 Civil Code provides clearly that infringement of industrial
designs includes “making products modelled after industrial designs protected in Vietnam; importing,
selling, advertising or using of the products modelled after industrial designs protected in Vietnam for
commercial purpose”.
Section 53(1) Decree 63/CP defines the acts of industrial property infringement as follows:
"A person other than the owner of an industrial property object committing one of the using
acts as provided for in Article 805 of the Civil Code and as detailed in Section 34 of this Decree,
within the term of protection, and without permission of the owner”, “shall be considered as havingcommitted an act of infringement of an industrial property right.”
Section 34(2) Decree 63/CP provides in details that the use of industrial design includes the
production of, putting into circulation, advertising, offering or storing for sale, importing a product on
which a protected industrial design has been applied.
Although the prevailing provisions on the industrial design owner’s right mentioned above do
not use exactly the same wording of Article 26.1 of the TRIPS Agreement, they are interpreted and
practiced in a manner compliant with the requirement that the scope of protection of an industrial
design also covers designs that are “substantially a copy”  of the protected design. Particularly, the use
of designs not substantially different from a protected industrial design is also deemed to be
infringement of the right. Such a provision has been introduced to the Decree 12/1999/ND-CP of 6
March 1999 on administrative measures against violations in the fields of industrial property (e.g.
Section 9.1(g)), and also to the Draft amendment to  the Decree 63/CP which has been submitted to the
Government in 1999.
Question 201.  
Please explain the manner in which Art 802 of the Civil Code and Section 51 Decree 63/Cp
accommodate the proviso in Art 26.2 of the TRIPsWT/ACC/VNM/9
Page 78
Answer:
Under the prevailing laws and regulations of Vietnam, the rights to protected industrial
designs are not different from patent rights to inventions. Therefore, restrictive exceptions to
industrial design owners’ rights are similar to thos e to patent owners’ righ ts, including non-voluntary
licenses provided for in Article  802 Civil Code and Section 51 Decree 63/CP. The provisions on non-voluntary licenses with regard to industri al designs are to be understood as follows:
Upon request of persons having the need of using an industrial design, the competent
authority may issue a decision ordering its owner to grant, in return for remuneration, a licence in case
the following conditions are met:
1. The owner fails to use the industrial design or his use fails, without justifiable
reasons, to satisfy the needs of social-economic development of the country;
2. The person having the need of use has tried to negotiate with the owner but failed to
reach an agreement on a contractual licence, even with a reasonable royalty offer;
3. The use of the industrial design is aimed at the satisfaction of the need of national
defense, national security, human health and other urgent needs of the society.
Non-voluntary licenses are only granted in accordance with procedures provided in details in
Section 51 Decree 63/CP. The Draft amendment to  Decree 63/CP which has been submitted to the
Government in 1999 proposes that Section 51 is to be amended to comply with the provisions of Art
31 of the TRIPs.
Therefore, non-voluntary licensing of industrial  designs is a limited exception, compliant with
the provision of Art 26.2 of the TRIPs. Furthermore, the TRIPs does not have such provision
prohibiting non-voluntary licensing of industrial designs as that of trademarks (Art 21).
(e) Patents
Question 202.  
Please explain how all of the conditions that must be imposed upon the grant of a compulsory
licence by virtue of the terms of Art 31 of the TRIPs are accommodated by Art 802 of the Civil
Code and Section 51 Decree 63/CP
Answer:
Regarding non-voluntary licenses for inventions, the prevailing laws and regulations of
Vietnam are in compliance with the Article 31 of the TRIPS Agreement. In particular, the conditions
for granting of a non-voluntary licence provided for in Article 802 of Civil Code are to be understood
as follows:
Upon request of persons having the need of using a protected invention, the competent
authority may issue a decision ordering its owner to grant, in return for remuneration, a licence in case
the following conditions are met:
1. The owner fails to use the invention or his use fails, without justifiable reasons, to
satisfy the needs of social-economic development of the country;
2. The person having the need of use has tried to negotiate with the owner but failed to
reach an agreement on a contractual licence, even with a reasonable royalty offer;WT/ACC/VNM/9
Page 79
3. The use of the invention is aimed at the satisfaction of the need of national defense,
national security, human health and other urgent needs of the society.
Non-voluntary licenses are only granted in accorda nce with the procedures provided in details
in Section 51 Decree 63/CP. The Draft amendment to Decree 63/CP which has been submitted to the
Government in 1999 proposes that Section 51 is to be  amended to comply with the provisions of Art
31 of the TRIPs. Particularly, the draft of the Section is as follows:
"Section 51: License upon decision of the co mpetent State authority ("Non-voluntary
licence").
A non-voluntary licence refers to a permission compulsorily granted by the owner of an
industrial property right, or his or her licensee over  the whole invention, utility solution or industrial
design, to another natural or legal person or another entity to use such industrial property object upon
a decision of the competent State body as provided for in this Section.
The industrial property owner shall be compelled to grant a non-voluntary licence only
subject to the conditions provided for in Article 802 of the Civil Code.
