RESTRICTED  
  
WT/TPR/S/410  
2 March 2021  
(21-1767) Page: 1/185 
Trade Policy Review Body   
 
TRADE POLICY REVIEW  
REPORT BY THE SECRETARIAT  
VIET NAM 
This report, prepared for the second Trade Policy Review of Viet Nam, has been drawn up by the 
WTO Secretariat on its own responsibility. The Secretariat has, as required by the Agreement 
establishing the Trade Policy Review Mechanism (Annex 3 of the Marrakesh Agreement Establishing 
the World Trade Organization), sought clarification from Viet Nam on its trade policies and practices.  
 
Any technical questions arising from this repo rt may be addressed to Mr Masahiro Hayafuji (tel: 022 
739 5873); Mr Xinyi Li (tel: 022 739 5579) ; and Mr Cristian Ugarte (tel: 022 739 6638).  
 
Document WT/TPR/G/410 contains the policy statement submitted by Viet Nam.  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note: This report is subject to restricted circulation and press embargo until the end of the first 
session of the meeting of the Trade Policy Review Body on Viet Nam. This report was drafted in 
English.  WT/TPR/S/ 410 • Viet Nam  
 
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  CONTENTS  
SUMMARY  ................................ ................................ ................................ ........................  8 
1   ECONOMIC ENVIRONMENT  ................................ ................................ ........................  13 
1.1   Main Features of the Economy  ................................ ................................ ..................... 13 
1.2   Recent Economic Developments  ................................ ................................ ................... 15 
1.2.1    Overview/background  ................................ ................................ .............................. 15 
1.2.2    Fiscal policy  ................................ ................................ ................................ ............ 17 
1.2.3    Monetary p olicy ................................ ................................ ................................ .......18 
1.2.4    Exchange rates and balance of payments  ................................ ................................ ...19 
1.2.5    Impact of the COVID -19 pandemic  ................................ ................................ ............. 20 
1.3   Developments in Trade and Investment  ................................ ................................ ........ 22 
1.3.1    Trends and patterns in merchandise and services trade  ................................ ................ 22 
1.3.1.1    Merchandise trade  ................................ ................................ ................................ .22 
1.3.1.2    Participation in global value chains  ................................ ................................ .......... 25 
1.3.1.3    Impact of COVID -19 pandemic on global valu e chains  ................................ ............... 27 
1.3.1.4    Trade in services  ................................ ................................ ................................ ...28 
1.3.2    Trends and patterns in FDI  ................................ ................................ ....................... 29 
2   TRADE AND INVESTMENT REGIMES ................................ ................................ ...........  32 
2.1   General Framework  ................................ ................................ ................................ ....32 
2.1.1    Institutional framework  ................................ ................................ ............................ 32 
2.1.2    International agreements  ................................ ................................ ......................... 33 
2.1.3    Transparency and certainty  ................................ ................................ ....................... 33 
2.2   Trade Policy Formulation and Objectives  ................................ ................................ ........ 35 
2.2.1    Trade policy objectives  ................................ ................................ ............................. 35 
2.2.2    Trade policy formulation and implementation  ................................ .............................. 35 
2.3   Trade Agreements and Arrangements  ................................ ................................ ........... 36 
2.3.1    WTO ................................ ................................ ................................ ...................... 36 
2.3.2    Regional and preferential agreements  ................................ ................................ ........ 36 
2.3.2.1    ASEAN  ................................ ................................ ................................ ................. 37 
2.3.2.1.1    ASEAN Free Trade Area  ................................ ................................ ....................... 37 
2.3.2.1.2    ASEAN -Hong Kong, China Free Trade Agreement  ................................ ................... 38 
2.3.2.1.3    ASEAN -India Agreement on Trade in Services  ................................ ........................ 38 
2.3.2.1.4    Other ASEAN RTAs  ................................ ................................ ............................. 39 
2.3.2.2    Comprehensive and Progressive Agreemen t for Trans -Pacific Partnership (CPTPP) ......... 39 
2.3.2.3    European  Union -Viet Nam Free Trade Agreement (EVFTA)  ................................ ......... 40 
2.3.2.4    Free Trade Agreement between Viet  Nam and the Eurasian Economic Union (EAEU)  
and its member States (VN -EAEU FTA)  ................................ ................................ ................. 40 
2.3.2.5    Free Trade Agreement between the Government of the Socialist Republic of Viet  Nam  
and the Government of the Republic of Korea  (VKFTA)  ................................ ........................... 40 
2.3.2.6    Free Trade Agreement between Viet  Nam and Chile  ................................ .................. 41 WT/TPR/S/ 410 • Viet Nam  
 
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  2.3.2.7    Trade Agreement between the Government of the Socialist Republic of Viet  Nam  
and the Government of the Republic of Cuba (Viet  Nam-Cuba Trade Agreement)  ....................... 41 
2.3.2.8    Regional Comprehensive Economic Partnership (RCEP)  ................................ .............. 42 
2.3.3    Other agreements and arrangements  ................................ ................................ ......... 42 
2.4   Investment Regime  ................................ ................................ ................................ ....42 
3   TRADE POLICIES AND PRACTICES BY MEASURE  ................................ ........................  48 
3.1   Measures Directly Affecting Imports  ................................ ................................ .............. 48 
3.1.1    Customs procedures, valuation, and requirements  ................................ ....................... 48 
3.1.1.1    Customs procedures  ................................ ................................ .............................. 48 
3.1.1.2    Customs valuation  ................................ ................................ ................................ 51 
3.1.2    Rules of origin  ................................ ................................ ................................ ......... 52 
3.1.3    Tariffs  ................................ ................................ ................................ .................... 53 
3.1.4    Other charges affecting imports  ................................ ................................ ................. 59 
3.1.5    Import prohibitions, restrictions, and licensing  ................................ ............................ 63 
3.1.6    Anti-dumping, countervailing, and safeguard measures  ................................ ................ 66 
3.1.7    Other measures affecting imports  ................................ ................................ .............. 69 
3.2   Measures Directly Affecting Exports  ................................ ................................ .............. 69 
3.2.1    Customs procedures and requirements  ................................ ................................ .......69 
3.2.2    Taxes, charges, and levies  ................................ ................................ ........................ 70 
3.2.3    Export prohibitions, restrictions , and licensing  ................................ ............................. 73 
3.2.4    Export support and promotion  ................................ ................................ ................... 73 
3.2.5    Export  finance, insurance, and guarantees  ................................ ................................ ..76 
3.3   Measures Affecting Production and Trade  ................................ ................................ .......76 
3.3.1    Incentives  ................................ ................................ ................................ ............... 76 
3.3.2    Standards and other technical requirements  ................................ ............................... 78 
3.3.3    Sanitary and phytosanitary requirements  ................................ ................................ ....84 
3.3.4    Competition policy and price controls  ................................ ................................ ......... 88 
3.3.4.1    Competition policy  ................................ ................................ ................................ 88 
3.3.4.1.1    Legal and institutional frameworks  ................................ ................................ .......88 
3.3.4.1.2    Anti-competitive agreements  ................................ ................................ ............... 89 
3.3.4.1.3    Abuse of a dominant market position  ................................ ................................ ....89 
3.3.4.1.4    Economic concentration  ................................ ................................ ...................... 90 
3.3.4.1.5    Penalties, leniency programme, and enforcement  ................................ ................... 90 
3.3.4.1.6    International treaties and cooperation  ................................ ................................ ..91 
3.3.4.2    Price controls ................................ ................................ ................................ ........ 91 
3.3.5    State trading, state -owned enterprises, and privatization  ................................ ............. 93 
3.3.5.1    State trading  ................................ ................................ ................................ ........ 93 
3.3.5.2    State -owned enterprises and privatization  ................................ ................................ 93 
3.3.6    Government procurement  ................................ ................................ ......................... 97 
3.3.6.1    Overview of legal and institutional framework  ................................ ........................... 97 
3.3.6.2    Procurement methods, time periods, bid evaluation, and bid protests  .......................... 98 WT/TPR/S/ 410 • Viet Nam  
 
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  3.3.6.3    Domestic preference and other preference policies  ................................ ..................  100 
3.3.6.4    Government procurement commitments under FTAs  ................................ ...............  100 
3.3.7    Intellectual property rights  ................................ ................................ ......................  102 
3.3.7.1    Overview  ................................ ................................ ................................ ...........  102 
3.3.7.2    Legislative and institutional framework/developments  ................................ .............  103 
3.3.7.3    Industrial property  ................................ ................................ ..............................  104 
3.3.7.3.1    Patents  ................................ ................................ ................................ ...........  105 
3.3.7.3.2    Industrial designs  ................................ ................................ .............................  105 
3.3.7.3.3    Layout designs of integrated circuits  ................................ ................................ ... 105 
3.3.7.3.4    Trade secrets  ................................ ................................ ................................ ... 106 
3.3.7.3.5    Trademarks  ................................ ................................ ................................ ..... 106 
3.3.7.3.6    Geographical indications  ................................ ................................ ...................  106 
3.3.7.3.7    Protection of plant varieties  ................................ ................................ ...............  106 
3.3.7.4    Copyright and related rights  ................................ ................................ .................  107 
3.3.7.5    Parallel imports  ................................ ................................ ................................ ... 107 
3.3.7.6    Enforcement  ................................ ................................ ................................ ....... 107 
3.3.7.6.1    International cooperation and integration  ................................ ............................  108 
4   TRADE POLICIES BY SECTOR  ................................ ................................ ...................  110  
4.1   Agriculture, Forestry, and Fisheries  ................................ ................................ .............  110 
4.1.1    Features  ................................ ................................ ................................ ...............  110 
4.1.2    Agricult ure ................................ ................................ ................................ ............  112 
4.1.2.1    Legal, institutional, and policy framework  ................................ ..............................  112 
4.1.2.2    Border measures  ................................ ................................ ................................  113 
4.1.2.3    Domestic support  ................................ ................................ ................................  114 
4.1.3    Fisheries  ................................ ................................ ................................ ...............  115 
4.1.3.1    Features  ................................ ................................ ................................ ............  115 
4.1.3.2    Trade  ................................ ................................ ................................ ................  116 
4.1.3.3    Policies  ................................ ................................ ................................ ..............  117 
4.2   Mining and Energy  ................................ ................................ ................................ .... 119 
4.2.1    Mining  ................................ ................................ ................................ ..................  119 
4.2.2    Energy  ................................ ................................ ................................ .................  122 
4.2.2.1    Electricity  ................................ ................................ ................................ ...........  123 
4.2.2.2    Hydrocarbons  ................................ ................................ ................................ ..... 127 
4.2.2.2.1    Upstream  ................................ ................................ ................................ ........  127 
4.2.2.2.2    Downstream  ................................ ................................ ................................ .... 129 
4.2.2.2.3    Natural gas  ................................ ................................ ................................ ..... 130 
4.3   Manufacturing  ................................ ................................ ................................ ..........  131 
4.3.1    Textiles and garments  ................................ ................................ ............................  132 
4.3.2   Motor vehicles  ................................ ................................ ................................ ....... 133 
4.3.3    Other manufacturing activities  ................................ ................................ .................  134 WT/TPR/S/ 410 • Viet Nam  
 
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  4.4   Services  ................................ ................................ ................................ ..................  135 
4.4.1    Features  ................................ ................................ ................................ ...............  135 
4.4.2    Overall commitments under the General Agreement on Trade in Services  .....................  136 
4.4.3    Regional and bilateral agreements on services ................................ ...........................  136 
4.4.4    Financial services  ................................ ................................ ................................ ... 137 
4.4.4.1    Banking  ................................ ................................ ................................ .............  137 
4.4.4.2    Insurance  ................................ ................................ ................................ ..........  141 
4.4.4.3    Securities  ................................ ................................ ................................ ...........  143 
4.4.5    Telecommunications  ................................ ................................ ...............................  144 
4.4.6    Transport  ................................ ................................ ................................ ..............  147 
4.4.6.1    Maritime transport  ................................ ................................ ..............................  148 
4.4.6.2    Air transport  ................................ ................................ ................................ ....... 150 
4.4.6.3    Land transport  ................................ ................................ ................................ .... 154 
4.4.7    Distribution services  ................................ ................................ ...............................  155 
5   APPENDIX TABLES  ................................ ................................ ................................ .. 157  
 
CHARTS  
 
Chart 1.1 Productivity and total factor productivity (TFP), 2013 -19 ................................ .......... 14 
Chart 1.2 Expenditure component contributions to GDP growth, 2013 -19 ................................ ..15 
Chart 1.3 Tax revenue by source, 2013 -19 ................................ ................................ ........... 17 
Chart 1.4 Product composition of merchandise trade by main HS sections, 2012 and 2019  ......... 23 
Chart 1.5 Population by economic class, 2010 -16................................ ................................ ...24 
Chart 1.6 Direction of merchan dise trade, 2012 and 2019  ................................ ....................... 25 
Chart 1.7 Merchandise trade, by end -use, 2019  ................................ ................................ .....26 
Chart 1.8 Share of electric/electronic trade, by end -use, 2019  ................................ ................. 26 
Chart 1.9 Major trading partners of electronic products, by end -use, 2019  ................................ 27 
Chart 1.10 Major trading p artners for garment apparel, by end -use, 2019  ................................ 27 
Chart 1.11 Major merchandise trade of manufacturing sectors, 2019 -20 ................................ ...28 
Chart 1.12 Foreign direct investment, 2000 -19 ................................ ................................ ......29 
Chart 1.13 FDI stock and productivity by sector, 2019  ................................ ............................ 30 
Chart 3.1 Average applied MFN rates, by HS section, 2013 and 2020  ................................ .......55 
Chart 3.2 Distribution of MFN tariff rates, 2013 and 2020  ................................ ....................... 57 
Chart 3.3 Standards organizational structure in the Ministry of Science and Technology, 2020 .....79 
 
TABLES  
 
Table 1.1 GDP, 2013 -19 ................................ ................................ ................................ .....13 
Table 1.2 Selected macroeconomic indicators, 2013 -19 ................................ .......................... 16 
Table 1.3 Balance of payments, 2013 -19 ................................ ................................ .............. 20 WT/TPR/S/ 410 • Viet Nam  
 
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  Table 1.4 Trade in services, 2013 -19 ................................ ................................ .................... 28 
Table 1.5 Inward foreign investment stock by sector, 2019  ................................ ..................... 29 
Table 2.1 RTAs of which Viet  Nam is a party, June 2020  ................................ ......................... 37 
Table 2.2 Caps on fo reign participation in specific sectors and activities, 2020  ........................... 43 
Table 3.1 Tariff structure, 2013 and 2020  ................................ ................................ ............. 53 
Table 3.2 Summary analysis of the preferential tariff, 2020  ................................ ..................... 56 
Table 3.3 Tariff quotas, 2016 -19 ................................ ................................ .......................... 57 
Table 3.4 Goods and services subject to the excise tax, 2019  ................................ .................. 60 
Table 3.5 Products subject to environmental protection tax, 2020  ................................ ............ 61 
Table 3.6 Goods and services not subject to VAT, December 2020  ................................ ........... 62 
Table 3.7 Import prohibitions, 2020  ................................ ................................ ..................... 64 
Table 3.8 Export charges and fees,  2020 ................................ ................................ .............. 70 
Table 3.9 Royalty payments on natural resources  ................................ ................................ ..71 
Table 3.10 The STAMEQ in international and regional standards organizations, 2020  .................. 80 
Table 3.11 Goods subject to mandatory inspection and quality control, 2020  ............................. 83 
Table 3.12 Certificates required for importing food and agricultural products, 2020  .................... 85 
Table 3.13 Decrees on price management, 2020  ................................ ................................ ....91 
Table 3.14 Selected large SOEs, 2019  ................................ ................................ .................. 93 
Table 3.15 Procurement methods and conditions for use, 2020  ................................ ................ 99 
Table 3.16 Comparison of market access offers under the CPTPP and the EVFTA  ......................  101 
Table 3.17 Trademarks, ind ustrial designs, and patents and utility solutions, 2013 -19 ..............  104 
Table 3.18 Applications of layout design of integrated circuits and certificates granted, 2013-19 105 
Table 3.19 IPR infringement cases, 2013 -19 ................................ ................................ ....... 108 
Table 3.20 International IPR treaties in force for Viet  Nam, 2020  ................................ ...........  109 
Table 4.1 Production of selected commodities, 2013 -19 ................................ ........................  110 
Table 4.2 Exports and imports of agricul tural products, 2013 -19 ................................ ............  111 
 
BOXES  
 
Box 1.1 Fiscal measures introduced to support the economy and counter the effects of the  
COVID -19 pandemic  ................................ ................................ ................................ ........... 21 
Box 2.1 The system of legal normative documents, 2020  ................................ ........................ 34 
 
APPENDIX TABLES  
 
Table  A1.1 Merchandise exports by HS sections and major HS subgroups, 2012 -19 .................  157 
Table A1.2 Merchandise imports by HS sections and major HS chapters, 2012 -19 ....................  158 
Table A1.3 Merchandise exports by destination, 2012 -19 ................................ ......................  159 
Table A1.4 Merchandise imports by origin, 2012 -19 ................................ .............................  160 
 
 WT/TPR/S/ 410 • Viet Nam  
 
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  Table A2.1 Selected notifications, 2013 -20 ................................ ................................ ..........  161 
 
 
Table A3.1 Legislation pertaining to Viet  Nam's rules of origin, 2013 -20................................ .. 163 
Table A3.2 Tariff summary, 20 20 ................................ ................................ .......................  167 
Table A3.3 Tariff lines whose applied MFN tariff rates exceed bound rates, 20 20 ......................  169 
Table A3.4 Goods subject to import restriction, 2020  ................................ ............................  170 
Table A3.5 Anti-dumping and safeguard measures initiated between  2013 and 2019  ................  173 
Table A3.6 Export taxes , 1 January 20 20 ................................ ................................ ............  175 
Table A3.7 Goods subject to export prohibition, restriction, 2020  ................................ ...........  178 
Table A3.8 Principal legislation on technical measuresa ................................ .........................  180 
Table A3.9 Basic SPS legislation  ................................ ................................ .........................  182 
Table A3.10 Main laws, regulations, and guidelines for IPRs  ................................ ..................  185 
 
 
  WT/TPR/S/ 410 • Viet Nam  
 
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  SUMMARY  
1. Over the past 30 years, Viet  Nam sustained high GDP growth rates, which transformed the 
country into a lower -middle -income emerging economy; the poverty rate declined sharply from 
above 70% in the early 1990s to below 6% in 2019. The economy grew at an average rate of 6.6% 
per annum between 2014 and 2018 and reached a 10 -year high of 7.1% in 2018. In 2019, real GDP 
grew by 7%, with GDP per capita reaching over USD 2,700. Preliminary data showed that GDP 
growth in 2020 slowed down to 2.5%, reflecting the impact of the COVID -19 pandemic.  
2. Viet Nam pursues export -oriented trade pol icies and recognizes international economic 
integration as a key driver for its institutional improvement, economic growth, and development. In 
the Strategy on Exports and Imports for 2011 -20, Vision to 2030, Viet  Nam set trade -related targets 
such as a do uble-digit annual growth rate of exports, a slower growth rate of imports than of exports, 
and a gradual reduction of the trade deficit, until reaching a surplus in the next decade.  
3. The country's economic expansion in recent years was underpinned by robus t domestic 
demand and manufacturing exports. Since its last Review in 2013, Viet  Nam further integrated into 
the world economy, with its ratio of trade to GDP increasing from 165% in 2013 to 210% in 2019. 
Reflecting strong economic fundamentals, the real e ffective exchange rate of the Vietnamese dong 
appreciated by 4% on average each year. In August 2015, the floating band of exchange rates 
increased to 3%, from 1% previously.  
4. During the review period, merchandise trade grew at a double -digit rate annually , in real 
terms. This reflected its active participation in global value chains (GVCs), emerging as a 
manufacturing centre for apparel and consumer electronics, particularly smart phones. In 2019, 
about 85% of imported electronic products were intermediate  goods, slightly half of which were 
supplied by the Republic of Korea and China; 44% of exports of electronic products were final 
consumer goods, half of which were shipped to the United States, the United Arab Emirates, and 
Austria. Viet  Nam maintained a surplus in trade in goods and services, as well as in remittances.  
5. Foreign direct investment (FDI) plays a key role in Viet  Nam's economic transformation, 
representing 20% of GDP and generating 5 million jobs in 2019. FDI is also the main driving force 
of the country's productivity improvement. More than 17,000 foreign investment projects with total 
registered capital of USD 143.1 billion were approved during the review period; processing and 
manufacturing accounted for around 62% of the total foreign capit al invested in the country.  
6. Given its deep integration into the global economy, Viet  Nam suffered from the COVID -19 
pandemic due to weakened demand and reduced trade. However, preliminary evidence indicates 
that Viet  Nam's merchandise trade based on GVCs in 2020, particularly in the consumer electronics 
and garment sectors, appeared not to be losing momentum, compared with those sectors' 
performance in 2019, partly reflecting the Government's proactive measures.  
7. Since January 2016, Viet  Nam has implemente d fiscal consolidation, strictly limiting the 
issuance of government guarantees and stabilizing the state budget deficit; this policy enabled 
Viet Nam to lower government and public debts in relation to GDP, creating some fiscal space to 
deal with short - or long -term structural challenges, such as the ones that have arisen from the 
COVID -19 pandemic, contingent liabilities of both state -owned enterprises (SOEs) and banking 
sector, and climate change. Facing the COVID -19 pandemic, Viet  Nam introduced a serie s of fiscal 
measures and incentives to replace lost income and boost growth, including a fiscal support package 
equivalent to 3.6% of GDP, fee cuts, tax payment deferrals and deductions, and financial incentives 
for employers and employees. Consequently, t he general government deficit and the public -debt-
to-GDP ratio in 2020 are expected to increase to around 5% and 57%, respectively.  
8. Viet Nam considers that its WTO membership plays a central role in its international 
integration strategy. Viet  Nam submitte d its instruments of acceptance for the WTO Agreement on 
Trade Facilitation in December 2015, and for the amendment of the TRIPS Agreement in January 
2017. It participates in the Information Technology Agreement (ITA), but not in the Agreement's 
expansion (ITA 2). During the review period, Viet  Nam submitted more than 350 notifications to 
various WTO committees, and 5 complaints to the WTO dispute settlement body.  WT/TPR/S/ 410 • Viet Nam  
 
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  9. As at January 2021, Viet  Nam was a signatory to 15 regional trade agreements (RTAs), 6 of 
which were signed during the review period, including the Comprehensive and Progressive 
Agreement for Trans -Pacific Partnership (CPTPP) and the Regional Comprehensive Economic 
Partnership.  
10. Viet Nam's investment regime was substantially updated by revising bot h the Enterprise Law 
and the Investment Law in July 2015. The legislation aims to attract FDI by equalizing business 
conditions for SOEs, foreign -invested enterprises, and the domestic private sector. The number of 
restricted activities was reduced, compar ed with that in the previous framework. The general cap of 
49% for foreign acquisition of public companies operating in unconditional sectors was abolished in 
2015; however, foreign participation in some sectors remains capped at levels between 30% and 
51%. Moreover, the number of eligible fields for the implementation of public -private partnership 
(PPP) projects was increased in 2018. On 1 January 2021, a revised Enterprise Law, a revised 
Investment Law, and a new Law on Investment in the Form on Public -Private Partnership entered 
into force. Viet  Nam signed five bilateral investment agreements during the review period.  
11. Viet Nam continued to reform its policies and measures on customs procedures based on its 
Customs Development Strategy to 2020 . In line with this Strategy, it adopted or revised relevant 
legislation, including the Customs Law and the Law on Export Tax and Import T ax. Customs units at 
all levels implement risk management. Customs uses an automatic customs clearance and national 
single -window mechanism . 
12. All tariffs are bound , and mostly in the 0% -40% range. The simple average applied MFN rate 
for all goods was 11.9%  in 2020 , up from 10.4% in 2013 , mainly due to the change from the HS12 
to the HS17 nomenclature and the splitting of several tariff lines . Only second -hand motor vehicles 
are subject to applied non -ad valorem  rates.  The highest tariffs include 135% for fiv e tariff lines 
concerning cigarettes.  In 2020, the average bound rate was 14.7%. The simple average applied MFN 
tariff was 18.1% for agricultural products (WTO definition) and 10.9% for non -agricultural products. 
The difference between bound and applied MF N rates leaves some scope for flexibility in Viet  Nam's 
tariff policy . Tariff rate quotas regulate imports of eggs, sugar cane, tobacco, and salt.  
13. Excise tax is levied on certain goods and services , including cigarettes, alcoholic beverages, 
motor vehicle s, motorcycles, and gasoline. No distinction is made between domestically produced 
and imported goods . Excise tax is levied on the import -duty-inclusive price for imports on a c.i.f. 
basis. The environmental protection tax continues to be applied on petrol eum products, coal, 
hydrogen -chlorofluorocarbon liquids, plastic bags, and various pesticides and herbicides; this list  has 
remained  unchanged since Viet Nam's previous Review. Value -added tax, which is levied at a general 
rate of 10%, constitutes almost o ne third of the Government's total tax revenue, while import and 
export duties account for about one tenth.  
14. Viet Nam prohibits the importation of, inter alia , certain chemicals, weapons, right -hand drive 
vehicles, and certain used consumer goods ; this list has not changed  since 2013. Import restrictions 
may also be applied to comply with international treaties and conventions to which Viet  Nam is a 
party. Goods subject to import restrictions administered by various ministries entail import licensing 
requirements. The licensing requirement is also employed to administer importation of goods subject 
to tariff quotas. Exports and imports can also be temporarily suspended in exceptional 
circumstances, such as war, natural disasters, epidemics, or environment al incidents; products 
causing  serious effects on health and the environment; and balance of payment reasons.  
15. The Law on Foreign Trade Management is the main legislation governing anti -dumping, 
countervailing, and safeguard measures. Viet  Nam notified laws  and regulations pertaining to anti -
dumping, countervailing, and safeguard measures to the WTO in 2018 and 2020; it also responded 
to detailed questions on its anti -dumping regime in 2019. Between 2013 and 2019, Viet  Nam had 
five anti -dumping measures in p lace and four cases under investigation; it also had four safeguard 
measures in place. The main products covered by these measures include steel, aluminium, and 
fertilizer.  
16. Viet Nam levies export taxes on certain products, such as fish, minerals, coal, ru bber, and raw 
hides and skins. The export tax rates changed frequently during the review period. The country also 
levies royalties (severance tax) on natural resources, such as basic metals and minerals, timber, 
water, crude oil, and natural gas used in do mestic  production or exported. Viet  Nam enforces a WT/TPR/S/ 410 • Viet Nam  
 
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  number of export prohibitions, restrictions, and licensing in accordance with the Law on Foreign 
Trade Management and relevant regulations.  
17. As at June 2019, Viet  Nam had four export processing zones . Preferential export and import 
taxes apply to companies, both domestic and foreign, located in the zones.  
18. Viet Nam provides investment incentives, mainly through tax reductions, for projects in 
geographical areas with difficult socio -economic conditions or in i ndustrial zones. Specific supports, 
such as access to credit, lower taxes and land rents, and exemption of import duties, are also 
accorded to some selected activities and sectors, such as fishery products, small - and medium -sized 
enterprises, supporting i ndustries, or renewable energy. Investors participating in significant PPP 
projects may benefit from additional incentives, such as guarantees on land use and foreign currency 
availability. Following the onset of COVID -19 pandemic, Viet  Nam introduced a se ries of measures 
and incentives, alleviating the impact on enterprises; these measures included an extension of time 
limits for tax payments, a reduction of corporate income taxes, and temporary discounts in electricity 
bills. 
19. The overall regulatory framew ork for standards and technical regulations remained largely 
unchanged. According to the authorities, 60% of Vietnamese standards were harmonized with 
international, regional, or foreign standards in 2020, up from 40% in 2013. Goods classified as 
"capable of causing unsafety", whether imported or domestically produced, are subject to conformity 
assessment as set forth in the relevant technical regulations. Requirements concerning conformity 
assessment must be fulfilled before the product is circulated in th e market. A new decree pertaining 
to labelling requirements entered into force in April 2017. During the review period, Viet  Nam 
submitted 152 notifications, covering a large variety of products, to the WTO TBT Committee, and 
four specific trade concerns ( STCs), concerning alcoholic beverages, inspection on imported vehicles, 
cybersecurity regulations, and electronic products, were raised in the Committee.  
20. The Government implemented a national food safety strategy for 2011 -20 with the aim of 
controlling fo od safety over the entire food supply chain by 2020. Food -inspection laboratories and 
facilities were operational in provinces by 2020, and according to the Strategy, all food production, 
processing, and trading establishments are expected to meet food saf ety conditions by 2030. In line 
with this objective, Viet  Nam modernized its regime concerning sanitary and phytosanitary 
requirements. The relevant legislation covers issues such as food safety for imported food, 
quarantine requirements, fertilizer and pe sticide management, and maximum residue levels of 
pesticides on food. These regulatory changes were notified to the WTO through 84 notifications to 
the SPS Committee. Since 2013, eight STCs have been raised at the SPS Committee, and two of 
them have been r eported as resolved or partially resolved in 2017.  
21. Viet Nam modernized its institutional framework for competition. With the enactment of the 
Law on Competition and its implementation decrees, the National Competition Commission (NCC) 
was created as the e nforcement authority. The creation of the NCC was expected to address some 
issues of regulatory deficiencies that were identified with the previous regime. The NCC is responsible 
for investigating and adjudicating anti -competitive acts, monitoring economic  concentration, and 
settling complaints about its decisions. Since July 2019, 20 claims have been filed with the NCC, of 
which 11 were related to unfair trade practices, and 9 to anti -competitive agreements and abuse of 
a dominant market position; the NCC has also completed 60 economic concentration reviews.  
22. Viet Nam maintains price controls on certain goods and services. According to the authorities, 
price controls are primarily achieved in an indirect manner. The Ministry of Finance at the national 
level and the Department of Finance at the provincial level are the competent authorities for 
implementing price management. The authorities note that price stabilization is currently applied 
only to refined petroleum products. It is estimated that continuing pr ice liberalization would add 
about 2 percentage points to the Consumer Price Index.  
23. Viet Nam notified to the WTO its state  trading enterprises concerning cigarettes, cigars, 
newspapers, journals, and periodicals. Viet  Nam also submitted replies to questio ns posed in the 
Working Party on State Trading Enterprises. As at 31 December 2018, SOEs employed 1.13  million 
workers, accounting for 7.6% of the employees of the corporate sector . The number of 100% SOEs 
fell from 1,309 at the end of 2011 to 487 at the e nd of 2019. Concerning the governance and 
management of SOEs in Viet  Nam, a number of laws and regulations were issued during the review WT/TPR/S/ 410 • Viet Nam  
 
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  period, including the 2014 Enterprise Law  and the  2014 Law on Management and Use of State Capital 
Invested in Productio n and Business Activities .  
24. The government procurement regime was revised to expand the scope of application, 
covering: (i)  development investment projects and procurements of which at least 30% of the 
project value is financed through the state budget; an d (ii)  investment projects by SOEs. 
Government procurement may be conducted through domestic bidding or international bidding. In 
the case of domestic bidding, only domestic tenderers are allowed to participate in a tender. In 
general, foreign suppliers mu st have a partnership with domestic contractors or be sub -contractors 
of domestic contractors when participating in an international bid, unless domestic contractors do 
not have full capacity to participate in a bidding. Preference for 25% of domestic valu e is maintained 
in the procurement system, regardless of whether it is a domestic or international bidding. Viet  Nam 
is not a signatory to the Agreement on Government Procurement (GPA). In two recently signed 
RTAs, i.e. the CPTPP and the European Union -Viet Nam Free Trade Agreement, Viet  Nam made its 
first commitments to open its government procurement to foreign suppliers bidding directly from 
abroad. The government procurement chapters of both Agreements are based, to a large extent, on 
the legal text and  market access schedule structure of the GPA.  
25. With regard to intellectual property rights (IPRs), the Law on Intellectual Property was 
amended in June 2019. The amendment aims to implement commitments under the CPTPP. On 
1 July 2018, the Law on Technology Transfer was revised. The revised Law requires disclosure of 
technology secrets under certain circumstances, such as on the ground of national security, national 
defence, social welfare, and other interests of the State and society. Viet  Nam has a regime o f 
international exhaustion; therefore, parallel imports are not considered to infringe on IPRs. 
Counterfeiting and piracy remain the major IPR infringements. IPR enforcement is primarily 
practised through the imposition of administrative penalties; civil a nd criminal remedies are rarely 
or ineffectively used. To address the issue of IPR enforcement, Viet  Nam established a National 
Steering Committee against Smuggling, Counterfeiting and Trade Fraud in March 2014.  
26. In 2019, agriculture, forestry, and fisheries contributed 15.5% to GDP (down from 20.0% in 
2013)  and 34.5% to employment (down from 46.7% in 2013). The main agricultural products 
include rice, coffee, and rubber. In 2019, Viet  Nam had a deficit in agricultural trad e. Both imports 
and exports of agricultural products increased between 2013 and 2018; in 2019, they both declined. 
The m ain exports included coconuts, rice, and coffee; the main imports included cotton and maize.  
The main agricultural policy development was the adoption of various laws, such as the Laws on 
Irrigation, Animal Health, Animal Husbandry, and Crop Production, and relevant regulations.  
27. Fisheries represented 2.3% of merchandise exports in 2019 (down from 3.8% in 2013). In 
2018, the f ishery catch amounted to 3,590 tonnes, an increase of 6% compared with 2017. Viet  Nam 
had a trade surplus in fisheries products. The fisheries policy is included in the Master Plan on 
Fisheries Development through 2020, Vision to 2030, which sets objective s for turning fisheries into 
a highly competitive, large community production sector. The Fisheries Development Policies provide 
support measures to the sector, such as credits for new vessels, subsidized accident insurance, and 
tax exemptions between 2015  and 2018.  
28. The Government set targets for efficiency and conservation of energy until 2030 and promoted 
the development of  renewable energy; however, adverse climate conditions in the country increased 
its reliance on coal, oil, and gas for energy producti on. Viet  Nam became a net importer of coal in 
2019; with the operation of a second oil refinery in 2018, Viet  Nam reduced its exports of crude oil 
as well as its imports of refined oil. The regulatory framework of the energy sector remained largely 
unchang ed, except for a revision in royalty rates in 2015. The Government promoted the 
restructuring and equitization of subsidiaries of main SOEs in the sector, and the ownership role of 
the State in large conglomerates was transferred to the recently establishe d Commission for the 
Management of State Capital in Enterprises. Viet  Nam runs a Price Stabilization Fund for different 
petroleum products.  
29. Some segments of the electricity market shifted towards increased competition between 
service providers; three state -owned generation corporations underwent equitization and two other 
corporation are expected to complete similar procedures in coming years. The wholesale market for 
electricity started operations in 2019, and a fully operational retail electricity market is planned for 
2024. The State continues to hold a monopoly in transmission, management of the national 
electricity system, and construction and operation of "large" electricity plants. The Government WT/TPR/S/ 410 • Viet Nam  
 
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  regulates retail electricity prices that vary between c onsumer groups, time of consumption, and 
voltage levels.  
30. Viet Nam seeks to continue developing its manufacturing sector , and its national strategy 
prioritizes some selected subsectors. During the review period, manufacturing exports more than 
doubled and f oreign -invested enterprises account ed for nearly 70% of total merchandise exports in 
2019. Some subsectors witnessed a notable performance in recent years , while the overall impact 
of policies in other subsectors is still to be seen. For example, domestic production and exports of 
footwear and garments substantially increased during the review period , and  Viet Nam aims to 
attract foreign investment for the development of its pharmaceutical industry through regulatory 
changes . Lower labour costs and a supply  of relatively skilled workers are drivers behind the recent 
increase of inward FDI in manufacturing. Investment incentives and tariff protection are other policy 
tools used for the development of some industries.  
31. Services are the main sector in the econo my. In 2019, the share of services in GDP was 
46.2%, up from 43.1% in 2013. Most services are oriented to serve the domestic market. Viet  Nam 
committed to some further liberalization  of its services sector in recent bilateral and regional trade 
agreements.  
32. The banking sector is dominated by state -owned commercial banks; the State reduced its 
participation in some of them. The review period was marked by consolidation among commercial 
banks, in most of cases, to support weak banks. The State Bank of Viet  Nam also intervened in 
commercial banks through compulsory acquisitions. Compliance with Basel II requirements, 
reduction of cross -ownership, and handling of non -performing loans were the main objectives 
decided by the Government for the banking system; some progress in achieving these objectives 
was observed. Other financial services (insurance and securities) are expected to continue to grow 
rapidly, as their coverage and use expand among the population.  
33. The telecommunications market is expected to expand in  coming years, reflecting the 
development of IT -related activities. Mobile communication is the main, as well as the fastest -
growing, segment and the commercialization of 5G started in December 2020. Three SOEs dominate 
the market, while the State plans to  reduce its participation in two of them through equitization. The 
policy framework regulating the sector has remained largely unchanged since the last Review. 
Interconnection rates are controlled by the Government, while operators are free to determine re tail 
tariffs for other services. Viet  Nam operates a public fund for the development and provision of public 
utility telecommunications services.  
34. The overall integration of infrastructure projects in the transport sector remains a challenge 
for resolving s ome multi -modal bottlenecks and for supporting the country's transformation. PPPs 
are considered as a key source of funding for transport development in coming years. Foreign firms 
dominate the overseas cargo shipping market, and no domestic support measur e is applied by the 
Government; only  ships flying the national flag are entitled to inland sea transport. Maritime cargo 
is concentrated around a few seaports, and some ports operate near or at their capacity. Since 2017, 
private investment in ports is all owed. The authorities applied reductions in fees to promote the use 
of new infrastructure. Viet  Nam Airlines, the national flag carrier largely controlled by the State, 
remains a key player for air transport and related services. The first airport develope d under a PPP 
project became operational in 2018; caps on foreign capital apply in air transport services.  
Renovated and new airport infrastructure attracted foreign carriers to the international passenger 
transport market. The liberalization through the A SEAN Open Skies policy in January 2015 and 
granting reductions in service fees on new routes or for carriers entering the market are expected 
to further increase competition in the air transport market. As for land transport, funding 
mobilization and budge t allocation are limited compared with the demand for road infrastructure. 
The Government aims to densify  road infrastructure, notably expressways, and to upgrad e existing 
routes through PPPs. The development of railway infrastructure is lagging , despite t he update of its 
legal framework in 2017 . Foreign investment is not present in this segment.  
35. The number of supermarkets, shopping centres, and convenience stores is on the rise , and 
competition has pushed retail ers to consolidate in the past five years. Economic needs test s for retail 
outlets are under the responsibility of provincial authorities. Since 2015, wholly foreign -owned 
companies have been allowed in almost all distribu tion services; however, trading rights and 
distribution rights are separately granted. Viet  Nam reduced the list of forbidden products by foreign -
invested distributors.WT/TPR/S/ 410 • Viet Nam  
 
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  1  ECONOMIC ENVIRONMENT  
1.1  Main Features of the Economy  
1.1.  The economy of Viet  Nam is a "socialist -oriented market economy", as defined by Viet  Nam's 
constitution. It is characterized by economic dualism combining government planning with free -
market incentives.1 Extensive market reforms have been carried out since the dawn of the Doi Moi 
era in 19862; however, the structural transformation is not yet complete, with an uneven playing 
field between the State and the private sector.3  
1.2.  Viet Nam sustained high growth rates that transformed the country from one of the poorest to 
a lower -middle -income emerging economy over the past 30 years. More than 45 million people were 
lifted out of poverty (measured as USD 3.2/day in purchasing power parity); the poverty rate 
declined sharply from above 70% in early 1990s to below 6% in 2019.4 GDP per capit a reached over 
USD 2,700 in 2019.  
1.3.  The services sector is the largest sector in terms of contribution to both GDP (46.2% in 2019) 
and employment (35.4% of the labour force). Within services, "wholesale and retail trade; repair of 
motor vehicles" is the lar gest subsector, accounting for 12.4% of GDP and 13.3% of employment in 
2019. Financial services, though employing only 0.9% of the labour force, was the fastest -growing 
subsector, with an annual growth rate around 8% since 2016, accounting for almost 6% of  GDP in 
2019. Manufacturing has been the fastest -growing sector, recording double -digit annual growth 
rates since 2015; it accounted for about 18.3% of GDP and some 69% of the total value of 
merchandise exports in 2019. Agriculture and related activities r emain an important sector; despite 
the decline in its share of GDP to 15.5% in 2019, it employed almost 35% of the workers (Table  1.1).  
Table 1.1 GDP, 2013 -19 
  2013  2014  2015  2016  2017  2018  2019  
Current GDP (VND trillion)  3,584.3  3,937.9  4,192.9  4,502.7  5,006.0  5,542.3  6,037.3  
Current GDP (USD billion)  171.2  186.2  193.2  205.3  223.8  245.2  261.9  
GDP per capita (USD)  1,898.4  2,041.6  2,095.2  2,201.3  2,373.4  2,570.8  2,714.7  
GDP by economic activity at current basic prices (%)  
Agriculture, forestry, and fishing  20.0 19.7 18.9 18.1 17.0 16.3 15.5 
Mining and quarrying  12.2 12.0 10.7 9.0 8.3 8.2 7.5 
Manufacturing  14.8 14.7 15.2 15.9 17.0 17.8 18.3 
Electricity, gas, and water supply  4.1 4.6 5.0 5.2 5.4 5.6 5.9 
Construction  5.7 5.7 6.0 6.2 6.4 6.5 6.6 
Services  43.1 43.4 44.2 45.5 45.8 45.7 46.2 
Wholesale and retail trade; repair of 
motor vehicles  10.5 10.9 11.3 11.7 11.9 12.1 12.4 
  Transportation and storage  3.2 3.2 3.0 3.0 3.0 3.0 3.1 
Accommodation and food -service 
activities  4.2 4.2 4.1 4.2 4.3 4.2 4.2 
  Information and communication  0.8 0.8 0.8 0.8 0.8 0.8 0.8 
Financial, banking, and insurance 
activities  6.1 5.8 6.1 6.1 6.1 5.9 5.9 
  Real estate activities  5.9 5.7 5.6 5.6 5.3 5.1 5.0 
 
1 Dualism in Viet  Nam consists of a large state sector and a private sector. The state sector easily 
attracts investment, disproportionate to its productivity or its job creation, compared with the private sector. It 
enjoys a wide range of administrative fa cilities, in addition to the protection provided for them. Dualism in 
Viet Nam also features its economic development transforming from an agricultural economy to one dominated 
by manufacturing and services sectors, as observed through the lack of connecti on between the foreign -
invested sector and the domestic economic sector. For details, see UNDP (2013), Viet Nam's Economy: 
Success Story or Weird Dualism ? Viewed at: 
https://www.vn.undp.org/content/vietnam/en/home/library/poverty/viet -nam_s -economy --success -story-or-
weird -dualism -.html; also Baum (2020 ), Vietnam's Development Success Story and the Unfinished SDG 
Agenda , IMF Working Paper WP/20/31, Viewed at: 
https://www.imf.org/~/media/Files/Publications/WP/2020/English/wpiea2020031 -print-pdf.ashx .  
2 Doi Moi ("rejuvenation") is the process that dismantled the largely planned economy (beginning with 
agricultural reforms), opened a closed economy to international markets and trade, and initiated pro -business 
reforms. Agricultural collectives were abolis hed, and the land was distributed among small farmers with 
20-year leases. At the same time, price controls on agricultural goods were removed, as farmers and industrial 
producers were allowed to sell their goods at market price for a profit.  
3 IMF (2019),  Vietnam: 2019 Article IV Consultation –Press Release; Staff Report; and Statement by the 
Executive Director for Vietnam , IMF Country Report No. 19/235.  
4 World Bank, The World Bank in Vietnam.  Viewed at: 
https://www.worldbank.org/en/country/vietnam/overview .  WT/TPR/S/ 410 • Viet Nam  
 
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    2013  2014  2015  2016  2017  2018  2019  
Professional, scientific, and technical 
activities  1.5 1.4 1.5 1.5 1.4 1.4 1.4 
Administrative and support service 
activities  0.4 0.4 0.4 0.4 0.4 0.4 0.4 
State management & national defence; 
compulsory social security  2.9 3.0 3.0 3.1 3.1 3.0 3.0 
  Education and training  3.3 3.4 3.6 3.8 3.9 4.1 4.2 
  Human health and social work activities  1.8 1.9 1.9 2.4 2.9 3.0 3.1 
  Other services  2.6 2.7 2.7 2.8 2.8 2.7 2.7 
Share of sector in total employment (%)  
Agriculture, forestry, and fishing  46.7 46.3 43.6 41.6 40.0 37.6 34.5 
Mining and quarrying  0.5 0.5 0.4 0.4 0.4 0.4 0.4 
Manufacturing  13.9 14.1 15.9 17.0 17.8 18.4 20.7 
Electricity, gas, and water supply  0.5 0.5 0.5 0.6 0.5 0.6 0.7 
Construction  6.3 6.3 6.2 7.2 7.6 7.9 8.4 
Services  32.0 32.4 33.4 33.3 33.8 35.1 35.4 
Wholesale and retail trade; repair of 
motor vehicles  12.6 12.6 12.7 12.7 12.8 13.4 13.3 
  Transportation and storage  2.9 2.9 3.1 3.0 3.2 3.2 3.6 
Accommodation and food -service 
activities  4.2 4.4 4.6 4.6 4.6 5.0 5.0 
  Information and communication  0.6 0.6 0.7 0.6 0.6 0.6 0.6 
Financial, banking, and insurance 
activities  0.6 0.7 0.7 0.7 0.7 0.8 0.9 
  Real estate activities  0.3 0.3 0.3 0.4 0.4 0.5 0.6 
Professional, scientific, and technical 
activities  0.5 0.5 0.5 0.4 0.5 0.5 0.6 
Administrative and support service 
activities  0.5 0.5 0.6 0.5 0.6 0.6 0.7 
State management & national defence; 
compulsory social security  3.1 3.2 3.2 3.2 3.2 3.0 2.7 
  Education and training  3.5 3.5 3.5 3.5 3.7 3.9 3.6 
  Human health and social work activities  0.9 0.9 1.0 1.1 1.0 1.1 1.1 
  Other service activities  2.3 2.3 2.6 2.5 2.5 2.6 2.8 
Source:  General Statistics Office of Viet  Nam, and data provided by the authorities.  
1.4.  Viet Nam has a young population. In 2019, the population was 96.2 million, with a median age 
of 31. Around 67% of the population is of working age (i.e. between 15 and 64), with a 77% labour 
participation rate, and around 62% o f the labour force is between 25 and 49. This stable age 
structure (i.e. the ratio of pensioners and students to workers) facilitates fiscal policy formulation, 
in terms of taxation and allocation of government spending, as it allays the concerns that are present 
in economies with aging populations.  
Chart 1.1 Productivity and total factor productivity (TFP), 2013 -19 
 
Note:  Productivity is measured as GDP per worker.  
Source:  Information provided by the authorities.  
1.5.  Trade integration is central to Viet  Nam's reform efforts (Section 2.2.1). During  the review 
period, Viet  Nam integrated quickly into the world economy, with its ratio of trade to GDP increasing 
from 165% in 2013 to 210% in 2019 (Table 1.2). Viet Nam recently  updated its trade regime, 
including modernizing its customs legislation and procedures  (Sections 3.1 and 3.2). Trade  
0%10%20%30%40%50%60%
0%1%2%3%4%5%6%7%
2013 2014 2015 2016 2017 2018 2019Contribution of TFP to GDP growth (right scale)
Productivity growth rate (left scale)
TFP growth rate (left scale)Chart 1.[VNM]  Productivity and TFP growth rate, 2013 -19
Source: Information provided by the authorities.WT/TPR/S/ 410 • Viet Nam  
 
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  integration facilitated Viet  Nam's partic ipation in global value chains (GVCs), first as an exporter of 
low-tech manufactured goods and later of more complex high -tech goods. Since acceding to the 
WTO in 2007, Viet  Nam has subscribed to 15 regional trade agreements (RTAs), 7 of which were 
signed during the review period (Section  2.3.2). Against the background of Viet  Nam's efforts 
towards international integration, there were productivity gains, which were important contributors 
to GDP expansion (Chart 1.1 and Table 1.2).  
1.6.  To keep up with total fa ctor productivity (TFP) growth, and despite considerable effort in recent 
years (see below), further investment is likely to be needed, as the economy is running close to 
capacity. According to the IMF, the output gap in 2018 was 0.6%.5 Apart from increas ed investment, 
further structural reforms, including tackling the dualism in Viet  Nam's twin transition from a planned 
to a market economy and from farms to factories and services, are much needed to raise the 
potential growth path. Viet  Nam is also expect ed to promote growth by exploiting rapid digital 
innovation and reshaping its participation in supply chains.  
1.2  Recent Economic Developments  
1.2.1   Overview/background  
1.7.  During the review period, Viet  Nam's economy demonstrated fundamental strength and 
resilience; it  grew at an average rate of 6.6% per annum between 2014 and 2018 and reached a 
10-year high of 7.1% in 2018. Manufacturing surged and direct investment inflows remained strong. 
In 2019, preliminary data indicated that real GDP grew by 7% (Table 1.2).  
Char t 1.2 Expenditure component contributions to GDP growth, 2013 -19 
 
Source:  Information provided by the authorities.  
1.8.  The economic expansion was supported by robust domestic demand and export -oriented 
manufactur ing (Chart 1.2). Domestic demand was fuelled by strong growth in final consumption and 
investment, both of which grew at faster paces than GDP (Table 1.2). Investment, in terms of gross 
capital formation, has been growing between 8% and 10% each year since  2014, which contributed 
50% of total growth in 2019. Of the 7% of GDP growth in 2019, 6.5 percentage points were 
 
5 IMF (2019), Vietnam: 2019 Article IV Consultation –Press Release; Staff Report; and Statement by the 
Executive Director for Vietnam, IMF Country Report No. 19/235.  
-10-505101520
2013 2014 2015 2016 2017 2018 2019Chart 1. [VNM] Contributions to percent change in real GDP, 2013 -19
Percentage points
General Statistics Office of Viet Nam. Statistical summary book and Statistical Handbook of Viet Nam  
(various issues).  Viewed at:   https://www.gso.gov.vn/Default_en.aspx?tabid=515 [June 2020].Private final consumption expenditure
Government final consumption expenditure Net exports of goods & servicesGross capital formationTotal GDP growth
Source: WT/TPR/S/ 410 • Viet Nam  
 
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  attributed to private consumption. Both strong capital formation and private consumption reflected 
the massive infrastructure investment and t he loose credit supply in the last decade.   
1.9.  Economic growth in recent years was also driven by strong performance of imports and exports, 
reflecting Viet  Nam's active participation in GVCs (Section 1.3.1. 2). Although  net exports mostly  had 
a negative contribution to GDP growth during the review period, the external current account balance 
reversed its deterioration trend in 2018 and continued. (Section 1.2.4).  
Table 1.2 Selected macroeconomic indicators, 2013 -19 
  2013  2014  2015  2016  2017  2018  2019  
National accounts  
Current GDP (VND trillion)  
(real growth rate)  3,584.3  
(5.4)  3,937.9  
(6.0)  4,192.9  
(6.7)  4,502.7  
(6.2)  5,006.0  
(6.8)  5,542.3  
(7.1)  6,037.3  
(7.0)  
   Consumption  2,566.8  
(5.4) 2,838.0  
(6.2) 3,115.1  
(9.1) 3,379.4  
(7.3) 3,731.6  
(7.3) 4,103.7  
(7.2) 4,505.2  
(7.2) 
        Private consumption  2,346.2  
(5.2) 2,591.3  
(6.1) 2,849.5  
(9.3) 3,086.3  
(7.3) 3,405.8  
(7.3) 3,745.1  
(7.3) 4,115.2  
(7.4) 
        Government consumption  220.6  
(7.3) 246.7  
(7.0) 265.5  
(7.0) 293.1  
(7.5) 325.8  
(7.3) 358.6  
(6.3) 390.1  
(5.8) 
   Gross capital formation  956.1  
(5.4) 1,056.6  
(8.9) 1,160.4  
(9.0) 1,196.7  
(9.7) 1,330.7  
(9.8) 1,470.6  
(8.2) 1,620.7  
(7.9) 
      Gross fixed capital formation  847.5  
(5.3) 938.5  
(9.3) 1,033.8  
(9.4) 1,066.2  
(9.9) 1,190.5  
(10.2)  1,321.9  
(8.7) 1,463.0  
(8.3) 
   Exports of goods and services 
(XGS)  2,997.4  
(17.4)  3,402.5  
(11.6)  3,764.3  
(12.6)  4,215.6  
(13.9)  5,085.7  
(16.7)  5,865.5  
(14.3)  6,447.6  
(6.7) 
   Imports of goods and services 
(MGS)  2,920.0  
(17.3)  3,273.5  
(12.8)  3,731.2  
(18.1)  4,100.3  
(15.3)  4,945.5  
(17.5)  5,679.5  
(12.8)  6,255.0  
(8.3) 
      XGS/GDP (%)  83.6 86.4 89.8 93.6 101.6  105.8  106.8  
      MGS/GDP (%)  81.5 83.1 89.0 91.1 98.8 102.5  103.6  
Unemployment rate (%)  2.2 2.1 2.3 2.3 2.2 2.2 2.2 
   Urban  3.6 3.4 3.4 3.2 3.2 3.1 3.1 
Productivity  
Labour productivity growth rate 
(based on number of employment)  3.8 4.9 6.5 5.3 6.0 5.9 6.3 
Contribution of TFP to GDP growth  30.3 39.7 53.3 40.7 45.6 45.2 47.0 
TFP growth rate  1.64 2.4 3.6 2.5 3.1 3.2 3.24 
Prices and interest rates  
Inflation (CPI % change)  6.6 4.1 0.6 2.7 3.5 3.5 2.8 
Lending rate (%)  10.4 8.7 7.1 7.0 7.1 7.4 7.7 
Deposit rate (%)  7.1 5.8 4.7 5.0 4.8 4.7 5.0 
Exchange rate  
VND/USD (annual average)  20,933.4  21,148.0  21,697.6  21,935.0  22,370.1  22,602.1  23,050.2  
Nominal effective exchange rate 
(end-period)  88.3 93.9 97.6 97.7 91.2 93.1 .. 
Real effective exchange rate (end -
period)  116.2  124.7  129.8  134.4  126.2  131.0  .. 
Money and credit (% change, period average)  
Broad money (M2)  21.4 19.7 14.9 17.9 14.3 12.7 13.6 
Total domestic credit  13.9 15.5 20.1 17.2 12.6 10.6 9.3 
    Credit to private sector  12.7 13.8 18.8 18.8 17.4 12.8 12.8 
Fiscal sector – Central Government (% of GDP)  
Total revenue and grants  23.1 22.3 23.8 24.6 25.8 25.7 25.7 
   Total revenue  22.8 22.0 23.5 24.4 25.7 25.6 25.6 
     Current revenue  21.5 20.8 21.8 22.1 23.1 22.9 23.0 
        Taxes  19.1 18.2 18.0 17.9 18.3 18.5 18.8 
   Grants  0.3 0.3 0.3 0.2 0.2 0.1 0.1 
Total expenditure and net lending  28.1 27.0 28.1 28.6 29.2 29.2 29.1 
   Total expenditure  28.8 26.4 28.2 26.8 27.1 29.2 29.1 
     Current expenditure  21.2 20.1 20.8 20.2 19.6 19.9 19.2 
   Net lending  7.6 6.3 7.4 6.6 7.4 7.4 7.3 
Current balance  -0.6 0.6 -0.1 1.8 2.2 0.0 0.0 
Overall budgetary balance  0.3 0.7 1.0 1.9 3.5 3.0 3.8 
Central Government debt  42.6 46.3 49.2 52.7 51.7 49.9 48.5 
Public debt  54.5 58.0 61.0 63.7 61.4 58.3 55.0 
Saving and investment (% of GDP)  
Gross national saving  31.2 31.7 27.5 29.5 28.7 29.0 28.5 
Gross domestic investment  26.7 26.8 27.7 26.6 26.6 26.5 26.3 
External sector (% of GDP, unless otherwise indicated)  
Current account balance  4.5 5.0 -1.1 0.3 -0.7 2.4 5.0 
Net merchandise trade  5.1 6.5 3.8 5.4 4.8 6.7 8.2 
   Exports  77.1 80.7 83.8 86.0 96.1 99.4 100.9  
   Imports  72.0 74.2 80.0 80.6 91.3 92.6 92.7 
Services balance  -1.8 -1.9 -2.5 -2.1 -1.8 -1.5 -0.9 
   Exports  6.3 5.9 5.8 6.1 5.8 6.0 6.4 
   Imports  8.1 7.8 8.3 8.2 7.6 7.5 7.2 
Capital account  0.0 0.0 0.0 0.0 0.0 0.0 0.0 WT/TPR/S/ 410 • Viet Nam  
 
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    2013  2014  2015  2016  2017  2018  2019  
Financial account  0.5 1.5 -3.6 -1.1 -3.3 -1.0 1.5 
   Direct investment, net  -4.1 -4.3 -5.5 -5.7 -6.1 -6.1 -6.0 
Balance -of-payments  0.3 4.5 -3.1 4.1 5.6 2.5 8.9 
Goods exports (% change in USD)  15.3 13.8 7.9 9.0 21.8 13.3 8.4 
Goods imports (% change in USD)  16.5 12.0 12.0 7.0 23.4 11.2 6.8 
Service exports (% change in USD)  11.3 2.4 2.6 11.1 4.6 13.2 12.5 
Service imports (% change in USD)  25.1 4.9 10.4 4.6 2.0 8.0 2.8 
Foreign exchange reserve (USD 
billion)  25.9 34.2 28.3 36.5 49.1 55.5 78.3 
   in months of prospective goods 
and services imports  2.1 2.5 1.9 2.2 2.5 2.5 .. 
Total external debt (USD billion)  63.5 71.0 80.9 91.4 109.2  112.1  122.8  
  % of GDP  37.1 38.1 41.8 44.5 48.8 45.7 46.9 
  Debt service ratio (% of exports of 
goods and services)  4.3 4.1 4.0 3.9 6.1 7.0 5.9 
.. Not available.  
Source:  General Statistics Office of Viet  Nam; Ministry of Finance; IMF; ADB; and data provided by the 
authorities.  
1.2.2   Fiscal policy  
1.10.   Viet Nam's growth performance was underpinned by significant infrastructure development. 
Over the past decade, government capital spending averaged almost 8% of GDP annually. In 
addition, state -owned enterprises (SOEs), inclu ding large infrastructure providers (e.g. Viet  Nam 
Electricity), invested an equivalent of about 5% of GDP annually. This high level of investment 
resulted in a rapid expansion of infrastructure stocks and supported basic infrastructure access for 
Viet Nam's fast -growing industrial and manufacturing base.  
1.11.   A strong economy and improved revenue administration had a positive effect on revenues. 
Total government revenue almost doubled during the review period. Tax revenue was equivalent to 
18.8% of GDP, and acc ounted for 70.4% of total government revenue in 2019. Trade -related taxes 
are not a major contributor to the Government's income (Chart 1.3). The share of tax revenue 
sourced directly  from trade, such as import tariffs and export duties6, in total tax revenue decreased 
during the review period, from 11% in 2013 to 9% in 2019. The authorities consider that the tax 
revenue sourced from trade would decline further in coming years, as Viet  Nam fully implements the 
regional trade agreements to  which it is a signatory, such as the ASEAN Trade in Goods Agreement 
and the Comprehensive and Progressive Agreement for Trans -Pacific Partnership (Section 2.3.2).  
Chart 1.3 Tax revenue by source, 2013 -19 
(VND  trillion)  
 
Source:  Information provided by the authorities.  
 
6 No data are av ailable on internal taxes (i.e. VAT, excise, and environmental protection tax) collected 
at the border on imported goods.  
02004006008001,0001,200
2013 2014 2015 2016 2017 2018 2019Natural resource tax
Environmental protection tax
Excise tax
Import tariff and export duties
VAT
Corporate income tax
Personal income taxChart 1.[VNM]   Tax revenue, 2013 -19
VND trillion
Source: ---------- .WT/TPR/S/ 410 • Viet Nam  
 
- 18 - 
 
  1.12.   Since January 2016, Viet  Nam has implemented fiscal consolidation, strictly limiting the 
issuance of government guarantees and stabilizing the state budget deficit. Public debt as a share 
of GDP declined to 55.0% in 2019, down from 63.7% at its peak in 2016 (Table 1.2); it was still, 
however, slightly higher than the 54.5% of GDP registered in 2013. Although social and 
infrastructure spending needs, such as on health, pensions, and public inve stment, are still large, 
the authorities plan to continue their fiscal consolidation7; they are confident in their ability to 
increase revenue further, with measures to strengthen tax policy and administration, and to broaden 
revenue bases.  
1.13.   The countercy clical fiscal policy implemented in recent years enabled Viet  Nam to lower 
government and public debts in relation to GDP, creating some fiscal space to deal with short - or 
long-term structural challenges, such as the ones that have arisen from the COVID -19 pandemic, 
SOEs' and banking sector contingent liabilities, and climate change. The authorities maintain a strong 
revenue mobilization (26% of GDP at the state budget level in 2019, and 21% in 2020). It is 
expected that Viet  Nam will lower the statutory p ublic and publicly guaranteed debt ceiling from 
65% of GDP currently to 47.5% in 2025.  
1.2.3   Monetary policy  
1.14.   The policy statement of the State Bank of Viet  Nam (SBV, the central bank) indicates that it 
manages monetary policy in a proactive and flexible manner i n close association with fiscal policy to 
control inflation, stabilize the macro -economy, support economic growth, and ensure the liquidity of 
credit institutions.8 The SBV operates its monetary policy mainly through managing the credit growth 
target.9  
1.15.   Before 2012, excessive credit growth and low loan quality, including lending to SOEs and a 
property boom fed by credit, left Viet Nam with the twin legacies of a high bank credit -to-GDP ratio 
and elevated non -performing loans (NPLs). During the review peri od, Viet  Nam modestly tightened 
its monetary and credit policies , and implemented prudential measures10 to contain real estate and 
consumer lending. In recent years, the authorities gradually brought down the credit growth, from 
a peak of 18.8% in 2015 to around 13% in 2019.11 At the same time, the authorities resolved large 
quantities of NPLs (Section 4.4.4).12 Moreover, they constrained real estate lending by imposing 
higher risk weights and limiting short -term funding for long -term projects. The SBV also  sought to 
limit consumer lending by introducing a  cap on the share of cash loans and prohibiting lending to 
high-risk borrowers. The authorities note that they plan to lower credit growth further, to close to 
nominal GDP growth.  
 
7 For example, infrastructure investment would be raised from private funding via public -private 
partnership (PPP) agreements. Also, t he Government considers that growing reliance on non -debt-creating 
deficit financing, lengthening of debt maturities, and low interest rates should help contain debt service costs.  
8 SBV, Monetary Policy Objectives . Viewed at: 
https://www.sbv.gov.vn/webcenter/portal/en/home/sbv/mpolicy/mpobjectives?_afrLoop=5301275690739297
#%40%3F_afrLoop%3D5301275690739297%26centerWidth%3D80%2525%26leftWidth%3D20%2525%26rig
htWidth%3D0%2525%26showFooter%3Dfalse%26showHeader%3Dfalse%2 6_adf.ctrl -
state%3Dz62666p6j_54 . 
9 As assessed by the IMF, the interbank rates are too volatile to be an operational target of monetary 
policy. The IMF suggested to the SBV to, first, stabilize the interbank market rate within a narrow band by 
paying inter est on reserves, and then, phase out credit growth targets and start using an interbank rate as a 
main operational target for monetary policy. The authorities maintain a cautious, gradual approach to 
modernizing their monetary framework; they also consider  that the modernization will take between six and 
eight years.  
10 The SBV is still involved in the commercial banking segment through the control or ownership of some 
commercial banks. The Basel II standard has been applied to the SBV since January 2020. A ccording to the 
authorities, the SBV intends to replace administrative allocation of credit with market -based mechanisms over 
the medium term.  
11 The authorities are of a view that Viet  Nam prudently implemented its monetary and credit policies 
during the r eview period, and deployed prudential measures to ensure sufficient credit to the economy while 
improving credit quality.  
12 The issue of high corporate debt (140% of GDP) and private external debt (25% of GDP) remain to be 
addressed.  WT/TPR/S/ 410 • Viet Nam  
 
- 19 - 
 
  1.16.   As part of the monetary p olicy, the SBV sets inflation13 at 4% as its domestic nominal 
anchor14; however, its monetary policy is not based on inflation targeting. In addition, the SBV 
announces daily the target exchange rate of the Vietnamese Dong (VND) vis-à-vis the US dollar 
(USD) as an external nominal anchor. To keep the exchange rates within the predetermined band 
around the target, the SBV intervenes in the market through its reserve accumulation/decumulation, 
in addition to adjusting interest rates in the interbank market.  
1.2.4   Exchange rates and balance of payments  
1.17.   According to the IMF, Viet  Nam's exchange rate is de facto  stabilized (or de jure  managed 
floating). The SBV manages the VND within a 3% band around the target value; this floating band 
was widened from the previous 1%  band in August 2015, while the central parity was devalued by 
1%. In January 2016, the SBV announced the central VND/USD rate would be adjusted daily based 
on: (i)  the previous day's weighted average VND/USD exchange rate; (ii)  a weighted average of 
movem ents in VND exchange rates vis-à-vis seven other trading partners' currencies; and 
(iii) domestic macroeconomic conditions.15 Viet Nam does not maintain any foreign exchange (FX) 
restrictions on payments and transfers for current international transactions , except for those on the 
grounds of security reasons.  
1.18.   Viet Nam's nominal FX rates experienced a depreciation trend during the review period 
(Table  1.2), despite interventions by the SBV. Without the SBV's interventions, Viet  Nam would have 
experienced sig nificantly greater FX volatility. As estimated by the IMF, Viet  Nam's exchange rate 
was undervalued by 8.4% in 2018 (in nominal terms).16 The SBV actively responds to depreciations 
by intervening in the market through reserve decumulation. In the IMF's vie w, the effects of the 
SBV's interventions on the real FX rate were small and short -lived, probably due to a high pass -
through in Viet  Nam.17  
1.19.   In fact, despite the nominal depreciation, VND was on an appreciation trend in real terms. 
The real effective exchange rate (REER) appreciated from low levels in 2005 by an average of 4% 
each year until 2016.18 In 2017, the REER depreciated by 4.4%, as VND remained pegged to a 
weakening USD. The trend reversed in 2018, and the REER appreciated by 3.5% th rough the year 
(Table 1.2), reflecting depreciation of the Chinese renminbi (CNY).  
1.20.   To a large extent, the real effective appreciation of VND reflects Viet Nam's strong economic 
fundamentals and the results of its export -oriented manufacturing sector, where  many foreign -
invested firms actively participate in GVCs (Section 1.3.1.3). The appreciation of the REERs in 
Viet Nam goes hand in hand with the productivity growth of the  manufacturing sector.19 The 
difference between the real and nominal FX rate is acco unted for by the inflation deferential between 
Viet Nam and its trading partners, which averaged at an annual rate of around 8% for the last two 
decades.  
1.21.   After a short period (2015 -17) of deterioration in the current account balance, including a 
deficit in  2015 and 2017, the current account regained its surplus in 2018, and reached 
USD 13 billion in 2019. During the review period, Viet  Nam maintained a surplus in trade in goods 
and services, as well as in remittances. The continuous increase in p rivate exte rnal disbursements 
 
13 The policy aim of in flation is set annually. The SBV proposes a new aim to the Government, which 
then submits it to the National Assembly for approval.  
14 According to the IMF, continuing administered price liberalization is expected to add about 
2 percentage points to the Con sumer Price Index (CPI).  
15 Before 2016, the SBV did not announce the central rate; instead, it announced the average interbank 
exchange rate on the interbank foreign currency market.  
16 The authorities responded that the valuation of a currency is sensitive  to the estimate methods; the 
evaluation result may differ when choosing a different method.  
17 IMF (2019), Vietnam: 2019 Article IV Consultation –Press Release; Staff Report; and Statement by the 
Executive Director for Vietnam , IMF Country Report No. 19/235 .  
18 The real FX rate against USD appreciated by more than 60% in the last two decades.  
19 An IMF study shows the Balassa -Samuelson effect in the case of Viet  Nam: a cointegration exists 
between the real FX rate and the relative productivity growth for the tradable goods sector. The study also 
shows more than half of real FX fluctuations can be explained by internal shocks, including a TFP shock to the 
manufacturing sector, via the Balassa -Samuelson effect. The other half is mostly explained by the shock to the 
real FX rate. In the case of the nominal FX rate, while the internal shock is still a main driver, its contribution is 
much smaller than that of the real FX rate, and the FX intervention and monetary policy shock significantly 
influence its fluctuation s. WT/TPR/S/ 410 • Viet Nam  
 
- 20 - 
 
  (i.e. dividends and withdrawals from foreign investment), which stood USD  15 billion in 2019, may 
be an indication of Viet  Nam's engagement in GVCs through increasing foreign investment 
(Section  1.3.2). Foreign direct investment (FDI) an d portfolio investment doubled during the review 
period, reaching USD 15 billion and USD 3 billion, respectively (Table  1.3).  
Table 1.3 Balance of payments, 2013 -19 
(USD million)  
  2013  2014  2015  2016  2017  2018  2019  
Current account  7,745  9,359  -2,041  625 -1,649  5,899  13,101  
Goods and services balance  5,604  8,596  2,609  6,784  6,816  12,860  19,143  
  Goods balance  8,713  12,126  7,374  11,042  10,846  16,540  21,494  
    Exports  132,032  150,217  162,017  176,581  215,119  243,697  264,189  
    Imports  123,319  138,091  154,643  165,539  204,273  227,157  242,695  
  Services balance  -3,109  -3,530  -4,765  -4,258  -4,030  -3,680  -2,351  
    Credit  10,711  10,970  11,250  12,500  13,070  14,791  16,637  
    Debit  13,820  14,500  16,015  16,758  17,100  18,470  18,988  
Primary income, net  -7,336  -8,844  -12,151  -14,144  -16,993  -15,818  -15,283  
    Credit  281 323 399 650 745 1,615  2,237  
    Debit  7,617  9,167  12,550  14,794  17,738  17,433  17,520  
Secondary income, net  9,477  9,607  7,501  7,985  8,528  8,857  9,241  
    Credit  10,027  10,307  8,586  9,125  10,031  10,869  11,609  
    Debit  550 700 1,085  1,140  1,503  2,012  2,368  
Capital account  0 0 0 0 0 0 0 
Balance on current and capital account  7,745  9,359  -2,041  625 -1,649  5,899  13,101  
Financial account  837 -5,571  -967 -10,727  -20,028  -8,466  -19,374  
  Direct investment  -6,944  -8,050  -10,700  -11,600  -13,620  -14,902  -15,635  
    Assets  1,956  1,150  1,100  1,000  480 598 485 
    Liabilities  8,900  9,200  11,800  12,600  14,100  15,500  16,120  
  Portfolio investment  -1,466  -93 65 -228 -2,069  -3,021  -2,997  
    Assets  -80 0 0 -180 0 0 -2 
    Liabilities  1,386  93 -65 48 2,069  3,021  2,995  
  Other investment  8,690  2,572  9,668  1,101  -4,339  9,457  -742 
    Assets  12,874  7,559  14,412  5,149  9,603  11,143  7,790  
      Deposit -taking corporations  2,913  20 4,630  -2,056  4,068  4,449  4,346  
      General government  30 -88 53 -81 47 339 -292 
      Other sectors  9,931  7,627  9,729  7,286  5,488  6,355  3,736  
    Liabilities  4,184  4,987  4,744  4,048  13,942  1,686  8,532  
      Deposit -taking corporations  610 -1,442  -666 1,461  3,084  -268 2,743  
      General government  3,453  4,239  3,116  2,663  1,976  1,440  586 
      Other sectors  121 2,190  2,294  -76 8,882  514 5,203  
  Reserve assets  557 8,375  -6,032  8,390  12,545  6,035  23,258  
Net errors and omissions  -6,908  -6,555  -4,958  -2,962  -5,834  -8,330  -9,217  
Source:  IMF, Balance of Payments and International Investment Statistics . Viewed at: 
http://data.imf.org/regular.aspx?key=62805740 . 
1.22.   During the review period, Viet  Nam's international reserves grew three -fold in USD terms, 
and they reached USD 78 billion in 2019 (30% of GDP), corre sponding to 3.6 months of imports of 
goods and services (Table 1.2).  
1.2.5   Impact of the COVID -19 pandemic  
1.23.   Given its deep integration with the global economy, Viet  Nam suffered from the COVID -19 
pandemic due to weakened demand and reduced trade (Section 1.3.1).  Since the onset of the 
pandemic, domestic demand, evident by the purchasing managers' index, has  dropped more than 
25 percentage points. Yet, the impact of the outbreak was not as severe in Viet  Nam as in other 
countries due to proactive measures at the n ational and local levels.  
1.24.   In addition to adopting swift reactive measures to contain the spread of the virus and to 
counter the negative effects of the pandemic, Viet  Nam introduced a series of fiscal measures and 
incentives to replace lost income and boo st growth (Box 1.1). They include a fiscal support package 
equivalent to 3.6% of GDP, fee cuts, tax payment deferrals and deductions, and financial incentives 
for employers and employees. Consequently, due to the pandemic's impacts, the general 
government deficit and the public -debt-to-GDP ratio in 2020 are expected to increase to around 5% 
and 57%, respectively.  WT/TPR/S/ 410 • Viet Nam  
 
- 21 - 
 
  Box 1.1 Fiscal measures introduced to support the economy and counter the effects of 
the COVID -19 pan demic  
Fiscal measures  
 
The Government introduced a fiscal support package (Decree No. 41/2020/ND -CP of 8 April 2020 on Extending 
the Deadlines of Tax and Land Rental Fee Payments for Companies, Individuals, and Business Households 
(Taxpayers) Affected by C OVID -19). The main measures include:  
• deferring the payment of VAT and corporate income tax obligations and land rental fees by five months 
and deferring personal income tax payment to year -end 2020 (estimated amount of deferred 
payments is VND 67 trillion) ; 
• cutting by 30% the corporate income tax rate for small and micro firms;  
• raising the personal income tax deduction;  
• lowering land rental fees by 15%;  
• deducting 30% of the environmental protection tax on jet -fuel from August to December 2020; and  
• cutting or exempting various fees and charges.  
 
Decree No. 41/2020/ND -CP applies to companies, individuals, and business households, particularly small and 
medium -sized enterprises (SMEs), to alleviate the cash flow shortages caused by the economic effects  of the 
COVID -19 pandemic.  
 
Beneficiaries are SMEs and eligible taxpayers that have production activities in: agriculture, forestry, and 
aquaculture; food production and processing; key mechanical products; textiles and clothing; leather and 
related produc ts; wood and products of wood and cork; furniture; products of straw and plaiting materials; 
paper and paper products; rubber and plastics products; non -metallic mineral products; basic metals; 
machinery; treatment and coating of metals; electronic product s, and computer and optical products; 
automobiles and other motor vehicles; construction; and manufacturing of products belonging to the list of 
prioritized supporting industries.  
 
Taxpayers that have business activities in transportation and storage; acco mmodation and catering services; 
education and training; health and social support services; real estate activities; labour services and 
employment activities; travel agency, tour operator, and support services; art, entertainment, and creation; 
libraries,  archives, museum, and other cultural activities; sports and recreation; and cinema may also benefit, 
as may credit institutions and branches of foreign banks that provide support to their customers in accordance 
with the SBV during the COVID -19 pandemic.  
 
The National Assembly passed several resolutions to address the impacts of the pandemic.  
 
• Resolution No. 954/2020/UBTVQH14 of 2 June 2020 on Adjusting to Increase the Family Deduction of 
Taxpayers and Dependents to Reduce Tax Obligations for Individuals. The forgone revenue from 
personal income tax is estimated to be about VND 10.8 trillion per year.  
• Resolution No. 107/2020/QH14 of 10 June 2020 on Continuing to Exempt Agricultural Land Use Tax 
until the End of 2025. The forgone revenue from exempting the a gricultural land use tax is estimated 
to be about VND 7.5 trillion per year.  
• Resolution No. 116/2020/QH14 of 19 June 2020, providing a 30% reduction of corporate income tax 
payable by 2020 for enterprises, cooperatives, non -business units, and other organi zations.  
Other measures to promote growth include:  
• tax exemptions for medical equipment;  
• one-year exemption of business registration tax for newly established household businesses;  
• exemption of business registration tax for SMEs during the first three years of operation;  
• streamlined tax and custom audit and inspection at firms; and  
• deferral for up to 12 months of firms' and workers' contributions to the pension fund and to the 
survivorship fund without interest penalty.  
Support measures  
Resolution No. 42/NQ -CP of 9 April 2020 on Measures to Help People Meet the Difficulties Caused by the 
COVID-19 Pandemic introduced a number of support measures, including a three -month (April to June 2020) 
cash transfer package worth VND  36 trillion (about 0.5% of GDP) for affected workers and households.  
Source:  IMF, Policy Responses to COVID -19. Viewed at:  https://www.imf.org/en/Topics/imf -and-
covid19/Policy -Responses -to-COVID -19. Vietnam Briefing, COVID -19: How to Implement Decree 41 
on Deferring Tax Payments . Viewed  at: 
 https://www.vietnam -briefing.com/news/covid -19-how-to-implement -decree -41-deferring -tax-
payments.html/#:~:text=On%20April%208%2C%20the%20government,)%20affected%20by%20C
OVID%2D19 ; Government of Viet  Nam. Viewed at:  
 https://thuvienphapluat.vn/van -ban/lao -dong-tien-luong/Resolution -42-NQ-CP-2020-assistance -for-
people -affected -by-Covid -19-pandemic -439660.aspx ; and information provided by the authorit ies. WT/TPR/S/ 410 • Viet Nam  
 
- 22 - 
 
  1.25.   On the monetary front, the SBV issued guidelines to commercial banks to reschedule loans, 
reduce/exempt interest, and provide loan forbearance. According to the IMF, as at mid -September 
2020, banks had registered a credit package totalling VND 300 trillion  (about 3.8% of GDP) at lower 
interest rates, and supported nearly 1.1 million customers with outstanding loans of about 
VND 2,300 trillion, by rescheduling repayments, exempting or reducing interest on existing debts, 
and extending new loans. The SBV aske d credit institutions to channel credit to five priority economic 
sectors and to accelerate consumer loans. The SBV also introduced measures to help credit 
institutions reduce their cost of funding and to allow them to reduce interest rates and fees. 
Furth ermore , firms affected by COVID -19 are eligible for interest -free concessional loans from the 
Vietnam Social Policy Bank (VSPB) for paying salaries to workers who temporarily stopped working. 
The total loan value is planned at VND 16.2 trillion (around 0.2% of GDP). In addition, t he SBV 
committed to inject liquidity, including through refinancing windows, into the VSPB (up to 
VND 16 trillion at 0% interest) and other credit institutions to implement the Government's 
programmes.20 
1.26.   There are tentative signs of a domestic recovery, with retail sales and industrial production 
rebounding from the low points seen during the lockdown, but sustained and robust growth will also 
require an economic recovery among trading partners. As the macroeconomic and fiscal framework 
remains resilient, Viet  Nam reported GDP growth of 2.1% in the first nine months of 2020, and 
growth is expected to be 2.5%  in 2020, if domestic epidemics are successfully controlled.  
1.3  Developments in Trade and Investment  
1.3.1   Trends and patterns in merchandise and services trade  
1.3.1.1   Merchandise trade  
1.27.   During the review period, Viet  Nam's merchandise trade grew at a double -digit rate an nually, 
in real terms (Table 1.2); both merchandise imports and exports exceeded USD 200 billion in 2019, 
more than double the 2012 figures. Among the world's top 50 merchandise traders, Viet  Nam 
recorded a significant advancement in world ranking, improvi ng its position from 39th in 2009 to 23rd 
in 2019.21 
1.28.   Machinery and electrical equipment (i.e. electrical machinery and electronic equipment) 
continued their dominance in Vietnamese merchandise exports: their combined share significantly 
increased from 25% in 2012 to 42% in 2019. In particular, the share of smartphones and accessories 
in total exports increased by almost 100%. The share of merchandise exports of apparel products 
(including footwear) remained stable, at 22% throughout the review period ( Char 1.4). Mainly due 
to low oil prices, the share of mineral product exports, in terms of value, decreased from 11% in 
2012 to 2% in 2019; also reflecting low commodity prices, combined exports of agricultural and 
aquatic products decreased from 15% in 2012 to  about 8% in 2019 ( Table A1.1 ). 
1.29.   Viet Nam's merchandise trade exhibits strong intra -industry trade (IIT) patterns. Electrical 
machinery and electronic equipment continue to represent the largest share of Vietnamese 
merchandise imports, accounting for 40% of  the total in 2019. During the review period, about 10% 
of imports were attributed to textiles and apparel, and footwear (Table A1.2). These two segments 
actively participate in GVCs (Section  1.3.1.3), with significant foreign investment involvement 
(Secti on 1.3.2).  
 
20 IMF, Policy Responses to COVID -19. Viewed at: https://www.imf.org/en/Topics/imf -and-
covid19/Policy -Responses -to-COVID -19.  
21 Member states of the European Union are counted individually. For details, see WTO (2020), World 
Trade Statistic Review . Viewed at: https://www.wto.org/english/res_e/statis_e/wts2020_e/wts20_toc_e.htm .  WT/TPR/S/ 410 • Viet Nam  
 
- 23 - 
 
  Chart 1.4 Product composition of merchandise trade by main HS sections, 2012 and 
2019  
 
Source:  WTO Secretariat calculations, based on UN Comtrade database.  
1.30.   The growth of IIT in agricultural product s, clothing and apparel, and consumer electronics 
reflects the demand for trade -in-varieties caused by rapid urbanization in Viet  Nam over the last 
three decades. According to the World Bank, the share of high -spending households increased from 
less than 5 0% in 2010 to 70% in 2016; notably, the share of middle -class and economically secure 
consumers almost doubled within five years (Chart 1.5).22 The increasingly rich and urban 
consumers demand more differentiated products through trade. For example, while final consumer 
goods accounted for some 80% of exported apparel products in 2019, and just 5% for imports, in 
the case of smartphones, these figures were 44% and 7%, respectively.  
 
22 World Bank (2020), Vietnam Development Report 2019: Connecting Vietnam for Growth and Shared 
Prosperity . Viewed at: http://documents1.worldbank.org/curated/en/590451578409008253/pdf/Vietnam -
Development -Report -2019-Connecting -Vietnam-for-Growth -and-Shared -Prosperity.pdf . 
Chart 1.[VNMPRD] Product composition of merchandise trade by main HS sections, 2012 and 2019
2012 2019
Exports
Source:  WTO calculations, based on UNSD comtrade database.Other
14.3%
Plastics & rubber
7.6%Chemicals 
9.1%Imports
Precision instruments
1.9%Machinery &
electrical equipment
31.3%Total:  USD 114.5 billion Total:  USD 264.6 billion
Total:  USD 113.8 billion Total: USD 253.4 billionPlastics & rubber
5.1%
Chemicals
6.7%Mineral products
2.1%Misc. manufactured
articles  4.5%
Textiles & textile
articles  15.8%
Mineral products
6.8%Base metals
12.2%
Textiles & textile 
articles  8.2%Vegetable products,
fruit & nuts  5.0% Vegetable
products,
fruit & nuts
10.4%Misc. manufactured 
articles  4.0%
Mineral products
10.6%Plastics & rubber
3.4%
Textiles & textile 
articles  9.6%Plastics & rubber
7.3%Machinery & 
electrical equipment
39.9%Telephone sets 
21.3%Mineral products
10.7%
Footwear, 
headgear
6.8%
Other
11.4%Precision instruments
3.6%Textiles & textile 
articles  14.9%Telephone sets
11.5%
Base metals
3.7%
Other
11.7%Other 
14.2%
Footwear, headgear
7.4%Base metals
4.3%Machinery & other 
electrical equipment 
13.2%
Base metals
9.9%Live animals & 
products thereof 
4.5%Machinery & other 
electrical equipment 
20.4%Live animals & 
products thereof 
2.5%
Vegetable products,
fruit & nuts
3.1%Vegetable prod.,
fruit & nuts
3.4%Transport equipment
2.9%Transport equipment
2.8%WT/TPR/S/ 410 • Viet Nam  
 
- 24 - 
 
  Chart 1.5 Population by econ omic class, 2010 -16 
 
Source:  World Bank (2020), Vietnam Development Report 2019: Connecting Vietnam for Growth and Shared 
Prosperity . Viewed at: 
http://documents1.worldbank.org/curated/en/590451578409008253/pdf/Vietnam -Development -
Report -2019-Connecting -Vietnam -for-Growth -and-Shared -Prosperity.pdf .  
1.31.   China and the United States remain Viet  Nam's largest trade and investment partners 
(Chart  1.6). In 2019, the largest share of merchandise imports, almost 30%, was sourced from 
China (up from 26% in 2012), while 23% of merchandise exports were destined for the 
United  States, Viet  Nam's largest market, 6 percentage points higher than in 2012.  
1.32.   Rising trade  tensions in recent years also affected Viet  Nam. However, as assessed by the 
IMF, they had a small positive overall impact due to trade diversion effects. A potentially larger and 
more durable impact could come from shifts in investment, which remain to b e seen. In recent years, 
international firms moved facilities to Viet  Nam in response to rising costs in China and the desire to 
diversify production locations (Section 1.3.2).  
1.33.   The direction of trade is a reflection of Viet  Nam's participation in GVCs. In  addition to China, 
other Asian economies in the region supplied almost 50% of total merchandise imports in 2019. 
Notably, imports from Japan, the Republic of Korea, and Chinese Taipei maintained a stable share 
at about 30% during the review period, while the share of supplies from the Republic of Korea 
steadily increased (Table A1.4). Regarding exports, the European Union (EU -28) remains the second 
largest market for Vietnamese merchandise goods, accounting for 16% in 2019. Exports to China 
gradually incre ased during the review period, also reaching around 16% in 2019 (Table  A1.3).  
0102030405060708090100
2010 2012 2014 2016Middle class
Economically secure
Economically vulnerable
Moderately poor
Extremely poorChart 1.[VNM] Population by economic class, 2010 -16
Source: World Bank (2020), Vietnam Development Report 2019: Connecting Vietnam for Growth and Shared Prosperity . 
Viewed at: http://documents1.worldbank.org/curated/en/590451578409008253/pdf/Vietnam -Development -Report -2019 -
Connecting -Vietnam -for-Growth -and-Shared -Prosperity.pdf . % of populationWT/TPR/S/ 410 • Viet Nam  
 
- 25 - 
 
  Chart 1.6 Direction of merchandise trade, 2012 and 2019  
 
Source:  WTO Secretariat calculations, based on UN Comtrade database.  
1.3.1.2   Participation in global value chains  
1.34.   Through its involvement in GVCs, Viet  Nam has emerged as an important manufacturing 
centre since its accession to the WTO in 2007, in particular, for textiles and apparel, and for 
information and communication technolo gy (ICT) equipment.23 According to the WTO -OECD Trade -
in-Value -Added (TiVA) database, domestic value -added as a share in Viet  Nam's gross exports in 
2016 was 58%, while the share for apparel exports was 55%, and 39% for ICT exports.24  
1.35.   In 2019, Viet  Nam im ported USD 187.8 billion of intermediate goods (74% of gross imports), 
and it exported USD 102.4 billion of intermediate goods (39% of gross exports), and 
 
23 Hollweg, C. H.; Smith, T.; and Taglioni, D. (2017), Vietnam at a Crossroads: Engaging in the Next 
Generation of Global Value Chains,  Washington, DC: World Bank. Viewed at: 
https://openknowledge.worldbank.org/handle/10986/26215 .  
24 The methodology for constructing the TiVA database is an input -output (I -O) table approach, which 
assumes technology is static in between compilation of two I -O table s; therefore, it is reasonable to consider 
that the share of domestic value -added does not change much compared with the 2016 figure.  
Chart 1.[VNMREG] Direction of merchandise trade, 2012 and 2019
2012 2019
Exports
Source:  WTO calculations, based on UNSD comtrade database.Other Asia
7.0%
Other Asia
5.0%
Japan
10.2%Imports
Chinese Taipei
7.5%
Korea, Rep. of
13.7%Total:  USD 114.5 billion Total:  USD 264.6 billion
Total:  USD 113.8 billion Total: USD 253.4 billionOther
9.3%
Other  
7.0%ASEAN
9.4%
China
15.7%Other ASEAN 
6.3%
ASEAN
12.7%ASEAN
18.3%
Other ASEAN
5.2%Middle East
2.5%EU-28
17.7%
Other Asia  
6.2%
Other ASEAN
4.3%Japan 
7.7%EU-28
7.7%ASEAN
15.2%
China
29.8%Korea, Rep. of
18.5%EU-28
5.9%United States
17.2%
Thailand 2.5%
Hong Kong, 
China 3.2%
Other 
5.8%
China
25.5%Other Asia
4.4%Other 
9.5%
Other ASEAN
7.5%Thailand 1.9%EU-28
15.7%
United States
23.2%
China
11.2%Middle East
2.8%
Singapore
5.9%Korea, Rep. of
4.9%Malaysia 3.9%
Japan
11.4%Cambodia 2.6%
Japan
7.7%Korea, Rep. of
7.5%Hong Kong, 
China 2.7%
Thailand 5.1%Thailand 4.6%
Malaysia 3.0%Malaysia 2.9%Chinese Taipei
6.0%United States
4.3%United States
5.7%
Middle East  2.1%Middle East 2.3%WT/TPR/S/ 410 • Viet Nam  
 
- 26 - 
 
  USD 157.7  billion of final goods for consumers or for capital formation (60%) (Chart 1.7).25 Among 
imports of intermediates, more than 30% were for electric and electronic products (HS Chapter 85).  
Chart 1.7 Merchandise trade, by end -use, 2019  
 
Source:  WTO Secretariat calculations, based on UN Comtrade datab ase. 
1.36.   Viet Nam's participation in the manufacturing of ICT equipment, in particular of smartphones 
and consumer electronics, gradually increased. About 85% of electric/electronic imports in 2019 
were intermediates, and 9% were capital goods. In terms of exp orts, 47% were intermediates, and 
about 53% were final goods for consumers or as capital inputs (Chart 1.8).  
Chart 1.8 Share of electric/electronic trade, by end -use, 2019  
 
Source:  WTO Secretariat calculations, based on UN Comtrade database.  
1.37.    China is the main supplier of capital goods (10%) for the electronics sector in Viet  Nam, while 
32% of intermediate imports were s ourced from the Republic of Korea, 26% from China, 8% from 
Japan, and 7% from the United States. Viet  Nam exported electronic intermediates for further 
processing elsewhere: 17% were destined for China, 7% for the Republic of Korea, and 6% for the 
 
25 The nomenclature of Broad Economic Categories, Revision 5 (BEC5) is used to categorize all the 
merchandise trade by the ir end use.  
Chart 1.[VNM]   Trade by Broad Economic Categories (BEC), 2019
Other n.e.c.
1.7%Imports Exports
Capital goods
16.1%Intermediate goods
38.7%
Consumer goods
43.4%
Source:  WTO calculations, based on UNSD Comtrade dabase.Total:  USD 264.6 billionTotal:  USD 253.4 billionIntermediate goods
74.1%
Consumer goods
11.6%Other n.e.c.
1.4%Capital goods
12.9%
Chart 1.[VNM] Share of electric/electronic trade, by end -use, 2019
Source :   WTO calculations, based on UNSD Comtrade databaseConsumer goods
43.7%
Capital goods
9.1%
Intermediate goods
47.3%Exports Imports
Capital goods
9.2%Intermediate goods
84.2%
Consumer goods
6.7%WT/TPR/S/ 410 • Viet Nam  
 
- 27 - 
 
  United S tates. Final goods for consumers or industries were shipped to the United States, the United 
Arab Emirates, Austr ia, the Republic of Korea, and China (Chart 1.9).  
Chart 1.9 Major trading partners of electroni c products, by end -use, 2019  
 
Source:  WTO Secretariat calculations, based on UN Comtrade database.  
1.38.   Regarding manufacturing of apparel, 53% of intermediate imports for the garment sector 
were sourced from China, 13% from the Republic of Korea, and 10% from  the United States. Once 
processed, Vietnamese garment exports were shipped to the United States (37%), the European 
Union members including Germany and Belgium  (15%), Japan (9%), and the Republic of Korea 
(7%) (Chart 1.10).  
 Chart 1.10 Major trading partners for garment apparel, by end -use, 2019  
 
Source:  WTO Secretariat calculations, based on UN Comtrade database.  
1.3.1.3   Impact of COVID -19 pandemic on global value chains  
1.39.   While total external trade shrank by 60% at t he onset of the pandemic, Viet  Nam's 
merchandise trade based on GVCs, in particular, in the consumer electronics manufactured and the 
garment apparel manufactured sectors appears not to be losing momentum, compared with the 
01020304050607080
Imports Exports Exports ImportsChart 1.[VNM]   Main trading partners of electroni c products (HS Chapter 85) , by end -use, 2019
Source:  WTO calculations, based on UNSD Comtrade database.Final goods Intermediate goods% of total
United States
United Arab Emirates
AustriaKorea, Rep. of
China
Japan
MalaysiaHong Kong, ChinaThailand
0102030405060708090
Imports Exports Exports ImportsChart 1.[VNM]   Main trading partners for apparels, by end -use, 2019
Source:  WTO calculations, based on UNSD Comtrade database.Consumer goods Intermediate good s% of total
United States
GermanyKorea, Rep. ofChina
Japan
BelgiumWT/TPR/S/ 410 • Viet Nam  
 
- 28 - 
 
  sectors' performance in 2019 (Ch art 1.11). With regard to other top categories of merchandise trade, 
imports of motor vehicles and their parts and components, as well as of oil, witnessed a significant 
drop, compared with 2019.  
Chart 1.11 Major merchandise trade of manufacturing sectors, 2019 -20 
 
Note:  The trade data for 2020 cover from January to September only. It is not full -year data.  
Source:  WTO Secretariat calculations, based on UN Comtrade  database; and data provided by the 
authorities.  
1.40.   In 2019, trade based on GVCs in the consumer electronics and the garment apparel sectors 
accounted for around 65% of total exports, and 51% of total imports. Although only nine -month 
data for 2020 are available, trade of consumer electronics maintained its trend, except for exports 
of precision equipment (HS Chapter 90). As for the garment sectors, exports of final goods recorded 
a slight decrease, compared with their performance in 2019.  
1.3.1.4   Trade in servi ces 
1.41.   Regarding trade in services, Viet  Nam is a net importer (Table 1.4).  
Table 1.4 Trade in services, 2013 -19 
(USD million)  
  2013  2014  2015  2016  2017  2018  2019  
Total credit  10,710  12,231  12,580  13,961  14,878  18,060  19,920  
 % of total credit  
Transport service  20.8 19.0 19.3 17.5 18.9 24.2 20.0 
Postal and telecommunication 
service  1.3 1.2 1.3 1.2 1.0 0.8 0.7 
Travel service  67.7 60.6 58.4 60.9 59.8 55.8 59.4 
Finance service  1.7 1.4 0.9 0.8 0.8 1.2 1.1 
Insurance service  0.6 0.5 0.4 0.4 0.4 0.3 0.3 
Government service  1.2 1.1 1.1 1.1 1.1 0.9 0.9 
Other service  6.7 16.2 18.5 18.1 18.2 16.7 15.6 
Total debit  13,538  15,519  16,703  17,800  18.684  20,348  21,111  
 % of total debit  
Transport service  54.2 49.9 48.2 45.3 39.6 36.8 37.9 
Postal and telecommunication 
service  0.6 0.5 0.8 0.7 0.7 0.7 0.9 
Travel service  15.1 17.1 21.5 25.3 27.0 29.0 29.1 
Finance service  1.3 1.2 1.3 0.8 1.2 0.9 0.9 
Insurance service  6.7 6.6 6.1 4.5 3.6 2.9 2.9 
Government service  1.4 1.3 1.2 1.1 1.1 1.0 1.0 
Other service  20.6 23.5 20.9 22.3 26.9 28.6 27.2 
Balance  -2,828  -3,288  -4,123  -3,839  -3,806  -2,288  -1,191  
Source:  WTO Secretariat calculations, based on data provided by the authorities.  
0102030405060708090100
Export Export Export Import Import Import
HS 84 HS 85 HS 90 HS 84 HS 85 HS 9002468101214161820
Export Export Export Import Import
HS 61 HS 62 HS 64 HS 52 HS 60Chart 1.[VNM]   Selected merchandise trade by HS Chapters, 2019 and 2020
USDbillionUSDbillion
2019
2020Consumer electronics Garment apparel
Source:    WTO Secretariat calculations, based on UNSD Comtrade database.HS 52 Cotton
HS 60 Knitted or crocheted fabrics
HS 61 Clothing, knitted or crocheted
HS 62 Clothing, not knitted or crocheted
HS 64 FootwearHS 84 Machinery and mechanical appliances
HS 85 Electrical machinery and equipment
HS 90 Optical, measuring, precision, medical, etc. equipmentWT/TPR/S/ 410 • Viet Nam  
 
- 29 - 
 
  1.42.   Travel services are the biggest FX earners, contributing more than two thirds of Vietnamese 
services exports during each year of the review period. Vietnamese nationals also increasingly spent 
on travel services abroad; 29% of services imports  were attributed to travel services in 2018, 
compared with 15% in 2013.  
1.43.   Transport services are the largest item of services imports; o n average, they accounted for 
45% of Vietnamese services imports during the review period. Transport services, especially freight 
transport, facilitate Viet  Nam's participation in GVCs.26 In a World Bank report, Viet  Nam recorded a 
significant increase (i.e. 76% in a five -year period) in transport of high -value goods such as mobile 
phones, electronic components, and high fashion exports.27 
1.3.2   Trends and patterns in FDI  
1.44.   Since its accession to the WTO in 2007, Viet  Nam has received large FDI inflows (Chart 1.12). 
During the review period, the inflow of FDI grew at an average annual rate of 13%, and the stock 
of inward FDI increased from USD 81.8 billion in 2013 to USD  161.1 million in 2019. FDI plays a key 
role in Viet  Nam's economic transformation, representing a large share of output (20% of GDP) and 
employing 5 million people in 2019; about half of gross exports were attributed to foreign 
investment.  
Chart 1.12 Foreign direct investment, 2000 -19 
 
Source:  UNCTAD, World Investment Report 2020 . Viewed at: https://unctad.org/webflyer/world -investment -
report -2020.  
1.45.   Most of the inward FDI was destined for the manufacturing sector, accounting for some 60% 
of total foreign capital stock. Foreign investment in the real estate and electricity sectors also 
accounted for large shares (12% and 9%, respectively), though far fe wer projects were financed 
with foreign capital (Table 1.5).  
Table 1.5 Inward foreign investment stock by sector, 2019  
(USD million)  
Sector  No. of projects  Total capital  
Processing and manufacturing sector (MAN)  6,943  89,321.96  
Real estate business  462 17,624.35  
Production and supply of electricity, gas, hot water, steam and air -
conditioning (ELE)  61 15,439.99  
Wholesale and retail trade, repair of motor vehicles and motorcycles 
(TRADE ) 3,691  4,304.05  
 
26 No detailed data are available for the transport services imports, broken down by end -use. 
27 World Bank (2020), Vietnam Development Report 2019: Connecting Vietnam for Growth and Shared 
Prosperity . Viewed at: http://documents1.worldbank.org/curated/en/590451578409008253/pdf/Vietnam -
Development -Report -2019-Connecting -Vietnam -for-Growth -and-Shared -Prosperity.pdf .   
02,0004,0006,0008,00010,00012,00014,00016,00018,000
020,00040,00060,00080,000100,000120,000140,000160,000180,000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019Left-hand scale:  FDI inward stock
Right-hand scale:  FDI inflowChart 1. [VNM] Foreign direct investment, USD million
Source:  UNCTAD, World Investment Report 2020 online information.WT/TPR/S/ 410 • Viet Nam  
 
- 30 - 
 
  Sector  No. of projects  Total capital  
Construction (CON)  830 2,546.03  
Water supply, sewerage, waste management and remediation 
activities (WAT)  53 2,372.13  
Professional, scientific and technical activities (PRO)  2,030  2,198.01  
Transportation and storage (TRAN)  489 1,824.55  
Accommodation and catering services (HOS)  530 1,704.02  
Mining and quarrying (MIN)  12 1,359.22  
Information and communication (COM)  1,363  1,120.15  
Health care and social relief (HEA)  70 955.73  
Agriculture, forestry and fishing (AGR)  121 794.54  
Administrative activity and supporting service (ADM)  306 571.47  
Education and training (EDU)  370 388.05  
Art, entertainment and recreation (ART)  39 276.04  
Other service activities (OTH)  65 237.44  
Financial, banking and insurance activities (FIN)  28 68.11  
Activities of households as employers  5 4.37 
Total  17,468  143,110.19  
Source:  Information provided by the authorities.  
1.46.   FDI in Viet  Nam's manufacturing sector is dominated by electronics multinationals and apparel 
producers engaged in processing and final assembly. This FDI manufacturing sector generates a 
large trade surplus (15% of GDP in 2018).28 The investment in these segments is positively 
correlated to productivity; that is, higher productivity leads to more foreign investment, while foreign 
investment pushes up productivity through the technology diffusion effect (Chart 1.13). A study 
shows that Viet  Nam's deep engagement in GVCs, through the FDI manufacturing sector, improves 
the capacity of local firms that  are suppliers to those foreign -owned firms.29  
Chart 1.13 FDI stock and productivity by sector, 2019  
 
Source:  Information provided by the authorities.  
1.47.   Compared with the manufacturing sector, the productiviti es of other sectors are low (20% of 
those in the FDI sectors)30, and the exports of the sectors are dominated by agricultural commodities 
and oil. Investment in these other sectors fell, partly reflecting cutbacks in SOE capital formation in 
 
28 IMF (2019), Vietnam: 2019 Article IV Consultation –Press Release; Staff Report; and Statement by the 
Executive Director for Vietnam , IMF Country Report No. 19/235.  
29 Amendolagine, Presbitero, Rabellotti, Sanfilippo, a nd Seric (2017), FDI, Global Value Chains, and 
Local Sourcing in Developing Countries , IMF Working Paper WP/17/284.  
30 Slow SOE reform progress, barriers faced by SMEs to reach economies of scale, and credit 
misallocation and weaknesses in financial interm ediation impede the development of a productive and vibrant 
economy outside the FDI sector. IMF (2019), Vietnam:  2019 Article IV Consultation –Press Release; Staff 
Report; and Statement by the Executive Director for Vietnam , IMF Country Report No. 19/235.  
AGRMINMAN
ELE
WATCON
TRADE
TRAN
HOSCOM
FINIMM
PRO
ADM
EDUHEA
ARTOTH
0.001.002.003.004.005.006.00
0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50log FDI stock
log productivityWT/TPR/S/ 410 • Viet Nam  
 
- 31 - 
 
  heavy industri es, barriers to the development of private manufacturing firms and SMEs, and 
declining public investment. National savings (29% of GDP in 2019) remains consistently higher 
than domestic investment (26% of GDP in 2019) (Table 1.2), indicating a shallow fina ncial sector 
and a lack of investment opportunities.  
1.48.   FDI was mainly from neighbouring economies, including China, Japan, the Republic of Korea, 
Singapore, and Chinese Taipei.  WT/TPR/S/ 410 • Viet Nam  
 
- 32 - 
 
 2  TRADE AND INVESTMENT REGIMES  
2.1  General Framework  
2.1.1   Institutional framework  
2.1.  Viet Nam adopted a new constitution in November 2013. According to the authorities, the 2013 
Constitution reflects the changes in the international and domestic environment since the adoption 
of the 1992 Constitution. It recognizes for the first time the role played by the private sector, and 
affirms the protection of lawful assets from nationalization.1 The new Constitution also has additional 
provisions to control state agencies in their exercise of legislative, executive, and jud icial powers.2  
2.2.  As stipulated in the Constitution, the National Assembly is the highest representative body of 
the people of Viet  Nam, and the highest body of state power. The term of the National Assembly is 
five years. The President (Head of State), the Prime Minister (Head of the Government), the Chief 
Justice of the Supreme People's Court, and the Prosecutor General of the Supreme Peo ple's Procuracy 
are elected from the members of the National Assembly. Their terms of office are the same as that 
of the National Assembly.  
2.3.  Legislative power is vested in the unicameral National Assembly. Between sessions of the 
National Assembly, the Sta nding Committee of the National Assembly functions as the legislature.3 
The National Assembly enacts, amends, and annuls laws , while the Standing Committee enacts 
ordinances4 (Section 2.1.3). Both the National Assembly and the Standing Committee make dec isions 
on the basis of a simple  majority.5 
2.4.  The Government is the executive branch, and it consists of 22 ministries and 8 ministerial -level 
agencies.6 The State Bank of Viet  Nam (SBV, the central bank) is one of the 22 ministerial agencies; 
it is not ind ependent from the executive branch. In general, the Government promulgates decrees 
stipulating specific measures to implement laws and resolutions of the National Assembly, including 
ordinances and resolutions of the Standing Committee.7 The Law on Handli ng Administrative 
Violations (Law No. 15/2012/QH13), issued on 20 June 2012,  provides remedies against the 
misconduct of the executive branch.  
2.5.  Judicial power is exercised by the People's Courts8, which include the Supreme People's Court 
at the top and ot her courts at lower levels. The People's Procuracies exercise prosecutorial power 
and supervise judicial activities. The Procuracies include the Supreme People's Procuracy and other 
lower -level procuracies.  
2.6.  Subnational administration is divided into three levels: (i)  provincial, under the central 
Government; (ii)  district (both rural and urban); and (iii) commune. Local governments at each level  
are organized into People's Councils and People's Committees, which mirror the structure of the 
central Governmen t. The People's Councils are the local bodies of state power (i.e. local legislature); 
the People's Committees are the executive at the local level, reporting to their corresponding People's 
Council and the line agencies at higher levels. Both are responsi ble for implementing national laws 
within their respective jurisdictions9, and deciding local issues as provided by law.  
 
1 2013 Constitution, Article  53. 
2 2013 Constitution, Article  2. 
3 The Standing Committee is headed by the Speaker (i.e. Chairperson) of the National Assembly. 
Members of the Cabinet may not be members of the Standing Committee.  
4 2013 Constitution, Articl e 74. 
5 2013 Constitution, Article  85. 
6 Government Portal, Ministries . Viewed at: 
http://www.chinhphu.vn/portal/page/portal/English/ministries .  
7 2015 Law on Promulgation of Legal Documents, Article  19. 
8 The National Assembly may also set up special tribunals in certain circumstances.  
9 2015 Law on Promulgation of Legal Documents, Ar ticles 27 and 28.  WT/TPR/S/ 410 • Viet Nam  
 
- 33 - 
 
 2.1.2   International agreements  
2.7.  The Government is responsible for n egotiating treaties and international agreements as 
mandated by the Presid ent.10 Not all concluded and signed treaties and agreements must be ratified 
by the National Assembly.11 Both Article  70 of the Constitution and the 2016 Law on Treaties12 
stipulate when treaties need ratification by the National Assembly, including treati es for Vietnamese 
membership in an international or regional organization. The authorities note that the National 
Assembly ratified Viet  Nam's WTO accession protocol, the Comprehensive and Progressive 
Agreement for Trans -Pacific Partnership (CPTPP), and th e Free Trade Agreement between Viet  Nam 
and the European  Union.13  
2.8.  On entry into force, an international treaty may be applied in Viet  Nam through changes in 
domestic legislation (i.e. legal normative documents) (Section 2.1.3) or through direct applicatio n.14 
All WTO agreements , where applicable,  were directly applied in Viet  Nam.15 When changes in 
domestic legislation are deemed necessary for a treaty's application, the  relevant authorities develop 
an implementation plan, and propose changes in legislatio n for the legislature's consideration.  
2.9.  In the event of a discrepancy between the provisions of international treaties and domestic 
legislation, those of the treaties prevail.16 
2.1.3   Transparency and certainty  
2.10.   On 1 July 2015, the Law on Promulgation of Legal Documents (Law No. 80/2015/QH13), 
issued on 22 June 2015, entered into force; it repealed and replaced both the 2008 Law on 
Promulgation of Legal Documents and the 2004 Law on Promulgation of Legal Documents  of the 
People's Council and People's Committee. The authorities consider that the new Law streamlined the 
system of legal normative documents, and ensured consistency among them, regardless of whether  
they are promulgated at the central or local level.17  
2.11.   Under the Constitution, there are 10 forms of legislation (i.e. legal normative documents) 
(Box 2.1). The National Assembly adopts laws and resolutions. R esolutions of the National Assembly 
are usually employed to implement new policies on a pilot basis, and to meet urgent socio -economic 
development requirements.18 Ordinances and resolutions of the Standing Committee are not required 
to be transposed into/replaced with a new law within a certain time -frame. The Standing Committee 
may pass a resolution to a bolish, suspend, or extend the application of all or parts of existing 
ordinances and resolutions.19 In the event of conflicts in provisions from various legal normative 
documents, the one promulgated by a higher legal hierarchy, or the one of a later date  if promulgated 
 
10 2013 Constitution, Article  96. 
11 As per the 2013 Constitution, the signing of or withdrawal from treaties in the name of the 
Government,  is required to be approved only by the Government; ratification of such treaties by the National 
Assembly is not required. Article  28 of the 2016 Law on Treaties lists the categories of treaties that must be 
concluded and signed in the name of the state.  
12 The Law on Treaties entered into force on 1 July 2016, repealing and replacing the Law on the 
Conclusion, Accession and Implementation of Treaties. According to the authorities, compared with the 
replaced Law, the Law on Treaties provides additional regulations on plans for treaty implementation. The Law 
includes provisions that facilitate the process  of proposing negotiation of treaties, as well as those on the 
negotiation and signing of treaties with expedited procedures.   
13 Not all trade -related treaties/agreements are subject to ratification by the National Assembly. Only 
trade -related treaties/ag reements falling into the categories listed in Article  29 of the 2016 Law on Treaties 
must be ratified by the National Assembly.  
14 The National Assembly, the President, or the Government, when deciding whether to be bound by a 
treaty, shall also decide on the direct application of all or part of that treaty if the provisions are sufficiently 
clear and specific for implementation. See 2016 Law on Treaties, Article 6.  
15 National Assembly Resolution No. 71/2006/NQ -QH11, 29 November 2005.  
16 2016 Law on Treaties , Article  6. 
17 Previously, provisions pertaining to the promulgation of legal documents were set forth in two laws: 
(i) the 2008 Law on Promulgation of Legal Documents, and (ii)  the 2004 Law on Promulgation of Legal 
Documents of the People's Council and Pe ople's Committee. According to the authorities, provisions in these 
two laws were inconsistent, and even contradictory, despite both referring to the same issue.  
18 2015 Law on Promulgation of Legal Documents, Article  15. 
19 2015 Law on Promulgation of Legal  Documents, Article  16. WT/TPR/S/ 410 • Viet Nam  
 
- 34 - 
 
 by the same level of hierarchy, prevails.20 The extent to which new legislation abrogates or 
supplements existing legislation is not always evident.21  
Box 2.1 The system of legal normative docum ents, 2020  
Legislation is divided into 10 forms of legal normative documents. All have binding effect s and may be invoked 
in the People's Courts. The legal hierarchy is listed in descending order . Legislation at the subnational level 
may be applied only wi thin the boundaries of the corresponding jurisdiction.   
 
National level:  
1. laws and resolutions of the National Assembly;  
2. ordinances and resolutions of the Standing Committee of the National Assembly; joint resolutions 
between the Standing Committee of the N ational Assembly and the Presidium of the Central 
Committee of the Vietnam Fatherland Front;  
3. orders and decisions of the President;  
4. decrees of the Government; joint resolutions between the Government and the Presidium of the 
Central Committee of the Vietna m Fatherland Front;  
5. decisions of the Prime Minister;  
6. resolutions of the Judicial Council of the Supreme People's Court; and  
7. circulars of the Chief Justice of the Supreme People's Court; circulars of the Prosecutor General of 
the Supreme People's Procuracy;  circulars of ministers and heads of ministerial -level agencies; joint 
circulars between the Chief Justice of the Supreme People's Court and the Prosecutor General of the 
Supreme People's Procuracy; joint circulars between ministers, heads of ministerial -level agencies, 
the Chief Justice of the Supreme People's Court, and the Prosecutor General of the Supreme People's 
Procuracy; and decisions of the State Auditor General.  
 
Subnational level:  
8. resolutions of People's Councils;  
9. decisions of People's Committees ; and  
10. legal normative documents of local administrations in special administrative -economic units.  
Note:  Compared with the replaced laws, the 2015 Law on Promulgation of Legal Documents abolished five 
forms of legal normative documents, such as: (i) joint resolutions of the Standing Committee (or the 
Government) and a central agency of a socio -political organization (exce pt for joint resolutions 
between the Standing Committee (or the Government) and the Presidium of the Central Committee 
of the Vietnam Fatherland Front); (ii) joint circulars of ministers and the heads of ministerial -level 
agencies; (iii) directive notices of provincial People's Committees; (iv) directive notices of district 
People's Committees; and (v) directive notices of commune People's Committees. The 2015 Law 
introduced a new form of legal normative document: one of local administrations in special 
administrative -economic units.  
Source:  Information provided by the authorities; and the 2015 Law on Promulgation of Legal Documents.  
2.12.   Laws or ordinances must be promulgated within 15 days of their passage, unless the President 
does not assent to the ordinance passed by the Standing Committee.22 A transition period between 
the dates of promulgation and entry into force of a legal document must be provided: no shorter 
than 45 days for national legislation, and no shorter than 7 to 10 days for legislatio n at subnational 
levels. All legal normative documents promulgated by the Government are available in Vietnamese 
on the Government Portal.23  
2.13.   Though not recognized as legal normative documents, "official letters", notices, or guidelines 
are relied on by ma ny ministries to set policy and clarify implementation issues. According to the 
authorities, the 2015 Law on Promulgation of Legal Documents prohibits the promulgation of 
administrative procedures in circulars, joint circulars, and documents of local gover nments except 
as otherwise provided in the Law. The authorities also note that an Advisory Council for Reforming 
Administrative Procedures was established to improve the quality of handling administrative 
procedures at ministries, agencies, and localities.24  
2.14.   According to the authorities, the 2015 Law on Promulgation of Legal Documents provides a 
coordination mechanism for policy formulation and legislative process, which helps stakeholders such 
 
20 2015 Law on Promulgation of Legal Documents, Article  156. 
21 WTO, Trade Policy Review of Viet  Nam, WT/TPR/S/287/Rev.1, 4 November 2013.  
22 In this case, the President must send a written request to the Standing Committee for reconsi deration 
of the ordinance within 10 days of its passage.  
23 Government Portal, Legal Normative Documents . Viewed at: http://vbpl.vn/TW/Pages/vbpqen.aspx .  
24 Directive No. 30/CT -TTg, 30 October 2018.  WT/TPR/S/ 410 • Viet Nam  
 
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 as government agencies, private associations, and individuals to provide input into the drafting of 
legal documents. As per the Law, holding public consultations is mandatory for both policy 
formulation and the drafting of legal normative documents. The competent authorities responsible 
for drafting the legislation m ust provide the public with a comment period of no fewer than 30 days; 
the drafting authorities must publish the proposed bill, written responses to all comments received, 
and the revised text of the proposed legislation on their websites.25  
2.15.   In addition, according to the authorities, the Government holds regular dialogues on economic 
policies with representatives of businesses, academia, industry associations, and international 
organizations. The Prime Minister and cabinet members participate in such dialo gues; ministries (and 
ministerial -level agencies) formulate specific strategies and measures to address concerns raised in 
the dialogues.  
2.2  Trade Policy Formulation and Objectives  
2.2.1   Trade policy objectives  
2.16.   Viet Nam recognizes international economic integratio n as one of the important drivers for its 
institutional improvement, economic growth, and development. In January 2016, the Government 
approved an Overall Strategy for International Integration through 2020, Vision to 2030. The 
Strategy states that the obj ectives of international integration are, inter alia , to take "full advantage 
of favourable global condition to soon turn Viet  Nam into a modern -oriented industrialized country", 
and to improve "people's living standards".26  
2.17.   Specific to trade, Viet  Nam se eks "to diversify export -import markets" and "to actively take 
part in the global production network and the value chains".27 The Strategy on Exports and Imports 
for 2011 -20, Vision to 2030 set s out three specific targets:  
• the average annual growth rate of exports should be at the double -digit level;  
 
• the growth rate of imports should be lower than that of exports; and  
 
• a gradual reduction of the trade deficit, so as to guarantee a trade balance by 2020, and 
reach a trade surplus in 2021 -30. 
2.18.   The auth orities state that all three targets were achieved. Furthermore, the Ministry of 
Industry and Trade (MOIT) adopted the Master Plan for Trade Development on 24 June 2011, with 
a focus on accelerating trade by integrating Viet  Nam into foreign markets. In or der to better 
implement the Plan, the Prime Minister issued a directive on 4 September 2018, instructing 
government agencies to make a positive contribution upon joining international and regional 
multilateral organizations and forums, such as the Associat ion of Southeast Asian Nations (ASEAN) 
and the WTO. The goal is to increase Viet  Nam's profile in the international arena, make full use of 
technical assistance provided by partners to improve the capacity for macroeconomic management, 
create a stable and transparent business environment to attract foreign investment, and provide 
business opportunities for domestic and foreign enterprises.28 
2.2.2   Trade policy formulation and implementation  
2.19.   Trade and trade -related policies are formulated at the central level, and  are implemented 
uniformly nationwide. The MOIT remains the focal point of the Government for trade and trade -
 
25 When  the legislation takes the form of laws and ordinances, the proposal must be published in the 
Official Gazette  and on its website. The Law does not have provisions for a new comment/consultation period 
when the revised text is different from the originally  proposed text.  
26 See Part III, Objectives and Guiding Viewpoints, Overall Strategy for International Integration through 
2020, Vision to 2030.  Viewed at: 
http://www.chinhphu.vn/portal/page/portal/English/strategies/strategiesdetails?categoryId=30&articleId=1005
6863.  
27 See Section 1, Viewpoints of the strategy, Strategy on Exports and Imports for 2011 -20, Vision to 
2030. Viewed at : 
http://chinhphu.vn/portal/page/portal/English/strategies/strategiesdetails?categoryId=30&articleId=10051303 . 
28 Directive No. 26/CT -TTg, 4 September 2018.  WT/TPR/S/ 410 • Viet Nam  
 
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 related matters.  Its responsibilities include: (i)  formulating trade strategies, plans, and programmes; 
(ii) preparing and drafting legislation on  trade and trade -related issues; (iii)  supervising trade policy 
implementation; and (iv)  promoting trade. In trade negotiations, the MOIT plays a leading role in 
coordinating with other competent authorities that have trade -related portfolios , such as the 
Ministries of Finance, Agriculture and Rural Development, Health, and Science and Technology.29 The 
Multilateral Trade Policy Department under the MOIT is the focal point for WTO -related matters.  
2.20.   In 2016, the National Committee for International Economic Cooperation was transformed 
into the Inter -ministerial Steering Committee on International Economic Integration (ESC).30 The 
ESC is the intersectoral coordination mechanism for policy formulation and economic cooperation, 
and is chaired by the Deputy Prime  Minister. It holds regular and extraordinary meetings, whose 
participants include senior officials from all ministries and selected agencies. It also produces 
periodical reports. The Secretariat of the ESC is housed in the MOIT.31   
2.21.   Viet Nam did not estab lish an industrial adjustment programme to address the impact of trade 
on the domestic economy.  
2.3  Trade Agreements and Arrangements  
2.3.1   WTO  
2.22.   Viet Nam has been a WTO Member since January 2007. All WTO agreements to which 
Viet Nam is a signatory are directly applie d, where applicable  (Section 2.1.2), and may be invoked 
in Vietnamese courts.32 Viet Nam considers that its WTO membership play s a central role in its 
international integration strategy  and contribut es to global common rules and standards.33 
2.23.   Viet Nam submitted its instrument of acceptance of the Agreement on Trade Facilitation (TFA) 
in December 2015, and ratified the amendment of the TRIPS Agreement in January 2017. It 
participates in the Information Technology Agreement (ITA), but not in the Agreement's expansion 
(ITA 2), nor is it a contracting party to the WTO plurilateral Agreements on Government Procurement 
(GPA) and on Trade in Civil Aircraft.  
2.24.   Viet Nam submitted more than 350 notifications during the review period, covering, inter alia , 
anti-dumping legislation, agriculture measures, import licensing requirements, standards and 
technical regulations, trade facilitation, and safeguard measures  (Table A2.1) . 
2.25.   With respect to dispute settlement, Viet  Nam was involved in 5 cases as a complaina nt, none 
as a respondent, and 33 as a third party.  
2.3.2   Regional and preferential agreements  
2.26.   Viet Nam considers that p articipation in regional trade agreements (RTAs) is a way to advance 
its international integration.34 As at June 2020, Viet  Nam was a party  to 15 RTAs (Table 2.1).  
 
29 See Commercial Law, Article  8; and Foreign Trade Administration Law, Article  3.  
30 Prime Minister's Decision No. 04/QD -BCDLNKT, 9 January 2015.  
31 The Minister of Industry and Trade is the Vice Chairman of the Committee and, as Head of the 
Government's delegation for international economic/trade negotiations, was assigned as Secretary -General of 
the ESC. See Inter -agency Steering Committee for International Economic Integration, Manda tes (in 
Vietnamese). Viewed at: http://hoinhapkinhte.gov.vn/Gi%E1 %BB%9Bi -thi%E1%BB%87u/Ch%E1%BB%A9c -
n%C4%83ng -nhi%E1%BB%87m -v%E1%BB%A5/ID/1032/Gioi -thieu-ve-Ban-Chi-ao-lien-nganh -hoi-nhap-
quoc-te-ve-kinh-te.   
32 In the cases where such provisions are clear and detailed enough for implementation.  
33 Government Portal, Overall Strategy for International Integration through 2020, Vision to 2030 . 
Viewed at: 
http://www.chinhphu.vn/portal/page/portal/E nglish/strategies/strategiesdetails?categoryId=30&articleId=1005
6863. 
34 Government Portal, Overall Strategy for International Integration through 2020, Vision to 2030 . 
Viewed at: 
http://www.chinhphu.vn/portal/page/portal/English/strategies/strategiesdetails?categoryId=30&articleId=1005
6863.  WT/TPR/S/ 410 • Viet Nam  
 
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 2.27.   During the review period, Viet  Nam, as an individual signatory, signed six RTAs, and concluded 
the negotiations of a free trade agreement. Also, as a member of the ASEAN, Viet  Nam signed new 
RTAs with third parties including India and  Hong Kong, China. RTA negotiations with the European 
Free Trade Association and with Israel are ongoing.  
Table 2.1 RTAs of which Viet  Nam is a party, June 2020  
Agreements  Coverage  Effective date  CRTA consider ation  
ASEAN Free Trade Area  G and S  01/01/1993  Y,  
BISD26S/321 (L/4735)  
ASEAN -China  G and S  21/09/2005 (G)  
26/06/2008 (S)  Y, 
WT/REG279/1  
ASEAN -Japan  G  01/12/2008  Y, 
WT/REG277/1  
Viet Nam-Japan  G and S  01/10/2009  Y, 
WT/REG275/1/Rev.1  
ASEAN -Republic of Korea  G and S  01/01/2010 (G)  
14/10/2010 (S)  Y, 
WT/REG287/1;  
WT/REG287/3  
ASEAN -Australia -New Zealand  G and S  01/01/2010  Y, 
WT/REG284/1/Rev.1  
ASEAN -India G and S  19/08/2010 (G)  
01/07/2015 (S)  Y, 
WT/COMTD/RTA/8/1;  
WT/REG372/1  
Viet Nam-Chile G 01/01/2014  Y, WT/REG365/1  
Viet Nam-Republic of Korea  G and S  20/12/2015  Y, WT/REG371/1  
Viet Nam-Eurasian Economic Union (EAEU)  G and S  05/10/2016  Y, WT/REG385/1  
Comprehensive and Progressive Agreement for 
Trans -Pacific Partnership (CPTP P) G and S  14/01/2019  N 
ASEAN -Hong Kong, China  G and S  11/06/2019  N 
Viet Nam-European  Union  G and S  01/08/2019  N 
Viet Nam-Cuba Trade Agreement  G 01/04/2020  N 
Regional Comprehensive Economic Partnership 
(RCEP)  G and S  Not yet applied  N 
Note:  G Goods.  
 S Services.  
 Y Has been considered in the WTO Committee on Regional Trade Agreements (CRTA).  
 N Has not been considered in the WTO CRTA.  
Source:  WTO Secretariat.  
2.28.   Prior to its WTO accession, Viet  Nam concluded bilateral trade agreements with some 
40 partners. These bilateral trade agreements continue to be effective (e.g. the bilateral trade 
agreement with the United States), unless the agreement is replaced with a new agreement (e.g. 
the agreement with Cuba), according to the authorities.  
2.3.2.1   ASEAN  
2.3.2.1.1   ASEAN Free Trade Area  
2.29.   Viet Nam has been a member of the ASEAN since July 1995 ; it considers ASEAN as the 
cornerstone of its international integration. Viet  Nam chaired the ASEAN in 2020.  
2.30.   The ASEAN developed the framework of the ASEAN Free Trade Area, coverin g trade in both 
goods and services  under specific agreements . Under the ASEAN Trade in Goods Agreement (ATIGA), 
as at 1 January 2018, nearly 100% of goods originating from ASEAN members entered Viet  Nam 
tariff-free.35 The ATIGA Information Technology Agree ment was concluded in 2019 and became 
effective on 1 January 2020. The ATIGA also contains provisions pertaining to non -tariff barrier 
elimination and trade facilitation.  
2.31.   Under the ASEAN Framework Agreement on Services (AFAS), 12 main service sectors 
comp rising 128 subsectors were opened to operators of ASEAN members. The ASEAN Trade in 
Services Agreement (ATISA), under negotiation since 2013, was signed on 17 October 2020. The 
 
35 For goods originating from ASEAN members, 194 tariff lines remain non -zero-rated.  WT/TPR/S/ 410 • Viet Nam  
 
- 38 - 
 
 ATISA consolidates the achievements under the AFAS, provides for a transition t o an eventual 
negative -list approach in scheduling liberalization commitments, and will eventually supersede the 
AFAS.36 Services professionals now may work across ASEAN members under the ASEAN Agreement 
on Movement of Natural Persons, the ASEAN Mutual Rec ognition Arrangement on Services, and the 
ASEAN Qualifications Reference Framework.  
2.32.   The ASEAN Comprehensive Investment Agreement (ACIA) entered into force in 2012. It 
covers investment liberalization, protection, promotion, and facilitation, with the aim of creating an 
open investment environment in the ASEAN region. Under the ACIA, ASEAN -based investors enjoy 
non-discriminatory treatment, with a single negative list of reservations, and provisions on further 
progressive liberalization. The Fourth Protocol  to Amend the ACIA was signed 15 July 2020. The 
Protocol incorporates TRIMs -plus37 provisions prohibiting performance requirements in the ACIA.  
2.3.2.1.2   ASEAN -Hong Kong, China Free Trade Agreement  
2.33.   The RTA between ASEAN members and Hong Kong, China was signed in No vember 2017, and 
entered into force on 11 June 2019 in Viet  Nam.38 
2.34.   Under this agreement, Viet  Nam is expected to eliminate import duties for 75% of total tariff 
lines for goods originated from Hong Kong, China by 2029, and further eliminate an additional 1 0% 
of lines by 2033. In terms of services trade, Viet  Nam offers service providers in Hong Kong, China 
with commitments to open certain markets such as professional services (e.g. legal services), 
business services (e.g. advertising services), and telecomm unications.39 According to the authorities, 
the Agreement takes a progressive liberalization approach; it also provides a regular review 
mechanism for future negotiations of market access improvements.  
2.35.   With regard to investment, Viet  Nam, together with oth er ASEAN members, pledged to protect 
businesses based in Hong Kong, China that invest in ASEAN countries on the principle of fair 
treatment. In addition, there is a stand -alone Investment Agreement between ASEAN and Hong 
Kong, China; this agreement contain s provisions about the treatment of investments in the services 
sectors.  
2.3.2.1.3   ASEAN -India Agreement on Trade in Services  
2.36.   This agreement was signed by India and the ASEAN members in November 2014, and entered 
into force on 1 July 2015.40 
2.37.   Viet Nam's sector -specific commitments in this agreement are identical to its GATS schedule. 
On horizontal commitments, Viet  Nam maintains, as in its GATS schedule, certain restrictions under 
Mode 3, including unbound for the establishment of a branch unless otherwis e indicated in each 
specific sector or subsector. Horizontal commitments under Mode 4 cover intra -corporate 
transferees, service salespeople, persons responsible for setting up a commercial presence, 
contractual service suppliers, and other personnel. Whil e the entry of contractual service suppliers 
was allowed under the GATS, specifically only for computer and related services and engineering 
services, under the Agreement, the entry of architectural service suppliers is also liberalized.  
 
36 ASEAN  Secretariat, "ASEAN Signs Trade in Services Agreement", 23 October 2020. Viewed at: 
https://asean.org/asean -signs-trade -services -agreement -2/. 
37 This refers to commitments beyond th e WTO  TRIMs Agreement.  
38 The dates that the ASEAN -Hong Kong, China, free trade agreement entered into force are different 
among ASEAN members.  
39 Detailed specific commitments may be consulted in Annex 8 -1 to the ASEAN -Hong Kong, China, free 
trade agreemen t. Viewed at: 
https://www.tid.gov.hk/english/ita/fta/hkasean/files/AHKFTA_Chapter_8_Annex_8 -1_SOC_Viet_Nam.pdf .  
40 This agreement was negotiate d under the Framework Agreement on Comprehensive Economic 
Cooperation between the Republic of India and the ASEAN and the Protocol to Amend the Framework 
Agreement, signed in 2009. It should also be viewed in connection with the Agreement on Trade in Goods  that 
entered into force on 1 July 2003; the ASEAN -India Agreement on dispute settlement mechanism was signed in 
2009.  WT/TPR/S/ 410 • Viet Nam  
 
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 2.3.2.1.4   Other ASEAN RTAs  
2.38.   Viet Nam, through its membership in ASEAN, maintains RTAs with Australia -New Zealand, 
China, India, Japan, and the Republic of Korea.41 
2.3.2.2   Comprehensive and Progressive Agreement for Trans -Pacific Partnership (CPTPP)  
2.39.   Viet Nam signed the CPTPP on 8 March 2018.42 It was ratified by the National Assembly on 
12 November 2018, and entered into force on 14 January 2019.43  
2.40.   Viet Nam adopted a phased approach to reducing tariffs for goods originating from CPTPP 
contracting parties over a period of 10 years. Upon entry into force, about 66% of total Vietnamese 
tariff lines were zero -rated, which covered products such as, inter alia,  animal feed, dairy products, 
grains, rice, cotton, leather and leather products, textiles and materials for textiles, footwear, r ubber 
and rubber products, furniture, wood and wood products, plastics, pharmaceuticals, pesticides, 
chemicals, fertilizers, perfume, cosmetics, machinery and equipment, and electronic accessories. 
Approximately 86.5% of total lines are to be zero -rated wi thin three years of the agreement's entry 
into force. For the remainder, tariff reductions will be implemented over a period of between 5 and 
10 years.  
2.41.   For products deemed highly sensitive, tariff rate quotas may be applied, or tariff reductions 
may be im plemented over a period longer than 10 years. Specifically, Viet  Nam adopts tariff rate 
quotas for unmanufactured tobacco and used vehicles. As a result of the CPTPP, Viet  Nam committed 
to remove in -quota duties for sugar, eggs, and salt 5 or 10 years (dep ending on the good) after the 
implementation of the Agreement.  
2.42.   Viet Nam will also abolish export duties on the majority of goods within 5 to 15 years of the 
Agreement's entry into force.44 However, it reserves the right to maintain export duties on a numbe r 
of crucial commodity groups, such as coal, oil, and certain types of ores and minerals.45   
2.43.   Regarding rules of origin, the CPTPP cumulative rule allows diagonal cumulation, i.e.  a CPTPP 
contracting party  can treat the raw materials of one or more CPTPP contracting parties  as its own, 
when those materials are used to produce a good of CPTPP origin.  
2.44.   In terms of trade in services and investment, Viet  Nam lists all of its reservations that are 
inconsistent with the service and investment chapters46; those res ervations mostly concern the 
national treatment obligation.  
2.45.   Viet Nam made its commitments regarding government procurement under the CPTPP 
(Section 3.3.6).  
 
41 For details, see WTO document WT/TPR/S/287/Rev.1, 4 November 2013, Table A2.1.  
42 Contracting parties of the CPTPP include Australia, Br unei Darussalam, Canada, Chile, Japan, 
Malaysia, Mexico, New Zealand, Peru, Singapore, and Viet  Nam.  
43 Six other countries also ratified the CPTPP: Australia, Canada, Japan, Mexico, New Zealand, and 
Singapore.  
44 Items are listed as Categories A to J in An nex 2 -C to the CPTPP Agreement.  Viewed at: 
http://cptpp.moit.gov.vn/data/e0593b3b -82bf-4956-9721-
88e51bd099e6/userfiles/files/2_%20Nat ional%20Treatment%20and%20Market%20Access%20for%20Goods.p
df.  
45 Items are listed as Category K in Annex 2 -C to the CPTPP Agreement. Viewed at: 
http://cptpp.moit.gov.vn/data/e0593b3b -82bf-4956-9721-
88e51bd099e6/userfiles/files/2_%20National%20Treatment%20and%20Market%20Access%20for%20Goods.p
df.  
46 Reservations of existing measures are listed in  Annex I to the CPTPP Agreement. Viewed at: 
http://cptpp.moit.gov.vn/data/e0593b3b -82bf-4956-9721-
88e51bd099e6/userfiles/files/An nex%20I_%20Viet%20Nam.pdf . Reservations of permanent measures are 
listed in Annex II. Viewed at: http://cptpp.moit.gov.vn/data/e 0593b3b -82bf-4956-9721-
88e51bd099e6/userfiles/files/Annex%20II_%20Viet%20Nam.pdf .  WT/TPR/S/ 410 • Viet Nam  
 
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 2.3.2.3   European  Union -Viet Nam Free Trade Agreement (EVFTA)  
2.46.   The free trade agreement between Viet  Nam and  the European  Union was signed on 30 June 
2019, and was ratified by the National Assembly on 8 June 2020.  The Agreement entered into force 
on 1 August 2020.  
2.47.   Under the Agreement, Viet  Nam is expected to eliminate 98.3% of its total tariff lines for 
goods or iginating from the European  Union over a period of 10 years; on the application day of the 
Agreement, 48.5% of total tariff lines were zero -rated. For the remaining 1.7% of lines, tariffs may 
be reduced over a period longer than 10 years, or tariff rate qu otas, in line with Vietnamese WTO 
commitments or under the category of Completely Knocked Down, may be applied.  
2.48.   Under the Agreement, while  Viet Nam does not impose export duties on most goods, it 
reserved the right to impose export duties on 57 lines, mos t of which are commodities, such as crude 
oil or coal,  that are already subject to export duties.47  
2.49.   In general, market access and national treatment commitments under the EVFTA are similar 
to those under the GTAS; however, the authorities note that under the EVFTA, European Union 
service providers enjoy preferential conditions in some sectors, such as freight transportation, 
storage and warehouse services, cargo -handling services, telecommunications, and distribution.  
2.50.   With regard to government procurement,  the provisions are similar to those of the GPA. 
Viet Nam listed ministries and central agencies, authorities of Ha noi and Ho Chi Minh City, some 
state-owned enterprises (SOEs), and a number of state -funded entities in the procuring entities 
schedule (Sect ion 3.3.6). Viet  Nam is expected to complete the opening for the scheduled entities in 
15 years.  
2.51.   The provisions of intellectual property also cover geographical indications.  
2.3.2.4   Free Trade Agreement between Viet  Nam and the Eurasian Economic Union 
(EAEU) and  its member States (VN -EAEU FTA)  
2.52.   The VN -EAEU FTA  was signed in May 2015, and entered into force in October 2016.  
2.53.   Viet Nam committed to eliminating tariffs on 84.5% of tariff lines within 10 years, of which up 
to 60% of tariff lines were eliminated immediately after the Agreement came into effect. About 
12.8% of tariff lines are not committed for preferential rates.  
2.54.   In terms of services trade, Viet  Nam maintains restrictions on establishment in industries that 
are prohibited from opening o r may open only conditionally (Section 2.4). On sector -specific 
commitments, most are similar to Viet  Nam's schedule under the GATS, with some improvement in 
certain  subsectors, such as research and development services, and rental /leasing services without  
operators.48 
2.55.   Other commitments under  the Agreement , such as on intellectual property and competition , 
are mainly cooperative. According to the authorities, they do not exceed Viet  Nam's commitments 
in the WTO and in other FTAs that Viet  Nam has signed.  
2.3.2.5   Free Trade Agreement between the Government of the Socialist Republic of 
Viet Nam and the Government of the Republic of Korea (VKFTA)  
2.56.   The VKFTA was signed in May 2015, and entered into force on 20 December 2015.  
2.57.   In terms of trade in goods, Viet  Nam is expe cted to eliminate tariffs for 89.2% of tariff lines 
over a period of 10 years. The tariff elimination is similar to the schedule in the ASEAN -Republic of 
Korea FTA (AKFTA). However, an additional 265 lines are to  be eliminated for goods originating from 
the Republic of Korea under the VKFTA, covering products of, inter alia,  textile and footwear 
 
47 Except coking coal and coals used throughout the production of coking coal, which is almost 
unavailable in Viet  Nam.  
48 WTO document WT/REG385/1, 21 June 2019, Table 4.2.  WT/TPR/S/ 410 • Viet Nam  
 
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 materials; auto engines, components, and parts; electrical appliances and equipment; electronic 
products and components; and plastic materials.  
2.58.   For trade in service s, Viet  Nam offered more services markets to Korean service providers 
than the AKFTA. These new markets include urban planning services and urban landscape 
architecture, and leasing machines and other equipment without operators.49 The VKFTA contains a 
list of reserved measures/fields.  
2.59.   According to the authorities, the Investor -State Dispute Settlement (ISDS) Mechanism 
provided for in the VKFTA has a wider scope of application, with more specific process and procedure 
rules than in the AKFTA.50 Also, the pr ocess and the procedure of the ISDS in the VKFTA are clearer 
and more specific than those in the AKFTA.51  
2.3.2.6   Free Trade Agreement between Viet  Nam and Chile  
2.60.   Viet Nam signed a free trade agreement with Chile in November 2011, which entered into 
force on 1 Jan uary 2014.  
2.61.   The FTA covers trade in goods only. Viet  Nam is to gradually reduce tariffs for goods 
originating from Chile over a period of 15 years. Upon entry into force, tariffs for about 35% of total 
lines were eliminated; most tariffs are to be eliminate d in 2024, following 10 years of 
implementation.52 After the transition period, 10.8% of tariff lines will remain dutiable in 2029; these 
lines include meat and prepared foods, sugar, alcoholic beverages, tobacco -related products, cars, 
motorcycles, and ty res. 
2.3.2.7   Trade Agreement between the Government of the Socialist Republic of Viet  Nam 
and the Government of the Republic of Cuba (Viet  Nam -Cuba Trade Agreement)  
2.62.   The Viet  Nam-Cuba Trade Agreement replaces the 1996 agreement between these two 
countries on trade and other forms of economic cooperation. The Agreement was signed on 
9 November 2018, and entered into force on 1 April 2020.  
2.63.   Under the Agreement, Viet  Nam is expected to eliminate tariffs for almost all goods originating 
from Cuba (475 lines in total) ov er a period of four years. Four hundred thirty -one lines of goods are 
zero-rated upon the Agreement's entry into force. Over a period of four years, tariffs rates for 
cigarettes and cigars will be reduced to 70%; for alcohol and alcoholic beverages, 20%; a nd for 
sugar and unprocessed tobacco within the WTO -quota limits, 15% (in -quota rates).   
2.64.   The Agreement also covers, inter alia , customs management and trade facilitation, trade 
remedies, standards, technical regulations and conformity assessment procedures , food hygiene and 
safety measures, quarantine of plants and animals, and economic and trade cooperation.  
 
49 Other sector -specific commitments are similar to Viet  Nam's schedule under the GATS. WTO 
document WT/REG/371/1, 13 April 2017, Table 4.4.  
50 Under the AKFTA, ISDS only applies to the alleged breach of seven obligations, namely, national 
treatment; most -favoured -nation treatment; general treatment of investment; senior management and boards 
of directors; transfers, expropriation, and compensation; and compensation for losses. However, the ISDS 
mechanism under the VKFTA is applied to the performance requireme nts obligation, in addition to the seven 
obligation breaches provided under the AKFTA.  
51 The VKFTA provides a number of disciplines on arbitral procedure that are not available under the 
AKFTA, including the number, remuneration, and qualifications of arbi trators; the process to consolidate cases; 
the conduct of the arbitration; the interpretation of the joint committee on the Agreement's provisions; and the 
address for delivery of notices and other documents. The VKFTA also requires more detailed informati on than 
the AKFTA regarding contents of the notice of intent to submit a claim to arbitration, conditions to submit a 
claim to arbitration, and consent to arbitration.  
52 WTO document WT/REG365/1, 21 June 2016, Table 3.4.  WT/TPR/S/ 410 • Viet Nam  
 
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 2.3.2.8   Regional Comprehensive Economic Partnership (RCEP)  
2.65.   The RCEP is an agreement among 15 parties, including 10 ASEAN members53 and 5 other 
countries54 in the region. Viet  Nam concluded negotiations of the RCEP in November 2019, and 
signed the agreement on 15 November 2020.55 
2.66.   The RCEP covers a wide variety of areas, including, inter alia,  trade in goods, trade in services 
and investment, and intellectual pro perty.56  
2.3.3   Other agreements and arrangements  
2.67.   Viet Nam does not operate a Generalized System of Preferences, nor it provides duty -free and 
quota -free market access for products originating from least developed countries.  
2.4  Investment Regime  
2.68.   Viet Nam's investment regime has been substantially  revised si nce its previous R eview in 
2013. The current Enterprise Law (Law No.  68/2014/QH13) and Investment Law (Law 
No. 67/2014/QH13) were both adopted in November 2014, and entered into  force on 1  July 2015. 
The legal forms for enterprises prescribed by the Enterp rise Law continue to be limited liability 
companies, shareholding companies, partnerships, or sole proprietorships.57 Through the update of 
the legal framework , Viet Nam intends to equalize the treatment accorded to Vietnamese and foreign 
investors and to attract foreign direct investment (FDI).  
2.69.   A foreign investor is defined by the Investment Law as any organi zation established in 
accordance with foreign laws and conducting business investment activities in Viet  Nam. Article  9 of 
the Law stipulates the prot ection of foreign investor s from nationali zation or confiscation through 
administrative measures, and establishes a list of exceptional reasons58 for expropriation by the 
State subject to compensation. According to the Enterprise Law, SOEs, foreign -investe d enterprises, 
and the Vietnamese private sector operate under equal business conditions.  
2.70.   Article  6 of t he Investment Law classifies restricted investment activities for national and 
foreign investors in banned59 and conditional business es. For reasons of national defence and 
security, social order and security, social ethics, or public health, i nvestment in conditional 
business es must satisfy certain conditions . Compared with the 2005 Investment Law, the number o f 
conditional businesses  was reduced from 386 to 243.60 Business investment conditions applying to 
domestic and foreign investors are regulated through laws, ordinances, decrees, and international 
agreements to which Viet Nam is a signatory.  The Government  regulates these conditions mainly by 
employing decrees;  ministries and agencies (ministerial agencies, People's Councils, People's 
Committees, and other entities) do not issue regulations on these matters.  
2.71.   Decree No.  118/2015/ND -CP (guidelines for some a rticles of the Law on Investment), issued 
on 12 November 2015, provides further details on conditions that might apply to investment, such 
 
53 The ASEAN members include Brunei Darussalam, Cambodia, Indonesia, Lao People's Democratic 
Republic, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Viet  Nam.  
54 The other five countries include Australia, China, Japan, the Republic of Korea, and New Zealand.  
55 The RCEP, when i n effect, shall cover a market of approximately 2.2 billion consumers, with a GDP at 
around USD  26.2 trillion (accounting for 30% of global GDP and population, respectively). In the third RCEP 
Summit in November 2019, 15 countries expressed agreement on th e legal text, which basically completed the 
negotiations.  
56 ASEAN Secretariat, "Summary of the Regional Comprehensive Economic Partnership Agreement". 
Viewed at: https://asean.org/summary -regional -comprehensive -economic -partnership -agreement/ .  
57 Any enterprise resolving social and environmental problems or serving the public interest can now be 
considered a social enterprise. Social enterprises are also request ed to reinvest at least 51% of their annual 
profits to address social and environmental objectives.  
58 Exceptional reasons include national defence and security, national interests, states of emergency, 
and prevention of, or recovery after, natural disaster s. 
59 Trade in specific narcotic substances, chemicals and minerals, and wild fauna and flora species are 
listed as banned activities in Appendices 1, 2, and 3 of the 2014 Investment Law. Furthermore, prostitution, 
trafficking in humans or their organs, human c loning, and trade in firecrackers are forbidden activities following 
the amendment of Law No.  03/2016/QH14.  
60 Law No.  03/2016/QH14.  WT/TPR/S/ 410 • Viet Nam  
 
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 as licences, certificates of eligibility, practice certificates, certificates of professional liability 
insurance, an d other non -written certification ; separate regulations prescribe specific business 
conditions that apply to related activities among the 243 conditional sectors. Investment projects 
that have a significant environmental impact, use forest or rice cultivat ion lands (more than 500 
hectares), or relocate people (20,000 in mountainous areas or 50,000 elsewhere) require approval 
by the National Assembly. For projects with a lower relocation impact (10,000 in mountainous areas 
or 20,000 elsewhere), the Prime Min ister oversees the approval procedure.  
2.72.   Furthermore, approval by the Prime Minister is required for investment projects in the building 
and commercial operation of airports and air transport , national seaports, and golf courses;  
petroleum  prospecting, expl oitation, and processing;  betting and casino businesses;  cigarette 
production;  and development of industrial parks, export -processing zones, and investment projects 
valued at VND 5 trillion (approximately USD 214 million) or more . 
2.73.   The approval of a People' s Committee, i.e. the executive arm of the Government at the 
provincial level, is required for projects involving land allocation or leasing out by the State without 
auction, tender, or transfer; changes in land -use purposes; or the use of restricted techn ologies.  
2.74.   Regarding approval, Articles  33 to 35 of the Investment Law provide guidance on the criteria 
to be used by the approving authorities (People's Committee, Prime Minister, or National Assembly) ; 
they include the necessity of the project, conformity with socio -economic development strategy and 
master plans, objectives, scope, site, duration and schedule for implementation, land use, relocation 
and resettlement, environmental protection issues, capital investment, socio -economic effects, 
special polici es, investment incentives, support, and conditions. The assessment of these criteria by 
the relevant approving authority varies according to the nature of each investment project.  
2.75.   Besides investment conditions in the 243 sectors mentioned above, additional  conditions for 
foreign investors might apply in some sectors. Although the general cap of 49% for foreign 
acquisition of public companies61 operating in unconditional sectors was abolished in 2015, foreign 
participation in some sectors remains capped at l evels varying between 30% and 51% (Table 2.2).62 
Wholly foreign -owned enterprises in architectural services can provide services only to foreign -
invested enterprises in Viet  Nam. Projects with foreign participation in sea transport, 
telecommunications serv ices with network infrastructure, afforestation, publishing, journalism, and 
the establishment of wholly foreign -owned science and technology companies may require the 
approval of the Prime Minister.  
Table 2.2 Caps on foreign participation in specific sectors and activities , 2020  
Sector  Cap on share 
capital  
Services incidental to agriculture  51% 
Joint stock commercial banksa 30% 
Basic telecommunications services with infrastructure  49% 
Value -added telecommunications services with infrastructure  50% 
Telecommunications services without infrastructure  65% 
Virtual private network (VPN) telecommunications services without infrastructure  70% 
Rail and road transport  49% 
a Note that banks with 100% foreign capital are allowed in Viet  Nam.  
Source:  Information provided by the authorities . 
2.76.   Business activities in Viet  Nam are subject to a two -tier registration procedure , which differs 
according to the participation of foreign investors an d specific conditions applied to the activity. A 
simplified registration procedure applies to business activities with foreign equity participation of less 
than 51% and for which no specific conditions apply. In that case, companies must only obtain an 
enterprise registration, and no further formalities are necessary. The enterprise registration 
 
61 In addition to publicly listed companies, Decree No.  60/2015/ND -CP allows for the majority 
participation of foreign invest ors in companies with more than 100 shareholders and with charter capital of VND 
10 billion (approximately USD 430,000) or more.  
62 Foreign participation in other sectors such as distribution services, passenger and freight transport 
(excluding cabotage) to  the supply of international maritime transport services, insurance, securities, 
maintenance and repair of aircraft (air transport), and legal services was completely liberalized in line with 
WTO commitments.  WT/TPR/S/ 410 • Viet Nam  
 
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 certificate (ERC) should be issued in three working days. Circular No.  47/2019/TT -BTC, issued by 
the Ministry of Finance (MOF), halved the fees for enterprise regis tration on 20 September 2019. 
The current fee for issuing or reissuing an ERC or changing information on it is VND 50,000 
(USD  2.14). Online applications for enterprise registration are exempt from fees. Once the ERC is 
granted, companies are requested to announce their registration on the National Business 
Registration Portal63, whose publication fee is VND 100,000 (USD 4.28).64 Changes in foreign 
ownership, legal forms, location, business name, legal representatives, and business activities 
require an amendment to the enterprise registration.  
2.77.   Foreign -invested firms with majority foreign participation must obtain an investment 
registration at the provincial Department of Planning and Investment where the business is located 
or at the Management Board of the special -purpose zone65 in which they operate.66 The investment 
registration should be granted within 15 working days; no statistics are collected on the effective or 
observed days needed for this registration. Applications for enterprise and investment registrations 
can be done simultaneously, although  the procedures remain separate, and the relevant investment 
registration authority is expected to cooperate with the enterprise registration authority.67 
Registration requirements for mergers and acquisitions were clarified in the current law and, unless 
foreign capital participation is equal to or greater than 51%, only an amendment of enterprise 
registration is needed. Article  40 of the Investment Law stipulates that changes or adjustments in 
business activities require the re -assessment and re -issuance of the investment registration. The 
investment registration is issued at no cost.  
2.78.   For activities subject to the approval of the National Assembly, the Prime Minister, or the local 
People's Committee, approval must be obtained before application for investm ent and/or enterprise 
registrations. In that case, investment registration is not mandatory for projects with foreign equity 
participation of less than 51% or domestic projects, unless requested by specific business conditions 
for foreign investors. Invest ment registration following approval should be issued in five working 
days following the appraisal. For projects subject to the approval of a People's Committee, the 
investor should be notified of the result of the procedure within 35 days.68 The Investmen t Law does 
not prescribe delays for appraisal procedures by other authorities.  
2.79.   Between 2013 and 20 19, the Vietnamese authorities approved 17,468 foreign investment 
projects with total registered capital of USD 143.1 billion. The processing and manufacturin g sector 
attracted the largest number of projects ( 6,943), representing 6 2% (USD 89.3 billion) of the total 
foreign capital invested in the country during this period.69 The preferred form of foreign investment 
is whole ownership, and major cities and surr ounding provinces are the main destinations for foreign 
investment.  
2.80.   The OECD Investment Policy Review of Viet  Nam 2018 points out that statutory delays for 
registration and approval procedures were rarely met in the past, although national authorities note d 
that this was mostly related to the investment approval process. The authorities indicate that the 
implementation of online licensing should improve these procedures, although some localities might 
continue to face challenges in implementing the highest level of digitalization outlined in this 
initiative. The National Investment Information System for Private Sector, which is to be launched 
in 2021, is expected to provide enhanced information and services on investment procedures to 
foreign investors. Acc ording to the World Bank Doing Business 2020 Report, the major obstacle to 
 
63 Available in Vietnamese and English. National  Business Registration Portal, Business Registration . 
Viewed at: www.dangkykinhdoanh.gov.vn .  
64 Circular No.  47/2019/TT -BTC. 
65 Also known as special economic zones.  
66 Investment registration for oil and gas  projects is granted by the MOIT, while the MOF also approves 
insurance projects.  
67 Although this setting cannot be considered as a one -stop shop for registration, the Government 
formalized an improved mechanism for the registration requirements for foreig n investors through Circular 
No. 02/2017/TT -BKHDT.  
68 Law No. 67/2014/QH13 on Investment, Article  33, Clause 1.  
69 Other attractive sectors for FDI are wholesale and retail trade; professional, scientific, and technical 
activities; real estate; production a nd supply of electricity; construction; water supply ; transport and storage;  
accommodation and catering; and information and communication.  WT/TPR/S/ 410 • Viet Nam  
 
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 opening a business in Viet  Nam is the delay in obtaining pre -printed VAT invoices at the municipal 
level.70 
2.81.   Decree No. 11/2016/ND -CP, as amended by Decree No. 140/2018/ND -CP, detail s the 
provisions and procedures for contracting foreign workers. The hiring of foreign workers is subject 
to the approval of the Chairman of the local People's Committee, based on employers' needs that 
cannot be covered by Vietnamese workers. Workers in 11  service sectors71 can transfer within their 
companies and work in Viet  Nam.  
2.82.   Private ownership of land is not permitted in Viet  Nam. However, the Land Law of 29 
November 2013 allows land to be leased through annual payment or one -off rental payment for the  
entire period of the lease to foreign -invested firms to implement projects in agriculture, forestry, 
aquaculture or salt making, non -agricultural production and business land, construction of public 
facilities for business purposes, and housing projects f or lease. In the case of housing investment 
projects for sale or sale combined with leasing, the State might allocate land to foreign -invested 
firms. Moreover, the Law authorizes assets associated with the land and the value of land -use rights 
to be mortga ged. The allocation of land -use rights is the competence of the provincial People's 
Committees. Although the duration of a land -lease agreement should not exceed 50 years, special 
cases with slow capital recovery in areas with difficult or exceptionally di fficult socio -economic 
conditions might be granted a land lease of up to 70 years. Leases may be extended upon expiry of 
the initial term.  
2.83.   To stimulate private investment, the current legal framework allows for the granting of 
investment incentives (Chapte r 3 of the Investment Law), including  reductions in enterprise income 
taxes, exemptions from import duties on supplies and components for investment projects, and 
exemptions or reductions of land rentals or use levies. Selected activities72 are eligible fo r investment 
incentives, as well as projects located in industrial zones and economic zones (Section 3.2.4). Also, 
supporting industries might benefit from preferences in investment credits, land and water surface  
rents, and VAT rates.  
2.84.   In February 2020, Vi et Nam notified to the WTO other support programmes that have been 
implemented since the previous Review.73 Current support programmes aim at supporting 
enterprises that hire workers with disabilities or a high proportion of women. Supported companies 
in these two programmes can be entitled to a reduction of corporate tax income, concessional loans, 
priority in land lease applications and a reduction in associated fees. A support programme for fishery 
products was active between 2015 and 2018, and its exten sion is currently under evaluation. A two -
year mechanism promoting the development of solar power projects ended in June 2019, while a 
similar mechanism for wind -power projects runs until November 2021. The additional benefit for 
energy -producing projects consists of a selling price above the retail price for electricity.  
2.85.   Decree No.  63/2018/ND -CP establishes the investment framework for public -private 
partnerships (PPPs). T he number of fields where PPPs can be implemented in Viet  Nam considerably 
increased compared with those under Decision No.  71/2010/QD -TTg, which previously regulated 
PPPs. Transport, power generation and transmission lines, public lighting, water supply and waste 
collection systems, social housing and office space for state agencies, heal th, education and training, 
commercial infrastructure and infrastructure in SEZs, agricultural and rural development, and other 
 
70 According to the World Bank's Doing Business 2020  Report, Viet  Nam substantially improved on ease 
of doing business, and the country now ranks 70th among 190 economies, up from 99th in 2013. The country 
shows an average performance among East Asian countries, where Malaysia (13th), Thailand (21st), and China 
(31st) are top performers. Its best relative scores a re on "dealing with construction permits" and "getting 
credit" (25th on both sub -indicators), and the most significant improvement is on "getting electricity" (27th, 
compared to 155th in 2013). However, the country falls behind on "resolving insolvency" (1 22nd), "starting a 
business" (115th), "paying taxes" (109th), and "trading across borders" (104th). 
71 These sectors are business, communication, construction, distribution, education, environment, 
finance, healthcare, tourism, cultural entertainment, and t ransport.  
72 Activities eligible for investment incentives include high -tech activities; production of clean and 
renewable energy; manufacture of electronic products and automobiles and their supporting activities; 
supporting industries to the textile indus try; information technology products; cultivation and processing of 
agricultural, forestry, and fishery products; forest planting and protection; waste management; infrastructure 
development, operation, and management; education; and drug, medicine, and bi otechnology production.  
73 WTO documents G/SCM/N/284/VNM, G/SCM/N/315/VNM, and G/SCM/N/343/VNM, 26 February 2020.  WT/TPR/S/ 410 • Viet Nam  
 
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 fields decided by the Prime Minister are now available for the establishment of such investment 
partnerships.  
2.86.   For projects whose  total investment capital is valued up to VND 1 .5 trillion (approximately 
USD 64 million), the private investor must contribute at least 20% of the equity. For projects of 
higher value, the private investor must contribute at least an additional 10% of the  investment 
capital beyond VND 1.5 trillion. The relevant authorities consider the financial plan, the balancing 
capacity of capital sources, and other resources to determine the value of the State's participation 
in a PPP project. The competent authority to approve the feasibility study of a PPP is the Prime 
Minister for projects of national importance and for those related to security, defence, and religion. 
Ministers, heads of ministerial -level agencies and government agencies, and presidents of provinci al 
People's Committees approve feasibility studies for projects with lower total investment capital, 
according to the Law on Public Investment.74 Decree No.  63/2018/ND -CP removes the requirement 
to obtain an investment registration for PPP projects.  
2.87.   Invest ment abroad by Vietnamese -based enterprises is governed by the Investment Law and 
Decree No.  83/2015/ND -CP of 25 September 2015 regulating outward  investment. The regulation 
and management of outward investment allow authorities and government agencies to balance 
financial resources between Vietnamese enterprises investing abroad and high demand for domestic 
investment while ensuring that outward investment is in line with other national regulations and 
commitments.  Periodically, the SBV stipulates the prov isions of foreign currency loans available for 
outward investments, according to its monetary and foreign currency management policies. P rojects 
with outward investment capital above VND 20 billion (approximately USD 864,000) and those 
requiring special po licies are subject to the approval of the National Assembly based on a report by 
an Appraisal Council established by the Prime Minister. Outward investment projects in banking, 
insurance, securities, journalism, broadcasting, telecommunication, and real es tate above VND 400 
billion (approximately USD 17. 2 million) and projects in other sectors exceeding VND 800 billion 
(approximately USD 34.5 million) are subject to the approval of the Prime Minister. The Ministry of 
Planning and Investment manages the procedure for appraisals of large investment projects, and is 
responsible for the issuance of certificates of outward investment registration for all outward 
investment projects.75 As per the Investment Law, outward investment is restricted in the sectors 
where private investment is forbidden; quarterly and annual reports prepared by Vietnamese 
investors are the means used to monitor the implementation of outward investment.  
2.88.   At the end of 2019, the Ministry of Planning and Investment had granted investment 
certificates for 1,321 projects overseas, with a total capital of USD 20.6 billion. Vietnamese 
investment is active in 18 sectors across 78 countries and territories on 5 continents. Main sectors 
for outward investment are exploration and mining, mostly fo r oil and gas, accounting for 38.4% of 
total registered investment; other important sectors for Vietnamese investment are activities in 
agriculture, forestry, and fisheries (15.3%), and telecommunications and information technology 
(12.8%). Main destinatio ns for Vietnamese investment include neighbouring Lao People's Democratic 
Republic (23.8%) and Cambodia (13.3%); other regional partners such as Myanmar (6.5%) and 
Malaysia (4.1%); and overseas partners such as the Russian Federation (13.7%), the Bolivaria n 
Republic of Venezuela (8.8%), Algeria (6.1%), Peru (6%), and the United States (3.4%).  
2.89.   By end -2019, Viet  Nam signed 67 bilateral investment agreements; 5 of them were signed 
during the review period. The recently ratified EVFTA is coupled with a single E uropean Union -
Viet Nam Investment Protection Agreement (EVIPA), which is expected to replace 21 bilateral 
investment agreements and is currently pending ratification by European Union countries. This 
agreement is aimed at implementing a permanent system fo r dispute resolution, as well as 
consultation and mediation mechanisms.  
2.90.   Foreign investment is also covered by provisions in recent FTAs signed by Viet  Nam and 
entered into force, such as the ASEAN -Hong Kong, China, FTA; the CPTPP; the VN -EAEU FTA; and 
the VKFTA (Section 2.3.2).  
2.91.   On 17 June 2020, a revised Enterprise Law (Law No.  59/2020/QH14) and a revised 
Investment Law (No. 61/2020 /QH14) were issued; both of them entered into force on 1 January 
 
74 Law No.  39/2019/QH14 on Public Investment.  
75 Outward investment projects below these thresholds do not require approval from the authorities  but 
should still request their outward investment registration.  WT/TPR/S/ 410 • Viet Nam  
 
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 2021. Some changes applied by the 2020 Investment Law include  the definition of foreign -invested 
companies as those where a foreign investor holds 50% or more of the charter capital (instead of 
51% until now), the classification of debt collection services as a banned business activity, the 
lowering of conditional b usiness sectors to 227 (instead of 243), and the increase in the number of 
activities which might benefit from investment incentives. The 2020 Enterprise Law increases the 
protection of minority shareholders and enhances the recognition of online business registrations.  
2.92.   Law No.  64/2020/QH14 on Investment in the Form on Public -Private Partnership, issued on 
18 June 2020, entered into force on 1 January 2021; it identifies five key areas for PPPs: 
(i) transport; (ii) electric grids and non -hydro power generation; (iii) water supply and waste 
collection systems; (iv) health, education, and training; and (v) information technology 
infrastructure. It prescribes a minimum value for projects of at least VND 200 billion 
(USD  8.5 million), and private investor s must contribute at least 15% of the total investment capital. 
Article  82 of the Law establishes a mechanism for sharing exceptionally high or low revenues for 
projects under a PPP.76  
 
76 The State is entitled to half of revenues above 125% of the expected revenue in the financial plan of 
the PPP project. In case of a significantly low revenue for a PPP project, the State wi ll share 50% of the loss 
revenue up to 75% of the expected revenue in the financial plan. Further details of this revenue sharing 
mechanism are to be announced by the Government.  WT/TPR/S/ 410 • Viet Nam  
 
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 3  TRADE POLICIES AND PRACTICES BY MEASURE  
3.1  Measures Directly Affecting Imports  
3.1.1   Customs procedures, valuation, and requirements   
3.1.1.1   Customs procedures  
3.1.  During the review period, Viet  Nam continued to reform its policies and measures on customs 
procedures based on its Customs Development Strategy to 2020 (Prime Minister's Decision 
No. 448/QD -TTg), issued on 25  March  2011. In accordance with the Strategy, a revised Customs 
Law (Law No. 54/2014/QH13), which aims to domesticate international treaties to which Viet  Nam 
is a party, was adopted on 23 June 2014, and entered into force on 1 January 2015. The Law is 
supplemented by regulations including: (i) Decree No. 08/2015/ND -CP (providing specific provisions 
and guidance on the enforcement of the Customs Law on customs procedures, examination, 
supervision, and control procedures), issued on 21 January 2015; (ii) Decree No.  59/2018/ND -CP 
(on amendments  to some articles of Decree No.  08/2015/ND -CP), issued on 20 April 2018; and (iii) 
Ministry of Finance (MOF) Circular No. 38/2015/TT -BTC (on customs procedures, customs 
supervision and inspection, export tax, import tax, and tax administration applied to e xported and 
imported goods), issued on 25 March 2015, which was amended and supplemented by MOF Circular 
No. 39/2018/TT -BTC (on prescribing inspection and verification of exported goods), issued on 20 
April 2018. The authorities state that the legal docume nts were formulated through, inter alia,  public 
consultations with relevant agencies, businesses, and people via written documents, website posts, 
and business associations.   
3.2.  The Customs Law stipulates, inter alia , customs management; goods permitted to b e imported, 
exported, or transited; and the organization and operation of customs services. The authorities state 
that, compared with the previous law, the revised Law created a legal basis for the application of 
risk management in all processes of customs  inspection and supervision, adopted post -inspection 
principles, expanded the application of information technology and modern equipment into 
professional activities, and adopted the National Single Window and the Association of Southeast 
Asian Nations (AS EAN) Single Window. They state that the Law and other relevant documents 
modernized customs management by, inter alia , using technological applications such as electronic 
customs clearance at all customs departments and branches, and allowing customs decla rations to 
be made 24 hours a day and 7 days a week.1  
3.3.  Through the reform, the authorities aim to: (i) simplify the customs dossier; (ii) provide 
transparent regulations on maximum time for post -customs clearance inspection and physical 
inspection of good s; (iii) conduct surveys and evaluation of management performance regularly; 
(iv) clarify the rights and obligations of customs declarants, organizations, and individuals 
concerned, as well as customs officers, the customs authority, and relevant agencies;  (v) create a 
mechanism to encourage legal compliance of customs declarants; and (vi) minimize direct contact 
between customs officers and customs declarants during the clearance process. They also consider 
that the reform will lead to customs officers' in creased awareness about the new customs 
management method.  
3.4.  The authorities consider that the uniform application of HS codes at the time of importation is 
ensured by using a List of Exports and Imports based on the HS Nomenclature of the World Customs 
Organization and the ASEAN Harmonized Tariff Nomenclature (AHTN), and a system of legislative 
documents on customs including the Customs Law.  
3.5.  On 6 April 2016, the Law on Export Tax and Import Tax (Law No. 107/2016/QH13) was 
adopted. The Law, which entered into  force on 1 September 2016, aimed, inter alia , to: (i) meet the 
implementation requirements on international commitments and treaties on import and export 
duties; (ii) amend the tax table and tax rates to suit the requirements of free trade agreements 
Viet Nam is a party to; (iii) encourage and protect domestic business activities and production; and 
(iv) contribute to the implementation of administrative reforms. The Law specifies each type of tax, 
 
1 Customs declarants must submit customs dossiers to customs offices as presc ribed in Clause 2, 
Article  16, of MOF Circular No. 38/2015/TT -BTC, and Clause 5, Article  1, of MOF Circular No.  39/2018/TT -BTC. 
The registration and channelling of declarations comply with Article  19 of MOF Circular No. 38/2015/TT -BTC 
and Clause 8, Article  1, of MOF Circular No. 39/2018/TT -BTC. WT/TPR/S/ 410 • Viet Nam  
 
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 including ad valorem  taxes, mixed taxes, and taxes on impo rted goods subject to tariff quotas.2 In 
accordance with the implementation of commitments to reduce export tax in the framework of a 
number of FTAs, the Law also stipulates that, for goods exported to a country, group of countries or 
territories that hav e preferential export tax agreements in their trade relations with Viet Nam, these 
agreements will be applied.  
3.6.  The authorities consider that the Law makes comprehensive reforms in terms of management 
methods and export and import tax policies regarding stability, openness, transparency, and 
favourable conditions for businesses, particularly in regard to tax calcula tion method and various 
types of taxes.  
3.7.  Under the Law, imported goods originating from a country, a group of countries, or territories 
that exercise most -favoured nation (MFN) treatment in trade relations with Viet  Nam or goods from 
non-tariff zones (e.g. export processing zones described in Section 3.2.4) imported into the domestic 
market that satisfy the rule of origin from a country, group of countries, or territories that exercise 
MFN treatment in trade relations with Viet  Nam are accorded "prefer ential tax rates" (i.e. applied 
MFN rates). Imported goods originating from a country, a group of countries, or  territories that have 
a preferential trade agreement with Viet  Nam or goods from non -tariff zones imported into the 
domestic market that satisfy  the rules of origin from a country, a group of countries, or territories 
that have a preferential trade agreement with Viet  Nam are accorded "special preferential tax rates". 
If neither preferential tax rates nor special preferential tax rates are applica ble, an ordinary tax rate, 
which is 150% of the preferential tax rate of each tariff line, will be applied. There are a number of 
tax exemptions.  
3.8.  Legislation continues to distinguish between import trading rights and the right to distribute 
imported goods within Viet  Nam. Full import trading rights have been granted to foreigners since 
1 January  2009. A foreign -invested company needs to have a certificate of investment registration 
as prescribed under the Law on Investment (Law No. 67/2014/QH13, issued on 2 6 November 2014, 
and entered into force on 1 July 2015) to engage in imports or exports (Section  2.4).3 Under Decree 
No. 09/2018/ND -CP (providing guidance on the Law on Commerce and the Law on Foreign Trade 
Management), issued on 15 January 2018, wholesal e distribution of imported goods  within Viet  Nam 
is allowed without a business licence, which is required for a foreign -invested enterprise to engage 
in retail distribution. Articles 3 and 23 of the Decree specify general criteria of an economic needs 
test for projects establishing FDI retail outlets. Foreign -invested enterprises are allowed to distribute 
lubricants (including petroleum -based lubricants) domestically if the enterprises meet the conditions 
specified in the Decree.4 Under Decree No. 116/2017 /ND-CP (on Business Requirements for 
Manufacturing, Assembly and Imports of Automobiles, Automobile Warranty and Maintenance 
Services, issued on 17  October  2017), importers of automobiles must hold a written certificate or 
document indicating that they are  authorized to represent foreign automobile producers so they can 
recall any defective automobiles exported to Viet  Nam, if necessary.5  
3.9.  Customs clearance documentation and procedures are implemented based on a circular of the 
MOF.6 According to the auth orities, Viet  Nam's customs procedures follow the revised Kyoto 
Convention and the process of timely domestication of international treaties of which Viet  Nam is a 
member. Under Article  29 of the Customs Law, a customs declaration must in principle be made  
electronically, but it may be made on paper as regulations prescribe. Electronic customs declaration 
and online tax payment can be made 24 hours a day, 7 days a week. For customs clearance, 
importers must submit and produce to customs offices documents as  prescribed in Clause 2, 
Article  16, of MOF Circular No. 38/2015/TT -BTC, amended and supplemented in Clause 5, Article  1, 
of MOF Circular No. 39/2018/TT -BTC; the documents include a declaration of imported goods, 
commercial invoices, and the bill of lading . The registration and channelling of declarations must 
 
2 Article 10 of the Law on Export Tax and Import Tax (No. 45/2005/QH11) provides that "(i) Tax rates 
on exported goods are specified for each item in the Export Tariff; and (ii) Tax rates on imported goods include 
the preferential tax rate, the special preferential tax rate and the ordinary tax rate".  
3 For a domestic company to engage in imports or exports, a business registration certificate or an 
enterprise registration certificate is required.  
4 Conditions include  that a foreign -invested business entity perform s one of following activities  in 
Viet Nam: manufacturing lubricants;  or manufacturing or distributing machinery, equipment, or goods using 
particular lubricants.  
5 WTO document G/TBT/N/VNM/116, 7 March 2018.  
6 These include MOF Circular No. 38/2015/TT -BTC, as amended and supplemented by MOF Circular 
No. 39/2018/TT -BTC.  WT/TPR/S/ 410 • Viet Nam  
 
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 comply with Article  19 of MOF Circular No. 38/2015/TT -BTC, amended and supplemented in Clause 
8, Article  1, of MOF Circular No. 39/2018/TT -BTC.  
3.10.   Customs units at all levels in Viet  Nam implement risk management. Under the 2014 Customs 
Law, risk management in customs operations includes: (i) collecting and processing customs 
information; (ii) building criteria and organizing the assessment of the customs declarants' legal 
compliance, and classifying the  level of risks; and (iii) organizing the implementation of appropriate 
customs management measures. Customs plans to carry out the classification of import and export 
goods based on the results of classification of the compliance level, the level of risk of the customs 
declarant, and the result of the classification of risk level in export and import activities, exit, entry, 
transit. Customs plans to apply a communication system that automatically integrates and processes 
data. Currently, the actual inspec tion flow rate nationwide is about 5%. The MOF issued Circular No. 
81/2019/TT -BTC (regulating risk management in customs operations, and publishing criteria for 
classification of compliance and risk level of customs declarants, as well as the results of su ch 
classification) on 18 November 2019. The authorities state that risk management basically follows 
the World Customs Organization's (WCO) recommendations on risk management.  
3.11.   Customs brokers require a business registration certificate or an enterprise reg istration 
certificate demonstrating that the operation is in good standing. Employees in charge of customs 
brokerage must be Vietnamese citizens.  
3.12.   Customs uses an automatic customs clearance and national single -window mechanism 
comprising: (i) an automatic  clearance system (Viet  Nam Automated Cargo Clearance System 
(VNACCS)); and (ii) a business information database system (Viet  Nam Customs Information 
System (VCIS)). The VNACCS focuses on three stages: before, during, and after customs clearance; 
it has ne w functions and procedures, such as tax -free list registration procedures, and procedures 
for general application of both commercial and non -commercial goods. Through the VNACCS and 
the single window, Customs sends information related to the licensing appl ication of the specialized 
agencies, and the licensing procedures will be conducted through the system; the VNACCS also 
connects with information systems of related parties such as those providing warehouse, port, 
service, forwarding, transportation, and b anking services. The VNACCS system may also process 
information before arrival/declaration. With a view to ensuring fast clearance of goods, consignments 
with questionable prices will be moved to the post -customs clearance stage for identification.  
3.13.   On 13 June 2019, the National Assembly approved the Law on Tax Administration (Law 
No. 38/2019/QH14), which entered into force on 1 July 2020. The Law replaces the Law on Tax 
Administration No. 78/2006/QH11, which was amended and supplemented by a number of arti cles 
under the Law on Tax Administration No. 21/2012/QH13 (Law No. 71/2014/QH13) and Law 
No. 106/2016/QH13.  
3.14.   Customs has the function and authority of implementing measures to control imports (and 
exports) related to patents, including inspection and superv ision to detect goods with signs of 
infringement and suspending customs procedures for export and import goods suspected of 
infringing on protected patents.   
3.15.   On 15 December 2015, Viet  Nam deposited at the WTO its instrument of acceptance of the 
Protocol of  Amendment to insert the WTO Trade Facilitation Agreement (TFA) into Annex 1A of the 
WTO Agreement. The authorities indicate that Viet  Nam is committed to implementing the TFA and 
has taken many steps in this regard. It notified its Category A, B, and C co mmitments to the WTO 
on 16 November 2018. Final implementation of all category commitments is scheduled for 2025.  
3.16.   Since 2016, the Government has put in place a number of directions and guidelines with a 
view to facilitating international trade. These incl ude Resolutions 19/NQ -CP in 2015, 2016, 2017, 
and 2018; Resolution 01/NQ -CP in 2019; and Resolutions 02/NQ -CP in 2019 and 2020, which set 
specific goals and assigned relevant ministries, branches, and agencies to implement solutions to 
achieve those goals.  The Prime Minister issued directions to reduce the clearance time for goods, 
and to reform specialized inspection to facilitate import and export businesses, such as Decision No. 
1254/QD -TTg in 2018 and Decision No. 1258/QD -TTg in 2020. Viet  Nam establish ed a National 
Steering Committee for the ASEAN Single Window, National Single Window, and Trade Facilitation WT/TPR/S/ 410 • Viet Nam  
 
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 in accordance with Prime Minister's Decision No.  1899/QD -TTg, issued on 4 October 2016.7 Since 
mid-2017, Viet  Nam has used the Viet  Nam Automated System for Seaport Customs Management 
(VASSCM) system, which is integrated into the National Single Window and the VNACCS/VCIS with 
a view to, inter alia , simplifying and harmonizing customs procedures with those of warehouses, 
yards, seaports, airports, a nd other related parties through IT systems developed by Customs.  
3.17.   Viet Nam issued advance rulings on commodity code classification, valuation, and origin of 
imported goods8, amending and supplementing a number of articles of MOF Circular 
No. 39/2015/TT -BTC, issued on 25 March 2015, prescribing the customs value of exported goods.  
3.18.   Viet Nam introduced various measures in response to the COVID -19 pandemic in the area of 
customs procedures and valuation. Customs enhanced the application of IT to customs clea rance 
and goods clearance in order to minimize direct contact between customs officers involved in goods 
import and export procedures. By August 2020, all core customs procedures were completely 
automated through the VNACCS/VCIS system, processing more tha n 99.6% of declarations. The 
authorities state that Customs directed the implementation of fast clearance of goods, especially aid 
goods, to fight the pandemic, and worked to reduce the number of cases in which samples are 
required for customs clearance; i t also reduced the rate of yellow and red channels. Regarding goods 
in transit or trans -shipment, customs procedures were simplified, for example, by not requiring 
supporting documents in some cases. Customs also simplified the renewal process for priority  
enterprises, submission of declarations, and inspections.  
3.19.   According to the World Bank, in 2019, Viet  Nam was ranked 104th (up from 108th in 2015) of 
190 economies in the ease of trading across borders.9 
3.1.1.2   Customs valuation  
3.20.   Article  86 of the Customs Law con stitutes the basic legal provisions for customs; it stipulates 
the transaction value as the principal method of customs valuation, and provides for alternative 
valuation methods, which are stipulated in MOF Circular No. 39/2015/TT -BTC (on Customs Value of 
Imported Goods and Exported Goods), issued on 25 March 2015, and MOF Circular No. 60/2019/TT -
BTC (amending a number of articles of MOF Circular No.  39/2015/TT -BTC), issued on 
30 August  2019.  
3.21.   Pursuant to the provisions of MOF Circular No. 60/2019/TT -BTC, i ssued on 30 August 2019 
(amending and supplementing a number of articles of MOF Circular No. 39/2015/TT -BTC (regulating 
the customs value of exported goods), issued on 25 March 2015), the Director of the General 
Department of Customs shall promulgate the r egulation on exploitation, construction, management, 
operation, and use of the customs value database and customs value treatment. The database may 
be used only internally within Customs.  
3.22.   According to the authorities, customs valuation in Viet  Nam complie s with the standards set 
in the WTO Customs Valuation Agreement.   
3.23.   Decree No. 127/2013/ND -CP (on penalties for administrative violations), issued on 
15 October  2013, stipulates sanctions (e.g. fines) related to , inter alia,  violations of regulations on 
customs declaration and the enforcement of administrative decisions in the customs domain. It was 
amended and supplemented by Decree No. 45/2016/ND -CP, issued on 26 May 2016. Under the 
Decrees, sanctions include: (i)  a fine up to VND 40,000,000 in the case of violating the regulations 
on customs declaration (Article  7); (ii)  a fine of up to 20% of the underpaid tax amount or the 
 
7 The Committee is an interdisciplinary coordination organization assisting the Prime Minister in 
directing, coordinating, guiding, inspecting, and organizing the implementation of the ASEAN Single Window 
and the National Single Window. As at 15 December 20 20, 207 administrative procedures of 13 ministries and 
agencies officially implemented the National Single Window, with more than 3.5 million records of more than 
43,460 enterprises. The ASEAN Single Window was officially implemented on 1 January 2018.  
8 Decree No. 59/2018/ND -CP, issued on 20 April 2018, MOF Circular No. 39/2018/TT -BTC, issued on 
20 April 2018, and MOF Circular No. 60/2019/TT -BTC, issued on 30 August 2019. Since then, Viet  Nam has 
officially connected the ASEAN Single Window to exchange ori gin certification information with nine ASEAN 
countries. The number of C/O received by Viet  Nam from other ASEAN countries totalled 247,858 and the 
number of C/O sent by Viet  Nam to other ASEAN countries totalled 313,859.  
9 World Bank, Ease of Doing Busin ess Rankings . Viewed at: 
https://www.doingbusiness.org/en/rankings .  WT/TPR/S/ 410 • Viet Nam  
 
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 exempted, reduced, refunded, or non -collected tax amount higher than the tax law provisions in the 
case of violating the regulations o n tax declaration (Article  8); and (iii)  other penalties for tax 
evasion or tax fraud (Article  13). 
3.24.   A disputed valuation decision may be appealed by an importer pursuant to Article  1 of the 
2011 Law on Complaints and Degree 08/2015/ND -CP, issued on 21 Janu ary 2015, or the importer 
can initiate an administrative lawsuit in accordance with Article  30 of the 2014 Law on Administrative 
Procedures. The matter may be taken to a higher administrative body or a case may be brought 
before the Administrative Court.  
3.25.   Viet Nam has not filed any notifications regarding customs valuations to the WTO.  
3.26.   Viet Nam has no regulations on requirements concerning pre -shipment requirements.  
3.1.2   Rules of origin  
3.27.   Viet Nam applies both non -preferential and preferential rules of origin.  
3.28.   Since its previous Review, Viet  Nam has issued various legal documents concerning rules of 
origin including: Decree No. 31/2018/ND -CP (detailing a number of articles of the Law on Fo reign 
Trade Management in terms of origin of goods), issued on 8 March 2018; and Ministry of Industry 
and Trade (MOIT) Circular No. 05/2018/TT -BCT (on origin of goods) (Table A3.1).10  
3.29.   Decree No. 31/2018/ND -CP stipulates, for example: the introduction of s elf-certification of 
origin; application and issuance of certificates of origin or other relevant documents; the procedure 
for issuing certificates of origin or other relevant documents in combination with applicant 
classification; strengthening post -inspe ction and combating fraudulent origin of goods; and how to 
handle violations of the rules of origin. Under the Decree, preferential rules of origin are applied in 
accordance with MOIT guidelines on rules of origin and international treaties or agreements t o which 
Viet Nam is a party. MOIT Circular No. 05/2018/TT -BCT stipulates non -preferential product origin 
criteria in the case of goods not wholly obtained or produced in Viet Nam.  
3.30.   Viet Nam implements ASEAN preferential rules of origin. Importers are requi red to submit 
certificates of origin either satisfying the wholly obtained criterion or proving a minimum 40% 
cumulative origin of goods from ASEAN members for goods imported under the ASEAN Trade in 
Goods Agreement. ASEAN free trade agreements with other partners such as Australia -New Zealand, 
Chile, China, the Eurasian Economic Union, India, and the Republic of Korea are also based on the 
wholly obtained criterion or substantial transformation involving a change in tariff heading, and 
allowing for regiona l cumulative origin.11 Specific rules may apply particularly to minimal operations 
and processes; accessories, spare parts, and tools; identical and interchangeable materials; the 
treatment of packaging materials and containers; and indirect materials.12  
3.31.   The MOIT is the competent authority for issuing certificates of origin. It also authorizes the 
management boards of industrial zones (including export processing zones) to issue certificates of 
origin, and the Chamber of Commerce and Industry of Viet  Nam t o issue preferential certificates of 
origin under the GSP of foreign countries that grant non -preferential certificates of origin for 
Viet Nam.  
 