The provisions of paragraph 1 of Article 802 of the Civil Code shall not apply before the
expiration of a period of the four years from the date of filing the application for a Protection Title or
three years from the date of granting the Protection Title.
The industrial property owner who has been compelled to grant a non-voluntary licence is
entitled to request that the non-voluntary licence be terminated when the circumstances which led to it
cease to exist and are unlikely to recur, provided that such termination does not prejudice the grantee
of the non-voluntary licensee.
The Ministry of Science, Technology and Environment is the competent State body having
authority to consider requests for a non-voluntary licence, to issue a decision ordering the grant of a
non-voluntary licence and decision on suspension of a non-voluntary licence.
Documents of the request for a non-voluntary licence shall comply with requirements for
formality and content in accordance with the regulations of the Minister of Science, Technology and
Environment.
Within 15 days from the receipt of the documents requesting a non-voluntary licence, the
Ministry of Science, Technology and Environment shall notify the owner of an industrial property
right, or his or her licensee over the whole invention, utility solution or industrial design, of such
request and shall ask for an opinion in writing within 30 days from the date of notice.
If necessary, the Ministry of Science, Technology and Environment shall request the parties
involved to re-negotiate in order to overcome disputes and agree on a voluntary contractual licence.
Unless an agreement on a voluntary licence has been reached and provided arguments for
objecting to a voluntary licence by the right holder are unreasonable, the Minister of Science,
Technology and Environment shall, within 3 months from the date of receipt of the documents of
request, issue a decision ordering a non-voluntary lic ence to be granted. Otherwise, the Minister of
Science, Technology and Environment shall issue a notice rejecting the request for a non-voluntary
licence.
The Minister of Science, technology and Environment shall, in the decision ordering a non-voluntary
licence to be granted, impose licence conditions in compliance with the following provisions:WT/ACC/VNM/9
Page 80
- A non-voluntary licence shall be non exclusive;
- The scope and duration of a non-voluntary licence shall be limited to the purpose for
which it was granted;
- The party to which a non-voluntary licence is granted shall not assign, except with the
enterprise which enjoy the non-voluntary licence, or grant sub-licence thereof;
- The party to which a non-voluntary licence is granted shall paid adequate
remuneration corresponding to economic value of the use under the non-voluntary
likeness or equivalent to a royalty under contractual licence of equivalent scope and
time limit.
The decision ordering a non-voluntary licence to be granted shall be published in the Official
Gazette of Industrial Property within 1 month from the date of issue.
Within 1 month from the date the Minister of Science, Technology and Environment issues
the decision ordering a non-voluntary licence to be  granted, the right holder shall comply with such
decision on the conditions stipulated therein.
The person who is compelled to grant a non-voluntary licence is entitled to make appeal
against the decision ordering the grant thereof before the Minister of Science, Technology and
Environment.
The person making request for a non-voluntary licence is entitled to make appeal against the
decision refusing the grant thereof before the Minister of Science, Technology and Environment.
The provisions on appeal procedures and settlement of appeals in Section 27 of this Decree
shall also apply to the appeal before the Minister of Science, Technology and Environment under this
subsection, wherein the Minister of Science, Technology and Environment is the person competentfor the first instance.
In case of disagreement with the Science, Technology and Environment Minister’s Decision
on the appeal, the appellant is entitled to, either appeal further to The Prime Minister pursuant to the
Law on appeal, denounce, or initiate a court case in administrative procedures.”
Question 203.  
Please explain whether importation would satisfy the “use” requirement in Art 802 (1) of the
Civil Code
Answer:
According to the definition under Section 34 Decree 63/CP, the use of industrial property
subjects includes importation. Therefore, importation does satisfy the "use" requirement in Art 802(1)
of the Civil Code.
Question 204.  
The list of subject matter “not protected by the State as inventions” in Section 4(4) Decree
63/CP far exceeds that permitted by Art 27.3 of the TRIPs. How does Vietnam reconcile this
extended list with the far more limited list of permitted exclusions in the TRIPs
Answer:
The subject matters excluded from patent protection as provided for in Section 4(4) Decree
63/CP includes:WT/ACC/VNM/9
Page 81
- “- scientific concepts, principles and discoveries;
- methods and systems for economic organization and management;
- methods and systems for education, teaching and training;
- methods for the training of animals;
- systems in regard of linguistics, information, classifications and compiling of
documentation;
- designs and planning schemes for construction works, projects for regional
development and planning;
- solutions concerning only the shape of articles and being of an aesthetic nature only;
- conventional signs, timetables, rules and regulations and symbols;
- computer software, layout designs of integrated circuits, mathematical models,
graphs  and the like;
- plant or animal varieties;
- methods for the prevention, diagnosis or treatment of diseases”.