10 Other relevant documents include MOF Circular No. 205/2010/TT -BTC, issued on 15 December 2010, 
which guides Decree No. 40/2007/ ND-CP, issued on 16 March 2007, which defines customs value 
determination for imports and exports.  
11 The ASEAN agreements with Australia -New Zealand, China, and the Republic of Korea stipulate a 
general minimum regional value content of 40%; with India, the minimum is 35%. Some agreements also 
have product -specific rules, e.g. the FTA with the Republic o f Korea contains product -specific rules for 447 
tariff lines at the HS 6 -digit level. Notably for processed shrimps and crabs, the regional value content must be 
not less than 35% of the f.o.b. value of the goods.   
12 Viet Nam notified the preferential rul es of origin applicable in the ASEAN FTAs with Australia -
New Zealand and India to the WTO Committee on Rules of Origin (WTO document G/RO/N/68 , 
23 February  2011).  WT/TPR/S/ 410 • Viet Nam  
 
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 3.32.   During the review period, Viet  Nam made no new notifications to the WTO.13 
3.1.3   Tariffs  
3.33.   Viet Nam's tariffs are established by the Standing Committee of the National Assembly in the 
form of statutory rates at the 4 -digit HS level, which constitute duty bands within which the 
Government fixes the applied duty rates. Within these bands, the customs tariff is generally  issued 
annually in the form of an MOF circular. All of Viet  Nam's tariffs are bound. Since 1  September 2016, 
export and import taxes have been issued in accordance with Articles 10 and 11 of the Law on Export 
Tax and Import Tax (Law No. 107/2016/QH13).  
3.34.   According to the authorities, Viet  Nam fully implemented its tariff concessions in 2019; its 
final bound rates average 14.7% for all goods. Most tariff lines were initially bound in the 0% -40% 
range, with peaks in the initial bound rates for "sensitive" ite ms such as sugar (100%), wines and 
spirits (65%), tobacco (80% -150%), and motor vehicles (100%). Viet  Nam is a party to the 
plurilateral Information Technology Agreement, with zero duty on such goods applied.  
3.35.   Viet Nam bound all of its tariff lines at ad valorem  rates, with the exception of 15 tariff lines 
applied to second -hand motor vehicles (HS 8703), which are bound at the lower of a compound rate 
(150% + USD 15,000) or 200% ad valorem . It reserved the right to apply specific or compound 
import duties o n certain "sensitive" goods to address customs fraud. So far, this has not proven 
necessary. Currently, only second -hand motor vehicles are subject to applied non -ad valorem  rates. 
The non -ad valorem  rate for imported used cars is specified in Appendix III  to Decree No. 
57/2020/ND -CP, issued on 25 May 2020.  
3.36.   Viet Nam's tariff applied in 2020 follows the AHTN, based on the HS17 nomenclature.14 The 
Customs Tariff contains 10,813 tariff lines at the HS 8 -digit level. The simple average applied MFN 
rate for all  goods is 11.9%, compared with 10.4% in 2013 (Table  3.1 and Chart 3.1); 18 .1% for 
agricultural goods; and 10.9% for non -agricultural products (WTO definition). The main reason for 
the increase in the overall tariff average is due to the change from the HS1 2 to the HS17 
nomenclature and the splitting of several tariff lines, mainly in the "transport equipment section (HS 
Section 17)". The highest tariffs include: 135% for five tariff lines concerning cigarettes (HS 2402.20 
and 2402.90); 100% for two tariff l ines concerning certain tobacco products such as cigars, cheroots, 
and cigarillos (HS 2402.10); and worn clothing and other worn articles (HS 6309.00) (Table  A3.2 
and Chart 3.2).  
Table 3.1 Tariff structure, 2 013 and 2020  
(%, unless otherwise indicated)  
 MFN applied  Final bounda 2013 2020 
Bound tariff lines (% of all tariff lines)  100.0  100.0  100.0  
Simple average rate  10.4 11.9  
(12.0)  14.7 
 Agricultural products (HS 01 -24) 17.4 17.8  
(18.6)  20.4 
 Industrial products (HS 25 -97) 9.0 10.7 13.6 
 WTO agricultural products  17.4 18.1  
(19.1)  20.0 
 WTO non -agricultural products  9.3 10.9  
(11.0)  13.9 
Duty-free tariff lines (% of all tariff lines)  32.9 29.2 12.7 
Simple average rate of dutiable lines only  15.6 16.9  
(17.1)  16.9 
Tariff quotas (% of all tariff lines)  .. 0.3 0.3 
 
13 Viet Nam's notifications to date are found in WTO documents G/RO/N/68, 22 February 2011, a nd 
G/RO/N/79, 1 June 2012.  
14 Viet Nam's Customs Tariff establishes three categories of import duty rates: (i) the "preferential rate", 
i.e. the MFN rate of duty generally applicable to WTO Members; (ii) "special preferential rates" applicable 
according to Viet Nam's preferential trade regimes; and (iii) the "ordinary" rate of customs duty. The ordinary 
duty, which is 1.5 times the MFN rate, is applied on trade with non -WTO Members (unless MFN treatment was 
agreed bilaterally).  WT/TPR/S/ 410 • Viet Nam  
 
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  MFN applied  Final bounda 2013 2020 
Non-ad valorem  tariffs (% of all tariff lines)  0.0 0.0 0.2 
Domestic tariff "peaks" (% of all tariff lines)b 4.1 4.8  
(5.0) 4.4 
International tariff "peaks" (% of all tariff lines)c 25.6 28.4 34.8 
Overall standard deviation of tariff rates  12.5 14.5  
(14.9)  16.7 
Coefficient of variation of tariff rates  1.2 1.2 1.1 
Nuisance applied rates (% of all tariff lines)d 0.6 1.0 0.9 
Total number of tariff lines  9,566 10,813  8,025  
 Ad valorem  rates 6,337  7,429  6,994  
 Duty free  3,142  3,154  1,016  
 Alternate rates  0 0 15 
 Othere 87 230 0 
.. Not available.  
a Final bound rates are taken from the CTS database. The final bound schedule is based on HS12 
nomenclature at the 8 -digit level.  
b Domestic tariff peaks are defined as those exceeding three times the overall average applied rate.  
c International tariff pea ks are defined as those exceeding 15%.  
d Nuisance rates are those greater than zero, but less than or equal to 2%.  
e Other duties include those based on special instruction as provided under Chapter 98; all tariff lines 
concerned are under Chapter 87 (moto r vehicles).  
Note:  2013 tariff rates are based on HS12,  and 2020 on HS17 . Calculations for averages are based on 
national tariff line level (8 -digit). Tariff calculations for 2013 are based on in -quota rates, as no 
out-of-quota rates were available; tariff calculations based on in -quota rates are shown for 2020 for 
comparison. In 2020, figures in brackets refer to data including out -of-quota rates and excluding 
in-quota rates.  
Source:  WTO Secretariat calculations, based on data provided by the authorities.  
3.37.   In response to the outbreak of the COVID -19 pandemic, Viet  Nam temporarily eliminated 
applied MFN tariffs on medical and certain personal protective equipment (HS Chapters 38 -39, 56, 
60, 62 -63, 72 -73, and 76) on 7 February 2020 .15 On that date, the Prime Minister's Official Letter 
No. 197/TTg -KTTH was issued, approving the exemption of import tax for medical masks, antiseptic 
hand sanitizer, raw materials for export, water -based antiseptic, and materials and other necessary 
equipment for the prevention and control of acute respiratory infections caused by COVID -19. 
Following the Official Letter, the Minister of Finance issued Decision No. 155/QD -BTC on 
7 February  2020, which covered the same items. Other relevant documents includ e Decision No. 
436/QD -BTC of the Minister of Finance, issued on 27 March 2020, on the addition of goods exempted 
from import tariff in the list of goods exempted from import duty, against the epidemic of acute 
respiratory infections caused by COVID -19, and  Decision No. 2138/QD -BTC of the Minister of 
Finance, issued on 18 December 2020, on the issuance of the list of accessories imported for the 
manufacture of oxygen respirators that are exempt from import tax for COVID -19 epidemic 
prevention and control. Ac cording to the authorities, Viet  Nam did not impose any provisional import 
duties during the review period.  
 
15 Tariffs were eliminated on HS 3808.94.20; 3808.94.90; 3916.10.20; 3916.20.20; 3916.90.42; 
3916.90.92; 3926.90.99; 5603; 5604.10.00; 5606.00.00; 6002.40.00; 6002.90.00; 6210.10.90; 6307.90.40; 
6307.90.90; 7217.90.90; 7326.90.99; 7604.10.10; 7604.29.10; and 7616.99.90.  WT/TPR/S/ 410 • Viet Nam  
 
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 Chart 3.1 Average applied MFN rates, by HS section, 2013 and 2020  
 
Note:  The 2013 tariff is based on  HS12 nomenclature; the 2020 tariff is based on HS17. Excluding 87 and 
230 tariff lines under HS section 17, respectively, in 2013 and 2020. Calculations exclude out -of-
quota rates and include in -quota rates. The bars in red under HS Sections 1, 4, and 5 s how 2020 
averages including out -of-quota rates and excluding in -quota rates. In this scenario the overall 
average is 12.0%.  
Source:  WTO Secretariat calculations, based on data provided by the authorities.  
3.38.   The difference between bound and applied MFN rates leaves some scope for flexibility in 
Viet Nam's tariff policy.16 The gap between the simple average applied MFN rate and the average 
bound rate is 2.8 percentage points in 2020.17 Nineteen tariff lines had higher applied rates (entirely 
or partially) than their corresponding bound rates (Table A3.3).18 The authorities state that Viet  Nam 
has implemented tariff reductions each year based on the AHTN conversion table since joining the 
WTO, and if taking into account the amendments of the AHTN, eight of the ni ne lines indicated above 
were within the corresponding bound rates, and the applied MNF rate on one line (HS 4804.39.90) 
exceeded the corresponding bound rate.19  
3.39.   Viet Nam accords tariff preferences under regional and bilateral preferential trade agreement s 
to its ASEAN partners, Australia and New Zealand, Chile, China, the Eurasian Economic Union, India, 
Japan, and the Republic of Korea (Table 3.2).  
 
16 The differenc e between the bound and applied MFN rate was 5 percentage points or more, for some 
2,600  tariff lines in 20 20 (comparison is difficult as applied MFN and bound schedules are not in the same 
nomenclature).  
17 Comparison is difficult as applied MFN and bound  schedules are not in the same nomenclature.  
18 There could be more, as many lines are not possible to compare between applied MFN and bound.  
19 According to the authorities, when Viet  Nam joined the WTO, its tariff commitments were based on 
the 2002 ASEAN Harmonized Tariff Nomenclature (AHTN 2002). To date, the AHTN 2002 has been amended 
three times (in 2007, 2012, and 2017). The amendments changed some product codes and group/subgroup 
classifications due to the merging/splitting of tariff lines.  
0%5%10%15%20%25%30%35%
123456789101112131415161718192021Chart 3.[VNM]  Average applied MFN, by HS section, 2013 and 2020
01   Live animals & products        
02   Vegetable products
03   Fats & oils      
04   Prepared food, beverages
05   Mineral products
06   Chemicals & products07   Plastic & rubber
08   Hides & skins
09   Wood & articles
10   Pulp, paper, etc.
11   Textiles & articles
12   Footwear, headgear13   Articles of stones
14   Precious stones, etc.
15   Base metals & products
16   Machinery
17   Transport equipment
18   Precision instruments19   Arms & ammunition
20   Miscellaneous manufacturing
21   Works of art, etc.MFN 2020
Note:  The 2013 tariff is based on HS12 nomenclature; the 2020 tariff is based on HS17.  Excluding 87 and 230 tariff lines
under HS section 17, respectively, in 2013 and 2020.   Calculations exclude out -of quota rates and include in -quota
rates.  The bars in red under HS Sections 1, 4, and 5 show 2020 averages including out -of quota rates and 
excluding in -quota rates. In this scenario the overall average is 12.0%.
Source:  WTO Secretariat calculations , based on data provided by the authorities.MFN 2013
MFN average 2020: 11.9%
MFN average 2013: 10.4%WT/TPR/S/ 410 • Viet Nam  
 
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 Table 3.2 Summary analysis of the preferential tariff, 2020  
 
Total  WTO agriculture  WTO non -
agriculture  
  Average 
(%) Range 
(%) Coveragea 
(%) Duty -
free 
ratesb 
(%) Average 
(%) Duty -
free 
ratesb 
(%) Average 
(%) Duty -
free 
ratesb 
(%) 
MFN 12.0 0-135  
29.2 19.1 11.8 11.0 31.7 
ASEAN Trade in Goods 
Agreement (ATIGA)  0.5 0-135 67.6 96.3 2.3 93.4 0.2 96.8 
ASEAN -Australia -
New Zealand FTA 
(AANZFTA)  2.7 0-135 63.5 87.5 4.5 89.7 2.4 87.2 
ASEAN -China FTA 
(ACFTA)  2.6 0-100 64.9 86.2 2.3 93.7 2.6 85.2 
ASEAN -Hong Kong, 
China FTA (AHKFTA)  10.3 0-135 43.5 30.1 16.0 12.5 9.4 32.6 
ASEAN -India FTA 
(AIFTA)  6.4 0-135 47.6 63.3 6.3 71.9 6.4 62.0 
ASEAN -Japan 
Comprehensive 
Economic Partnership 
(AJCEP)  5.1 0-135 59.2 61.5 7.5 42.0 4.7 64.3 
ASEAN -Korea FTA 
(AKFTA)  4.5 0-135 55.6 82.8 4.4 92.0 4.5 81.5 
Viet Nam-Chile FTA 
(VCFTA)  6.8 0-135 47.4 34.3 12.1 16.6 6.1 36.9 
Viet Nam-Japan 
Economic Partnership 
Agreement (VJEPA)  4.5 0-135 60.5 74.3 7.7 50.0 4.1 77.8 
Viet Nam-Korea FTA 
(VKFTA)  4.1 0-135 59.4 83.8 4.4 91.6 4.0 82.7 
Viet Nam-Eurasian 
Economic Union FTA 
(VEAEUFTA)  4.0 0-135 61.6 78.5 7.3 68.7 3.5 79.9 
Comprehensive 
Progressive 
Agreement for Trans -
Pacific Partnership 
(CPTPP)  4.6 0-109.6  65.5 63.9 9.2 35.3 3.9 68.0 
a Percentage of total lines. Only rates that are lower than the corresponding MFN rate are taken into 
account.  
b Duty-free lines as a percentage of total tariff lines.  
Note:  Calculations for preferential rates are based on the 2020 MFN tariff schedule; the lower preferential 
rate replaces with the co rresponding applied MFN rate at the national 8 -digit level. In case the 
preferential rate is higher than the corresponding MFN applied rate, the latter is used for the 
calculations. Calculations exclude in -quota tariff rates and include out -of-quota rates.  
Source:  WTO Secretariat calculations, based on data provided by the authorities.  WT/TPR/S/ 410 • Viet Nam  
 
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 Chart 3.2 Distribution of MFN tariff rates, 2013 and 2020  
 
Note:  The 2013 tariff is based on HS12 nomenclature; the 2020 tariff is based on HS17. Figures above the 
bars refer to the percentage of total lines. Totals do not add up to 100%. No rates were available for 
87 and 230 tariff lines in 2014 and 2020, respectively. Figures include in -quota and exclude out -of-
quota rate s. Figures in brackets for 2020, include out -of-quota and exclude in -quota rates . 
Source:  WTO Secretariat calculations, based on data provided by the authorities.  
3.40.   Viet Nam has tariff quotas for imports of eggs, sugar cane, tobacco, and salt, as prescribed 
in Appendix IV to Decree No. 57/2020/ND -CP and Article  11 of MOIT Circular No. 12/2018/TT -BCT 
(on detailing a number of articles of the Law on Foreign Trade Management), issued on 
15 June 2018. According to the country's Goods Schedule, quota vo lumes must increase by 5% 
annually for goods subject to tariff quotas (Table  3.3).  
Table 3.3 Tariff quotas, 2016 -19  
Product/HS 
code  TQ in 
2016  TQ in 
2017 TRQ in 
2018 TRQ in 
2019 In-
quota 
tariff 
rate 
(%) Out-
of-
quota 
tariff 
rate 
(%) Import 
volume 
2019 Administration 
method  
Eggs  
04072100 
04072910 
04072990 
04079010  
04079020  
04079090  48,620  
dozen  50,051  
dozen   52,553  
dozen  55,181  
dozen  40 80 0 Past performance  
Sugar ca ne 
 
 
 85,000  
tonnes  89,500  
tonnes   94,000  
tonnes  98,700  
tonnes    26,000 
tonnes  Allocated to end 
users based on 
past 
performance; 
portion of TQ 
allocated to new 
importers  
17011200      25 80   
17011300      25 80   
17011400      25 80   
17019100      40 100   
17019910      40 85   
17019990      40 85   
32.9
17.8
11.211.6 12.2
5.7
3.7 3.1
1.029.2 
17.9
10.911.6
(11.5)13.2
5.4
3.8
(3.7)3.5 2.4
(2.7)
05001,0001,5002,0002,5003,0003,500
Duty free >0%-5% >5%-10% >10%-15% >15%-20% >20%-25% >25%-30% >30%-60% >60%Number of tariff linesChart 3.[VNM]  Distribution of MFN tariff rates, 2013 and 2020
MFN 2013
Total number of lines:  9,558
MFN 2020
Total number of lines: 10,813
Note:  The 2013 tariff is based on HS12 nomenclature; the 2020 tariff is based on HS17.  Figures above the bars refer to the percentage 
of total lines. Totals do no add up to 100%.  No rates were available for 87 and 230 tariff lines in 2014 and 2020, re spectively.
Figures include in -quota and exclude out of quota rates. Figures in brackets for 2020, include out -of quota and 
exclude in -quota rates
Source:  WTO Secretariat calculations, based on data provided by the authorities.WT/TPR/S/ 410 • Viet Nam  
 
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 Product/HS 
code  TQ in 
2016  TQ in 
2017 TRQ in 
2018 TRQ in 
2019 In-
quota 
tariff 
rate 
(%) Out-
of-
quota 
tariff 
rate 
(%) Import 
volume 
2019 Administration 
method  
Tobacco  
 48,620  
tonnes  51,051  
tonnes  53,604  
tonnes  56,284  
tonnes    37,147  
tonnes  Past 
performance; 
quotas allocated 
to end users who 
have cigarette -
producing 
permits  
24011010      30 80   
24011020      30 90   
24011040      30 80   
24011050      30 80   
24011090      30 90   
24012010      30 80   
24012020      30 90   
24012030      30 90   
24012040      30 80   
24012050      30 80   
24012090      30 90   
24013010      15 80   
24013090      30 90   
Salt 
 102,000 
tonnes  102,000 
tonnes  110,000 
tonnes  110,000 
tonnes    60,000  
tonnes  Past performance  
25010010      30 60   
25010020      30 60   
25010050      15 50   
25010091      15 50   
25010092      15 50   
25010099      15 50   
Source:  WTO document G/AG/N/VNM/ 12, 12 May 2020 ; MOIT Circular No.  12/2018 /TT-BCT, 15 June 2018; 
and information provided by the authorities.  
3.41.   Tariff quotas for eggs, refined and raw sugar, and salt are decided by the Ministry of 
Agriculture and Rural Development (MARD). Tariff quotas for unmanufactured t obacco are decided 
by the MOIT, which announces annual import tariff quotas and decides on methods for managing 
imports of each commodity. Tariff rates for goods subject to tariff quotas are specified in Appendix 
IV to Decree No. 57/2020/ND -CP specifying t he list of goods and the rates of out -of-quota import 
taxes with respect to the goods subject to the tariff quotas, including eggs, sugar, tobacco, and salt.  
3.42.   Quotas for salt are allocated to traders that wish to use it for manufacture, as confirmed by a 
competent regulatory authority. Quotas for poultry eggs are allocated to traders that wish to import 
them. Quotas for refined and raw sugar are allocated based on annual MOIT guidelines in 
consultation with the MARD and the MOF. Quotas for unmanufactured to bacco are allocated to 
traders that have been issued a licence by the MOIT to manufacture cigarettes using imported 
unmanufactured tobacco. Auctioning is not used to allocate the quotas. Allocated quotas are not 
transferrable.  According to the authorities no imports of eggs is due to a lack of demand.  
3.43.   Viet Nam also has tariff quotas for preferential imports of rice, paddy, and unmanufactured 
tobacco from Cambodia and Lao People's Democratic Republic in accordance with bilateral 
memoranda concluded in 2005 (Lao People's Democratic Republic) and 2007 (Cambodia). In -quota 
volumes are subject to 0% import duty. The tariff quotas, which are announced by the MOIT, may 
be stipulated for one or two years at a time. Currently, for Cambodia, quota volume is 300,000 
tonnes of rice equivalent20 and 3,000 tonnes of unmanufactured tobacco each year for 2019 and 
2020, and for Lao People's Democratic Republic, quota volume is 70,000 tonnes of rice equivalent 
and 3,000 tonnes of unmanufactured tobacco each year for 2018 and 2019.  
3.44.   Viet Nam exempts various goods from customs duties. Exemptions have been granted 
pursuant to the Law on Export Tax and Import Tax and Articles 10 and 12 of Decree 
No. 134/2016/ND -CP (guidelines for the Law on Export Tax and Import Tax) since their i ssuance on 
 
20 Two kg of paddy is considered equivalent to 1  kg of rice.  WT/TPR/S/ 410 • Viet Nam  
 
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 1 September 2016.21 Under Article  16 of the Law, import duty exemptions are extended, inter alia,  
to: raw materials, supplies and components imported for export production; goods temporarily 
imported for re -export; certain goods and fixed assets  imported for projects entitled to investment 
incentives; certain goods imported to serve petroleum activities; and imported goods related to 
information and technology, the environment, and education. Tariff exemption also extends to 
certain goods, which are bought, sold, or exchanged across the border by border residents within 
allowable quotas.22 Appendix V to Decree No. 134/2016/ND -CP on duty -free quotas for goods traded 
and exchanged by border residents stipulates that goods purchased by Vietnamese residents with a 
permanent household registration in the border areas, and who hold a residence pe rmit from the 
police station of the border province, are exempt from tax, with a customs value not exceeding VND 
2 million per person per daily transaction and no more than four daily transactions per month. Other 
charges affecting imports. Under Article  18 of the Law, tax reductions apply to imports (and exports) 
that are damaged or lost under customs supervision and the damage or loss is verified by a 
competent organization.23 Under Article  19, import duties are refunded if, inter alia : (i) a duty payer 
that has paid an import duty has to re -export the imported goods; (ii) a duty payer has paid a duty 
for goods imported for production or business activities but later uses these goods for export 
production and exports such products; or (iii) a duty payer ha s paid a duty for certain machinery, 
equipment, tools, or vehicles belonging to an organization or individual that is licensed to conduct 
temporary import for re -export. The refundable amount of import duty is determined based on the 
residual value of the re-exported goods calculated based on the period of their use in Viet  Nam. The 
Government will not refund an amount that is lower than the prescribed minimum.  
3.1.4   Other charges affecting imports  
3.45.   Imports are subject to customs fees in accordance with the Law o n Fees and Charges (Law 
No. 97/2015/QH13, issued on 25 November 2015, and entered into force on 1 January 2017). On 
14 November 2016, the MOF issued Circular No. 274/2016/TT -BTC stipulating the rates, collection, 
payment, management, and use of customs fee s and fees for transit goods and vehicles. 
Accordingly, the customs fee to register a declaration is VND 20,000; the customs fee for inspection, 
supervision, or temporary suspension of customs procedures for export or import goods subject to 
intellectual p roperty protection is VND 200,000.  
3.46.   Customs fees have been exempted for humanitarian goods and non -refundable aid; gifts for 
state agencies, political organizations, socio -political organizations, social organizations, 
socio-professional organizations, peop le's armed forces units and individuals (exempt from tax 
within the norm, according to the relevant law); gifts for humanitarian or charity purposes; personal 
belongings of foreign organizations and individuals according to diplomatic immunity regulations;  
carry-on luggage; and postal letters and parcels.24 Article  3 of MOF Circular No. 274/2016/TT -BTC 
introduces additional customs fee exemptions in such cases as: (i) imported and exported goods 
sent via express mail with a value of VND 1 million or less or  with a tax amount (prescribed taxes) 
payable of under VND 100,000; (ii) imported and exported goods with a customs value of under 
VND 500,000 or a total payable tax amount (prescribed taxes) of under VND 50,000 for each export 
or import; and (iii) goods t raded or exchanged by border residents within the prescribed norms.  
3.47.   Article  5 of MOIT Circular No. 274/2016/TT -BCT stipulates regulations concerning the 
declaration and payment of charges (they were not regulated under MOF Circular No.  172/2010/TT -
BTC of 2 November 2010). According to the Article, for example, goods temporarily imported for re -
export or temporarily exported for re -import are charged fees when carrying out import or export 
 
21 Before 1 September 2016, Article  12 of Decree No. 87/2010/ND -CP (detailing the implementation of a 
number of articles of the Law on Export and Import Tax), issued on 13 August 2010, was the basis of tari ff 
exemptions.  
22 Border trade activities are regulated by: the Law on Foreign Trade Administration; Decree 
No. 14/2018/ND -CP (providing detailed guidelines on border trade activities), issued on 23 January 2018; 
MOIT Circular No. 01/2018/TT -BCT (detailing goods traded or exchanged by traders through sub -border gates 
and border crossings), issued on 27 February 2018; and MOIT Circular No. 02/2018/TT -BCT (providing detailed 
guidelines on the list of goods traded or exchanged by border residents), issued on 27  February 2018. They are 
also regulated under the Border Trade Agreement between the Government of the Socialist Republic of 
Viet Nam and the Government of the People's Republic of China concluded on 12 December 2016, as well as 
border trade agreements wit h Cambodia and Lao People's Democratic Republic.  
23 Before 1 September 2016, Article  14 of Decree No. 87/2010/ND -CP was the basis for tariff reductions.  
24 This exemption is stipulated in Article  3 of MOF Circular No. 274/2016/TT -BTC; it was previously 
stipulated in MOF Circular No. 172/2010/TT -BTC, issued on 2 November 2010.  WT/TPR/S/ 410 • Viet Nam  
 
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 procedures; goods deposited in bonded warehouses are charged for cus toms clearance during the 
warehousing procedures. For goods in transit, a declaration fee is collected during entry procedures 
at the import border gate.  
3.48.   In its Goods Schedule, Viet  Nam bound other duties and charges (pursuant to Article  II:1(b) 
of the GA TT 1994) at zero, and it does not apply taxes and fees other than tariffs on imported goods.  
3.49.   Viet Nam levies excise taxes on certain goods and services pursuant to the Law on Excise Tax 
No. 27/2008/QH12, which entered into force on 1 January 2009 and was a mended twice – in 2014 
(Law No. 70/2014/QH13) and in 2016 (Law No. 106/2016/QH13) (Table 3.4). No distinction is made 
between domestically produced and imported goods; excise tax is levied on the import -duty-
inclusive price for imports on a c.i.f. basis. T he taxable price of goods or services is the selling price 
or service provision price excluding environmental protection tax and value -added tax (VAT).  
Table 3.4 Goods and services subject to the excise tax, 2 019 
No. Description of good or service  Tax rate (%)  
I. Goods  
1. Cigarettes, cigars  and other products derived from tobacco plants  75 
2.  Alcohol   
  (a) Alcohol from 20° 65 
  (b) Alcohol less than 2 0° 35 
3 Beer 65 
4. Motor vehicles   
 (a) Motor vehicles for the transport of not more than nine people, except for 
those specified in Point 4dd, 4e, and 4g of this Schedule   
 Of a cylinder capacity of 1,500  cm3 or less  35 
 Of a cylinder capacity exceeding 1,500  cm3 but not exceeding 2,000 cm3  40 
 Of a cylinder capacity exceeding 2,000 cm3 but not exceeding 2,5 00 cm3 50 
 Of a cylinder capacity exceeding 2,500 cm3 but not exceeding 3,0 00 cm3 60 
 Of a cylinder capacity exceeding 3,0 00 cm3 but not exceeding 4,0 00 cm3 90 
 Of a cylinder capacity exceeding 4,0 00 cm3 but not exceeding 5,0 00 cm3 110 
 Of a cylinder capacity exceeding 5,0 00 cm3 but not exceeding 6,0 00 cm3 130 
 Of a cylinder capacity exceeding 6,0 00 cm3 150 
 (b) Motor vehicles of 10 to 1 5 seats (except those indicated in Points 4 dd, 4e, 
and 4g) 15 
 (c) Motor vehicles of 16 to 2 3 seats (except those indicated in Points 4dd, 4e, 
and 4g) 10 
 (d) Motor vehicles served for both purposes of carrying passengers and goods 
(except those indicated in Points 4 dd, 4e, and 4g)  
 Of a cylinder capacity not exceeding 2,5 00 cm3 15 
 Of a cylinder capacity exceeding 2,500 cm3 but not exceeding 3,0 00 cm3 20 
 Of a cylinder capacity exceeding 3,0 00 cm3 25 
 (dd) Motor vehicles running on both gasoline and electricity or bio -energy, the 
proportion of gasoline consumption does not exceed 70% of total energy used  Equal to 70% of amount 
of tax applied for the 
same type of vehicles 
indicated in Points 4a, 
4b, 4c, and 4d  
 (e) Motor vehicles running on bio -energy   Equal to 50% of amount 
of tax applied for the 
same type of vehicles 
indicated in Points 4a, 
4b, 4c, and 4d  
 (g) Motor vehicles running on electricity    
 Automobiles of less than nine seats  15 
 Automobiles of 10 to 1 5 seats 10 
 Automobiles of 16 to 2 3 seats  5 
 Automobiles served for both purposes of carrying passengers and good  10 
 (h) Motorhomes regardless of cylinder capacity  75 
5. Motorcycles of 2 or 3 wheels with cylinder capacity of over 125 cm3 20 
6. Airplanes  30 
7. Cruise boats  30 
8. Gasoline  10 
 E5 Gasoline  8 
 E10 Gasoline  7 
9. Air-conditioners with the capacity of 90,000 BTU or less  
From 01/04/2009  15 
10 
10. Playing cards  40 
11. Votive paper  70 WT/TPR/S/ 410 • Viet Nam  
 
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 No. Description of good or service  Tax rate (%)  
II. Services  
1. 
1. Operating discotheques, massage lounges, karaoke parlours  
Operating discotheques  
From 01/04/2009  30 
 
40 
2. Operating massage lounges and karaoke parlours  
From 01/04/2009  30 
3. Casino business, electronic casino game business  35 
4. Recreation services with gambling  
From 01/04/2009  25 
30 
5. Golf: selling memberships and tickets for playing golf  
Golf business  
From 01/04/2009  10 
 
20 
6. Lottery  15 
Source:  Information provided by the authorities.   
3.50.   Refund and deduction of the excise tax are stipulated in Article  8 of the Law on Excise Tax. 
They concern, inter alia:  goods temporarily imported for re -export; raw materials imported for 
production and processing of exports; goods subject to tax refund de cisions by competent agencies; 
and goods subject to excise tax refund under treaties to which Viet  Nam is a contracting party. 
Article  9 of the Law defines the reduction of the excise tax. It concerns taxpayers that produce excise 
taxable goods and face di fficulties caused by natural disasters or unexpected accidents.25  
3.51.   Under the Law on Environmental Protection Tax (Law No. 57/2010/QH12), which entered into 
force on 1 January 2012, the environmental protection tax has been applied on petroleum products, 
coal, hydrogen -chlorofluorocarbon (HCFC) liquids (ozone -depleting substances), plastic bags, and 
various pesticides and herbicides. This list is unchanged since Viet  Nam's previous Review. The tax 
rates are specific and set individually by product; the curre nt rates are specified in Resolution 
No. 579/2018/UBTVQH14, issued on 26 September 2018 (Table 3.5). The Law authorizes the 
Standing Committee of the National Assembly to extend the product coverage. Goods exported 
directly are not subject to this tax.  
Table 3.5 Products subject to environmental protection tax, 2020  
Item  Product description  Calculation 
unit Tax frame 
(VND)  Tax rate 
(VND)  
I Gasoline, oil, grease      
1 Gasoline, except ethanol  litre 1,000 -4,000  4,000 
2 Aircraft fuel  litre 1,000 -3,000  3,000 
3 Diesel oil  litre 500-2,000  2,000  
4 Petroleum  litre 300-2,000  1,000  
5 Fuel oil  (Mazut oil)  litre 300-2,000  2,000  
6 Lubricants  litre 300-2,000  2,000  
7 Grease  kg  300-2,000  2,000  
II Coal     
1 Brown coal  tonne  10,000 -30,000  15,000 
2 Anthracite coal (anthracite)  tonne  20,000 -50,000  30,000  
3 Fat coal  tonne  10,000 -30,000  15,000 
4 Other coal  tonne  10,000 -30,000  15,000 
III Hydrogen -chlorofluorocarbon (HCFC) 
liquid  kg 1,000 -5,000  5,000 
IV Taxable -plastic bag  kg 30,000 -50,000  50,000  
V Herbicide that is restricted  kg 500-2,000  500 
VI Pesticide that is restricted  kg 1,000 -3,000  1,000  
VII Forest product preservative that is restricted  kg 1,000 -3,000  1,000  
VIII Warehouse disinfectant that is restricted  kg 1,000 -3,000  1,000  
Source:  Information provided by the authorities.  
3.52.   VAT is levied on goods and services in accordance with the Law on Value -Added Tax 
No. 13/2008/QH12, as amended in 2013, 2014, and 2016. The VAT rate is zero, 5%, or 10%, with 
10% being the standard rate.26 The reduced (5%) rate is applicable to goods and services that are 
 
25 The tax reduction level is determined based on the extent of damage caused by natural disasters or 
unexpected accidents, not exceeding 30% of the payable tax amount in the year the da mage occurs or the 
balance between the value of damaged assets and the received compensation.  
26 Transactions subject to 0% or 5% VAT are enumerated in Article  8 of the Law.  WT/TPR/S/ 410 • Viet Nam  
 
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 inputs of agricultural production, as well as goods and services including clean water, ores for 
fertilizer production, pesticides and growth stimulants, preliminary processing and preservation of 
agricultural products, preliminarily processed rubber latex, fresh food, sugar and sugar by -products, 
animal feed, fresh food, agricultural machinery, medical equipmen t, teaching aids, children's toys, 
and scientific and technological services, unchanged since 2013.  
3.53.   Exported goods and services and international transportation services are zero rated. During 
the review period, VAT exemption was extended to: (i)  insurance  for persons in accordance with the 
Insurance Business Law; (ii)  insurance for fishermen to encourage seafaring; (iii)  loan services to 
taxpayers (excluding credit institutions, debt trading services, and foreign currency trading 
services); (iv)  goods and services provided by business households and individuals that earn annual 
revenue of less than VND 100 million; and (v)  certain fertilizers (Table  3.6). Enterprises and 
cooperatives that buy farming, breeding, or aquaculture products that have not been pro cessed into 
other products or have only been preliminary processed and then sell them to other enterprises or 
cooperatives do not need to declare and pay VAT but may deduct input VAT. Input for investment 
projects and exported goods and services equal to o r above VND 300 million is eligible for VAT 
refund.  
Table 3.6 Goods and services not subject to VAT, December 2020  
No. Product description  
1.  Products of cultivation, husbandry, and aquaculture products, which have not yet been processed into 
other products or have been only preliminarily processed, sold by self -producing or fishing 
organizations and individuals.  
2.  Livestock breeds, plant varieties, including breeding eggs, breeders, seedlings, seeds, semen, 
embryos, and genetic materials.  
3.  Irrigation and drainage, ploughing and harrowing land, dredging interior field canals and ditches for 
agricultural production, service of harvesting agricultural products, fertilizer, machinery and  
equipment used exclusively for agricultural production, offshore fishing boats, fodder for cattle, 
poultry and other domestic animals.  
4.  Salt products made from seawater, natural rock salt, refined salt, iodized salt with the main ingredient 
being sodium chloride (NaCl).  
5.  State -owned houses sold by the State to current tenants.  
6.  Transfer of land -use rights.  
7.  Life insurance, health insurance, student insurance, other insurance services related to people; animal 
insurance, crop insurance, other agricultural insurance services; insurance for ships, boats, equipment 
and other necessary tools in direct service of fishing; reinsurance.  
8.  The following financial, banking and securities services:  
 
Credit extension services, including: lending; di scount and rediscount of negotiable instruments and 
other valuable papers; guarantee; financial leasing; credit card issuance; domestic factoring; 
international factoring; other forms of credit provision as prescribed by law;  
 
Securities trading, including : securities brokerage; securities dealing; underwriting securities; 
securities investment consulting; securities depository; securities investment fund management; 
securities investment portfolio management; market organization services of a stock exchang e or a 
securities trading centre; other securities business activities in accordance with the law on securities;  
 
Capital transfer, including: transfer of part or all of the invested capital, including the sale of 
enterprises to other enterprises for produ ction, trading or transfer of securities; other forms of capital 
transfer as prescribed by law;  
 
Debt sale;  
 
Foreign currency trading;  
 
Derivative financial services, including: interest rate swaps; forward contracts; futures contract; 
options to buy and sell foreign currencies; other derivative financial services as provided for by law; 
and 
 
Selling collateral of debts of organizations in which 100% of the charter capital is owned by the State, 
established by the Government to handle the bad debts of Vietnamese credit institutions.  
9.  Medical services, veterinary services, including medical examination and treatment services, and 
disease prevention for humans and animals; care services for the elderly and people with disabilities.  
10.  Public postal and telecommunications services and universal Internet services under the Government's 
programmes.  WT/TPR/S/ 410 • Viet Nam  
 
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 No. Product description  
11.  Maintenance of zoos, flower gardens, parks, street greenery, public lighting; funeral service.  
12.  Maintenance, repair, and construction with capital contributions from the people, humanitarian aid for 
cultural and artistic works, public works, and infrastructure and housing a for social policy objective.  
13.  Teaching and vocational training according to the provisions of law.  
14.  Broadcasting radio and television with state budget funds.  
15.  Publishing, importing, distributing newspapers, magazines, specialized newsletters, political books, 
textbooks, textbooks, legal text books, scientific -technical books, books printed in ethnic languages, 
minority group s and propaganda posters, pictures, even in the form of audio or video tapes or discs; 
money, money printing.  
16.  Transporting public passengers by bus, tram.  
17.  Machinery, equipment, spare parts and materials that cannot be produced at home and need to be 
imported for direct use in scientific research and technological development activities; machinery, 
equipment, spare parts, special -use means of transport and materials that cannot be produced at 
home and need to be imported for prospecting, exploration an d development of oil and gas fields; 
airplanes, drilling rigs and ships that cannot be domestically produced and need to be imported to 
create fixed assets of an enterprise or leased from a foreign party for use in production, trading, for 
lease or subleas e. 
18.  Specialized weapons and weapons in service of national defence and security.  
19.  Imported goods in case of humanitarian aid or non -refundable aid; gifts to state agencies, political 
organizations, socio -political organizations, socio-political organizations - professional, social 
organizations, socio -professional organizations, people's armed forces units; presents and gifts for 
individuals in Viet  Nam according to the levels prescribed by the Government; belongings of foreign 
organizations and individuals according to diplomatic immunity standards; carry -on goods in duty -free 
baggage allowance.  
Goods and services sold to foreign organizations and individuals, international organizations for 
humanitarian aid or non -refundable aid to Viet  Nam.  
20.  Goods transhipped or transited through Vietnamese territory; goods temporarily imported for re -
export; goods temporarily exported for re -import; raw materials imported for the production or 
processing of goods for export under a production or export processing contract signed with a foreign 
party; goods and services traded between foreign countries and non -tariff zones and between non -
tariff zones.  
21.  Technology transfer in accordance with the Law on Technology Transfer; assignment  of intellectual 
property rights according to the provisions of the Intellectual Property Law; software.  
22.  Gold imported in the form of bars or bars which has not yet been processed into fine -art articles, 
jewellery or other products.  
23.  Exported products are natural resources and minerals that have not yet been processed into other 
products; Export products are goods processed from natural resources or minerals with a total value 
of natural resources and minerals plus energy costs accounting for 5 1% or more of the product cost.  
24.  Artificial products used to replace sick people's body parts; crutches, wheelchairs and other 
specialized tools for the disabled.  
25.  Goods and services of business households and individuals with annual turnover of VND 100 million or 
less. 
Source:  Information provided by the authorities.  
3.54.   Decree No. 100/2016/ND -CP, issued and entered into force on 1 July 2016, stipulates 
investment projects eligible for VAT refund for new businesses established by certain investment 
including projects in progress on oil and gas field exploration and development.  
3.55.   VAT is applied on the duty -paid value of imports and is due at the same time as the payment 
of import duties; this practice is unchanged since the previous Review. For domestic p roducers, VAT 
is collected monthly and settled at the end of the calendar year.27 
3.1.5   Import prohibitions, restrictions, and licensing  
3.56.   Viet Nam applies import prohibitions, restrictions, and licensing in accordance with: the Law 
on Foreign Trade Management (La w No. 05/2017/QH14, issued on 12 June 2017, and entered into 
force on 1 January 2018); and other documents including Decree No. 69/2018/ND -CP (detailing a 
 
27 Enterprises and individuals established permanently in Viet  Nam that produce or trade goods or 
services subject to VAT must register as VAT taxpayers, and file monthly tax returns.  WT/TPR/S/ 410 • Viet Nam  
 
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 number of articles of the Law on Foreign Trade Management), issued on 15 May 2018 (replacing 
Decree N o. 187/2013/ND -CP). 
3.57.   Other relevant legislation includes: (i) the 2007 Law on Chemicals (as amended in 2018); 
(ii) Decree No.  113/2017/ND -CP (specifying and providing guidelines for implementation of a 
number of articles of the Law on Chemicals), issued on 9 October 2017; (iii) the 2000 Law on Drug 
Prevention and Combat (as amended in 2008); (iv) MOIT Circular No. 12/2018/TT -BCT; (v)  Circular 
No. 11/2018/TT -BTTTT of the Ministry of Information and Communications (on detailing list of used 
information technol ogy products prohibited from import with their HS codes), issued on 15 October 
2018; (vi)  Circular No. 173/2018/TT -BQP of the Ministry of National Defence (on promulgating the 
list of specific prohibited exports and imports subject to the administration of  the Ministry of National 
Defence), issued on 31 December 2018; (vii) Decree No. 25/2012/ND -CP (detailing the 
implementation of a number of articles of the ordinance on management and use of weapons, 
explosives, and supporting tools), issued on 5 April 201 228; and (viii) Decree No.  66/2017/ND -CP 
(on prescribing the conditions for doing business in camouflaged sound recording, video recording, 
and positioning devices and software), issued on 19 May 2017.29 
3.58.   Goods subject to import prohibition include certain chemicals, weapons, right -hand drive 
vehicles, and certain used consumer goods (Table 3.7 ), unchanged since 2013.30  
Table 3.7 Import prohibitions, 2020  
Description  
Chemicals in Annex III of the Rotterdam Convention.  
Used supplies and vehicles, including:  
(a) Engines, frames, inner tubes, tires, spare parts and motors of cars, trailers, semi -trailers, four -wheeled 
drives;  
(b) Chassis of cars and tractors, fitted with engines (including new chassis fitted with used engines and used 
chassis fitted with new engines);  
(c) Assorted cars that have been transformed in structure compared with their original designs;  
(d) Cars, trailers, semi -trailers (other than dedicated trailers and semi -trailers),  used passenger four -
wheeled motor vehicles over five years from the manufacture year to the import year; and  
(e) Ambulances.  
(a) Right-hand drive means of transport (including those in knocked -down forms and those with converted 
drive before being import ed in Viet  Nam), excluding special -use right -hand drive vehicles operating within a 
restricted location and not joining traffic, including: crane trucks; canal diggers, street sweepers, street 
washers; garbage trucks; road builders; passenger cars in airpo rts and lifting trucks in warehouses and 
ports; concrete -pumping vehicles; vehicles moving only within golf courses or parks;  
(b) Assorted automobiles, four -wheeled drives, and their spare parts that have their frame or engine 
numbers erased, modified, or tampered with;  
(c) Trailers and semi -trailers that have their frame erased, modified, or tampered; and  
(d) Assorted motorcycles, special -use motorbikes, and motorbikes that have their frame or engine numbers 
erased, modified or tampered with.  
Weapons, ammunitions, explosives (excluding industrial explosives), military technical equipment.  
Assorted cultural products banned from dissemination and circulation or decided to be suspended from 
dissemination and circulation, or subject to revocation, confiscation, and destruction.  
(a) Assorted publications banned from dissemination and circulation;  
(b) Postage stamps banned from tradi ng, exchange, display, and dissemination in accordance with the Law 
on Post; and  
(c) Radio equipment and radio -wave appliances that do not comply with radio frequency master plans and 
relevant technical regulations in accordance with the Law on Radio Freq uencies.  
 
28 Article  4 of the Decree prohibits producing, manufacturing, purchasing, selling, transporting, 
exporting, importing, stockpiling, and using parts, component assemblies for illegal assembly or the 
manufacture of weapons or supporting tools.  
29 Article  5 of th e Decree stipulates that prohibited acts include illegally manufacturing, assembling, 
transporting, storing, trading, exporting, importing, leasin g, and repairing camouflage devices and software 
used for sound and video recording and positioning.  
30 Viet Nam is a signatory to, inter alia , the following international treaties and conventions with 
implications for trade: the Convention on World Cultura l Heritage and Natural Resources Conservation; the 
Convention on Wetland of International Importance, especially of Waterfowls Habitat (Ramsar); the Convention 
on International Trade in Endangered Species of Wild Flora and Fauna (CITES); the Montreal Proto col on 
Substances that Deplete the Ozone Layer; the Framework Convention on Climate Change; the Convention on 
Biological Diversity (CBD); the Convention on Marine Law; the Basel Convention on controlling the transit and 
disposal of dangerous waste; the Uni ted Nations Convention to Combat Desertification (CCD); the Cartagena 
Protocol on Biosafety; the Vienna Convention on the Ozone Layer Protection; the Stockholm Convention on 
Persistent Organic Pollutants; and the Rotterdam Convention on Prior Informed Cons ent.  WT/TPR/S/ 410 • Viet Nam  
 
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 Description  
Used consumer goods, medical equipment, and vehicles including the following commodity groups:  
(a) Textiles and garments, footwear, clothes;  
(b) Electronic appliances;  
(c) Refrigerating appliances;  
(d) Home electric appliances;  
(e) Medical equipment;  
(f) Interior decoration goods;  
(g) Home appliances made of pottery, ceramic, glass, metal, plastic, rubber, and other materials;  
(h) Bicycles; and  
(i) Motorcycles and mopeds.  
(a) Schedule -1 toxic chemicals defined in the Convention on the Proh ibition of the Development, Production, 
Stockpiling and Use of Chemical Weapons and on their Destruction and Annex to Decree No . 38/2014/ND -
CP, dated 6 May 2014, on the management of chemicals under control in the Convention on the Prohibition 
of the Devel opment, Production, Stockpiling and Use of Chemical Weapons and on their Destruction; and  
(b) Chemicals under the list of banned chemicals prescribed in Appendix III to Decree No. 113/2017/ND -CP 
dated 9 October 2017 on guidelines for certain articles of the Law on Chemicals.  
Wastes and scraps, refrigerating equipment using CFC.  
Pesticides banned from use in Viet  Nam.  
Assorted fireworks (excluding signal fires used for navigational safety under the guidance of the Ministry of 
Transport), sky lanterns, assorted devices causing interference to vehicle speedometers.  
Products and materials containing asbestos of the amphibole group (brown and green asbestos).  
Used information technology products.  
a) Samples of precious, rare and endangered animals and plants under Appendix I to the CITES derived 
from natural resources being exported for commercial purpose; and  
b) Samples and processed products of species: white rhinoceros ( Ceratotherium simum ), black rhinoceros 
(Diceros bicorn is), African elephants ( Loxodonta africana ). 
Source:  Decree No. 69/2018/ND -CP, Law No. 14/2017/QH14, Decree No. 79/2018/ND -CP, and information 
provided by the authorities.  
3.59.   Goods subject to import restrictions, which entail various import licensing require ments, are 
shown in Table A3.4. The licensing requirement is also employed to administer importation of goods 
subject to tariff quotas.  
3.60.   Articles 11 to 14 of the Law on Foreign Trade Management stipulate circumstances when 
temporary suspension from export or import can be taken. The suspension of import or export may 
be imposed if products are subject to the urgent control measure for the foreign trade management 
prescribed in Chapter V (Articles 100 -102) of the Law (e.g. products affected by war, natural 
disaster, epidemics, or environmental incidents; products producing serious effects on health and 
the environment; and balance of payment reasons). In accordance with the Law and MOIT Circular 
No. 22/2019/TT -BCT, issued on 12 November 2019, international tr ade and temporary import of 
plywood into Viet  Nam for re -export to the United States is suspended between 27 December 2019 
and 31 December 2024.31 In addition, under MOIT Circular No.  27/2019/TT -BCT, issued on 
15 November  2019, some scraps are subject to t emporary suspension from temporary import, re -
export, and border -gate transfer between 1 January 2020 and 31 December 2024.32  
3.61.   The automatic import licensing requirement applied to steel products was eliminated under 
MOIT Circular No. 17/2014/TT -BCT, issued on 16 June 2014. Currently, Viet  Nam does not apply an 
automatic import licensing requirement.  
3.62.   MOIT Decision No. 1380/QD -BCT, issued on 25 March 2011, indicating goods not encouraged 
or discouraged for imports is still in force.  
3.63.   Quotas apply to imports of HCFCs under MOIT Circular No. 51/2018/TT -BCT, issued on 
19 December 2018, which amended some provisions of Joint Circular N o. 47/2011/TTLT -BCT-BTNMT 
of the MOIT and the Ministry of Natural Resources and Environment, issued on 30  December 2011. 
The amendment concerned changes regarding HCFC imports.  
 
31 Products concerned include HS codes 4412.10.00, 4412.31.00, 4412.33.00, 4412.34.00, 4412.39.00, 
4412.94.00, 4412.99, 4412.99.10, 4412.99.20, 4412.99.30, and 4412.99.90.  
32 Products concerned include HS 4 -digit codes (fully or partially): 2520, 2618,  2619, 2620, 3818, 3919, 
3920, 3921, 3923, 4707, 5003, 5103, 5104, 5202, 5505, 6310, 7001, 7204, 7404, 7503, 7602, 7902, 8002, 
8101, 8102, 8104, 8108, 8109, 8110, 8111, and 8112. Only used goods are applicable for HS codes 3919, 
3920, 3921, and 3923.  WT/TPR/S/ 410 • Viet Nam  
 
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 3.64.   Viet Nam did not introduce measures relating to import prohibitions, restrictio ns, and licensing 
in response to the COVID -19 pandemic.  
3.1.6   Anti-dumping, countervailing, and safeguard measures  
3.65.   Chapter III of the Law on Export Tax and Import Tax stipulates conditions for, the principles 
of, and the period of imposing anti-dumping, countervailing (anti -subsidy), and safeguard measures. 
The Law on Foreign Trade Management is the main legislation governing anti -dumping, 
countervailing, and safeguard measures in Viet  Nam. The Law replaced the ordinances on 
Investigation of  the Application of Trade Remedies. The authorities state that the Law was introduced 
to assess the need for improving the legal basis for anti -dumping, countervailing, and safeguard 
measures since it was more than 10 years after the implementation of the ordinances of the Standing 
Committee of the National Assembly and Decrees by the Government.33  
3.66.   To supplement the Law, Decree No. 10/2018/ND -CP (guiding the Law on Foreign Trade 
Management on trade remedies) was issued on 15 January 2018, and MOIT Circular  
No. 06/2018/TT -BCT (detailing a number of provisions on trade remedies) was issued on 20 April 
2018. Subsequently, MOIT Circular No. 37/2019/TT -BCT (prescribing in detail a number of provisions 
on trade remedies) was issued on 29 November 2019, and entere d into force on 15  January 2020 
to replace MOIT Circular No. 06/2018/TT -BCT with a view to improving regulations related to the 
process of handling exemptions for application of anti -dumping, countervailing, and safeguard 
measures. In addition to these ord inances and decrees, the MOF issued a circular to guide the 
collection, remittance, and refund of anti -dumping and anti -subsidy taxes, and the provision of 
securities for the payment of such taxes.34 The authorities state that the legal provisions under th e 
Law on Foreign Trade Management comply with the provisions of the WTO Agreement regarding 
anti-dumping, countervailing, and safeguard measures.  
3.67.   According to the authorities, the current legislation concerning anti -dumping, countervailing, 
and safeguard measures contains some regulations not yet included in the system of international 
commitments, such as: (i) eliminating some regulations that are not suitable to the reality of 
investigation (e.g. there is no deadline for issuing a preliminary report; and  there are no specific 
issues related to consultations, such as the time limit for speaking); (ii) investigating the application 
of "avoid evasion measures"; (iii) exempting certain imports from the application of anti -dumping, 
countervailing, and safeguar d measures (a waiver mechanism) in order to ensure that the measures 
apply strictly to imported goods that are similar or directly compete with domestically produced 
goods35; (iv) specifying procedures for reviewing and applying anti -dumping, countervailin g, and 
safeguard measures, including on -demand, product range, mid -term, and final reviews; (v) 
specifying forms used during the investigation, such as an application for registration of a party 
concerned with a trade remedies case, import declaration, an application for exemption from trade 
 
33 Relevant decrees and ordinances (which expired in January 2018) include: Decree 
No. 04/2006/ND -CP (on establishment, functions, duties, powers, organizational structure of council for 
handling cases of combat against dumping, combat against subsidy, and self -protection), issued on 9 January 
2006; Decree No.  89/2005/ND -CP (on detailing the implementation of a number of articles of the ordinance on 
anti-subsidy for imports into Viet  Nam), issued on 11 July 2005; Decree No. 90/2005/ND -CP (on detailing the 
impleme ntation of a number of articles of the ordinance on anti -dumping of imports), issued on 11 July 2005; 
Ordinance No. 22/2004/PL -UBTVQH11 (on anti -subsidy for imports), issued on 20  August 2004; Ordinance 
No. 20/2004/PL -UBTVQH11 (on anti -dumping of imports),  issued on 29 April 2004; Decree No. 150/2003/ND -
CP (on detailing the implementation of the ordinance on safeguards in the import of foreign goods), issued on 
8 December 2003; and Ordinance No. 42/2002/PL -UBTVQH10 (on safeguards in the import of foreign go ods), 
issued on 25 May 2002.  
34 MOF Circular No. 106/2005/TT -BTC, issued on 5 December 2005, guiding the collection, remittance, 
and refund of anti -dumping tax, anti -subsidy tax, and securities for payment of anti -dumping tax or anti -
subsidy tax .  
35 Exempti ons from the application of these measures include when: (i) the products cannot be 
produced domestically; (ii) the products possess characteristics that are different from and cannot be 
substituted by domestically produced products; (iii) the products are  special products of like or directly 
competitive products produced by the domestic industry; (iv) there is no sale of like or directly competitive 
products produced by the domestic industry in the ordinary course of trade in the domestic market; (v) there  
are not enough like or directly competitive products produced domestically to meet the needs of the domestic 
market; and (vi) the imports within the total quantities of imports requested for exemption are intended for 
research and development (R&D) purpos es, as well as other non -commercial purposes.  WT/TPR/S/ 410 • Viet Nam  
 
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 remedies, and report on exempted import goods; (vi) dealing with trade remedies applied to 
exports; and (vii) including provisions on special safeguard measures in the context of FTAs.  
3.68.   The MOIT is the authority responsi ble for deciding to investigate trade remedy measures. 
Since August 2017, the agency in charge of making appraisals and proposals to the Minister of 
Industry and Trade regarding investigations into trade remedy measures has been the Trade Remedy 
Authority of Viet  Nam under the MOIT.36  
3.69.   Clause 5, Article  70, of the Law on Foreign Trade Management and Article  8 of MOIT Circular 
No. 37/2019/TT -BCT define the disclosure of information in the process of initiating, investigating, 
and promulgating decisions on ap plication of trade remedy measures. Accordingly, information on 
initiation and the final decision is published on the websites of the Trade Remedy Authority of 
Viet Nam and the MOIT. Information concerning the investigation may be disclosed to the public, 
depending on the nature of the information.  
3.70.   Article  81.1 of the Law on Foreign Trade Management stipulates that the application of a 
provisional anti -dumping measure shall be decided by the Minister of Industry and Trade, based on 
the preliminary determina tion of the investigating authority. According to Article  70 of the Law, the 
final measure could be applied after 12 to 18 months from the date of issuance of an initiation 
decision. The Law does not specify the length of time between the decision on provi sional measure 
and final measure. Article  81 of the Law stipulates that the duration of provisional anti -dumping 
duties is 120 to 180 days from the effective date of the decision on the imposition of provisional 
anti-dumping duties. The authorities state t hat, in order to avoid the gap between the provisional 
and final measures, the investigating authority plans the investigation process to ensure that the 
final measure will be applied before the expiration of the provisional measure.  
3.71.   Under Article  71 of th e Law, an investigation is terminated when: (i) an organization or 
individual that submits a dossier of request for application of trade remedies voluntarily withdraws 
such dossier; (ii) the investigating authority's preliminary determination states that n o injury is 
caused, there is no threat of injury to a domestic industry, or there is no delay of the establishment 
of the domestic industry; or (iii) the investigating authority reaches an agreement with the 
competent authority of the country having the pr oducts claimed to be subsidized upon import into 
Viet Nam's territory on removal of the subsidy. An investigation is also terminated when the 
investigating authority's final determination states one of the following: the imported products under 
investigati on are neither dumped nor subsidized or such products are not excessively imported; no 
injury is caused to a domestic industry as prescribed in Clause 2, Article  69, of the Law; or there is 
no causal relationship between the import of products that are cla imed to be dumped or subsidized 
or excessively imported and the extent of injury or threat of injury to a domestic industry or the 
delay of the establishment of domestic industry.  
3.72.   Article  81.3(d) of the Law stipulates that the time limit for imposition of an anti -dumping 
measure is five years from the effective date of the decision on imposition of such measure. If the 
result of a sunset review shows the need for the continued application of the anti -dumping measure, 
the investigating authority can extend t he time limit of the measure.  
3.73.   Countervailing and safeguard measures may be applied pursuant to: the Law on Foreign Trade 
Management; Decree No. 10/2018/ND -CP; and MOIT Circular No. 37/2019/TT -BCT, issued on 
29 November 2019, and entered into force on 15 Ja nuary 2020. The Law establishes that 
countervailing measures may take the form of countervailing duties or acceptance of undertakings 
by the exporting enterprises or their governments or other countervailing measures (Article  83); it 
also establishes the d efinition of subsidies in Article  84. No countervailing investigation was made 
during the review period.  
3.74.   Section 4, Chapter IV, of the Law on Foreign Trade Management stipulates safeguard 
measures including, inter alia , the imposition of safeguard duties,  import quotas, and tariff quotas; 
and the issuance of import licences. Under the Law, a safeguard measure can be imposed on imports 
if the following conditions are satisfied: (i) there is an absolute or relative increase in imports 
compared with the domes tic production of like products; (ii) there is a serious injury or threat of 
 
36 Between January 2013 and August 2017 , the Viet  Nam Competition Authority  under the MOIT was the 
agency in charge of making appraisals and proposals to the Minister of Industry and Trade for the issuance of 
decisions to initiate investigations on trade remedy measures .  WT/TPR/S/ 410 • Viet Nam  
 
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 serious injury to the domestic industry; and (iii) the increased imports prescribed in Point  A of this 
Section is the major cause of the serious injury or threat of serious injury  to the domestic industry. 
Developing countries will be exempted from the safeguard measures if: (i) the imports originating 
in that country account for not more than 3% of total imports of like products; and (ii)  the total 
imports of products originating in that country and satisfying the aforementioned conditions account 
for not more than 9% of the total production of imports of like products.  
3.75.   A safeguard investigation will be conducted if a domestic producer of like or directly 
competitive products37 submits an application for the imposition of safeguard measures. The 
application must prove that the excessive import of products causes the serious injury or threat of 
serious injury to the domestic industry. The MOIT is responsible for deciding to conduct an 
investigation if there is clear evidence that the excessive imports of products cause the serious injury 
or threat of serious injury to the domestic industry.  
3.76.   The content of a safeguard investigation includes the determination of: the products that are 
imported excessively and the rate of the increase in imports; the serious injury or threat of serious 
injury to the domestic industry; and the causal link between the excessive import of relevant 
products and the injury to the domestic industry.  
3.77.   The imposi tion of interim safeguard measures is decided by the Minister of Industry and 
Trade, according to the preliminary determination provided by the investigating authority whether 
the delay in imposing safeguard measures causes a serious injury or threat of se rious injury to the 
domestic industry that is difficult to be repaired. The maximum duration of a safeguard measure is 
200 days from the day on which the decision of the imposition of the safeguard measure comes into 
force.  
3.78.   Conditions concerning the impos ition of final (official) measures are that: (i) after the 
investigation finishes, the investigating authority shall publish the final determinations of contents 
related to the investigation stipulated in Article  94 of the Law, and the final determination (and its 
main reasons) shall be notified to interested parties of the case; (ii)  according to the final 
determination, the Minister of Industry and Trade shall decide whether the final safeguard measure 
is imposed; (iii) the maximum duration of the safegua rd measure (including the duration of any 
provisional safeguard measure) is 4  years, unless the duration is extended in accordance with 
Article  96 of the Law; (iv) the total duration of the safeguard measure (including the duration of the 
provisional measu re, the final measure, and its extension) must not exceed 10 years.  
3.79.   With a view to effectively implementing the contents of "special safeguard measures" under 
the Comprehensive and Progressive Agreement for Trans -Pacific Partnership (CPTPP), the MOIT 
issued Circular No. 19/2019/TT -BCT (providing for application of the special safeguard measures for 
implementing the CPTPP) on 30 September 2019. The special safeguard measures include 
transitional safeguard measures and emergency measures for textiles.  
3.80.   During  the review period, Viet  Nam notified laws and regulations pertaining to anti -dumping, 
countervailing, and safeguard measures to the WTO in 2018 and 2020, and responded to detailed 
questions on its anti -dumping regime in 2019.38 Between 2013 and 2019, Viet  Nam had five anti -
dumping measures in place and four cases under investigation; it also had four safeguard measures 
 
37 "Directly competitive products" are products that can be substituted for products subject to the 
safeguard measures by the buyer due to their advantages in prices and purposes  for use.  
38 WTO documents G/ADP/N/1/VNM/2/Corr.1, 5 November 2018, G/ADP/N/ 1/VNM/ 2, 30 October 2018, 
and G/ADP/N/1/VNM/3 , 28 May 2020 . Replies to questions posed by the European Union and the United States 
on Viet  Nam's anti -dumping legislation have been circulated in WTO  document s G/ADP/Q1/VNM/ 3, 
2 April 2019, G/ADP/Q1/VNM/4, 30 April 2019, G/ADP/Q1/VNM/5, 2 May 2019, G/ADP/Q1/VNM/6, 
20 June 2019, G/ADP/Q1/VNM/7, 7 November 2019, and G/ADP/Q1/VNM/8, 7 November 2019. Semi -annual 
reports of Viet  Nam's anti -dumping actions f or the period 2013 -19 are found in WTO documents 
G/ADP/N/335/VNM, 31  March 2020, G/ADP/N/328/VNM, 21 October 2019, G/ADP/N/322/VNM, 16 April 2019, 
G/ADP/N/314/VNM, 9 August 2018, G/ADP/N/300/VNM, 6 September 2017, G/ADP/N/294/VNM, 3 April 2017, 
G/ADP/N/286 /VNM, 29  August 2016, G/ADP/N/280/VNM, 8 April 2016, G/ADP/N/272/VNM, 19 October 2015, 
G/ADP/N/265/VNM, 27 April 2014, G/ADP/N/259/VNM, 15 October 2014,  G/ADP/N/252/VNM, 23 October 
2014, and G/ADP/N/244/VNM, 23 October 2014.  WT/TPR/S/ 410 • Viet Nam  
 
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 in place. The main products covered by these measures include steel, aluminium, and fertilizer.  
(Table A3.5 ).39 
3.81.   Appeals concerning a decision on an anti -dumping, countervailing, or safeguard measure can 
be conducted under the 2011 Law on Complaints. Complainants can send their complaint to the 
relevant Minister or initiate an administrative lawsuit in court, in acco rdance with the Law on 
Administrative Procedures.  
3.82.   Viet Nam did not introduce any anti -dumping, countervailing, or safeguard measures in 
response to the COVID -19 pandemic.  
3.1.7   Other measures affecting imports  
3.83.   From the date of its accession to the WTO, Viet Nam  agreed to fully comply with the TRIMs 
Agreement. Investment incentives contingent upon export performance were curtailed for new 
investments, and are to be phased out over a five -year period from the date of accession for existing 
beneficiaries. Incentive s for exemption from and reduction of land use payment, land use tax, and 
corporate income tax were terminated on 25 October 2006; incentives for exemption from import 
duties in respect of the equipment and machinery imported to form fixed assets were elim inated on 
1 January 2006.40 As a guarantee for business operations, Article  10 of the 2014 Investment Law 
provides provisions that the State cannot compel investors to comply with. These provisions include: 
(i) prioritizing the purchase and use of domestic  goods and services; (ii)  reaching a certain rate of 
exported goods or services; (iii)  limiting goods and services exported or domestically produced or 
provided; (iv)  importing goods in a quantity or value corresponding to the quantity or value of 
exports goods41; (v) applying localization rates for domestically produced goods; (vi)  requiring 
domestic research and development (R&D) activities; (vii)  supplying goods or services at specific 
places in the country; and (viii)  locating head offices at specific p laces. The authorities state that 
currently there are no trade -related investment measures (TRIMs) in place, and Viet  Nam has not 
notified any new TRIMs to the WTO.42 
3.84.   The authorities state that Viet  Nam does not use countertrade.  
3.2  Measures Directly Affectin g Exports  
3.2.1   Customs procedures and requirements  
3.85.   As in the case of imported goods, customs procedures for exported goods are based on legal 
documents: Customs Law 2014; Decree No. 08/2015/ND -CP, issued on 21 January 2015, as 
amended and supplemented by Decre e No. 59/2018/ND -CP, issued on 20 April 2018; and MOF 
Circular No. 38/2015/TT -BTC, issued on 25 March 2015, as amended and supplemented by MOF 
Circular No. 39/2018/TT -BTC, issued on 20 April 2018.  
3.86.   Exporters must submit to customs offices dossiers of custo ms documents as prescribed in 
Clause 1, Article  16, of MOF Circular No. 38/2015/TT -BTC, as amended and supplemented in Clause 
5, Article  1, of MOF Circular No. 39/2018/TT -BTC. The registration and channelling of declarations 
 
39 Notifications concerning Viet  Nam's safeguard measures include G/SG/N/8/VNM/3/Suppl.3/Corr.1, 
2 April 2020, G/SG/N/8/VNM/3/Suppl.3, 1 April 2020, G/SG/N/8/VNM/3/Suppl.2, 20 March 20 20, 
G/SG/N/8/VNM/6/Suppl.2/Corr.1, 17 March 2020, G/SG/N/8/VNM/6/Suppl.2, 12 March 2020, 
G/SG/N/8/VNM/6/Suppl.1, 10 March 2020, G/SG/N/6/VNM/5/Suppl.1, 4 February 2020, 
G/SG/N/6/VNM/6/Suppl.1, 4 February 2020, G/SG/N/11/VNM/8/Suppl.1, 20 January 2020, G/SG /N/11/VNM/8, 
16 December 2019, G/SG/N/11/VNM/7/Suppl.1, 17 July 2019, G/SG/N/8/VNM/3/Suppl.1, 2 July 2019, 
G/SG/N/13/VNM/3, 4 December 2018, G/SG/N/13/VNM/2, 4 December 2018, G/SG/N/8/VNM/6, 
13 March  2018, G/SG/N/7/VNM/3/Rev.1, 23 October 2017, G/SG/N/7/VN M/4, 11 August 2017, 
G/SG/N/8/VNM/4, 2  June 2017, G/SG/N/6/VNM/6, 18 May 2017, G/SG/N/8/VNM/3, 2 August 2016, 
G/SG/N/6/VNM/5, 19 July 2016, G/SG/N/7/VNM/3, 24 March 2016, G/SG/N/7/VNM/2, 11 March 2016, 
G/SG/N/6/VNM/4, 4 January 2016, G/SG/N/13/VNM/1, 2 Oct ober 2015, G/SG/N/6/VNM/3/Corr.1, 
1 October  2015, G/SG/N/6/VNM/3, 7 September 2015, G/SG/N/8/VNM/2, 12 September 2013, 
G/SG/N/7/VNM/1, 15  May 2013, and G/SG/N/6/VNM/2, 11  January 2013.  
40 WTO document G/SCM/N/155/VNM, 13 March 2013.  
41 Before its accession to the WTO, Viet Nam used this practice of "self -balance" in its needs for foreign 
exchange.  
42 WTO document G/TRIMS/N/2/Rev.28, 27 September 2018.  WT/TPR/S/ 410 • Viet Nam  
 
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 must comply with Article  19 of Circular No. 38/2015/TT -BTC, as amended and supplemented in 
Clause 8, Article  1, of Circular No. 39/2018/TT -BTC. 
3.87.   As with imports, to be a registered exporter, domestic investors need a valid business 
registration certificate, whereas a foreign investor mus t hold a valid investment certificate. The Law 
on Foreign Trade Management and Decree No. 09/2018/ND -CP stipulate rights to export by 
foreign -invested enterprises in Viet  Nam; the Law also stipulates the rights of foreign traders without 
a physical presenc e in Viet  Nam, as prescribed in Decree No.  90/2007/ND -CP, issued on 
31 May 2007. Foreign -invested enterprises may export their products as any other goods unless 
they: (i)  are listed as banned or suspended from exportation; or (ii) have not been granted th e right 
to be exported. The Law allows foreign traders without presence in Viet  Nam, other relevant 
organizations and individuals of countries and territories that are WTO Members, and countries and 
territories with signed bilateral agreements with Viet  Nam to export in accordance with regulations 
and international treaties to which Viet  Nam is a signatory. The right to export does not extend to 
the establishment of a network in Viet  Nam to purchase goods for export.  
3.88.   In 2019, customs valuation rules for exp orts were amended through MOF Circular 
No. 60/2019/TT -BTC (issued on 30 August 2019).43 According to the authorities, the Circular 
stipulates more detailed rules and methods of customs valuation for exported goods compared with 
the previous regime, particu larly in regard to: the principles of customs valuation of exported goods; 
the method of determining the selling price of goods; the use of the selling price on the customs 
value database; and determination of the customs value of exported goods in special  cases.  
3.89.   As in the case of imports, in response to the COVID -19 pandemic, the authorities focused on 
shortening the time for customs clearance of exports (Section 3.1.1).  
3.2.2   Taxes, charges, and levies  
3.90.   Viet Nam levies export taxes on certain products , such as fish, minerals, coal, rubber, and 
raw hides and skins  (Table A3.6). The taxes  are applied on an MFN basis. Export taxes may be 
refunded in accordance with Article  19 of the Law on Export Tax and Import Tax (Law No. 
107/2016/QH13). The Law stipulat es minimum rates for some groups of goods subject to export 
tax.  
3.91.   The export tax rates changed frequently during the review period. Changes took place in 
January 2013, January 2014, January 2016, September 2016, and January 2018; on 25 May 2020, 
Decree No.  57/2020/ND -CP was issued, amending some export tax rates.44 
3.92.   As in the case of imports, MOF Circular No. 274/2016/TT -BTC (on the collection, payment, 
management, and use of customs fees and charges for goods and vehicles in transit), issued on 
14 November 2016, specifies customs export charges for customs procedures (Table 3.8).45 
Table 3.8 Export charges and fees, 2020  
No. Content collection  Collection rates  
1 Customs fee for registering the declaration   VND 20,000 per declaration  
2 Customs fees for inspection, supervision, or temporary 
suspension of customs procedures for exports and imports 
subject to intellectual property protection  VND 200,000 per application  
3 Fee for transit of goods  VND 200,000 per application  
4 Charge for road transit vehicles (including cars  and tractors)  VND 200 ,000 per vehicle  
 
43 Vietnam Customs, Amendments in the C ustoms Valuation Rules for Exports . Viewed at: 
https://www.customs.gov.vn/Lists/EnglishNews/ViewDetails.aspx?ID=702&Category=Ne ws%20and%20Events
&language=en -US. 
44 Vietnam Customs, Export and Preferential Import Tariff Rates to Appy from 10 July 2020 . Viewed at: 
https://www.customs.gov.vn/Lists/EnglishNews/ViewDetails.aspx?ID=729&Category=News%20and%20Events
&language=en -US. 
45 Before the Circular took effect, customs charges and fees had to comply with the provisions of MOF 
Circular No. 172/2010/TT -BTC, iss ued on 2 November 2010. Fees specified in MOF Circular No. 274/2016/TT -
BTC are generally based on MOF Circular No. 172/2010/TT -BTC. Nonetheless, for example, fees for transiting 
vehicles via waterways were increased from VND 200,000 to VND 500,000.  WT/TPR/S/ 410 • Viet Nam  
 
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 No. Content collection  Collection rates  
5 Charge for water transport means (including ships, canoes, 
tractors, and barges)  VND 500,000  per vehicle  
Source:  Annex to MOF Circular No. 274/2016/TT -BTC. 
3.93.   Viet Nam levies royalties (severance tax) on natural resources, such as basic metals and 
minerals, timber, water, crude oil, and natural gas used in domestic production or exported 
(Table  3.9). The 2009 Law on Severance Tax ( Law No. 45/2009/QH12) and its i mplementing 
regulations continue to provide the legal basis for these payments.46 The Standing Committee of the 
National Assembly established minimum and maximum rates for each product, and the applied 
royalty rate is required to remain within the set band  (or "the tax frame"). Royalty payments are 
levied at ad valorem  rates. The f.o.b. export price constitutes the tax base for exported commodities. 
In general, the tax base is the exporter's sales price exclusive of VAT or, if individual sales prices 
cannot  be determined, a regional market price decided by the local People's Committee. Provided it 
can be determined, the sales price at the place of delivery constitutes the tax base for timber, crude 
oil, natural gas, and coal gas. Royalties on water used in c ommercial generation of hydropower are 
charged on the average sales price of electricity. Royalties may be reduced or refunded in case of 
accidents or natural disasters. Natural aquatic resources are currently exempted from royalty 
payments.  
Table 3.9 Royalty payments on natural resources  
(a) Royalties on natural resources (excluding petroleum)  
No. Group or category of nature resource  Royalty tax 
frame  
(%) Royalty tax 
rate 
(%) 
I Metallic minerals    
1 Iron 7-20 14 
2 Manganese  7-20 14 
3 Titan  7-20 18 
4 Gold 9-25 17 
5 Rare earths  12-25 18 
6 Platinum, silver and tin  7-25 12 
7 Wolfram , antimony  7-25 20 
8 Lead, zinc  7-25 15 
9 Aluminium, bauxite  7-25 12 
10 Copper  7-25 15 
11 Nickel  7-25 10 
12 Cobalt, molybdenum, mercury, magnesium and vanadium  7-25 15 
13 Other metallic minerals  5-25 15 
II Non-metallic minerals    
1 Soil exploited for ground levelling and work construction  3-10 7 
2 Rock, gravel  5-15 10 
3 Rock used for lime baking and cement production  5-15 10 
4 White marble  5-15 15 
5 Sand 5-15 15 
6 Sand used for glass -making  7-15 15 
7 Soil used for brick making  5-15 15 
8 Granite  7-20 15 
9 Refractory clay  7-20 13 
10 Dolomite , quartzite  7-20 15 
11 Kaolin, mica, technical quartz  7-15 13 
12 Mica, technical quartz  7-15 13 
13 Pyrite, phosphorite  5-15 10 
14 Apatite  3-10 8 
15 Serpentine  3-10 6 
16 Pit anthracite coal  4-20 10 
17 Open -cast anthracite coal  6-20 12 
18 Brown coal, f at coal  6-20 12 
19 Other coals  4-20 10 
20 Diamond, ruby and sapphire  16-30 27 
 
46 The implementing legislation includes: Resolution No. 1084/2015/UBTVQH13, issued on 
10 December  2015, and entered into force on 1 July 2016 (replacing Resolution No. 712/2013/ UBTVQH13 , 
which replaced Resolution No. 928/2010/UBTVQH12) ; the Law Amending and Sup plementing a Number of 
Articles of Tax Law No. 71/2014/QH13 (26 November 2011), which includes the amendment of the Law on 
Severance Tax.   WT/TPR/S/ 410 • Viet Nam  
 
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 No. Group or category of nature resource  Royalty tax 
frame  
(%) Royalty tax 
rate 
(%) 
21 Emerald, alexandrite and black precious opal  16-30 25 
22 Adrite, rodolite, pyrope, berine; spinel and topaz  12-25 18 
23 Bluish -purple, greenish -yellow or orange crystalline quartz; 
chrysolite; white or scarlet precious opal; feldspar; birusa; and 
nephrite  12-25 18 
24 Other non -metallic minerals  4-25 10 
III Natural forest products    
1 Timber of Group I  25-35 35 
2 Timber of Group II  20-30 30 
3 Timber of Group III  15-20 20 
4 Timber of Group IV  15-20 18 
5 Timber of Groups V, VI, VII and VIII and of other categories  10-15 12 
6 Tree branches, tops, stumps and roots  10-20 10 
7 Firewood  1-5 5 
8 Bamboo of all kinds 10-15 10 
8 Sandalwood and calambac  25-30 25 
10 Anise, cinnamon, cardamom and liquorice  10-15 10 
11 Other natural forest products  5-15 5 
IV Natural seafood    
1 Pearl, abalone and sea -cucumber  6-10 10 
2 Other natural seafoods  1-5 2 
V Natural water    
1 Natural mineral water, natural thermal water and refined 
natural water, bottled or tinned  8-10 10 
2 Natural water used for hydro electricity generation  2-5 5 
3 Natural water used for production and business activities, 
except water mentioned at Points 1 and 2 of this group    
3.1 Used s urface water    
 - Used for producing clean water  1-3 1 
 - For other purposes  1-3 3 
3.2 Used g roundwater    
 - Used for producing clean water  3-8 5 
 - For other purposes  3-8 8 
VI Natural swallow's nest s 10-20 20 
VII Other resources  1-20 10 
 
(b) Royalty on crude oil, natural gas, and coal gas  (unchanged since 2013)  
No. Output  Tax frame  
(%) Tax rate (%)  
Projects 
eligible for 
investment 
promotion  Other 
projects  
I For crude oil       
1 Up to 20,000 barrels/day  6-40 7 10 
2 Between over 20,000 and 50,000 barrels/day  6-40 9 12 
3 Between over 50,000 and 75,000 barrels/day  6-40 11 14 
4 Between over 75,000 and 100,000 
barrels/day  6-40 13 19 
5 Between over 100,000 and 150,000 
barrels/day  6-40 18 24 
6 Over 150,000 barrels/day  6-40 23 29 
II For natural gas and coal gas       
1 Up to 5 million m3/day 1-30 1 2 
2 Between over 5 and 10 million m3/day 1-30 3 5 
3 Over 10 million m3/day 1-30 6 10 
Source:  Information provided by the authorities.  WT/TPR/S/ 410 • Viet Nam  
 
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 3.2.3   Export prohibitions, restrictions , and licensing  
3.94.   As in the case of imports, Viet  Nam enforces export prohibitions, restrictions, and licensing in 
accordance with the Law on Foreign Trade Management and Decree No. 69/2018/ND -CP 
(Table  A3.7).47  
3.95.   In response to the outbreak of the COVID -19 pandemic, Viet  Nam imposed temporary export 
licensing requirements on face masks (HS 6307.90.40 and HS 6307.90.90) between 11  March 2020 
and 29 April 2020, and temporary export quotas on rice (HS 1006) for the pu rpose of national food 
security between 10 April 2020 and 1 May 2020. Currently, Viet  Nam has no export quotas.  
3.96.   Viet Nam does not use minimum export prices.  
3.2.4   Export support and promotion  
3.97.   Since its previous review, Viet  Nam has continued to implement the N ational Program on 
Trade Promotion with a view to supporting trade promotion activities; this has been conducted 
mainly through the Viet  Nam Trade Promotion Agency (Vietrade).48 The Program is implemented in 
accordance with the provisions of: (i)  Decree No . 28/2018/ND -CP (detailing the Law on Foreign 
Trade Management regarding foreign trade development measures), issued on 1 March 2018; 
(ii) Prime Minister's Decision No. 12/2019/QD -TTg (on amendment and addition to a number of 
articles of the Prime Minister 's Decisions on construction, management, and implementation of the 
National Trade Promotion Program issued by the Prime Minister's Decision No. 72/2010/QD -TTg), 
issued on 26  February 2019; and (iii)  MOIT Circular No. 11/2019/TT -BCT (Guiding the 
Implementa tion of Trade Promotion Activities for Foreign Trade Development under the National 
Program on Trade Promotion), issued on 30 July 2019. Decree No. 28/2018/ND -CP aims to: 
contribute to improving the production and business capacity of the business communit y; support 
the development of commercial infrastructure and logistics of foreign trade activities; and cope with 
the changes of import and export markets promptly. The main changes in trade promotion 
programmes compared with previous ones relate to the add ition of the concept of supporting import 
promotion with a view to serving domestic production and exports, and holding trade fairs and 
exhibitions in Viet  Nam for products, materials, equipment imported for manufacturing of exported 
goods, technology prod ucts, and inputs for manufacturing products having competitive positions.49  
3.98.   Specific trade promotion measures under the Program include: (i ) organizing and participating 
in trade fairs and exhibitions abroad; (ii) organizing international trade fairs, exhibitions, and 
conferences in Viet  Nam; (iii) organizing the display, introduction, and export of goods through a 
common store on an e -commer ce trading floor; (iv) organizing overseas trade delegations from 
Viet Nam; (v) assisting foreign business delegations entering Viet  Nam for conducting business or 
discussing investment opportunities; (vi) supporting both developing and existing commercial  
infrastructure and logistics in service of foreign trade activities; and (vii)  organizing the Viet  Nam 
Logistics Forum. Other trade promotion measures include activities supporting R&D, improving the 
quality of product and goods, and training.  
3.99.   The Viet  Nam Trade Promotion Agency under the MOIT has funding from the State Budget for 
the National Program on Trade Promotion of about VND 100 billion per year for the implementation 
of 200 to 250 trade promotion projects. The Program is financially supported onl y by the State; 
other sources provide funds for local trade promotion activities.  
3.100.   As at June 2019, Viet  Nam had four export processing zones (EPZs) with a total land area 
of about 627 hectares. The EPZs are industrial zones specializing in manufacturing go ods for export 
 
47 Decree No. 69/2018/ND -CP replaces Decree No. 12/2006/ND -CP. 
48 Vietrade is a governmental organization responsible for national regulation of trade and investment 
promotion for the development of industry and trade. Other trade promotion organizations in Viet  Nam include 
local trade promotion agencies, trade promotio n agencies under the ministries and branches, and business and 
industry associations. The Viet  Nam Trade Promotion Agency does not manage the funding sources of these 
organizations.  Local trade promotion organizations are allocated part of their annual ope ration budget from 
other sources to carry out trade promotion activities. Non -governmental trade promotion organizations collect 
fees from members and other sources.  
49 Relevant regulations include Decree No.  28/2018/ND -CP, issued on 1 March 2018, and MOF C ircular 
No. 11/2019/TT -BTC, issued on 30 July 2019.  WT/TPR/S/ 410 • Viet Nam  
 
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 to foreign countries or providing services related to import and export activities.50 For companies 
located in the EPZs, the Law on Export Tax and Import Tax and other relevant legislation apply 
preferential treatment according to preferenti al sectors or industries under the Investment Law, 
regardless of whether the enterprises are domestic or foreign.51 Imported materials used in 
production by firms in the EPZs or export processing enterprises52 out of EPZs under a processing 
contract may be nefit from a duty exemption.53 Firms in the EPZs and export processing enterprises 
out of EPZs are exempt from export duties for goods exported to foreign countries. However, goods 
produced in EPZs with imported inputs are subject to import duties, taxes, and formalities if they 
enter the domestic market. According to the authorities, there is no legal requirement for investors 
in the EPZs to transfer technologies or conduct R&D.  
3.101.   Definitions of industrial parks, economic zones, and export processing enterp rises are 
specified in Article  2 of Decree No. 82/2018/ND -CP, issued on 22 May 2018, on the management of 
industrial parks and economic zones.  
3.102.   An industrial zone is an area with a defined geographical boundary, specializing in the 
production of industrial goods and providing services for industrial production, established according 
to the conditions specified in the Decree. Industrial zones include EPZs54 and industrial parks 
(including eco -industrial parks).55 
3.103.   An economic zone is an area with a defined geo graphical boundary, including many 
functional zones, established to achieve the objectives of attracting investment, developing socio -
economic projects, and protecting national defence and security. Economic zones include coastal 
economic zones and border -gate economic zones.56  
3.104.   Currently, there are 361 industrial zones in the country (including industrial zones located 
in the economic zones), of which 273 are operational. The industrial zones cover approximately 
109,000 hectares, of which industrial use ac counts for 79,900 hectares.57 Besides industrial zones, 
Viet Nam has established 43 economic zones, of which 17 are coastal economic zones covering 
 
50 Article  2 of Decree No. 82/2018/ND -CP, issued on 22 May 2018, stipulates that an export processing 
zone is "an industrial zone specialized in the production of exports, providing services for the produc tion of 
exports and carrying out export activities, and so forth. Export processing zones are separated from the 
outside areas according to regulations applicable to non -tariff areas specified in the Law on Export and Import 
Tax". 
51 MOF Circular No. 164/20 13/TT -BTC of 15 November 2013 (on a preferential tariff of import and 
export taxes); MOF Circular No. 182/2015/TT -BTC of 16 November 2015 (on a preferential tariff of import and 
export taxes); Decree No. 122/2016/ND -CP of 1 September 2016 (on the export ta x schedule, preferential 
import tax schedule, and a list of taxable items); and Decree No. 125/2017/ND -CP of 16 November 2017 
(amending and supplementing Decree No. 122/2016/ND -CP of 1 September 2016 (on the export tariff, import 
tariff by list of taxable items, and a list of goods and absolute tax, compound tax, and import tax outside the 
tariff quota).  Article 15 of t he Law on Investment provides general provisions on the beneficiaries of 
investment incentives, including projects belonging to industries, occupations, and areas eligible for investment 
incentives.  
52 An export processing enterprise is an enterprise established and operating in an EPZ or an enterprise 
specializing in the production of products for export and operating in industrial parks or ec onomic zones. An 
export processing enterprise not located in an EPZ is separated from the outside area in accordance with 
regulations applicable to non -tariff zones in the Law on Export Tax and Import Tax.  
53 Article 10 of Decree No. 134/2016/ND -CP. 
54 An EP Z is an industrial zone that specializes in the production of exports, the provision of services for 
export production, and export activities, and is established according to the conditions, orders, and procedures 
applicable to public zones regulations in this Decree. The EPZ is separated from the outside area according to 
regulations applicable to non -tariff zones in the Law on Export Tax and Import Tax.  
55 An industrial park is an area eligible for investment incentives and is entitled to preferential poli cies 
applicable to geographical areas on the list of geographical areas with difficult socio -economic conditions under 
the Investment Law. Industrial zones established in areas on the list of geographical areas with extremely 
difficult socio -economic condi tions are entitled to preferential policies applicable to those areas.  
56 A coastal economic zone is an economic zone formed in the coastal area and the vicinity of the 
coastal area. A border -gate economic zone is an economic zone formed in the land border  area and the area 
adjacent to the land border area with an international border gate or main border gate.  
57 Decree No. 82/2018/ND -CP stipulates that new industrial zones can only be established when the 
industrial use of already -established industrial zon es reaches 60% of their respective surfaces.  WT/TPR/S/ 410 • Viet Nam  
 
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 859,000 hectares (inland and water surface combined), and the remaining ones are border -gate 
economic zones extending over about 760,000 hectares.58  
3.105.   Article  24 of Decree No. 82/2018/ND -CP provides for incentives in industrial parks and 
economic zones. For example, investment in the construction, operation, or rental of an apartment 
building and social infrastru cture works serving workers in industrial zones or economic zones is 
accorded deductible expenses; and investment in the construction of houses, cultural and sports 
works, and social infrastructure works in service of workers working in industrial parks or  economic 
zones is accorded incentives under the law on social housing construction and related laws.  
3.106.   According to the OECD Investment Policy Review 2018, there are three high -tech parks in 
Viet Nam, which are regulated by Decree No. 99/2003/ND -CP, issued  on 28 August 2003. Nearly 
200 projects are established in these parks. They manufacture products or provide services in high -
tech production chains; they are entitled to directly export their products or services. They enjoy 
investment preferences as pres cribed by the Investment Law. They can select their investment forms 
and use their land -use right certificates as collateral with credit institutions.  
3.107.   There also remain three key economic zones (KEZs), which have a larger geographical 
coverage than all zo nes mentioned before. In 2004, an economic development plan for each KEZ 
was enacted for the period up to 2020.59 According to the authorities, industrial/economic zones in 
the Northern KEZ are mostly oriented to the production of computer, electronic, and  optical products, 
and machinery and equipment, and they benefit from their proximity to the Chinese market. The 
Southern KEZ accounts for around half of the country's industrial surface in industrial/economic 
zones, and the zones focus on machinery and eq uipment, textiles and apparel, fabricated metal 
products, and rubber and plastic products. Food processing, fabricated metal products, and other 
non-metallic mineral products are the main sectors in the Central KEZ.  
3.108.   The proportion of industrial output gene rated in industrial zones (including EPZs) was about 
32% in 2019. The authorities state that industrial zones attracted 9,500 domestic projects valued 
at USD 22.3 billion and 9,700 FDI projects for more than USD 195 billion by the end of 2019. The 
performa nce of industrial zones is highly uneven between KEZs; for instance, the occupancy rate is 
substantially lower in the Central KEZ (52%) than in the Northern KEZ (82%) and the Southern KEZ 
(77%) .60  
3.109.   On 22 May 2018, the Government issued Decree No.  82/2018/N D-CP, regulating the 
development and management of industrial zones and economic zones. According to the Decree, 
new industrial zones and economic zones, as well as their subsequent modifications, are subject to 
the approval of the Prime Minister based on a report by the Ministry of Planning and Investment in 
consultation with local and provincial People's Committees. It takes up to 30 working days to prepare 
a report on the establishment of an industrial zone and up to 40 working days for one on an economi c 
zone. The Decree also delegates certain responsibilities to management boards of industrial zones 
as a means to effectively implement one -stop-shop mechanisms. The Decree also imposes a 
minimum use (60%) of the surface for industrial activities in the ex isting industrial zones prior to 
the approval of new ones. The authorities state that the average occupancy rate in operating 
industrial zones reached 71% in 2019, compared with 65% in 2010.  
3.110.   The Government promotes investment for industrial production in industrial zones and 
economic zones located in areas with difficult or particularly difficult socio -economic conditions 
through investment preferences foreseen in the Investment Law.61 These investment incentives may 
consist of a reduced tax rate on enterprise income; an exemption from import duty of fixed assets, 
materials, supplies, and components of the investment project; or an exemption or reduction of land 
rental, land use levy, o r land use tax.  
3.111.   Viet Nam seeks to attract investment in cleaner production and efficient use of resources by 
creating a new type of industrial zone, named eco -industrial parks, for the purpose of economic, 
 
58 Most of the zones are based in the key economic zones, i.e. in South, North, and Central Viet  Nam.  
59 Prime Minister's Decisions No. 145/2004/QD -TTg, No. 146/2004/QD -TTg, and No. 148/2004/QD -TTg. 
60 Rents also d iffer substantially across regions; average rents in SEZs in the Northern and Southern 
regions are twice those observed in the Central region.  
61 Decree No. 82/2018/ND -CP and 2014 Investment Law.  WT/TPR/S/ 410 • Viet Nam  
 
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 environmental, and social benefits. Currently, th ere are three pilot eco -industrial parks; the 
Government encourages existing industrial zones to transform into eco -industrial parks.   
3.112.   In the context of the COVID -19 pandemic, Viet  Nam conducted trade promotion measures 
through online meetings and busines s matching workshops.  
3.2.5   Export  finance, insurance, and guarantees  
3.113.   In Viet  Nam, export credit insurance, import and export goods insurance, and guarantee 
insurance schemes are currently provided by private insurers. State -owned insurance enterprises 
do not provide financial services, insurance, or export guarantees. Accor ding to the authorities, no 
state support is provided to the schemes. These schemes are regulated by, inter alia: the Law on 
Insurance Business (Law No. 24/2000/QH10, issued on 9 December 2000)62; Decree 
No. 68/2014/ND -CP (amending and supplementing a numb er of articles of Decree No. 45/2007/ND -
CP of 27 March 2007, detailing the examination a number of articles of the Law on Insurance 
Business), issued on 9  July 2014; and Decree No. 73/2016/ND -CP (detailing the implementation of 
the Law on Insurance Busines s and the Law Amending and Supplementing a Number of Articles of 
the Law on Insurance Business), issued on 1 July 2016.  
3.114.   Before 15 May 2017, loans extended to export contracts were also provided by the Viet  Nam 
Development Bank (VDB), in accordance with De cree No. 75/2011/ND -CP issued on 30  August 2011. 
The lending interest rate was reported by the Chairman of the VDB Board of Directors to the MOF, 
and enterprises had to implement loan security measures in accordance with the government 
regulations on secur ity transactions. The authorities state that these loans were provided on a 
market basis without a subsidy. On 31 March 2017, the Government issued Decree No. 32/2017/ND -
CP, which entered into force on 15 May 2017 (replacing Decree No. 75/2011/ND -CP), unde r which 
the VDB no longer provides loans to export contractors. The State does not provide any funding for 
export credit.  
3.115.   During the review period, a guarantee insurance scheme (trade credit insurance) for exports 
was introduced in 2014, based on Decree N o. 68/2014/ND -CP. The trade credit insurance is 
underwritten by the MOF. In order to support insurance companies during the COVID -19 pandemic, 
the MOF reduced the rate of contribution to the scheme in 2020 from 0.15% to 0.05% of the 
insurance premium.  
3.3  Measures Affecting Production and Trade  
3.3.1   Incentives  
3.116.   The Government provides different forms of incentives, including investment incentives 
mainly through tax reductions, sectoral and support programmes by the VDB including interest 
subsidies, and support measu res to SMEs, the fisheries sector, and high -tech sectors.  
3.117.   The 2014 Investment Law sets out the eligibility criteria and sectors for investment 
incentives.63 In general, incentives are accorded to new projects (excluding mergers and 
acquisitions), although  expansions of projects not previously benefitting from incentives may be 
granted incentives under specific conditions. Eligibility for incentives includes projects in 
geographical areas with difficult or extremely difficult socio -economic conditions and t hose in 
industrial zones.64 Investment projects valued at VND 6 trillion or more, those disbursing at least 
VND 6 trillion within three years of obtaining their investment certificate, or rural investment projects 
employing at least 500 workers are also el igible for incentives. Incentives are granted for the 
 
62 Government Portal, Legal Normative Documents . Viewed at: http://vbpl.vn/TW/Pages/vbpqen -
toanvan.aspx?ItemID=49 .  
63 Encouraged sectors in the Investment Law are high tech, science and technology , renewable 
energies, electronic products, and key m echanical products in agricultural machinery, automobiles, and 
shipbuilding, supporting industries, software production, processing of agricultural and aquatic products and 
related biotechnology products, waste management, infrastructure development, educa tion, healthcare, sport 
and culture, and microfinance institutions.  
64 Investment projects in mineral exploitation and in the production and trading of goods and services 
subject to special consumption tax (except for automobile production) are not eligible  for the incentives 
attributed to these areas.  WT/TPR/S/ 410 • Viet Nam  
 
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 duration specified in the initial investment plan, and requirements for incentives are to be met during 
the project's entire lifetime. Specific investment incentives are implemented in accordance with t he 
Law on Corporate Income Tax65, as well as other laws on taxation including the Law on Export Tax 
and Import Tax, the Law on Value Added Tax66, and the Law on Personal Income Tax.  
3.118.   The main types of incentives include the reduction of the corporate incom e tax, which is 
levied at the general rate of 20%.67 A preferential rate (17% for 10 years) applies to investment 
projects starting from the year they generate their first revenue.68 Investors may be granted tax 
holidays, which involve an exemption for the  first two to four  years since their start of operations, 
and a 50% reduction for the subsequent four to nine years. Specific durations and eligibility criteria 
for tax exemptions and reductions are described in Articles 19 and 20 of MOF Circular 
No. 78/20 14/TT -BTC. Other incentives may include exemptions on import duties on goods used to 
create fixed assets and on unavailable domestically materials for project implementation, and 
exemptions or reductions on land rental, and land use levies and taxes.  
3.119.   Besid es investment incentives in the Investment Law and other relevant laws, investors 
participating in significant public -private partnership (PPP) projects can benefit from incentives 
described in Articles 61 to 66 of Decree No. 63/2018/ND -CP (property mortga ge and ownership, 
guarantees on land use, foreign currency availability, provision of public services, and dispute 
settlement).  
3.120.   Over the years, the VDB has financed numerous programmes and projects assigned by the 
Government69, and provided credit guarante es for SMEs to receive loans from commercial banks. 
Eligible projects are announced each period, and the VDB prepares internal procedures for the 
appraisal of its lending decisions. Since 2009, more than 2,500 enterprises have applied for SME 
credit guaran tees totalling VND 60 trillion; the VDB has issued over 1,500 certificates for credit 
guarantees totalling VND 10.7 trillion. The VDB also implemented other tasks assigned by the 
Government, such as providing enterprises in difficulty with working capital to ensure the payment 
of salaries during the financial crisis.70 
3.121.   Viet Nam did not submit subsidy notifications to the WTO between September 2015 and 
February 2020, when it notified details of support programmes from 2012 until the present.71 The 
notificati on does not contain data on the programmes' subsidy per unit. The authorities state that, 
due to limited resources, they were not able to collect the data.  
3.122.   Law No.  04/2017/QH14 (Provision of Assistance for Small and Medium -sized Enterprises), 
issued on 12  June 2017, and entered into force on 1 January 2018, stipulates support measures 
such as access to credit and credit guarantee funds to SMEs, and reductions or exemptions in land 
and water surface rents and use levies. Corporate income taxes can be reduce d for companies 
investing and trading in production and distribution chains heavily populated by SMEs. Eligible SMEs 
are defined in Article  4 of the Law, according to their total capital or revenue and the number of 
employees; beneficiaries are SMEs origin ated as household business, creative start -ups, innovative 
 
65 Law No. 14/2008/QH12 on Corporate Income Tax was amended by Law No.  32/2013/QH13, issued 
on 19 June 2013.  
66 Law No. 13/2008/QH12 on Value Added Tax was amended by Law No.  31/2013/QH13, issued on 
19 June 2013 .  
67 Rates applied to the prospecting, exploration, and mining of rare natural resources, crude oil, and 
natural gas range from 32% to 50%, depending on the specific project and business establishment.  
68 Investment in social sectors such as education and h ealth benefits from a lower rate (10%) up to 
15 years.  
69 Examples of these funding activities are the construction of canals, afforestation, power generation, 
sanitation plants, healthcare facilities, investments in the production of cement, and outward investment. 
Established in 2006, the VDB is a non -profit i nstitution with chartered capital of VND  30 trillion (as at the end 
of 2017). The compulsory reserve ratio of the VDB is 0%, and its solvency is guaranteed by the Government. 
The VDB raises capital mainly from the state budget (approximately VND  25 trillion), but it also receives funds 
from other sources. The Government entrusted the VDB with the disbursement and management of official 
development assistance  (ODA) loans, which related to 380 projects with a total commitment of 
USD 13.8 billion at the end of  2019.  
70 For example, Prime Minister's Decisions No.  14/2009/QD -TTg, No. 30/2009/QD -TTg, and 
No. 60/2009/QD -TTg supported enterprises facing difficulties during the 2008 financial crisis through credits by 
the VDB. These regulations are no longer in force.  
71 WTO documents G/SCM/N/284/VNM (G/SCM/N/315/VNM), 28 February 2020, and 
G/SCM/N/343/VNM, 27 February 2020.  WT/TPR/S/ 410 • Viet Nam  
 
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 start-ups, and SMEs participating in processing and industrial clusters or value chains. The SME 
Development Fund, established by Decree No. 39/2019/ND -CP of 10 May 2019, offers loans to SMEs 
at lower interest rates than those of commercial banks. Loans through the Fund can cover up to 
80% of investment capital for a project with an interest rate 20% lower than the lowest commercial 
loan interest rate for a term up to seven years.  
3.123.   There are also ind ustry-specific incentives, such as those under Decree No.  111/2015/ND -
CP (on developing supporting industries), issued on 3 November 2015 (Section 4.3). Fisheries 
Development Policies provided support measures to the sector, such as credits for new vessels , 
subsidized accidental insurance, and tax exemptions between 2015 and 2018 (Section  4.1.3).72 
Between 2017 and 2019, solar power projects benefitted from lower corporate income tax, 
exemption on import duties, lower land rents, and a selling price of elec tricity generated above the  
average retail price. Currently, a support programme for wind power energy offers similar benefits 
for projects between 2019 and 2021.  
3.124.   Decree No. 13/2019/ND -CP provides further details on the preferential treatment for science 
and technology enterprises, such as corporate tax cuts and exemptions, credit incentives, and 
exemption or reduction in land and water surface lease fees. Currently, Viet  Nam has more than 
380 firms certified as science and technology enterprises, of which 43 are considered as high -tech 
enterprises.73  
3.125.   On 17 June 2020, Parliament adopted the new Investment Law (No.  61/2020/QH14), which 
entered into force on 1 January 2021.74 Some changes to incentives will apply. Article  15 adds two 
groups (creative start -ups, innovation -related centres, and R&D centres; and trading in the product 
distribution and supporting technical facilities for SMEs) as potential beneficiaries for invest ment 
incentives. Article  20 stipulates that the Government may grant special investment incentives for 
projects generating a great impact on socio -economic development and disbursing more than 
VND 3 trillion (in innovation centres and R&D centres) or VND 3 0 trillion (in other sectors and 
businesses) of investment capital in the first three years of the project.  
3.126.   Following the onset of COVID -19 pandemic, Viet  Nam issued a number of legal documents 
with the aim of alleviating the impact of the pandemic on ente rprises. Decree No. 41/2020/ND -CP, 
issued on 8 April 2020, extends the time limit for payment of VAT, corporate income tax, and land 
rental. The National Assembly's Resolution No. 116/2020/QH14 and Decree No.  114/2020/ND -CP 
apply a 30% reduction of corpora te income taxes for 2020 to enterprises, cooperatives, non -business 
units, and other organizations with annual turnover of less than VND 200 billion. A 10% temporary 
discount in electricity bills for two periods of three months in 2020 was applied by MOIT Official 
Dispatches No.  2698/BCT -DTDL and No.  9764/BCT -DTDL.75 
3.3.2   Standards and other technical requirements  
3.127.   During the review period, the overall regulatory framework for standards and technical 
regulations remained largely unchanged76; recent legislative ch anges concern, inter alia , the 
adoption of decrees and circulars implementing a more participatory development of standards, 
compliance with international conventions, and a new regulation on labelling. Furthermore, new laws 
on environmental protection and  construction also were enacted and have some impact on technical 
standards in these fields.  
3.128.   The 2006 Law on Standards and Technical Regulations77, as amended, stipulates that the 
Ministry of Science and Technology (MOST) is responsible for issuing and man aging standards; its 
Directorate for Standards, Metrology, and Quality (STAMEQ) is the national standardization body. 
 
72 WTO documents G/SCM/N/284/VNM (G/SCM/N/315/VNM), 28 February 2020, and 
G/SCM/N/343/VNM, 27 February 2020.  
73 Prime Minister's Decision No. 19/201 5/QD -TTg prescribes the criteria determining high -tech 
enterprises, in addition to criteria specified in Article  75 of the 2014 Investment Law. Total expenditure in R&D 
and the proportion of employees with a university or higher qualification are some of t he requirements 
stipulated by the Decision.  
74 Baker McKenzie, Vietnam: New Investment Law and Draft Guiding Decree , 27 July 2020. Viewed at: 
https://www.lex ology.com/library/detail.aspx?g=75ce815f -0e3f-4f5f-94f8-e719fb053ac4 .  
75 The periods covered by this benefit were April to June and October to December 2020.  
76 Standards are voluntary; technical regulations are mandatory.  
77 Law No. 68/2006/QH11, amended by  Law No. 35/2018/QH14.  WT/TPR/S/ 410 • Viet Nam  
 
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 Ministries prepare draft rules on standards and standards -related issues on goods under their 
responsibility, and they must consult with S TAMEQ on their draft national standards prior to their 
approval. Several subsidiary bodies under the STAMEQ are responsible for conformity assessment, 
quality system certification, product certification, accreditation of testing and calibration 
laboratorie s, supervision of quality requirements for goods, and other matters related to standards 
and technical regulations (Chart 3.3).  
Chart 3.3 Standards organizational structure in the Ministry of Science and Tech nology , 
2020  
 
Source:  Information from the authorities; and STAMEQ, Organization Structure . Viewed at: 
https://tcvn.gov.vn/organization -structure/?lang=en . 
3.129.   Several ministries are responsi ble for standards, technical regulations, conformity 
assessment procedures, and other measures related to technical requirements. These include the 
MOST and the Ministries of: Industry and Trade; Agriculture and Rural Development; Information 
and Communica tion; Natural Resources and Environment; Transport; Health; Education and 
Training; Labour, Invalids and Social Affairs; Finance;  Culture, Sports and Tourism; National 
Defence; Public Security; and Construction. The MOST is responsible for announcing the p ublication 
of national standards on the STAMEQ's website78, keeping an updated repository of valid standards 
in Viet  Nam79, and coordinating the development of standards and technical regulations with the 
other ministries for products and services in its a reas of competence. The MOST is also responsible 
of preparing five -year and annual plans on the formulation of national standards with the concerned 
ministries and agencies. Since 2009, the STAMEQ has adhered to the Code of Good Practice for the 
Preparatio n, Adoption and Applications of Standards in Annex 3 to the TBT  Agreement.80 
3.130.   The TBT Viet  Nam Office within the STAMEQ remains the notification authority and enquiry 
point for WTO TBT -related issues.81 The Office coordinates a network of domestic enquiry p oints and 
inter-agency committee for TBTs as established by Prime Minister's Decision No.  46/2017/QD -TTg. 
 
78 STAMEQ, Dissemination of National Standards  (in Vietnamese). Viewed at: 
https://tcvn.gov.vn/category/pho -bien-phap-luat/. 
79 STAMEQ, Search Module for National Standa rd (in Vietnamese). Viewed at: 
http://tracuu.tcvn.vn/sdomain/front/viet -nam-standard . 
80 WTO document G/TBT/CS/N/175, 20 February 2009.  
81 WTO, TBT-IMS Portal . Viewed at: http://tbtims.wto.org/en/NationalEnquiryPoints/Search . 
WT/TPR/S/ 410 • Viet Nam  
 
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 The STAMEQ represents Viet  Nam in international and regional organizations on issues related to 
technical requirements (Table 3.10).  
3.131.   Between June 2013  and June 2020, Viet  Nam submitted 152 notifications, covering a large 
variety of products, to the WTO TBT Committee.82 During the review period, four specific trade 
concerns (STCs) were raised in the Committee. Three of these STCs were raised in 2017: one was 
related to volumes of alcoholic beverages allowed to be imported for carrying out conformity 
assessments83, another concerned the vehicle type approval certificates and emission, quality, and 
safety inspection for every lot of imported cars84, and the third related to provisions of the Law on 
Cybersecurity. In May 2020, an STC was raised concerning mandatory quality management for 
products and goods under responsibility of Ministry of Information and Communications.85 
Table 3.10 The STAMEQ in international and regional standards organizations , 2020  
Organization  Status  Date  
International    
International Organization for Standardization (ISO)  Member  1977 
Global Organization on Barcodes and Numbering (GS1)  Member  1995 
International Electrotechnical Commission (IEC)  Associate member  2002 
International Organization for Legal Metrology (OIML)  Member  2003 
General Conference on Weights and Measures (CGPM)  Associate member  2003 
WTO Technical Barriers to Trade Committee (WTO/TBT)  Member  2007 
International Accreditation Forum   Member  2008 
Regional    
Pacific Area Standards Congress (PASC)  Member  1992 
Asia Pacific Metrology Programme (APMP)  Member  1992 
Asia Pacific Quality Organization (APQO)  Member  1994 
ASEAN Consultative Committee for Standards and Quality (ACCSQ)  Member  1995 
Asian Pacific Legal Metrology Forum (APLMF)  Member  1995 
Asian Productivity Organization (APO)  Member  1996 
Asia-Europe Meeting/Trade Facilitation Action Plan/Standards and 
Conformity Assessment (ASEM/FTAP/SCA)  Member  1996 
APEC Subcommittee on Standards and Conformance  Member  1998 
Source:  STAMEQ, International Cooperation , viewed at: https://tcvn.gov.vn/international -
cooperation/?lang=en ; and international and regional organizations listed in the table.  
3.132.   The 2006 Law on Standards and Technical Regulations86 remains the  main legal basis for 
standards and technical regulations and seeks to promote harmonization of national standards with 
international ones. International, regional, and foreign standards must be used as the basis for the 
formulation of technical standards and technical regulations, unless they are not suitable to Viet  Nam 
(because of its geography, climate, and technical or technological characteristics), or they affect its 
national interests. The main laws, decrees, and decisions by the Prime Minister that  cover standards 
and technical regulations are listed in Table A3.8. Besides these, some ministerial circulars and 
ministerial decisions provide guidance on the implementation of laws, decrees, and Prime Minister's 
decisions.87 The key regulations for stan dards planning, elaboration , appraisal, publication, and 
 
82 In 2019 and 2020, the notifications covered the following products: transport equipment (road 
vehicles and railway material), batteries, iron and steel products, lifts and escalators, petroleum products, 
spices and condiments, chemical products (paints, wood -protecting chemicals, disinfection products, etc.), 
sugar and sugar products, domestic electrical appliances, and telecommunication equipment.  
83 WTO document G/TBT/N/VNM/86 of 26 August 2016, related to Decree No.  105/2017/ND -CP. 
84 WTO documents G/TBT/N/VNM/116 of 7 March 2018, G/TBT/N/VNM/116/Add.1 of 
25 November  2019, G/TBT/N/VNM/116/Add.2 of 28 April 2020, and G/TBT/N/VNM/140 of 6 April 2019, 
notifying Decree No.  116/2017/ND -CP on business requirements for manufacturing, assembly and imports of 
automobiles, automobiles' warranty, and maintenance services.  
85 WTO notifications G/TBT/N/VNM/161 of 19 February 2020 and G/TBT/N/VNM/161/Add.1 of 
3 June 2020, notifying the issuance of Ministry of Information and Communication Circular No.  05/2019/TT -
BTTTT.  
86 Law No. 68/2006/QH11, as amended by Law No. 35/2018/QH14.  
87 A number of ministerial circulars were issued during the review period to promulgate pa rticular 
standards and technical regulations, including Ministry of Transport (MOT) Circular No. 45/2019/TT -BGTVT 
promulgating three national technical regulations on batteries, engines used for electric bicycles, and motors 
used for electric motorcycles a nd mopeds; MOT Circular No. 88/2015/TT -BGTVT promulgating the national 
technical regulation on technical safety quality for trailers and semi -trailers; and MOST Circular 
No. 22/2015/TT -BKHCN promulgating and implementing the national technical regulation o n gasoline, diesel 
fuel, and biofuel.  WT/TPR/S/ 410 • Viet Nam  
 
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 implementation include Circular No.  21/2007/TT -BKHCN Guiding the Formulation and Application of 
Standards (as revised by Circular No.  29/2011/TT -BKHCN) and Decision No.  22/2007/QD -BKHCN of 
the MOST, promulgating the regulation on organization and operation of the Technical Board for 
National Standards. More recently, Decree No.  78/2018/ND -CP aims to broaden the participation of 
technical committees developing national standards, notably by including a ssociations, enterprises, 
and consumers, and it aims at ensuring the compliance of national standards and technical 
regulations with international conventions signed by Viet  Nam.  
3.133.   In Viet  Nam, there are two types of standards – national standards ( Tieu chua n Viet  Nam 
(TCVNs)), and company/organization standards ( Tieu Chuan Co So  (TCCSs))88 – and two types of 
technical regulations – national technical regulations (QCVNs) and local technical regulations 
(QCDPs).89 Company/organization standards may serve as the basis for the development of national 
standards. A specific standard or a part of it becomes mandatory when it is invoked in a legal 
document or technical regulation.  
3.134.   Draft national standards are prepared by  technical committees organized by the relevant 
ministries, the Viet  Nam Standards and Quality Institute in the STAMEQ (VSQI), organizations, and 
individuals. The drafts are based on proposals from government agencies or the private sector. The 
VSQI is res ponsible for organizing the development of TCVNs and related consultations90, providing 
secretarial support for the technical committees, and planning standardization activities. In 2020, 
authorities reported that there were 139 national standards technica l committees and 54 sub -
committees. Draft TCVNs are published on the VSQI website91 with 60 -day comment periods.92 
Interested foreign parties can consult draft standards on request. Based on comments, revisions 
should be finalized in 120 days and, if a dis agreement between interested parties persists, the MOST 
shall report to the Prime Minister for their consideration and decision. A repository of valid standards 
in Viet  Nam is available online.93 Each year, the VSQI publishes a work -programme listing, whic h is 
regularly updated. The plan for 2020, approved by Decision No. 4099/QD -BKHCN of the MOST, 
includes 770 standards being prepared in various technical committees, proposed by different 
government ministries.  
3.135.   Viet Nam has around 12,888 TCVNs in effect, o f which 60% were harmonized94 with 
international, regional, or foreign standards (up from 40% in 2013). This result is in line with the 
objectives set by Prime Minister's Decision No. 712/QD -TTg approving the National Programme on 
Products and Goods Produc tivity and Quality.  
3.136.   The VSQI also provides support for the development of technical regulations (QCVNs), which 
are developed by drafting committees composed of government agencies and experts. Proposals for 
the QCVNs are published on the official websites  of the relevant ministries, and technical committees 
hold seminars for further public consultation and dissemination. Interested parties can comment 
either in their capacity as members of the technical committee or through comments to the technical 
commit tees. Draft technical regulations are shared with WTO Members through the TBT Viet  Nam 
Office. In case the parties do not agree on the evaluation, the promulgating agency of the national 
technical regulation shall report to the Prime Minister for their con sideration and decision. The final 
 
88 Company/organization standards (TCCS) are developed independently by organizations; the STAMEQ 
has no direct involvement, although it issues guidelines (Circular No. 21/2007/TT -BKHCN) on how standards 
should be devel oped. TCCSs must not contradict technical regulations and other relevant regulations; their 
publication is the responsibility of the issuing organization. Authorities report that enterprises in Viet  Nam 
frequently use TCCSs in their own businesses.  
89 Local technical regulations (QCDPs) are developed by local authorities, e.g. Chairpersons of People's 
Committees, to enforce compulsory application within local management of specific products, goods, services, 
processes, and local environmental requirements (L aw No. 68/2006/QH11, Article  32, and MOST Consolidated 
Document No.  09/VBHN -BKHCN).  
90 Decree No. 78/2018/ND -CP stipulates that relevant scientific and technological organizations, 
regulatory bodies, associations, enterprises, consumers, and experts must be  part of the development of 
standards.  
91 STAMEQ’s Standards and Quality Institute, National Standard Data Portal  (in Vietnamese). Viewed at: 
http://tieuchuan.vsqi.gov.vn . 
92 The duration for consultations might be shortened in urgent circumstances related to health, safety, 
or the environment.  
93 STAMEQ, Search Module for National Standard  (in Vietnamese). Viewed at: 
http://tracuu.tcvn.vn/sdomain/front/viet -nam-standard . 
94 Viet Nam assesses harmonization with international standards in accordance to its national standard 
TCVN 6709 -1:2007, which adopts the ISO/IEC Guide 21 -1:2005.  WT/TPR/S/ 410 • Viet Nam  
 
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 QCVNs are published on the official websites of the relevant ministries, normally six months before 
they become effective.95 In addition, the MOST publishes an annual catalogue of new technical 
regulations.  
3.137.   The authoritie s state that there are 23 local technical regulations (QCDPs), which provide 
further details on national regulations to meet local needs. Some examples of QCDPs include food 
safety conditions for dried fish and fish sauce in An Giang province, wine process ing in Tra Vinh 
province, tea tree oil production in Hue, and waste water treatment in Bac Ninh province.  
3.138.   Under the Law on Products and Goods Quality, products and goods are classified in two 
groups. Products "incapable of causing unsafety" (Group 1) are d istinguished from those "capable 
of causing unsafety" (Group 2). "Those products and goods which, under rational conditions of 
transportation, storage, preservation and use for proper purposes, can latently cause harms to 
humans, animals, plants, assets or  the environment" belong to Group 2, while all other products 
belongs to Group 1.96 Decree No. 74/2018/ND -CP states that the goods' capability of causing 
"unsafety" shall be determined based on their chemical, physical, and biological nature; their 
functio nal structure and principles; and their transportation, warehousing, storage, and usage 
conditions.97 Products in Group 1 are subject to quality control on the basis of standards announced 
by producers. Products in Group 2 are controlled on the basis of re levant technical regulations from 
the competent state agencies, which shall also specify the method and procedures for conformity 
assessment.98 Different ministries are responsible for the quality control of goods under their 
responsibility, and for issuin g lists of goods potentially causing "unsafety" and subject to conformity 
assessment through mandatory certification, quality inspection, and testing (Table 3.11).  
3.139.   Producers and importers must fulfil requirements concerning conformity assessment before 
selling their products freely in the market, and measures for domestically manufactured and 
imported products are similar. Conformity must be declared using the results of assessments carried 
out at the discretion of producers and importers, certifications by  legally registered or recognized 
certification bodies, or certifications by legally designated certification bodies.  Importers must 
register for inspection using a specific form99 and include certified copies and other documents 
related to their registrat ion, according to the method for conformity declaration. If a laboratory test, 
certification of conformity, or certification of inspection is required, importers must submit these 
documents to the inspection authority within 15 working days of the date of such customs clearance. 
Results by foreign laboratories and foreign certifications can be used for conformity assessment 
procedures in Viet  Nam; however, a unified list of recognized foreign laboratories and certifications 
does not exist, as this informati on is separately handled by each line ministry. Relevant agencies 
are responsible for running market surveillance or monitoring schemes for the products under their 
management.  
3.140.   Decree No.  107/2016/ND -CP (as revised by Decree No.  154/2018/ND -CP) prescribes the 
conditions for conformity assessment services in Viet  Nam, as well as the duties and responsibilities 
of management agencies; the Decree replaces previous MOST Circulars100 on these matters. The 
Bureau of Accreditation of the MOST runs the Viet  Nam Labo ratory Accreditation Scheme (VILAS), 
the Viet  Nam Certification Accreditation Scheme (VICAS), and the Viet  Nam Inspection Scheme 
(VIAS). By 2020, the VILAS had accredited more than 1,300 laboratories, including 7 laboratories 
abroad. Laboratories in ASEAN countries for electrical and electronic laboratories were recognized 
under the ASEAN Sectoral Mutual Recognition Arrangement for Electrical and Electronic Equipment 
Framework (ASEAN EEE MRA). The VICAS has accredited 72 certification bodies; and the VIAS h as 
accredited 84 verification and inspection organizations.  
 
95 The MOIT is responsible for  the implementation of 45 QCVNs, of which 21 were issued after 2013. 
Other ministries and agencies are responsible for the implementation of QCVNs in their respective domains.  
96 Article  3 of the Law on Products and Goods Quality.  
97 Goods assigned under man agement by specific ministries are detailed in Article 32 of Decree 
No. 74/2018/ND -CP. 
98 Law on Products and Goods Quality, Decree No. 132/2008/ND -CP, and Decree No. 74/2018/ND -CP. 
Luggage of incoming passengers, goods of diplomatic organizations and individuals, sample products, 
temporary imports for exhibition and promotion, goods temporarily imported to re -export, in -transit goods, 
and raw materials and inputs for export processing are exempt from conformity assessment, among other s. 
99 Form No. 01 in the Appendix to Decree No. 74/2018/ND -CP. 
100 MOST Circulars No. 08/2009/TT -BKHCN, No. 21/2010/TT -BKHCN, and No. 10/2011/TT -BKHCN.  WT/TPR/S/ 410 • Viet Nam  
 
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 3.141.   There are five product certification bodies under the STAMEQ:  
• the Viet  Nam Certification Centre (QUACERT), which helps enterprises with compliance 
with national and international standards and practices, including certification for meeting 
national, foreign, regional, and international standards; and  
• four Quality Assurance and Testing Centres (QUATEST 1, 2, 3, and 4), which are 
responsible for testing imports and exports for compli ance with standards and technical 
regulations.  
3.142.   QUACERT is the certification body responsible for compliance with:  
• Vietnamese standards and technical regulations (including Vietnamese Good Agricultural 
Practices (VietGAP));  
• certification of management syste ms to international standards (ISO 9001, ISO 14001, 
ISO 22000, ISO/IEC 27001, quality management systems for petroleum, petrochemical 
and natural gas industries (ISO/TS 29001), ISO 50001, Occupational Health and Safety 
Assessment Series (OHSAS 18001 and IS O 45001), Good Manufacturing Practices (GMP), 
and Hazard Analysis Critical Control Point (HACCP)); and  
• standards in other countries (American Society for Testing and Materials (ASTM), Japanese 
Industrial Standards (JIS), German Institute for Standardizatio n (DIN), Russian 
Federation's Gosstandart (GOST), British Standards Institution (BSI), and People's 
Republic of China Guobiao (GB)).101  
3.143.   QUACERT, QUATEST 1, and QUATEST 3 are the certification bodies responsible for  electrical 
and electronic equipment under  the ASEAN Sectoral Mutual Recognition Arrangement for Electrical 
& Electronic Equipment (ASEAN EE MRA).  
3.144.   Decree No. 43/2017/ND -CP (on Labelling of Goods) of 14 April 2017 prescribes the contents 
and ways of recording goods produced in or imported to Viet  Nam. Labels must include: the name 
of the product; the name and address of the producer or importer responsible for the good; its 
origin; and other contents according to the nature of the product. For food products, labels must 
show ingredients in order of importance, include production and expiry dates, and warning 
information (if any). For alcoholic beverages, the label must also include shelf life, preservation 
instructions (for wines), and batch identification (if any). Auxiliary labels are allowed on im ported 
goods to show compulsory contents in Vietnamese, while keeping the original labels. Domestically 
produced goods that cannot be exported and are sold in the local market must include an auxiliary 
label with the denomination "Made in Viet Nam" (in bol d). Decree No.  21/2011/ND -CP requires 
energy labels to be affixed to equipment and vehicles pursuant to the Law on Energy Conservation. 
MARD and MOST Joint Circular No. 45/2015/TTLT -BNNPTNT -BKHCN, issued on 23 November 2015, 
provides further details on lab elling requirements applied to foods containing at least 5% of 
genetically modified ingredients.102 
Table 3.11 Goods subject to mandatory inspection and quality control , 2020  
Ministry of Industry and Trade (Cir culars No. 41/2015/TT -BCT and No. 29/2016/TT -BCT) 
Tissue paper products  
Storage tanks and related material for liquified petroleum gas  
Water boilers and heaters  
Chemicals  
Coal and selected minerals for export  
Industrial explosives  
Machines and industrial -specific equipment  
Ministry of Public Security (Circular No. 14/TT -BCA of 2012)  
Fire prevention and fighting equipment  
Technical equipment  
Ammunitions, weapons  
 
101 QUACERT. Viewed at: https:// www.quacert.gov.vn/vi/gioi -thieu-quacert.iso156.html . 
102 Government Portal, Legal Normative Documents (in Vietnamese). Viewed at: 
http://vbpl.vn/TW/Pag es/vbpq -toanvan.aspx?ItemID=94028&Keyword=45/2015/TTLT -BNNPTNT -BKHCN . WT/TPR/S/ 410 • Viet Nam  
 
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 Support instruments  
Ministry of Information and Communications (Circulars No. 04/2018/TT -BTTTT and  
No. 05/2019/TT -BTTTT)  
Telecommunications terminal equipment  
Computers, network and IT equipment  
Radio and transmission equipment  
Ministry of Health (Circular No. 44/2011/TT -BYT)  
Foods  
Pharmaceuticals  
Vaccines  
Medical bio -products  
Cosmetics  
Drug materials  
Drugs for human use  
Domestic chemicals  
Insecticides  
Disinfectants  
Medical equipment and facilities  
Ministry of Agriculture and Rural Development (Circulars No. 50/2009/TT -BNNPTNT, 
No. 50/2010/TT -BNNPTNT, and No. 50/2012/TT -BNNPTNT)  
Plants  
Animals  
Fertilizers  
Animal feeds  
Plant protection drugs  
Veterinary drugs  
Bio-products for use in agriculture, forestry or aquaculture  
Irrigation works and dykes  
Ministry of Science and Technology (Circular No. 01/2009/TT -BKHCN)  
Petrol, diesel, and biofuels  
Motorbike helmets  
Electrical and electronic products  
Electrical wires  
Toys 
Ministry of Transport  
Means of transport  
Loading and unloading means and equipment  
Specialized transport equipment for construction, marine exploration, and exploitation equipment  
Traffic works   
Ministry of Construction  
Civil works  
Industrial works  
Technical infrastructure works   
Ministry of Defence (inspections on goods imported for national security purposes)  
Military equipment and facilities  
Ammunition  
Weapons and products in service of defence  
Defence works   
Note:  The mandatory measures are applied to all goods, irrespective of their origin (i.e. domestically 
produce d, imported, or exported).  
Source:  Information provided by the authorities; the Law on Products and Goods Quality; and various 
ministerial circulars.  
3.3.3   Sanitary and phytosanitary re quirements  
3.145.   The Laws on Food Safety, on Plant Protection and Quarantine, on Animal Health, and on 
Environmental Protection set out the overarching legal framework for SPS -related matters in 
Viet Nam (Table A3.9). Except for the Law on Food Safety, all previ ous legal texts were enacted 
during the review period; plant protection  and quarantine, and animal health were previously 
regulated by relevant ordinances. Other relevant legislation includes the Laws on Crops (Law 
No. 31/2018/QH14, issued on 19 November 2 018), on Livestock (Law No. 32/2018/QH14, issued 
on 19  November 2018), and on Fisheries (Law No. 18/2017/QH14, issued on 21 November 2017), 
as well as decrees on food safety for imported food, on the implementation of the Law on Animal 
Health, on quarantin e of aquatic animals and fishery products, and on fertilizer management. Other 
relevant regulations include MARD Circulars on permitted and banned plant protection products, on 
pesticide management, and on maximum residue levels (MRLs) of pesticides on foo d, and a Decision WT/TPR/S/ 410 • Viet Nam  
 
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 of the Minister of Agriculture and Rural Development on products subject to plant quarantine. These 
have been notified to the WTO; between June 2013 and June 2020, Viet  Nam submitted 84 
notifications to the SPS Committee, but no emergency  notifications.  
3.146.   Several ministries and agencies are responsible for SPS -related matters, including the MARD, 
the MOIT, the Ministry of Health (MOH), and the MOST. Within the MARD, the Directorate of Fisheries 
replaces the former National Directorate of Aqu atic Resources Exploitation and Protection as the 
competent entity for SPS related to fishery products. The Department of Plant Protection (DPP) and 
the Department of Animal Health (DAH) at the MARD remain the other two relevant entities for SPS 
issues.  
3.147.   The national food safety strategy for 2011 -20103 aimed at implementing master plans on 
food safety from production to consumption by 2015, and at controlling food safety over the entire 
food supply chain by 2020. Other specific objectives of the national stra tegy include: (i)  improving 
general knowledge of food safety and food safety practices; (ii)  building capacity for the food safety 
management system; (iii)  improving food safety assurance by producers, processors, and traders 
through certification; and (iv ) effectively preventing cases of acute food poisoning. By 2020, local 
agencies were assigned in all 63 provinces to perform the state management of food safety, 83 food -
inspection laboratories complying with ISO/IEC 17025 standards and 106 food -inspection  facilities 
(some of them belonging to the private sector) operated at the provincial level, certification of 
products and producers by VietGAP or by equivalent standards significantly increased in last five 
years, and rates of unsafe food samples were fou r times lower than in 2017. By 2030, all food 
producers, processors, traders, managers, and consumers are expected to have knowledge of food 
safety practices, and all food production, processing, and trading establishments are expected to 
meet food safety conditions. Risk monitoring, communication, and inspection activities are expected 
to contribute to achieve these objectives.  
3.148.   Importers of food products must provide the authorities with a number of supporting 
documents (Table 3.12). Decree No. 15/2018/ND -CP details food products under the responsibility 
of the MOH, the MARD, and the MOIT. Decree No. 69/2018/ND -CP requires ministries and competent 
authorities to publish detailed lists of goods, including their HS codes, for which a Certificate of Free 
Sale (CFS) from the competent authorities of the exporting country that has been certified by 
consular services is required.104 Appendixes I and IV to MARD Consolidated Document No. 08/VBHN -
BNNPTNT provide detailed lists of products subject to CFS when exported or imported. All products 
containing genetically modified materials, irradiated products, and products that were produced by 
new technologies require a CFS when imported to Viet  Nam.  
3.149.   Goods in Group 2, i.e. those "capable of causing unsafety", must comply w ith procedures for 
quality inspection stated in Decree No.  74/2018/ND -CP and Decree No.  154/2018/ND -CP. Post -
clearance and post -surveillance inspections are specified in the relevant technical regulations or legal 
documents (Circular) of the line ministrie s. The current guidelines for food safety inspection of 
imported plant origin products are specified in MARD Circular No.  12/2015/TT -BNNPTNT, issued on 
16 March 2015.  
Table 3.12 Certificates required for importing food and agricultural products , 2020  
Product  Documents  Basis  Government 
Agency  
Processed food products  Certificate of HACCP, ISO 22000 or 
equivalent  Food safety and hygiene  MOH/VFA  
 Certificate of analysis  Food quality and standards  MOH/VFA  
 Certificate of Free Sale, Health 
Certificate, or equivalent  Food safety and quality  MOH/VFA  
Food for health 
protection, medical 
nutrition, or special diets  Certificate of HACCP, ISO 22000, or 
equivalent  Food safety and hygiene  MOH/VFA  
 Certificate of analysis  Food quality and standards  MOH/VFA  
 Certificate of Free Sale, Health 
Certificate, or equivalent  Food safety and quality  MOH/VFA  
 
103 Prime Minister's Decision No.  20/QD -TTg. 
104 A CFS is a certificate stating that a product is produced and freely sold in the country issuing the 
certificate.  WT/TPR/S/ 410 • Viet Nam  
 
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 Product  Documents  Basis  Government 
Agency  
Nutrition products for 
children up to 36 months 
old Certificate of HACCP, ISO 22000 or 
equivalent  Food safety and hygiene  MOH/VFA  
 Certificate of analysis  Food quality and standards  MOH/VFA  
 Certificate of Free Sale, Health 
Certificate, or equivalent  Food supplemental value 
functioned to improve 
human health  MOH/VFA  
Mixed food additives 
with new uses or uses 
not yet permitted  Certificate of GMP or HACCP or 
equivalent  Food safety and hygiene  MOH/VFA  
 Certificate of analysis  Food quality and standards  MOH/VFA  
 Certificate of Free Sale, Health 
Certificate, or equivalent  Food safety and quality  MOH/VFA  
Feed ingredients  Certificate of GMP, HACCP, ISO, or 
equivalent  Product quality  MARD/DLP  
 Certificate of Free Sale  Product quality and safety  MARD  
 Certificate of Analysis  Product quality, safety and 
hygiene  MARD/DLP  
Plants and plant 
products with minimum 
processing (plant 
genetics including seeds, 
fruit, vegetable, grain, 
oilseeds, forest products, 
etc.) Phytosanitary certificate  Plant health protection  MARD/DPP  
Processed plant products  Export certificate  Plant protection  MARD/DPP  
Irradiated plant products  Phytosanitary certificate   MARD/DPP  
 Certificate of Free Sale   MARD/DPP  
Animals and animal 
products, except meat 
and meat products, and 
live aquatic animals  Health certificate with additional 
requirements depending on the product 
and place or origin  Animal health protection 
and human health 
protection  MARD/DAH  
Dairy products  Certificate of GMP, HACCP, or 
equivalent  Food safety and hygiene  MARD/DAH  
Poultry or porcine meals, 
bovine blood products, 
gelatine (from porcine, 
bovine, hides, and/or 
skins)  Export certificate  Product quality, safety and 
hygiene  MARD/DAH  
Meat and meat products, 
including pork, poultry, 
bovine, and offal  Export certificate  Product quality, safety and 
hygiene  MARD/DAH  
Aquatic animal products 
except live aquatic 
animals  Health certificate (export certificate)  Food safety and hygiene  MARD/DAH  
Note: DAH = Department of Animal Health; DLP = Department of Livestock Production; DPP = Department 
of Plant Protection; MARD = Ministry of Agriculture and Rural Development; MOH = Ministry of 
Health; VFA = Viet  Nam Food Administration.  
Source:  Information provided by the authorities.  
3.150.   Imported and domestically produced foods, other than fresh fruits and meat, require a Food 
Standards Registration Certificate from the Viet  Nam Food A dministration in the MOH, valid for three 
years. The registration dossier for processed products includes: (i)  a CFS, Certificate of Export, or 
Certificate of Health from the competent authority of the exporting country; (ii)  the results of food 
safety tes ting or analysis; and (iii)  a certificate showing that the establishment meets the conditions 
for food safety or Good Manufacturing Practice (GMP) certificate.105 
3.151.   MOH Circular No. 50/2016/TT -BYT prescribes MRLs for different pesticides and their active 
ingredients in plant -based food products, which apply for domestically produced and imported goods.  
3.152.   Imports of plants, plant products, aquatic and terrestrial animals and animal products, and 
processed food products may be inspected; this inspection may includ e an examination of 
 
105 Decree No. 15/2018/ND -CP, Article  7. WT/TPR/S/ 410 • Viet Nam  
 
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 documentation or visual inspection before transportation to quarantine, where samples may be 
taken for laboratory testing.106 
3.153.   The DPP at the MARD is the national competent agency on plant protection in Viet  Nam. It 
has 9 regional sub -departments and 10 centres for plant quarantine, 2 centres for post -entry 
quarantine, 1 centre for plant inspection, 2 centres for testing, and 1 national centre for fertilizer 
testing107; there are also plant quarantine stations at the country's entry points.  
3.154.   To import plants or plant products, the importer must make a declaration to the DPP at least 
24 hours before the import is made and then, within the next working day, the authority will notify 
the location and time to conduct the quarantine. According to Article  26 of the Law on Plant 
Protection and Quarantine, an import consignment of plants must: (i)  be accompanied by a plant 
quarantine certificate from the competent authority of the exporting country; (ii)  be free of regulated 
pests and harmful organism s; (iii)  have an import plant quarantine permit from the PPD for objects 
subject to pest -risk analysis; and (iv)  have packaging that complies with national technical 
regulations. MARD Circular No. 30/2014/TT -BNNPTNT contains the list of objects subject to plant 
quarantine and those subject to pest -risk analysis. The latter includes living plants; fresh fruits and 
bulbs; weeds and weed seeds; beneficial organisms, biological agents, or living organisms harmful 
to plant resources; and objects with a high risk  of carrying a regulated pest.  
3.155.   Decree No. 35/2016/ND -CP requires that imports and exports of animals or animal products 
must be reported to the DAH at the MARD using the necessary documents.  
3.156.   For imports of terrestrial animals and animal products on the qu arantine list in Circular 
No. 25/2016/TT -BNNPTNT, the DAH should reply within five working days, informing the owner of 
the goods which quarantine agency is responsible for conducting quarantine. The duration of the 
quarantine period for terrestrial animal s and animal products may be up to 45 days, and it varies 
according to the risk associated with the terrestrial animal or animal product. For imports from 
countries reported for the first time or with high risks of animal diseases, the DAH will conduct a r isk 
analysis.  
3.157.   The list of aquatic animals and aquatic animal products subject to quarantine and the related 
procedures are set out in Circular No. 26/2016/TT -BNNPTNT, as amended by Circular 
No. 02/2018/TT -BNNPTNT.108 Importers of aquatic animals and animal products must register for 
import quarantine with the DAH. Quarantines can last up to 10 days, but authorities may notify a 
longer duration in a written note justifying the reasons. In addition to the quarantine dec laration, 
the following documents are required: (i)  an export quarantine certificate from the competent 
authorities of the exporting country; (ii)  a copy of a CITES permit for endangered species; and (iii)  a 
copy of an aquatic product import permit issued by the Department of Fisheries. Other documents 
may be required for items not imported for human consumption. The DAH operates a number of 
laboratories for sampling and testing.  
3.158.   Between December 2014 and July 2017, Viet  Nam applied automatic import licensi ng to 
fertilizers (urea, and fertilizers containing nitrogen, phosphorus, and potassium). MOIT Circular 
No. 07/2017/TT -BCT repeals the automatic import licences on these products, and allows their 
importation only through international or main border gates . 
3.159.   Prime Minister's Decision No. 147/2008/QD -TTg (approving the national action plan on the 
acceleration of the implementation of commitments under the agreement on the application of SPS 
measures in performing WTO Member obligations) of 17  November  2008 la unched an action plan to 
meet Viet  Nam's obligations under the SPS  Agreement, which included harmonizing its food hygiene 
and safety, and sanitary and phytosanitary standards with those of Codex Alimentarius , the OIE, 
and the IPPC.109 This Decision states t hat the same standard should be used for exports and domestic 
 
106 MARD Circular No. 33/2014/TT -BNNPTNT.  
107 Plant Protection Department. Viewed at: https://www.ppd.gov.vn/co -cau-to-chuc/so -do-to-
chuc.html . 
108 Circulars detailing products subject to quarantine and banned products for SPS reasons are 
frequently amended or supplemented by the authorities.  
109 Viet Nam is a member of the Codex Alimentarius and the World Organisation for Animal Health 
(OIE), and a contracting party to the Interna tional Plant Protection Convention (IPPC).  WT/TPR/S/ 410 • Viet Nam  
 
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 consumption and sets out goals for improving risk assessment, control measures, and institutional 
capacity.  
3.160.   The national enquiry point for SPS matters is the Viet  Nam SPS Office in the MARD.110 
Decision of the Minister of Agriculture and Rural Development No. 04/2008/QD -BNN of 
10 January  2008 requires relevant agencies for SPS to coordinate with the Viet  Nam SPS Office and 
to operate as a network for notifications.  
3.161.   Since 2013, eight STCs were rai sed at the SPS Committee. Two STCs, initially raised in 2015, 
on restrictions on plant products and fruits were reported as resolved or partially resolved in the 
second semester of 2017; all other STCs remain unresolved. Three STCs were initially raised bu t 
have not been reiterated by Members in subsequent meetings.111 The STCs concerning the 
suspension of groundnut seed imports, the market access for "white" offal, and the import 
restrictions in the draft Law on Animal Protection have been reiterated, at le ast once, by Members.112 
3.162.   Following the onset of the COVID -19 pandemic, Viet  Nam indicates to apply the WHO's 
guidelines on "COVID -19 and food safety: Guidance for food businesses", and the Department of 
Food Safety under the MOH issued guidance on enhancing  food safety for food service providers 
(Official Letter No.  881/ATTP -NDTT) to prevent the spread of the disease.  
3.3.4   Competition policy and price controls  
3.3.4.1   Competition policy  
3.3.4.1.1   Legal and institutional frameworks  
3.163.   During the review period, Viet  Nam amended its Law  on Competition. The new Law 
(No. 23/2018/QH14) entered into force on 1 July 2019, and repealed the previous Law 
(No. 27/2004/QH11).113 Two implementing decrees were issued by the Government, namely, the 
Decree on Sanctioning Administrative Violations in th e Competition Area (No. 75/2019/ND -CP, 
effective on 1 December 2019)114 and the Decree on Detailing a Number of Articles of the Law on 
Competition (No. 35/2020/ND -CP, effective on 15 May 2020).115 The new Law on Competition has 
addressed some issues of regul atory deficiencies116; the major amendments included adjusting the 
application scope, revising relevant provisions on determining violations, restricting institutional 
arrangements, and making other changes.  
3.164.   The new Law defines its goals as being to enhance  market access, improve economic 
efficiency and social welfare, and protect consumer interests. Compared with the previous Law, the 
new Law  expressly expanded its coverage to extraterritorial practices that have or may have 
competition -restrictive effects on the Vietnamese market, although this had already been the 
practice for many years under the interpretation of the Vietnamese competition authorities of the 
old Law. The provisions of the new Law apply to all enterprises, individuals, and industry associ ations 
operating either in Viet  Nam or abroad. The new Law also covers the public -utility sector, the public 
non-business sector, and the state -monopolized sector. Under the new Law, exemptions may be 
 
110 WTO, Sanitary and Phytosanitary Information Management System: Enquiry Points/Notification 
Authorities . Viewed at: 
http://spsims.wto.org/en/EnquiryPointsNotificationAuthorities/Search?countryCode=C704 . 
111 They concern the approval of dairy and meat products (2015), the amendment of MRLs in veterinary 
drugs (2018), and general restrictions on imports of fru its, live cattle, and meat (2019).  
112 WTO, Sanitary and Phytosanitary Information Management System . Viewed at: 
http://spsims.wto.org/ . 
113 Revised Law on Competition (in Vietnamese). Viewed at: https://thuvienphapluat.vn/van -
ban/Doanh -nghiep/Law -23-2018-QH14 -on-competition -387952.aspx .  
114 The Decree in Vietnamese is available at: http://congbao.chinhphu.vn/noi -dung-van-ban-so-75-
2019-nd-cp-29759 .  
115 The Decree in Vietnamese is available at: https://thuvienphapluat.vn/van -ban/thuong -mai/Decree -
35-2020-ND-CP-elaborating -on-several -Articles -of-the-Competition -Law-439832.aspx .  
116 Such deficiencies also arose in the OECD  peer reviews. OECD, Peer Reviews of Competition Law and 
Policy: Viet  Nam 2018 . Viewed at: https://www.oecd.org/daf/competition/VietNam -OECD -Competition -Revie w-
2018-ENG.pdf ; and OECD, Investment Policy Reviews: Viet  Nam 2018 . Viewed at: 
https://www.oecd.org/countries/vietnam/oecd -investment -policy-reviews -viet-nam-2017-9789264282957 -
en.htm .  WT/TPR/S/ 410 • Viet Nam  
 
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 granted to some anti -competitive acts if such acts are deemed to enhance the competitiveness of 
Vietnamese enterprises in the international markets; these provisions raised some concerns about 
their application.  
3.165.   A new competent authority, the National Competition Commission (NCC), was established 
by consolida ting two separate authorities (i.e. the Viet  Nam Competition Council and the Viet  Nam 
Competition Authority).117 The NCC is authorized to investigate and adjudicate, review exemption 
requests, monitor economic concentration, and settle complaints about its decisions. The NCC exists 
under the MOIT and is financed through the Ministry's budget. Hence, there is concern over the 
NCC's independence and impartiality, particularly when SOEs are involved in an anti -competition 
case.118 In response, the NCC notes that under the new legal framework concerning SOEs, the MOIT 
is no longer the representative of state ownership; therefore, with ownership transferred out of the 
MOIT, the conflict of interest has been addressed.   
3.3.4.1.2   Anti-competiti ve agreements  
3.166.   The new Law prohibits anti -competitive agreements covering the following conduct: (i)  fixing 
prices; (ii) dividing up of markets; (iii) limiting or controlling production and sale; (iv) bid rigging; 
(v) preventing or restricting market entry of non -parties; (vi) removing non -parties from the market; 
(vii) restricting technology development and investments; (viii) sales or product bundling; (ix) 
preventing parties from dealing with non -parties; and (x) restricting consumer markets or sourcing 
from non -parties.  
3.167.   The new Law removed the threshold for triggering prohibitions under the previous Law 
(previously, the combined market share of parties to an anti -competitive agreement had to be no 
less than 30%119, which was criticized for not preventing anti -competitive conduct that had negative 
impacts on the market but did not reach the threshold). To determine a violation, the NCC assesses 
the specific competition -restrictive effects of an agreement. When it de tects signs of crimes 
prescribed in the Criminal Code, the NCC transfers the file to the competent authorities for criminal 
liability prosecution.  
3.168.   Exemption from the prohibition on anti -competitive agreements can be made if consumers 
benefit from the anti -competitive agreement and the agreement: (i)  promotes technological 
advancement and raises the quality of goods and services; (ii) enhances the competitiveness of 
Vietnamese enterprises on the international market; (iii) promotes the uniform application o f quality 
standards and technical norms of product categories; or (iv) concerns conditions for contract 
performance, delivery, and payment but is not related to price. Exemption requests are reviewed by 
the NCC, and a decision is made within 60 days, or 90  days if the case is complicated. The validity 
of any exemption can be up to five years.  
3.3.4.1.3   Abuse of a dominant market position  
3.169.   The new Law prohibits the abuse of a dominant market position or monopoly position. 
It upholds the market share presumption under the old Law, i.e. an enterprise is considered to have 
a dominant market position if it has a market share of 30% or more. Groups of enterprises are 
considered to have a dominant position if: (i) two enterprises have a total market share of 50% or 
more; (ii ) three enterprises have 65% or more; (iii) four enterprises have 75% or more; or (iv)  five 
enterprises have 85% or more. Any enterprise with less than 10% market share is not considered 
to be a member of a group of enterprises with a dominant market posit ion.  
3.170.   An enterprise or a group of enterprises is considered to have a dominant market position if 
it has significant market power based on the following factors: (i) market share; (ii) financial strength 
and size of the enterprise(s); (iii) barriers to mar ket entry and expansion for other enterprises; (iv) 
 
117 The dual -authority system of the past, under which the Viet  Nam Competition Authority was the 
investigative body and the Viet  Nam Competition Council was the adjudicative body, was considered to be of 
low efficiency and lack sufficient independence to enforce competition legislation. See OECD, Peer Reviews of 
Competition Law and Policy: Viet  Nam 2018 . 
118 Duane Morris LLP, "Vietnam: The New Competition Law – Pragmatic Progress, What You Must Know", 
Lexology , 16 December 2019. Viewed at: https://www.lexology.com/library/detail.aspx?g=b27b089e -ceb1-
497e-97f7-086621247557 .  
119 WTO, Trade Policy Review of Viet  Nam, WT/TPR/S/287/Rev.1, 4 November 2013.  WT/TPR/S/ 410 • Viet Nam  
 
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 capability of accessing and controlling the market for supply, distribution, or sale of goods or 
services; (v) advantages in technology and technical infrastructure; (vi) ownership of and the right 
to pos sess and access infrastructure; (vii) ownership of and the right to use intellectual property 
rights; (viii) ability to switch to the supply of or demand for other relevant goods or services; and 
(ix) special factors in the industry or sector in which the enterprise conducts business.  
3.171.   State -controlled enterprises operating in state monopoly fields are exempted from the 
application of the Law when they decide the purchase or sale prices of goods and services, or the 
quantity, volume, and market area of goods  and services, or organize markets related to goods and 
services in the state monopoly domain.  
3.3.4.1.4   Economic concentration  
3.172.   The previous Law prohibited economic concentration activities such as mergers, 
consolidation, and joint ventures, if the combined market s hare of participating enterprises was 
more than 50% of the relevant market, unless: (i) the enterprises remained small or medium -sized; 
(ii) one or more of the participants faced dissolution or bankruptcy; or (iii) the economic 
concentration contributed to  Viet Nam's socio -economic development. Under the new Law, 
prohibited activities are determined by whether such activities have or may have significant 
competition -restrictive effects on the market. Market share is only one factor to be considered.  
3.173.   Factors  that would be taken into consideration in the assessment of significant competition -
restrictive effects include: (i) the combined market share; (ii) the level of concentration before and 
after the concentration activity; (iii) the relationship of relevant  enterprises; (iv) competitive 
advantages resulting from the concentration activity; (v) the probability of a significant increase in 
the price or the profit rate; and (vi) the capability to remove or prevent other enterprises from 
entering the market. The  NCC would also consider the positive effects of an economic concentration 
activity, including those on the development of the industry, the sector, and science and technology, 
according to state's strategic planning, the development of SMEs, and the enhan cement of the 
competitiveness of Vietnamese enterprises in the international market.  
3.174.   Under the previous Law, an economic concentration activity that could lead to a market 
share of 30% or more had to be notified to the authorities before implementation. U nder the new 
Decree No. 35/2020/ND -CP, the notification threshold is determined based on whether: (i) the total 
assets or turnover of relevant enterprises in the domestic market is VND 3 trillion or more; (ii) the 
transaction value is VND 1 trillion or mor e; or (iii)  the combined market share is 20% or more. For 
enterprises in the credit, insurance, and securities sectors, the thresholds are VND 15 trillion in total 
assets, VND  10 trillion in total turnover, or 20% for the combined market share.  
3.175.   Under the new Law, economic concentration is determined by a two -phase process. First, 
the NCC conducts a preliminary review within 30 days from the notification date. Second, where an 
official investigation is required, the NCC completes its investigation and annou nces its decision 
within 90 days, which can be extended by up to 60 days for complex cases. Due to the extraterritorial 
nature of the new Law, foreign companies involved in offshore economic concentration activities that 
impact the Vietnamese market are al so subject to the Law.  
3.3.4.1.5   Penalties, leniency programme, and enforcement  
3.176.   The new Law and the Decree on Sanctioning Administrative Violations in the Competition 
Area (No. 75/2019/ND -CP) increased the financial penalties for violations, compared with the 
previo us Law. The fine for anti -competitive agreements and abuse of a dominant market position 
can be up to 10% of the total turnover of the violating enterprises, and the fine for violating the 
regulations on economic concentration can be up to 5% of the turnov er of the violating enterprises. 
The NCC has the discretion to increase or decrease the fines under certain circumstances specified 
by the Decree. In addition to fines, a range of non -monetary sanctions can be imposed, such as 
revocation of practice licenc es, business licences, or enterprise registrations, or the suspension of 
business activities for 6 to 12 months.  
3.177.   The new Law also established a leniency programme to reduce or exclude penalties for 
enterprises that voluntarily report their violation to th e NCC prior to the investigation. The first three 
applicants for leniency are entitled to a penalty reduction of up to 100%, 60%, and 40%, WT/TPR/S/ 410 • Viet Nam  
 
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 respectively. The leniency programme does not apply to enterprises forcing or organizing other 
enterprises to partici pate in anti -competitive conduct.  
3.178.   Since the new Law's entry into force on 1 July 2019, 20 claims have been filed with the NCC, 
of which 11 were related to unfair trade practices, and 9 to anti -competitive agreements and abuse 
of a dominant market position . The NCC concluded 10 investigations, and found 3 cases of violation. 
There were also 60 economic concentration reviews. The authorities note that the leniency program 
has not been utilized.  
3.3.4.1.6   International treaties and cooperation  
3.179.   Viet Nam is a member of t he ASEAN Experts Group on Competition. It participates in the 
meetings of the International Competition Network and other international working groups on 
competition. Among the FTAs that Viet  Nam has signed and that have come into effect, six 
agreements ha ve separate chapters on competition policy, including the ASEAN -Australia -New 
Zealand Free Trade Agreement (AANZFTA), the Viet  Nam-Japan Economic Partnership Agreement 
(VJEPA), the Viet  Nam –Eurasian Economic Union Free Trade Agreement (VN -EAEU FTA), the 
Viet Nam-Korea Free Trade Agreement (VKFTA), the CPTPP, and the Viet  Nam-EU Free Trade 
Agreement. In general, the chapters on competition in these Agreements include provisions on 
competition authorities, anti -competitive conduct, enforcement procedures, inf ormation security, 
transparency, cooperation, consultation and notification of competition issues, technical assistance, 
and dispute settlement. In addition, the CPTPP Agreement contains provisions on state -owned 
enterprises (SOEs) and subsidies.  
3.3.4.2   Price con trols  
3.180.   Price control remains regulated by the Law on Prices (Law No.  11/2012/QH13, issued on 
20 June 2012) that came into force on 1  January 2013. The general principle of price control in 
Viet Nam is that, while respecting the market mechanism and the righ t of businesses to set their 
own prices, the Government may exercise price regulation to stabilize prices or to protect the 
legitimate interests of business entities, consumers, or the State. Price management is achieved 
mainly through indirect means, such  as the synchronized use of macroeconomic policies and the 
harmonization of supply and demand. According to the authorities, price control measures created 
jobs, increased investment, and contributed to socio -economic development in the period of 
internati onal integration.  
3.181.   During the review period, Viet  Nam issued numerous government decrees and ministerial 
circulars implementing the relevant provisions of the Law and specifying price management 
measures. The Government's regulations, guidelines, policies, measures, and decisions are 
published through press conferences or mass media. The main decrees in this area are included in 
Table 3.13. The MOF at the national level  and the Department of Finance at the provincial level are 
the competent authorities for i mplementing price controls.  
Table 3.13 Decrees on price management, 2020  
Date of adoption  Decree no. Title 
14 November 2013  177/2013/ND -CP Decree on Detailing and Guiding a Number of Articles of the 
Law on Prices  
11 November 2016  149/2016/ND -CP Decree on Amending, Supplementing a Number of Articles of 
Decree No. 177/2013/ND -CP 
24 September 2013  109/2013/ND -CP Decree on Prescribing the Sanctioning of Administrative 
Violations in the Field of Price, Charges, Fees and Invoices  
27 May 2016  49/2016/ND -CP Decree on Amending and Supplementing a Number of Articles 
of Decree No. 109/2013/ND -CP  
30 June 2018  96/2018/ND -CP Decree on Providing Guidelines for Prices of Irrigation Products 
and Services and Financial Support for Use of Public Irrigation 
Products and Services  
Source:  Information provided by the authorities.  
3.182.   The list of goods and services subject to price management is regulated by relevant legal 
documents and concerns essential public goods a nd services for economic activities and life; services WT/TPR/S/ 410 • Viet Nam  
 
- 92 - 
 
 funded by the state budget for social security purposes; and areas that are not commercially 
attractive to private service providers. The list may be reviewed, amended, or shortened to meet 
the require ments of international economic integration.  
3.183.   Price management measures used by the Government include price stabilization measures, 
price fixing, price negotiation, and inspection of the elements of price formation. They apply in the 
same manner to import ed and domestic goods and services, and to different users or different 
groups of companies.  
3.184.   Price stabilization measures are used when prices of goods or services on the list change 
abnormally or the level of change affects socio -economic stability in the  event of a natural disaster, 
fire, epidemic, enemy sabotage, economic crisis, or temporary supply -demand imbalance. Specific 
measures may include regulating the supply and demand balance through goods circulation and 
buying in or selling out national rese rves. The Government may set up a price stabilization fund 
where necessary. Goods and services subject to price stabilization include: (i) refined petrol and oil; 
(ii) electricity; (iii) liquefied petroleum gas; (iv)  nitrogenous fertilizer and NPK fertiliz er; (v)  plant 
protection chemicals; (vi) vaccines preventing diseases for bovine animals and poultry; (vii) kitchen 
salt; (viii) health foods, medical nutrition foods, and supplements, including nutritional products for 
children up to 36 months old; (ix)  edible sugar; (x) paddy and ordinary rice; and (xi)  preventive and 
curative medicines for human use. Examples of  such measures include improving circulation of goods 
in the domestic market; making purchases for national reserves or selling out these reserve s; 
financial or monetary support; establishing a price stabilization fund for certain products; and fixing 
prices or the price frame. According to the authorities, price stabilization is currently applied only to 
refined petrol and oil.  
3.185.   Price fixing is use d to define specific rates, price ranges, or minimum or maximum charges 
by the State. It applies to state -monopolized sectors, important resources, national reserve goods, 
and goods or services for public interest and purchased with the state budget. Goods  and services 
subject to price fixing include: (i) aviation services, including take -off and landing charges, flight 
management, assistance for "flight assurance", and security screening; (ii) telecommunications 
connecting services; (iii) electricity, elec tricity transmission, and electricity system support services; 
(iv) domestic air transport on monopoly routes; (v) land and forests, ground water, and potable 
water; (vi) lease and rent/purchase options for housing built with state funds; (vii) medical car e 
services and education/training services; (viii) national reserve goods, goods or services under state 
plan, goods or services funded by the state budget for the public interest; (ix)  domestically produced 
cigarettes; and (x) lease of state -owned infrast ructure works.  
3.186.   Price negotiation, i.e. the mediation of a governmental authority in price discussions between 
buyers and sellers, can apply to important goods and services where competition is limited on the 
side of the seller and/or buyer. The final price  needs to be agreed upon by the buyer and the seller. 
Inspection of the elements of price formation is applied for goods and services that are subject to 
price stabilization or fixing, and for other goods and services at the request of the Prime Minister, 
ministers, or other high -level officials when prices are changing abnormally. The inspection serves 
to clarify the reasonableness or irrationality of price decisions and aims to enhance transparency 
and to protect legal rights and interests of relevant par ties in specific cases.  
3.187.   Other price management measures include: (i) price declaration by producers or business 
organizations or individuals to the competent authorities; (ii) price posting by producers or business 
organizations or individuals to inform cu stomers; and (iii) publicizing price information, which is 
organized by authorities and relevant business organizations or individuals through press 
conferences, mass media, or other appropriate forms.  
3.188.   The Government is working to establish a national pri ce database for managing and 
regulating prices, especially for the purpose of forecasting market price fluctuations. Phase 1 of the 
database project was put into practical operation, and Phase 2 is under development. It is expected 
that some of the price i nformation will be publicly accessible in the database.  WT/TPR/S/ 410 • Viet Nam  
 
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 3.3.5   State trading, state -owned enterprises, and privatization  
3.3.5.1   State trading  
3.189.   Article  6 of the 2005 Law on Commerce stipulates that the State exercises for a definite time 
its monopoly over commercial activities with respect to selected goods and services or in certain 
geographical areas in order to ensure national interests. On tha t basis, Decree No.  94/2017/ND -CP 
(on goods, services, and areas for execution of state rights in trade activities) was issued on 
10 August 2017. Under the Decree, state agencies have the right to exercise a state monopoly in 
commercial activities directly  or through designating other organizations or individuals to perform 
commercial activities. According to the Decree, industrial explosive materials, gold materials for the 
production of gold bars, cigarette and cigars (imports), national reserve activitie s, and fireworks are 
subject to state -trading requirements.  
3.190.   During the review period, Viet  Nam notified to the WTO its state -trading enterprises 
concerning cigarettes, cigars, newspapers, journals, and periodicals.120 Viet Nam also submitted 
replies to que stions posed in the Working Party on State Trading Enterprises ; in these documents, 
the status of certain companies, including Vinafood I and Vinafood II, concerning rice exports and 
imports, for example, is mentioned.121  
3.3.5.2   State -owned enterprises and privat ization  
3.191.   Data provided by the authorities indicate that, as at 31 December 2018, SOEs in Viet  Nam 
had 1.13 million workers (of which 669,700 were employed in enterprises that were 100% owned 
by the State, and 457,000 worked in enterprises that were more tha n 50% owned by the State), 
accounting for 7.6% of the employees of the corporate sector, down 6.2% over the same period in 
2017. In 2018, SOEs' pre -tax profit was VND  190,357 trillion (of which, 100% SOEs had a pre -tax 
profit of VND 103,014 trillion, and t he business sector with more than 50% state capital had a pre -
tax profit of VND 87,343 trillion).  
3.192.   At the end of 2019, Viet  Nam had 487 SOEs; of which 54 were centrally managed and 433 
were managed by a Provincial People's Committee. Data provided by the a uthorities indicate that 
the number of 100% SOEs fell from 1,309 at the end of 2011 to 487 at the end of 2019. The 
Government continues to hold a controlling stake, i.e. more than 51% of the charter capital, in 185 
enterprises. Table 3.14 shows some large SOEs.  
Table 3.14 Selected large SOEs, 2019  
Name of group  Main business  Financial data  Group structure  Parent 
company 
charter 
capital 
(VND 
billion)  
Viet Nam National 
Oil and Gas Group 
(PetroVietnam)  − Petroleum research, 
exploration, and 
exploitation  
− Oil refinery and 
petrochemical filtration  
− Gas industry  
− Electricity  
− High-quality petroleum 
services  .. Investing in 15 
subsidiaries, 3 joint 
ventures, and 9 associate 
companies  .. 
 