The subject matters excluded from patentability listed above are essentially equivalent to
those under the European Patent Convention and patent law of many other countries, and particularly
fall under three categories as follows:
- Subject matters that are not technical solutions, i.e. not inventions:
discoveries, scientific theories and mathematical methods (scientific concepts,
principles and discoveries, mathematical models,  graphs  and the like);
- aesthetic creations (solutions concerning only the shape of articles and being of an
aesthetic nature only);
- schemes, rules and methods for performing mental acts (methods and systems for
education, teaching and training); methods for the training of animals; schemes, rules
and methods for doing business (methods and systems for economic organization and
management); computer software; designs and planning schemes for construction
works, projects for regional development and planning;
- presentations of information (systems in regard of linguistics, information,
classifications and compiling of documentation, conventional signs, timetables, rules
and regulations and symbols);
- Subject matters which are not susceptible of industrial application (methods for the
prevention, diagnosis or treatment of human or animal diseases);
- Subject matters which shall be protected in legal systems other than patent (layout
designs of integrated circuits, plant or animal varieties).
Therefore, the subject matters under Section 4(4) Decree 63/CP are permitted to be excluded
from patentability by Article  27 of the TRIPs, except for the prevention, diagnosis or treatment of
diseases of plants. The Draft amendment to Decree 63/CP, which has been submitted to the
Government in 1999, proposes that Section 4(4) is to be amended to comply fully with the provisions
of Art 27 of the TRIPs.
Question 205.  
Please provide the status of Vietnam’s efforts to implement a reversal of the burden of proof in
certain circumstances in accordance with Art 34 of the TRIPs
Answer:
Vietnam’s legislation on civil procedures requires the plaintiff’s proof of his accusation,
rather the defendant’s proof of alibi.WT/ACC/VNM/9
Page 82
The Draft Joint Circular of the Supreme People’s Court, the Supreme People’s Public
Prosecutor and the Ministry of Science, Technology and Environment guiding the judgement of cases
relating to industrial property rights, which is to be promulgated in 2000, includes provisions on
reversal burden of proof imposed on the defendant in certain circumstances as provided for in Art 34
of the TRIPs.
Question 206.  
Please provide status information for the implementation of protection for layout designs of
integrated circuits, in accordan ce with Art 35-38 of the TRIPs?
Answer:
Legislation on the protection for layout designs of integrated circuits in accordance with Art
35-38 of the TRIPS are being made in the Draft Governmental Decree on the protection of layout
designs of integrated circuits and the Draft Circular of the Science, Technology and EnvironmentMinistry guiding the implementation of the Decree. The Drafts are to be submitted for promulgation
in 2000.
Question 207.  
Please provide an action plan for the implementa tion of the Trips Agreement on accession. This
plan should detail the areas of inconsistency of  the current legislation with WTO rules, the lack
of proper legislation as foreseen in the Trips Agreement, the type of measures envisaged to
rectify this situation and the time foreseen for its implementation.
Answer:
Vietnam has been carrying out an established action plan for the implementation of the TRIPS
Agreement consisting of "a legislation plan", "a laws enforcement plan", which detail the areas ofinconsistency of the current legislation of Viet nam with the requirements of the TRIPS Agreement
and the scheduled specific measures to rectify the situation, and "a request for technical assistance" in
order to ensure that the plans will be completed. The action plan of Vietnam is submitted to the
Working Party together with this document.
Question 208.  
Draft legislation on subjects pertaining to the field of intellectual property should be submitted
to the Working Party when ready for comments.
Answer:
Vietnam would like to express its thanks to the Working Party for their willingness to assist
Vietnam in establishing the national legislation . Vietnam would request the Working Party to make
comments on drafts on which our internal unanimity is reached. To this end, however, it would take
much time because the IPR issues are extremely new and controversial even among policy-makers ofVietnam.
Question 209.  
Has the extension of the scope of trademark pr otection, which was scheduled to be enacted in
1998, now entered into force? Could you provide more details on the protection granted?WT/ACC/VNM/9
Page 83
Answer:
The intended extension of the scope of trademar k protection has been introduced to the draft
amendment to the Decree No. 63/CP which has been submitted to the Government in 1999 which is
now considered by the Government. According to the draft, the scope of trademark protection is
provided for in Section 53.1, as follows:
"Section 53. Infringement of industrial property rights...
Any use of a protected industrial property subject matter by persons other than the industrial
property owner shall be considered as an infringement of the industrial property right.
The following acts shall also be considered as an infringement of the industrial property
owner's rights:
....
b) the use of any sign identical with a trademark protected under a Certificate of
trademark registration or an international registration for goods or services identical
with, or similar or related to those in respect of which the trademark is registered,
and/or the use of any sign similar to that trademark for the  goods or services
identical with, similar  or related to those in respect of which the trademark is
registered, where such use would result in  likelihood of confusion about  the sourceof the goods or services;
c) the use of any sign identical with, or similar to, an well-known trademark, or the use
of that trademark in translation or in transliteration for any goods, services, including
goods and services not identical with, similar or related to, goods or services having
goodwill under that trademark, where such use would result in likelihood ofconfusion about the source of goods or false impression on relationship between the
person using the sign and the owner of  the recognized well-known trademark.
Question 210.  
Answer to question 368 is contradictory to question 369 as concerns the right of charitable
organizations to apply for trademark registration. Please clarify.
Answer:
Under Section 14.2 Decree 63/CP, only thos e natural or legal persons who are legally
engaged in business activities (production, trade, and services) can apply for trademark registration
for their goods or services:
“Article 14:  Right to apply for a Protection Title
“2. The right to apply for a Protection Title for a trademark:(a) Natural or legal persons or other entities legally engaged in production shall have the
right to apply for a Protection Title for a trademark to be used  on  their products;
(b) Natural or legal persons or other entities legally engaged in services shall have the
right to apply for a Protection Title for a service mark to be used for their services;WT/ACC/VNM/9
Page 84
(c)       Natural or legal persons or other entities legally engaged in the trade in products
manufactured by a third party shall have the right to apply for a Protection Title for a
trademark to be used for such products, provided the manufacturer does not use such
trademark for the respective products and the manufacturer does not object to such
application;
...”
Therefore, a charitable entity can apply for a trademark registration only if it is legally
engaged in commercial activities. In other words, th ose charitable entities that are not legally engaged
in commercial activities do not have the right to trademark registrations.
However, charitable entities not being engage d in commercial activities are protected against
unauthorized registration as trademarks by other pe rsons of signs and designations identical with, or
similar to, their emblems or designations (subsection 2(g) Section 6 Decree 63/CP).
Vietnam sees no contradiction between the two provisions mentioned above.
Question 211.  
Death penalty for serious counterfeiting of trademarks cannot be accepted. Vietnam should
eliminate it as soon as possible.
Answer:
 The Criminal Code 1985 had no special provisions on infringement of trademark rights. It
rather had provisions on the crime of production of and trading in counterfeits, which are also
applicable to trademark counterfeiting products:
Article 167:   Criminal Code 1985:
“1. Any person involved in the production of, or the trade in, counterfeit goods shall be
sentenced to imprisonment of one to seven years.
2. Any person having committed a crime shall be sentenced to imprisonment from five
to fifteen years in the following cases:
Counterfeit goods are foodstuffs; medicines, prophylactics, construction materials, fertilizers,
pesticides;
The crime has been committed organizationally or professionally;
The crime has been committed  by taking advantage of position, power or of the name of
State authorities, social organizations;
Counterfeit goods are of great quantity and result in unlawful profits;
The crime is seriously repeated.
3. Commitment of the crime with special seriousness shall be sentenced to
imprisonment from 12 to 20 years, life imprisonment or death.”WT/ACC/VNM/9
Page 85
On the 21st December 1999, the National Assembly of the Socialist Republic of Vietnam
adopted the Criminal Code 1999, in which provisions against counterfeit goods above
mentioned has been changed in substance.
- The Criminal Code 1999 has been supplemented special provisions on the crime of
infringement of industrial property rights in Article 171:
"1. Any person, for the commercial purposes, misappropriates, uses illegally an
invention, utility solution, industrial design, trademark, appellation of origin or other
industrial property objects which are being protected in Vietnam where such acts
result in serious consequence, or the person has already been imposed administrative
sanctions on such act, or has been sentenced on this crime and the sentence has not
been eliminated, shall be fined from 20,000,0000 VND to 200,000,000 VND or re-
educated without imprisonment up to  2 years."
2. Any person having committed such a crime shall be sentenced to imprisonment from
six months to three years in the following cases:
a) The crime has been committed organizationally;
b) The crime has been committed repeatedly;
c) The crime results in very serious or especially serious consequence.
3. In addition, the offender may be fined from 10,000,000 VND to 100,000,000 VND,
prohibited from bearing the responsibility for certain positions, practising certain
professions or doing certain works from one to five years.
The crime of production of, and trade in, counterfeited goods has been divided into three
articles, including general provisions on the crime of production of, and trade in, counterfeitedgoods (Article 156) and specific provisions on the crime of production of, and trade in,
counterfeited goods in important fields, namely foodstuffs, medicines, prophylactics (Article
157) and foodstuffs for the animals, fertilizers, veterinary medicines, medicines for protection
of plant, plant and animal varieties (Article 158). There are different penalties for each of the
three types of crimes mentioned above, among which death penalty is provided for only incase of the crime of production of, and trade in, counterfeited goods of foodstuffs, medicines,
prophylactics causing especially serious consequence (Article 157.4).
Thus, according to the newly enacted Criminal Code 1999, death penalty does not apply to
crime of trademark infringement, except in case of production of and trade in trademark
counterfeited goods in the fields of foodstuffs, medicines, and prophylactics resulting in
especially serious consequence.
The new provisions above are necessary to protect public health and nutrition and consistent
with the principle provided for in Article 8.1 of the TRIPS Agreement.WT/ACC/VNM/9
Page 86
V. TRADE IN SERVICES
1. Specific services
 (i) Legal Services
Question 212.  
The answer to Question 420 of WT/ACC/VNM/7 states that, “previous experience in providing
legal constancy services for five or more years in  a foreign law firm as one of the requirements
for allowing foreign lawyers to conduct legal consultancy services in Vietnam. Is it correct to
understand that foreign lawyers can obtain  the required experience in any country?