120 WTO documents G/STR/N/15/VNM and G/STR/N/16/VNM, 20 April 2016.  
121 WTO documents G/STR/Q1/VNM/7, 5 March 2020, G/STR/Q1/VNM/6, 9 October 2018, 
G/STR/Q1/VNM/5/Corr.1, 25 September 2018, G/STR/Q1/VNM/5, 31 August 2018,  G/STR/Q1/VNM/4, 
11 January 2018, G/STR/Q1/VNM/3, 8 November 2017, G/STR/Q1/VNM/2, 2 October 2017, and 
G/STR/Q1/VNM/1, 2 June 2016.  WT/TPR/S/ 410 • Viet Nam  
 
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 Name of group  Main business  Financial data  Group structure  Parent 
company 
charter 
capital 
(VND 
billion)  
Viet Nam National 
Coal-Mineral 
Industries Holding 
Corporation 
Limited 
(Vinacomin)  − Coal industry  
− Mineral and industrial 
explosive materials 
industry  
− Power industry  
− Mechanical industry  − Revenue:  
VND 104,644 
billion  
− Profit before 
tax:  
VND 3,856 
billion  
− Profit after tax: 
VND 3,098 
billion  Holding company:  
− Dependent 
accounting units: 27  
− One-member limited 
liability company: 9  
− Joint-stock 
companies: 30  
− Joint venture -
associate enterprises: 
1 35,000  
Viet Nam 
Electricity (EVN)  − Production, 
transmission, 
distribution, and trading 
of electricity  
− Management of 
production, 
transmission, 
distribution, and 
allocation of electricity 
in the national grid  
− Export and import of 
electricity, investment 
and management of 
invested capital in 
electricity p rojects  
− Management, operation, 
repair, maintenance, 
overhaul and upgrade of 
equipment, machinery, 
and automated systems  − Revenue:  
VND 338,127 
billion  
− Profit before 
tax:  
VND 2,107 
billion  
− Profit after tax: 
VND 2,103 
billion  
 Holding company:  
− Dependent 
accounting unit: 31  
− One-member limited 
liability company: 9  
− Joint-stock 
companies: 4  
− Joint venture -
associate 
enterprises: 1  198,279  
Viet Nam National 
Chemical Group 
(Vinachem)  − Production and trading 
of fertilizer, pesticides  
− Mineral exploitation and 
processing to produce 
fertilizer and chemicals  
− Rubber processing  
− Production and trading 
of basic chemicals, 
household chemicals, 
and pharmaceutical 
chemistry  .. Vinachem invests in 23 
subsidiaries. Vinachem 
holds 100% of the 
charter capita l in 4 
subsidiaries, and between 
50%-99% in 19 
subsidiaries.  .. 
Viet Nam Rubber 
Group (VRG)  − Rubber plantation and 
exploitation  − Revenue 
(parent 
company: 
Rubber 
Industry 
Group): VND 
3,877 billion  
− Profit after tax: 
VND 2,591 
billion  Parent company and 24 
subsidiaries:  
− 20 subsidiaries are 
one-member limited 
liability companies  
− 4 non -business units  .. 
Viet Nam Textile 
Group (Vinatex)  − Textile  
− Cotton  
− Clothes manufacturing  − Net revenue 
(consolidated 
data):  
VND 18,986 
billion  
− Profit before 
tax 
(consolidated 
data):  
VND 1,515 
billion  Parent company and 
eight subsidiaries  5,000  
.. Not available.  
Source:  Information provided by the authorities.  WT/TPR/S/ 410 • Viet Nam  
 
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 3.193.   Concerning the governance and management of SOEs in Viet  Nam, a number of laws and 
regulations were issued during the review period, including: (i) the new Enterprise Law (Law 
No. 68/2014/QH13), issued on 26 November 2014, and entered into force on 1  July 2015; (ii) Law 
on Management and Use of State Capital Invested in Production and Bu siness Activities in Enterprises 
(Law No. 69/2014/QH13), issued on 26 November 2014, and entered into force on 1  July 2015; (iii) 
Decree No. 91/2015/ND -CP (on investing state -owned capital in enterprises and managing and using 
capital and assets at enterpr ises) dated 13 October 2015; (iv) Decree No.  32/2018/ND -CP 
(amending and supplementing some articles of Decree No. 91/2015/ND -CP), issued on 
8 March  2018; (v) Decree No. 131/2018/ND -CP (defining the functions, tasks, powers, and 
organizational structure of  the Committee for State Capital Management in Enterprises), issued on 
29 September 2018; (vi) Decree No. 10/2019/ND -CP (on exercising rights and responsibilities of 
owner representatives) issued on 30 January 2019; (vii) Decree No. 126/2017/ND -CP (on 
transforming SOEs and one -member limited liability companies with 100% of charter capital invested 
by state enterprises into joint -stock companies), issued on 16  November  2017; (viii) Prime Minister's 
Decision No. 58/2016/QD -TTg (on the classification criteria  for wholly SOEs, partially SOEs, and the 
list of SOEs undergoing restructuring in the 2016 -20 period), issued on 28 December 2016; 
(ix) Prime Minister's Decision No. 707/2017/QD -TTg (approving the Project "Restructuring of SOEs, 
focusing on state -owned gr oups and corporations in the 2016 -20 period"), issued on 25 May 2017; 
(x) Prime Minister's Decision No.  1232/2017/QD -TTg (approving the List of partially SOEs divesting 
capital in the 2017 -20 period), issued on 17  August 2017; and (xi) Prime Minister's Dec ision 
No. 26/2019/QD -TTg (approving the list of enterprises to be equitized until the end of 2020), issued 
on 15 August 2016.  
3.194.   Between 2016 and 2020, Viet  Nam focused on increasing the value of equitization122 of SOEs 
in accordance with the following docume nts: Prime Minister's Decision No. 58/2016/QD -TTg, 
stipulating that 137 enterprises must be equitized during the period; Official Letter No. 991/TTg -
DMDN, issued on 10 July 2017, approving the list of 137 SOEs to complete equitization between 
2017 and 2020 ; and Prime Minister's Decision No. 26/2019/QD -TTg. The authorities state that the 
Ministry of Planning and Investment will submit to the Prime Minister for approval the plan and 
roadmap for SOE equitization for the 2021 -25 period.  
3.195.   The authorities state t hat policies related to promoting production and competitiveness of 
enterprises in each sector of the economy apply equally to all types of enterprises regardless of 
ownership.  
3.196.   During the review period, the establishment and reorganization of SOEs was gov erned by 
Decree No. 172/2013/ND -CP (on the establishment, reorganization, and dissolution of one -member 
limited liability companies funded by the State, and one -member limited liability companies as a 
subsidiary of a one -member limited liability company ow ned by the State), issued on 
13 November  2013. The Decree has specific provisions on the process of SOE dissolution as follows: 
the person competent to decide on dissolving a company shall set up a Dissolution Council to 
appraise the proposal of the compan y dissolution; after the dissolution decision is made, the one -
member limited liability company shall comply with the provisions of Article  29; the tax authority 
directly managing the tax collection of the company is responsible for issuing documents confi rming 
the fulfilment of tax obligations of the company within five working days of the date of receiving the 
written request for confirming the fulfilment of the company's tax obligations.  
3.197.   Every year, the MOF reports to the Prime Minister on the state cap ital investment in 
enterprises; relevant documents include: Government Report No.  441/BC -CP of 16 October 2017; 
Government Report No. 480/BC -CP of 12 October 2018; Official Letter No. 13784/BTC -TCDN of 
9 November 2018; Official Letter No. 1441/BTC -TCDN of 30 January 2019; Official Letter 
No. 11589/BTC -TCDN of 1 October 2019; Government Report No. 499/BC -CP of 16 October 2019; 
and Official Letter No.  1283/BTC -TCDN of 25 October 2019.  
3.198.   Three documents – Decree No. 126/2017/ND -CP on conversion from SOEs and on e-member 
limited liability companies with 100% of charter capital invested by SOEs, issued on 16  November 
 
122 Equitization involves the transformation of ownership in wholly SOEs and determining which 
enterprises would: (i) remain 1 00% state owned (i.e. no equitization); (ii) be majority state -owned; or 
(iii) have a minority state shareholding or no state ownership at all. Thus, equitization as such does not 
necessarily mean full -scale privatization, and diversity of ownership has be en foreseen, including stakes held 
by the State and by the employees.  WT/TPR/S/ 410 • Viet Nam  
 
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 2017123, Prime Minister's Decision No. 58/2016/QD -TTg on the criteria on classification of 100% 
SOEs and the list of SOEs to be equitized in the period  2016-20, issued on 28 December 2016, and 
Prime Minister's Decision No. 26/2019/QD -TTg – provide equitization rules and list the SOEs to be 
equitized, including Viet  Nam Bank for Agriculture and Rural Development (Agribank), Viet  Nam 
National Coal – Minera l Industries Holding Corporation Limited (Vinacomin), Viet  Nam Posts and 
Telecommunications Group (VNPT), Viet  Nam Mobile Telecom Services (MobiFone 
Telecommunication Corporation), Viet  Nam National Chemical Group (Vinachem), Viet  Nam 
Electricity Power Gen eration Corporation 1 (EVN Genco 1), and Viet  Nam Electricity Power 
Generation Corporation 2 (EVN Genco 2). Pursuant to Decision No. 26/2019/QD -TTg, after the 
equitization and divestment process is completed, it is expected that the State will still own mo re 
than 65% of Agribank, more than 65% of Vinacomin124, between 50% and 65% of VNPT, between 
50% and 65% of MobiFone, between 50% and 65% of Vinachem, less than 50% of EVN Genco  1125, 
and less than 50% of EVN Genco 2.126 The Vietnam Post Corporation (VNPost) and the Vietnam 
Railway Corporation remain enterprises whose 100% charter capital is held by the State.127  
3.199.   Businesses that will remain 100% state -owned include enterprises considered essential for 
national security and the maintenance of public order, for socio-economic development, or to 
guarantee the supply of key services. These enterprises are involved in electricity distribution, grid 
management, multipurpose hydropower, railroad infrastructure, air traffic services and related 
safety services, maritim e safety, public postal services, lottery businesses, and publishing. The 
Government also intends to maintain majority ownership in equitized companies in large and 
"sensitive" sectors of the economy, e.g. in food (rice wholesale), energy (large -scale mine ral mining, 
gas, manufacture of basic metals, petrol and oil importation, electricity retail), telecommunications 
services with a network infrastructure, aviation (airport management, air navigation systems, air 
transport services), and financial and banki ng services.  
3.200.   During the review period, Viet  Nam reduced the degree of state involvement (e.g. reduction 
in state ownership of shares) in food (rice wholesale), energy (large -scale mining, gas, electricity 
generation, and retail), transport (railway transp ort, air transport services), and banking in 
accordance with Prime Minister's Decision No. 58/2016/QD -TTg. Viet  Nam's regulations were 
reviewed and adjusted in order to narrow the number of industries and fields that the State holds 
100% of charter capital ; in which, the State holds 100% of capital mainly in the fields of state 
monopoly, security and defence, public services that non -public sectors do not provide, and social 
security. Specifically, according to Decision No. 58/2016/QD -TTg on the criteria fo r classification of 
SOEs and the list of SOEs to be rearranged in the 2016 -20 period, the State holds 100% of the 
charter capital in only 103 enterprises operating in 11 fields of state monopoly, security and defence, 
public postal services, and key infras tructure such as railway and road.  
3.201.   Between 2011 and 2015, equitization plans for 508 enterprises were approved by competent 
authorities (among them, 14 enterprises in 2011, 25 in 2012, 73 in 2013, 175 in 2014, and 221 in 
2015), with a total actual value o f VND 761.9 trillion, of which the value of state capital was 
VND 189.4 trillion. Between 2016 and 2019, equitization plans for 171 enterprises were approved 
(of which, 66 enterprises in 2016, 70 in 2017, 23 in 2018, and 12 in 2019), with a total enterpris e 
value of VND 443.1 trillion, of which the value of state capital was VND 206.7 trillion.  
 
123 This regulation repealed Decrees No. 59/2011/ND -CP of 18 July 2011, No. 189/2013/ND -CP of 
20 November 2013, and No. 116/2015/ND -CP of 11 November 2015.  
124 Currently, in order to equitiz e Vinacomin, it must handle financial issues and rearrange and handle 
houses and land, according to the provisions of Decree No. 167/2017/ND -CP, issued on 31 December 2017.  
125 The Committee for State Capital Management in Enterprises issued Decision No. 633 /QD-UBQLV on 
31 December 2019 regarding the equitization of EVN Genco 1.  
126 The authorities state that EVN Genco 2 completed the equitization progress in accordance with Prime 
Minister's Decision No. 26/2019/QD -TTg. The Committee for State Capital Managemen t in Enterprises issued 
Decision No. 150/QD -UBQLV on 30 March 2020 on the determination of enterprise value of EVN Genco 2 for 
equitization.  
127 VNPost is designated by the Prime Minister as a public postal service provider (Prime Minister's 
Decision No. 41/2011/QD -TTg, issued on 3 August 2011). According to Prime Minister's Decision 
No. 58/2016/QD -TTg, issued on 28 December 2016, the State holds 100% of the charter capital of enterprises 
operating in the field of "Public postal service".  WT/TPR/S/ 410 • Viet Nam  
 
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 3.202.   After the initial equitization, the State occasionally divested its assets by selling part or all 
of its remaining shares to the public or to a strategic investor. The State Capital Investment 
Corporation (SCIC) continues to carry out divestments.  
3.203.   The authorities state that Viet  Nam has not introduced any measures regarding state 
trading, SOEs, and privatization in response to the COVID -19 pandemic.  
3.3.6   Government proc urement  
3.3.6.1   Overview of legal and institutional framework  
3.204.   Government procurement follows the general principles of competitiveness, fairness, 
transparency, and economic efficiency. Furthermore, it is used as an important tool to achieve 
specific economic or so cial goals, e.g. promoting the development of domestic industries and SMEs, 
and securing domestic employment and women's employment. Viet  Nam also maintains "buy 
national" requirements and preferential treatment for certain suppliers and service providers.  
3.205.   Viet Nam has been an observer in the WTO Committee on Government Procurement since 
December 2012. As it is not a signatory of the WTO  Agreement on Government Procurement (GPA), 
it does not undertake any commitment within the WTO legal framework to open it s government 
procurement market to other WTO Members. Viet  Nam is a party to the CPTPP. As such, it undertakes 
market access commitments in the area of government procurement.128 Viet Nam also signed a 
bilateral free trade agreement with the European  Union,  which contains a government procurement 
chapter.129 The two agreements constitute Viet  Nam's first commitments to open its government 
procurement to foreign suppliers bidding directly from abroad (Section  3.3.6. 4). 
3.206.   Government procurement remains regulated by the Law on Bidding. During the review 
period, the Law was amended by Law No. 43/2013/QH13, which came into effect on 1 July 2014.130 
Decree No. 63/2014/ND -CP (detailing the implementation of several provisions of the Law on Bidding 
and the Law Regarding the Selection of Contractors) was issued on 26 June 2016.131  
3.207.   Compared with its previous version, the amended Law on Bidding expanded its scope of 
application. I t covers: (i) development investment projects financed by state agencies, political 
organizations, socio -political organizations, professional socio -political organizations, socio -
professional organizations, social organizations, units of the people's arme d forces, and public non -
business units; (ii) development investment projects of SOEs; (iii) development investment projects 
with no less than 30% of the capital originating from the state budget or total capital of more than 
VND 500 billion; (iv)  procurem ents financed by the state budget to maintain regular operations of 
state agencies, political organizations, socio -political organizations, professional socio -political 
organizations, social organizations, socio -professional organizations, units of the peo ple's armed 
forces, and public non -business units; (v) the purchase of national reserve goods financed by the 
State; (vi) the purchase of drugs and medical supplies financed by the State, the medical insurance 
fund, or revenues of public medical establishm ents; (vii) overseas direct investment projects of 
Vietnamese enterprises financed by the State with 30% of the capital originating from the state 
budget or total capital of more than VND 500 billion; and (viii) PPP investment projects.  
3.208.   Government procurem ent in the form of PPP is regulated by the Law on Public -Private 
Partnership Investment (Law No. 64/2020/QH14), promulgated on 18 June 2020 and entered into 
 
128 The legal text of the CPTPP is available at New Zealand Foreign Affairs & Trade, Comprehensive and 
Progressive Agreement for Trans -Pacific Partnership Text and  Resources . Viewed at: 
https://www.mfat.govt.nz/en/trade/ free-trade-agreements/free -trade -agreements -in-
force/cptpp/comprehensive -and-progressive -agreement -for-trans-pacific -partnership -text-and-resources/ .  
129 The EU -Viet Nam FTA was signed on 30 June 2019, and entered into force on 1 August 2020. The 
text of the agreement is available at European Commission, EU-Vietnam Trade and Investment Agreements . 
Viewed at: https://trade.ec.europa.eu/doclib/press/index.cfm?id=1437 .  
130 Both the Law on Bidding and the implementing decree are posted on the official website. Viewed at: 
http://muasamcong.mpi.go v.vn. An unofficial English translation of the revised Law on Bidding can be found at 
Vietnam Law in English, Vietnam Bidding Law 2013, Law No. 43/2013/QH13 . Viewed at: 
https://vietnamlawenglish.blogspot.com/2013/11/vietnam -bidding -law-2013-law-no.html .  
131 An unofficial English translation of the Decree is available at: https://vanbanphapluat.co/decree -no-
63-2014-nd-cp-several -provisions -of-the-law-on-bidding -regarding -the-selection -of-contractors .  WT/TPR/S/ 410 • Viet Nam  
 
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 force on 1 January 2021.132 The Law on Public Investment (Law No. 49/2014/QH13) is also relevant 
for regulating government procurement. If the procurements are related to the petroleum sector, 
including services directly related to the search for, exploration of, and mining of petroleum, the 
relevant provisions set forth in the Law on Petroleum prevail. Government procurement projects 
funded by official development assistance (ODA) loans and grants are usually governed by 
regulations of relevant donors or in accordance with international treaties or agreements between 
the Government and its development pa rtners.  
3.209.   The Ministry of Planning and Investment is the authority for general administration of public 
procurement and the management of procurement projects that are under the decision competence 
of the Prime Minister. Other ministries and provincial gover nments are responsible for administering 
procurement projects within their own jurisdictions.   
3.210.   Government procurement is conducted both in centralized and decentralized modes. 
Centralized procurement is organized for goods and services that need to be pro cured in large 
quantities and in similar categories by many entities. Framework agreements can also be used in 
centralized procurement for long -term purchasing agreements between the central procuring entity 
and selected contractors. The maximum period of a framework agreement is three years. The MOF 
is responsible for issuing the national list of goods and services subject to centralized procurement. 
Local governments and SOEs can issue their own lists.  
3.211.   Government procurement is divided into domestic bidd ing and international bidding. 
Domestic bidding is organized for most procurement projects. In the case of domestic bidding, only 
domestic tenderers are allowed to participate in a tender.133 International bidding is organized only 
when: (i) the sponsor of a project requests international bidding; (ii) the concerned goods cannot 
be manufactured in Viet  Nam or Vietnamese goods fail to meet technical, quality, or price 
requirements; or (iii) domestic providers of the services concerned cannot meet performance 
requirements. International bidding is also organized for investment projects in the form of PPPs and 
investment projects with land use, except for limited cases prescribed by the Law on Investment.  
3.212.   All suppliers must register in the national bidding netw ork system before participating in a 
bidding procedure. Foreign suppliers must have a partnership with domestic contractors or be 
sub-contractors of domestic contractors when participating in an international bid, unless domestic 
contractors do not have fu ll capacity to participate in a bidding. This partnership requirement does 
not apply to suppliers from the European Union and the CPTPP countries when participating in 
procurements covered by these two FTAs.  
3.3.6.2   Procurement methods, time periods, bid evaluati on, and bid protests  
3.213.   The revised Law on Bidding provides for eight procurement methods (Table 3.15), with open 
bidding and competitive quotation being the most widely used methods. The other six are: (i)  limited 
bidding; (ii) direct appointment of contract or; (iii) direct procurement; (iv)  self-implementation; (v) 
selection of investors in special cases; and (vi) community participation in project performance. For 
each procurement procedure, the procurement notice must indicate the method to be used and als o 
whether it is a domestic or international bidding.  
 
132 An unofficial English translation of the Law is available at: https://english.luatvietnam.vn/aw -on-
investment -in-the-form-of-public -private -partnership -no-64-2020-qh14-dated -june-18-2020-of-the-national -
assembly -186267 -Doc1.html .  
133 According to the authorities, a domestic tender is a Vietnamese national, or an economic 
organization with no foreign investors as members or shareholders, as pro vided in the Law on Investment.  WT/TPR/S/ 410 • Viet Nam  
 
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 Table 3.15 Procurement methods and conditions for use, 2020  
Procurement 
method  Description/Conditions for use  
Open bidding  The number of participating tenderers is unrestricted.  
Competitive 
quotation  The procurement is for:  
1. commonly used goods that are readily available on the market and have 
standardized technical features and are similar to each other in quality;  
2. commonly used and simple non -advisory services; or  
3. construction works that are simple and have had the approved construction 
drawing design.  
Limited bidding  The subject matter of procurement has high technical requirements or technical 
peculiarities for which only a limit ed number of tenderers are capable of satisfying.  
Direct appointment 
of contractor  The procurement serves to:  
1. address an urgent situation caused by force majeure ; 
2. ensure national security;  
3. address an urgent situation to protect people's life, health, and assets;  
4. procure drugs, chemicals, and health equipment to prevent and treat urgent 
epidemics;  
5. protect national sovereignty, national borders, and islands;  
6. procure from the original suppliers to ensure technological compatibility;  
7. procure resear ch or tests;  
8. procure copyright;  
9. procure from an architect who has already won a design competition;  
10. procure a work of art;  
11. procure the service of relocation of technical infrastructure works managed 
directly by a specialized unit in order to serve the work  of ground clearance;  
12. procure services of detection and disposal of bombs, mines, or explosives in 
order to prepare construction of works; or  
13. procure public products and services subject to a maximum price, as prescribed 
by the Government in line with economic -social conditions.  
Direct procurement  The procurement is to obtain goods or services similar to or the same as existing 
ones. The contractor has already won a tender through open or limited tendering and 
has already signed a previous contract.  
Self-
implementation  It is used when the procuring entity has the technical and financial capability and 
experience to implement the project by itself.  
Selection of 
tenderers/investors 
in special cases  It is used when none of the above methods can be applied. The competent person 
shall prepare a plan for selection of a contractor or investor and submit it to the 
Prime Minister for consideration and decision.  
Community 
participation in 
performance  Communities, organizations, teams, or groups of workers may be assigned to 
perform an entire or part of a local project if this project is under national support 
programmes for hunger elimination, poverty reduction, and communities in 
mountainous and remote areas, islands, or areas with special economic -social 
difficulties; or if the project is small in scale.  
Source:  Information provided by the authorities.  
3.214.   The time -period granted to suppliers to prepare tenders, i.e. from the date of the issuance 
of tender documentation to the final date of the submission of tenders, should be no less than 
20 days for domestic bidding and 40 days for international bidding. W hen suppliers need to be pre -
qualified, the time -period for suppliers to submit their pre -qualification documents shall be at least 
10 days for domestic bidding and 20 days for international bidding.  
3.215.   In selecting tenders, the lowest price method is used f or simple and small procurements in 
which technical, financial, and commercial aspects of tenders are of similar competitiveness. 
Life-cycle costs may also be taken into account where necessary. For procurement of technically 
complicated goods, services, a nd construction works, both the technical aspect and the price of the 
tenders are taken into account. The weight of technical aspects in the total score varies depending 
on the technical nature of the procurement and should be published in the tender notic e. The 
tenderer with the highest overall score is ranked first.  
3.216.   In order to ensure the consistency and transparency of online bidding, the Prime Minister 
approved the master plan and the roadmap for the application of online bidding in the period 2015 -
25. The Ministry of Planning and Investment is responsible for building, managing, and operating WT/TPR/S/ 410 • Viet Nam  
 
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 the National Procurement Network134, which was established on 1  January  2016. All bidding 
information must be published online and in designated media.135 All procur ements using the 
methods of open bidding, limited bidding, competitive quotation, direct procurement, and direct 
appointment of contractor must be conducted through the Network.  
3.217.   In addition, the Department of Public Procurement of the Ministry of Planning and 
Investment developed a national online PPP network; the new system came into operation in 2018.  
3.218.   When a supplier considers that its rights and benefits under the Law on Bidding or other 
legal provisions are severely affected, it can either make a prote st to the procuring entity or the 
regulatory authority or bring a case to a court. When a substantial violation of the Law on Bidding 
or other legal provisions is found, the procurement can be suspended, and the bidding result can be 
invalidated. The respo nsible entity must compensate for damages.  
3.3.6.3   Domestic preference and other preference policies  
3.219.   "Buy national" requirements are a key feature of Viet  Nam's government procurement policy. 
They take the form of preferential treatment of tenders that meet the do mestic content or domestic 
labour requirements. In accordance with the Law on Bidding and its implementing decree, 
preferential treatment is granted to certain suppliers if they meet the following criteria:  
a. in both domestic and international bidding for go ods, tenderers whose goods contain no less 
than 25% domestic content in value;  
 
b. in international bidding of services and construction works, domestic tenderers or foreign 
tenderers in partnership with domestic tenderers in which domestic tenderers fulfil no less 
than 25% of the value of the tender;  
 
c. in domestic bidding of services and construction works, tenderers whose employees are 
made up of no less than 25% women, or persons with disabilities; or  
 
d. tenderers that are SMEs.136  
 
3.220.   Compared with the previou s Law, the domestic content requirement has been relaxed.137 
Preferential treatment is provided, as appropriate, when comparing and ranking different tenders. 
If a tenderer is eligible for more than one preference, it will be accorded the more substantial o ne. 
When two tenders are ranked the same after preferential treatment has been accorded, the tenderer 
whose supply has more domestic content or who employs more local workers will be selected. 
Construction contracts with values of less than VND 5 billion a re set aside for small and micro 
enterprises.  
3.221.   In international bidding for goods, services, and construction works, tenderers that meet the 
preferential treatment criteria will be granted an advantage margin of 7.5% in respect of either the 
tender price or  tender score in the comparison and rating. In domestic bidding for goods, the 
preferential treatment is the same as in international bidding for goods. In domestic bidding for 
services and construction works, tenderers that meet the preferential treatment  criteria will be 
selected if they rank the same as other tenderers.  
3.3.6.4   Government procurement commitments under FTAs  
3.222.   The government procurement chapters of both the CPTPP Agreement and the 
European  Union -Viet Nam FTA (EVFTA) are based, to a large extent, on  the legal text and market 
 
134 Portal of the National Procurement Network (in Vietnamese). Viewed at: 
http://muasamcong.mpi.gov.vn/ .  
135 Tenders are normally published in newspapers such as Dau Thau , Nhan Dan , Lao Dong , and Saigon 
Giai Phong , all of which are in Vietnamese, and in the English -language newspapers Viet Nam News  and 
Viet Nam Investment Review . Bidding information is also posted on the Electronic Government Procurement 
system and the Bidding newsp aper, according to regulations.  
136 The authorities note that the SME preference is accorded to Vietnamese SMEs.  
137 Under the previous Law, the threshold for receiving preferential treatment was 30% in terms of 
domestic costs and 50% in terms of local labour employment.  WT/TPR/S/ 410 • Viet Nam  
 
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 access schedule structure of the GPA. On the whole, the market accession commitments undertaken 
by Viet  Nam under the EVFTA are broader than those undertaken under the CPTPP. A comparison in 
this regard is provided in Table 3.16.   
In order to improve its government procurement legal framework and to codify the commitments 
on government procurement under the CPTPP, the Government issued an implementing decree 
(Decree No. 95/2020/ND -CP) on 24 August 2020.138 A decree guiding the implementation of the EU -
Viet Nam FTA will be issued later.  
Table 3.16 Comparison of market access offers under the CPTPP and the EVFTA  
Comparison aspect  CPTPP  EVFTA  
Entity 
coverage  Central 
government  18 ministries, 2 ministerial -level 
agencies, and 1 government 
agency  18 ministries, 2 ministerial -level 
agencies, and 1 government agency  
Sub-central 
government  None Hanoi City and Ho Chi Minh City  
Other  38 entities, including the Viet Nam 
News Agency, 3 research 
institutions, and 34 public hospitals 
under the direct control of the 
Ministry of Public Health  42 entities, including the Viet  Nam 
News Agency, 3 research institutes, 34 
public hospitals under the direct control 
of the Min istry of Public Health, 2 
research institutes, and 2 SOEs 
(Viet Nam Railways and Viet  Nam 
Electricity)  
Thresholds  Central 
government  Goods and services: gradual 
reduction from SDR 2,000,000 to 
SDR 130,000 in 25 years  
 
Works: gradual reduction from SDR 
65,200,000 to SDR 8,500,000 in 
15 years  Goods and services: gradual reduction 
from SDR 1,500,000 to SDR 130,000 in 
15 years  
 
Works: gradual reduction from SDR 
40,000,000 to SDR 5,000,000 in 15 
years  
Sub-central 
government  n.a. Goods and services: gradual reduction 
from SDR 3,000,000 to SDR 1,000,000 
in 15 years  
 
Works: gradual reduction from SDR 
40,000,000 to SDR 15,000,000 in 15 
years  
Other  Goods and services: gradual 
reduction from SDR 3,000,000 to 
SDR 2,000,000 in 5 years  
 
Works: gradual reduction from SDR 
65,200,000 to SDR 15,000,000 in 
20 years  Goods and services: gradual reduction 
from SDR 3,000,000 to SDR 1,000,000 
in 15 years  
 
Works: gradual reduction from SDR 
40,000,000 to SDR 15,000,000 in 
15 years  
Procurement 
items  Goods  All goods are covered with a few 
exemptions and special set -asides 
for purchases of pharmaceutical 
products  Similar but not fully identical to those 
under the CPTPP  
Services  A number of sectors, including 
most computer -related services. 
Distribution services of 
pharmaceutical products are 
excluded  Similar to but slightly narrower than 
under the CPTPP  
Construction 
services  All construction services except 
dredging services; construction in 
remote, mountainous, and 
extremely difficult areas, and on 
islands located beyond Viet  Nam's 
territorial sea; or construction of 
ministerial -level headquarters  All construction services except 
construction in remote, mountainous, 
and extremely difficult areas and on 
islands located beyond Viet  Nam's 
territorial sea; or construction of 
ministerial -level headquarters.  
Dredging services are included in the 
schedule  
 
138 The Decree is posted at: http://vanban.chinhphu.vn . WT/TPR/S/ 410 • Viet Nam  
 
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 Comparison aspect  CPTPP  EVFTA  
Other flexibilities  Viet Nam is permitted to apply 
offsets for 25 years and delay 
implementation of several 
obligations  Offsets are applicable for 18 years. 
Other flexibilities are similar but not 
identical to those under CPTPP  
n.a. Not applicable.  
Note:  SDR is the IMF special drawing right.  
Source:  Information provided by the authorities.  
3.3.7   Intellectual property rights  
3.3.7.1   Overview  
3.223.   During the review period, Viet  Nam modernized its IP system. While some challenges 
remain, protection of IP improved significantly. From 2006 to 2018, the number of patent 
applications submitted by, and th e number of patents granted to, Vietnamese nationals increased 
annually by 9.86% and 20.05%, respectively.139 Trademarks and geographical indications (GIs) 
became more important for enterprises and the Government. In 2019, Viet  Nam was ranked 42nd of 
129 ec onomies in the Global Innovation Index140, which was substantial progress compared with its 
ranking of 76th of 142 in 2013. Viet  Nam actively participates in multilateral, regional, and bilateral 
cooperation in the area of IPRs, which helps it introduce int ernational standards and best practices 
and improve its efficiency in IPRs registration and protection.  
3.224.   Notwithstanding Viet  Nam's enhanced efforts to improve its IP regime, innovation remained 
a weak area in its socio -economic development. The number and  value of IP assets are still low, and 
few Vietnamese products based on IP are competitive either in the region or in the world. The recent 
rate of domestic patent filings is about 10 per million people.141 Vietnamese applicants filed 10.3% 
of patent applic ations in 2018. Few Vietnamese enterprises or producers built up their brands or 
GIs. Counterfeiting and piracy in both physical and online markets remain major concerns of 
Viet Nam's trade partners, especially in the areas of software, music and movies, b ooks and journals, 
pharmaceuticals, pesticides, and consumer goods.142 The number of reported infringement cases 
increased significantly between 2013 and 2019. Reasons for these shortcomings may include low 
awareness of the value of their IP assets by enter prises and individuals, and inadequate enforcement 
of IPRs by the Government.143  
3.225.   To address these challenges and to create an innovation ecosystem, Viet  Nam launched its 
first National Intellectual Property Strategy in August 2019144, the first such policy at the national 
level. The Strategy will guide IP policies in the country for the next decade to support 
competitiveness and promote economic, cultural, and social development. It sets out specific targets 
on various IPRs aspects and assigns implementation  responsibilities to related ministries and local 
governments. The authorities have organized publicity activities to promote the Strategy. They have 
 
139 MOST, Viet Nam's Intellectual Property Strategy Until 2030 , 14 May 2020. Viewed at: 
https://www.most.gov.vn/en/news/753/viet -nam%E2%80%99s -intellectual -property -strategy -until-2030--
driving -force-for-development -of-intellectual -property -assets.aspx .  
140 The Global Innovation Index (GII) is co -published by Cornell University, INSEAD, and the World 
Intellectual Property Organization (WIPO). The Index is a ranking of the innovation capabilities and results of 
world economies. It measures innovation based on criteria that include institutions; human capital and 
research; infrastructure; credit; investment; linkages; the creation, absorption, and diffusion of knowledge; 
and creative outputs. Global Innovation Index 2019 . Viewed a t: https://www.globalinnovationindex.org/gii -
2019-report# .  
141 MOST, Viet Nam's Intellectual Property Strategy Until 2030 , 14 May 2020. Viewed at: 
https://www.most.gov.vn/en/news/753/viet -nam%E2%80%99s -intellectual -property -strategy -until-2030--
driving -force-for-development -of-intellectual -property -assets.aspx . 
142 International Chamber of Commerce and BASCAP, Promoting and Protecting Intellectual Property in 
Viet Nam. Available at: https://cms.iccwbo.org/content/uploads/sites/3/2019/05/bascap -vietnam -country -
report -translation -vietnam -eng.pdf .  
143 International Chamber of Commerce and BASCAP, Promoting  and Protecting Intellectual Property in 
Viet Nam. 
144 Lawsoft (Vietnamese legal documents in English reference portal), Prime Minister's Decision on 
Approving the Intellectual Property Strategy through 2030 . Viewed at: https://thuvienphapluat.vn/van -ban/so -
huu-tri-tue/Quyet -dinh-1068-QD-TTg-2019-Chien -luoc-so-huu-tri-tue-den-2030-422277.aspx .  WT/TPR/S/ 410 • Viet Nam  
 
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 also issued relevant implementation guidance and work plans, and have been revising the IP Law 
and regulat ions accordingly.  
3.3.7.2   Legislative and institutional framework/developments  
3.226.   The overall structure of the legislative framework for IPRs remained largely unchanged 
during the review period (Table A3.10). The Civil Code No. 91/2015/QH13 of 24  November  2015 
sets out the basic civil principles of the IP system. The 2015 Criminal Code, as amended and 
supplemented in 2017 and taking effect from  1 January 2018, provides criminal penalties for 
infringements of copyright and industrial property rights on a commercial scale. The Law on 
Intellectual Property (Law No. 50/2005/QH1 1 of 29 November 2005 (IP Law)), amended and 
supplemented by Law No.  36/2009/QH12 in 2009, and further amended by Law No.  42/2019/QH14 
in June 2019, covers the full range of IPRs. Its implementation is generally regulated by decrees 
and circulars issued by  relevant authorities.  
3.227.   The 2019 amendments to the IP Law were aimed at implementing commitments that 
Viet Nam undertook in the CPTPP Agreement. A new proposal to amend and supplement several 
articles of the IP Law is being prepared and is planned to be su bmitted to the National Assembly in 
2021. The proposal concerns policies related to copyright assignment or transfer, IPRs created from 
the state budget, copyright registration procedures, the balance of interests between IP 
rightsholders and users in vari ous areas, collective representatives of copyright and other IP rights, 
IP enforcement, and the implementation of international obligations.  
3.228.   Since 2013, several new decrees and circulars have been issued by relevant authorities to 
address certain issues an d concerns, such as examination procedures, and to align Viet  Nam's IP 
system with international best practices.  
3.229.   Another development in IP -related legislation is the promulgation of the revised Law on 
Technology Transfer (Law No. 07/2017/QH14), which came into effect on 1 July 2018.145 Reportedly, 
the revised Law aims at facilitating technology transfer and application, supporting technology R&D 
activities, and controlling the quality of technology transferred into Viet  Nam. It requires that cross -
border tec hnology transfer contracts be registered with the competent authority146, provides for tax 
incentives, and facilitates the development of IP portfolios. The implication of this revised Law for 
the IPRs regime mainly concerns the disclosure of technological secrets. Specifically, the 2006 Law 
banned disclosing technology secrets. The revised Law allows technology secrets to be disclosed 
under certain circumstances, such as to ensure national security, national defence, social welfare, 
and other interests of t he State and society, similar to the circumstances permitted by Article  7.3 of 
the IP Law.  
3.230.   In 2018, the IP Office of Viet  Nam changed its English name from "National Office of 
Intellectual Property" to "Intellectual Property Office of Viet  Nam" (IP Viet  Nam) and adjusted its 
organizational structure. IP Viet Nam is under the MOST.  It advises and assists the Minister in the 
overall management of the national IP system; chairs and coordinates with other relevant agencies 
to draft IP policies and measures to guide, organize, and supervise the implementation of such 
policies and measures, and to organize IPR advocacy activities, training, and participation in 
international treaty negotiations; and manages industrial property rights. IP Viet  Nam is composed 
of 17 units, of which 9 (including the 2 branch offices in Ho Chi Minh City and Da Nang) are divisions 
that manage state functions, and 8 are administrative service centres for specific IPR areas such as 
patent examination, industrial design examination, trade mark examination, GIs and international 
trademark examination, and post -registration examination.  
3.231.   The Copyright Office of Viet  Nam under the Ministry of Culture, Sports and Tourism is 
responsible for the implementation of copyrights.  Its functions, tasks, powers, and organizational 
structure are defined by Decision of the Minister of Culture, Sports and Tourism No. 3954/QD -
 
145 The new Law on Technolog y Transfer is available in English on the MOST's website. Viewed at: 
https://www.most.gov.vn/en/Pages/Detaildocument.aspx?vID=45 .  
146 The MOST (at the national level) and the Depart ment of Science and Technology (at the provincial 
level) have the authority to receive applications for registration of technology transfer contract. The Ministry of 
National Defence has the authority to receive applications related to national defence.  WT/TPR/S/ 410 • Viet Nam  
 
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 BVHTTDL of 20 October 2017.147 Other agencies are involved in aspects of the IP system, 
e.g. granting of plant variety certificates, issu ance of compulsory licences, and enforcement.  
3.3.7.3   Industrial property  
3.232.   Overall , data on industrial property registration indicate that there is a growing interest in 
protection of IPRs (Table 3.17). Trademark remains the area where applications grew significan tly, 
although the number of grants was relatively moderate. The number of patent applications and 
grants increased notably. The number of industrial property registered by and granted to Vietnamese 
abroad also increased during the review period, indicating  Viet Nam's further integration into global 
grade and economy.  
Table 3.17 Trademarks, industrial designs, and patents and utility solutions, 2013 -19  
 2013  2014  2015  2016  2017  2018  2019  
Trademark applications  
Resident  
Non-resident  
Total  
Abroad  36,236  
21,482  
57,718  
2,032  38,854  
22,308  
61,162  
2,734  45,230  
22,514  
67,744  
3,482  54,963  
26,965  
81,928  
3,733  55,313  
29,463  
84,776  
4,442  60,731  
33,465  
94,196  
7,244  43,647  
10,154  
53,801  
.. 
Trademarks granted  
Resident  
Non-resident  
Total 
Abroad  22,515  
21,315  
43,830  
1,592  23,831  
21,704  
45,535  
5,191  21,971  
22,851  
44,822  
2,332  20,466  
20,862  
41,328  
2,718  22,504  
24,901  
47,405  
5,044  22,699  
27,070  
49,769  
4,470  22,265  
6,555  
28,820  
.. 
Industrial design applications  
Resident  
Non-resident  
Total 
Abroad  1,556  
873 
2,429  
712 1,736  
873 
2,609  
287 1,839  
1,046  
2,885  
1,639  2,060  
1,334  
3,394  
927 1,763  
1,420  
3,183  
826 1,891  
1,475  
3,366  
425 1,841  
1,650  
3,491  
.. 
Industrial designs granted  
Resident  
Non-resident  
Total 
Abroad  960 
597 
1,557  
754 1,144  
819 
1,963  
219 1,029  
652 
1,681  
1,759  988 
671 
1,659  
574 1,504  
1,104  
2,608  
1,115  1,433  
1,391  
2,824  
345 1,234  
938 
2,172  
.. 
Patent applications  
Resident  
Non-resident  
Total  
Abroad  443 
3,552  
3,995  
54 487 
3,960  
4,447  
74 582 
4,451  
5,033  
100 560 
4,668  
5,228  
73 592 
4,790  
5,382  
71 646 
5,425  
6,071  
103 720 
6,800  
7,520  
.. 
Patents granted  
Resident  
Non-resident  
Total 
Abroad  59 
1,123  
1,182  
11 36 
1,361  
1,397  
24 63 
1,325  
1,388  
25 76 
1,347  
1,423  
42 111 
1,634  
1,745  
48 205 
2,014  
2,219  
43 169 
2451 
2620 
.. 
Utility solution applications  
Resident  
Non-resident  
Total 
Abroad  226 
47 
273 
.. 246 
126 
372 
.. 310 
140 
450 
4 326 
152 
478 
1 273 
161 
434 
.. 370 
187 
557 
2 395 
204 
599 
.. 
.. Not available.  
Source:  WTO Secretariat, based on WIPO statistics data, last updated in June 2020 (for 2013 -18). Statistics 
for 2019 provided by the authorities.  
3.233.   One of the challenges faced by IP Viet  Nam in managing industrial property applications is 
the shortage of examinatio n capacity, resulting in a backlog.148 Along with the increasing number of 
applications, the average time for granting a patent increased from 73 months in 2013 to 77.5 
months in 2017.149 Building patent examination capacity is a particular focus. During the review 
 
147 Copyright Office of Viet  Nam. Viewed at: http://www.cov.gov.vn/ .  
148 MOST, Intellectual Property Office of Viet  Nam,  2018 Intellectual Property Activities Annual Report . 
Viewed at: http://ipvietnam.gov.vn/documents/20182/687634/Baocaothuongnien+2018+.pdf/aa49c9cf -0436-
4a27-bd15-c811fa43c94c . 
149 The authorities note that the average time for grant ing a patent runs from the date of filling to the 
date of granting a certificate.  WT/TPR/S/ 410 • Viet Nam  
 
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 period, IP Viet  Nam provided training for examiners, upgraded technical infrastructure, and 
improved internal management. Following the amendments to the IP Law in 2019, applica tions can 
be filed electronically.150  
3.3.7.3.1   Patents  
3.234.   Patent administration remained largely unchanged during the review period. IP Viet  Nam 
receives and examines patent applications. Patents are classified into invention patents and utility 
solution patents, the latter of lower inventiveness. The maximum terms of protection are 20 and 10 
years, respectively. Giving effect to a CPTPP undertaking, the 2019 amendments extended the grace 
period for patents from 6 to 12 months, so that an invention will not to be deeme d as having lost 
its novelty if a patent application is submitted within 12 months of certain forms of prior publication 
or public exhibition.151 In terms of compulsory licensing, the IP Law reflects the main TRIPS 
provisions, and there has been no change s ince the last Review. On 23  January  2017, Viet  Nam 
notified its acceptance of the 2005 Protocol amending the TRIPS  Agreement (WT/L/641) regarding 
patents and public health.152 The authorities indicate that Viet  Nam is amending the IP Law to permit 
compulsor y licensing for export of medicines to countries without sufficient production capacity. No 
compulsory licences have been granted since the IP Law was enacted.  
3.235.   IP Viet  Nam is implementing pilot Patent Prosecution Highway (PPH) programmes under 
bilateral cooperation mechanisms with the Japan Patent Office and the Korean Intellectual Property 
Office. However, Viet Nam accepts at most 200 PPH requests per year from Japan and 100 from the 
Republic of  Korea. The implementation of a PPH programme with the European Union is under 
bilateral discussion.  
3.3.7.3.2   Industrial designs  
3.236.   Viet Nam protects two - and three -dimensional designs. The term of protection is five years 
from the grant date, renewable for two  consec utive periods of five years. Prior use of industrial 
designs that are independently created is not considered to infringe the owner's right. On 
30 September 2019, Viet  Nam joined the Geneva Act (1999) of the Hague Agreement.153 The Act 
entered into force in  Viet Nam on 30 December 2019, enabling industrial designs of Viet  Nam and 
other contracting parties of the Act to realize the protection through a single international 
application.  
3.3.7.3.3   Layout designs of integrated circuits  
3.237.   During the review period, there were  no amendments to the provisions on layout designs of 
integrated circuits in the IP Law. They reflect the provisions of the TRIPS  Agreement, including the 
provisions of the Washington Treaty incorporated in the Agreement. IP Viet  Nam conducts a formal 
(rather than a substantive) examination of applications. Between 2013 and 2019, 50 applications 
were submitted and certified (Table 3.18).  
Table 3.18 Applications of layout design of integrated circuits and certif icates granted, 
2013 -19 
Year 2013  2014  2015  2016  2017  2018  2019  Total  
Applications  12 19 5 7 2 5 0 50 
Certificates  12 19 5 7 2 5 0 50 
Source:  Information provided by the authorities.  
 
150 Intellectual Property Online Service Portal (in Vietnamese). Viewed at: 
http://dvctt.noip.gov.vn:8888/HomePage.do . 
151 As specified in Article  60.3 of the IP Law as amended in 2019 . 
152 WTO, Implementation of Paragraph 6 of the Doha Declaration on the TRIPS Agreement and Public 
Health . Viewed at: http://www.wto.org/english/tratop_e/trips_e/implem_para6_e.htm ; and WTO, Amendment 
of the TRIPS Agreement . Viewed at: http://www.wto.org/english/tratop_e/trips_e/amendment_e.htm . 
153 WIPO, Viet Nam Joins the Hague System , 30 September 2019. Viewed at: 
https://www.wipo.int/hague/en/news/2019/news_0009.html .  WT/TPR/S/ 410 • Viet Nam  
 
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 3.3.7.3.4   Trade secrets  
3.238.   The IP Law provides for general protection of trade secrets, as well as of test data in the 
pharmaceutical and agrichemical sectors, in line with Article  39 of the TRIPS  Agreement.154 The Law 
and relevant regulations further specify that a competent Vietnamese authority shall not grant 
licences to subsequent  applicants to use protected test data without the consent of the original 
submitter of such data for a period of five years starting from the date the licence is granted to the 
data submitter.155  
3.3.7.3.5   Trademarks  
3.239.   In general, trademark rights are granted through  registration in Viet  Nam or the recognition 
of international registration by IP Viet  Nam, in accordance with applicable international treaties. 
International registration is available under the Madrid System. The term of protection is 10 years, 
renewable indefinitely. Trademark holders have to use their trademarks continuously. If a trademark 
is not used continuously for five years or more, the certificate will be invalidated when so requested 
by another organization or individual.156 Under the 2019 amendment of the IP Law, use of a 
trademark by a licensee is also deemed to constitute the use by the holder. A trademark licence 
does not need to be registered at the competent authority in order to have legal validity to a third 
party. New regulations on  organizations having the right to register collective marks and certification 
marks and on the process of handling international trademark applications in Viet  Nam were issued 
in June 2016.157 The registration process can take up to 15 months. Well -known t rademarks are 
defined as marks that are "widely known by consumers throughout the territory of Viet Nam".158 
IPRs in relation to well -known marks are established by use and not dependent on registration 
procedures. There is no formal procedure for recognizi ng the fame of a mark. IP Viet  Nam has the 
authority to recognize, ex officio , the well -known status.  
3.3.7.3.6   Geographical indications  
3.240.   Viet Nam considers GIs as an important instrument to manage the quality of agricultural 
products, promote their competitiveness, achieve greater economic value in domestic and 
international markets, and preserve relevant culture and traditions. The IP Law provides protection 
of GIs through registration at IP Viet  Nam. The authorities note that GIs are protected as certification 
marks. The right to register GIs of Vietnamese origin belongs to the State, which allows organizations 
and individuals to register GIs. Nonetheless, the party exercising the right to register a GI does not 
become the owner of the GI. The 2019 amendments to the  IP Law implementing CPTPP undertakings 
further clarify that names and indications that have become common names of goods widely 
accepted by consumers in Viet  Nam cannot be registered as protected GIs. It also supplements 
grounds for refusing a GI applicat ion when the subject matter of the application is identical with or 
similar to a trademark with an earlier filing date or priority date and the use of such a GI is likely to 
cause a confusion as to the origin of products. Once registered, the protection ha s an indefinite 
duration. By the end of 2019, 73 GI certificates were issued for Vietnamese products. Six GIs from 
foreign countries are registered and protected in Viet  Nam.  
3.3.7.3.7   Protection of plant varieties  
3.241.   Viet Nam is a member of the International Union fo r the Protection of New Varieties of Plants. 
The UPOV Convention (1991 Act) entered into effect for Viet  Nam on 26 December 2006. The Plant 
Variety Protection Office under the MARD is the main authority responsible for protecting plant 
variety. The IP Law sets out conditions for obtaining protection of plant varieties, exclusive rights, 
and compulsory licences. Decree No. 88/2010/ND -CP, issued on 16 August 2010, provides details 
on the implementation of the Law. There was no change to the relevant legislati on during the review 
 
154 IP Law (as amended in 2019), Article 128.  
155 Ministry of Health Circulars No. 44/2014/TT -BYT and No. 32/2018/TT -BYT, Decision No.  
69/2006/QD -BNN of the Minister of Agriculture a nd Rural Development, Decree No. 108/2017/ND -CP, the 2013 
Law on Plant Protection and Quarantine, Decree No. 39/2017/ND -CP, and the 2015 Law on Animal Health.  
156 IP Law (as amended in 2019), Article 136.2.  
157 WIPO IP Portal, Viet Nam: Circular No. 16/2016/TT -BKHCN dated 30 June 2016 . Viewed at : 
https://wipolex.wipo.int/en/legislation/details/17743 .  
158 The Law Amending and Supplementing a Number of Articles of the Law on Intellectu al Property (Law 
No. 36/2009/QH12), Article 1, Item 2.20.  WT/TPR/S/ 410 • Viet Nam  
 
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 period. As at end -2019, the Plant Variety Protection Office issued 771 certificates for plant variety 
protection, including 155 plant variety rights in the crops sector.  
3.3.7.4   Copyright and related rights  
3.242.   The IP Law provides protection of co pyright for a period of the life of the author plus 
50 years. For cinematographic works, photographic works, works of applied art, and anonymous 
works, the term of protection is 75 years from the date of first publication or 100 years from the 
date of crea tion, if the works remain unpublished within 25 years of the date of creation. This is 
longer than the minimum protection of 50 years required by the Berne Convention and the 
TRIPS  Agreement. Although registration of copyrights is not mandatory, Viet  Nam m aintains a 
copyright registration system in which registered copyright holders can obtain certificates that can 
be used as evidence in case of litigation. Guidelines on procedures for registration are contained in 
Decree No. 22/2018/ND -CP, issued on 23 Feb ruary 2018. In 2019, a total of 8,446 copyright and 
related rights certificates were issued. Online registration became available as at 1 May 2020.  
3.243.   During the review period, two new non -governmental copyright collection societies, namely 
the Association fo r Protection of the Rights of Vietnamese Music Performers (APPA) and the Viet  Nam 
Association for Copyright Protection of Movies and TV Films (Ban Quyen Phim) were established. 
Four others were already established: the Viet  Nam Literary Copyright Center (V LCC); the Recording 
Industry Association of Viet  Nam (RIAV); the Viet  Nam Center for Protection of Music Copyright 
(VCPMC); and the Viet  Nam Reproduction Rights Organization (VIETRRO).  
3.244.   Despite copyright protection efforts, infringements in this area are h ard to prevent due to 
the complexity of violations. For example, much of the illegal broadcasting of television programmes 
and movies is delivered by overseas website servers that use technologies to avoid detection. On 19 
June 2012, the Ministry of Inform ation and Communications and the Ministry of Culture, Sports and 
Tourism issued a joint circular stipulating the duty of enterprises providing intermediary services to 
protect copyright and related rights on the Internet and telecommunication networks.159 Inspectors 
from the two ministries coordinated to handle violations in this area. The authorities also learned 
from other countries about enhancing enforcement, including through collective copyright protection 
societies.  
3.3.7.5    Parallel imports  
3.245.   There were no ch anges in the IP Law regarding parallel imports during the review period. 
Viet Nam has a regime of international exhaustion. Therefore, parallel imports are not considered to 
infringe IPRs.  
3.3.7.6   Enforcement  
3.246.   Legislation in Viet  Nam provides for a comprehensive en forcement regime including civil, 
administrative, criminal, and border measures. According to the authorities, criminal and 
administrative measures are prescribed to address counterfeiting and piracy. IPR enforcement is 
primarily practiced through the impo sition of administrative penalties.160 Civil and criminal remedies 
are rarely or ineffectively used (Table 3.19). The authorities, however, note that actions against IPR 
infringement were stepped up at the border; 33 cases involving goods valued at VND  48.6 million 
led to arrest in 2019, up fr om 17 cases in 2013.161 
 
159 Ministry of Information and Communications, Joint Circular No. 07/2012/TTLT -BTTTT -BVHTTDL dated 
19 June 2012 . Viewed at: https://english.mic.gov.vn/Pages/VanBan/11264/07_2012_TTLT -BTTTT -
BVHTTDL.html .  
160 WIPO, Minutes of the Advisory Committee on Enforcement, Twelfth Session, Geneva, 4 -6 September 
2017. Viewed at: https://www.wipo.int/edocs/mdocs/enforcement/en/wipo_ace_12/wipo_ace_12_5.pdf .  
161 No data are available for the total value of goods involved in the 17 cases that led to arrest in 2013.  WT/TPR/S/ 410 • Viet Nam  
 
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 Table 3.19 IPR infringement cases, 2013 -19  
 2013  2014  2015  2016  2017  2018  2019  
Criminal cases handled by the court  2 11 4 1 2 1 1 
Cases handled by the Inspector of 
Science and Technology  142 113 149 26 21 18 .. 
Cases by market surveillance  3,274  3,436  3,740  4,483  4,521  5,000  4,097  
Cases handled by Customs  17 23 15 22 31 46 33 
Cases handled by local administrative 
agencies  2,216  1,106  1,500  1,957  2,954  1,811  3,296  
.. Not available.  
Source:  Information provided by the authorities.  
3.247.   Counterfeiting and piracy remain the major IPR infringements. According to the International 
Chamber of Commerce's BASCAP Report, a broad range of counterfeit products continue to be sold, 
e.g. g arments, accessories, food products, wines and spirits, cosmetics, pharmaceuticals, computer 
software, vehicle spare parts, engine lubricants, electro -mechanical products, and consumer 
electronics.162 Online piracy is also a serious concern, and the authori ties took important 
enforcement steps over the past few years. In addition, domestic manufacturing of counterfeit 
products is emerging as a concern.  
3.248.   The BASCAP Report identifies a number of shortcomings in Viet  Nam's IPR protection 
system. To further prom ote and improve the efficiency of IPR enforcement, the National Intellectual 
Property Strategy with Visions to 2030 sets out detailed tasks, such as streamlining relevant 
administrative measures and strengthening judicial enforcement including criminal inv estigation.163 
3.249.   To enhance coordination and efficiency among relevant administrative agencies, a National 
Steering Committee against Smuggling, Counterfeiting and Trade Fraud (National Steering 
Committee 389) was established in March 2014. The Committee is c haired by a Deputy Prime 
Minister, and its members include relevant ministers. The MOF is the standing agency of the 
Committee. At the sub -central levels of government, the standing agency is determined by local 
authorities. The Committee coordinates enfor cement activities and investigations to tackle serious 
counterfeiting acts. IP Viet  Nam provides technical support to relevant enforcement activities.  
3.3.7.6.1   International cooperation and integration  
3.250.   During the review period, Viet  Nam participated in international cooperation activities in the 
IP area. On the multilateral front, Viet  Nam is a party to a number of WIPO -related treaties 
(Table  3.20). Viet  Nam is also considering joining several other WIPO treaties.164  
 
162 ICC BASCAP, Promo ting and Protecting Intellectual Property in Viet  Nam. Viewed at: 
https://iccwbo.org/content/uploads/sites/3/2019/05/bascap -vietnam -country -report -translation -vietnam -
eng.pdf .  
163 National Intellectual Property Strategy, Vision to 2030 . Viewed at: https://thuvienphapluat.vn/van -
ban/so -huu-tri-tue/Decision -1068-QD-TTg-2019-approval -for-intellectual -property -strategy -by-2030-
445454.aspx .  
164 WIPO IP Portal, WIPO -administered Treaties . Viewed at: 
http://www.wipo.int/treaties/en/ShowResults.jsp?country_id=185C .  WT/TPR/S/ 410 • Viet Nam  
 
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 Table 3.20 International IPR treaties in force for Viet  Nam, 2020  
Treaty  Subject matter (non -exhaustive list 
of elements)  Date of accession 
or ratification  Date of entry into 
force  
WIPO Convention  Constituent instrument of WIPO  7 April 1981 
(Declaration of 
Continued 
Application)  21 July 1976  
Berne Convention  Copyright (artistic and literary works, 
etc.) 26 July 2004  26 October 2004  
Rome Convention  Related rights (performers, producers of 
phonograms and broadcasting 
organizations)  1 December 2006  1 March 2007  
Phonograms Convention  Protection of producers of phonograms 
against unauthorized duplication of their 
phonograms  6 April 2005  6 July 2005  
Brussels Convention  Distribution of programme -carrying 
signals transmitted by satellite  12 October 2005  12 January 2006  
Paris Convention, 1883; 
Stockholm Act, 1967  Industrial property (patents, trademarks, 
utility models, trade names, industrial 
designs, GIs and appellations of origin, 
unfair competition, enforcement, etc.)  7 April 1981  2 July 1976  
Patent Co -operation 
Treaty (PCT), 1970  International patent applications  10 December 1992  10 March 1993  
Madrid Agreement 
(Marks), Stockholm Act, 
1967 International registration of marks  7 April 1981 
(Declaration of 
Continued Application 
of the Stockholm Act)  2 July 1976  
Protocol relating to the 
Madrid Agreement 
(Marks)  International registration of marks  11 April 2006  11 July 2006  
Hague Agreement  International registration of industrial 
design  30 September 2019  30 December 2019  
UPOV Convention 1961  
1991 Act  Sui generis  system of protection of plant 
varieties  24 November 2006  24 December 2006  
Source:  WTO Secretariat, based on WIPO information on treaties. Viewed at: www.wipo.int/treaties/en/ . 
3.251.   Viet Nam also participated in IP activities within the framework of APEC and ASEAN. It is a 
member of the ASEAN Patent Examination Cooperation (ASPEC), the first regional patent 
programme to share search and examination results.165  
3.252.   Regarding regional trade agreements, in both the CPTPP Agreement and the EVFTA, 
Viet Nam undertook commitments to provide enhanced protection to IPRs. Viet  Nam is also 
negotiating with the European Free Trade Association (EFTA) and participating in the Reg ional 
Comprehensive Economic Partnership (RCEP) Agreement negotiations.  
3.253.   In addition, IP Viet  Nam participated in activities to implement international agreements on 
IP that have been signed or initiated, specifically on: (i) implementation of the bilatera l Trade 
Agreement with the United  States; (ii) the Agreement with the Russian Federation on IP in military 
technical cooperation; and (iii) the proposed Viet  Nam-United Kingdom Free Trade Agreement.  
3.254.   As mentioned previously, Viet  Nam also strengthened its c ooperation with countries 
including the European  Union, Japan, and the Republic of Korea on various projects to help Viet  Nam 
build its capacity in patent application examination, GIs, and the protection of traditional knowledge. 
It signed memoranda of und erstanding with several foreign IP offices on cooperation plans.  
 
 
165 ASEAN Intel lectual Property Portal, What Is ASPEC . Viewed at: 
https://www.aseanip.org/Services/ASEAN -Patent -Examination -Co-operation -ASPEC/What -is-ASPEC .  WT/TPR/S/ 410 • Viet Nam  
 
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 4  TRADE POLICIES BY SECTOR  
4.1  Agriculture, Forestry, and Fisheries  
4.1.1   Features  
4.1.  In 2019, agriculture, forestry, and fisheries contributed 1 5.5% to GDP (down from 20.0% in 
2013) and 34.5% to employment (down from 46.7% in 2013), reflecting lower labour productivity 
as compared with other s ectors. The main agricultural products include rice, coffee, and rubber 
(Table 4.1). By the end of 2016, about 4,400 enterprises operated in agriculture, forestry, and 
fisheries; these accounted for less than 1% of total enterprises nationwide. Many agricu ltural 
businesses are micro, small, and medium -sized enterprises (MSMEs), and the majority (about 55%) 
have capital of less than VND 5 billion. The authorities consider that the ability of agriculture, 
forestry, and fishery enterprises to apply science and  technology remains low; 75% of enterprises 
use fully depreciated machinery, and many still use outdated technologies.  
4.2.  In 2017, 53.7% (62.2% in 2011) of households engaged in agriculture, forestry, and fishery 
activities. In 2016, there were 62,523 coopera tive groups, an increase of 541 compared with 2012. 
As at 1 December 2016, 7,869 cooperatives had been registered and reorganized under the 
Cooperative Law; they function as a bridge between the Government, social and political 
organizations, and farmers.  
4.3.  Viet Nam adopted measures to increase the total capacity of the irrigation system. This led to 
an increase in irrigation available for rice cultivation to 7.48 million hectares in 2019 (compared with 
6.92 million hectares in 2013).1 
Table 4.1 Production of selected commodities, 2013 -19 
  2013  2014  2015  2016  2017  2018  2019  
Rice, 
paddy  '000 
hectares 
(ha) 7,902.5  7,816.2  7,828.0  7,737.1  7,737.1  7,570.9  7,470.1  
'000 
tonnes  11,039.1  44,974.6  45,091.0  43,165.1  43,165.1  44,046.0  43,448.2  
Coffee, 
green  '000 ha  581.3  589.8  593.8  597.6  617.1  618.9  618.1  
'000 
tonnes  1,326.6  1,408.4  1,453.0  1,460.8  1,577.2  1,616.3  1,678.8  
Cashew 
nuts '000 ha   300.9  288.3  280.3  281.0  283.8    283.7   276.4  
'000 
tonnes   275.5  345.1  352.0  305.3  215.8  266.4   284.0  
Cassava  '000 ha  543.9  552.8  567.9  569.0  532.6  513.0   519.3  
'000 
tonnes  9,757.3  10,209.9  10,740.2  10,909.9  10,267.7  9,846.9  10,105.1  
Rubber  '000 ha  548.1  570.0  604.3  621.4  653.2  685.5  698.1  
'000 
tonnes  946.9  966.6  1,012.7  1,035.3  1,094.5  1,137.7  1,167.3  
Maize  '000 ha  1,170.4  1,179.0  1,178.9  1,152.7  1,099.5  1,032.9  990.8  
'000 
tonnes  5,191.2  5,202.3  5,287.2  5,246.5  5,109.6  4,874.1  4,757.0  
Sugar 
cane '000 ha  310.4  305.0  284.2  267.6  281.0  269.3  233.7  
'000 
tonnes  20,128.5  19,821.6  18,337.3  17,211.2  18,356.4  17,945.5  15,269.9  
Bananas  '000 ha  112.0  114.0  115.0  120.0  125.0  128.0  150.0  
'000 
tonnes  1,893.0  1,858.0  1,943.0  1,942.0  2,045.0  2,087.0  2,194.3  
Pepper  '000 ha  7,902.5  7,816.2  7,828.0  7,737.1  7,737.1  7,570.9  7,470.1  
'000 
tonnes  11,039.1  44,974.6  45,091.0  43,165.1  43,165.1  44,046.0  43,448.2  
Pig meat  '000 
tonnes  1,326.6  1,408.4  1,453.0  1,460.8  1,577.2  1,616.3  1,678.8  
 
1 The Ministry of Agriculture and Rural Development (MARD) reviewed irrigation plans in the context of 
climate change and sea -level rise, adding standards and procedures for irrigation, dikes, reservoir safety, and 
repairing and upgrading 633 lakes with a view to improving management efficiency of irrigation works. 
Localities built and upgraded reservoirs, pumping stations, irrigation culverts, and canals. The Government 
invested in many small irrigation projects associated with hunger eradication and poverty al leviation, 
population stabilization, and security and national defence in mountainous, island, and border areas.  WT/TPR/S/ 410 • Viet Nam  
 
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   2013  2014  2015  2016  2017  2018  2019  
Cattle 
meat '000 
tonnes  300.9  288.3  280.3  281.0  283.8  283.7  276.4  
Hen eggs  '000 
tonnes  9,757.3  10,209.9  10,740.2  10,909.9  10,267.7  9,846.9  10,105.1  
Source:  FAOSTAT, Food and Agriculture Data . Viewed at: http://faostat.fao.org ; and data provided by the 
authorities.  
4.4.  All land belongs to the population of Viet  Nam; the State acts as the owners' representative 
regarding land management. Under Article  126 of the Land Law (Law No.  45/2013/QH13), issued 
on 29 November 2013 and entered into force on 1 July 2014, the term for the lease of land used for 
agriculture by households and individuals directly engaged in agricultural produ ction is 50 years2 
(compared with 20 years for annual crops and 50 years for perennial crops under the previous 
legislation); the lease of agricultural land to households and individuals shall not exceed 50 years. 
Upon the expiration of the land -lease ter m, the household or individual may request the State to 
allow it to continue leasing the land.  
4.5.  In 2019, Viet  Nam had a deficit in agricultural trade. Both imports and exports of agricultural 
products increased between 2013 and 2018; in 2019, they both dec lined. In 2019, the main exports 
included coconuts, rice, and coffee; the main imports included cotton and maize (Table 4.2).3  
Table 4.2 Exports and imports of agricultural products, 2013 -19 
HS 
2002    2013  2014  2015  2016  2017  2018  2019  
Exports  
 TOTAL  
(not including rubber)  13,157.3  15,213.2  15,390.6  16,458.8  18,631.7  18,196.9  17,632.8  
0801 Coconuts, 
Brazil nuts and 
cashew nuts '000 
tonnes  .. 418.4  .. 411.9  409.9  .. 519.9  
USD 
million  1,668.6  2,049.6  2,404.2  2,810.7  3,482.6  3,290.7  3,072.1  
1006 Rice '000 
tonnes  6,594.7  6,334.8  6,603.1  4,811.2  5,820.5  2,892.1  5,467.0  
USD 
million  2,926.3  2,936.9  2,807.9  2,160.0  2,634.6  2,621.4  2,434.3  
0901 Coffee  '000 
tonnes  1,269.1  1,646.3  1,283.7  1,705.2  1,466.2  874.1  1,421.9  
USD 
million  2,551.4  3,311.4  2,415.4  3,040.2  3,101.4  2,891.5  2,218.8  
0810 Other fruit, 
fresh '000 
tonnes  124.7  151.7  281.6  621.5  989.8  1,041.5  .. 
USD 
million  252.8  324.7  570.5  1,248.8  1,785.7  1,832.7  1,820.6  
1108 Starches; 
inulin  '000 
tonnes  1,506.0  1,495.7  .. .. 620.0  500.1  2091.8  
USD 
million  710.7  738.8  916.7  740.5  746.7  798.5  872.5  
0904 Pepper  '000 
tonnes  133.7  156.6  132.5  182.5  217.5  97.8 266.9  
USD 
million  893.4  1,206.5  1,262.8  1,441.6  1,131.0  752.4  682.6  
2008 Fruit, nuts, 
otherwise 
prepared or 
preserved  '000 
tonnes  50.3 40.8 .. .. 66.4 68.7 87.0 
USD 
million  149.9  122.0  165.4  241.8  284.0  345.8  501.0  
2101 Extracts, 
concentrates 
of coffee, tea, 
or maté  '000 
tonnes  48.1 45.0 59.2 76.0 100.6  40.1 119.8  
USD 
million  332.8  246.4  260.4  299.0  405.2  447.9  458.9  
2309 Preparations 
used in animal 
feed '000 
tonnes  92.4 125.6  136.4  172.2  190.4  215.2  256.9  
USD 
million  145.7  191.4  224.4  244.0  282.6  349.2  396.0  
 
2 The term for agriculture -based organizations is a period approved by the authorities of no longer than 
50 years.  
3 For the purposes of this  Review, agricultural products are defined as set out in Annex 1 of the 
Agreement on Agriculture, where fish products are defined under the HS02 nomenclature headings 0208.40, 
03, 0511.91, 1504, 1603, 1604, 1605, and 2301.20. Although not defined as an agr icultural product under the 
Agreement on Agriculture, export data for rubber are included under exports in Table 4.2 but are not included 
in the total for exports and imports of agricultural products.  WT/TPR/S/ 410 • Viet Nam  
 
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 HS 
2002    2013  2014  2015  2016  2017  2018  2019  
4001 Rubber  '000 
tonnes  990.2  982.2  783.4  665.7  573.0  .. 750.0  
USD 
million  2,378.7  1,668.8  1,065.8  881.2  943.0  953.7  1,004.8  
Imports  
 TOTAL (not including 
rubber)  11,876.3  13,671.7  15,162.8  16,427.7  18,639.1  20,812.5  20,788.6  
5201 Cotton, not 
carded or 
combed  '000 
tonnes  571.7  742.2  999.3  1,018.2  1,269.3  1,398.5  1,340.7  
USD 
million  1,154.6  1,422.7  1,607.2  1,643.3  2,331.8  2,727.5  2,400.2  
1005 Maize  '000 
tonnes  2,186.5  4,764.0  7,622.4  8,444.8  7,725.5  .. 11,447.7  
USD 
million  672.7  1,216.0  1,650.9  1,672.4  1,503.9  2,108.1  2,313.0  
2304 Oil-cake and 
other solid 
residues  '000 
tonnes  3,094.1  3,141.1  3,316.9  4,465.1  4,342.1  4,457.6  4,689.3  
USD 
million  1,743.3  1,859.8  1,966.1  1,854.7  1,728.2  2,054.2  1,845.2  
0801 Coconuts, 
Brazil nuts and 
cashew nuts  '000 
tonnes  640.0  579.1  892.9  1,039.2  1,298.9  180.8  1,327.4  
USD 
million  601.4  651.5  1,130.1  1,658.7  2,578.1  1,995.4  1,795.1  
2106 Food 
preparations, 
not elsewhere 
specified  '000 
tonnes  .. .. .. .. .. .. .. 
USD 
million  388.7  451.0  499.9  532.5  552.9  614.3  836.0  
1001 Wheat and 
meslin  '000 
tonnes  1,816.6  2,075.6  2,328.7  4,743.8  4,663.8  5,417.9  2,760.1  
USD 
million  619.5  648.8  600.9  1,005.0  994.4  1,177.6  720.3  
1201 Soya beans  '000 
tonnes  1,297.5  1,519.5  1,707.6  1,546.2  1,646.0  1,529.1  1,718.5  
USD 
million  784.2  873.3  765.0  661.0  707.9  771.1  686.3  
0102 Live bovine 
animals  '000 
tonnes  .. .. .. 115.0  96.8 104.3  197.6  
USD 
million  85.2 268.8  453.9  350.1  315.6  349.8  615.1  
1511 Palm oil and its 
fractions  '000 
tonnes  404.5  508.0  429.4  594.7  602.6  566.4  672.5  
USD 
million  518.2  559.1  458.7  510.9  568.7  541.5  530.9  
2309 Preparations 
used in animal 
feed '000 
tonnes  222.3  250.3  280.0  372.4  342.1  370.4  368.6  
USD 
million  366.7  427.1  480.6  540.6  490.1  543.5  526.3  
.. Not available.  
Source:  UN Comtrade database.  
4.1.2   Agriculture  
4.1.2.1   Legal, institutional, and policy framework  
4.6.  During the review period, the main agricultural policy development was the adoption of various 
laws, such as the Laws on Irrigation, Animal Health, Animal Husbandry, and Crop Production, and 
relevant regulations.  
4.7.  The main legislation governing the sector includes: (i) the Law on Irrigation (Law 
No. 08/2017/QH14), issued on 19 June 2017 and entered into force on 1 July 2018; (ii) the Law on 
Animal Health (Law No.  79/2015/QH13), issued on  19 June 2015 and entered into force on 
1 July 2016;  (iii) the Law on A nimal Husbandry (Law No.  32/2018/QH14), issued on 
19 November  2018 and entered into force on 1 January 2020; (iv) the Law on Crop Production (Law 
No. 31/2018/QH14), issued on 19 November 2018 and entered into force on 1 January 2020; 
(v) Decree No.  57/2018 /ND-CP (on incentive policies for enterprises investing in agriculture and the 
rural development sector), issued on 17 April 2018; (vi) Decree No.  13/2020/ND -CP, issued on 
21 January 2020 (guiding the Law on Animal Husbandry); (vii) Decree No.  107/2017/ND -CP (on 
amendments and supplements to Decree No.  193/2013/ND -CP dated 21 November 2013), issued 
on 15 September 2017; (viii)  Decree No.  40/2017/ND -CP (on management of salt production and 
trading), issued on 5 April 2017; (ix) Decision No.  369/QD -BNN-CBTTNS  (approving the sugar cane WT/TPR/S/ 410 • Viet Nam  
 
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 development project to 2020, and orientation to 2030), issued on 18 April 2018; (x) Decree 
No. 83/2018/ND -CP (on agricultural extension), issued on 24 May 2018; (xi) the Law on Plant 
Protection and Quarantine (Law No.  41/2013/QH1 3), issued on 25 November 2013; (xii) Decree 
No. 107/2018/ND -CP (on rice export trading), issued on 15  August  2018; (xiii) Decree 
No. 202/2013/ND -CP (on fertilizer management), issued on 27  November  2013; and (xiv) Decree 
No. 62/2019/ND -CP (on amending and  supplementing articles of Decree No.  35/2015 on 
management and use of rice land), issued on 11 July 2019.  
4.8.  The Ministry of Agriculture and Rural Development (MARD) has primary responsibility for 
agricultural policy, including preparing draft legislation, implementing the legislation, supporting 
production, and regulating inputs and outputs. It is also responsible for fisheries and other 
subsectors. Its structure is set out in Decree No.  15/2017/ND -CP (defining the functions, tasks, and 
organizational struc ture), issued on 17 February 2017. Under the MARD, several agencies are 
responsible for the delivery of agricultural services, such as the Centre for Informatics and Statistics, 
the National Centre for Agriculture and Fisheries Extension, and the National Centre for Rural Water 
Supply and Environmental Sanitation. Other ministries responsible for some aspects of agricultural 
policy include the Ministry of Natural Resources and Environment (MNRE) (responsible for land use), 
the Ministry of Industry and Trade  (MOIT) (responsible for food distribution and trade), the Ministry 
of Health (responsible for social policies and food security), and the Ministry of Finance (MOF) 
(responsible for fiscal policy, including support to agriculture). In addition, the People' s Committees 
are responsible for some aspects of agricultural policy in the provinces.  
4.9.  The private sector is represented by the Vietnam Food Association (VFA) for enterprises 
engaged in trade and processing agricultural products, and the Viet  Nam Farmers' Union, with some 
sector -specific associations also representing producers. Agricultural exporters are not obliged to 
join the VFA.  
4.10.   State -owned enterprises (SOEs) play a critical, though declining, role in the production, 
processing, and trade of agricultur al products. Examples include the following:  
• Viet Nam Northern Food Corporation (Vinafood1) and the Viet  Nam Southern Food 
Corporation (Vinafood2), which purchase, process, import, and export food and salt 
products. About 15% of Viet  Nam's rice is exporte d by these two corporations since 2019.  
• Viet Nam National Coffee Corporation (Vinacafe) which, through its subsidiaries, member 
companies, and associated companies, has interests in all stages of the coffee production 
chain. The Corporation's interests in production are mostly limited to research into coffee 
production, and it assists produce rs by providing seeds and advice.  
• Viet Nam Rubber Corporation, which is the largest natural rubber company in Viet  Nam.  
• Viet Nam National Tea Corporation (Vinatea), which is involved in all stages of tea 
production, processing, and marketing, and in rese arch and providing extension services.  
4.11.   During the review period, the authorities focused on the restructuring of SOEs to promote 
equitization and divestment of investment capital to achieve efficiency of state capital. According to 
the authorities, 18 SOEs  were corporatized by the end of 2017.  
4.1.2.2   Border measures  
4.12.   The simple average applied MFN tariff on agricultural products (WTO definition) was 18.1% 
in 2020, higher than the overall average of 11.9%. Among agricultural products, Viet  Nam has tariff 
quotas on eggs, sugar cane, and tobacco . The most recent notification on imports under tariff quotas 
for 2019 shows no imports of eggs under the tariff quota; about one quarter of the sugar quota was 
used, and about two thirds of the tobacco quota.4 In addition, Vie t Nam has quotas for preferential 
imports of rice, paddy, and unmanufactured tobacco from Cambodia and the Lao People's 
Democratic Republic (Section  3.1.3).  
 
4 WTO document G/AG/N/VNM/12, 12 May 2020.  WT/TPR/S/ 410 • Viet Nam  
 
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 4.13.   As a measure related to the COVID -19 pandemic, rice (HS 1006) was made subject to an 
export quota between 10 April 2020 and 30 April 2020, inclusive.5 According to the authorities, rice 
is an essential foodstuff, and the authorities adopted the quota to ensure domestic supply of rice for 
national food security. The quota was 400,000 tonnes for export in April 2020, and it was allocated 
on a first -come, first-served basis.  
4.14.   Export prohibitions/ restrictions are applied, inter alia , to certain precious and rare, 
endangered, or wild animals and plants in accordance with the international agreements to which 
Viet Nam is party (Section 3.2 .3).  
4.15.   The authorities  state that Viet  Nam has not provided any export subsidies on agricultural 
products  since its accession.  
4.16.   The authorities state that Viet  Nam does not impose any price controls on agricultural 
products. Decree No.  107/2018/ND -CP (on rice export trading), i ssued on 15 August 2018, removed 
regulations on the criteria for the registration of rice export contracts and regulations on minimum 
export prices.6 In addition, MOF Circular No.  17/2020/TT -BTC, issued on 27 March 2020, abolished 
Circular No.  89/2011/TT -BTC, which stipulated guidelines to determine the floor price for rice 
exports.   
4.17.   Under Decree No.  107/2018/ND -CP, rice exporters require a certificate from the MOIT. They 
must stock at least 5% of the amount of rice they exported in the previous six months ; rice exporters 
must also organize, under the direction of the competent state agency, a rice distribution system to 
which they must supply the rice reserve.  
4.1.2.3   Domestic support  
4.18.   According to the latest notification to the WTO concerning domestic support for  agriculture, 
among programmes notified as exempt from reduction commitments under Annex  2 to the 
Agreement on Agriculture (Green Box) (VND 33.3 trillion in 2013), most support was continued to 
be accorded for infrastructure, regional assistance, and relie f from natural disasters.7 The Total 
Aggregate Measurement of Support in 2013 was VND 20.5 trillion; at the time of its accession to the 
WTO, Viet  Nam bound its Total Aggregate Measurement of Support at VND 3,961.6  billion.  
4.19.   The general objectives for agr icultural development are set out in the Master Plan of 
Production Development of Agriculture to 2020, Vision to 2030. The Plan was approved by 
Prime  Minister's Decision No.  124/QD -TTg, issued on 2 February 2012. In it, objectives for 
agricultural developm ent are to: develop modern, sustainable, and comprehensive agriculture by 
promoting comparative advantages; apply science and technology to increase productivity, quality, 
efficiency, and high competitiveness, and to ensure national food security, in both the short and long 
terms, while meeting diverse domestic and export demands; and improve the efficiency of land, 
water, labour, and capital use. It was also approved by Resolution No.  63/NQ -CP, issued on 
23 December  2009. In this Resolution, objectives for  Agricultural Development by 2020, Vision to 
2030, are to: ensure enough food supplies with an output higher than the population growth rate; 
end food shortages and improve the quality of meals; and ensure that rice farmers have an average 
profit of over 3 0% compared with production costs.  
4.20.   On 10 June 2013, Prime Minister's Decision No.  899/QD -TTg (approving the project titled 
"Restructuring the agricultural industry towards increasing added value and sustainable 
development") was issued. The Decision aims t o, inter alia : (i) raise productivity, quality, and value -
added in agriculture, with a target of achieving value -added growth in agriculture by 2.6% to 3.0% 
during 2011 -15, and by 3.5% to 4.0% during 2016 -20; (ii) raise the income and improve the living 
standards of rural residents, ensure food security, and contribute to the reduction of poverty, with 
a target of, inter alia,  achieving, by 2020, an increase in rural household income to 2.5  times that 
of 2008; and (iii) enhance natural resource management, reduce greenhouse gas emissions and 
negative impacts on the environment, utilize environmental benefits, raise capacity for risk 
management, and enhance disaster preparedness. On 19 December 2013, Decree 
 
5 WTO docum ent G/AG/N/VNM/13, 4 August 2020.  
6 Decree No.  107/2018/ND -CP replaced and repealed Decree No.  109/2010/ND -CP on rice export 
businesses.  
7 WTO document G/AG/N/VNM/6, 23 June 2016.  WT/TPR/S/ 410 • Viet Nam  
 
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 No. 210/2013/ND -CP (on policies to encourage enterpr ises to invest in agriculture and rural areas) 
was issued. The main measures include support for training human resources, market development, 
the application of science and technology in the investment of cattle and poultry slaughterhouses, 
and the planti ng of medicinal herbs and macadamia trees.  
4.21.   On 9 April 2015, Prime Minister's Decision No.  458/QD -TTg (issuing the plan for implementing 
Central Executive Committee Resolution  of the Political Ministers No.  97-KL/TW (on some policies 
and solutions to contin ue the implementation of Central Resolution 7 of the Central Party Committee 
(term X) on agriculture and countryside) of 15 May 2014) was issued. Subsequently, the MARD 
issued Decision No.  1777/QD -BNN-KH on 18 May 2015 (the Action Plan of the MARD implemen ting 
Prime Minister's Decision No.  458/QD -TTg). Accordingly, the MARD was assigned to develop plans 
for specific tasks, and to organize the effective implementation, inspection, and supervision of 
Central Resolution 7. Some main tasks include: (i) updating  and promoting the Resolution (according 
to Conclusion 97 -KL/TW and Prime Minister's Decision No.  458/QD -TTg); (ii) reviewing, adjusting, 
and improving the quality of planning; (iii) promoting agricultural and rural industrialization and 
modernization in a ssociation with agricultural restructuring and rural economic restructuring; (iv) 
stepping up the rehabilitation of rural areas; (v) renovating production enterprises, focusing on the 
development of suitable and effective forms of agricultural, forestry, a nd fishery production; (vi) 
promoting the research, transfer, and application of advanced science and technology in the 
production, preservation, and processing of agricultural, forestry, and fishery products; (vii) 
updating and improving the quality of vo cational training for rural labourers; (viii)  renewing 
mechanisms and policies, and mobilizing resources; and (ix) improving the capacity of agricultural 
management. The authorities state that the MARD adopted policies to, inter alia : achieve simplicity, 
accessibility, and non -discrimination; and review inspection procedures for imports and exports. 
They also note that several domestic businesses and corporations have played an important role in 
recent years in the process of restructuring the sector, throu gh researching, investing, and applying 
high-tech solutions to the production of agriculture products on a large scale. Between 2014 and 
2017, the MARD made seven new subsector development plans and 17 plans to restructure the 
agriculture and rural develop ment sector.  
4.22.   With a view to encouraging and reducing agricultural production costs, VAT has not been 
imposed on fertilizers since 1 January 2015, in accordance with the provisions of the Law on 
Amendments to Tax Laws (Law No.  71/2014/QH13, issued on 26 No vember 2014).  
4.23.   The state -owned Viet  Nam National Chemical Group (Vinachem) and PetroVietnam Fertilizer 
and Chemicals Corporation are the biggest fertilizer producers in the country. According to the 
authorities, gas is supplied to the fertilizer plants on t he basis of market prices.  
4.24.   Rice is on the list of goods and services subject to price stabilization, in accordance with the 
Law on Prices. It is also on the list of national reserve goods under the Law on the National Reserve. 
Thus, the State may use it i n times of national emergencies or natural disasters, in the interests of 
national defence and security. The purchase or sale of national reserve goods is one of the measures 
the Government may use to stabilize prices. According to the authorities, however , in recent years, 
the Government has not used the national reserve to stabilize rice prices. Both the import and export 
of rice are carried out according to the plan assigned at the beginning of each year to maintain the 
national reserve. The authorities state that Viet  Nam does not have a price subsidy policy for rice, 
and the rice price follows the market price. If necessary, the State may use price stabilization 
measures, including purchasing, setting the maximum or minimum prices, or selling national r eserve 
goods to balance supply and demand for rice.  
4.25.   The authorities state that Viet  Nam does not use price controls on any agricultural products; 
there are no state trading requirements on any agricultural products.  
4.1.3   Fisheries  
4.1.3.1   Features  
4.26.   Fisheries remain an important part of the economy, representing 2.3% of merchandise 
exports in 2019 (down from 3.8% in 2013). In 2018, the fishery catch amounted to 3,590  tonnes, 
an increase of 6% compared with 2017.  WT/TPR/S/ 410 • Viet Nam  
 
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 4.1.3.2   Trade  
4.27.   During the review period, Viet  Nam had a trade surplus in fisheries products.8 The main 
exports included frozen shrimp and prawns, and frozen fillets of catfish. The main imports included 
frozen shrimp and prawns, and flours, meals, and pellets of fish or crustaceans, molluscs, or other  
aquatic invertebrates (Table 4.3).  
Table 4.3 Exports and imports of fishery products, 2013 -19 
HS 
2002      2013  2014  2015  2016  2017  2018  2019  
Exports          
  Total  USD 
million  6,899.8  8,045.5  6,777.0  7,343.1  8,584.3  8,913.1  8,681.2  
030617  Shrimp & prawns, 
frozen  '000 
tonnes  252.2  284.2  184.6  223.1  245.6  196.6  235.7  
USD 
million  1,988.9  2,481.8  1,731.4  1,820.3  2,204.6  1,973.1  1,961.7  
030462  Frozen fillets of 
catfish  '000 
tonnes  577.1  541.6  520.8  516.0  450.1  546.1  545.6  
USD 
million  1,973.7  1,721.3  1,584.2  1,610.0  1,422.5  1,530.2  1,571.0  
160529  Shrimp & prawns, 
prepared/preserved, 
in airtight 
containers  '000 
tonnes  73.3  78.3  40.8  48.6  32.2  39.0  63.4  
USD 
million  984.9  927.0  402.5  548.8  392.8  478.6  734.8  
030499  Fish fillets & other 
fish meat, n.e.s.  '000 
tonnes  77.0  91.5  89.1  102.1  123.0  164.2  118.3  
USD 
million  302.5  346.5  355.8  349.8  374.5  473.9  459.2  
160521  Shrimps & prawns, 
prepared/preserved, 
not in airtight 
containers  '000 
tonnes  63.4  78.2  61.5  71.3  59.2  38.1  32.5  
USD 
million  589.1  791.8  709.5  733.9  656.5  435.0  356.8  
030487  Frozen fillets of 
tuna, skipjack or 
stripe -bellied bonito  '000 
tonnes  13.2  15.9  18.3  19.8  20.7  23.3  34.2  
USD 
million  127.9  175.8  187.5  199.3  231.2  274.7  328.6  
160414  Tuna, skipjack and 
Atlantic bonito, 
prepared/preserved  '000 
tonnes  63.4  78.2  61.5  71.3  59.2  38.1  32.5  
USD 
million  589.1  791.8  709.5  733.9  656.5  435.0  356.8  
Imports   
              
  Total  USD 
million  913.5  1,287.6  1,295.6  1,360.7  1,755.3  1,848.1  1,875.9  
030617  Shrimp & prawns, 
frozen  '000 
tonnes  24.4  48.7  37.1  37.2  46.2  40.8  29.8  
USD 
million  201.7  436.5  385.6  331.7  430.1  387.5  220.9  
230120  Flours, meals & 
pellets of fish or 
crustaceans, 
molluscs or other 
aquatic 
invertebrates  '000 
tonnes  109.0  105.3  112.9  119.7  160.8  145.5  129.5  
USD 
million  146.4  169.9  174.1  182.4  233.0  228.5  194.0  
030342  Yellowfin tuna, 
frozen  '000 
tonnes  23.2  28.4  39.2  49.0  55.6  43.3  64.3  
USD 
million  63.7  85.4  100.7  108.2  146.1  118.9  166.3  
030743  Cuttlefish and 
squid, frozen  '000 
tonnes  .. .. .. .. .. 17.9  97.0  
USD 
million  19.3  26.1  33.8  26.0  47.2  27.9  131.9  
030354  Mackerel, frozen  '000 
tonnes  .. .. 38.0  60.8  82.7  54.7  71.1  
USD 
million  24.8  32.7  49.3  47.3  68.8  89.5  131.5  
.. Not available.  
Source:  UN Comtrade database.  
 