Answer:
Pursuant to the Decree No.92/1998/ND-CP da ted 10/11/1998 of the Government on legal
consultancy of foreign lawyers organizations in Vietnam which has replaced the Decree No.42/CP
dated 8/7/1995 of the Government promulgating regulations on legal consultancy practices of foreignlaw firms in Vietnam, the requirement for 5-year-experience in legal consultancy field only applies to
chief lawyers of foreign law firms’ branches in Vietnam who can obtain the required experience in
any country. Those who are not chief lawyers of foreign law firms’ branches in Vietnam need only a
practising licence issued by a foreign competent aut hority to be eligible to apply for being allowed to
provide legal consultancy services in foreign law firm’s branches in Vietnam.
Question 213.  
The answer to Question 420 of WT/ACC/VNM/7 provides that "foreign lawyers in Vietnam are
permitted to advise on foreign laws and international laws in the fields of business, investment,
and commerce only". What is the reason for limiting  the fields to just business, investment and
commerce as their scope?
Answer:
Vietnam, at present, does not intend to allow foreign lawyers to advise on Vietnamese and
foreign laws in different areas. This provision is consistent with Vietnam’s transition process.
Question 214.  
It is stated that foreign law firm may sign a “legal consulting co-operation contract” with a
Vietnamese legal service supplier to receive advice on Vietnamese laws. While we note from the
answer to Question 420 (WT/ACC/VNM/7) that foreign lawyers are restricted from practising
local laws, we would like to know what are the inte nded scope of services to be covered by “legal
consulting co-operation contracts”.
Answer:
Pursuant to the Decree No.92/1998/ND-CP da ted 10/11/1998 of the Government on legal
consultancy of foreign lawyers organization in Vietnam, foreign lawyers of foreign law firms’branches in Vietnam are not allowed to advise on Vietnamese laws. However, foreign law firms’
branches in Vietnam may enter into a legal consulting cooperation contracts with a Vietnamese legal
services supplier to receive advice on Vietnamese laws and to provide the Vietnamese law firms with
advice on foreign and international laws. According to the legal consulting cooperation contract, the
foreign law firms’ branches can receive requirements for advice on Vietnamese laws but then have totransfer them to a Vietnamese legal services supplier to handle.WT/ACC/VNM/9
Page 87
Question 215.  
It is noted that the length of per extension peri od for a foreign law firm is now “not more than 5
years”, instead of 3 years as set out in WT/ACC/VNM/5. Would Vietnam consider revising the
document to reflect the change?
Answer:
In answer 422 of document WT/ACC/VNM/6, the extension for a foreign law firm’s branch
in Vietnam has been changed from 3 to 5 years.
(ii-iii)  Accounting service
Question 216.  
The word “previously” seems to suggest that some changes have been made to the licensing
requirements since a point of time. We would like to know what are the current position.
Answer:
At the moment, there is no changes in policies on accountancy and auditing firms other than
those indicated in document WT/ACC/V NM/5. Please refer to answer 217.
Question 217.  
Please provide concrete information about the pl an to relax quantitative restrictions on foreign
accountancy firms after the year 2000.
Answer:
Beyond 2000, licence for foreign auditing firms will be granted  on a case-by-case basis,
taking the bilateral agreement into consideration. Foreign auditing firms can only operate in Vietnam
in the form of a joint-venture with a Vietnamese auditing firm. In order to be issued licence in
Vietnam, foreign auditing firms have to satisfy the requirements provided in the Law on Foreign
Investment in Vietnam and other existing regulations on the establishment and operation of
independent auditing firms. These firms provide services including auditing, accounting, tax
consultancy, financial services. Major clients of these firms are foreign invested enterprises.
(iv-vii) Architectural Services, Engineering Se rvices, Integrated Engineering Services; Urban
Planning Services
Question 218.  
The answer suggests that the conditions for awarding a project and those for granting a permit
to implement the project are the same. But it s has no elaboration on whether these two
procedures are consequential in practice. Judging from WT/ACC/VNM/5, one of the MA
limitations in Mode 3 with respect to Engineerin g services, Integrated engineering services and
Urban planning ,is that a foreign service supplier must first bid for a project. If awarded, he
would  have to apply for a permit, on a case-by- case basis, in order to implement the project.
We wish to have some clarifications from Vietnam on this.WT/ACC/VNM/9
Page 88
Answer:
After winning the tender, foreign invested ente rprises will be considered to be granted a
permit to implement the project on a case-by-case basis in accordance with the relevant regulations.
Please refer to answer 343 (WT/ACC/VNM/6).
Question 219.  
Vietnam does not open its market to foreign advertising companies. Are there any plans to
liberalize the market?
Answer:
 Any advertisement for foreign goods and serv ices in Vietnam, of which the advertising
owners are not Vietnamese legal entities, will be made through an advertisement contract signed with
a Vietnamese eligible enterprise which is a legal entity and has registered advertisement service in its
business scope   (Article 16 of the Decree NO.194/CP dated 31/12/1994 of the Government). Inaddition, foreign advertising companies are allowed to enter into business cooperative contract with
Vietnamese partners with the maximum period of 5 years.
Advertisement in Vietnam is a newly developed sector, therefore, we are planning to
gradually liberalize this market.