8 For the purposes of this Review, fish products are defined as HS02 Heading s 0208.40, 03, 0511.91, 
1504, 1603, 1604, 1605, and 2301.20.  WT/TPR/S/ 410 • Viet Nam  
 
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 4.1.3.3   Policies  
4.28.  The principal pieces of legislation on fisheries are the Law on Fisheries (Law 
No. 18/2017/QH14), issued on 21 November 20179, and Decree No.  26/2019/ND -CP (detailing a 
number of articles and measures for the implementation of the Law on Fisheries), issued on 
8 March  2019, which  repealed a number of earlier decrees on fisheries.10 The provisions of the Law 
include: (i)  planning regarding the protection and exploitation of aquatic resources, and the 
establishment of protected marine areas; (ii)  the import and export of aquatic bre eds; (iii)  the 
breeding, raising, artificial propagation, import, and export of aquatic species prescribed in the 
appendices to the CITES; (iv)  the management of fishing vessels and their capture; and (v)  the 
combat of illegal, unreported, and unregulated (IUU) fishing. The Law introduced policies to: 
promote the investment by enterprises in the infrastructure of aquaculture and fish seed production; 
support fishermen and offshore fishing activities; and encourage investment in the construction, 
trading, an d management of aquatic product markets. The Law introduced sanctions against IUU 
fishing. It also established a system for the Government to grant management rights to community 
organizations regarding the protection of aquatic resources. Under the Law, f oreign commercial 
fishing vessels may only enter the fishing port specified in the commercial fishing licence or the 
fishing ports approved by the MARD.11 According to the authorities, c ompared  with the previous  
regime  under  the 2003 Law on Fisheries,  the new Law, inter alia: (i) covers  fishing activities 
undertaken by Vietnamese enterprises and individuals outside Viet Nam's maritime boundary; (ii) 
establishes quotas for fishing licences; (iii) requires fishing boats to be at least 15  metres long to be 
granted licence to operate in the offshore area; and (iv) details IUU fishing activities and stipulates 
strict punishments compared with administrative penalties for violations in other fields.  Decree 
No. 26/2019/ND -CP, issued on 8 March 2019 ( on guidelines f or implementation of the Law on 
Fisheries), details certain clauses of the Law on Fisheries , and measures to implement the Law.  
4.29.  The MARD is responsible for fisheries policies, the development of draft legislation, and the 
implementation of existing legisl ation. Within the Ministry, the Directorate of Fisheries is responsible 
for advising the Minister on policy development and the implementation of established policies and 
laws. Another institution under the Directorate is the Viet  Nam Institute of Fisherie s Economics and 
Planning, which, inter alia , studies the economics, mechanisms, and policies and plans for fisheries 
development. Non -governmental institutions established to support the fisheries sector include the 
Viet Nam Association of Seafood Exporters and Producers, the Viet  Nam Fishery Society, the 
Viet Nam Pangasius Association, the Viet Nam Sea Culture Association, and the Viet Nam Tuna 
Association.  
4.30.   The fisheries policy is included in the Master Plan on Fisheries Development through 2020, 
Vision to 2030 (Prime Minister's Decision No.  1445/QD -TTg issued on 16  August 2013). The Plan 
sets objectives for turning fisheries into a highly competitive, large community production sector. 
Its targets for 2020 included a seafood export value of around USD 11 billion, with an annual average 
growth rate of 7% -8% between 2011 and 2020; for 2030, its targets include a seafood export value 
of USD 20 billion, with an annual average growth rate of 6% -7% between 2020 and 2030.  
4.31.   In accordance with the Law on Fis heries, Viet  Nam took concrete steps in the fight against 
IUU fishing.12 A national committee was established in May 2019 to coordinate efforts by central 
agencies and local authorities to combat IUU fishing. Coastal towns and provinces established their 
own anti -IUU units to supervise fishing activities. Fishing boats using seaports must file reports on 
their cargoes, origin of product, and ships' logs. The authorities state that Viet  Nam is improving its 
legal framework, and trackers are installed on boat s to monitor seafood product origin and enforce 
maritime law. According to the authorities, the Law and a number of government decisions and 
guidelines allow agencies and localities to combat IUU effectively. Viet  Nam also established 
 
9 FAO, FAOLEX Database: Viet  Nam.  Viewed at: http://www.fao.org/faolex/results/details/en/c/LEX -
FAOC171855 . 
10 These i nclude: Decrees No.  27/2005/ND -CP, 8 March 2005; No.  59/2005/ND -CP, 4 May 2005; 
No. 14/2009/ND -CP, 13 February 2009; No.  32/2010/ND -CP, 30 March 2010; No.  33/2010/ND -CP, 31 March 
2010; No.  52/2010/ND -CP, 17 May 2010; No.  53/2012/ND -CP, 20 June 2012; No.  66/2005/ND -CP, 19 May 
2005; No.  80/2012/ND -CP, 8 October 2012; No.  102/2012/ND -CP, 29 November 2012; No.  57/2008/ND -CP, 
2 May 2008; and No.  55/2017/ND -CP, 9 May 2017.  
11 FAO, FAOLEX Database, Viet  Nam. Viewed at: http://www.fao.org/faolex/results/details/en/c/LEX -
FAOC171855 . 
12 MARD, VN Adopts EU Recommendations to Combat IUU Fishing . Viewed at: 
https://www.mard.gov.vn/en/Pages/vn -adopts -eu-recommendations -to-combat -iuu-fishing.aspx .  WT/TPR/S/ 410 • Viet Nam  
 
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 communications channe ls with neighbouring countries to spot and address IUU  violations. MARD 
Decision No.  1481/QD -BNN-TCTS, issued on 2 May 2019, established quotas for fishing licences. It 
divided the fishing grounds into three zones: coastal, inland, and offshore. The size o f the fishing 
boats is clarified solely for fishing operations in each zone; for example, boats over 15  metres in 
length in the offshore zone, 12 -15 metres in the inland zone, and less than 12 metres in the coastal 
zone.  
4.32.   Under the Law on Severance Tax (Roy alties), natural aquatic products are subject to royalties 
of 2% of the sale price, except for abalone, sea cucumbers, and pearls for which the royalties are 
10%.13  
4.33.   Aquatic food to be exported must comply with the Law on Food Safety and its guiding 
docume nts, including MARD circulars detailing the safety management of exported aquatic food: 
Circulars No.  48 /2013/TT -BNNPTNT (providing regulations on inspection and certification of aquatic 
food for export), issued on 12 November 2013; No.  02/2017/TT -BNNPTNT  (amending and 
supplementing a number of articles in Circular No.  48/2013/TT -BNNPTNT), issued on 
13 February  2017; and No.  16/2018/TT -BNNPTNT (amending and supplementing a number of 
articles of Circulars No.  48/2013/TT -BNNPTNT and No.  02/2017/TT -BNNPTNT), issued on 
29 October  2018.  
4.34.   As notified to the WTO, the Fisheries Development Policies provide support measures to the 
sector, such as credits for new vessels, subsidized accident insurance, and tax exemptions between 
2015 and 2018.14 The Policies are based  on, inter alia , Decree No.  67/2014/ND -CP, issued on 
7 July 2014, and its amendments. The objectives of the Policies include: (i) upgrading and building 
fishing ports, fishing vessel shelters, and other infrastructure and facilities, so as to improve the 
management, monitoring, supervision, and inspection of fishing activities; (ii) upgrading and 
modernizing artisanal and small fishing vessels , and converting from wooden to steel vessels to 
increase safety and minimize risks for people participating in fish ing activities; (iii) promoting 
poverty alleviation; (iv) maintaining and developing traditional fisheries in a sustainable manner; 
(v) training and raising awareness; and (vi) supporting the conversion of fishing gear, to eliminate 
the use of destructive gear. Several support programmes were, or are being, implemented to support 
the fisheries sector15, including:  
• An insurance system for people participating in fishing activities and for fishing vessels 
operating at sea, in accordance with Decree No. 67/2014/ND -CP; 
• Tax and fee exemptions: no registration fee imposed on fishing vessels, to encourage 
fishing vessel registration; exemption from personal income tax for individuals and 
households that operate substantive fishing, etc.; exemption from im port duties on 
machinery, equipment, materials, and components that are not produced locally, in 
order to build or upgrade vessels to reduce the number of small fishing vessels.  
4.35.   Viet Nam is a member of several international and regional intergovernmental o rganizations 
involved in fisheries and aquaculture, including the Food and Agriculture Organization (FAO) and the 
Asia-Pacific Fishery Commission, which is an FAO Article  XIV Regional Fisheries Body. Viet  Nam is 
also a member of the Southeast Asian Fisheri es Development Center, the Network of Aquaculture 
Centres in Asia -Pacific, and the Mekong River Commission. It is also a cooperating non -member of 
the Western and Central Pacific Fisheries Commission to improve the monitoring and management 
of the tuna cat ches in Viet  Nam and to contribute to reducing IUU fishing.  
 
13 Standing Committee of Parliament Resolution No.  712/2013/UBTVQH, issued on 16 December 2013.  
14 WTO documents G/SCM/N/284/VNM and G/SCM/N/315/VNM, 2 8 February 2020; and 
G/SCM/N/343/VNM, 27 February 2020.  
15 OECD, OECD.Stat, Fisheries Support Estimate . Viewed at: 
https://stats.oecd.org/Index.aspx?datasetcode=FISH_FSE# .  WT/TPR/S/ 410 • Viet Nam  
 
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 4.2  Mining and Energy  
4.2.1   Mining  
4.36.   Viet Nam has diverse mineral resources throughout the country.16 In 2019, it was a major 
producer of bismuth17, tungsten (5.6% of world production), fluorspar (3.4%), cem ent (2.3%), and 
tin (1.5%).18 It is the second largest producer of tungsten in the world, and it holds some of the 
world's largest reserves of bauxite and alumina (12.3%) and rare earths (18.3%), as well as 
significant deposits of titanium mineral concentr ates (ilmenite), iron ore, chromite, and copper.19  
4.37.   The mining sector is heavily concentrated around coal production, which is mostly oriented 
towards the domestic market for energy production.20 In the coal -mining subsector, two SOEs, i.e. 
the Viet  Nam Na tional Coal -Mineral Industries Holding Corporation Limited (Vinacomin) and the 
Dong Bac Corporation (DBC), account for around 90% of national production.21 Besides these SOEs, 
several private enterprises exploit some small mines, and one foreign enterprise  (Vietmindo) 
participates in Dong Vong -Uong Thuong coal mine under a contract running until end -2020. Until 
2013, Viet  Nam was a net exporter of coal, and exports represented 28% of national production in 
that year. Coal exports reduced substantially durin g the review period and Viet  Nam became a net 
importer of coal in 2019.22 Planned coal consumption in early 2020 was 58.1 million tonnes.  
4.38.   Since 2013, Viet  Nam started exploiting rare earth mines in the northern provinces of Lai 
Chau, Lao Cai, and Yen Bai. It is reported that the country has proven reserves for 11 million tonnes 
of rare earth elements (the third -largest reserves worldwide).23 Current annual production is 
estimated at around 900  tonnes.  
4.39.   In 2019, mining and quarrying (including mineral fuels) accounted for 7.5% of GDP and 0.4% 
of total employment. In the same year, mineral exports (HS Chapters 25 -27) represented 2.1% 
(8.2% in 2013) of total merchandise exports. The sector underwent negative growth for the third 
consecutive year in 2018 ( -3.11%) , a decline mainly driven by the decrease in the price of crude oil. 
Sectoral labour productivity is the highest in the country, corresponding to almost 18 times the level 
in the rest of the economy.24 All mines belong to the State and to its enterprises c onducting natural 
resource exploitation.  
4.40.   The 2010 Mineral Law25 regulates the sector.26 It was amended by Law No.  35/2018/QH14 
(amendment and addition to a number of articles of 37 laws relating to planning ), issued on 
20 November 2018 and entered into force on 1 January 2019. The amendments concern aspects 
related to the preparation, adjustment, and approval of plans on the exploration, extraction, 
processing, and use of minerals, including of restricted mi nerals. In 2011, Viet  Nam adopted the 
Mineral Resources Strategy to 2020, Vision to 2030, and an action plan for the strategic orientation 
 
16 Minerals in clude antimony, barite, bauxite, bismuth, chromite, coal, copper, fluorspar, nickel, rare 
earths, silica sand, silver, tin, titanium, tungsten, zinc, and zircon. US Department of Interior, US Geological 
Survey (2018) . Viewed at: https://s3 -us-west-2.amazonaws.com/prd -
wret/assets/palladium/production/mineral -pubs/mcs/mcs2018.pdf . 
17 Recent official data for the Vietname se production of bismuth are not available.  
18 US Department of Interior, US Geological Survey (2020),  Mineral Commodity Summaries . Viewed at: 
https://pubs.usgs.gov/periodicals/mcs2020/mcs2020.pdf . 
19 US Department of Interior, US Geological Survey (2020),  Mineral Commodity Summaries . Viewed at: 
https://pubs.usgs.gov/periodicals/mcs2020/mcs2020.pdf . 
20 Given the rise in electricity demand in recent years and related forecasts for the coming years, mining 
remains a key sector for sustained economic growth.  
21 Six open-cut and 13 underground mines exploit coal. In 2019, Vinacomin and the DBC produced 
45.6 million tonnes and 10.9 million tonnes of coal, respectively.  
22 Coal exports gradually decreased from 12 million tonnes in 2013 to slightly more than 1 million 
tonnes in 2019. In parallel, coal imports surged (+1,508%) between 2013 and 2019. During the same period, 
the average MFN tariff rate on coal (HS Heading 2701) increased from 0% to 2%.  
23 Hanoi Times , "Vietnam May Compete with China in Rare Earth Export", 3 J une 2019. Viewed at: 
www.hanoitimes.vn/vietnam -may-compete -with-china -in-rare-earth -export -846.html . 
24 This significant difference in labour productivity is related to the high capital intensity of the industry.  
25 Issued on 17 November 2010 and entered into force on 1 July 2011.  
26 The Mineral Law protects unexploited minerals, and regulates geological surveys of mineral resources, 
mineral exploration and mi ning, and the management of minerals nationwide.  WT/TPR/S/ 410 • Viet Nam  
 
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 of mineral resources and their exploitation.27 The Strategy provides for, inter alia : (i) non-renewable 
mineral resou rces to be managed, protected, exploited, and used rationally; (ii)  the survey and 
evaluation of mineral resources to be implemented in advance, to permit efficient planning; 
(iii) exploration and mining to be associated with the potential for the processi ng and use of each 
type of mineral, in light of the needs of all economic sectors; (iv)  only processed products with high 
economic value to be exported for large -scale deposits of minerals; and (v)  international cooperation 
to be utilized to access scienti fic knowledge and environmentally friendly technologies. The 
authorities state that results achieved by the Strategy include: geological and mineral mapping in 
land and marine areas; the assessment of mineral reserves of titanium, bauxite, and other minera ls; 
the exploration and survey of new resources; the management and control of mineral activities; and 
the protection of rights and local interests by local authorities.  
4.41.   The MNRE oversees the mining sector, and coordinates with other ministries in line wit h the 
Strategy. People's Committees at all local levels also oversee mining activities within their 
jurisdictions. All mining projects must be submitted for approval to the Appraisal Council, consisting 
of the MOIT, the Ministry of Construction, and the re levant provincial or municipal People's 
Committee.28 Projects involving advanced and environmentally friendly techniques are strongly 
encouraged; ordinary projects are given consideration depending on the characteristics and the need 
for the exploitation. All mining, oil, and gas projects require the Prime Minister's approval, regardless 
of capital source or size.29 
4.42.   Reconnaissance surveying activities are organized by the MNRE on the basis of a surveying 
plan. Private investors can contribute capital for reconnaissance activities, except for projects related  
to uranium and thorium. As regards exploration and exploitation, the acquisition of a licence requires 
commitments on the part of the licence holder: at least 50% equity in the total proposed capital 
investment for the implementation of an exploration pro ject, and at least 30% of the total 
investment capital for a mining project. A fee applies to each licence, and rates are based on the 
quality and type of minerals to be mined, the mining conditions, reserves, and the value of the 
property. The maximum ter m of exploration licences is 48 months. A mining licence whose initial 
term is 30 years can be extended for another 20 years.  
4.43.   According to the authorities, the Government promoted the restructuring of Vinacomin and 
the DBC with the aim of achieving higher efficiency. Prime Minister's Decision No.  2006/QD -TTg, 
issued on 12  December 2017, approved the restructuring scheme for Vinacomin over the period 
2017-20.30 Decisions of the Minister of Defence No.  1894/QD -BQP on the Restructuring Plan for 
Dong Bac Corpor ation to 2015, issued on 27  May 2014, and No.  5917/QD -BQP on the Plan for 
Restructuring, Renewing and Improving the Operational Efficiency of Dong Bac Corporation to 2020, 
issued on 29  December 2017, approved similar plans for the DBC. In addition to organ izational 
restructuring, the Decisions prescribed the equitization of subsidiaries and the transfer of shares in 
associated companies operating ineffectively.31 The DBC reduced its participation in three associated 
companies and equitized two subsidiaries in recent years.  
4.44.   The Master Plan for the Development of Coal Industry to 2020, Vision to 2030, was revised 
by Prime Minister's Decision No.  403/QD -TTg (on approval and adjustment of the Master Plan for 
the Development of Coal Industry to 2020, Vision to 20 30) on 14 March 2016. The revision aims at 
ensuring national energy security, prioritizing domestic demand, and incrementally reducing coal 
 
27 Coal, uranium, metals, non -metals, construction materials, natural thermal water, mineral water, oil, 
and gas are the products prioritized by the Strategy. Politburo Resolution No.  02-NQ/TW (on strategic 
orientation on minerals and mining industry to 2020, Vision to 2030), issued on 25 April 2011; Prime Minister's 
Decision No.  2427/QD -TTg (approving the Mineral Strategy to 2020, Vision to 2030), issued on 22 December 
2011; and Resolution No.  103/NQ -CP (on t he action plan to implement Resolution No.  02-NQ/TW), issued on 
22 December 2011.  
28 Prime Minister's Directive No.  03/CT -TTg (on strengthening mineral policies and laws), issued on 
30 March  2015.  
29 Appendix 4 to the 2014 Investment Law (No.  67/2014/QH13), issued on 26 November 2014 and 
entered into force on 1 July 2015.  
30 Due to difficulties in establishing the enterprise valuation, Vinacomin foresees a completion of this 
step for its equitization by 2022. In the meantime, Vinacomin was transferred under th e responsibility of the 
Commission for the Management of State Capital in Enterprises.  
31 Vinacomin has more than 50 subsidiaries operating in the form of independent accounting units, 
foreign subsidiaries, one -member limited liability companies, and joint -stock companies. Vinacomin, 
Introduction, Subsidiaries . Viewed at: http://www.vinacomin.vn/introduction/subsidiaries -
201507151618348546.htm . WT/TPR/S/ 410 • Viet Nam  
 
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 exports32 through management plans and other regulatory measures in line with state management 
and international com mitments. It calls for further exploration of coal resources to ensure reliable 
resources for the sustainable development of the coal industry; an increase in outward investment 
and trading, with the objective of supplying coal domestically; the establishm ent of sustainable coal 
production in line with long -term domestic demands; and the diversification of modes of coal 
investment and trading.  
4.45.   MOF Circular No.  152/2015/TT -BTC (guidance on natural resources tax), issued on 
2 October  2015, guides the implemen tation of the 2009 Law on Severance Taxes (Royalties)33, 
notably by defining products subject to royalties, taxpayers, tax bases, taxable resource output, and 
reference price.34 Royalty rates were adjusted under National Assembly Standing Committee 
Resolut ion No.  1084/2015/UBTVQH13 (issuing the natural resources tax rate schedule), issued on 
10 December 2015. Royalty rates range between 1% and 35%, and the adjustment led to an 
average increase of about 4% for metallic and non -metallic minerals with respect to rates in National 
Assembly Standing Committee Resolution No.  928/2010/UBTVQH12 (issuing the natural resources 
tax rate schedule), issued on 19 April 2010. Royalties are levied at the same rate on both exported 
and domestically consumed products; no info rmation on the amount collected in royalties on mineral 
output was available.  
4.46.   Enterprises operating in mining, including oil and gas exploration and exploitation, are subject 
to a higher corporate income tax (standard rate of 20% for other sectors), rangin g between 32% 
and 50% depending on the location, mining conditions, and mining reserves. Exports of mineral 
products are subject to an export tax of between 0% and 40%35, while export taxes on oil and gas 
products range between 0% and 10%. Minerals to be e xported must be on the list of minerals eligible 
for export.36 Exporters of minerals containing thorium or uranium equal to or greater than 0.05% 
by weight must obtain an export permit for radioactive material from the Ministry of Science and 
Technology. T echnical specifications apply to exports of construction and building materials, such as 
natural sand, granite, slate, marble, building stone, curb stones, limestone, quartz, gravel, and 
crushed stone.37 MOF Official Letter No.  7406/TCHQ -GSQL, issued on 10  November 2017, imposed 
an export ban on silica white sand. The Government holds the exclusive right to produce gold bullion, 
and to import and export gold material.38 No other production or export restriction on minerals is 
applied. Various types of miner als are VAT -free.39  
4.47.   Since 2013, 21 projects have attracted USD 1.65 billion of foreign direct investment (FDI). 
However, the mining sector faces challenges attracting foreign investors. Roughly 1% of all FDI 
between 2013 and 2020 was directed to the secto r. 
4.48.   Between 2013 and 2020, average applied MFN tariff protection for ores, slag, and ash 
(HS Chapter 26) declined from 3.6% to 3.4%, due to the splitting of two tariff lines. Regarding salt, 
 
32 Only types of coal not i n demand in the country should be exported.  
33 Law No.  45/2009/QH12, issued on 25 November 2009 and entered into force on 1 July 2010, as 
amended by Law No.  71/2014/QH13 (amendments and additions to a number of articles in tax laws), issued 
on 26 November 2 014 and entered into force on 1 January 2015.  
34 This Circular also defines exemptions for specific taxpayers (e.g. households using water for domestic 
use) and circumstances allowing a reduction in royalties (e.g. fire or natural disaster causing damage to  the 
declared resource). The taxable price for crude oil, natural gas, and coal gas is set according to Decree 
No. 50/2010/ND -CP (detailing and guiding the implementation of a number of articles of the 2009 Law on 
Severance Taxes), issued on 14 May 2010, a s amended by Decree No.  12/2015/ND -CP (guiding the 
implementation of a number of articles in Law No.  71/2014/QH13), issued on 12 February 2015.  
35 Mineral ores and concentrates (e.g. iron, manganese, lead, tin, chromium, tungsten), metal scraps 
(e.g. copper , nickel, aluminium, lead, zinc), and various kinds of monumental or building stones are subject to 
export taxes.  
36 MOIT Circular No.  41/2012/TT -BCT (on mineral exports), issued on 20 December 2012, as amended 
by MOIT Circular No.  12/2016/TT -BCT (amendment  to a number of articles in MOIT Circular No.  41/2012/TT -
BCT), issued on 5 July 2016.  
37 Ministry of Construction Circular No.  05/2018/TT –BXD (guiding exports of minerals used as building 
materials), issued on 29 June 2018, as amended by Ministry of Constru ction Circular No.  05/2019/TT –BXD 
(amendments and additions to Appendix to Circular No.  05/2018/TT –BXD), issued on 10 October 2019.  
38 Gold material is defined as gold bullions, bars, grains, pieces and other forms. Decree 
No. 24/2012/ND -CP (on management o f gold business activities), issued on 3 April 2012.  
39 Exported products from natural resources and minerals, without further processing or directly 
processed, with a total value (plus energy cost) of 51% or more of the prime cost, are non -taxable. For oth er 
cases, VAT is 0%.  WT/TPR/S/ 410 • Viet Nam  
 
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 sulphur, earths and stones, lime, and cement (HS Chapter 25), the average applied MFN tariff 
increased from 5.0% to 5.9% during the same period,40 while the average applied MFN tariff on 
mineral fuels and oils obtained from bituminous substances and on mineral waxes (HS Chapter 27) 
increased from 4.5% to 7.1%.  
4.2.2   Energy  
4.49.   The future growth of the economy is directly related to its capacity to satisfy its continuously 
growing demand for energy. Energy consumption is forecast to grow at an average annual rate of 
3% between 2020 and 2029.41 Power shortages remain a challenge for the development of the 
country, and the supply of hydroelectric generation is at its lowest level due to a severe heatwave 
and scanty rainfall in 2019.42 Viet Nam imports power from China and the Lao People's Democratic 
Republic43, as well as coal and fuel  for energy production. It now prioritizes coal and gas resources 
for domestic energy generation. In the medium term, it is expected that the country will remain a 
net importer of coal, while imports of oil and natural gas will rise.44 In 2017, 36.1% of do mestic 
energy production came from coal, with oil (25.3%), natural gas (10.0%), hydropower (9.8%), and 
biofuels and waste (18.8%) supplying the remainder.45 In 2017, final energy consumption was: 
30.8% petroleum products, 23.2% electricity, 23.1% coal, 1.6 % gas, and 21.2% biofuels and waste. 
In 2018, industry accounted for 55.0% of final energy consumption, and the remainder was absorbed 
by transport (19.8%) and residential consumers (18.4%).46 SOEs remain key players in the energy 
sector (Sections 4.2.2.1 and 4.2.2.2).  
4.50.   Viet Nam aims to achieve higher energy efficiency and conservation, in line with the  Law on 
Energy Saving and Efficiency.47 Prime Minister's Decision No.  280/QD -TTg, issued on 
13 March  2019, approved the National Energy Program on Efficiency (VNEEP3) for the period 
2019-30, with energy saving targets of 5% -7% for 2025 and 8% -10% for 2030. Prime Minister's 
Decision No.  04/2017/QD -TTg, issued on 9 March 2017, updated t he list of devices and equipment 
subject to energy labelling, the application of the minimum energy -efficiency requirements, and the 
relevant implementation roadmap until 2020.48 The VNEEP3 specifies savings potentials for different 
industries, such as bev erages, plastics, paper, chemicals, and heavy industry products. The 
authorities indicate that the VNEEP for the period 2011 -15 contributed to savings of 5.65% of the 
total energy demand during that period. Similarly, Prime Minister's Directive No.  20/CT -TTg (on 
strengthening electricity saving for the period 2020 -25), issued on 7 May 2020, seeks to save at 
least 2% of the total power consumption annually. In 2019 -20, the Government approved 
VND 10 billion for the VNEEP3 for policies and communication on ec onomical and efficient use of 
energy. Prime Minister's Directive No.  30/CT -TTg, issued on 27 November 2015, urged several 
ministries to enhance control on investment projects that intensively use energy and resources and 
potentially cause environmental pol lution. These ministries were requested to prepare technical 
regulations and energy -use norms applicable to each manufacturing industry. Moreover, the National 
Action Plan for Green Growth in the period 2014 -2049 promoted the reduction of greenhouse gas 
 
40 The averages for HS Chapter 25 exclude out -of-quota rates, as this information was not available for 
2013.  
41 Economist Intelligence Unit (2020), Energy Report - Vietnam . Viewed at: 
http://country.eiu.com/filehandler.ashx?issue_id=520455435&mode=pdf . 
42 For instance, the water flow was at its lowest level in 30 years in the Da River Basin. In 2019, 
hydroe nergy drastically diminished, by around 16.3 billion kWh in comparison to 2018. VN Express , "No Power 
Shortages in 2020, PM Orders", 26 December 2019. Viewed at: 
https://e.vnexpress.net/news/business/economy/no -power -shortages -in-2020-pm-orders -4033157.html ; and 
VN Express , "Hydropower Dams Run Out of Water on Lack of Rain", 22  December 2019. Viewed at: 
https://e.vnexpress.net/news/news/hydropower -dams -run-out-of-water -on-lack-of-rain-4031062.html . 
43 Imports from the Lao People's Democratic Republic started in 2013, and corresponded to sl ightly 
more than 1.2 billion kWh in 2018. Imports from China reduced over the period, from over 5 billion kWh in 
2010 to less than 2 billion kWh in 2018.  
44 Economist Intelligence Unit (2020), Energy Report - Vietnam . Viewed at: 
http://country.eiu.com/filehandler.ashx?issue_id=520455435&mode=pdf . 
45 International Energy Agency, Viet Nam. Viewed at: https://www.iea.org/coun tries/viet -nam. 
46 International Energy Agency, Viet Nam. Viewed at: https://www.iea.org/countries/viet -nam. 
47 Law on Energy Saving and Efficiency No.  50/2010/QH12, issued on 17 June 2010 and entered into 
force on 1 January 2011.  
48 The items subject to these requirements are household appliances, office and commercial equipment, 
industrial equipment, and means of transport, including passenger cars of nine seats or less, motorbikes, and 
mopeds.  
49 Approved by Prime Minister's Decision No.  403/QD -TTg, issued on 20 March 2014.  WT/TPR/S/ 410 • Viet Nam  
 
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 emissions and the use of clean and renewable sources of energy in a wide range of activities in 
agriculture and industry.  
4.51.   The construction of two nuclear power plants50 was terminated in 2016, due to lower 
projections in electricity demand. Prime  Minister's Decision No.  11/2017/QD -TTg (on the mechanism 
for the promotion and development of solar -power projects in Viet  Nam), issued on 4 April 2017, 
established favourable conditions for the development of solar -power projects; Prime Minister's 
Decision No.  37/20 11/QD -TTg (on the mechanism supporting the development of wind -power 
projects in Viet  Nam), issued on 29  June 2011, as amended by Prime Minister's Decision 
No. 39/2018/QD -TTg, issued on 10 September 2018, does the same for wind -power projects. 
Besides tax and import incentives (Section 3.3.1), these Decisions aim to ensure a higher price than 
the average retail price for electricity produced by these projects. The authorities  note a substantial 
uptake of solar - and wind -power projects, mainly by private inv estors.  
4.2.2.1   Electricity  
4.52.   Some specific segments of the electricity market witnessed a major shift towards increased 
competition between service providers during the review period, and power consumption continues 
to surge by a 2 -digit growth rate on a yearly bas is. Viet  Nam aims to achieve a balanced development 
of its electricity market as a critical element for economic growth. The authorities estimate that the 
total investment capital needed to respond to the demand increase is currently about USD 10 billion 
per year, and this need will continue increasing up to USD  50 billion to USD 60 billion in 2035.51 
4.53.   Increases in demand pushed electricity consumption above 200  billion kWh in 2018. The 
authorities forecast that it will reach 245 billion kWh in 2020 – 2.1% g rowth annually – and will 
reach about 550 -600 billion kWh by 2030. Nearly all communes are connected to the electricity grid, 
and more than 98% of rural households have electricity. The Rural Electrification Project, with the 
financial support of the Asian  Development Bank, aimed to connect 99.9% of the population to the 
grid by 2020.52  
4.54.   In 2018, the electricity generation capacity was 49,410  MW, mainly from coal -fired power 
plants and hydropower generation, which accounted for 38% and 34%, respectively. Th e remainder 
of the installed capacity consisted of gas and oil -fired turbines (18.0%), renewable energy (8.0%), 
and imports (1.2%). In 2016, the majority of the electricity supply was delivered by hydropower 
and coal -fired plants, which accounted for 42.1%  and 34.0% of total electricity output, respectively; 
these were followed by gas (17.4%) and oil (2.9%). The remaining 3.4% consisted of electricity 
imports from China and the Lao  People's Democratic Republic.53 In 2016, the industry and 
construction secto r and the administration and residential sector were the main buyers of electricity, 
with a demand share of 54.6% and 33.2%, respectively, in 2016.54 
4.55.   The current production capacity is not able to cope with the development of the electricity 
market. Delays  in the construction of thermal power plants, mainly coal -fired ones, and transmission 
losses due to an unbalanced distribution of power plants across regions contribute to the mismatch 
 
50 Reuters , "Vietnam Abandons Plan for First Nuclear Power Plants", 22  November 2016. Viewed at: 
https://www.reuters.com/article/us -vietnam -politics -nuclearpower -idUSKBN13H0VO . 
51 VN Express , "Power Shortage May Pose a Development Challenge for Vietnam", 16 July 2018. Viewed 
at: https://e.vnexpress.net/news/business/p ower-shortage -may-pose-a-development -challenge -for-vietnam -
3776784.html . 
52 The project was executed by the MOIT and Viet  Nam Electricity, and ran between 2015 and 2020. 
Asian Development Bank, Viet Nam: Rural Electrification Project . Viewed at: 
https://www.adb.org/projects/49131 -002/main#project -pds. 
53 Information provided by EVN's National Load Dispatch Centre (NDLC).  
54 Information provided by EVN's NDLC.  WT/TPR/S/ 410 • Viet Nam  
 
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 between supply and demand.55 Recently, severe climate conditions also worsened the production 
capacity of hydropower generation, and increased the risk of power shortages.56 
4.56.   According to the 2004 Law on Electricity57, as amended by Laws No.  24/2012/QH13 
(amendments and additions to a number of articles of the Law on Electric ity), issued on 
20 November  2012 and entered into force on 1 July 2013, and No.  28/2018/QH14 (amendments 
and additions to a number of articles of 11 laws related to planning), issued on 15 June 2018 and 
entered into force on 1  January 2019, the State holds  a monopoly in transmission, management of 
the national electricity system, and construction and operation of "large" electricity plants of socio -
economic, defence, or security significance. In line with the objectives of the Power Development 
Plan VII (PD PVII)58, Viet Nam adopted a roadmap to establish a competitive market for electricity 
through Prime Minister's Decision No.  63/2013/QD -TTg (regulations on the power sector, and 
conditions and structure for the development of the electricity market in Viet  Nam), issued on 8 
November 2013.59 Three segments are being considered for increased competition in this market: 
generation, wholesale, and retail. Each segment is to be liberalized gradually and sequentially until 
a completely liberalized retail market be comes effective in 2024, while the Government plans to 
continue regulating retail prices to ensure that consumers benefit from increased competition in the 
market. Greater competition and private participation are expected to improve efficiency and reduce 
transmission and distribution losses.  
4.57.   Decree No.  137/2013/ND -CP, issued on 21 October 2013, as amended by Decree 
No. 08/2018/ND -CP, issued on 15 January 2018, and Decree No.  17/2020/ND -CP, issued on 
5 February 2020, prescribe the requirements to obtain lic ences for the generation, transmission, 
distribution, wholesale, retail, export, and import of electricity. MOIT Circular No.  21/2020/TT -BCT, 
issued on 9 September 2020, details the content of dossiers to be submitted by operators, and 
specifies a maximum duration of licences, ranging between 10 and 20 years, for different activities.  
4.58.   The MOIT sets the general policy direction, and issues licences for electricity operations. The 
regulatory functions concerning electricity are also under the MOIT.  
4.59.   The state -owned Viet  Nam Electricity (EVN)60 plays an important role in the electricity market, 
as it intervenes, through its dependent units and subsidiaries61, in all segments (generation, 
transmission, wholesale, and retail distribution). In 2019, the EVN's gene ration corporations (its 
hydropower plants, EVN Genco 1, EVN Genco 2, and EVN Genco 3)62 accounted for 53% of electricity 
production. Another two SOEs, PetroVietnam Power Corporation (PVN) and Vinacomin Power 
Corporation, accounted for 8% and 3% of the pro duction capacity, respectively, while Build -Operate -
Transfer (BOT) projects accounted for 7%, and independent power producers (IPPs)63 accounted for 
the remaining 27% in the same year. The Electric Power Trading Company, the National Power 
 
55 In 2016, distribution a nd transmission losses were estimated at 5.2% and 2.4%, respectively, of the 
total electricity supply. Nga, V., et al. (2019), "The Challenges and Opportunities for the Power Transmission 
Grid of Vietnam", European Journal of Electrical Engineering , Vol. 2 1, No.  6, December; and VN Express , 
"Power Shortage May Pose a Development Challenge for Viet  Nam", 16 July 2018. Viewed at: 
https://e.vnexpress.net/news/business/power -shortage -may-pose-a-development -challenge -for-vietnam -
3776784.html . 
56 VN Express , "Hydropower Dams Run Out of Water on Lack of Rain", 22  December 2019. Viewed at: 
https://e.vnexpress.net/news/news/hydropower -dams -run-out-of-water -on-lack-of-rain-4031062.html . 
57 Law No.  28/2004/QH 11 was issued on 3 December 2004 and entered into force on 1 July 2005.  
58 The N ational Power Development Plan for the 2011 -20 Period, Vision to 2030, was approved by Prime 
Minister's Decision No.  1208/QD -TTg, issued on 21 July 2011, and revised by Prime Minister's Decision 
No. 428/QD -TTg, issued on 18 March 2016.  
59 Further restructur ing of the electricity industry included the transformation of the National Power 
Transmission Corporation into a one -member limited liability company directly under the EVN.  
60 Note that the Commission for the Management of State Capital in Enterprises (CM SC) exercises state 
ownership over the EVN.  
61 Most subsidiaries operate in the form of one -member liability companies, or joint -stock companies for 
those who complete their equitization.  
62 In total, 55 power -generation plants are under the management of th e EVN. Eleven strategic 
hydropower plants are dependent units of the EVN, while all other generation plants (hydropower, coal -fired, 
gas-fired, and oil -fired) were redistributed among the three independent EVN Gencos initially operating as one -
member liabi lity companies.  
63 Currently, the largest IPP and the largest foreign -invested power project is the Mong Duong 2 Power 
Plant in Quang Ninh province. An investment of USD 2.1 billion was needed for the construction of this coal -
fired power plant, which has a  capacity of 1,240 MW. Another 79 power plants (hydro, thermal, gas, and 
renewables) operate in Viet  Nam, 74 of which have a production capacity greater than 30 MW.  WT/TPR/S/ 410 • Viet Nam  
 
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 Transmission Cor poration, and five power corporations (Hanoi, Ho Chi Minh City, Northern, Central, 
and Southern) – all units or subsidiaries of the EVN – are the sole providers for wholesale and retail 
distribution in each specific region.64 
4.60.   Regarding the establishment of a competitive market for the generation segment, Prime 
Minister's Decision No.  852/QD -TTg, issued on 14 June 2017, approved the Master Plan on 
Restructuring and Rearranging Enterprises under the EVN for the period 2017 -20; th e Decision 
stipulated, inter alia, the equitization of the three generation corporations. Similarly, Prime Minister's 
Decision No.  1977/QD -TTg, issued on 8 December 2017, approved the Equitization Plan of 
PetroVietnam Power Corporation, while the equitizat ion of Vinacomin Power Corporation was part of 
a general equitization programme of subsidiaries that was started in 2012 by Vinacomin. At end -
2020, three of the five power -generation corporations (EVN Genco 3, Vinacomin Power, and 
PetroVietnam Power) were equitized65; EVN Genco 1 and EVN Genco 2 remain to be equitized.  
4.61.   Electricity production remains an attractive sector for FDI; 61 projects amounted to 
USD 15.4 billion (10.8% of all FDI) between 2013 and 2019, making it the third most invested sector 
over this period. The authorities consider that a competitive market for power generation has been 
operating since 2012. The equitization of power -generation corporations under SOEs has not 
significantly increased the participation of the domestic and foreign p rivate sectors in major power -
generation corporations. In 2019, 20% of the shares of PetroVietnam Power Corporation were held 
by domestic and foreign investors, while less than 1% of those of EVN Genco 3 were held by 
shareholders other than the EVN.66 
4.62.   Regarding wholesale, the EVN's National Load Dispatch Centre is responsible for the system 
and market operations.67 Under the Viet  Nam Competitive Generation Market project, the Centre 
built the IT infrastructure, developed procedures and regulations, and prov ided training to human 
resources for the operation of the electricity market. After a pilot phase, the Viet  Nam Wholesale 
Electricity Market (VWEM) started operations on 1 January 2019. More than 100 power plants (out 
of 273 in the country), accounting for  half of the installed capacity, are connected to an electricity 
market information system, and can sell their production directly to wholesaler purchasers. IPPs with 
a production capacity of at least 30  MW can also sell directly to wholesaler purchasers, while BOT 
projects and renewable generation plants (other than hydropower) participate indirectly in the 
market.68  
4.63.   Before the establishment of the VWEM, all generation units sold their production to the EVN. 
In this first phase of the VWEM, the electricit y wholesale purchasers include the five Power 
Corporations under the EVN and the EVN's Electric Power Trading Company (EPTC). The EPTC acts 
as an intermediary buying energy from generation units participating indirectly in the VWEM and 
selling it to Power Corporations for retail distribution.69 Spot prices for direct sales in the VWEM are 
determined based on offers by generation units, which cannot be above ceiling prices calculated 
according to their variable costs and type of generation unit (MOIT Circula r No. 45/2018/TT -BCT, 
Articles  14 and 43, as amended by MOIT Circular No.  24/2019/TT -BCT). In the long term, it is 
expected that eligible70 customers for electricity will also participate in the VWEM and purchase their 
energy directly on the market.  
 
64 Note that Article  4, Clause 2, of the Law on Electricity does not foresee a state monopol y for 
wholesale and retail distribution. Article  5 of the Law promotes the participation of domestic and foreign private 
investors.  
65 At end -2019, 20% of the shares of PetroVietnam Power were held by foreign shareholders and 
shareholders other than the Gov ernment, and only 0.8% of the shares of EVN Genco 3 by shareholders other 
than the EVN.  
66 EVN Genco 1 and PetroVietnam Annual Reports 2019.  
67 MOIT Decisions No.  6463/QD -BCT (approving the plan for the VWEM), issued on 22 July 2014, and 
No. 8266/QD -BCT (ap proving the detailed plan for the VWEM), issued on 10 August 2015, and MOIT Circular 
No. 45/2018/TT -BCT (regulating the operation of the VWEM and amending and supplementing a number of 
articles of MOIT Circular No.  56/2014/TT -BCT), issued on 15 November 20 18, approved the plans, the 
organization, and the necessary steps for the liberalization of this segment.  
68 MOIT Circular No.  45/2018/TT -BCT, Article  4. 
69 The EPTC can also purchase electricity for generators selling their production directly on the VWEM 
and, thus, it also competes with Power Corporations on the spot market.  
70 MOIT Decision No.  2093/QD -BCT, issued on 7 August 2020, stipulates that electricity consumption, 
connection voltage, and other infrastructure requirements will be used to determine th is eligibility. Specific 
criteria or thresholds are not yet mentioned in the current regulation.  WT/TPR/S/ 410 • Viet Nam  
 
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 4.64.   According to the roadmap announced by the Prime Minister, Viet  Nam aims to have a fully 
operational retail electricity market in 2024. This setu p foresees that competition between retail 
distributors emerges and that consumers can choose among retailers for electricity supply. The MOIT 
issued Decision No.  2093/QD -BCT on 7 August 2020 to approve the scheme for the retail electricity 
market, and sub mitted a proposal to the Prime Minister for a reform of the electricity sector to fulfil 
the requirements of a competitive retail market.  
4.65.   The Government maintains control over retail electricity prices. Articles 29 and 31 of the 
Electricity Law specify tha t a reasonable electricity retail price should be adopted for different 
customer groups (production, business, administration, and residential use) and that the retail price 
should be within the price bracket determined by Prime Minister's decisions; curre ntly, Prime 
Minister's Decisions No.  28/2014/QD -TTg (on the structure of electricity retail price tariffs), issued 
on 7 April 2014, and No.  24/2017/QD -TTg (on the mechanism for adjusting the average retail 
electricity price), issued on 30 June 2017, stipul ate the retail tariff structure and the mechanism for 
adjustments of the average retail price. Retail prices are fixed with respect to this average retail 
price by taking into consideration consumption levels for residential users, and time of consumption 
(normal, off -peak, and peak hours), voltage levels, and type of activity for other customer groups.71 
The electricity price is to be set through consideration of costs of electricity production, the allowed 
profit,72 and estimated total commercial electric ity generation.73 The average electricity price can be 
readjusted only after a period of at least six months from the latest adjustment. Decreases in 
average electricity price must be reflected in the retail price, while a 10% increase in the average 
electricity price is needed for the retail price to be raised. Since March 2019, the average electricity 
price has been set at VND 1,864/kWh (1,437/kWh  in 2012).74 To counter the negative impact of the 
COVID -19 pandemic, MOIT Official Dispatches No.  2698/BCT -DTDL and No.  9764/BCT -DTDL 
approved a 10% temporary discount in electricity bills for six months in 2020.75 
4.66.   In accordance with Circular No.  02/2017/TT -BCT, the MOIT approves transmission fees 
proposed by the EVN on a yearly basis. The fee takes into consider ation the total allowed revenue 
(including capital expenditure, operation, and maintenance costs) of the National Power 
Transmission Corporation (NPTC) and the forecast of the total amount of electricity to be 
transmitted. Distribution costs are determined  based on the average electricity retail price.  
4.67.   In 2016, the Prime Minister approved a revised version of the seventh Power Development 
Plan (PDPVII), which covers the period 2011 -20.76 The revised PDPVII included a shift towards coal -
fired generation as a  response to rapidly growing demand; the Government expects that coal power 
plants will provide 53.2% of the power supply by 2030 (34.4% in 2015). The revised PDPVII  also 
provided for the increase of renewable energy resources from 3.5% of total electricit y production in 
2010 to 4.5% in 2020 and 6.0% in 2030.77 Public interviews and press articles in early 2020 suggest 
a boost on targets for solar and wind generation, and a lowering of coal capacity in the long term. 
The Electricity and Renewable Energy Aut hority (EREA), another agency under the MOIT, was 
established in 2017 to be in charge of the infrastructure planning, development, and promotion of 
the renewable energies.  The authorities note that renewable power is expected to represent about 
35%-40% of the installed capacity and 25% -30% of the output by 2030. Wind, solar, and biomass 
power are expected to account for 15% -20% of the installed capacity and 10% -15% of the output 
 
71 Poor households are supported with a monthly allowance equivalent to 30 kWh for domestic use.  
72 Authorities indicate that the retail prices are regulated con sidering a maximum allowed profit of 3% 
on EVN's equity.  
73 Changes in inputs of all phases, including generation, transmission, retail distribution, administration, 
and ancillary services should be captured by total cost of electricity generation. Therefor e, fluctuations in 
foreign exchange, fuel prices, and electricity productivity affect this estimation.  
74 Different voltage -based prices were applicable to consumers using electricity for production (range 
between VND 970/kWh and VND 3,076/kWh), services provision (between VND 1,361/kWh and 
VND 4,587/kWh), administration (between VND 1,659/kWh and VND 1,902/k Wh), and residential (between 
VND 1,678/kWh and VND 2,927/kWh) as prescribed in MOIT Decision No.  648/QD -BCT, issued on 20 March 
2019.  
75 The discount was effective in April, May, June, October, November, and December 2020.  
76 Prime Minister's Decisions No.  1208/QD -TTg, issued on 21 July 2011; and No.  428/QD -TTg, issued on 
18 March  2016.  
77 Prime Minister's Decision No.  1208/QD -TTg, issued on 21 July 2011, and revised by Prime Minister's 
Decision No.  428/QD -TTg, issued on 18 March 2016.  WT/TPR/S/ 410 • Viet Nam  
 
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 by the same period. These objectives are expected to be reflected in the ongoin g drafting of the new 
Power Development Plan VIII (PDPVIII).78 
4.68.   The Renewable Energy Development Strategy to 2030, Vision to 205079, also set objectives 
for the development of renewables, and some sector -specific policies have been implemented since 
2016. F or instance, Prime Minister's Decisions No.  11/2017/QD -TTg, No.  37/2011/QD -TTg, and 
No. 39/2018/QD -TTg stipulate favourable conditions for the development of solar -power and wind -
power projects, notably by guaranteeing a feed -in tariff scheme through long -term contracts to 
renewable energy producers.  
4.69.   Imports of electricity (HS 2716.00.00) are subject to an applied MFN tariff of 1%, which has 
remained unchanged since last Review.  
4.2.2.2   Hydrocarbons  
4.70.   Viet Nam's oil and gas industry considerably reduced its contribu tion to national exports, 
falling from almost 7% in 2013 to slightly more than 1% in 2019. This reduction in export shares is 
not only due to the fall of international prices but also to substantial reduction of volumes exported 
(e.g. -57% of quantities fo r crude oil). Domestic oil production, including production by foreign -
invested enterprises, was 13 billion cubic metres (bcm), which corresponds to 78% of production in 
2013 (16.7 bcm). As for imports, refined oil remains the main imported product in mini ng and 
quarrying, although imported values have remained relatively stable since 2013. During this period, 
crude oil imports increased by 239%. The transport sector drives the demand in petroleum products; 
diesel and gasoline are the main products in domes tic demand. The production of natural gas 
remained stable during the review period with slight fluctuations around 9.75 bcm per year. It is 
consumed in power generation (80%), fertilizers (11%), and industrial and household operations 
(9%). As with mining,  oil and gas projects require the Prime Minister's approval, as they are listed 
as conditional business sectors in the Investment Law.  
4.2.2.2.1   Upstream  
4.71.   The upstream oil sector is operated by the state -owned Viet  Nam Oil & Gas Group 
(PetroVietnam). PetroVietnam, the country's biggest company in terms of profits in 2019, is under 
the authority of the MOIT and currently contributes 10% of the state budget in terms of earnings 
and tax payments. PetroVietnam is the largest company in terms of profits in Viet Nam; its pre -tax 
profit amounted to USD 2.2 billion in 2019.80 The current organizational structure and operation of 
PetroVietnam are stipulated in Decree No.  07/2018/ND -CP, issued on 10 February 2018.81 As is the 
case with other large state -owned con glomerates, PetroVietnam is no longer under the responsibility 
of the MOIT, and the ownership role of the State is now exercised by the Commission for the 
Management of State Capital in Enterprises (CMSC).  
4.72.   The Law on Petroleum continues to govern the secto r.82 The MOIT remains the regulatory 
authority for oil and gas activities. Decree No.  95/2015/ND -CP, issued on 16 October 2015, 
implements regulations prescribed in the Law and replaced all previous regulations in this regard. 
This regulation prescribes co nditions applying to activities related to exploration and extraction; 
 
78 In addition, the deve lopment of a power grid with neighbouring countries, the adaptation to climate 
change, the reliability of the power supply, and the promotion of investment in electricity development are 
considerations for the drafting of the PDPVIII.  
79 Prime Minister's Decision No.  2068/QD -TTg (approving Viet  Nam's Renewable Energy Development 
Strategy to 2030, Vision to 2050), issued on 25 November 2015.  
80 Ha, V., "PetroVietnam Ranks First in Profit", Vietnam Investment Review , 30 September 2019. Viewe d 
at: https://www.vir.com.vn/petrovietnam -ranks -first-in-profit -70831.html . 
81 PVN's functions are to carry out oil and gas activities; organize exploration and exploitatio n of 
resources and their storage and processing; guide oil and gas production and business as prescribed by law; 
establish contracts with companies operating in the sector; and invest through subsidiaries and associates.  
82 Law No.  18-L/CTN (on oil and gas) , issued on 6 July 1993 and entered into force on 
1 September  1993, as amended by Laws No.  19/2000/QH10 (amendments and additions to a number of 
articles of Law No.  18-L/CTN), issued on 9 June 2000 and entered into force on 1 July 2000, and 
No. 10/2008/QH1 2 (amendments and additions to a number of articles of Law No.  18-L/CTN), issued on 
3 June 2008 and entered into force on 1 January 2009. The amendment implemented by Law 
No. 35/2018/QH14, issued on 20 November 2018 and entered into force on 1 January 2019 , concerns only the 
removal of a word in Article  38. WT/TPR/S/ 410 • Viet Nam  
 
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 bidding procedures in oil and gas projects; processing, storing, and transporting oil and gas from 
the mining area to the point of delivery; and cleaning works for equipment and facilit ies engaged in 
petroleum activities. Three forms for the selection of contractors83 exist: open bidding, competitive 
bidding, and contractor selection. The contract duration between PetroVietnam and contractors must 
not exceed 25 years, during which the ex ploration period must not exceed 5 years. For "encouraged" 
projects, the contract duration must not exceed 30 years, during which the exploration period must 
not exceed 7 years. Contracts might be extended for additional period of five years.84 Decree 
No. 124/2017/ND -CP, issued on 15 November 2017, regulating offshore investment in oil and gas 
activities stipulates conditions for the transfer of funds, goods, machinery and equipment, the 
application requirements for offshore investment registration certific ate, and the administrative 
obligations and operations within Viet  Nam including remittances and capital transfers.  
4.73.   Prime Minister's Decision No.  49/2017/QD -TTg (on cleaning works for equipment and facilities 
engaged in oil and gas activities), issued on 2 1 December 2017, regulates the conditions applying 
to cleaning works following oil and gas activities. Within nine months of commercial operation, 
contractors are requested to submit a clean -up plan to the MOIT. The clean -up plan must include 
technical sol utions, technology, total cost and cleaning schedule, and equipment to be used.85 
Contractors are notably responsible for establishing a fund to cover the financial obligations for these 
works.  
4.74.   Prime Minister's Decision No.  1748/QD -TTg, issued on 14 Octobe r 2015, approved the 
Development Strategy for the Oil and Gas Industry of Viet  Nam to 2025, Vision to 2035. It aims at 
mobilizing resources to invest and develop the petroleum industry; enhance the financial, scientific, 
and technological competences of en terprises operating in the sector; and increase competitiveness. 
The Strategy's goals by 2025 are to: (i)  almost double current gas production with an objective of 
21 bcm per year; (ii)  have a total refining capacity of 18 -20 million tonnes per year; (iii)  enhance 
the capacity to import liquified natural gas (4 bcm); and (iv)  improve the stockpiling capacity to 90 
days of net import.  
4.75.   The Prime Minister issued the Official Dispatch No.  1182/TTg -DMDN on 11 August 2017, 
approving a list of enterprises under Pe troVietnam to arrange, equitize, and divest capital for the 
period 2017 -20. In recent years, the following subsidiaries were equitized: PetroVietnam Oil 
Corporation, PetroVietnam Gas Corporation, PetroVietnam Power Corporation, and Binh Son 
Petrochemical R efinery. In 2018, PetroVietnam collected VND 16.5 trillion (USD  717 million) after 
completing the equitization of PetroVietnam Power Corporation, PetroVietnam Oil Corporation, and 
Binh Son Refining and Petrochemical Company.86  
4.76.   Foreign investors participat e mainly in exploration activities. In 2019, production of crude oil 
related to foreign -invested firms represented around 90%  of domestic production.87 PetroVietnam 
maintains partnerships with several other international oil companies, national oil compani es, and 
smaller independent energy companies.88 The authorities note that in the past three years, the oil 
and gas industry mobilized investment capital of about VND 90 trillion (USD 3.87 billion USD), of 
which commercial loans represented 65% -70% and dire ct capital contribution from domestic 
enterprises and foreign investment the remaining 30% -35%.  
4.77.   Decree No.  1084/2015/UBTVQH13, issued on 10 December 2015, stipulates royalty rates 
(ranging between 2% and 29%) for crude oil; natural gas and coal gas are tax ed at progressive tax 
rates depending on the daily average production output. Lower rates continue to be applied to 
"encouraged" investment projects, and royalty rates range between 1% and 23% (1 -6 percentage 
 
83 Potential contractors for these biddings include PetroVietnam subsidiaries.  
84 In that case, the exploration period may be extended up to one additional year.  
85 The regulation provides further condition s according to the location and type of resource under 
exploitation.  
86 Ha, V., "PetroVietnam Ranks First in Profit", Vietnam Investment Review , 30 September 2019. Viewed 
at: https://www.vir.com.vn/petrovietnam -ranks -first-in-profit -70831.html . 
87 The main foreign companies conducting these activities include Zarubeznheft, Nippon Oil, Exxon 
Mobil, Rosneft, Gazprom, Korea National Oil Corporation, SK Group, Perenco, and PTT Ex ploration and 
Production (PTTEP).  
88 These include Exxon Mobil, Chevron, Eni, Vietgrazprom, Rosneft, Zarubeznheft, Korea National Oil 
Corporation (KNOC), SK Group, India's ONGC, Malaysia's Petronas, Nippon Oil of Japan, Thailand's PTTEP, 
Premier Oil, SOCO I nternational, Murphy Corporation, and Jadestone Energy.  WT/TPR/S/ 410 • Viet Nam  
 
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 points lower than for ineligible projects).89 Their valuation basis is the selling price at the place of 
delivery or the export price according to Article  6(d) of the Law on Severance Taxes (Royalties).  
4.78.   The average applied MFN tariff on mineral fuels and oils obtained from bituminous substances, 
and on  mineral waxes (HS Chapter 27) increased from 4.5% in 2013 to 7.1% in 2020. Prime 
Minister's Decision No.  28/2019/QD -TTg (amendment and addition to Article  2 of Prime Minister's 
Decision No.  45/2017/QD -TTg), issued on 16 September 2019, reduced the applied  MFN tariff for 
crude oil from 5% to 0%.  
4.2.2.2.2   Downstream  
4.79.   Currently, Viet  Nam has two refineries in operation. The country's first crude oil refinery, the 
Dung Quat refinery, is managed by Binh Son Refining and Petrochemical Company, an equitized 
company in whic h the participation of PetroVietnam accounts for 92% of shares. Until 2018, it was 
Viet Nam's only refining facility; it covered about 30% of the demand in petroleum products. Refined 
product imports amounted to USD  7.6 billion in 2017 (20.4% of all mining  and quarrying imports). 
In 2018, a second refinery came into operation, run by Nghi Son Refinery and Petrochemical 
Company, an international consortium with PetroVietnam participating in about a quarter of the 
shares. This second refinery enabled Viet  Nam to start importing larger quantities of crude oil. 
Between 2017 and 2019, imports of crude oil were multiplied by a factor of 5.9 (USD 3.8 billion in 
2019), and exports of crude oil decreased substantially over the same period ( -40%). By 2022, the 
combine d capacity of the two  refineries will be 392,000 barrels per day.90 A third refining complex 
is under construction.  Viet Nam does not apply quotas on domestic production of crude oil to supply 
domestic refineries.  
4.80.   Viet Nam National Petroleum Group ( Petrolimex), an equitized company91, is a major actor in 
other downstream operations. It has more than 5,500 petroleum stations across the country, and 
owns a distribution network of more than 570  km of petroleum pipelines. Petrolimex is the primary 
compan y for importing petroleum products, and accounts for about 30% of the total petroleum 
distribution market; PVOil, a subsidiary of PetroVietnam, accounts for another 10% of the 
distribution market.  
4.81.   Decree No.  83/2014/ND -CP (on petroleum business), issued o n 3 September 2014, as 
amended by Decree No.  08/2018/ND -CP, issued on 15 January 2018, stipulates the conditions for 
enterprises to obtain a business permit for oil and gas trading, export, and import activities. Among 
their obligations, licensed companies  must import a designated amount annually based on previous 
performance of each company and a forecast of the minimum import volume required for domestic 
consumption. In 2020, the total volume required for Viet  Nam was estimated at 7 million tonnes.  
4.82.   Article 37 of Decree No.  83/2014/ND -CP prescribes conditions to set up the Price Stabilization 
Fund (PSF) used for the purpose of market stabilization and price stabilization for different petroleum 
products, i.e. gasoline, diesel, kerosene, and mazut oils. Trad ers set aside funds for the PSF and 
submit monthly financial statements of their accounts to the MOF and the MOIT. The funds are 
financed with a specific amount (VND 300 per litre or kg) collected on the retail sale of petrol and 
oil. The balance of PSF is  published quarterly on the MOIT's and MOF's websites; at the end of the 
third quarter 2020, the balance of PSF was VND 10.05 trillion (approximately USD 436 million). The 
PSF intervenes when the base price (see below) for each petroleum product is above t he current 
retail price and a price adjustment of more than 3% becomes necessary. For adjustments beyond 
 
89 Projects eligible for investment promotion include oil and gas activities in deep water and offshore 
areas, areas with especially difficult geographical conditions and complicated geological conditi ons, and other 
projects pursuant to paragraph 2, Article  1, of Law No.  10/2008/QH12, which amended and supplemented a 
number of articles of the Petroleum Law.  
90 After the completion of the expansion plan, 200,000 barrels per day will come out of Nghi Son 
Refinery and Petrochemical Company, while Binh Son Refinery and Petrochemical Company produces 192,000 
barrels per day.  
91 The State holds 83.8% of shares in Petrolimex through participations by the CMSC and PetroVietnam. 
Petrolimex, Annual Report 2019 . WT/TPR/S/ 410 • Viet Nam  
 
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 3% and up to 7%, the PSF covers 50% of the increase beyond 3%.92 For adjustment above 7%, the 
Prime Minister might consider other measures.  
4.83.   MOIT and MOF Joint Circular No.  39/2014/TTLT -BCT-BTC, issued on 29 October 2014, as 
amended by Circular No.  90/2016/TTLT -BTC-BCT, issued on 24 June 2016, provides further details 
on the calculation of the base price considering elements such as cost -insurance -freight (c.i.f.) price, 
import duty, special consumption tax, foreign exchange rate, VAT, operating expenses, an 
established profit margin, environmental protection tax, other taxes, and deductions according to 
current law provisions. The price is calculated ba sed on the average over 15 days. Price increases 
of less than 3% from the previous base price are directly implemented by operators; increases 
between 3% and 7% must be decided by the MOIT and the MOF within three days; and increases 
above 7% must be appro ved by the Prime  Minister. Price decreases are directly implemented by the 
operators. The interval between two  consecutive retail price adjustments is at least 15 days for a 
base price increase, and a maximum of 15 days for a decrease. In all cases, operat ors must declare 
adjustments to the MOIT.  
4.84.   Applied MFN rates on tariff lines related to HS Subheading 271012 have remained unchanged 
since 2013. An  MFN tariff rate of 20% is applied to most of these tariff lines, and only 2 of 22 tariff 
lines are subject to  a 7% tariff rate. Preferential tariff rates for HS Subheading 271012 were modified 
multiple times during the review period through MOF Circulars.  
4.85.   As at January 2019, the environmental protection tax levied on items that can cause a 
negative environmental impact was adjusted for petroleum products.93 The current tax consists of 
specific rates ranging from VND 1,000 per litre (fuel) to VND 4,000 per litre (gasoline, except 
ethanol) set from a specific tax frame.  
4.2.2.2.3   Natural gas  
4.86.   Prime Minister's Decision No.  60/QD-TTg, issued on 16 January 2017, approved the Master 
Plan for the Development of the Gas Industry to 2025, Vision to 2035. It aims to promote an overall 
development of the gas value chain with the aim of ensuring an indigenous production of 17  bcm to 
21 bcm per year. The strategy foresees the imports of gas will amount up to 4 bcm by 2025 and 
peak at 10  bcm by 2035. Thus, the strategy plans to build three or four terminals, mainly in southern 
Viet Nam, for liquified natural gas.  
4.87.   PetroVietnam Gas Joint Sto ck Corporation, an equitized company in which PetroVietnam holds 
nearly 96% of the share capital, is the main company of the natural gas sector, and it cooperates 
with foreign partners in the production and development of natural gas resources.94 Royalty r ates 
(ranging between 2% and 10%) for natural gas are taxed at progressive tax rates, depending on 
the daily output of the facility and lower rates apply to "encouraged" investment projects (ranging 
between 1% and 6%).95 Decree No.  87/2018/ND -CP, issued on  15 June 2018, regulates several 
aspects of business operations for liquified petroleum gas, liquified natural gas, and compressed 
natural gas. It prescribes that prices are to be decided by importers and exporters, and it also 
provides business conditions  for traders, retailers, and filling stations.  
4.88.   Natural gas price for power -generation plants is based on market price, which is fixed at 46% 
of the average monthly fuel oil (MFO) price in the Singapore market according to Platts Index. 
However, this price should not be lower than the wellhead price and related costs of natural gas. 
Currently, there is no regulation on pipeline costs for gas transport.  
 
92 MOIT and MOF Joint Circular No.  39/2014/TTLT -BCT-BTC (providing a calculation method of base 
price and management and use of the PSF regulated in Decree No.  83/2014/ND -CP), issued on 29  October 
2014, as amended by MOIT and MOF Joint Circular No.  90/2016/TTLT -BTC-BCT (amendments and additions to 
Joint Circular No.  39/2014/TTLT -BCT-BTC), issued on 24 June 2016, Article 7.  
93 Kerosene is the only petroleum product not subject to the environmental protection tax. National 
Assembly Standing Committee Resolution No.  579/2018/UBTVQH14, issued on 26 September 2018, replaces 
National Assembly Standing Committee Resolution No.  1269/2011/UBTVQH12, issued on 14 July 2011, as 
amended by National Assembly Standing Committee Resolution No.  888a/2015/UBTVQH13, issued on 
10 March 2015.  
94 Its main foreign partners are Zarubeznheft, Nippon Oil, Exxon Mobil, Rosneft, Gazprom, Korea 
National Oil Corporation, SK Group, Perenco, and PTTEP.  
95 Decree No.  1084/2015/UBTVQH13, issued on 10 December 2015.  WT/TPR/S/ 410 • Viet Nam  
 
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 4.89.   The applied MFN tariff on propane (HS 271112) decreased from 5% in 2013 to 2% in 2020; 
imports of natural g as remain free of duty, and all other tariff lines in HS Heading 2711 are subject 
to an MFN duty of 5%.  
4.3  Manufacturing  
4.90.   Manufacturing increased its contribution to GDP during the review period; it accounted for 
18.3% in 2019 (3. 5 percentage points more than in 2013). With 11.3 million manufacturing jobs, 
the employment share of the sector reached 20.7% in 2019, and a significant increase in the number 
of jobs (+ 2.5 million) was observed during the review period. Manufacturing exports more than 
doubled (+130% ) between 2013 and 2020. In 2019, telephones and spare parts, electronic products 
and components, textiles and textile articles, and machinery and electrical equipment accounted for 
27.1%, 18.1%, 10.6%, and 8.6% of total merchandise exports, respectively. Labour productivity 
grew by 27.2% between 2013 and 2019. In 2019, foreign -invested enterprises exported 
USD 183.2  billion, accounting for nearly 70% of the total merchandise exports.  
4.91.   Prime Minister's Decision No.  879/QD -TTg, issued on 9 June 2014, approve d the Industrial 
Development Strategy to 2025, Vision to 2035.96 Industries whose development is prioritized by the 
Strategy include mechanical engineering and metallurgy (shipbuilding, non -ferrous metals, and new 
materials); chemicals (pharmaceutical prod ucts); agricultural, forest, and fishery product 
processing; textiles, garments, leather, and footwear; electronic and telecommunications industries 
(computer equipment products, and telephones and components); and renewable energy 
industries.97 The object ives set by the Strategy are that industry (including construction) will account 
for 40% -41% of GDP by 2035, share of industrial products in merchandise exports will reach 90% 
by 2025, and high -tech industrial products and related applications will account  for over 50% of GDP 
after 2025. In line with these objectives, the Strategy aims to increase the quality of industrial 
products, and to develop supporting industries and industrial services. The MOIT, in coordination 
with other relevant ministries, overse es the implementation.  
4.92.   Decree No.  111/2015/ND -CP (on developing supporting industries), issued on 
3 November  2015, and MOIT Circular No.  55/2015/TT -BCT (regulating the order and procedures for 
confirmation of incentives and concessional conditions for pro jects of producing supporting industrial 
products under the list of supporting industrial projects preferred for development), issued on 
30 December 2015, regulate the procedures for providing incentives for the development of 
supporting industries, which are industries that produce raw materials, materials, components, and 
spare parts used to manufacture finished products. Incentives accorded may include reduced rates 
for corporate income tax, import duties, concessional loans from the Viet  Nam Environment al 
Protection Fund, and investment credits, as well as some flexibilities in the declaration of VAT. A 
Supporting Industry Development Program (SIDP) was established to promote research, 
development, training, and other objectives covered by the Strategy. Among the benefits of the 
SIDP, projects may receive funding for activities in management systems, human resources training, 
research and development including technology transfer, and information development. The 
programme of activities for the SIDP and f unding sources and management of resources for the 
period 2016 -25 were announced in Prime Minister's Decisions No.  68/QD -TTg (approving the SIDP 
from 2016 to 2025), issued on 18 January 2017, and No.  10/2017/QD -TTg (on management and 
implementation of the SIDP), issued on 3 April 2017. MOF Circular No.  29/2018/TT -BTC (guiding the 
establishment, management, and use of funds for the SIDP), issued on 28 March 2018, provides 
further guidance on units in charge of the implementation of the SIDP, conditions apply ing to 
supported enterprises, and maximum expenditure limits by supported enterprises. Initially, the SIDP 
consisted of two phases: Phase I (2016 -2020) and Phase II (2021 -2025). However, the programme 
has been implemented only since 2018, and 161 projects were supported with funds amounting to 
VND 640 billion during this period.98 
4.93.   Through international cooperation, the Industrial Development Strategy aims at promoting 
technology transfer to support research, development, application, and innovation in the p ilot 
 
96 Viet Nam is currently drafting an  update to the Industrial Development Strategy through 2025, Vision 
to 2035, with an extended scope until 2045.  
97 Appendix to Prime Minister's Decision No.  879/QD -TTg. 
98 VND 430 billion originated from the state budget approved in Decision No.  68, and VND 210 billion 
was part of other capital budget.  WT/TPR/S/ 410 • Viet Nam  
 
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 production of components, spare parts, and materials. However, projects involving technology 
transfer have not yet been submitted to the authorities.  
4.94.   The National Industrial Development Policy to 2030, Vision to 2045, is currently being drafted.  
4.95.   Custo ms established a customs value database, which is regularly updated by the General 
Department of Customs, serving as the basis for assessing the value risk of exported or imported 
goods. In 2020, Viet  Nam's average applied MFN tariff on industrial products  (HS 25 -97) is 10.7% 
(9% in 2013), applied MFN tariffs range between 0% and 100%, and 32.6% of tariff lines are 
imported duty free. The peak ad valorem  tariff rate is 100% (HS 630900: worn clothing) and 75% 
(27 tariff lines in HS Heading 8711 concerning mo torcycles). In 2020, six 2 -digit HS product groups 
(e.g. articles of leather, footwear, umbrellas, prepared feathers, human hair and wigs, ceramic 
products, and vehicles other than railway/tramway) were subject to average applied MFN tariff rates 
at twice the average rate for non -agricultural products; these ranged from 22.9% (articles of leather) 
to 38.9% (vehicles other than railway/tramway).  
4.96.   Since 2011, Viet  Nam has kept a list of products not encouraged for import, as specified in 
MOIT Decision No.  1380/QD-BCT. In 2009, the campaign "Vietnamese people prioritize using 
Vietnamese products" was launched, and it is still ongoing.  
4.97.   Domestic support to manufacturing activities is provided,  inter alia,  in line with investment 
incentives in the Investment Law (e .g. duty concessions, and temporary corporate income tax 
exemption or reductions) for firms operating in industrial and economic zones. Preferential rates on 
loans are provided for SMEs through the SME Development Fund.  
4.3.1   Textiles and garments  
4.98.   USD 38.8 bill ion of textiles and garments were exported in 2019, accounting for 14.7% of 
merchandise exports; Viet  Nam was among the world's largest textile and apparel exporters in 2019. 
The main destinations for exports are the United  States (39%), the European  Union  (11%), China 
(10.6%), Japan (10.8%), and the Republic of Korea (9.9%). The textiles and garments industry has 
more than 7,000 enterprises mainly located in industrial parks or craft villages (mostly SMEs), and 
around 1.75 million workers, equivalent to 17 .5% of all manufacturing and processing employment. 
The garments subsector accounts for 84.6% of the industry's output.  
4.99.   The authorities state that no SOE is operating in the textiles and garments sector; Vinatex 
was equitized, and the State keeps a majorit y participation (53.49%) under the management of the 
State Capital Investment Corporation.99 Currently, all domestic production is made by private 
enterprises, joint -stock enterprises, and foreign -invested enterprises. As at end -2018, 2,225 foreign 
investment projects, valued at VND 17.4 trillion, were registered in the sector.100 In 2019, foreign -
invested companies accounted for 59% of total exports of textiles and garments. Lower labour costs 
and a supply of relatively skilled workers are drivers behind the shifts of manufacturing units to 
Viet Nam in recent years.  
4.100.   The 2008 Mast er Plan for the Textiles Sector, Vision to 2020, generated positive results in 
the sector whose exports increased by 16.6% between 2011 and 2018. Garment products and fibres 
of all kinds led the growth. However, employment results were lower than those tar geted by the 
Strategy.  
4.101.   The COVID -19 pandemic has affected the textiles and garments industry, with a shortage of 
raw material imports and reduced demand for garments in Viet  Nam's main export destinations. 
Both shifts led to order cancellations, as well as  revenue and job losses for domestic manufacturers. 
The authorities note that about 30% of workers in the textiles and garments industry lost their jobs 
between February and June 2020, and the productivity level of the remaining 70% reduced by 50% -
60%. Dec ision of the Minister of Finance No.  436/QD -BTC (addition of items to the list of duty -free 
items for the prevention of coronavirus issued by Decision No.  155/QD -BTC), issued on 
 
99 Other shareholders in Vinatex include private investors: Vingroup (10%), and Intochu Textile 
Prominent (ASIA) Limited (13%).  
100 Information provided by the Viet  Nam Textile and Apparel Association (VITAS). The  authorities report 
that all foreign investors in the sector operate within the general framework established by the Investment 
Law. WT/TPR/S/ 410 • Viet Nam  
 
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 27 March  2020, applies a temporary elimination of import tariffs on non -woven fabrics for the 
production of protection clothing used to fight against the COVID -19 pandemic.  
4.102.   In 2020, applied MFN tariff protection for the textiles and garments sector ranges from zero 
to 20% (HS Chapters 50 -63), except for worn clothing (HS 63) whose a pplied MFN tariff might reach 
100%. Average MFN tariff protection, by HS chapter, ranges from 5.7% (HS 51: wool, fine or coarse 
animal hair) to 19.8% (HS 61: apparel and clothing). The authorities note that no policy related to 
price control, pricing guide lines, or subsidies is implemented for textile materials or inputs.  
4.3.2   Motor vehicles  
4.103.   With 28 vehicles per 1,000 people in 2019, Viet  Nam remains a small car market, and 
motorbikes remain the dominant mode of transport. There are over 50 million motorbikes in  
Viet Nam, and each year more than 3 million are sold.  
4.104.   Domestic production of cars consists mainly of completely -knocked -down (CKD) vehicles 
assembled for the domestic market. Local content amounts to 20% -25% on average, and only a few 
models approach 40% . Global carmakers101 are present in Viet  Nam through joint ventures, and 
local producers102 manufacture for international brands. As for the motorbike market, leading global 
brands103 compete with local brands in the domestic market but also export to other countries from 
facilities in Viet  Nam.104 The authorities note that the proportion of local inputs ("localization rate") 
used in the manufacturing of motorcycles is above 90%. In 2019, 3.25 million motorbikes were sold 
in the Vietnamese market, and Honda Vi et Nam, a joint venture with 89% State participation, 
dominates nearly 80% of the market.  
4.105.   In August 2019, the Development Plan for Viet  Nam's Automobile Industry105 expired 
following Government Resolution No.  63/NQ -CP. The authorities report that no specifi c development 
strategy or policies currently exist for this sector and that motorcycle production is regulated by the 
market.  
4.106.   The authorities note that there is no requirement on the use of local inputs for automobile 
manufacturing and assembly projects. B enefits such as reduced corporate income tax rate and excise 
tax are applied according to the Investment Law and relevant regulations. The authorities state that 
Viet Nam applies technical measures to second -hand motor vehicles, in compliance with the 
TBT Agreement. Prime Minister's Decisions No.  249/2005/QD -TTg and No.  16/2019/QD -TTg 
prescribe the implementation of emission standards for new, operating, and imported106 motor 
vehicles, including motorbikes. Second -hand motor vehicles less than five  years fro m the date of 
manufacture can be imported; Decree No.  122/2016/ND -CP, issued on 1 September 2016, as 
amended by Decree No.  125/2017/ND -CP, issued on 16  November  2017, regulates the type of tariff 
(specific, ad valorem , or compound) that applies to each typ e of car. Periodical inspections on 
emissions for motorcycles are to be included in the amendment to the Law on Road Traffic, which is 
currently being drafted.  
4.107.   MOF Circular No.  229/2016/TT -BTC (on rates, collection, payment, and management fees 
for registr ation and circulation plates of road motor vehicles), issued on 11 November 2016, 
regulates the management and fees relative to motor vehicle registration and issuance of plates; 
fees vary according to the type of motor vehicle and the location where the r egistration takes place. 
Motor vehicles might also be subject to other local taxes. Energy labelling requirements in Prime 
Minister's Decision No.  04/2017/QD -TTg, issued on 9 March 2017, also apply for passenger cars up 
to nine passengers, motorbikes, and mopeds. MOIT Circular No.  06/2019/TT -BCT prescribes that 
cars under 16 seats can be imported only through specific ports107, and MOIT Circular 
 
101 These include Toyota, Honda, Mercedes, Ford, and Hyundai.  
102 Thaco, Mekong, and Hyundai Thanh Cong are the main local manufacturers.  
103 Honda Viet  Nam, Piaggio, Suzuki, SYM, and Yamaha, among others.  
104 Imports of completely built -up units represent a marginal share of the motorbike market (less than 
2% in 2019).  
105 Prime Minister's Decision No.  1211/QD -TTg, issued on 14 July 2014.  
106 Imported vehicles include new and second -hand imported vehicles.  
107 The specific ports are Quang Ninh (Cai Lan), Hai Phong, Da Nang, Ho Chi Minh City, and Ba Ria - 
Vung Tau. Land imports of these vehicles are not permitted  WT/TPR/S/ 410 • Viet Nam  
 
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 No. 27/2018/TT -BCT abolished automatic import licensing for motorcycles with 175 cm3 engines or 
larger.  
4.108.   The averag e applied MFN tariff on motor vehicles (HS 8703) decreased by 4.9 percentage 
points between 2013 and 2020 (53.7% in 2020).108 This average rate is almost four times the 
average for all non -agricultural products.  
4.3.3   Other manufacturing activities  
4.109.   Production in  the leather and footwear industry amounted to USD 19.5 billion in 2019 (7.4% 
of total merchandise exports). The domestic production increased by 75% between 2012 and 2018. 
Sports shoes is the fastest growing segment, and it represented 70% of the national  production in 
2018. According to the Viet  Nam Leather and Footwear Association, the sector consisted of 
2,181  enterprises in 2017, 94.8% of which were enterprises with fewer than 3,000 employees. In 
2018, 350 foreign -invested companies operated in the cou ntry, accounting for nearly 80% of 
exports. In 2020, footwear was one of the sectors with the highest protection, with an average 
applied MFN tariff of 23.2%.  
4.110.   The MOIT is currently preparing a Strategy for the Development of the Leather and Footwear 
Indust ry to 2030, Vision to 2035. This strategy is expected to follow up on the Master Plan for 
Viet Nam's Leather and Footwear Industry Development to 2020, Vision to 2025, adopted by MOIT 
Decision No.  6209/QD -BCT, issued on 25 November 2010.  
4.111.   Prime Minister's D ecision No.  68/QD -TTg, issued on 10 January 2014, approved the National 
Strategy for the Development of the Pharmaceutical Industry to 2020, Vision to 2030. It aims to: 
(i) improve the availability and supply of medicines; (ii)  supply domestic inputs that account for 20% 
of inputs used in 80% of medicines consumed in Viet  Nam; (iii)  produce 40% of generic drugs 
locally; and (iv) enhance the quality of distribution systems. In line with those objectives, the 
Strategy seeks to attract foreign investment in dr ug manufacturing (including franchised 
manufacturing), production of biological vaccines and antibiotic raw materials, and bioavailability 
research and bioequivalence assessment.  
4.112.   Viet Nam enacted the Law on Pharmacy (Law No.  105/2016/QH13), issued on 6 Apr il 2016 
and entered into force on 1 January 2017. Decree No.  54/2017/ND -CP, issued on 8 May 2017, guides 
its implementation, and Decree No.  155/2018/ND -CP, issued on 12 November 2018, regulates 
investment and business conditions for enterprises operating i n pharmaceuticals. Import and export 
regulations applied to medicine and medicinal materials, as well as conditions for foreign -invested 
enterprises to import and export, are described in these Decrees. The new regulatory framework 
removed the requirement for new drugs in Viet  Nam to undergo complete clinical trials for 
registration purposes.109 Except for vaccines, the clinical trial requirement is waived for all new 
drugs, provided that they have sufficient clinical data on safety and efficiency, and they are circulated 
in at least one country. If domestically produced drugs satisfy the health requirements on medical 
treatment, price, and supply, tenders must stipulate that tenderers are not allowed to provide 
imported drugs. In 2017, the National Centralis ed Drug Procurement Centre was established to 
coordinate the purchase of a list of centralized procurement drugs promulgated by the Ministry of 
Health. The 2016 Law on Pharmacy allows for parallel import of drugs under the condition that the 
price of the i mported product is lower than the price of the original drug circulated in Viet  Nam.  
4.113.   Ministry of Health Circular No.  30/2015/TT -BYT (on imports of medical equipment), issued 
on 12 October 2015, provides that an import licence is required for 49 diagnostic  and treatment 
devices. This regulation also stipulates that used medical devices for commercial purpose are not 
allowed into Viet  Nam.  
 
108 Under HS Chapter 98, 230 tariff lines concerning CKD units are subject to specific conditions.  
109 A waiver was possible for drugs that have circulated legally for at least five years in their country of 
origin.  WT/TPR/S/ 410 • Viet Nam  
 
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 4.114.   Between 15 April and 5 May 2020, Viet  Nam applied a temporary export ban on certain drugs 
(37 items) used in the treatment of COVID -19.110 No other import or export ban applied to 
pharmaceutical products was reported by the authorities.  
4.115.   Imports in 2018 amounted to more than USD 3 billion, mainly from France, Germany, India, 
the United  States, Italy, Switzerland, the R epublic of Korea, and the United Kingdom. In 2020, the 
applied MFN rate for protection in pharmaceutical products (HS Chapter 30) was low (2.2%). Applied 
tariffs range from zero to 14% (waste pharmaceuticals); 63.6% of tariff lines are imported duty 
free.  
4.116.   Viet Nam notified a number of ongoing anti -dumping investigations to the WTO Committee 
on Anti -Dumping Practices (Section 3.1 .6). Definitive measures are currently applied on cold -rolled 
stainless steel (from China, Indonesia, Malaysia , and Chinese Taipei ), galvanized coating steel (from 
China and the Republic of Korea), H -beam (from China), flat -rolled iron or non -alloy steel (from 
China and the Republic of Korea), and aluminium bars, rods, and profiles (from China).  
4.117.   The import of used machinery older tha n 15 to 20 years (depending on the product) for 
mechanical engineering, wood production and processing, and paper and paper pulp production was 
banned in June 2019.111  
4.4  Services  
4.4.1   Features  
4.118.   Services facilitate all economic activities, including production and trade of goods; their 
performance remains a key component of overall international competitiveness for any country. In 
2018, Viet  Nam was the world's 53rd largest exporter and 46th importer of services.112 Trade in 
services remains a small component of Viet  Nam's foreign trade: in 2018, exports of commercial 
services represented about 5.7% of total exports of goods and services, and imports of commercial 
services accounted for about 6.9% of total imports of goods and services. In 2019, Viet  Nam had a 
trade d eficit in services of approximately USD 2.5 billion.  
4.119.   The share of services (excluding construction, energy, electricity, and water supply) in GDP 
continuously increased during the review period, up to 41.6% in 2019. The sector's share in total 
employment r eached 35.4% in 2019, and wholesale and retail trade, tourism and accommodation, 
education and training, and transport and storage were the subsectors employing the largest share 
of workers in 2019. Between 2010 and 2019, labour productivity of services in creased by 133%; in 
2018, it was 16% higher than the overall average level of the economy.113 Between 2018 and 2019, 
the services sector grew by 7.3% and contributed approximately 42% of overall economic growth.  
4.120.   Although the services sector showed more dyna mic growth than the overall Vietnamese 
economy in the period 2011 -19, its growth rate of 6.9% was still 1 percentage point lower than the 
targets of the Master Plan for the Development of the Services Sector to 2020, approved by Prime 
Minister's Decision N o. 175/2011/QD -TTg, issued on 27 January 2011. Some inconsistencies 
between legal documents and policies, particularly for new subsectors (casino businesses and 
e-commerce), lack of coordination among state agencies, and infrastructure not yet up to the 
requirements for the development of the sector are some of the reasons for a result that is lower 
than foreseen. External competition, the institutional reform of state management, and geopolitical 
and economic tensions are perceived by the authorities as fu ture challenges for the development of 
the sector.  
 