2. Telecommunications Services
Question 220.  
It is mentioned that a master plan for telecommunications sector is being developed. We are
interested in getting more information about this plan, e.g., its scope, objectives and timeframe
etc.
Answer:
The scope of the Master Plan for the development of telecommunications sector in Vietnam is
nationwide. Its timeframe is up to 2010. The Master Plan aims at developing a modern national
telecommunications infrastructure. Some specific objectives are: average national telephone density
between 10 to 12 subscribers per 100 inhabitants by 2010; telephone services to cover 100 per cent
communes by 2005.
7. Banking and Financial Services
Question 221.  
Regarding Question  2. Are there any restrictions on foreign ownership in the new Banking and
Credit Institution of Law of 12 December 1997 ? If so, please state these limitations. Does
Vietnam commit to submitting to the Working Party, when available, final copies of the Laws
on Companies, Private Enterprises and Land?
Answer:
In order to implement the Law on Credit Institutions approved by the Vietnamese National
Assembly on 12 December 1997, the Government of Vietnam has issued some legal documents with
the following provisions:WT/ACC/VNM/9
Page 89
1. The proportion of registered capital contribution made by the foreign and the Vietnamese
parties in a Joint Venture bank will be subject to their agreement. For a Joint Venture bank
which acts as a commercial bank, the contribution made by the foreign party must not exceed
50 per cent of the bank’s registered capital.
2. The contribution made by the foreign party in a joint venture non-banking credit institution
must account for at least 30 per cent of its registered capital.
3. With respect to the minimum legal capital, the following threshold will be applied:
- For Joint Venture banks: 10 million USD;
- For foreign banks’ branches: 15 million USD;
- For joint venture non-banking credit institutions: 5 million USD;
- For wholly foreign-owned non-banking credit institutions: 5 million USD
The following limitations on foreign ownership in Vietnamese joint-stock commercial banks
and joint-stock financial companies will be applied:
A foreign legal entity or foreign individual must not own more than 10 per cent of registered
capital of the Vietnamese credit institutions.
Aggregated equity capital proportion owned by foreign shareholders must not exceed 30 per
cent of registered capital of the Vietnamese credit institutions.
In June 1999, Vietnam promulgated the Law on Enterprises, which replaced the Law on
Companies and the Law on Private Enterprises.
The English versions of  Law on Land and law amending, complementing a number of
articles of The Land Law and Law on Enterprises are attached herewith
Question 222.  
Please provide concrete information about the plan  to build two Securities Trading Centers, one
in Hanoi and one in Ho Chi Minh city
Answer:
Pursuant to Decision No.127/1998/QD/TTg date d 11/7/1998 by the Prime Minister of the
Government on the Establishment of the Securities Trading Centers (STCs) in Hanoi and in Ho ChiMinh City, the State Securities Commission of Vietnam,  in collaboration with Ministries and People’s
Committees of Hanoi and Ho Chi Minh city, has worked out a plan on the establishment of the two
Securities Trading Centers as follows:
General principles:
Right at the beginning, the trading systems of both STCs will be automated at small scale and
will be gradually expanded and further developed later;
The HCMC STC will be set up and put into operation first, with its headquarter being located
at 45-47 Ben Chuong Duong Road-District. The STC in Hanoi will be established later, based on
experiences learnt from the operation of the HCMC STC.
Specific activities: In order to put STC into operation, the SSC has been carrying out the
following activities:WT/ACC/VNM/9
Page 90
Formulating legal documents for the operation of the STCs:
The SSC has issued such circulars and regulations as Circular providing guidelines on public
securities issuance and establishment of securities firms; regulations on the membership, listing,
trading, registration, depository, settlement, public information dissemination, regulations on
surveillance and supervision of securities trading on the STCs. The SSC has submitted Decree onPunishment of Administrative Violations in the securities trading and dealing activities to the
Government, and has cooperated with the Ministry of Finance to issue the Accounting Regime
applicable to the STCs. The SSC is now preparing for the issuance of the Accounting Regime
applicable to securities firms by late 1999;
The SSC has further worked in close cooperation with relevant bodies to issue other legal
documents such as those on tax incentives for list ed companies with a view to encouraging their
participation in the STCs;
The SSC has been drafting and issuing documents to provide guidelines on the procedures for
application for depository licence and practising licence for individuals operating in this area; on
establishment and granting business licence for securities firms as well as practitioners.
Preparing stocks to be traded and related se rvices for the STCs: From now on to the end of
1999, the SSC will have completed the following work:
To select companies issuing qualified securi ties to be initially listed in the STCs;
To grant business licenses to selective companies;
To select qualified commercial banks to act as the Designated Clearing Bank and Securities
Custodian Bank;
To approve selective auditing firms to audit financial statements of issuing organizations.Training personnel:  with the support and assistance provided by some countries and
international organizations, the SSC has organized some seminars and workshops on securities for
staff of the SSC and concerned ministries/agencies;
In addition, some staff from the SSC and STCs in Hanoi and HCMC have been sent to some
foreign stock exchanges as well as institutions operating in the securities sector for study tour.
The Securities Research and Skills Training Center (SRSTC) has organized a number of
training courses to grant certificates on securities to staff from banks, corporations and other relevant
organizations who want to apply for securities practising licenses. Moreover, the SRSTC has
consecutively organized basic-level training courses to publicize knowledge relating to securities to
potential investors.
Developing  technical and material facilities and purchasing necessary equipment for the
STCs:
The SSC is seeking solutions for the set-up of the computer system to facilitate securities
trading, depository and settlement activities in the STCs.WT/ACC/VNM/9
Page 91
Question 223.  
Question 439 of document WT/ACC/VNM/5 only touches upon limitations on the scope for
business and business form for “foreign insura nce enterprises”. Our inquire on details in
respect of limitations on the scope of clients and operations remains unanswered.
Answer:
Please refer to answer 126 of document WT/ACC/VNM/3.
Question 224.  
There are some discrepancies between the condit ions for issuance of licenses for various
establishment and operation listed in the answer and those listed in WT/ACC/VNM/5. For
example, we note that the requirement of mi nimum years of operation with sound reputation
has not been included in the cu rrent answer. On the other hand, the requirement of a foreign
credit institution to maintain co-operative rela tionship with Vietnamese economic organizations
has not been mentioned in WT/ACC/VNM/5. Also, we wish to know what “co-operative
relationship” in the latter example means.
Answer:
 reputation applicable to foreign banks are no longer maintained as conditions for granting
licenses. These limitations, therefore, are not indicated in WT/ACC/VNM/6.
It must be noted that “Cooperative relation”  means “Credit relation”, i.e. lending and
borrowing relation between banks and their clients.
Question 225.  
We note that the State Bank of Vietnam is considering the extension of the operation period of
joint venture banks from 20 to 30 years. We wish to know when a decision will be made, andwhether Working Party members wi ll informed of the decision.
Answer:
Article 12 of Decree No 13/1999/ND-CP dated 17 March, 1999 on organization and
operation of foreign credit institutions and Foreign credit Organization's representative offices in
Vietnam stipulates that: the duration of joint venture bank in Vietnam shall not exceed 30 years.
Question 226.  
We note that Vietnam has provided details on its discriminatory price control. We would like to
know if there are other national treatment li mitations in forms other than price control.
Answer:
The provisions on National Treatment are concrete and applied to each services sector. Please
refer to document  WT/ACC/VNM/5, WT/ACC/V NM/5/Add.1, and related questions in document
WT/ACC/VNM/3/Add.2 and WT/ACC/VNM/6.
Regarding limitations on NT other than price cont rol, there are still some restrictions applied
in specific services sectors as indicated in document WT/ACC/VNM/5.WT/ACC/VNM/9
Page 92
VI. INSTITUTIONAL BASE FORE TRADE AND ECONOMIC RELATIONS WITH
THIRD COUNTRIES
Question 227.  
Has a trade agreement between Vietnam and USA being concluded? If so, please describe its
content and provide a copy of the agreement to the Working Party.
Answer:
The US - Vietnam Bilateral Trade Agreement has not been signed and are being negotiated in
order to solve some existing outstanding.
Question 228.  
Difficulties to recognize judicial precedents are arising because no law reports are currently
being published, even though publicity of a trial is secured. All judicial precedents should be
published.
The official gazette should be published on Int ernet in order to secure widespread access by the
civil society, both in Vietnam and in foreign countries.
Answer:
In Vietnam, the courts’ trials at different levels are publicly exercised; the provision of the
copies of the court’s judgement to people engaged in the law suit as well as others related is alsopublicized as stipulated by the law.
Vietnamese courts’ judgements are independent from the precedent-cases, but dependent on
legal regulations. However, the final judgements of the courts are considered as experiences used for
the building-up process of Vietnamese legal system.