110 Notices N o. 4162/QLD -KD, issued on 15 April 2020, and No.  5595/QLD -KD, issued on 5 May 2020, 
by the Drug Administration of Viet  Nam.  
111 Prime Minister's Decision No.  18/2019/QD -TTg (on imports of used machinery and production 
technology), issued on 19 April 2019.  
112 WTO, Trade Profile of Viet  Nam. Viewed at: 
https://www.wto.org/english/res_e/statis_e/daily_update_e/trade_profiles/VN_e.pdf . 
113 Information provided by the authorities.  WT/TPR/S/ 410 • Viet Nam  
 
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 4.4.2   Overall commitments under the General Agreement on Trade in Services  
4.121.   Viet Nam's services market was liberalized to reflect its WTO accession commitments, which 
created opportunities across a range of secto rs, including telecommunications, transportation, and 
distribution. During the review period, the services sector expanded at an average annual growth 
rate of 6.85%. Viet  Nam's GATS commitments cover 11 major services categories (out of 12 services 
categor ies) and 105114 subsectors (out of 155 subsectors).115 In some cases, Viet  Nam reserves the 
right to limit foreign ownership of service companies operating in the domestic market. Foreign 
investors are not required to form a joint venture with Vietnamese cou nterparts to operate in most 
of the services sectors or subsectors under Viet  Nam's GATS schedule.116 Viet Nam's list of Article  II 
(MFN) exemptions covers preferences extended under its bilateral investment treaties .117 
4.122.   Upon its accession to the WTO, Viet Nam adjusted its relevant domestic laws and regulations 
with a view to meeting its GATS commitments. The authorities state that Viet  Nam fully complied 
with its undertakings through the legal text ratifying its Protocol of Accession; they consider tha t 
Viet Nam's laws and regulations in services sectors are consistent with its WTO and GATS 
commitments.118 The authorities consider that, in general, the implementation of the GATS 
commitments helped create a more favourable, transparent, and open business and investment 
environment for both domestic and foreign services suppliers.  
4.4.3   Regional and bilateral agreements on services  
4.123.   Services are covered in Viet  Nam's regional trade agreements within the ASEAN framework 
(the ASEAN's agreements with Australia and N ew Zealand; China; Hong Kong, China; India; and the 
Republic of Korea). Additionally, Viet Nam, as an individual contracting party, has bilateral trade 
agreements covering services with the Eurasian Economic Union, European Union, Japan, the 
Republic of Ko rea, and the United States. It also made commitments of services in the CPTPP and 
the recently signed RCEP (Table 2.1).119 Except for the CPTPP , all services chapters or agreements 
under these agreements refer to Article  XV of the GATS and follow the positi ve listing approach. The 
authorities maintain that regional trade agreements, in particular the ASEAN FTA, imply liberalization 
through GATS+ commitments in some sectors and subsectors.120  
 
114 According to the authorities, Viet Nam's commitments cover more than 110 subsectors.  
115 Sector -specific commitments cover: busine ss services; communication services; construction and 
related engineering services; distribution services; educational services; environmental services; financial 
services; health -related and social services; tourism and travel -related services; and recrea tional, cultural, and 
sporting services (Schedule CLX, WTO document GATS/SC/142, 19 March 2007; and WTO, Trade Profile of 
Viet Nam, September 2012. See also WTO  documents WT/ACC/VNM/48/Add.2, 27 October 2006, and 
GATS/EL/142, 19  March  2007). The authoritie s indicate that a number of legal documents were issued to 
provide further clarity and guidance for the implementation of the GATS commitments in telecommunications, 
advertising, distribution, and logistics services, among others.  
116 Exceptions for which ca ps for foreign capital apply include: veterinary services; technical testing and 
analysis services; services incidental to agriculture, hunting, and forestry; wire -based and mobile terrestrial 
services; satellite -based services; some non -facilities -based a nd facilities -based services in 
telecommunications; motion picture production and projection services; statutory insurance services; 
electronic games businesses; maritime transport services; maritime auxiliary services; internal waterways 
transport; rail t ransport services; road transport services; and services auxiliary to all modes of transport 
(WTO document GATS/SC/142, 19 March 2007).  
117 WTO document GATS/EL/142, 19 March 2007. The intended durations of exemptions for maritime 
transport and certain servi ces related to sea transport were limited for 5 and 10 years following accession.  
118 Resolution No. 71/2006/QH11, issued on 29 November 2006.  
119 In addition to the ASEAN Framework Agreement on Services (AFAS) (Section 2.3.2), Viet  Nam 
signed eight services -related mutual recognition arrangements (MRAs) with ASEAN countries,  on engineering 
services (2005), nursing services (2006), architectural services (2007), surveying qualifications (2007), dental 
practitioners (2009), medical practitioners (2009), accounta ncy services (2009), and tourism professionals 
(2009).  
120 For instance, business services, healthcare services, tourism and travel -related services, and 
transport services.  WT/TPR/S/ 410 • Viet Nam  
 
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 4.4.4   Financial services  
4.4.4.1   Banking  
4.124.   Financial services in Viet  Nam have been progressively liberalized and have grown rapidly in 
recent years121; loans and deposits grew by 16% and 7.8%, respectively, on a yearly basis between 
2015 and 2018. The use of banking services is surging in the country122, although Viet  Nam's banking 
penetration rate is still less than 40%.123 The loan -to-deposit ratio has been stable around 83% 
since 2015, highlighting a strong domestic supply of loanable funds in the economy. Viet  Nam was 
hit by a domestic market downturn between 2008 and 2012, due main ly to asset price bubbles, 
followed by monetary tightening and growth slowdown. The inflation rate became lower than 4% 
only after 2014. In 2019, financial services accounted for 5.9% of GDP and employed 0. 9% of the 
labour force; consequently, the sector's  labour productivity is among the highest in the country.  
4.125.   Viet Nam's banking sector remains dominated by state -owned banks124, accounting for 47% 
of the total deposits in the system in 2018. The rest of the sector is served by over 1,200 institutions, 
including commercial banks, foreign bank branches, and credit unions. As at end -December 2018, 
the system of credit institutions included 4 state -owned commercial banks (SOCBs)125, 3 banks 
under the supervision of the State Bank of Viet  Nam (SBV) after compulsor y acquisition (see below), 
2 state -owned policy banks (Bank for Social Policies, and Viet  Nam Development Bank), 28 
joint-stock commercial banks, 2 joint -venture banks, 9 wholly foreign -owned banks with locally 
incorporated subsidiaries126, 50 foreign bank branches, 26 financial and financial leasing companies, 
1 Cooperative bank127, 1,182 Local People's Credit Funds128, and 4 microfinance institutions. In 2013, 
some consolidation took place among credit institutions, and wholly foreign -owned banks entered 
the market. Most credit institutions remain small and urban -based, and their portfolios are mainly 
composed of small loans and deposits. The latest annual report of the SBV indicates that the SOCBs 
have 41.1% of total assets in the system, and account for 47. 2% of domestic lending (48% in 2012) 
and 44.6% of capital mobilization (45% in 2012). Although much smaller in size than the SOCBs, 
joint-stock commercial banks accounted for 41% of total assets in the sector, and joint -venture and 
foreign banks held about  10% in 2018. Chartered capital and equity have continuously increased for 
all categories of banks.129 Several domestic banks are seeking opportunities abroad; in September 
2011, the VietinBank opened a branch in Germany, making it the first European branch  of a 
Vietnamese bank, while others have opened branches in Cambodia, the Lao People's Democratic 
Republic, and Myanmar. In 2017, Vietcombank received approval from the SBV to open a 
representative office in New York.130  
4.126.   During the review period, the State  reduced its participation in the SOCBs with a view to 
improving their efficiency and minimizing the related risks for public finance. Three SOCBs (BIDV, 
VietinBank, and Vietcombank) are now listed on the Ho Chi Minh Stock Exchange (HOSE). Regarding 
 
121 Viet Nam's financial asset base was close to 200% of GDP in 2018. Total assets of the whole credit 
institution system reached VND 12,600 trillion (USD 545 billion) in 2019.  
122 According to the SBV, more than 90 million electronic point -of-sale (POS) transactions were done in 
the last quarter on 2019. The value of these transactions rose  by 63% compared with the same period in 2018. 
Similarly, transactions at automatic teller machines (ATMs) increased by 15.5% and their value by 9%.  
123 A low banking penetration rate implies that a significant part of domestic savings remains outside the 
banking system and that domestic resources cannot be substantially mobilized for domestic investment. 
Australian Trade and Investment Commission (2020), Digital Banking in Vietnam – A Guide to Market . Viewed 
at: https://www.austrade.gov.au/ArticleDocuments/4569/digital -banking -vietnam -report.pdf.aspx . 
124 Note that some of these state -owned banks are no longer wholly owned by the State, although the 
State r etains the majority of shares.  
125 These are the Bank for Investment and Development of Viet  Nam (BIDV), the Viet  Nam Bank for 
Agriculture and Rural Development (Agribank), the Viet  Nam Bank for Industry and Trade (VietinBank), and 
the Commercial Bank for Fo reign Trade of Viet  Nam (Vietcombank).  
126 These foreign banks are ANZ Bank (Australia); CIMB Bank, Hong Leong Bank, and Public Bank 
(Malaysia); HSBC and Standard Chartered (the United Kingdom); Shinhan Bank and Woori Bank (the Republic 
of Korea); and United  Overseas Bank (Singapore).  
127 The Central People's Credit Fund transformed into the new Cooperative Bank during the review 
period.  
128 The authorities indicate that local People's Credit Funds operate mainly in rural areas and that they 
do not operate as oth er credit institutions.  
129 SBV, Annual Report 2018 . 
130 This trend of internationalization is expected to continue; however, it will depend on the financial 
state of commercial banks to ensure their foreign expansion. Economist Intelligence Unit (2020),  Financial 
Services – Vietnam . Viewed at: http://country.eiu.com/filehandler.ashx?issue_id=100408393&mode=pdf . WT/TPR/S/ 410 • Viet Nam  
 
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 Agriba nk, the only strictly SOCB131, Prime Minister's Decision No.  26/2019/QD -TTg (on approval of 
the list of enterprises to be equitized by the end of 2020), issued on 15 August 2019, initiated the 
preparation of the roadmap for its equitization, which initially  requires a corporate valuation that 
may take up to 14 months. The State plans to keep 65% of the shared capital in this bank in the 
medium term. Private investors seeking to buy shares during the equitization process must obtain 
approval from the SBV as s pecified by SBV Circular No.  50/2018/TT -NHNN; those becoming a 
strategic shareholder must meet a number of criteria on total assets and operational experience as 
prescribed by SBV Circular No.  10/2011/TT -NHNN. In addition to the previous requirements, fore ign 
investors in equitized banks must comply with Decree No.  01/2014/ND -CP on caps for foreign capital 
participation in credit institutions.   
4.127.   In recent years, consolidation took place, in most of cases, to support weak banks in the 
system. In 2015, the SBV  approved a number of mergers and acquisitions, including: the merger of 
VietinBank and Petrolimex Group Bank (PG Bank); the acquisition of Mekong Housing Bank – another 
SOCB – by BIDV; and the merger of Sai Gon Thuong Tin Commercial Bank (Sacombank) and t he 
Southern Bank.132 The SBV has also acquired a majority stake or taken complete control of 
institutions facing difficulties133; no Vietnamese bank has gone bankrupt. Banking activities can be 
performed only by licensed credit institutions.  
4.128.   The regulatory framework for banking and non -banking credit institutions continues to be 
provided by Law No.  47/2010/QH12 on Credit Institutions, issued on 16 June 2010 and entered into 
force on 1 January 2011, which was amended by Law No.  17/2017/QH14 (am endment and addition 
to a number of articles of the Law on Credit Institutions), issued on 20  November 2017 and entered 
into force on 15 January 2018. The amendment stipulates procedures, duties, and powers of the 
SBV over credit institutions under its spe cial control. It also prescribes further details on the 
implementation of plans for merger, consolidation, transfer, or dissolution of institutions under 
special control of the SBV.  
4.129.   Foreign credit institutions continue to be allowed to establish a commerc ial presence in 
Viet Nam in a number of forms, including representative offices, branches of foreign commercial 
banks, commercial joint -venture banks with foreign capital contribution not exceeding 50% of 
charter capital, and banks with 100% foreign -owned capital.134 A 100% foreign -owned bank is 
accorded full MFN and national treatment with respect to establishment of a commercial presence. 
Foreign credit institutions are permitted to issue credit cards on a national treatment basis. Foreign 
bank branches ar e granted national treatment and allowed to raise deposits in local currency. The 
authorities state that the current restrictions are in line with the reservations it made in the WTO, 
including restrictions on the equity participation of foreign investors in commercial banks of 
Viet Nam135, and restrictions on the opening of branch offices outside the head office of a foreign 
bank. These conditions did not change during the review period.  
4.130.   Since its WTO accession, Viet  Nam has aimed to align its regulatory r egime for foreign bank 
branches, including minimum capital requirements, with commonly accepted international practices 
and to fully implement other commitments in the banking and financial services sectors . A key 
condition for establishing a branch of a f oreign commercial bank in Viet  Nam is that the parent bank 
 
131 Agribank has been a 100% state -owned limited liability company since January 2011.  
132 This last merger resolved issues  of cross -shareholding in the two banks.  
133 The SBV acquired three banks in 2015: Global Petro Commercial Joint Stock Bank (GPBank), 
Viet Nam Construction Bank (VNCB), and Ocean Commercial Joint Stock Bank (OceanBank).  
134 The SBV granted licences to wholly f oreign owned banks for the first time in 2008. The organizational 
structure, governance, administration, and internal control and audit of foreign branches in Viet  Nam must be 
approved by the SBV before the branches are established (Law on Credit Instituti ons, Article 89).  
135 Decree No.  01/2014/ND -CP (on the foreign investor purchase of stocks of a Viet  Nam credit 
institution), issued on 3 January 2014, loosened foreign shareholding restrictions in local banks and eliminated 
distinctions between institution al investors as credit institutions or otherwise. The current regulation applies the 
same ceilings for all credit institutions. No foreign individual may own more than 5% of equity, and a foreign 
organization 15% (unless it is a strategic investor, then th e limit is 20%); the total equity of all foreign 
investors in a credit institution is limited to 30%. Any foreign investor and its related parties may not control 
more than 20% of equity of a local institution.  WT/TPR/S/ 410 • Viet Nam  
 
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 has total assets of more than USD 20 billion at the end of the year prior to application136; minimal 
capital requirements for non -bank credit institutions range from VND 100 million (Local People's 
Credit Fund) to VND 3 trillion (Cooperative banks and commercial banks).  
4.131.   The SBV is the main financial regulatory agency and the sole supervisory agency; it is a 
ministerial -level government agency and continues to operate under government oversight.137 The 
SBV is regulated by the 2010 Law on the State Bank of Viet  Nam138, which stipulates its 
independence in the implementation, administration, and selection of monetary instruments. Its 
areas of operation include the provision of liquidity support, monetary policy, the management of 
foreign currency reserves and foreign exchange rates, and the issuance of banking licences. The 
SBV remains accountable to the National Assembly as a mechanism to increase transparency in the 
decision -making process. Regarding sup ervision and inspection, the SBV is responsible for the 
monetary and banking sector, and the MOF is responsible for securities and insurance.139  
4.132.   Since the last Review, Viet  Nam has taken actions to improve the efficiency, safety, and 
transparency of its banking system, including restructuring the financial and banking system, 
strengthening the position of financially weak banks, and dealing with bad loans. Although the 
country is not a member of the Basel Committee on Banking Supervisi on, the Government decided 
on compliance with Basel II requirements as an objective for the banking system.140 In this regard, 
the National Financial Supervisory Commission estimated in September 2018 that Vietnamese banks 
needed to double their charter cap ital. The authorities intended to fully comply with the Basel II 
requirements by 1 January 2020141, but given the challenges of small banks, the authorities now 
intend to achieve this goal by 2023.142 By the end of 2019, only 18 banks (16 Vietnamese and 2 
foreign-invested) out of nearly 50 satisfied the requirements before the original deadline. In 2019, 
some major banks (Agribank, VietinBank, and Vietcombank) requested to further increase foreign 
ownership limits or to allow the payment of dividends in share s instead of cash. Other banks opted 
to list their shares or offer opportunities for FDI to raise capital, such as the purchase of a 15% stake 
in the BIDV by a Korean KEB Hana Bank in 2019. Since 2016, nine joint -stock commercial banks 
were listed on the H OSE, bringing the total to 21 listed commercial banks, including 3 SOCBs.143 
4.133.   Since the last Review, regulations on limits and prudential ratios have been updated several 
times. SBV Circular No.  22/2019/TT -NHNN (stipulating the limits and the safety guarante e ratio in 
the operation of banks and foreign bank branches), issued on 15 November 2019, prescribes 
 
136 Currently, Decree No.  86/2019/ND -CP (on the legal capital of credit institutions and foreign bank 
branches), issued on 14 November 2019, fixes this and other legal capital requirements for the banking 
sectors. VND 3 trillion (about USD 130 million) of leg al capital is requested for a joint -venture bank, an SOCB, 
or a cooperative or investment bank; VND 345 billion (about USD 15 million) for a foreign bank branch; and 
VND 5 trillion (about USD 215 million) for development and policy banks. Note that all req uirements on legal 
capital are in local currency, except the one for foreign bank branches , which is denominated in US dollars.  
137 The Vietnamese authorities distinguish independence in terms of mechanism and organizational 
structure from independence in te rms of operation.  
138 Law No.  46/2010/QH12, issued on 16 June 2010 and entered into force on 1 January 2011.  
139 In a supplementary role, the Deposit Insurance Agency of Viet  Nam (DIV) protects the legitimate 
right and interests of depositors according to Law No. 06/2012/QH13 on Deposit Insurance, Decree 
No. 68/2013/ND -CP detailing and guiding the implementation of the Law on Deposit Insurance, and some 
other guiding documents.  
140 For the implementation of Pillars II and III of Basel II, the SBV issued Circular No. 13/2018/TT -
NHNN, prescribing the internal control system of commercial banks and foreign bank branches, and Circular 
No. 41/2016/TT -NHNN, requiring banks to disclose and report information on capital needs, risk control, and 
management.  
141 SBV Circular No. 41/2016/TT -NHNN (on capital adequacy ratio provisions for banks and foreign bank 
branches), issued on 30 December 2016, as amended by Circular No.  22/2019/TT -NHNN (on limits and safety 
guarantee ratios in the operation of banks and foreign bank branche s), issued on 15 November 2019, 
stipulates the safe -ratio capital for banks and foreign bank branches, while SBV Circular No.  13/2018/TT -NHNN 
(on the internal control system of commercial banks and foreign bank branches), issued on 18 May 2018, as 
amended by Circular No.  40/2018/TT -NHNN (amendment and addition to a number of articles of Circular 
No. 13/2018/TT -NHNN), issued on 28 December 2018, prescribes further internal control systems.  
142 SBV Circular No.  22/2019/TT -NHNN (on limits and safety guarantee ra tios in the operation of banks 
and foreign bank branches), issued on 15 November 2019, extends the period for compliance under the 
establishment of a roadmap to be approved by the SBV. SBV Circular No.  08/2020/TT -NHNN (amendment and 
addition to a number of  articles of the Circular No.  22/2019/TT -NHNN), issued on 14 August 2020 and entered 
into force on 1 October 2020, extends the period for compliance by a year.  
143 Additionally, five joint -stock commercial banks registered for trading on the Unlisted Public Company 
Market (UPCoM).  WT/TPR/S/ 410 • Viet Nam  
 
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 minimum levels of 9% for capital adequacy ratios (CAR) for banks. According to the SBV Annual 
Report 2019, the overall CAR of banks in Viet  Nam was 12.1% ( the SOCBs at 9.5%, joint -stock 
commercial banks at 11.2%, joint -venture and foreign banks at 25.9%, and financial and financial 
leasing companies at 19.5%).144 The Circular also stipulates prudential ratios for the credit limit, the 
affordability rate, the maximum rate of short -term funds for loans, the capital contribution limit, and 
the outstanding loans to total amount of deposits. Law No.  06/2012/QH13 on Deposit Insurance and 
its implementing Decree No.  68/2013/ND -CP require credit institutions to apply a deposit insurance 
scheme and to inform its customers. SBV Circular No.  39/2011/TT -NHNN, issued on 15 December 
2011, continues to regulate the independent audit activities of credit institutions and foreign bank 
branches, and stipulates the scope of audit  activities.  
4.134.   Handling non -performing loans (NPLs) in credit institutions was also a key objective for the 
Government in recent years. The Viet  Nam Asset Management Corporation (VAMC), established by 
Decree No.  53/2013/ND -CP (establishment, organization, an d operation of the VAMC), issued on 
18 May 2013, as amended by Decree No.  18/2016/ND -CP (amendment and addition to a number of 
articles in the Decree establishing and organizing the VAMC) and the SBV's intervention in piloting 
the NPL Resolution Scheme as required by Resolution of the Parliament No.  42/2017/QH14 (on pilot 
settlement of credit institutions' bad debt), issued on 21 June 2017, played a major role in keeping 
the on -balance -sheet NPL ratio of the whole credit institution system at 1.9% in 2018 ( 4.1% in 
2012).145 The VAMC offers a refinancing window for fresh capital to credit institutions, which receive 
fresh cash or the VAMC's bonds in exchange for their NPLs. Resolution No.  42/2017/QH14 allows 
credit institutions to seize collateral and to sell and trade NPLs with non -governmental actors at 
prices lower than book value. By the end of 2018, the VAMC held 17% of all outstanding NPLs in the 
system, and about half of them (49%) are in the hands of credit institutions using a credit risk 
provision. In  February 2020, 12 banks, some of which are major SOCBs, transferred all of their 
outstanding NPLs to the VAMC. During the first three quarters of 2020, bad debts of VND 1.08 trillion 
were sold to the VAMC.  
4.135.   SBV Circular No.  13/2018/TT -NHNN (regulations on the internal control system of 
commercial banks and foreign bank branches), issued on 18 May 2018, introduced changes in the 
governance and administration of credit institutions with a view to preventing, addressing, and 
mitigating losses and failures in t he banking system in a timely manner. It prescribes three lines of 
internal control that must be established to mitigate risk in banking activities: (i)  managerial control 
on performance and human resources; (ii)  legal and external risk management by speci fic 
departments; and (iii)  internal audit. The Government aimed to effectively implement limits for 
cross-ownership within the banking system as foreseen by the Law on Credit Institutions. SBV 
Circular No.  46/2018/TT -NHNN (regulations on time, order, and p rocedure for transfer of major 
shareholders of a credit institution and related persons of shareholders owning more than 5% of the 
charter capital of another credit institution), issued on 28 December 2018, as amended by SBV 
Circular No.  14/2019/TT -NHNN (a mendment and addition to a number of articles in Circulars 
providing regulations on periodic reporting regime of the SBV), issued on 30 August 2019, is 
expected to speed up the transition period for transfer of shares in the hands of individual and 
institu tional shareholders (having a majority participation in another credit institution) below limits 
set by law, i.e. 5% and 15%, respectively.146 
4.136.   The SBV's objectives include curbing the inflation rate below the target, maintaining 
macroeconomic stability, and  ensuring adequate liquidity in credit institutions and the stability of 
exchange rates and the foreign exchange market contributing to stabilizing the market interest rate 
(Section 1 .2.3). Since 2013,  the SBV has managed monetary policy tools to promptly meet the 
liquidity needs of credit institutions and to maintain interbank interest rates at appropriate levels in 
 
144 SBV (2019), Annual Report . Furthermore, the ratio of short -term capital used as long -term loans 
rose from 16.8% in 2012 to 28.4% in 2018.  
145 The general objective is that the ratio of NPLs on credit institutions' balance sheets mus t be lower 
than 3%. By August 2018, NPL ratios of VPBank (4.1%) and Sacombank (3.7%) were above that threshold, 
and NPL ratios for other banks (Eximbank, MBBank, NCB, OCB, SHB, Techcombank, TPBank, and VIB) 
increased during 2018 but remained below the 3% b enchmark. See SBV Annual Report 2019; Intellasia , 
"Which Bank Has the Highest NPL Ratio?", 31 August 2018. Viewed at: https://www.intellasia.net/which -bank-
has-the-highe st-npl-ratio-682872 ; and Customs News , "Waiting for Breakthroughs in Handling Non -performing 
Loans", 23 June 2019. Viewed at: https://customsnews.v n/waiting -for-breakthroughs -in-handling -non-
performing -loans-11094.html . 
146 Viet Nam News , "SBV to End Cross -ownership in Vietnamese Banks", 29 January 2019. Viewed at: 
https://vietnamnews.vn/economy/484635/sbv -to-end-cross-ownership -in-vietnamese -banks.html . WT/TPR/S/ 410 • Viet Nam  
 
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 line with the macroeconomic conditions and market developments. The lending and deposit rates of 
credit institutions declined during the revie w period. At present, the average annual interest rates 
for deposits in local currency are around 6%, while the average lending rates are around 10.0%. 
The SBV fixes the maximum lending rate in each period as prescribed by Article  13 of SBV Circular 
No. 39/2016/TT -NHNN, and it does not intervene in commercial arrangements between credit 
institutions and their customers. The previous Circular, which regulates lending activities of credit 
institutions and foreign bank branches to customers, also stresses the autonomy of credit institutions on 
accepting or refusing loan requests of their customers and on negotiating their related conditions (lending 
rates).147 Two state -owned banks implement preferential credit policies; those of the Viet  Nam 
Development Bank ar e directed at supporting economic policies, and those of the Viet  Nam Bank for 
Social Policies are directed at social policies to support the poor, remote areas, and agriculture.  
4.137.   To mitigate the adverse impact of the COVID -19 pandemic, the SBV implemented  measures 
on credits and interest rates to alleviate negative setbacks for customers, following the instructions 
of the Government and the Prime Minister. SBV Circular No.  01/2020/TT -NHNN, issued on 13 March 
2020, and SBV Directive No.  02/CT -NHNN, issued o n 31 March 2020, create the legal basis and 
provide guidance to credit institutions on restructuring debts and interest for customers and on 
keeping low interest rates and fees for customers implementing production and business projects. 
SBV Circular No.  05/2020/TT -NHNN, issued on 7 May 2020, and SBV Decision No.  925/QD -NHNN, 
issued on 13 May 2020, prescribe the refinancing of the Vietnam Bank for Social Policies with the 
aim of allowing employers to borrow to cover salaries and other employment benefits. A dditionally, 
the SBV reduced interest rates three times during 2020 (on 17 March, 13 May, and 1 October) to 
provide liquidity for credit institutions.  
4.138.   Viet Nam considers that it has achieved significant results in improving the legal framework 
for the sect or, ensuring the stability of credit institutions, improving the credit quality through the 
resolution of NPLs, meeting international standards on capital adequacy by banks, and reducing 
cross-ownership. However, the restructuring of credit institutions an d the need to closely monitor 
NPL ratios continue to be key elements in recent legal documents, such as the Development Strategy 
of Vietnam's Banking Sector to 2025, Vision to 2030, approved by Prime Minister's Decision 
No. 986/QD -TTg of 8 August 2018 and the Masterplan of Restructuring Credit Institutions and NPL 
Resolution in the Period 2021 -25, recently drafted by the SBV.  
4.4.4.2   Insurance  
4.139.   Viet Nam's insurance market has continued to expand since the last Review; as at end -2019, 
insurance premiums were valued at USD 8 billion (3.1% of GDP).148 The Government expects that 
the sector will continue to grow rapidly, by around 18% annually, and that the coverage rate of life 
insurance will continue to broaden. The market currently offers more than 2,478 non -life insurance 
products and 544 life insurance products. At the end of 2019, there were 67 insurance companies, 
according to the Insurance Supervisory Authority (ISA) under the MOF.149 Also at the end of 2019, 
18 life insurance firms were operating in Viet  Nam150; Bao Viet Life (74% of shares held by the 
State) and three foreign -owned companies (Prudential Viet  Nam Assurance (the United Kingdom), 
Manulife Viet  Nam (Canada), and Dai Ichi Life Insurance (Japan)) control the bulk of the market 
(71% of premium reve nues).151 There are 31 non -life insurance enterprises operating in 
Viet Nam152; the four largest firms in this segment – all domestic firms (Bao Viet Insurance, 
PetroVietnam Insurance, Post and Telecommunication Insurance, and Bao Minh Insurance) – 
 
147 Similar conditions are described in Articles 7 and 91 of Law No.  47/2010/QH12 on Credit Institutions.  
148 The contribution to the GDP by the insura nce sector is still below the objective adopted in 2012 by 
the Strategy for the Development of the Insurance Market between 2012 and 2020 approved by Prime 
Minister's Decision No.  193/QD -TTg of 15 February 2012.  
149 Besides non -life and life insurers, 2 rein surance companies and 16 insurance brokers operate in the 
market.  
150 Thirteen life insurers operate as one -member limited liability companies, another 4 as limited liability 
companies with 2 or more members, and only 1 as a joint -stock company.  
151 Foreign -invested AIA is the fifth -largest company in the life insurance segment, with nearly 10% of 
the market share.  
152 Nine non -life insurers operate as one -member limited liability companies, 4 as limited liability 
companies with 2 or more members, 17 as joint -stock companies, and 1 as a branch of a foreign non -life 
insurer. Only one branch of a foreign non -life insurance enterprise operates in Viet  Nam.  WT/TPR/S/ 410 • Viet Nam  
 
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 accounted  for 50.9% of premium revenue in 2019.153 Between 2013 and 2020, the total revenue of 
the industry grew by an average annual of 19.7%, and revenue from premiums and investment 
activities by 20.2% and 19.4%, respectively. Life insurance grew at a faster pace  than non -life 
insurance and, in 2018, almost two thirds (64.7%) of insurance premiums were related to life 
insurance. The authorities indicate that almost all insurance companies were profitable in 2019.154 
4.140.   The regulatory framework established by the Law o n Insurance Business155, which came into 
force on 1 April 2001, largely remained unchanged until Law No.  42/2019/QH14 (amending and 
adding to a number of articles of the Law on Insurance Business and the Intellectual Property Law), 
issued on 14 June 2019 an d entered into force on 1 November 2019. Law No.  42/2019/QH14 
stipulates guidelines on insurance auxiliary services provided by insurers and financial services 
providers.156 Decree No.  73/2016/ND -CP (detailed provisions on the implementation of the Law on 
Insurance Business and the Law Amending and Adding a Number of Articles of the Law on 
Insurance), issued on 1 July 2016, regulates the organization and operation of life and non -life 
insurers, legal capital requirements, conditions on foreign companies and brokers, criteria on 
managerial and operational staff, requirements for internal organization and audit, and the provision 
of cross -border insurance services. Foreign -invested insurance companies are accorded access to 
information on measures relating to o r affecting the supply of insurance services in Viet  Nam on a 
national -treatment basis.157  
4.141.   The authorities indicate that licensing criteria follow Viet  Nam's GATS commitments, 
implying that 100% foreign -invested enterprises are allowed to operate in the country (except for 
some statutory insurance businesses158) and that non -life branches of foreign insurance are 
permitted. Foreign -invested companies are allowed to supply compulsory insurance services 
(including motor vehicle third -party liability coverage ). A range of circulars were issued to regulate 
insurance agent certificates, apply requirements to agency activities, and regulate other insurance -
related products, e.g. retirement insurance products.159 The authorities indicate that no preferential 
person al tax treatment or benefit can be claimed based on the purchase of life (or other) insurance 
from domestically  owned  companies.  
4.142.   The ISA, which is responsible for the supervision and implementation of operational 
requirements of the sector, conducts an ave rage of six inspections each year to detect and deal with 
violations in the insurance industry; the main violations include not complying with regulations on 
reserves, investment, revenue, expenses, and agents. Legal capital requirements are: 
(i) VND 300 billion for non -life or for health insurance companies; (ii)  VND 400 billion for non -life 
and for health re -insurance enterprises; (iii)  VND 600 billion for life and health insurance enterprises; 
 
153 Economist Intelligence Unit (2020), Financial Services – Vietnam . Viewed at: 
http://country.eiu.com/filehandler.ashx?issue_id=100408393&mode=pdf . 
154 Out of 18 life insurers, 15 reported being profitable in 2019. For non -life insurers and reinsurance 
companies, 31 of 33 were also profitable during the same period.  
155 Law No.  24/2000/QH10 (on Insurance Business), issued on 9 December 2000 and entered into force 
on 1 April 2001, as amended by Law No.  61/2010/QH12 (amendment and addition to a number of articles in 
the Law on Insurance Business), issued on 24 November 2010 and entered into force on 1 July 2011. The 
amendment in 2010 was seen as a step towards incorporating international practices and the completion of 
Viet Nam's GATS commitments.  
156 Related to auxiliary insurance services , Decree No.  80/2019/ND -CP (amendment and addition to a 
number of articles of Decree No.  73/2016/ND -CP, and Decree No.  98/2013/ND -CP, as amended by Decree 
No. 48/2018/ND -CP), issued on 1 November 2019, and MOF Circular No.  65/2019/TT -BTC (regulating the 
content of training, exam, and certification of insurance auxiliary), issued on 16 September 2019, provide 
relevant information on business conditions, as well as on training and recognition.  
157 WTO document WT/ACC/VNM/48, 27 October 2006.  
158 Insurance in construction and installation, insurance for oil and gas projects, and construction 
projects of high danger to the public security and the environment remain restricted business areas for 100% 
foreign -invested enterprises, per WTO document GA TS/SC/142, 19 March 2007.  
159 MOF Circulars No.  135/2012/TT -BTC (guiding the provision of unit -linked insurance products), issued 
on 15 August 2012, No.  52/2016/TT -BTC (guiding the implementation of universal insurance products), issued 
on 21 March 2016, No.  50/2017/TT -BTC (guiding the implementation of Decree No.  73/2016/ND -CP), issued 
on 15 May 2017, and No.  125/2018/TT -BTC (on the certification of insurance agents), issued on 
24 December  2018.  WT/TPR/S/ 410 • Viet Nam  
 
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 (iv) VND 700 billion for life and for health re -insurance ent erprises; and (v)  VND 1.1 trillion for 
enterprises that offer life, non -life, and health re -insurance services simultaneously.160 
4.143.   The authorities note that Viet  Nam fully complies with 13 of 25 insurance management and 
supervision principles established by the International Association of Insurance Supervisors 
(IAIS).161 The authorities state that during the review period, management and supervision activities 
were strengthened and standardized in accordance with the IAIS standards. They also recognize 
certai n challenges in the implementation of the Strategy for the Development of the Insurance 
Market between 2012 and 2020, approved by Prime Minister's Decision No.  193/QD -TTg of 
15 February 2012.162  
4.144.   Prime Minister's Decision No.  242/QD -TTg of 28 February 2019 approved the Plan on 
Restructuring the Stock Market and the Insurance Market to 2020, Vision to 2025. A key objective 
of the Plan is to submit the amendment to the Law on Insurance Business to the National Assembly. 
The current draft aims to: supplement re gulations on organizational models and operation conditions 
of insurance businesses; complete regulations on financial management for insurance companies; 
guide the implementation of risk -based management in the sector; further ensure the principles of 
equality, transparency, and safety in insurance transactions; encourage the use of information 
technology in insurance activities; and regulate loss limitation, insurance fraud, and dispute 
settlement.  
4.4.4.3   Securities  
4.145.   The two stock exchanges, Ho Chi Minh (HOSE) an d Hanoi (HNX), and the related stock 
market grew significantly in last seven years.163 In December 2019, 750 stocks were listed on both 
exchanges (680 in 2013), with a market capitalization close164 to VND 4,400 trillion (equivalent to 
72.6% of GDP), which d enotes an increase in capitalization of 4.6 times, compared with its size in 
2013. In December 2019, the HOSE recorded 378 listed companies and 43 bonds (corporate and 
municipal), and its market capitalization reached VND 3,280 trillion.165 At the end of 20 19, the HNX 
reported 365 listed companies and 539 bonds (government, municipal, and government -
guaranteed), and its market capitalization was valued at VND 1,343 trillion.166 
4.146.   The majority of listed firms are former SOEs that have undergone equitization. The average 
transaction value per session increased 3.4 times between 2013 and 2019, and it reached 
VND 4.7 trillion per session by the end of 2019.  Foreign -invested enterprises have the right to 
transform into local shareholding companies and be listed on th e local stock market. There are 
around 80 brokerage firms in Viet  Nam and the leading firms are SSI Investments (14.0% market 
share in 2019) and Ho  Chi Minh City Securities (10.5%).167 
4.147.   A third stock market, the Unlisted Public Company Market (UPCoM) for pub lic companies not 
yet listed, was launched in June 2009. Securities registered for the UPCoM must be registered for 
depository at the Securities Depository Center. Delisted or suspended stocks from the HOSE or the 
 
160 Note that additional services (aviation insurance, satellite insurance, and pension insurance) may 
increase the legal capital requirements applied to insurers. Decree No.  73/2016/ND -CP (on details of 
implementation of the Law on Insurance Business and the  Law on amendments to certain articles of the Law 
on Insurance Business), issued on 1 July 2016, as amended by Decree No.  80/2019/ND -CP (amendment and 
addition to a number of articles of Decree No.  73/2016/ND -CP, and Decree No.  98/2013/ND -CP, as amended 
by Decree No.  48/2018/ND -CP), issued on 1 November 2019.  
161 Twenty -five Insurance Core Principles (ICPs) issued by the IAIS cover general processes and 
procedures supervisors should have in place with respect to supervisory review and reporting.  
162 The Strate gy aimed at fully complying with the IAIS ICPs by 2020.  
163 The plan to merge the two stock markets was abandoned in January 2019. The markets continue to 
operate independently, although they are subsidiaries of a new state company under the MOF named the 
Vietnam Stock Exchange. This new company is tasked with issuing regulations, and monitoring and supervising 
the two stock markets. VN Express , "Vietnam Scraps Plan to Merge Stock Exchanges", 16 January 2019. 
Viewed at: https://e.vnexpress.net/news/business/economy/vietnam -scraps -plan-to-merge -stock -exchanges -
3869407.html . 
164 This valuation does not include investment funds.  
165 Information prov ided by the HOSE.  
166 Information provided by the HNX.  
167 The top 10 brokers in the country account for 62% of the market share. Economist Intelligence Unit 
(2020), Financial Services – Vietnam . Viewed at: 
http://country.eiu.com/filehandler.ashx?issue_id=100408393&mode=pdf . WT/TPR/S/ 410 • Viet Nam  
 
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 HNX with more than 100 shareholders are mo ved to the UPCoM for trading. As at December 2019, 
875 companies were listed on the UPCoM, with a market capitalization of VND 912 trillion.  
4.148.   The bond market showed rapid growth. By the end of 2019, 516 government and corporate 
bonds were listed with a valu e of VND 1,100 trillion. The trading of derivatives and covered warrants 
was launched in 2017, and it is at its initial stages.168  
4.149.   The State Securities Commission (SSC) under the MOF is in charge of direct regulation and 
supervision of activities in securities and the securities market, and of management of public services 
in securities and the securities market, in accordance with applicable laws.169 Viet Nam is an ordinary 
member of the International Organization of Securities Commissions.  
4.150.   The recen tly enacted Law No.  54/2019/QH14 on Securities, issued on 26 November 2019, 
entered into force on 1 January 2021. Authorities report that the new legislation will improve the 
competence of the management agencies in the management, supervision, and handlin g of 
violations in the market; improve the quality of corporate governance, information disclosure, and 
protection to investors; and diversify goods and improve their quality in the market.  
4.4.5   Telecommunications  
4.151.   Viet Nam's telecommunications market continued to grow in recent years; operators provide 
indications of a dynamic market where profits grow at two -digit rates annually.170 This expansion is 
expected to be sustained in coming years, given the Government's plan to promote the application 
and development of IT solutions to meet objectives of sustainable economic growth and economic 
integration. The development of IT -related activities in the country continues to boost the demand 
for telecommunications services. In 2019, the telecommunications services acco unted for 7.7% of 
GDP and 0.6% of total employment, indicating that labour productivity in the sector almost doubled 
the national average.171 In 2018, the revenue of telecommunications services was estimated at 
USD 16.3 billion172, and mobile data is its most important segment (36% of market share).173 In 
2019, almost all users (99.8%) had access to 2G coverage.174 Since then, the country has made 
significant progress in upgrading its telecommunications systems; 4G/LTE services have been 
offered since 2017, and they cover up to 97% of the population in 2020. Piloting of the 5G network 
was launched in 2019, and its pilot commercialization started in December 2020.175  
4.152.   Compared with the six providers licensed for mobile phone services, the fixed -telephone 
segmen t is more diversified with 73 providers, but represents only a small share of the market. The 
fixed-telephone penetration rate is currently 34.5 per 100 inhabitants, while mobile -cellular 
subscriptions are 131.7 per 100 habitants.176 Internet services, whic h are also dominated by SOEs, 
consist of a national fibre -optic network along main roads extending to all borders, metropolitan 
fibre-optic rings around the main cities, five submarine cables, and Internet Exchange Points in the 
three largest cities. The m arket is driven by mobile broadband subscriptions rather than fixed 
broadband ones, and two thirds (68.7%) of the population has access to the Internet.  
 
168 Currently, the derivatives market has only two products: a futures contract on the VN30 index and a 
five-year government bond futures contract. Decree No.  42/2015/ND -CP (on derivate securities and derivative 
securities market), issued on 5 May 2015, and related circulars regulate these activities.  
169 Economist Intelligence Unit (2020), Financial Services – Vietnam . Viewed at: 
http://country.eiu.com/filehandler.ashx?issue_id=100408393&mode=pdf . 
170 Viet Nam News , "FPT's Profit Up by Nearly 19% in Q1", 20 April 2020. Viewed at: 
http://vietnamnews.vn/economy/715477/fpts -profit -up-by-nearly -19-per-cent-in-q1.html ; and Viet Nam 
News , "Viettel Urged to Maintain Its Lead in Country's Telecom Market", 17 July 2020. Viewed at: 
https://vietnamnews.vn/economy/769722/viettel -urged -to-maintain -its-lead-in-countrys -telecom -market.html . 
171 Information reported by the authorities . 
172 General Statistics Office of Viet  Nam (2019), Statistical Yearbook of Viet  Nam 2019 , Table 311.  
173 International Trade Administration, US Department of Commerce. Viewed at: 
https://www.trade.gov/knowledge -product/vietnam -information -and-communication -technologies . 
174 Ministry of Information and Communications (2019), White Book on Information and Communication 
Technology 2019 . 
175 PR Newswire , "Viettel  Becomes the First 5G Carrier in Vietnam", 1 December 2020. Viewed at: 
https://www.prnewswire.com/news -releases/viettel -becomes -the-first-5g-carrier -in-vietnam -301182313.html . 
176 This penetration rate implies s imultaneous subscriptions to several providers among a part of the 
population. Ministry of Information and Communications (2019), White Book on Information and 
Communication Technology 2019 . WT/TPR/S/ 410 • Viet Nam  
 
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 4.153.   The Government intends to develop software and digital content outsourcing services to 
enable a thrivi ng telecommunications industry; it also aims to ensure equal and affordable access 
for its citizens. Private/foreign participation in all market segments is open except for: listed 
telecommunications services with network infrastructure in which the State keeps a dominant 
position (65% or more of share -ownership); services subject to cross -ownership regulations; and 
areas with foreign investment limitations set in accordance with Viet  Nam's commitments under 
relevant international treaties.177 The market is dominated by three state -owned operators: the 
Viet Nam Post and Telecommunications (VNPT) and MobiFone Telecommunications Corporation 
under the CMSC178, and the Ministry of Defence -owned Viettel. Jointly, they control more than 95% 
of the market in three of  the telecoms subsectors (fixed telephone, mobile telephone, and mobile 
broadband). In the fixed broadband services, VNPT and Viettel currently have 80% market share, 
and a private company, FPT, accounts for 15.5% of this segment.179 VNPT is the main actor in the 
two segments related to fixed connections, while Viettel is the dominant actor in mobile subscriptions 
(52% -55% of market share). Viettel is the major telecommunications company in Viet  Nam, and its 
revenues in 2018 represented 55% of the sector's t otal revenue.180  
4.154.   Prime Minister's Decision No.  26/2019/QD -TTg announced that, among SOEs, the two 
telecommunications corporations under the responsibility of the CMSC are to be equitized by the 
end of 2020.  
4.155.   The policy framework regulating the sector has r emained largely unchanged since the last 
Review. During the period 2013 -2019, Viet  Nam sought to improve the effectiveness and efficiency 
of law enforcement.  During the review period, 3 decrees, 1 decision, and 21 circulars were enacted 
on administrative p enalties for violation of regulations, the provision and use of Internet services, 
the responsibilities of the Department of Telecommunications, quality control and testing 
procedures, call and interconnection charges, limits for promotions, number portabi lity, and the use 
of telecommunications data and storage. The MIC is the sector's policy -making and regulatory body; 
it, inter alia, guides the development of telecommunications and Internet services, manages 
telecommunication licences and interconnection charges between operators, manages the provision 
of public utility services, and protects the rights of users.181 During the review period, the 
responsibility for setting consumer tariffs for telecommunications and Internet services was 
transferred from the  MIC to the MOF. The transfer of large state -owned telecommunications 
corporations from the MIC to the CSMC is considered by authorities as a step to ensure the 
independence of the Viet  Nam Telecommunications Authority, which is the regulator in the sector . 
According to the authorities, Decree No.  81/2016/ND -CP (amending and supplementing a number 
of articles of Government Decree No.  25/2011/ND -CP, detailing and guiding the implementation of 
a number of articles of the Law on Telecommunications), issued on 1 July 2016, increased the 
transparency in telecommunications licensing by a reduction in administrative procedures and an 
increase of post -licensing examination to ensure the compliance of enterprises. The country also 
promoted the domestic production of telecommunications equipment, and the launch of the 5G 
network will rely entirely on domestic products.182 Mobile number portability became available on 
16 November 2018, and it is expected to foster competition among providers.  
 
177 Prime Minister's Decision No.  55/2011/QD -TTg (providing the lis t of enterprises of network 
telecommunications service provided by the State and its capital contribution), issued on 14 October 2011; 
Article  3 of Decree No.  25/2011/ND -CP, issued on 6 April 2011, providing implementation guidelines for a 
number of articl es of the Law on Telecommunications; and MIC Circular No.  10/2012/TT -BTTTT (providing the 
list of telecommunications services regulations in Clause 1, Article  3, of Decree No.  25/2011/ND -CP), issued on 
10 July 2012.  
178 The CMSC was established by Decree No.  131/2018/ND -CP, and it is assigned to exercise the rights 
and responsibilities of the State as an owner in large corporations. Currently, 19 corporations are under its 
management. Viewed at: http://cm sc.gov.vn/web/english/history . 
179 MobiFone Telecommunications Corporation is not active in the fixed segment.  
180 Viet Nam News , "Viettel Urged to Maintain Its Lead in Country's Telecom Market", 17 July 2020. 
Viewed at: https://vietnamnews.vn/economy/769722/viettel -urged -to-maintain -its-lead-in-countrys -telecom -
market.html . 
181 MIC, Main Functions . Viewed at: https://english.mic.gov.vn/Pages/ThongTin/114253/Main -
Functions.html . 
182 The purchase of telecommunications equipment of businesses and organizations are stipulated in 
Law on Bidding No.  43/2013/QH13, issue d on 26 November 2013 and entered into force on 1 July 2014, and 
other related legal documents. Viet Nam News , "Viet  Nam to Commercialise 5G in October", 11  July 2020. 
Viewed at: https://vietnamnews.vn/economy/749464/viet -nam-to-commercialise -5g-in-october.html . WT/TPR/S/ 410 • Viet Nam  
 
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 4.156.   All enterprises, state -owned  or not, require licences to provide telecommunications services. 
Since 2013, Viet  Nam has issued more than 70 operating licences, although most of them provide 
fixed communication services only. Viet  Nam allows joint ventures with foreign partners to prov ide 
telecommunications services related to network infrastructure, such as telephone services, 
packet -switched data transmission services, circuit -switched data transmission services, telex 
services, telegraph services, facsimile services, and private leas ed circuit services. Equity caps 
applicable to foreign investment in both fixed and mobile communications, as well as Internet 
services, are set at 49% in facilities -based services (i.e. infrastructure); they may increase up to 
65% (70% for VPN services) a fter a three -year investing period in Viet  Nam in non -facilities -based 
services (i.e. telephony services with no network infrastructure).183  
4.157.   Article  14 of the Law on Telecommunications184 guarantees non -discrimination towards 
telecom providers without infra structure in granting access to and use of public telecommunications 
transport networks; public telecom service providers have an obligation to allow other public telecom 
service providers to interconnect with their network under equitable and reasonable c onditions. 
Interconnection prices for voice calls between international and domestic, as well as between mobile 
and fixed, networks are regulated by MIC Circulars No.  35/2009/TT -BTTTT (regulations on 
connection charges for voice calls from foreign  fixed te lecom networks  to the domestic fixed telecom 
network ), issued on 19 November 2009; No.  22/2011/TT -BTTTT (regulations on connection charges 
for voice calls from land mobile network to domestic fixed telecom network ), issued on 1 November 
2011; No.  13/2016/TT -BTTTT (regulations on incoming international call charges), issued on 25 May 
2016; and No.  48/2017/TT -BTTTT (regulations on connecting charges for voice calls from domestic 
fixed telecom network to the land mobile  network of the country and connection charges for calls 
between two terrestrial mobile network nationwide), issued on 29 December 2017.  Decree 
No. 81/2016/ND -CP (amendments and additions to a number of articles of Decree No.  25/2011/ND -
CP), issued on 1 Ju ly 2016, requires service providers to register their model contracts and general 
transaction terms with the MIC, provides further details on application and extension dossiers for 
licences, and shortens the processing times for licences. Decree No.  49/201 7/ND-CP (amendments 
to Article  15 of Decree No.  25/2011/ND -CP and Article  30 of Decree No.  174/2013/ND -CP), issued 
on 24 April 2017, modifies the conditions applying to points of telecommunications services (POS) 
and notably allows for subscription of cont racts at mobile and authorized POS.  
4.158.   The authorities state that both the 2018 Law on Competition185 and the Law on 
Telecommunications apply to telecommunications service providers, including SOEs. The Law on 
Telecommunications contains provisions for a pro -competition regulatory regime, covering abuse of 
market power regulation, interconnection rules, and access to essential facilities. MIC Circular 
No. 11/2010/TT -BTTTT (on promotion activities for mobile communication services), issued on 
14 May 2010, as am ended by MIC Circular No.  47/2017/TT -BTTTT (on promotion limitations for 
mobile information services), issued on 29  December  2017, stipulates that a promotion cannot be 
higher than a 50% reduction with respect to the price of services and that promotion fo r a product 
or service cannot last more than 90 days per year. According to Decree No.  25/2011/ND -CP, the 
telecommunications regulator has responsibility to receive and resolve competition complaints; 
however, no complaints were registered during the revie w period.  
4.159.   The Government retains control over interconnection rates, and operators have the freedom 
to determine retail tariffs for other services.186 However, dominant operators must pre -register their 
proposed tariffs with the Department of Telecommunicat ions under the MIC before applying them. 
The authorities indicate that operators set their own tariffs based on the market mechanism and 
that operators must publicly announce their tariffs. In 2017, the ITU reported that prices for mobile 
telecommunication s, fixed broadband, and mobile broadband were lower (as % of GNI) than the 
regional average for Asia and the Pacific, which generally is the world benchmark.  
 
183 Decree No.  121/2008/ND -CP (investment activities in posts and telecommunications), issued on 
3 December 2008.  
184 Law No.  41/2009/QH12 (on Telecommuni cations), issued on 23 November 2009 and entered into 
force on 1 July 2010, was amended by Law No.  21/2017/QH14 (on Planning), issued on 24 November 2017 
and entered into force on 1 January 2019.  
185 Law No.  23/2018/QH14 was issued on 12 June 2018 and entere d into force on 1 July 2019.  
186 MIC Circulars No.  35/2009/TT -BTTTT, No.  22/2011/TT -BTTTT, No.  13/2016/TT -BTTTT, and 
No. 48/2017/TT -BTTTT fix the rates for interconnection charges.  WT/TPR/S/ 410 • Viet Nam  
 
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 4.160.   Since 2004, the Viet  Nam Public Utility Telecommunication Service Fund (VTF)187 has 
supported the development and provision of public -utility telecommunications services (i.e. universal 
and compulsory telecommunications services) in regions where market mechanisms fail to deliver 
them on a cost -effective basis. The VTF financial support consists of dir ect funding for the 
development and maintenance of public -utility telecoms services in designated regions, and soft 
financing to assist enterprises in building, upgrading, and expanding telecommunications 
infrastructure, Internet, and other facilities. Nat ional programmes on the provision of public -utility 
telecommunications services for the periods 2011 -15 and 2016 -20 were approved by the Prime 
Minister.188 MOF Circular No.  57/2016/TT -BTC, as amended by MOF Circular No.  83/2019/TT -BTC, 
prescribes the collec tion and payment of contributions to the VTF and fifty -six operators contributed 
to the VTF fund during the review period.  
4.161.   Under the Viet  Nam-European  Union FTA (EVFTA), Viet  Nam committed to increase the caps 
on EU foreign investment in some telecommunic ations segments. Foreign equity caps in non -
facilities -based virtual private network services will be raised to 75%. Caps will be completely 
removed in non -facilities -based value -added services (no further need to establish a joint venture), 
they will be f ixed at 65% in facilities -based value -added services, and they will be increased to 75% 
in non -facilities -based Internet services and 65% in facilities -based Internet services.189 No further 
improvements or liberalization beyond GATS commitments were made i n bilateral trade agreements 
with the Eurasian Economic Union, India, and the Republic of Korea.190 
4.4.6   Transport  
4.162.   The development of physical infrastructure for the transport sector is a key to sustaining 
economic growth. Although needs were already identified by national policymakers in the Transport 
Development Strategy to 2020, Vision to 2030, projects continued to be planned and executed 
largely in isolation without a strategic multimodal approach and with little regard to supply -demand 
considerat ions. This has contributed to perpetuating some transport bottlenecks: fragmentation of 
services, underutilization of existing infrastructure, and substandard provision of services.191 Traffic 
congestion around ports and along the connecting national highwa y systems exacerbates cargo 
movement, causes delays, and negatively affects urban mobility of major cities. Transport and 
logistics need to be expanded and upgraded to support the country's transformation and to ensure 
that it remains competitive with resp ect to its peers in the region.192  
4.163.   In 2019, transportation and storage accounted for 3.1% of GDP and 3.6% of total 
employment. Labour productivity in transportation and storage increased by 92.5% during 
2010-18.193 During the same period, Viet  Nam's freight  transport increased by 85% (volume), and 
passenger transport grew by 87.5%. According to Ministry of Transport (MOT) data, current 
transportation remains heavily dependent on road transport, which accounts for 77% of all cargo 
and 95% of all passengers.194 
4.164.   According to the MOT, Viet  Nam's needs for the development of its transport infrastructure 
were valued at VND 1,015 trillion (approximately USD 44.7 billion) for  the 2018 -2023 period. Of this 
 
187 Prime Minister's Decision No.  191/2004/QD -TTg, issued on 8 November 2004, established the VTF in 
2004; ho wever, its current organization and operations are prescribed by Prime Minister's Decision 
No. 11/2014/QD -TTg (on the organization and operation of Viet  Nam Public Telecommunications Service Fund), 
issued on 27 January 2014.  
188 Prime Minister's Decisions No . 1643/QD -TTg (approving the programme on public 
telecommunications services for the period 2011 -15), issued on 21 September 2011; No.  1168/QD -TTg 
(approving the programme on public telecommunications services by 2020), issued on 24 July 2015; and 
No. 868/QD-TTg (amendments and additions to Prime Minister's Decision No.  1168/QD -TTg), issued 
16 July 2018.  
189 Anh, H. "Vietnam to Open Up Telecom Market for Foreign Investors", Hanoi Times , 7 October 2018. 
Viewed at: http://hanoitimes.vn/vietnam -to-open-up-telecom -market -for-foreign -investors -2991.html . 
190 WTO documents WT/REG371/1, 13 April 2017; WT/REG372/1, 22 August 2016; and WT/REG385/1, 
21 June 2019.  
191 World  Bank (2014), Efficient Logistics: A Key to Vietnam's Competitiveness . 
192 World Bank (2017), Vietnam at a Crossroads: Engaging in the Next Generation of Global Value 
Chains . 
193 SBV, Annual Report 2018 . 
194 MOT presentation, International Seminar Transforming Urban Transportation in ASEAN Big Cities, 
19 June 2019. Viewed at: https://www.lexivox.org/norms/BO -L-N26.xhtml?dcmi_identifier=BO -L-
N26&format=xhtml . WT/TPR/S/ 410 • Viet Nam  
 
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 total, 64% corresponds to road development, 11.7% for railways,  10% for air transport, and another 
10% for sea routes and inland waterways. One third of this budget was expected to come from 
private sources inside and outside the country.195 Besides investment incentives in the Investment 
Law and other relevant laws, i nvestors participating in significant public -private partnership (PPP) 
projects can benefit from incentives described in Chapter IX of Decree No.  63/2018/ND -CP, such as 
property mortgage and ownership, and foreign currency availability, among others.  
4.165.   Despite the significant investment in road infrastructure, the Government announced in 
March 2017 its objective to reduce the share of transport that circulates by road and to increase the 
inland waterway and railway transport capacity.196 Following Prime Minis ter's Decision No.  995/QD -
TTg, issued on 9 August 2018, the MOT is preparing five national transport plans (road, railway, 
seaport system, airport system, and inland water infrastructure) for the period 2021 -30. 
4.4.6.1   Maritime transport  
4.166.   Viet Nam plays an importa nt role for maritime traffic both globally and, particularly, 
regionally; it is a gateway to the sea for neighbouring countries and regions such as the Lao People's 
Democratic Republic, north -western Thailand, and south -eastern China. The total tonnage of the 
Vietnamese fleet increased by around 5% between 2010 and 2019 to reach 7.55 million DWT. It is 
the world's 29th largest fleet and the 4th largest in the ASEAN region197; it consists of 1,507 vessels, 
including 1,047 cargo ships, 100 bulk carriers, 156 t ankers, 39 container ships, and 19 ships 
transporting liquified gas.198 Half of the cargo vessels carried domestic freight, while the other half 
are international transport ships mainly serving routes to East and Southeast Asia.199 The authorities 
report cha llenges for the development of the sector related to sustaining its international 
competitiveness, rapidly renovating the national fleet to meet market demand, and respecting 
international commitments.  The state -owned shipping company, Viet  Nam National Shipping Lines 
(Vinalines), accounts for 25% of the fleet's total deadweight tonnage. In 2019, the average age of 
Vietnamese ships was about 16.3 years, and its  transport volume was estimated at 154.6 million 
tonnes . The overseas cargo shipping ma rket remains dominated by foreign firms (75% -80% cargo 
in 2019). Shipping fees and surcharges by shipping companies continue to be relatively high, which 
affects the international competitiveness of Vietnamese exports.200 MOT Circular No.  54/2018/TT -
BGTVT r egulates tariff brackets for different services at Vietnamese seaports; the Viet  Nam Maritime 
Administration (Vinamarine) is currently reviewing applied shipping fees and surcharges as a first 
stage for the drafting of an amendment and a supplement to MOT Circular No.  54/2018/TT -BGTVT.  
4.167.   The authorities state that all businesses operate in equal conditions, and all support 
measures (e.g. subsidies) to domestic transport companies were removed upon Viet  Nam's 
accession to the WTO. Ships flying the national fla g are entitled to inland sea transport (cabotage)201, 
according to the 2015 Maritime Code, and the country has no commitment for inland transport at 
the WTO.  
4.168.   The 2005 Maritime Code202 was replaced by the 2015 Maritime Code (Law 
No. 95/2015/QH13), issued on 2 5 November 2015 and entered into force on 1 July 2017.203 The 
 
195 Vietnam Insider , "GMS Transport Projects Make Vietnam Better Connected", 12 April 2018. Viewed 
at: https://vie tnaminsider.vn/gms -transport -projects -make -vietnam -better -connected/ . 
196 Le, A., "Ministry Looks to Reduce Road Transport", Saigon Times , 31 March 2017. Viewed at: 
https://english.thesaigontimes.vn/53238/ministry -looks-to-reduce -road-transport.html . 
197 UNCTADstat. Viewed at: https://unctadstat.unctad.org/wds/ReportFolders/report Folders.aspx . 
198 In recent years, Viet  Nam's fleet has specialized to meet the requirements for domestic freight. For 
instance, the number of ships transporting containers doubled between 2013 and 2019.  
199 Only some bulk carriers ship cargo on European route s. 
200 Viêt Nam News , "Ministry Rejects Proposal of Lowering Container Service Charges", 20 April 2020. 
Viewed at: https://vietnamnews. vn/economy/715528/ministry -rejects -proposal -of-lowering -container -service -
charges.html . 
201 However, some specialized vessels not carrying the Vietnamese flag may exceptionally transport 
liquified petroleum gas (LPG), bulk cement, and other materials. No for eign ship owner or shipping line was 
allowed to operate domestic shipping services during the review period. Twelve ships carrying a foreign flag 
and owned by Vietnamese enterprises were licensed to transport super -long, overweight, or other specialized 
cargoes.  
202 Law No.  40/2005/QH11, issued on 14 June 2005 and entered into force on 1 January 2006.  
203 Some articles of the 2015 Maritime Code were amended by Law No.  35/2018/QH14 (amendments 
and additions to a number of articles of 37 Laws related to planning) , issued on 20  November  2018 and 
entered into force on 1 January 2019.  WT/TPR/S/ 410 • Viet Nam  
 
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 2015 Maritime Code updates definitions of maritime vessels and registration procedures of vessels 
and infrastructure at sea; it also stipulates details on maritime stakeholders' duties regarding crew 
benefits and the compliance of Viet  Nam's commitments to the 2006 Maritime Labour Convention. 
The 2015 Maritime Code requires the update of a substantial number of regulations and at least 16 
decrees and 33 circulars have been published since its entr y into force. These regulations cover a 
variety of subjects, including provisions on maritime safety services, licensing of foreign vessels, 
working conditions and training requirements for seafarers, shipbuilding and repair services, 
registration of ships , logistic services, conditions for commercial operation of seaports, passenger 
transport in internal waters and across borders, container inspections, the Vessel Traffic Service 
System, and maritime fees and charges.  
4.169.   Decree No.  171/2016/ND -CP (on registra tion, deregistration, purchase, sale, and building of 
ships), issued on 27 December 2016, prescribes the conditions for the registration of vessels flying 
the Vietnamese flag. Notably, it sets limits on the age of used ships registered in Viet  Nam, which 
varies between 10 and 20 years, according to the ship characteristics. Private companies are 
encouraged to participate in the maritime industry; foreign investors can set up joint ventures with 
a capital contribution (49%) as stated in Viet  Nam's commitment  on maritime transport services 
(passenger and freight transportation less cabotage) to the WTO.204 Additionally, two thirds of crew 
members are required to be Vietnamese. Detailed provisions on inland transport activities are 
specified in Decree No.  160/2016/ND -CP (on conditions for maritime transportation, ship agency 
services, and ship tolling services), issued on 29 November 2016, and on logistic services in Decree 
No. 163/2017/ND -CP (regulations on logistics services), issued on 30 December 2017.  Viet Nam 
seeks to increase the capital contribution from private investors through an equitization programme 
for SOEs (Section 3.3.5).  
4.170.   Ports in Viet  Nam experienced a rapid development up to 2013; trade value passing through 
seaports have stagnated since then.205 According to Vinamarine, Vietnamese ports operated at or 
near their capacity in 2019 and moved 654  million tonnes of cargo (3.3 times the level in 2009). 
Half of the cargo is dry bulk cargo, and another third of it is containerized cargo (approximately 
5 million TEU container units in 2018). Maritime cargo is heavily concentrated around five seaports: 
Ho Chi Minh City, Cai Mep –Thi Vai , Hai Phong, Quang Ninh, and Da Nang. Main imported products 
are machines and parts, electronics and electrical equipment, p lastics, iron and steel, and vehicles. 
Main exported products through seaports are electronics and electrical equipment, clothing and 
accessories, shoes and sandals, and machines and parts.  
4.171.   Viet Nam has an extensive seaport system, which includes 45 ports and nearly 
200 terminals, and more than 82.8  km of wharves with a total capacity of over 550 million tonnes 
per year.206 Today's capacity is 6 -7 times more than at the beginning of the port development plan 
in 1999. In large seaports (Cai Mep –Thi Vai and Ha i Phong) and in projects under construction (Van 
Phong Khanh Hoa), investments were made to meet the increasing demand for trade by sea. Decree 
No. 37/2017/ND -CP (on conditions for business operations of seaports), issued on 4 April 2017, 
prescribes the re quirements for seaport operations and allows for private ownerships of ports. 
Foreign capital contribution must not exceed 50% as per Viet  Nam's commitment at WTO on 
container handling services.207 Vietnamese seaports are subject to the supervision of the M OT, 
Vinamarine, and provincial governments. Ports in Viet  Nam are owned and directly operated under 
different schemes, such as state -owned enterprises, domestic companies, and joint ventures.  
4.172.   To date, Cai Mep –Thi Vai port area has 23 ports in operation (ou t of 35 planned), including 
6 container terminals (out of 8 planned). Its current capacity reaches 6.8 million TEUs per year, and 
it can receive ships up to 195,000 DWT (or 18,000 TEU).208 The first two container terminals of the  
Lach Huyen port area209 entered into operation in May 2018, and both domestic and foreign investors 
participated in their development. In October 2019, it was approved that Hai Phong Port Joint Stock 
Company invest in the development of two ports in this area. Since 2019, the Va n Phong 
 
204 WTO document GATS/SC/142, 19 March 2007.  
205 Estimated at approximately USD 180 billion by the World Bank, Vietnam Development Report 2019 . 
206 World Bank, Vietnam Development Report 2019 . 
207 WTO document GATS/SC/142, 19 March 2007.  
208 The total capacity planned for the Cai Mep –Thi Vai port area is over 10 million TEUs.  
209 At its completion, this port area is to include 23 ports (16 container terminals and 7 general harbours 
and passenger por ts), and the cargo capacity is to be over 100 million tonnes per year.  WT/TPR/S/ 410 • Viet Nam  
 
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 international transhipment port area is completed, and the multi -purpose general port started 
operations in July 2019 with a limited volume of goods during this initial phase.  
4.173.   Some challenges for enhancing ports' efficiency include getting cargo fr om the port to the 
road, connecting expansions of port capacities with the most dynamic economic areas, streamlining 
complex customs formalities, and improving the connection between ports and surrounding areas.210 
On top of that, major gateways for maritim e transport are working at or near their capacity. The 
authorities consider that connectivity for multimodal transport is improving and, for instance, most 
ports now have a convenient road connection. The volume of goods transferred from and to the road 
represents 67% of the ports' capacity. Prime Minister’s Decision No.  1037/QD -TTg (approving the 
Revised Viet  Nam Port System Planning to 2020, Vision to 2030), issued on 24 June 2014, aimed at 
fostering the development of the coastal transport route and the cargo transhipment cargo from 
seaports to inland water transport. Currently, the inland water transport absorbs more than 30% of 
cargo transiting through seaports.  
4.174.   To promote the use of new infrastructure in Cai Mep –Thi Vai port, a 40% reduction in 
maritim e security and maritime pilotage charges has been applied since 2012 to vessels of over 
50,000 DWT carrying import -export containers and transhipment containers. According to the 
authorities, the preferential rates at Cai Mep –Thi Vai port were terminated o n 31 December  2020, 
and the general fee schedule as in other ports across the country shall be applied. Port user charges 
(i.e. tonnage charges, maritime assurance fees, pilotage charges, charges for anchoring and mooring 
at quay or roadstead, charges for use of piers and mooring buoys in seaport areas, and clearance 
fee) are decided by the facility operators in line with the relevant regulations.211 According to these 
regulations, discounts can be granted and depend on factors including the cargo capacity o f the 
vessel and the frequency of voyages at the same port. Between 2011 and 2019, the total amount 
of fee reductions amounted to VND 1.08 trillion (USD 48.5 million).  
4.175.   As part of its EVFTA commitments, Viet  Nam allows European shipping lines to perform 
empty consolidation and container transport services on the Quy Nhon -Cai Mep route and European 
businesses to set up joint ventures to provide dredging services. Five years after the implementation 
of the Agreement, Viet  Nam will extend the provision of empt y container transportation services on 
all routes. No further improvements or liberalization beyond GATS commitments were made in 
recent trade agreements with the Eurasian Economic Union, India, and the Republic of Korea.212 
4.176.   To counter the negative impact o f the COVID -19 pandemic, Vinamarine is currently 
considering the extension of fee reductions for vessels over 50,000 DWT in Cai Mep –Thi Vai port 
until the end of 2022. Proposals for exemption or reduction of maritime fees for vessels subject to 
quarantine requirements are also under review.  
4.4.6.2   Air transport  
4.177.   The overall aviation market showed double -digit growth between 2013 and 2019, with cargo 
shipments and passengers surging up to 12.6% and 17.8%, respectively, year -on-year. Although 
growth rates are high, t hey are lower than those observed before 2013, in particular for cargo 
transportation, which grew by 30% during that period. Total air cargo reached 1.6  million tonnes in 
2019 (a 12.4% increase compared with 2018), and two thirds of air cargo is shipped in ternationally. 
Regarding passenger transport, 116.1 million passengers flew through Vietnamese airports; 
41.6 million on international flights.213 The national flag carrier, Viet  Nam Airlines, accounts for one 
third (36.3%) of the domestic passenger market and one fifth (21.4%) of international flights. 
 
210 Kuo, Lu, and Le (2020), "Exploring the Performance and Competitiveness of Vietnam Port Industry 
Using DEA", The Asian Journal of Shipping and Logistics , March.  
211 MOF Circular No.  261/2016/TT -BTC (providing for maritime fees, charges, and schedule of 
collection), issued on 14 November 2016, as amended by MOF Circular No.  17/2017/TT -BTC (guiding the 
collection, payment, management, and use of marine fees and charges ), issued on 28 February 2017; and MOF 
Circular No.  90/2019/TT -BTC (amendments to Circulars No.  261/2016/TT -BTC and No. 17/2017/TT -BTC), 
issued on 31  December 2019.  
212 WTO documents WT/REG371/1, 13 April 2017; WT/REG372/1, 22 August 2016; and WT/REG385/1, 
21 June 2019.  
213 The increase in passenger transport was accompanied by an increase of the aircraft fleet in the 
country (221 in total, 124 more than in 2013) and an expansion of the route network consisting of 
130 international and 60 domestic routes (70 ad ditional routes, 20 domestic and 50 international, compared 
with 2013).  WT/TPR/S/ 410 • Viet Nam  
 
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 VietJet Air, a private company, became a major provider of air transportation services in recent 
years, and it accounts for similar shares as the national flag carrier (18.4% of the international 
passenger tr ansport market, and 41.7% of the domestic passenger transport market). Before the 
COVID -19 pandemic, scenarios by the International Air Transport Association (IATA) foresaw that 
air transport would triple in the next 20 years, which could be related to an increase of approximately 
USD 35 billion of GDP and the creation of around 2.4 million jobs.214 Between 2013 and 2020, 17 
new international carriers started operations in Viet  Nam. Vietnamese airlines and sale agents can 
freely choose computer reservation s ystem (CRS) providers for their operations. As at June  2020, 
there are 75 passenger airlines and 19  cargo airlines with regular scheduled flights to and from 
Viet Nam. Vietravel, a new local carrier, obtained its licence for both domestic and international  
operations in December 2020 and it is expected to start flights during the first half of 2021.215 
4.178.   Viet Nam Airlines (VNA), the national flag carrier controlled at 86.2% by the State, owns 
100% of Viet  Nam Air Service Company (VASCO)216, a regional airline i n southern Viet  Nam; 68.9% 
of the low -cost carrier Jetstar Pacific Airlines (JPA); and 49% of the Cambodian national airline 
Cambodia Angkor Air.217 VNA also holds a 32.5% stake in Viet  Nam Air Leasing Company (VALC), a 
joint venture. JPA, the VNA subsidiar y specialized in the low -cost segment, is the third most 
important carrier in the domestic market with a market share of 13.7%; however, its market share 
in international passenger transport is only marginal (2.4%). VNA underwent a partial 
"capitalization"  ("equitization", or privatization) in 2014; All Nippon Airways (ANA) Holdings is the 
strategic foreign partner with a capital share of 8.8%, several local (45) and foreign (36) institutional 
partners, as well as numerous individual shareholders, mostly lo cal, hold the remaining 5% of shared 
capital. Since November 2014, VNA has been is listed on the HOSE . 
4.179.   Viet Nam continues to liberalize and develop its market through bilateral and multilateral 
agreements. The country has 69 bilateral agreements and is par t of 6 multilateral agreements on 
air transport liberalization. These agreements cover different aspects, including criteria for the 
designation of airlines, submissions of air transport service prices, liberalization of third and 
fourth  freedom rights, gr adual liberalization of the fifth freedom right, frequency of international and 
domestic operations, freedom to determine prices on international flights218, and partnership and 
multimodal operations. Foreign airlines are not allowed to operate in the domes tic market for 
passenger transport and cargo (cabotage). Under bilateral air transport agreements, codeshare 
agreements between Vietnamese, another party's, and  a third country's airlines are possible; they 
need to be approved by the relevant authorities. The implementation of the ASEAN Open Skies policy 
in January 2015, which allows airlines to fly freely throughout the ASEAN member states in a unified 
air transport market, is a milestone in the liberalization of air services in Viet  Nam; market access 
was improved by enabling multiple designations of airlines, operational flexibility219, and granting of 
third, fourth, and fifth freedom rights while removing limitations on capacity, frequency, and aircraft 
types.  This regional framework for air services is m ore ambitious than previous bilateral air service 
agreements, which were perceived as restrictive in some instances given limits on capacity, 
designated airports, and pricing.  
4.180.   The 2006 Civil Aviation Law220, as amended by Law No.  61/2014/QH13 (amending and  
supplementing a number of articles of the Civil Aviation Law), issued on 21 November 2014, provides 
the legal framework for the activities of the sector. Direct investment by foreign investors must not 
exceed 34% of the registered capital in aviation busi nesses, and the total contribution of foreign 
capital through other forms of business partnerships must not exceed 49% of the registered 
 
214 IATA, "The Importance of Air Transport to Vietnam", undated. Viewed at: 
https://www.iata.org/en/iata -repository/publications/economic -reports/vietnam --value -of-aviation/ . 
215 VN Express , "Vietnam's Sixth Carrier to Tak e off in mid -January Dams Run Out of Water on Lack of 
Rain", 22  December 2019. Viewed at: https://e.vnexpress.net/news/business/ companies/vietnam -s-sixth-
carrier -to-take-off-in-mid-january -4212756.html .  
216 VASCO serves only domestic routes in the southern part of the country and represents 1.8% of the 
domestic market.  
217 In total, VNA has 15 subsidiaries and 5 affiliates. Viet  Nam A irlines, Annual Report 2019 . Viewed at: 
https://www.vietnamairlines.com/~/media/FilesDownload/AboutUs/Investor -Relati ons/Bao -Cao-Thuong -
Nien/2019 -bctn-english.pdf . 
218 The price of domestic air transport services is based on the price frame set by the Ministry of 
Transport (2006 Civil Aviation Law, Article 116, Clause 2).  
219 Operational flexibility relates to the exercise o f the fifth freedom within ASEAN, which can be done in 
any combination or order without any directional or geographical limitation.  
220 Law No.  66/2006/QH11 was issued on 29 June 2006 and entered into force on 1 January 2007.  WT/TPR/S/ 410 • Viet Nam  
 
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 capital.221 Through the participation of foreign operators, Viet  Nam aims at creating a dynamic and 
competitive air pass enger and cargo transport environment. The authorities report that Vietnamese 
and foreign airlines operate under equal conditions, national carriers do not benefit from any direct 
or indirect support, and there is no obligation for the private and public s ectors to employ national 
airlines. To promote operations of new airlines and new routes, MOT Circular No.  53/2019/TT -
BGTVT, issued on 31 December 2019, indicates that take -off, landing, and air navigation fees at 
Vietnamese airports are halved during the first 36 months of operation for new airlines and reduced 
by 10% -50% for 12 -24 months for new routes.  
4.181.   The aviation industry is under the management of the Civil Aviation Authority of Viet  Nam 
(CAAV), a government agency under the MOT.222 Its functions include: formulating plans and 
programmes to develop civil aviation; drafting legal normative documents, regulations, and 
standards relating to civil aviation; information dissemination and education on aviation law; aviation 
safety and secu rity; airport, aircraft, and flight management; environmental protection; search and 
rescue; development of price brackets for domestic air services in Viet  Nam; guidance, direction, 
and inspection of specialized aviation service prices223; research and dev elopment; handling 
complaints and/or violations of aviation law; administrative reform; and financial and personnel 
affairs. Other fees and charges such as fees for flights over airspace, operating franchise fee, and 
fees for granting certificates and lice nces related to civil aviation activities are regulated by the MOF. 
The MOT grants the air transport business licence following approval by the Prime Minister. Criteria 
for approving carriers include conditions on the organizational structure, on capital a nd foreign 
ownership, and on the business plan and the development strategy of the company.224 Compared 
with 2013, requirements on the structural organization, notably nationality requirements on legal 
representatives, were eased, the limit for foreign part icipation in share capital was increased (34% 
instead of 30%), and minimum capital requirements were lowered.  
4.182.   Slot allocation at airports is now regulated by CAAV Decision No.  370/QD -CHK of 27 February 
2020. The authorities indicate that criteria for slot allocation are consistent with recommendations 
by the IATA, including historic slots, proportion of slots for new entrants, frequency, and periods of 
operations, among others. The Allocation Council headed by the CAAV was established in 2016 and 
includes representatives from the Airports Corporation of Viet  Nam, the Viet  Nam Air Traffic 
Management Corporation, and air carriers. Allocation has been scheduled using an allocation 
software since 2016.  
4.183.   There are 22 airports with civil service in operation throughout Viet  Nam and international 
carriers operate in 9 of them. The three major international airports are Noi Bai Airport in the north 
(Hanoi), Da Nang in the centre, and Tan S on Nhat in the south (Ho Chi Minh City).225 Six international 
airports (Can  Tho, Chu Lai, Da Lat, Hai  Phong, Hue, and Nha Trang) have been built or upgraded 
since 2013, and currently all of them receive international flights. Some airports have implemented 
infrastructure and facilities projects, such as ILS navigation equipment, signal lights, AWOS 
meteorological monitoring, and wind -shear warning systems, but have not yet been able to reach 
full operational capacity due to limited financial resources and sc heduling constraints.  
4.184.   The Government strongly encourages the private sector to invest in aviation infrastructure 
to ease the pressure on the state budget. Private sector participation is  possible under different 
forms, including a PPP or a concession. The Van Don International Airport is the first airport in 
 
221 Decree No.  92/2016/ND -CP (prov iding for conditional business sectors or activities in the civil 
aviation industry), issued on 1 July 2016 and amended by Decree No.  89/2019/ND -CP (amendment and 
addition to Decree No.  92/2016/ND -CP and Decree No.  30/2013/ND -CP), issued on 15 November 201 9; Decree 
No. 30/2013/ND -CP (regulating air transportation business and general aviation operations), issued on 
8 April 2013.  
222 Decree No.  66/2015/ND -CP (on aviation authorities), issued on 12 August 2015, designates the 
national aviation authority, and MO T Decisions No.  2606/QD -BGTVT on 7 September 2017 and No.  1055/QD -
BGTVT on 31 May 2019 provide further details on CAAV's tasks, powers, and structure.  
223 These include take -off and landing services, flight control services to and from the airport, support 
services to warrant flight operations, passenger services, and aviation security.  
224 As required by the 2006 Civil Aviation Law and Decrees No.  30/2013/ND -CP of 8 April 2013, 
No. 92/2016/ND -CP of 1 July 2016, and No.  89/2019/ND -CP of 15 November 2019.  
225 These four airports have separate cargo terminals, and two of them have onsite logistics centres. The 
two main airports in the country, Noi Bai and Tan Son Nhat, account for 25% of Viet  Nam's trade value. 
According to the World Bank's Vietnam Development Repor t 2019 , three quarters of trade through airports is 
electronics and electrical equipment.  WT/TPR/S/ 410 • Viet Nam  
 
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 Viet Nam to be developed under a BOT scheme, and it started operations in December 2018.226 
Other regions aim at implementing similar schemes to develop their airports. For instance, a BOT 
scheme is unde r review for the Phan Thiet Airport and components of the future Sa Pa Airport will 
be proposed under a PPP.  
4.185.   The Airports Corporation of Viet  Nam (ACV), a formerly state -owned limited liability company 
partially equitized in 2015, manages 21 airports, excl uding Van Don International Airport, in 
collaboration with 8 subsidiaries specialized in maintenance, ground services, and cargo services.227 
In terms of air traffic management, new technologies were adopted during the review period or are 
currently being d eployed.228 
4.186.   Auxiliary services prescribed by Decree No.  92/2016/ND -CP (providing for conditional 
business sectors or activities in the civil aviation industry), issued on 1 July 2016 as amended by 
Decree No.  89/2019/ND -CP (amendment and addition to Decree N o. 92/2016/ND -CP and Decree 
No. 30/2013/ND -CP), issued on 15 November 2019, are passenger terminal operation services, 
airfield operation services, air cargo terminal or warehouse operation services, aviation fuel supply 
services, ground engineering and co mmercial services, airline catering services, aviation equipment 
repair and maintenance services, aviation engineering services, and aviation security services. At 
major international airports229, four providers are active in ground services: the VNA's subs idiary 
Viet Nam Airport Ground Services Company (VIAGS) operates in the three main airports; Hanoi 
Ground Services Company (HGS) operates in Noi Bai; Saigon Ground Services Company (SGS) 
operates in Tan Son Nhat, Da Nang, and Cam Ranh; and Aviation Ground Services Company (AGS)230 
at Cam Ranh Airport. At other airports, the ACV is the main service provider.  
4.187.   Through its subsidiaries, the VNA is also involved in the maintenance and overhaul of aircraft, 
catering services, cargo services, and air fuel supply. I ts subsidiary Viet  Nam Airlines Engineering 
Company (VAECO) is internationally certified and performs maintenance and technical services for 
all VNA aircraft, as well as those of another 40 airlines. Air fuel distribution, catering services, and 
ground and  cargo services ensured a return on investment of 15.9% in 2019 and contributed 
significantly to the overall performance of the VNA. Self -handling, mutual handling, and/or 
third-party handling is allowed without restriction for international carriers at ma jor airports. Foreign 
airlines can also provide their own aircraft maintenance services and contract co -supply by existing 
service providers. National carriers may have their aircraft repaired/maintained abroad at their 
discretion.  Aviation services are a conditional business sector under the Investment Law, and capital 
participation is capped at 30% for foreign investors.  
4.188.   Air traffic control is provided by the Viet  Nam Air Traffic Management Corporation (VATM).  
4.189.   Viet Nam became a party to the 1999 Conventio n for the Unification of Certain Rules for 
International Carriage by Air (Montreal Convention) on 27 September 2018.  
4.190.   To support the sector during the COVID -19 pandemic, the MOT issued Circular 
No. 19/2020/TT -BGTVT on 1 September 2020, which applies a 50% reduction for take -off, landing, 
and air navigation service fees231 between 1 March and 30 September 2020. The Standing 
Committee of the National Assembly issued Resolution No.  979/2020/UBTVQH14 on 27 July 2020, 
 
226 The SunGroup manages and operates this infrastructure. Decree No.  92/2016/ND -CP enables the 
participation of the private sector and foreign investors in the operati on of airport business, and Decree 
No. 102/2015/ND -CP authorizes the provisions of air services by the private sector.  
227 The ACV is tasked with using and developing airport facilities and related equipment, e.g. managing 
and maintaining land and buildings,  providing security and safety of aviation activities, providing maintenance 
and ground -handling services, collecting airport -related revenue, and importing and exporting aviation 
equipment. ACV, About ACV . Viewed at: https://www.vietnamairport.vn/en/about -acv. 
228 These include the implementation of Air Traffic Services Inter -facility Data Communication (AIDC) 
and of Controller Pilot Data Link Communications (CPDLC) for communications between control lers and pilots; 
the deployment of Digital Automatic Terminal Information Service (D -ATIS) in Noi Bai Airport and its upcoming 
extension to four major aerodromes; and the implementation of Performance -Based Navigation (PBN) 
procedures in various aerodromes  and to all aerodromes in Vietnam by 2022.  
229 According to the number of passengers, the main Vietnamese airports are Tan Son Nhat, Noi Bai, 
Da Nang, and Cam Ranh.  
230 The AGS is a joint venture of the VIAGS and the Cam Ranh Airport Services Joint Stock Compa ny. 
Viewed at: https://www.ags.com.vn/vn/introduce/gioi -thieu-ve-ags-1. 
231 Fees are specified in MOT Circular No.  53/2019/TT -BGTVT, issued on 31 December 2019.  WT/TPR/S/ 410 • Viet Nam  
 
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 reducing by 30% the environmental protection tax applied on jet fuel from 1 August to 
31 December  2020.  
4.191.   Viet Nam committed to liberalize five subsectors232 of air transport services within the EVFTA 
framework to a greater extent than its GATS commitments. No further improvements or 
liberalization beyond its GATS commitments were made in recent trade agreements with the 
Eurasian Economic Union, India, and the  Republic of Korea.233 
4.4.6.3   Land transport  
4.192.   Road transport is the most common means of transport in Viet  Nam (Section 4.6.6). 
Currently, the road system has a total length of 595,316 km; 25,151 km of national highways 
account for 4.2% of the national road networ k, while expressways extend over less than 
1,000  km.234 Another 786  km of expressways are under construction under PPPs or similar schemes. 
The road network235 covers the whole territory, and about 65% of the road network is paved.  
Authorities note that the road infrastructure (scale and quality) connecting with some airports, 
railway stations, seaports, and inland waterways needs to be improved. Some improvements have 
been made in recent years: expressways did not exist 10 years ago, and cargo by road had an  
annual growth of 10%. The future plan includes densifying the expressway network (to be increased 
by more than fivefold until 2030), maintaining current infrastructure, improving the connectivity 
between roads and other modes of transport, and upgrading r outes connecting with Cambodia, 
China, and the Lao People's Democratic Republic. The Project Management Unit, the Directorate for 
Roads of Viet  Nam (DRVN), and the Viet  Nam Expressway Corporation, all under the MOT, are the 
bodies in charge for the develop ment of road infrastructure at the national level.236 The MOT 
recognizes that funding mobilization and budget allocation are limited compared with the demand 
for road infrastructure, and thus implementation schedules tend to suffer delays. The authorities 
expect that projects will continue to be developed und er PPPs under the conditions of the recently 
enacted Law on Investment in the form of Public -Private Partnership (Law No.  64/2020/QH -14).  
4.193.   The railway sector consists of only a very small share of the transport segment (passenger 
and cargo combined), and i ts competitiveness has eroded over last 15 years (Section  4.4.6). In 
2019, the railway system carried 0.2% of all passengers compared with 0.7% in 2007. A  similar 
trend is observed for cargo transport, despite a well -known higher cost -efficiency for long -haul traffic 
than trucking. These results point out an underperformance with respect to the objectives set by 
Prime Minister's Decision No.  214/QD -TTg (on the revised Development Strategy for Vietnamese 
Railway Transport to 2020, Vision to 2050), issued on 10 February 2015. The authorities indicate 
that five investment projects were executed in the period 2016 -20 (44 in the period 2011 -15) with 
budget allocated by the State and that infrastructure quality, railway speed, and safety are gradually 
improving.  
4.194.   The legal framework of the sector was recently updated by the 2017 Railway Law237, which 
entered into force on 1 July 2018. Since 2003, Viet  Nam has separated infrastructure development 
from transport services, and the Government has committed to finance inf rastructure upgrading and 
maintenance expenses. The Viet  Nam Railways Administration (VNRA) under the MOT is responsible 
for planning and supervising all railway projects, while the Viet  Nam Railways Corporation (VRC) 
currently under the CMSC, is in charge  of business operations. The VRC pays 10% of its gross 
revenues to the VNRA as a track -access charge. A foreign party must enter into a joint venture with 
the VNRA or the VRC to operate in the sector; the foreign party's capital contribution may not exceed  
51%. The private capital invested in the railway industry accounts for 21% of the total charter 
 
232 The five subsectors are : (i) ground -handling services, excluding aircraft servicing and cleaning, 
surface transport, airport management and air services navigation, and in -flight meal services; (ii)  sales and 
marketing air products services; (iii) maintenance and repair of aircr aft; (iv) computer reservation services; 
and (v) in -flight meal services.  
233 WTO documents WT/REG371/1, 13 April 2017; WT/REG372/1, 22 August 2016; and, WT/REG385/1, 
21 June 2019.  
234 Expressways benefit from a fully access -controlled toll system.  
235 Most of the network consists of local roads, classified as district, commune, or urban roads.  
236 Local governments are in charge of road development infrastructure.  
237 Law No.  06/2017/QH14 (o n Railways), issued on 16 June 2017, as amended by Law 
No. 35/2018/QH14 (amendments and additions to a number of articles of 37 Laws related to planning), issued 
on 20 November 2018 and entered into force on 1 January 2019.  WT/TPR/S/ 410 • Viet Nam  
 
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 capital.238 The private sector also participates in the development projects of the railway system, 
such as container yards. No foreign investment is active in the railway sector. The VNRA remains 
the unique operator in the cargo segment. The project implementing the restructuring of the VRC 
and the equitization of its subsidiaries is under consideration of the Prime Minister.  
4.195.   The VRC recently launched technology  applications to improve the customer experience, 
allowing for online purchases and to improve operational efficiency through freight management 
software.  
4.4.7   Distribution services  
4.196.   In 2019, the distribution sector contributed 1 2.4% to GDP239, and the sector wa s expected 
to grow by more than 50% between 2016 and 2019. Modern retail stores, including air -conditioned 
mini-marts, supermarkets, and small shopping complexes, are increasing their presence, and 
consumers, particularly younger generations, are moving aw ay from traditional outdoor markets. 
According to the Viet  Nam Retailers Association, there were more than 1,084 supermarkets and 240 
shopping centres in 2019. The number of supermarkets and shopping centres increased by 
approximately 52% between 2012 and 2020. Although supermarkets are increasingly becoming the 
favourite distributor in the country, convenience stores are also on the rise, and ferocious 
competition with local and traditional family shops is taking place.240 In last five years, the retail 
sector consolidated as key players pursued strategic acquisitions of smaller companies, allowing 
them to extend their network, enter new retail channels, increase their market share, and reduce 
competition.241 For instance, the Vinmart brand from the Vingroup emerged from a series of mergers 
between domestic and foreign brands and has the largest number of supermarkets and convenience 
stores. Foreign -invested firms compete with domestic groups such as Saigon Co.op, which owns 
multiple brands. As for the total r etail market, Mobile World, a group initially specialized in electronics 
but with activities including other branches such as pharmacy, emerged as the major retailing group. 
Saigon Co.op; Central Group, a Thai consortium specialized in department stores; V ingroup, whose 
activities broadened to hospitality; and FPT Corporation, a retailer of technology and 
telecommunication products complete the top five retailing companies in the country.  
4.197.   Following the removal of the general cap at 49% for foreign investme nt in 2015, wholly 
foreign -owned companies may engage in all distribution services including commission agent sales, 
wholesaling, retailing, franchising, and warehousing.242 MOIT Circular No.  34/2013/TT -BCT (on the 
roadmap for distribution services and rela ted activities for foreign -invested enterprises), issued on 
24 December 2013, prohibits foreign -invested enterprises from distributing cigarettes and cigars, 
precious metals and stones, pharmaceutical products and drugs, and explosives. Retail sales in the ir 
own shops of rice, sugar, recorded items, books, newspapers, and magazines, and the wholesale of 
lubricants or greases for producers of lubricants and distributors of machinery, are now permitted.  
4.198.   Investors building warehouses and logistic centres in re gions with socio -economic difficulties 
are entitled to incentives as stipulated by the Investment Law.  
4.199.   Decision No.  1371/2004/QD -BTM (on regulations on supermarkets and trade centres), 
issued on 24 September 2004, classifies supermarkets and shopping centr es according to their 
surface and the number of products they offer.243 The authorities indicate that there is no provision 
in the legislation regulating the distance between supermarkets, shopping malls, and traditional 
markets.  
 