Presently, official gazette were publicly loaded on the Internet, however, the English version
has not been completed.WT/ACC/VNM/9
Page 93ANNEX 1
LIST OF IMPORTED ITEMS SUBJECT TO NON-TARIFF BARRIERS IN 1999
HS Description STR Prohibition QR Surcharges/
feesImport
licensingLicensing
authority
Weapon, ammunition, explosives
(excluding industrial explosives
specifically regulated by the Prime
Minister), technical military equipmentX
Narcotics X
Toxic chemicals X
Depraved and reactionary cultural products X
Firecracker (excluding fire signal used for
maritime safety and other purposes as
stipulated by the Prime Minister)X
Children toys having adversely effect in
moral education and social securityX
Cigarettes (except for certain quantity
brought as personal belongings)X
Left hand automobile (including its
components and those repaired to right
hand ones). Specializing left hand vehicles
operating in small area such as cranes,
passengers transporting cars in airport,
Channel excavators, dustbin lorries, StreetCleaning Lorries, road surfacing machines,
Airport passenger transportation car, Fork-
lifts at warehouses and ports are allowed to
be imported upon requirementX
Second hand spare parts of various kinds
of automobile, 2, 3 wheel-motorbikes
including second hand motor-attachedframes of various kinds of automobiles.X
Amian materials under amphibole group. X
Below 30 CV second hand internal
combustion engine .XWT/ACC/VNM/9
Page 94HS Description STR Prohibition QR Surcharges/
feesImport
licensingLicensing
authority
1507-1516 Vegetable oil X Ministry of
Trade
1701  Raw sugar and beet sugar X ditto
2523 1000,
2523 2910Clinker, black cement X X
2710 Gasoline X X X X ditto
2815 NaOH liquid X ditto
2204-2208 Spirits X X
(spirits of over
30o vol )X ditto
0906, 1211,
1302, 2936,
2938, 2940,
2941, 2950,
3001, 3003,
3004, 3005,3006, 3301Pharmaceutical materials and
pharmaceutical productsX
3102-3105 Fertilizer X X X  X ditto
3812 DOP X X ditto
3917, 3921 PVC X
3923 Plastic packages X
4801, 4802,
4804, 4807,
4810, 4820,
4823Various types of papers X ditto
6907, 6908 Ceramic and granite tiles X ditto
6910-6913,
7013Porcelain and glass consumer goods
including sanitary wareX ditto
7003-7005,
7016Construction glass X  X X ditto
7212-7216,
7303, 7305,
7306,
7312-7314Construction steel X X ditto
8414 Electric fans X dittoWT/ACC/VNM/9
Page 95HS Description STR Prohibition QR Surcharges/
feesImport
licensingLicensing
authority
8702 15-20 seat cars X ditto
8703 Cars of less than 15 seats X ditto
8704 2100,
8704 3100,
8704 9010Trucks with loading capacity of less than 5
tonnesX ditto
8711 2, 3 wheel-motorbikes and components in
form of SKD and CKDX ditto
8712  Bicycles X ditto
8714 Various types of 2, 3 wheel-motorbikes
and framesX ditto
Acronyms: STR State Trading Enterprises;
QR Quantitative RestrictionsWT/ACC/VNM/9
Page 96
ANNEX II
List of Export prohibited products, unless indicated in investment licenses of FDI enterprises
List 1
Export prohibition
- Weapon, ammunition, explosives, technical military equipment
- Antique
- Narcotics
- Toxic chemicals
- Log, sawn timber, husked wood, fire wood, mi ning coal from wood or fire wood, other
wooden products from group IA and high quality -manufactured pallet from group IIA (refer
to the notice), rattan materials
- Various kinds of wild animal and preciously natural animals and plans
List 2
Products subject to export quota
- Rice
- Textile and garment exported to EU, Canada, Norway, Turkey markets
List 3
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 produced from cultivated forest’s wood, from
imported wood and from artificial pallet implemented under the provision  of the Prime
Minister in Decision No. 136/1998/Q§-TTg ngµy 31/7/1998)
- MineralsWT/ACC/VNM/9
Page 97
Notice
Group IA Group IIA
Calocedrus macrolepis
Taxus chinensis
Cephalotaxus fortuneiPodocarpus neriifolius
Pinus kwangtugenis
Pinus dalatensis
Glyptostrobus pensillis
Keteleeria calcarea
Amentotaxus argotenia
Abies nukiangensisAquilaria crassana
Copressus torulosa
Ducampopinus krempfiiDalbergia oliverrii Gamble
Dalbergia bariaensis
      Dalbergia oliverrii Gamble      Dalbergia dongnaiensis
Afzelia xylocarpa
Sindora cochinchinensis
Sindora tonkinensis – A.Chev
Pterocarpus pedatus Pierre
Pterocarpus cambodianus PierrePterocarpus 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 pasquieriBurretiodendron hsienmu
Erythophloeum fordii
Padocarpus fleuryi
Rauwolfia verticillata
Morinda officinalisLilium brownii
Panax vietnammensis
Amomum longfiligulare
Amomum tsaokoWT/ACC/VNM/9
Page 98
ANNEX III
List of Narcotics
(Attached to the Decisi on No. 2033/1999/Q§_BYT dated 09 July 1999 of the Minister of Health)
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-dim ethylamino-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- Diphe nyl-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-
propionylpiperidine)
21. Levomethadon (3-Heptanone, 6- (dimethylamino)-4,4-Diphenyl,
(R)
22. Levorphanol ((-)-3-hydroxy-N-methylmorphinan)
23. Meptazinol (3(-3-Ethyl-1- methylperhydroazepin-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-
normorphineWT/ACC/VNM/9
Page 99
28. Nicocodin Morphinan- 6- ol, 7,8- Dihydro- 4,5-epoxy- 3
methoxy-17- methyl-3-pyridin mecarboxxylate
(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- hydr oxydihydromorphinone)
35. Pethidin (1-methyl-4-phenylpiperodine-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)
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) cyclohexanolWT/ACC/VNM/9
Page 100
List of Narcotics in form of Mixture
(Attached to the Decision N o. 2033/1999/Q§_BYT dated 09 July 1999 of Minister of Health)
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 AtropinSulfat in per dosage unit of
product.
6. Difenoxylat No more than 2,5mg Difenoxylat
and at least 0,025 mg AtropinSulfat 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
__________