238 The private sector participate s to 25 joint -stock companies (17.5% of the charter capital) and 15 
associates (78.5% of the charter capital) of the VRC.  
239 GDP share for wholesale and retail trade, including repair of vehicles.  
240 It is estimated that 2.2 million traditional family shops exist in Viet  Nam, and major food retail chains 
are also increasing the direct competition with small shops.  
241 For instance, European supermarket groups have withdrawn from Viet  Nam in the last five years. 
Viewed at: https://www.intellasia.net/fierce -competition -in-retail-market -750097 . 
242 Fully foreign businesses without equity limitation have been able to engage in retailing activities 
since 2009.  
243 According to MOIT regulations, the retail outlets are classified as follows: multifunctional/general 
supermarkets (>5,000m2 and >20,000 items ; >2000m2 and >10,000 items; and >500  m2 and >4,000 items); 
specialized supermarkets (>1,000m2 and >2,000 items; >500m2 and >1,000 items; and >250m2 and >500 
items); and commercial centres (>50,000m2, >30,000m2, and >10,000m2). WT/TPR/S/ 410 • Viet Nam  
 
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 4.200.   The establishment of a reta il outlet beyond the first one is subject to an economic needs test 
(ENT) as specified in Decree No.  09/2018/ND -CP, detailing regulations on the Law on Commerce, 
and the Law on Foreign Trade Management, regarding sale of goods and other related activities by 
foreign investors and foreign -invested businesses. Each province sets up its own Economic Needs 
Testing Council, which evaluates the need for the new retail outlet based on the number of existing 
retail outlets, the market stability, the population dens ity, the size of the district, and other elements 
related to district planning.244 This procedure implies that there is no nationwide implementation of 
the ENT criteria, as every region's needs differ due to uneven economic conditions. Article  7 of MOIT 
Circular No.  08/2013/TT -BCT specifies that an ENT is not required to establish an outlet of less than 
500 m2 within the area planned for trading activities and where infrastructure already exists.  
4.201.   Article  7 of Decree No.  09/2018/ND -CP allows foreign -invested enterprises to import goods 
under the following conditions: (i) imported goods are not listed as banned p roducts from import, 
temporarily suspended from import, or forbidden to import, according to the international treaties 
to which Viet  Nam is a member; and (ii) foreign -invested enterprises must obtain a licence for 
imported goods subject to licensing or ot her conditions prescribed by law. Trading rights and 
distribution rights are separately granted, and an importer does not necessarily have the distribution 
rights of an imported good.  
4.202.   The licensing scheme implemented by Decree No.  94/2012/ND -CP (on wine pr oduction and 
trading), issued 12 November 2012, generated a shortage of licences for wine producers and 
retailers. The Government issued Decree No.  105/2017/ND -CP (on alcohol trade), issued on 
14 September  2017, as amended by Decree No.  17/2020/ND -CP, issu ed on 5  February  2020, to 
create more favourable conditions for enterprises to participate in wine trading.  
4.203.   As part of the EVFTA, Viet  Nam committed to remove the requirement for an ENT five years 
after the implementation of the Agreement. No further impr ovements or liberalization beyond GATS 
commitments were made in recent trade agreements with the Eurasian Economic Union, India, and 
the Republic of Korea.245 
  
 
244 In case of proximity of th e new location to another city or province, the ENT Council must include a 
representative from the contiguous region.  
245 WTO documents WT/REG371/1, 13 April 2017; WT/REG372/1, 22 August 2016; and WT/REG385/1, 
21 June 2019.  WT/TPR/S/ 410 • Viet Nam  
 
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 5  APPENDIX TABLES  
Table A1. 1 Merchandise exports by HS sections and ma jor HS subgroups, 2012 -19 
(USD billion)  
HS section/chapter/subheading  2012  2013  2014  2015  2016  2017  2018  2019  
Total exports  114.5  132.0  150.2  162.0  176.6  215.1  243.7  264.6    
(% of total exports)  
01 Live animals and products  4.5 4.1 4.1 3.2 3.2 3.0 2.8 2.5  
03 Fish and crustaceans  4.3 3.8 3.8 3.0 2.9 2.9 2.6 2.3 
02 Vegetable products  10.4 7.7 8.2 7.3 7.5 7.0 5.9 5.0  
08 Edible fruit and nuts  1.7 1.5 1.7 2.0 2.6 2.9 2.5 2.2  
080132 Cashew nuts, shelled  1.3 1.2 1.3 1.4 1.5 1.6 1.3 1.1 
03 Fats and oils  0.3 0.2 0.2 0.2 0.1 0.1 0.1 0.1 
04 Prepared food, beverages and tobacco  2.7 3.2 3.0 2.9 2.7 2.4 2.3 2.3 
05 Mineral products  10.7 8.2 7.0 3.8 2.5 2.8 2.3 2.1 
06 Chemicals and products thereof  1.9 1.8 1.8 1.6 1.5 1.5 1.6 1.6 
07 Plastics and rubber  5.1 4.3 3.6 3.2 3.2 3.3 3.3 3.4 
08 Raw hides and skins; leather, furskins 
and articles thereof  1.4 1.6 1.8 2.0 2.0 1.7 1.5 1.5 
09 Wood, cork, straw  1.4 1.7 1.5 1.7 1.4 1.2 1.4 1.4 
10 Pulp of wood; paper and paperboard  0.4 0.4 0.4 0.3 0.3 0.4 0.4 0.5 
11 Textiles and textile articles  15.8 16.3 16.8 16.8 16.3 14.8 15.0 14.9  
61 Clothing, knitted or crocheted  5.8 6.0 6.1 6.2 6.1 5.6 5.7 5.6  
62 Clothing, not knitted or 
crocheted  6.5 6.7 7.0 7.0 6.6 5.7 5.9 5.7 
12 Footwear, headgear, etc.  6.8 6.8 7.3 7.9 7.9 7.3 7.1 7.4  
64 Footwear  6.6 6.6 7.1 7.7 7.6 7.1 6.9 7.2  
6403 Footwear with uppers of 
leather  2.8 2.8 2.9 2.9 2.4 2.1 2.1 2.1 
 
6404 Footwear with uppers of 
textile materials  1.9 2.2 2.4 3.0 3.5 3.5 3.4 3.5 
13 Articles of stone, plaster, cement  1.0 1.0 1.1 1.1 0.9 0.9 0.8 0.7 
14 Precious stones and metals  0.5 0.5 0.5 0.4 0.6 0.3 0.3 0.8 
15 Base metals and articles thereof  3.7 3.6 3.8 3.5 3.6 3.9 4.5 4.3 
16 Machinery, electrical equipment  24.7 30.7 30.2 35.5 37.9 40.2 40.3 41.7  
84 Machinery and mechanical 
appliances, parts thereof  5.1 6.2 5.9 6.2 5.5 5.2 4.8 4.9 
 
85 Electrical machineries and 
parts thereof  19.6 24.5 24.3 29.3 32.4 35.0 35.5 36.7 
 
8517 Telephone sets, including 
telephones for wireless networks  11.5 16.6 16.2 19.3 20.4 22.2 22.1 21.3 
 
851712 Telephones for cellular 
networks or for other wireless 
networks  8.8 14.6 14.2 15.5 15.4 13.8 12.8 12.9 
 
851770 Parts  2.0 1.3 1.4 3.1 4.1 7.4 7.4 6.6  
8542 Electronic integrated circuits 
and microassemblies  1.7 1.6 1.5 2.5 2.9 3.1 3.2 4.4 
 
854231 Processors and controllers  1.5 1.4 1.1 2.1 2.6 2.8 2.9 4.0 
17 Transport equipment  2.1 1.9 2.1 1.9 1.8 1.6 1.7 1.6 
18 Precision equipment  2.2 1.9 2.1 2.2 2.5 3.5 3.2 2.0  
90 Optical, photographic, medical, 
etc. 2.1 1.9 2.0 2.1 2.5 3.5 3.2 2.0 
19 Arms and ammunition  0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
20 Miscellaneous manufactured articles  4.0 3.9 4.0 4.2 4.1 3.9 3.8 4.5  
94 Furniture, bedding, lamps, etc. 3.3 3.2 3.3 3.4 3.3 3.1 3.0 3.6 
21 Works of art, etc.  0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Other   
0.3 0.4 0.4 0.4 0.1 0.1 1.6 1.7 
Source:  WTO Secretariat calculations, based on UN Comtrade database.  
  WT/TPR/S/ 410 • Viet Nam  
 
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 Table A1. 2 Merchandise imports by HS sections and major HS chapters, 2012 -19 
(USD billion)  
HS section/chapter/subheading  2012  2013  2014  2015  2016  2017  2018  2019  
Total imports  113.8  132.0  147.8  165.8  175.0  213.2  236.9  253.4    
% of total imports  
01 Live animals and products  1.3 1.4 1.8 1.6 1.4 1.4 1.5 1.6 
02 Vegetable products  3.1 3.0 3.2 3.5 3.9 4.0 3.8 3.4 
03 Fats and oils  0.7 0.5 0.5 0.4 0.4 0.4 0.3 0.3 
04 Prepared food, beverages and tobacco  3.5 3.7 3.4 3.2 3.2 2.6 2.7 2.6 
05 Mineral products  10.6 8.1 7.5 5.1 4.8 5.6 6.9 6.8  
27 Mineral fuels and oils  10.1 7.7 7.1 4.8 4.4 5.2 6.3 6.1  
   2710 Petroleum oils other than crude  8.2 5.6 5.4 3.6 3.2 3.6 3.4 2.5 
06 Chemicals and products thereof  9.1 8.5 8.0 7.4 7.3 7.1 7.0 6.7 
07 Plastics and rubber  7.6 7.6 7.6 7.0 7.3 7.4 7.5 7.3  
39 Plastics and articles thereof  6.3 6.4 6.6 6.0 6.3 6.2 6.5 6.3 
08 Raw hides and skins; leather, furskins and 
articles thereof  1.0 1.0 1.3 1.3 1.1 1.0 0.9 0.8 
09 Wood, cork, straw  1.2 1.2 1.5 1.3 1.0 1.0 0.8 0.8 
10 Pulp of wood; paper and paperboard  1.6 1.6 1.6 1.4 1.4 1.4 1.4 1.3 
11 Textiles and textile articles  9.6 9.7 9.8 9.3 9.2 8.4 8.6 8.2  
52 Cotton  2.1 2.2 2.2 2.1 1.9 1.9 2.0 1.7  
60 Knitted or crocheted fabrics  1.9 2.1 2.2 2.1 2.2 2.1 2.1 2.1 
12 Footwear, headgear, etc.  0.3 0.4 0.4 0.4 0.5 0.5 0.4 0.5 
13 Articles of stone, plaster, cement  0.8 0.7 0.7 0.7 0.9 0.8 0.8 0.9 
14 Precious stones and metals, pearls  0.3 0.4 0.4 0.4 0.3 0.3 0.2 0.2 
15 Base metals and articles thereof  12.2 11.6 11.9 11.3 10.9 10.3 11.0 9.9  
72 Iron and steel  6.6 6.1 6.3 5.3 5.2 5.0 5.1 4.5 
16 Machinery, electrical equipment  31.3 35.0 34.6 38.0 39.1 40.5 37.8 39.9  
84 Machinery and mechanical appliances, parts 
thereof  11.2 11.2 11.6 12.7 11.8 10.6 9.1 9.2 
 
85 Electrical machineries and parts thereof  20.2 23.8 23.1 25.2 27.3 29.9 28.7 30.7  
8517 Telephone sets, including telephones for 
wireless networks  4.7 6.5 6.3 7.1 6.9 8.6 7.3 6.3 
 
851770 Parts  3.8 5.4 5.0 5.8 5.4 7.1 6.2 5.2  
8541 Photosensitive semiconductor devices, 
(…), light -emitting diodes (LED)  0.5 0.6 0.6 0.8 1.0 1.0 1.3 1.8 
 
8542 Electronic integrated circuits and 
microassemblies  6.4 7.7 7.0 7.8 9.3 9.9 10.2 12.1 
 
854239 Other than processors and controllers, 
memories, amplifiers, and parts  4.8 6.1 5.5 5.5 6.2 6.5 6.7 7.2 
17 Transport equipment  2.8 2.4 2.5 4.3 3.4 2.4 2.2 2.9  
87 Motor vehicles, motorcycles, etc.  1.5 1.4 2.2 3.3 2.8 2.2 1.9 2.5 
18 Precision instruments  1.9 1.9 2.0 2.2 2.7 4.0 4.0 3.6  
90 Optical, photographic, medical, etc.  1.9 1.9 2.0 2.2 2.7 3.9 3.9 3.5 
19 Arms and ammunition  0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
20 Miscellaneous manufactured articles  0.7 0.8 0.8 0.8 1.0 0.8 0.8 0.9 
21 Works of art, collectors' pieces and antiques  0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Other  0.3 0.5 0.5 0.5 0.1 0.1 1.4 1.4 
Source:  WTO Secretariat calculations, based on UN Comtrade database.  
  WT/TPR/S/ 410 • Viet Nam  
 
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 Table A1. 3 Merchandise exports by destination, 2012 -19 
(USD billion)  
  2012  2013  2014  2015  2016  2017  2018  2019  
Total exports  114.5  132.0  150.2  162.0  176.6  215.1  243.7  264.6   
(% of total)  
Americas  20.4  21.7  23.4  25.5  26.7  24.2  23.6  27.7  
 United States  17.2  18.1  19.1  20.7  21.8  19.3  19.5  23.2  
 Other America  3.2  3.6  4.3  4.8  4.9  4.8  4.1  4.5  
     Canada  1.0  1.2  1.4  1.5  1.5  1.3  1.2  1.5  
Europe  19.0  19.6  19.9  20.1  20.4  18.9  17.9  16.8  
 EU-28 17.7  18.4  18.6  19.0  19.3  17.8  17.2  15.7  
     Netherlands  2.2  2.2  2.5  2.9  3.4  3.3  2.9  2.6  
     Germany  3.6  3.6  3.4  3.5  3.4  3.0  2.8  2.5  
     United Kingdom  2.6  2.8  2.4  2.9  2.8  2.5  2.4  2.2  
     France  1.9  1.7  1.6  1.8  1.7  1.6  1.5  1.4  
     Italy 1.6  1.7  1.8  1.8  1.8  1.3  1.2  1.3  
     Austria  0.9  1.4  1.4  1.4  1.5  1.7  1.7  1.2  
 EFTA 0.5  0.3  0.3  0.2  0.4  0.2  0.1  0.6  
 Other Europe  0.8  0.9  1.0  0.9  0.8  0.9  0.6  0.4  
Commonwealth of Independent States 
(CIS)  1.7  1.8  1.6  1.1  1.1  1.2  1.2  1.2  
Africa  2.1  2.1  2.0  1.9  1.5  1.2  1.0  1.0  
Middle East  2.8  4.0  4.0  4.4  3.6  3.1  2.8  2.5  
     United Arab Emirates  1.8  3.1  3.1  3.5  2.8  2.3  2.1  1.8  
Asia 52.9  49.6  47.7  45.6  46.0  50.3  51.9  49.2  
 China  11.2  10.0  9.9  10.2  12.4  16.5  17.0  15.7  
 Japan  11.4  10.3  9.8  8.7  8.3  7.8  7.7  7.7  
 Other Asia  30.3  29.4  28.0  26.7  25.3  26.1  27.2  25.8  
     Korea, Republic of  4.9  5.1  4.8  5.5  6.5  6.9  7.5  7.5  
     Hong Kong, China  3.2  3.1  3.5  4.3  3.4  3.5  3.3  2.7  
     India 1.6  1.8  1.7  1.5  1.5  1.7  2.7  2.5  
     Thailand  2.5  2.3  2.3  2.0  2.1  2.2  2.2  1.9  
     Chinese Taipei  1.8  1.7  1.5  1.3  1.3  1.2  1.3  1.7  
     Cambodia  2.6  2.2  1.8  1.5  1.2  1.3  1.6  1.6  
     Malaysia  3.9  3.8  2.6  2.2  1.9  2.0  1.7  1.4  
     Philippines  1.6  1.3  1.5  1.2  1.3  1.3  1.4  1.4  
     Australia  2.8  2.6  2.7  1.8  1.6  1.5  1.6  1.3  
     Indonesia  2.1  1.9  1.9  1.8  1.5  1.3  1.5  1.3  
     Singapore  2.1  2.0  2.0  2.0  1.4  1.4  1.3  1.2  
Other  1.1  1.1  1.5  1.3  0.6  1.1  1.5  1.6  
Memorandum:          
ASEAN  15.2  14.1  12.7  11.2  9.9  10.1  10.1  9.4  
Source:  WTO Secretariat calculations, based on UN Comtrade database.  
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 Table A1. 4 Merchandise imports by origin, 2012 -19 
(USD billion)  
  2012  2013  2014  2015  2016  2017  2018  2019  
Total imports  113.8  132.0  147.8  165.8  175.0  213.2  236.9  253.4   
(% of total)  
Americas  7.1  6.8  7.6  8.4  8.3  7.5  8.5  8.8  
 United States  4.3  4.0  4.3  4.7  5.0  4.4  5.4  5.7  
 Other America  2.9  2.8  3.4  3.7  3.3  3.1  3.2  3.2  
     Argentina  0.8  0.9  1.2  1.3  1.5  1.2  1.0  1.3  
     Brazil  0.9  1.0  1.3  1.5  1.0  0.9  1.0  1.1  
Europe  8.3  7.6  6.5  6.8  6.9  6.2  6.4  6.5  
 EU-28 7.7  7.1  6.0  6.2  6.4  5.7  5.9  5.9  
     Germany  2.1  2.2  1.8  1.9  1.6  1.5  1.6  1.5  
     Ireland  0.6  0.7  0.1  0.2  0.6  0.6  0.8  1.0  
     Italy 0.9  0.9  0.9  0.9  0.8  0.8  0.7  0.7  
     France  1.4  0.8  0.8  0.8  0.7  0.6  0.6  0.6  
 EFTA 0.5  0.4  0.4  0.5  0.5  0.4  0.4  0.4  
 Other Europe  0.1  0.1  0.1  0.1  0.1  0.1  0.1  0.1  
Commonwealth of Independent 
States (CIS)  1.0  1.1  0.9  0.6  0.9  0.9  1.1  0.8  
     Russian Federation  0.7  0.6  0.6  0.4  0.6  0.7  0.9  0.7  
Africa  0.9  1.1  1.1  1.2  1.5  1.9  1.3  1.1  
Middle East  2.1  2.1  2.2  1.9  1.5  1.3  2.2  2.3  
     Kuwait, State of  0.6  0.5  0.4  0.1  0.1  0.1  1.1  1.4  
     Saudi Arabia, Kingdom of  0.8  0.9  0.9  0.7  0.7  0.6  0.6  0.5  
Asia 80.1  80.3  80.6  80.0  80.1  81.2  79.2  79.1  
 China  25.5  27.9  29.5  29.8  28.6  27.5  27.7  29.8  
 Japan  10.2  8.8  8.7  8.6  8.6  7.9  8.0  7.7  
 Other Asia  44.4  43.6  42.4  41.6  42.8  45.9  43.5  41.6  
 Korea, Republic of  13.7  15.7  14.7  16.6  18.4  22.0  20.1  18.5  
 Chinese Taipei  7.5  7.1  7.5  6.6  6.4  6.0  5.6  6.0  
 Thailand  5.1  4.8  4.8  5.0  5.1  5.0  5.1  4.6  
 Malaysia  3.0  3.1  2.8  2.5  3.0  2.8  3.1  2.9  
 Indonesia  2.0  1.8  1.7  1.7  1.7  1.7  2.1  2.3  
 India 1.9  2.2  2.1  1.6  1.6  1.9  1.8  1.8  
 Australia  1.6  1.2  1.4  1.2  1.4  1.5  1.6  1.8  
 Singapore  5.9  4.3  4.6  3.6  2.7  2.5  1.9  1.6  
 Philippines  0.8  0.7  0.5  0.5  0.6  0.5  0.5  0.6  
 Hong Kong, China  0.9  0.8  0.7  0.8  0.9  0.8  0.7  0.5  
Other  0.5  1.0  0.9  1.2  0.8  0.9  1.3  1.3  
Memorandum:          
ASEAN  18.3  16.1  15.5  14.3  13.8  13.3  13.4  12.7  
Source:  WTO Secretariat calculations, based on data provided by the authorities.  
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 Table A2. 1 Selected notifications, 2013 -20 
Agreement  Requirement/content  Periodicity  WTO document and date  
(latest document if recurrent)  
Agreement on Agriculture  
Articles 10 and 
18.2 Export subsidies  Annual  G/AG/N/VNM/7, 19 September 2016  
Article  18.2 Table MA.2 – Imports under 
tariff quotas  Annual  G/AG/N/VNM/12, 12 May 2020  
Article  18.2 Domestic support  Annual  G/AG/N/VNM/6, 13 June 2016  
Agreement on Implementation of Article  VI of the GATT  1994 (Anti -dumping)  
Article  16.4 Reports concerning anti -
dumping actions  Ad hoc  G/ADP/N/341, 20 May 2020 
 Semi-annual reports of anti -
dumping actions (taken within 
the preceding six  months)  Semi-annual  G/ADP/N/335/VNM, 31 March 2020  
Article  18.5 Laws and regulations  Once, then 
changes  G/ADP/N/1/VNM/3; 
G/SCM/N/1/VNM/2; G/SG/N/1/VNM/3, 
28 May 2020  
Agreement on Implementation of Article  XVI:1 of the GATT  1994 (Subsidies and countervailing 
measures)  
Article  25.1 Subsidies   G/SCM/N/284/VNM; 
G/SCM/N/315/VNM, 28 February 2020;  
Article  25.11  Semi-annual reports of any 
countervailing duty actions 
(taken within the preceding six 
months)  Semi-annual  G/SCM/N/356, 13 December 2019  
Article  32.6 Laws and regulations  Once, then 
changes  G/ADP/N/1/VNM/3; 
G/SCM/N/1/VNM/2; G/SG/N/1/VNM/3, 
28 May 2020  
Agreement on Safeguards  
Article  12.1(a)  Investigation initiation  Ad hoc  G/SG/N/6/VNM/6, 18 May 2017  
Articles 
12.1(b) and (c) 
and 12.4  Finding and decision  Ad hoc  G/SG/N/8/VNM/6; G/SG/N/10/VNM/5; 
G/SG/N/11/VNM/7, 13 March 2018  
Articles 9 and 
12.5 Mid-term review   G/SG/N/11/VNM/8, 16 December 2019  
Article  12.6 Laws and regulations  Once, then 
changes  G/ADP/N/1/VNM/3; 
G/SCM/N/1/VNM/2; G/SG/N/1/VNM/3, 
28 May 2020  
Article  XVII:4(a) of the GATT  1994 (State trading)  
 State trading enterprises   G/STR/N/15/VNM; G/STR/N/16/VNM, 
20 April 2016  
Enabling clause  
Paragraph 4(a)  Notification of regional trade 
agreement  
 Ad hoc  WT/COMTD/RTA13/N/1, 14 January 
2020 
Agreement Implementation of Article  XXIV:7(a) of the GATT  1994 (Free -trade areas)  
Article  XXIV Free-trade area for trade in 
goods  Ad hoc  S/C/N/920; WT/REG/395/N/1, 20 
December 2018  
General Agreement on Trade in Services  
Article  V:7(a)  Free-trade agreements  
 Ad hoc  S/C/N/920; WT/REG/395/N/1, 20 
December 2018  
Agreement on Import Licensing Procedures  
Articles 1.4(a) 
and/or 8.2(b)  Laws and regulations  Once, then 
changes  G/LIC/N/1/VNM/2, 29 January 2013  
Articles 5.1, 
5.2, and 5.3  Notification of an automatic 
import licensing programme  Ad hoc  G/LIC/N/2/VNM/12, 16 December 
2019 WT/TPR/S/ 410 • Viet Nam  
 
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 Agreement  Requirement/content  Periodicity  WTO document and date  
(latest document if recurrent)  
Article  7.3 Replies to questionnaire on 
import licensing procedures   G/LIC/N/3/VNM/2, 26 September 2014  
Articles 5.1 
and 5.2  Judicial decisions and 
administrative rulings and 
modifications of rules of origin  Ad hoc   
Articles 
12.1(a) -(c), 
and Article  9.1, 
footnote 2  Investigations, findings, and 
decisions related to safeguard 
measures  Ad hoc   
Article  12.6 Laws and regulations  Once, then 
changes   
Agreement on the Application of Sanitary and Phytosanitary Measures  
Article  7 and 
Annex B  Laws, regulations, and 
emergency measures  Ad hoc  
 G/SPS/N/VNM/112, 18 March 2020  
Agreement on Technical Barriers to Trade  
Article  10.6 Proposed and adopted technical 
regulations/conformity 
assessment procedures   TBT/N/VNM/173, 10 July 2020  
Paragraph 4 of Annex II of the Agreement on Rules of Origin  
Article  5  Preferential rules of origin  Ad hoc  G/RO/N/183, 15 April 2019  
Agreement on Trade -Related Aspects of Intellectual Property Rights  
Article  63.2 Laws and regulations  
 Once, then 
changes  IP/N/1/VNM/O/15, 16 October 2013  
Agreement on Trade Facilitation  
Articles 1.4, 
10.4.3, 10.6.2, 
and 12.2.2  Category A commitments   G/TFA/N/VNM/2, 25 September 2019  
Articles 15 and 
16 Additional category 
commitments   G/TFA/N/VNM/1, 16 November 2018  
Source:  WTO Secretariat.  
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 Table A3. 1 Legislation pertaining to Viet  Nam's rules of origin, 2013 -20  
No. Title of document  Changes since 2013  
1 Decree No. 31/2018/ND -CP (on detailing a number of 
Articles of the Law on Foreign Trade Administration in 
terms of origin of goods), issued on 8 March 2018  Introduction of self -certification of origin 
(C/O)  
Application and issuance of electronic C/O 
(documentary proof issued by an issuing 
authority of an exporting country, group of 
countries, or territory based on rele vant 
regulations and requirements on origin, 
clearly identifying the origin of the good)  
Procedure of issuing C/O in combination with 
applicant classification during that procedure  
Strengthening post -inspection and 
combating frauds of goods' origin  
Handli ng violations of goods' origin  
Training on goods' origin  
2 MOIT Circular No.  05/2018/TT -BCT (on the origin of 
goods), issued on 3 April 2018  Non-preferential product origin criteria in the 
case of not wholly obtained or produced in a 
country: allowing traders of the same 
product to choose one of the three origin 
criteria: wholly obtained goods (WO), local 
value content (LVC), or change in tariff 
classification (CTC)  
3 MOIT Circular No. 22/2016/TT -BCT (on 
implementation of rules of origins in t he ASEAN Trade 
in Goods Agreement), issued on 3 October 2016    
4 Decision No. 3624/QD -BCT (adopting procedure of 
issuing electronic Form D C/O) of the Minister of 
Industry and Trade, issued on 9 December 2019  New procedure for issuing electronic Form D 
C/O 
5 MOIT Circular No.  25/2019/TT -BCT (on amending and 
supplementing a number of Articles of MOIT Circular 
No. 22/2016/TT -BCT (on implementation of rules of 
origins in the ASEAN Trade in Goods Agreement)), 
issued on 14 November 2019    
6 MOIT Circular No.  21/2019/TT -BCT (on 
regulating the rules of origin in ASEAN -Hong 
Kong China Free Trade Agreement ), issued on 8 
November 2019  Implementing the new international 
agreement  
7 MOIT Circular No.  13/2019/TT -BCT (on amending and 
supplementing a number of Articles of MOIT Circular 
No. 20/2014/TT -BCT (on the implementation of the 
Rules of Origin under the ASEAN -Korea Free Trade 
Agreement)), dated 31 July 2019   
8 MOIT Circular No.  12/2019/TT -BCT (prescribing rules 
of origin in the framework agreement on 
comp rehensive economic co -operation between the 
ASEAN and China), issued on 30 July 2019  Some new provisions on rules and criteria of 
origin  
9 MOIT Circular No.  10/2019/TT -BCT (on amending and 
supplementing MOIT Circular No. 22/2016/TT -BCT 
(on the implementation of the Rules of Origin under 
ASEAN Agreement on Trade in Goods), issued on 
31 July 2019    
10 MOIT Circular No.  03/2019/TT -BCT (on providing the 
rules of origin under the Comprehensive and 
Progressive Agreement for Trans -Pacific Partnership), 
issued on 22 January 2019  To implement the CPTPP Agreement  
11 MOIT Circular No.  21/2016/TT -BCT (on the 
implementation of rules of origin provided for in the 
free trade agreement between Viet  Nam and Eurasian 
Economic Union), issued on 20 Sep tember 2016    
12 MOIT Circular No.  42/2018/TT -BCT (on amending and 
supplementing MOIT Circular No. 31/2015/TT -BCT of 
24 September 2015 (on the implementation of the 
Rules of Origin under Agreement on establishing 
ASEAN -Australia -New Zealand Free Trade Area)), 
issued on 12 November 2018     WT/TPR/S/ 410 • Viet Nam  
 
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 No. Title of document  Changes since 2013  
13 MOIT Circular No.  11/2018/TT -BCT (on amending and 
supplementing MOIT Circular No. 21/2016/TT -BCT of 
20 September 2016 (on the implementation of the 
rules of origin of goods provided in the Free Trade 
Agreement between Viet  Nam and the Eurasian 
Economic Union)), issued on 29 May 2018  Amending the Product -Specific Rules  
14 MOIT Circular No.  20/2014/TT -BCT (on the 
implementation of the Rules of Origin under the 
ASEAN -Korea Free Trade Agreement), issued on 
25 June 2014    
15 MOIT Circular No.  26/2018/TT -BCT (on amending and 
supplementing Annex IV issued under MOIT Circular 
No. 20/2014/TT -BCT of 25 June 2014 (on the 
implementation of the rules of origin of goods 
provided in the ASEAN -Korea Free Trade 
Agreement)), issued on 14 Septem ber 2018    
16 MOIT Circular No. 36/2010/TT -BCT dated 
15 November 2010 on the implementation of the 
amended rule on procedures for C/O issuance and 
inspection of origin and the Product -Specific Rules 
according to the 2007 version of the Harmonized 
System u nder the goods Trade Agreement within the 
framework agreement on Comprehensive Economic 
Cooperation between the Association of Southeast 
Asian Nations and the People's Republic of China    
17 MOIT Circular No. 14/2016/TT -BCT dated 5 August 
2016 amending and supplementing MOIT Circular 
No. 36/2010/TT -BCT dated 15 November 2010 on 
implementation of the amended procedures for C/O 
issuance and inspection and Product -Specific Rules 
according to the 2007 version of the Harmonized 
System under the goods  Trade Agreement within the 
framework agreement on Comprehensive Economic 
Cooperation between the Association of Southeast 
Asian Nations and the People's Republic of China    
18 MOIT Circular No. 01/2011/TT -BCT dated (amending 
and supplementing MOIT Circular No. 36/2010/TT -
BCT dated 15 November 2010 on implementation of 
the amended procedures for C/O issuance and 
inspection and Product -Specific Rules according to the 
2007 version of the Harmonized System under the 
goods Trade Agreement within the framework 
agreement on Comprehensive Economic Cooperation 
between the Association of Southeast Asian Nations 
and the People's Republic of China), issued on 
14 January 2011     
19 MOIT Cir cular No. 04/2010/TT -BCT (on 
implementation of the rules of origin provided in the 
agreement between the Ministry of Industry and 
Trade of the Socialist Republic of Viet  Nam and the 
Ministry of Industry and Trade of the Lao People's 
Democratic Republic on rules of origin applicable to 
goods eligible for Viet  Nam-Lao PDR preferential 
import tariff treatment), issued on 25 January 2010    
20 MOIT Circular No. 15/2018/TT -BCT (on providing the 
channelling in the process of issuance of preferential 
certificates of origin), issued on 29 June 2018    
21 MOIT Circular No. 40/2015/TT -BCT (on the Rules of 
Origin under Viet  Nam-Korea Free Trade Agreement), 
18 November 2015    
22 MOIT Circular No. 48/2015/TT -BCT (on amending and 
supplementing MOIT Circular No. 40/2015/TT -BCT 
dated 18 November 2015 of the Ministry of Industry 
and Trade on the Rules of Origin under Viet  Nam-
Korea Free Trade Agreement), issued on 
14 December 2015    WT/TPR/S/ 410 • Viet Nam  
 
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 No. Title of document  Changes since 2013  
23 MOIT Circular No. 04/2015/TT -BCT (on amending and 
supplementing the Product -Specific Rules issued 
under MOIT Circular No. 20/2014/TT -BCT dated 
25 June 2014 of the Ministry of Industry and Trade on 
the Implementation of the Rules of Origin under 
ASEAN -Korea Free Trade Agreement), 16 March 2015   
24 Decisio n No. 44/2008/QD -BCT of the Minister of 
Industry and Trade (adopting rules on issuing Form 
AJ C/O for preferential treatment under ASEAN -Japan 
Comprehensive Economic Partnership), dated 8 
December 2008   
   
25 MOIT Circular No. 15/2010/TT -BCT (on 
implementation of the rules of origin provided in the 
ASEAN -India Free Trade Area Agreement), 
15 April 2010   
26 MOIT Circular No. 31/2015/TT -BCT (on the 
implementation of rules of origin in the Agreement 
establishing the ASEAN -Australia -New Zealand Free 
Trade Area), 24 September 2015    
27 MOIT Circular No. 31/2013/TT -BCT (on the 
implementation of Rules of Origin under the 
Viet Nam-Chile Free Trade Area), 15 November 2013   
  
28 MOIT Circular No. 05/2015/TT -BCT (on amending and 
supplementing a number of forms of the Certificate of 
Goods Origin issued with MOIT Circular 
No. 31/2013/TT -BCT (on the implementation of the 
origin regulations in Free Trade Agreement Between 
Viet Nam and Chile), issued on 15 November 2014)), 
27 March 2015    
29 MOIT Cir cular No. 38/2018/TT -BCT (on prescribing 
certification of origin of goods under the GSP of the 
European Union, Norway, Switzerland, and Turkey), 
issued on 30 October 2018  
 Application for REX (number registration 
number assigned to an exporter for use 
when  carrying out GSP certification of origin 
procedures)  
Revocation of REX number  
Additional measures against origin -related 
frauds  
Principles for application  
30 MOIT Circular No. 39/2018/TT -BCT (on prescribing 
the checking and verification of origin of export 
goods), issued on 30 October 2018  Methods, circumstances, procedures for 
inspection and verification of products' origin  
31 MOIT Circular No. 28/2015/TT -BCT (on pilot 
implementation of self -certification of origin of goods 
provided in the ASEAN Tr ade in Goods Agreement), 
20 August 2015    
32 MOIT Circular No. 27/2017/TT -BCT (on amending and 
supplementing MOIT Circular No. 28/2015/TT -BCT 
dated 20 August 2015 (on pilot implementation of 
self-certification of origin of goods provided in the 
ASEAN Trade in Goods Agreement)), issued on 
6 December 2 017     
33 Decision 1313/QD -BCT of the Minister of Industry and 
Trade (on amending and supplementing Decision 
No. 2412/QD -BCT of the Minister of Industry and 
Trade (on adopting procedure for issuing preferential 
Certificate of Origin via Internet), issued on 15 June 
2016)), issued on 17 April 2017   
34 Decision 9866/QD -BCT of the Minister of Industry and 
Trade (adopting Pilot Procedure of issuing Form D C/O 
via Internet (Phase 2)), issued on 15 September 2015    
35 Decision 4099/QD -BCT of the Minister of Industry and 
Trade (adopting the List of Traders selected for the 
Pilot Procedure of issuing C/O via Internet), 
25 April 2015   
36 Decision 4082/QD -BCT of the Minister of Industry and 
Trade (adopting Pilot Procedure of issuing Form D C/O 
via Internet), 24 April 2015    WT/TPR/S/ 410 • Viet Nam  
 
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 No. Title of document  Changes since 2013  
37 MOIT Circular No. 06/2020/TT -BCT (on amending and 
supplementing MOIT Circular No. 03/2019/TT -BCT on 
providing the rules of origin under the Comprehensive 
and Progressive Agreement for Trans -Pacific 
Partnership), issued on 24 March 2020   
38 MOIT Circular No. 07/2020/TT -BCT (on amending and 
supplementing MOIT Circular No. 31/2015/TT -BCT of 
24 September 2015 (on the implementation of the 
Rules of Origin under Agreement on establishing 
ASEAN -Australia -New Zealand Free Trade Area)), 
issued on 30 March 2020   
39 MOIT Circular No. 08/2020/TT -BCT (on 
implementation of rules of origins in the Viet  Nam-
Cuba Trade Agreement), issued on 08 April 2020   
40 MOIT Circular No. 11/2020/TT -BCT (on 
implementation of rules of origins in the Viet  Nam-EU 
Free Trade Agreement), issued on 15 June 2020   
41 MOIT Circular No. 19/2020/TT -BCT (on amending and 
supplementing MOIT Circulars on implementation of 
rules of origins in the ASEAN Trade in Goods 
Agreement)   
Source:  Information provided by the authorities.  
  WT/TPR/S/ 410 • Viet Nam  
 
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 Table A3. 2 Tariff summary, 20 20 
 Number of 
lines  Average 
(%) Standard 
deviation  Duty free 
(%) Range 
(%) 
Totala 10,813  12.0 14.9 29.2 0-135 
HS 01 -24 1,726  18.6 16.2 11.2 0-135 
HS 25-97a 9,087  10.7 14.3 32.6 0-100 
By WTO category       
WTO agricultural products  1,370  19.1 17.6 11.8 0-135 
 Animals and products thereof  152 14.1 11.2 10.5 0-40 
 Dairy products  45 10.2 5.8 4.4 0-20 
 Fruit, vegetables, and plants  357 19.3 12.2 9.8 0-40 
 Coffee and tea  43 26.4 9.3 0.0 10-40 
 Cereals and preparations  200 20.4 16.3 8.0 0-80 
 Oils seeds, fats, oil and their 
 products  222 14.2 10.8 7.7 0-35 
 Sugars and confectionery  31 27.4 28.8 6.5 0-100 
 Beverages, spirits and tobacco  122 49.6 24.8 0.0 15-135 
 Cotton  5 6.0 4.9 40.0 0-10 
 Other agricultural products, 
 n.e.s.  193 7.1 7.2 36.8 0-20 
WTO non -agricultural productsa 9,443  11.0 14.2 31.7 0-100 
 Fish and fishery products  437 14.4 8.8 14.6 0-35 
 Minerals and metals  1,553  9.6 11.2 31.1 0-60 
 Chemicals and photographic 
 supplies  1,507  4.1 6.1 52.2 0-27 
 Wood, pulp, paper and furniture  557 10.7 9.4 27.5 0-25 
 Textiles  855 10.0 6.4 9.4 0-100 
 Clothing  351 19.7 2.2 0.0 5-20 
 Leather, rubber, footwear and 
 travel goods  322 12.3 11.2 11.2 0-35 
 Non-electric machinery  1,328  4.7 7.5 54.6 0-50 
 Electric machinery  719 8.8 9.2 37.6 0-35 
 Transport equipmenta 1,019  35.0 27.6 7.5 0-75 
 Non-agricultural products, n.e.s.  751 10.0 10.6 42.2 0-35 
 Petroleum  44 12.5 7.6 4.5 0-20 
By ISIC sector       
 ISIC 1 – Agriculture, hunting and 
 fishing  686 12.5 15.2 24.8 0-90 
 ISIC 2 – Mining  122 4.2 11.1 44.3 0-60 
 ISIC 3 – Manufacturinga 10,004  12.1 14.9 29.3 0-135 
 Manufacturing excluding food 
 processinga 8,882  10.9 14.4 32.1 0-100 
   Electrical energy  1 1.0 0.0 0.0 1 
By stage of processing       
 First stage of processing  1,133  10.8 14.2 29.1 0-100 
 Semi-processed products  2,855  6.1 7.9 39.7 0-100 
 Fully processed productsa 6,825  14.8 16.5 24.8 0-135 
By HS section       
 01 Live animals and products  589 12.5 10.7 15.8 0-80 
 02 Vegetable products  492 15.3 11.1 13.2 0-60 
 03 Fats and oils  175 16.5 10.8 0.0 3-35 
 04 Prepared food, beverages and 
 tobacco  470 30.3 21.2 7.4 0-135 
 05 Mineral products  218 6.9 10.7 31.7 0-60 
 06 Chemicals and products thereof  1,260  3.0 5.1 59.4 0-27 
 07 Plastics, rubber, and articles 
 thereof  565 8.8 8.2 15.0 0-35 
 08 Raw hides and skins, leather, 
 and its products  91 12.7 10.8 26.4 0-25 
 09 Wood and articles of wood  228 7.3 9.4 47.8 0-25 WT/TPR/S/ 410 • Viet Nam  
 
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  Number of 
lines  Average 
(%) Standard 
deviation  Duty free 
(%) Range 
(%) 
 10 Pulp of wood, paper and    
paperboard  300 12.7 8.1 12.3 0-25 
 11 Textiles and textile articles  1,175  12.6 7.0 8.0 0-100 
 12 Footwear, headgear, etc.  84 22.3 10.3 7.1 0-30 
 13 Articles of stone, plaster, 
 cement  250 19.9 14.2 5.6 0-45 
 14 Precious stones and metals, 
 pearls  86 12.2 13.2 20.9 0-30 
 15 Base metals and articles 
 thereof  1,034  8.0 8.7 35.3 0-35 
 16 Machinery, electrical 
 equipment, etc.  2,132  6.2 8.4 48.8 0-50 
 17 Transport equipmenta 1,033  34.5 27.6 8.2 0-75 
 18 Precision equipment  326 4.5 7.9 67.5 0-25 
 19 Arms and ammunition  30 5.2 11.1 80.0 0-30 
 20 Miscellaneous manufactured 
 articles  267 17.8 8.6 6.4 0-30 
 21 Works of art, etc.  8 3.8 6.5 62.5 0-20 
a For 230 tariff lines, under motor vehicles (HS Chapter 87), no rates are provided as duties are based 
on special instructions provided under Chapter 98.  
Source:  WTO Secretariat calculations, based on data provided by the authorities.  
  WT/TPR/S/ 410 • Viet Nam  
 
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 Table A3. 3 Tariff lines whose applied MFN tariff rates exceed bound rates, 20 20 
HS code  Description  MFN 
applied  Bound  
02076000  Meat and edible offal of guinea fowl, not cut into pieces  40%  
 
       Not cut into pieces   
40%  
       Other, than not cut into pieces   
15% 
02089090  Other meat  10% 5% 
07095910  Truffles  20% 15% 
07099100  Globe artichokes  15% 13% 
20056000  Asparagus, preserved / prepared  35% 30% 
10062090  Husk brown rice, other than Home Mali rice  60% 40% 
16052100  Shrimp and prawns, preserved/prepared, not in airtight 
containers  35% 30% 
20089940  Other fruit or nuts preserved/prepared  40% 30% 
20089990  Other fruit or nuts preserved/prepared  40% 30% 
27150010  Polyurethane tar coatings  20% 5% 
48043990  Kraft paper, other  20% 18% 
68042200  Millstones (...) of other agglomerated abrasives or of ceramics  20%  
 
       Containing brown corundum grindstone granules  8% 
         Other    20% 
68042300  Millstones (...) of natural stone  20%  
 
       Containing brown corundum grindstone granules  8% 
         Other    20% 
68043000  Hand sharpening or polishing stones  20%  
 
       Containing brown corundum grindstone granules  8% 
         Other    20% 
70199020  Glass fibres and articles thereof, blinds  30% 3% 
71012200  Culture pearls, worked  4% 3% 
84336010  Machines for cleaning, sorting eggs, fruit etc., electrically 
operated  5% 1% 
84336020  Machines for cleaning, sorting eggs, fruit etc., not electrically 
operated  5% 1% 
84719030  Electronic fingerprint identification system  3% 0% 
Source:  Information provided by the authorities.  
  WT/TPR/S/ 410 • Viet Nam  
 
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 Table A3. 4 Goods subject to import restriction, 2020  
Measure/affected products  
Import subject to specific control  
Under the Ministry of Industry and Trade  
− Goods subject to import control in accordance with international treaties to which Viet Nam is a 
contracting party, to be promulgated by the MOIT for each period (import licence);  
− Goods subject to the grant of automatic import licences: the MOIT shall publish a list of goods to which 
the grant of automatic import licen ces applies for each period and organize the grant of such permits 
under current regulations on grant of licences (automatic import licence);  
− Goods subject to tariff quotas: (a) salt; (b) material tobacco; (c) poultry eggs; and (d) refined sugar, 
crude su gar (import licence);  
− Chemicals and products containing chemicals (complying with the Law on Chemicals and guiding 
Decrees);  
− Schedule 2 and 3 chemicals provided in Annex to Decree No. 38/2014/ND -CP (on the management of 
chemicals under control of the Convention on the Prohibition of the Development, Production, 
Stockpiling and Use of Chemical Weapons and on their Destruction), issued on 6 May 2014 (complying 
with Decree No. 38/2014/ND -CP); 
− Pre-substances used in industries (import licence);  
− Explosive  pre-substances, industrial explosives (setting out conditions and import licence); and  
− Tobacco materials, tobacco products, cigarette rolling papers; machines and equipment exclusively used 
for cigarette production and spare parts (complying with the Gov ernment's regulations on cigarette 
production and trading).  
Under the Ministry of Transport  
− Signal fires for navigational safety (import licence).  
Under the Ministry of Agriculture and Rural Development  
− Veterinary drugs and materials for production thereof registered for first -time importation into Viet Nam 
(test permit);  
− Biological and microbiological preparations, chemicals used in veterinary medicine registered for first -
time importation into Viet Nam (test permit);  
− Plant protection p roducts not included in the list of plant protection products permitted to be used in 
Viet Nam for temporary importation or temporary import to manufacture in Viet Nam for further export 
under contract signed with foreign party (import licence);  
− Plant pro tection products for sterilization containing active ingredient methyl bromide and active 
ingredients with acute toxicity under Category I or II based on Harmonized System of Classification and 
Labelling of Chemicals (GHS) (import licence);  
− Plant protecti on products not included in the list of plant protection products permitted to be used in 
Viet Nam for testing for the purpose of registration (import licence);  
− Plant protection products not included in the list of plant protection products permitted to be used in 
Viet Nam for testing, research; used in foreign projects in Viet Nam; plant protection products used as 
sample goods, goods in exhibition, trade fairs and in certain special circumstances under decision of the 
MARD (import licence);  
− Medicines under list of plant protection products banned from use in Viet Nam but being imported as 
reference materials (import licence);  
− Livestock breeds outside the list of those permitted for production and trading in Viet Nam; assorted 
insects not e xisting in Viet Nam; sperms, embryos of livestock breeds imported for the first time into 
Viet Nam (import licence or test permit, clearly prescribing conditions and procedures for grant of 
licences);  
− Plant varieties, live organisms in the field of plant protection and other articles on the list of articles 
subject to plant quarantine for pest -risk analysis before being imported into Viet  Nam (import licence, 
clearly prescribing conditions and procedures for grant of licences);  
− Plant varieties outside the  list of plant varieties permitted for production and trading in Viet  Nam, which 
are imported for research, test, trial production or imported for international cooperation, as samples 
for display at exhibitions and gifts or implementing investment program mes, projects (import licence or 
test permit, clearly prescribing conditions and procedures for grant of licences in accordance with the 
Ordinance on Plant Varieties and the Ordinance on Livestock Breeds);  
− Livestock feeds and materials for production thereof; aquatic feeds and materials for production 
thereof, outside the list of feeds permitted for circulation in Viet  Nam (import licence or test permit, 
clearly prescribing conditions and procedures for grant of licences);  
− Fertilizers not p ermitted for circulation in Viet  Nam: (a) fertilizers intended for testing; (b) fertilizers 
intended for sports grounds, amusement parks; (c) fertilizers intended for foreign -invested enterprises 
to serve business of enterprises, intended for foreign proje cts in Viet  Nam; (d) fertilizers as donations; 
sample goods; (e) fertilizers in trade fairs, exhibitions; (f) fertilizers imported for manufacturing 
exported fertilizers; (g) fertilizers intended for scientific research; (h) fertilizers as materials for 
manufacture of other fertilizers (import licence);  
− Gene sources of plants, domestic animals, microorganisms for research, scientific and technical 
exchange (import licence, clearly prescribing conditions and procedures for grant of licences);  
− Samples of pr ecious and rare, endangered, wild animals and plants from natural resources under 
Appendix I to CITES for non -commercial purpose (based on the provisions of the CITES, prescribing 
conditions and guiding procedures for import);  WT/TPR/S/ 410 • Viet Nam  
 
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 Measure/affected products  
− Samples of endangered and wild animals and plants from natural resources under Appendix II or III to 
CITES, and samples of endangered and wild animals and plants under Appendix II or III to CITES from 
breeding, rearing, artificial tree planting (based on the provisio ns of the CITES, prescribing conditions 
and guiding procedures for import);  
− Materials for production of biological and microbiological preparations, chemicals and substances used 
in aquaculture to improve environment (regulations on the management of qual ity of imported 
materials);  
− Finished products on the list of products permitted for circulation in Viet  Nam or on the list of products 
subject to conditional import (promulgating the list of products permitted for circulation in Viet  Nam 
(the list of pro ducts which may be normally imported) and the list of products subject to conditional 
import);  
− Finished products neither on the list of products permitted for circulation in Viet  Nam or the list of 
products subject to conditional import (import licence, clearly prescribing conditions, volumes and 
procedures for grant of licences);  
− Aquatic species which may be normally imported (promulgating the list of aquatic species which may be 
normally imported);  
− Aquatic species subject to conditional import (promul gating the list of aquatic species subject to 
conditional import);  
− Aquatic species outside the list of products permitted for normal import which are imported for the first 
time into Viet  Nam (import licence, clearly prescribing conditions, volumes and pr ocedures for grant of 
licences);  
− Live aquatic animals used as food on the list of normal imports (promulgating the list of live aquatic 
animals used as food, which may be normally imported); and  
− Live aquatic animals used as food outside the list of live aquatic species imported to be used as food in 
Viet Nam (regulations on risk assessment, grant of licences).  
Under the Ministry of Natural Resources and Environment  
− Scraps (prescribing import conditions or standards).  
Under the Ministry of Information and Communication  
− Publications (books, newspapers, magazines, paintings, photos, calendars) (complying with the laws on 
publication and press);  
− Prepress system of printing industry (complying with the law on printing activities);  
− Printing ma chines of all kinds (offset, flexo, gravure, letterpress, silk -screen printing machine; colour 
photocopiers, printers with colour photocopying function) (complying with the law on printing 
activities); and  
− Cybersecurity products, including: (a) inspection and evaluation of cybersecurity; (b) surveillance of 
cybersecurity; (c) anti -hacking products (import licence).  
Under the Ministry of Culture, Sports and Tourism  
− Cinematographic works, works of performing arts and other audio -visual products, recorded on any 
material (approving contents of imported products);  
− Works of fine arts, photographic works (approving contents of imported products);  
− Electronic game machines installed with video game programmes; electronic game ma chines installed 
with prize -awarding programmes and casino -related equipment (written confirmation of list of imported 
goods); and  
− Children's toys (stipulating technical conditions).  
Under the Ministry of Health  
− Medicines granted marketing authorization, other than medicines put under special control (to be 
imported as needed; certification of packing lists of imports is not required);  
− Medicinal materials being active ingredients granted marketing authorization in Viet  Nam (to be 
imported a s needed; certification of packing lists of imports is not required);  
− Medicinal materials being active ingredients for manufacture of medicines according to the application 
for registration granted marketing authorization in Viet  Nam (to be imported as ne eded; certification of 
packing lists of imports is not required);  
− Medical equipment granted marketing authorization (to be imported as needed; certification of packing 
lists of imports is not required);  
− Chemicals and preparations for killing insects and bacteria for domestic and medical uses granted 
marketing authorization (to be imported as needed; certification of packing lists of imports is not 
required);  
− Drugs put under special control (import licence);  
− Medicinal materials put under special control (import licence);  
− Medicines not granted marketing authorization in Viet  Nam (import licence);  
− Medicinal materials not granted marketing authorization in Viet  Nam, other than medicinal materials put 
under special control (import licence);  
− Reference materials, packages in physical contact with medicinal products (import licence);  
− Imported food under management of the MOH as prescribed in laws and regulations on food safety 
(declaration of conformity, declaration of conformity with food safe ty and state inspection);  
− Medical equipment not granted marketing authorization for scientific research or testing or instructions 
for use  (import licence);  
− Medical equipment not granted marketing authorization for purpose of aid (import licence);  
− Medic al equipment not granted import marketing authorization for individual therapy (import licence);  WT/TPR/S/ 410 • Viet Nam  
 
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 Measure/affected products  
− Chemicals, preparations imported for research (import licence);  
− Preparations imported for purpose of aid or other purposes (import licence); and  
− Cosmetics (announcing standards).  
Under the State Bank of Viet  Nam 
− Raw gold (import licence).  
Source:  Decree No. 69/2018/ND -CP, issued on 15 May 2018.  
 WT/TPR/S/ 410 • Viet Nam  
 
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 Table A3. 5 Anti-dumping and safeguard measures initiated between 2013 an d 2019  
Anti-dumping measures  
Case code  Product under 
investigation  HS code  Year of 
initiation  Status  
AD01  Cold-rolled stainless 
steel imported from 
China, Indonesia, 
Malaysia, and Chinese 
Taipei  7219.32.00, 7219.33.00, 
7219.34.00, 7219.35.00, 
7219.90.00, 7220.20.90, 
7220.90.10, 7220.90.90, 
7220.20.10  2013 In effect  
AD02  Galvanized steel 
imported from China and 
the Republic of Korea  7210.41.11, 7210.41.12, 
7210.41.19, 7210.49.11, 
7210.49.12, 7210.49.13, 
7210.49.19, 7210.50.00, 
7210.61.11, 7210.61.12, 
7210.61.19, 7210.69.11, 
7210.69.12, 7210.69.19, 
7210.90.10, 7210.90.90, 
7212.30.11, 7212.30.12, 
7212.30.13, 7212.30.14, 
7212.30.19, 7212.30.90, 
7212.50.13, 7212.50.14, 
7212.50.19, 7212.50.23, 
7212.50.24, 7212.50.29, 
7212.50.93, 7212 .50.94, 
7212.50.99, 7212.60.11, 
7212.60.12, 7212.60.19, 
7212.60.91, 7212.60.99, 
7225.92.90, 7226.99.11, 
7226.99.91  2016 In effect  
AD03  H-beam imported from 
China  7216.33.11, 7216.33.19, 
7216.33.90, 7228.70.10, 
7228.70.90  2016 In effect  
AD04  Certain alloy steel or 
non-alloy steel products, 
rolled flat, painted or 
varnished or covered 
with plastic or other 
imported from China and 
the Republic of Korea  7210.70.11, 7210.70.19, 
7210.70.91, 7210.70.99, 
7212.40.11, 7212.40.12, 
7212.40.19, 7212.40.91 , 
7212.40.92, 7212.40.99, 
7225.99.90, 7226.99.19, 
7226.99.99  2018 In effect  
AD05  Some articles of 
aluminium, alloy or non -
alloy, in rods, rods and 
profiles imported from 
China  7604.10.10, 7604.10.90, 
7604.21.90, 7604.29.10, 
7604.29.90  2019 In effect  
AD06  Certain wood fibre 
products or of other 
materials of wood quality 
imported from Thailand 
and Malaysia  4411.12.00, 4411.13.00, 
4411.14.00, 4411.92.00, 
4411.93.00, 4411.94.00  2019 Investigation 
ongoing  
AD07  Some plastics and plastic 
products made from 
polymers imported from 
China, Malaysia, and 
Thailand  3920.20.10, 3920.20.91  2019 Investigation 
ongoing  
AD08  Some cold -rolled (cold -
pressed) steel products 
in rolls or sheets 
imported from China  7209.16.10, 7209.16.90, 
7209.17.10, 7209.17.90, 
7209.18.91, 7209.18.99, 
7209.26.10, 7209.26.90, 
7209.27.10, 7209.27.90, 
7209.28.10, 7209.28.90, 
7209.90.90, 7211.23.20, 
7211.23.30, 7211.23.90, 
7211.29.20, 7211.29.30  2019 Investigation 
ongoing  
AD09  Monosodium glutamate 
imported from China and 
Indonesia  2922.42.20  2019 Investigation 
ongoing  WT/TPR/S/ 410 • Viet Nam  
 
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 Safeguard measures  
Case code  Product under 
investigation  HS code  Year of 
initiation  Status  
SG03  Monosodium glutamate  2922.42.20  2015 In effect  
SG04  Steel billet, long steel  7207.11.00, 
7207.19.00, 
7207.20.29, 
7207.20.99, 
7224.90.00, 
7213.10.00, 
7213.91.20, 
7214.20.31, 
7214.20.41, 
7227.90.00, 
7228.30.10, 
9811.00.00  2015 In effect  
SG05  Ton mau  7210.70.10, 
7210.70.90, 
7212.40.20, 
7212.40.90, 
7225.99.90, 
7226.99.19, 
7226.99.99  2016 In effect  
SG06  Fertilizer  3105.10.90, 
3105.30.00, 
3105.40.00, 
3105.51.00, 
3105.59.00, 
3105.90.00  2017 In effect  
Source:  Information provided by the authorities.  WT/TPR/S/ 410 • Viet Nam  
 
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 Table A3. 6 Export taxes , 1 January 20 20 
HS Code  Description  Applied 
rate 
(%) Committed 
rate in WTO 
(from 2012)  
(%) 
03.01  Live fish  0-10  
03.02  Fish, fresh or chilled, excluding fish fillets and other fish flesh of 
heading 03.04 provided in the Directory of Viet  Nam's Imports 
and Exports  0-10  
03.03  Fish, frozen, excluding fish fillets and other fish flesh of heading 
03.04 provided in the Directory of Viet  Nam's Imports and 
Exports  0-10  
03.04  Fish fillets and other fish flesh (whether or not minced), fresh, 
chilled or frozen  0-10  
03.05  Fish, dried, salted or in brine; smoked fish, whether or not 
cooked before or during the smoking process; flours, meals and 
pellets of fish, fit for human consumption  0-10  
0801.31.00  Cashew nuts in shell  0a  
1211.90.14, 
1211.90.19, 
1211.90.98, 
1211.90.99  Agarwood  15  
2502-2516, 
2518-2522, 
2524, 2526, 
2528-2530 Minerals  5-30  
2601-2617 Metal ores and concentrates  10-40  
2621 Other slag and ash, including seaweed ash (kelp); ash and 
residues from the incineration of municipal waste  0-7  
2701-2704 Coal 10-20  
2709 Petroleum oils and oils obtained from bituminous minerals, 
crude  0-10  
2709.00.10  Crude petroleum oil  10  
28.04  Hydrogen, rare gases and other non -metals  0-5  
28.17  Zinc oxide; zinc peroxide  0-5  
28.18  Artificial corundum, whether or not chemically defined; 
aluminium oxide; aluminium hydroxide  0  
40.01, 40.02, 
40.05  Rubber  0-5  
4101 Raw hides and skins of bovine (including buffalo) or equine 
animals (fresh, or salted, dried, limed, pickled or otherwise 
preserved, but not tanned, parchment -dressed or further 
prepared), whether or not de -haired or split  10  
4102 Raw skins of sheep or lambs (fresh, or salted, dried, limed, 
pickled or otherwise preserved, but not tanned, parchment -
dressed or further prepared), whether or not with wool on or 
split, other than those excluded by Note 1(c) to this Chapter  5  
4103 Other raw hides and skins (fresh, or salted, dried, limed, 
pickled or otherwise preserved, but not tanned, parchment -
dressed or further prepared), whether or not de -haired or split, 
other than those excluded by Note 1(b) or Note 1(c) to this 
Chapter  0-10  
4401 Fuel wood, in logs, in billets, in twigs, in faggots or in similar 
forms; wood in chips or particles; sawdust and wood waste and 
scrap, whether or not agglomerated in logs, briquettes, pellets 
or similar forms  0-5  
4402 Wood charcoal (including shell and nut charcoal), whether or 
not agglomerated  0-10  
4403 Trees' roots and bush of natural wood  10  
4404 Hoopwood; split poles; piles, pickets and stakes of wood, 
pointed but not sawn lengthwise; wooden sticks, roughly 
trimmed but not turned, bent or otherwise worked, suitable for 
the manufacture of walking -sticks, umbrellas, tool handles or 
the like; chip wood and the like of natural wood  5  
4406 Railway or tramway sleepers (cross -ties) of natural wood  20  
4407 Wood sawn or chipped lengthwise, sliced or peeled, whether or 
not planed, sanded or end-jointed, of a thickness exceeding 
6 mm of natural wood  5-20  WT/TPR/S/ 410 • Viet Nam  
 
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 HS Code  Description  Applied 
rate 
(%) Committed 
rate in WTO 
(from 2012)  
(%) 
4408 Sheets for veneering and laminated wood (whether or not 
assembled), other wood, sawn lengthwise, sliced or peeled, 
whether or not planed, sanded, spliced or end -jointed, of a 
thickness not exceeding 6  mm of natural wood  5a  
4409 Wood (including strips and friezes for parquet flooring, not 
assembled) continuously shaped (tongued, grooved, rebated, 
chamfered, V -jointed, beaded, moulded, rounded or the like) 
along any of its edges, ends or faces, whether or not planed, 
sanded or end of natural wood  5a  
7102 Diamonds, whether or not worked, but not mounted or set  5-15  
7103 
 
 
 
 
7103.10.00  
 
7103.91.00  
7103.99.00  Precious stones (other than diamonds) and semi-precious 
stones, whether or not worked or graded but not strung, 
mounted or set; ungraded precious stones (other than 
diamonds) and semi -precious stones, temporarily strung for 
convenience of transport:  
- Un-worked or simply sawn or roughly shaped  
- Otherwise worked:  
-- Rubies, sapphires and emeralds  
-- Other   
 
 
 
 
15 
 
5 
5  
7104 Synthetic or reconstructed precious or semi -precious stones, 
whether or not worked or graded but not strung, mounted or 
set; ungraded synthetic or reconstructed precious or semi -
precious stones, temporarily strung for convenience of 
transport  5-10  
7105.90.00  Dust and powder of precious stones of 7103  3  
7106 Silver (including silver plated with gold or platinum), unwrought 
or in semi-manufactured forms, or in powder form  5  
7108 Gold (including gold plated with platinum) unwrought or in 
semi-manufactured forms, or in powder form  0-10  
7113 Articles of jewellery and parts thereof, of precious metal or of 
metal clad with precious metal  0-10  
7114 Articles of goldsmiths' or silversmiths' wares and parts thereof, 
of precious metal or of metal clad with precious metal  0-10  
7115 Other articles of precious metal or of metal clad with precious 
metal  0-10  
7204 Iron and steel wastes (excluding turnings, shavings, milling 
waste, sawdust, filings, trimmings, and stampings of steel, 
whether or not in bundles)  15-17 17 
7401 Copper mattes; cement copper (precipitated copper)  15-20  
7403 Refined copper and copper alloys, unwrought  10-20  
7404 Copper waste and scrap  22 22 
7405 Master alloys of copper  15  
7406.10.00  Powders of non -lamellar structure  15  
7406.20.00  Powders of lamellar structure; flakes  15  
7407 Copper bars, rods and profiles  10  
7501 Nickel mattes, nickel oxide sinters and other intermediate 
products of nickel metallurgy  0-5  
7502 Unwrought nickel  5  
7503.00.00  Nickel waste and scrap (excluding turnings, shavings, milling 
waste, sawdust, filings, trimmings and stampings of nickel, 
whether or not in bundles)  22 22 
7504.00.00  Nickel powders and flakes  5  
7505.11.00  Nickel, not alloyed, in bars, rods and profiles  5  
7505.12.00  Alloyed nickel bars, rods and profiles  5  
7601 Unwrought aluminium  15  
7602.00.00  Aluminium waste and scrap (excluding turnings, shavings, 
milling waste, sawdust, filings, trimmings and stampings of 
aluminium, whether or not in bundles)  22 22 
7603 Aluminium powders and flakes  10  
7801 Unwrought lead  15  
7802.00.00  Lead waste and scrap (excluding turnings, shavings, milling 
waste, sawdust, filings, trimmings and stampings of lead, 
whether or not in bundles)  22 22 
7804.20.00  Lead powders and flakes  5  
7806 Other articles of lead  5  
7901 Unwrought zinc  10  WT/TPR/S/ 410 • Viet Nam  
 
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 HS Code  Description  Applied 
rate 
(%) Committed 
rate in WTO 
(from 2012)  
(%) 
7902.00.00  Zinc waste and scrap (excluding turnings, shavings, milling 
waste, sawdust, filings, trimmings and stampings of zinc, 
whether or not in bundles)  22 22 
7903.10.00  Zinc powder  5  
7903.90.00  Zinc powder and flakes  5  
7904 Zinc bars, rods, profiles  5  
8001 Unwrought tin  10  
8002.00.00  Tin waste and scrap (excluding turnings, shavings, milling 
waste, sawdust, filings, trimmings and stampings of tin, 
whether or not in bundles)  22 22 
8003.00.10  Tin bars, rods  5  
8003.00.90  Tin profiles  5  
8007 Aluminium powder and flakes  5  
8101 to 8113  Waste and scraps of metal and metallic ceramics and their 
products (excluding turnings, shavings, milling waste, sawdust, 
filings, trimmings and stampings, whether or not in bundles)  22 22 
8101 to 8113  Semi-products of metal and metallic ceramics and products of 
metal and metallic ceramics  5  
8104 Magnesium and articles thereof, including waste and scrap  15  
a These items were not subject to export duty in 2012.  
Source:  Information provided by the authorities.  WT/TPR/S/ 410 • Viet Nam  
 
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 Table A3. 7 Goods subject to export prohibition, restriction, 2020  
Measure/affected products  
Export prohibition  
Under the Ministry of Industry and Trade  
− Schedule 1 toxic chemicals defined in the Convention on the Prohibition of the Development, 
Production, Stockpiling and Use of Chemical Weapons and on their Destruction and Annex to Decree 
No. 38/2014/ND -CP dated 6 May 2014 on the management of chemicals under control in t he 
Convention on the Prohibition of the Development, Production, Stockpiling and Use of Chemical 
Weapons and on their Destruction; and  
− Chemicals under the list of banned chemicals prescribed in Appendix III to Decree No. 113/2017/ND -
CP dated 9 October 201 7 on guidelines for certain articles of the Law on Chemicals.  
Under the Ministry of Agriculture and Rural Development  
− Logs, sawn timber from domestic natural forests;  
− Samples of precious, rare and endangered animals and plants under Appendix I to CITES derived from 
natural resources; or samples of precious, rare and endangered forest animals and plants under which 
need to be placed under Category IA or IB prescribed in Decree No. 32/2006/ND -CP on export for 
commercial purpose;  
− Samples and processe d products of species: white rhinoceros ( Ceratotherium simum ), black rhinoceros 
(Diceros bicornis ), African elephants ( Loxodonta africana ); 
− Wild precious, rare and endangered species under Category I;  
− Aquatic species under list of aquatic species prohibi ted from export; and  
− Livestock breeds and plant varieties under the list of precious and rare livestock breeds and plant 
varieties prohibited from export promulgated by the MARD in conformity with the Ordinance on 
Livestock Breeds 2004 and Ordinance on Pl ant Varieties 2004.  
Under the Ministry of National Defence  
− Weapons, ammunition s, explosives  (excluding industrial explosives) , technical military equipment ; and  
− Encrypted products used for protection of state secrets.  
Under the Ministry of Culture, Sports and Tourism  
− Relics, antiques and national precious objects in accordance with the law on cultural heritage ; and  
− Assorted cultural products banned from dissemination and circulation or decided to be suspended from 
dissemination and circula tion, or subject to revocation, confiscation and destruction in Viet  Nam.  
Under the Ministry of Information and Communications  
− Assorted publications banned from dissemination and circulation in Viet  Nam; and  
− Postage stamps banned from trading, exchange, display and dissemination in accordance with the Law 
on Post.  
Export subject to specific control  
Under the Ministry of Industry and Trade  
− Chemicals and products containing chemicals  (in accordance with the Law on Chemicals and guiding 
Decrees) ; 
− Schedule 2 and 3 chemicals provided in Annex to Decree No. 38/2014/ND -CP, dated 6 May 2014, on 
the management of chemicals under control of the Convention on the Prohibition of the Development, 
Production, Stockpiling and Use of Chemical Weapons and on their Destruction (in accordance with 
Decree No. 38/2014/ND -CP, issued on 6 May 2014);  
− Pre-substances used in industries (export licence);  
− Minerals (other than mineral as building materials) (promulgation of lists of goods subject to 
conditional expor t, with prescribed conditions or standards);  
− Explosive pre -substances, industrial explosives (export licence);  
− Goods exported within quotas set by foreign countries (the MOIT is to announce these goods in 
conformity with Viet  Nam's agreements or internat ional commitments with foreign countries) (export 
licence);  
− Goods subject to export control in accordance with international treaties to which Viet  Nam is a 
contracting party, to be promulgated by the MOIT for each period (export licence); and  
− Goods subj ect to the grant of automatic Export licences (the MOIT is to publish a list of goods to which 
the grant of automatic export licences applies for each period and organize the grant of such licences 
under current regulations on grant of licences) (automatic  export licence).  
Under the Ministry of Agriculture and Rural Development  
− Samples of precious and rare, endangered, wild animals and plants under Appendix I to the CITES for 
non-commercial purpose (based on the provision of the CITES, prescribing export conditions and 
guiding procedures);  
− Samples of endangered and wild animals and plants from natural resources under Appendix II or III to 
the CITES, and samples of endangered and wild animals and plants under Appendix II or III to the 
CITES from breeding, rearing, artificial tree planting (based on the provision of the CITES, prescribing 
export conditions and guiding procedures);  
− Precious and rare, wild animals and plants of groups IIA and IIB specified in the Decree No. 
32/2006/ND -CP (p rescribing conditions and guiding procedures for export);  
− Precious and rare plant varieties and livestock breeds ( guiding in details  in accordance with the 
Ordinance on Plant Varieties and the Ordinance on Livestock Breeds);  
− Ornamental, shade and old tre es from domestic natural forests (prescribing conditions and dossiers for 
export);  WT/TPR/S/ 410 • Viet Nam  
 
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 Measure/affected products  
− Firewood, charcoal or firewood originating from domestic natural forests (prescribing conditions and 
guiding procedures for export);  
− Aquatic species subject to conditional export (promulgating the list of aquatic species which may be 
normally exported; species and conditions for export of aquatic species subject to conditional export);  
− Aquatic species which may be normally exported (p romulgating the list of aquatic species which may 
be normally exported; species and conditions for export of aquatic species subject to conditional 
export); and  
− Fish breeds subject to export prohibition and conditional export (promulgating the list of pro hibited fish 
breeds for export); and prescribing conditions and guiding procedures for export.  
Under the Ministry of Information and Communication  
− Publications (books, newspapers, magazines, paintings, photos, calendars) (complying with the laws on 
publication and press).  
Under the Ministry of Culture, Sports and Tourism  
− Cinematographic works, works of performing arts and other audio -visual products, recorded on any 
material (whose contents are assessed and approved in accordance with current regulations; under 
legal ownership, possession and use);  
− Works of fine arts, photographic works (whose contents are assessed and approved in accordance with 
current regulations; under legal ownership, possession and use); and  
− Relics and antiques not unde r the state ownership or the ownership by political organizations and 
socio-political organizations (export licence; complying with regulations on cultural heritage).  
Under the Ministry of Health  
− Medicines put under special control (export licence);  
− Medicinal materials being psychotropic active ingredients, additive active ingredients, drug precursors 
(export licence);  
− Herbal ingredients under the list of rare, precious and endemic species and categories put under 
control (export licence);  
− Medicines , medicinal materials, other than herbal ingredients under the list of rare, precious and 
endemic species and categories put under control, medicines put under special control, medicinal 
materials being psychotropic active ingredients, additive active ingr edients, and drug precursors (to be 
imported as needed; certification of packing lists of imports is not required);  
− Food under management of the Ministry of Health as prescribed in laws and regulations on food safety 
referred to in declaration of conformi ty (to be imported as needed; certification of packing lists of 
imports is not required);  
− Medical equipment (to be imported as needed; certification of packing lists of imports is not required);  
− Chemicals and preparations for killing insects and bacteri a for domestic and medical uses (to be 
imported as needed; certification of packing lists of imports is not required); and  
− Cosmetics (to be imported as needed; certification of packing lists of imports is not required).  
Under the State Bank of Viet Nam 
− Raw gold (export licence).  
Source:  Decree No. 69/2018/ND -CP, issued on 15 May 2018.  
  WT/TPR/S/ 410 • Viet Nam  
 
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 Table A3. 8 Principal legislation on technical measuresa 
Title Reference  Note  
Prime Minister's Decision on the 
Organization and Operation of Viet  Nam's 
Network of Notifications, Enquiry Points, 
and Inter -Agency Committee for Technical 
Barriers to Trade   No. 46/2017/QD -TTg  
Prime Minister's Decision Approving 
National Programme on the Improvement 
of Products and Go ods Productivity and 
Quality  No. 712/QD -TTg  
Law on Standards and Technical 
Regulations  No. 68/2006/QH11 
as amended by Law 
No. 35/2018/QH14  Main legal basis for standards and 
technical regulations.  
Law Amending and Supplementing Some 
Articles concerning Planning of 37 Laws  No. 35/2018/QH14  Establishes harmonization with 
international standards, according to 
international treaties and agreements as 
a base for standards development in 
Viet Nam.  
Decree Detailing the Implementation of a 
Number of Articles of the Law on Standards 
and Technical Regulations  No. 127/2007/ND -CP  
Decree Amending a Number of Articles of 
the Decree No. 127/2007/ND -CP No. 78/2018/ND -CP Broad consultations for development 
including enterprises and consumers.  
Alignment on national standards and 
technical regulations to international 
agreements signed by Viet  Nam.  
Law on Products and Goods Quality  No. 05/2007/QH12  Goods in Group 1 are controlled on the 
basis of standards announced by 
producers, and goods in Group 2 are 
controlled on the basis of technical 
regulations established by the 
competent government agencies.  
Decree on the Implementation of a Number 
of Articles of the Law on Product Goods and 
Quality  No. 132/2008/ND -CP  
Decree Amending and Supplementing a 
Number of Articles of Decree No. 
132/2008/ND -CP No. 74/2018/ND -CP Updates criteria used for classifying 
products as capable of causing 
"unsafety".  
Provides the declaration form and 
relevant documents for imported goods 
belonging to Group 2.  
Stipulates exemptions from quality 
inspection and quality control for 
imported Group 2 goods, and specifies 
custom clearance delays for goods 
subject to post -inspection.  
Decree Providing Conditions for Conformity 
Assessment Services  No. 107/2016/ND -CP Provides the business conditions for 
conformity services and accreditation 
organizations in Viet  Nam, and for the 
organization of conformity evaluation 
regarding applicable standards and 
technical regulations.  
Decree Amending, Supplementing  and 
Annulling a Number of Regulations on 
Investment and Business Conditions in the 
Field of State Management by the MOST 
and Some Regulations on Specialized 
Examination  No. 154/2018/ND -CP Amends operation requirements of 
verification, calibration and testing 
organizations.  
Amends operation conditions of 
conformity assessment services.  
Law on Protection of Consumers' Rights  No. 59/2010/QH10  Provides, inter alia , for compensation to 
consumers for goods and services which 
do not meet tech nical standards or 
norms and for the recall of defective 
goods.  
Decree Detailing and Guiding the 
Implementation of a Number of Articles of 
the Law on Protection of Consumers' Rights  No. 99/2011/ND -CP  WT/TPR/S/ 410 • Viet Nam  
 
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 Title Reference  Note  
Decree on Labelling of Goods  No. 43/2017/ND -CP Provides details of the required size, 
content, and position of labels. Labels 
providing compulsory information must 
be in Vietnamese.  
Law on Measurement  No. 04/2011/QH13  Establishes the SI system of units as the 
legal units of measurement i n Viet  Nam.  
Decree Detailing and Guiding the 
Implementation of a Number of Articles of 
the Law on Measurement  No. 86/2012/ND -CP  
Law on Environmental Protection  No. 55/2014/QH13 
as amended by Law 
No. 35/2018/QH14  Establishes the principles and basic 
contents of national environmental 
standards.  
Law on Construction  No. 50/2014/QH13 
as amended by Law 
No. 35/2018/QH14  Requires that constructions activities 
must comply with construction rules and 
standards.  
Law on Food Safety  No. 55/2010/QH12 
as amended by Law 
No. 28/2018/QH14  Provides for rights and obligations of 
individuals and organizations to ensure 
food safety and concerning labelling.  
Decree Detailing the Implementation of a 
Number of Articles of the Law on Food 
Safety  No. 15/2018/ND -CP Sets out rights and obligations 
associated with food safety in 
production, registration, trade, 
transport, inspection, labelling, 
advertising, traceability, testing, risk 
analysis, and state management of food 
safety.  
a Regulations are a vailable in Vietnamese at the National Database on Legislation. Viewed at: 
http://vbpl.vn/pages/portal.aspx . In some cases, an English translation is available on the portal.  
Source:  Information provided by the authorities.  
  WT/TPR/S/ 410 • Viet Nam  
 
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 Table A3. 9 Basic SPS legislation  
Title Reference  Note  
Notifications and enquiry point and the WTO  
Prime Minister's Decision  No. 99/2005/QD -TTg Establishing the enquiry point and 
notification authority.  
Decision of the Minister of Agriculture 
and Rural Development  No. 1733/QD -BNN-TCCB  
 Organization and operation of the 
SPS National Office.  
Prime Minister's Decision  No. 147/2008/QD -TTg 
 National Action Plan for 
Implementation of Commitments 
under the SPS  Agreement.  
Decision of the Minister of Agriculture 
and Rural Development  No. 04/2008/QD -BNN Organization and coordination of 
activities between the Notification 
Office and the National Inquiry 
Point for SPS with a network of 
SPS notification and inquiry points 
under ministries.  
Food safety  
Law on Food Safety  No. 55/2010/QH12 issued on 17 June 2010 
(effective 1 July 2011) and amended by Law 
No. 28/2018/QH14   
Decree Detailing the Implementation 
of a Number of Articles of the Law on 
Food Safety  No. 15/2018/ND -CP Sets out rights and obligations 
associated with food safety in 
production, registration, trade, 
transport, inspection, labelling, 
advertising, traceability, testing, 
risk analysis, and state 
management of food safety.  
Decree on Organization and Operation 
of the Health Inspectorate  No. 122/2014/ND -CP Establishes the Ministry of Health 
(MOH) as the state agency 
primarily responsible for 
managing food safety of domestic 
and imported food products, and 
responsibili ties of other agencies  
MOH Circular on Maximum Residue 
Levels of Pesticide in Food  No. 50/2016/TT -BYT Promulgates the MRLs for 
pesticide in domestically produced 
and imported food.  
MOH Circular Promulgating National 
Technical Regulations on Limits of 
Chemical Pollution in Food  No. 02/2011/TT -BYT Regulates limits of fungal toxin 
and heavy metal contamination in 
food. 
MOH Circular on Safety and Hygiene 
for Food Packaging  No. 35/2015/TT -BYT National technical regulations for 
packaging made of glass, 
ceramic, porcelain, and enamel in 
direct contact with food.  
MOH Circular on Management and Use 
of Food Additives  No. 24/2019/TT -BYT Management of food additives.  
MOH Circular on Radioactive 
Contamination Limit Levels in Food  No. 17/2011/TT -BYT Regulates radioactive 
contamination in foodstuffs.  
MARD Circular on Foods Allowed to be 
Irradiated under the Management of 
the Ministry of Agriculture and Rural 
Development  No. 76/2011/TT -BNNPTNT  Publication of a list of foods 
allowed to be irradiated and their 
maximum allowable absorbed 
dose.  
MOH Circular on Micro -Biological 
Contamination in Food  No. 05/2012/TT -BYT National technical standards for 
microbiological contamination of 
food. 
MOH Circular on Traceability of Food 
Products under Management of 
Ministry of Health  No. 25/2019/TT -BYT Traceability principles and 
implementation for food, tools, 
packaging, and containers in 
direct contact with food.  
MARD Circular Regulating Food Safety 
Monitoring of Agricultural, Forestry 
and Fishery Products  No. 08/2016/TT -BNNPTNT  Procedure for food safety 
monitoring of agricultural, 
forestry, and fishery products.  
MARD Circular Regulating the 
Inspection and Certification of Food 
Safety for Exported Fishery Products  No. 48/2013/TT -BNNPTNT amended and 
supplemented by MARD Circulars 
No. 02/2017/TT -BNNPTNT and No. 16/2018/TT -
BNNPTNT  Procedure for pre -export 
inspection and certification of fish 
and fishery products.  
MARD Circular on Traceability and 
Recall of Non-Compliant Products in 
Fishery Sector  No. 03/2011/TT -BNNPTNT  Principles and procedure for 
traceability and recall of non -
compliant fishery products.  
MARD Circular on the Monitoring of 
Certain Harmful Substance Residues in 
Aquaculture Fish and Products thereof  No. 31/2015/TT -BNNPTNT  Procedure for monitoring for 
certain harmful substance 
residues in aquaculture fish and 
products thereof.  
MARD Circular on Hygiene and Food 
Monitoring in Harvest of Bivalve 
Molluscs  No. 33/2015/TT -BNNPTNT  Procedure for hygiene and food 
safety monitoring in harvest of 
bivalve molluscs.  WT/TPR/S/ 410 • Viet Nam  
 
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 Title Reference  Note  
Plant Protection    
Law on Plant Protection and 
Quarantine  No. 41/2013/QH13 issued on 25 November 2013 
(effective 1 January 2015) and amended by Law 
No. 35/2018/QH14  Regulating the plant protection 
against harmful pests, pathogens 
and diseases, plant phytosanitary 
conditions, and pesticide 
management.  
Decree Detailing a Number of Articles 
of the Law on Plant Protection and 
Quarantine  No. 116/2014/ND -CP Provides for quarantines and bans 
applied to imported and exported 
plants under the responsibility of 
the MARD. It also sets out 
procedures for declaration of 
pests and their control as well as 
funding schemes in case of plant 
pest. 
Decree on Penalties for Administrative 
Violations  No. 31/2016/ND -CP as amended by Decree 
No. 35/2019/ND -CP Decree on penalties for 
administrative violations on plant 
varieties, plant protection, and 
quarantine.  
Decree on Fertilizer Management  No. 84/2019/ND -CP Regulating recognition, testing, 
production, trading, export, 
import, quality management, 
labelling, advertisement, and use 
of fertilizers.  
Decree Prescribing Administrative 
Penalties for Violations Arising in the 
Fertilizer Sector  No. 55/2018/ND -CP Prescribing competent authorities, 
penalties and corrective measures 
to administrative violations.  
MARD Circular Promulgating HS Code 
of Goods under the Management  No. 15/2018/TT -BNNPTNT  HS codes of objects for plant 
quarantine in Viet Nam and 
banned imports for plant 
protection.  
Decision of the Minister of Agriculture 
and Rural Development Regulating 
Procedures for Plant Quarantine 
Certificates for Imported Goods  No. 48/2007/QD -BNN Plant quarantine and 
phytosanitary certification for 
imports subject to risk 
assessment.  
MARD Circular Promulgating the List of 
Articles Subject to Plant Quarantine 
and to Risk Assessment  No. 30/2014/TT -BNNPTNT  List of goods requiring plant 
quarantine and risk assessment 
before being imported to 
Viet Nam.  
MARD Circular Promulgating the List of 
Permissible and Banned Agrochemicals  No. 10/2019/TT -BNNPTNT  Provides detailed lists of 
permitted and banned active 
ingredients in agrochemicals, 
including their commercial names.  
Animal Health  
Law on Animal Health  No. 79/2015/QH13 issued on 19 June 2015 
(effective 1 July 2016) and amended by Law 
No. 21/2017/QH14  Prescribing animal disease 
prevention and treatment, 
quarantine, control of animals and 
animal products, sanitary 
inspection, a nd management of 
veterinary drugs.  
Decree Detailing a Number of Articles 
of the Law on Animal Health  No. 35/2016/ND -CP as amended by Decree 
No. 123/2018/ND -CP Establishes the organization of 
veterinary specialized agencies, 
means for prevention of animal 
diseases, temporary export and 
import bans, and GMP 
certification for veterinary drugs.  
Decree Sanctioning Administrative 
Violations on Livestock Breeds, Animal 
Feeds, and Aquatic Animals  No. 64/2018/ND -CP as amended by Decree 
No. 42/2019/ND -CP  Prescribing competent authorities, 
penalties, and corrective 
measures to administrative 
violations.  
Decree Sanctioning Administrative 
Violations on Veterinary Drugs  No. 90/2017/ND -CP as amended by Decree 
No. 04/2020/ND -CP  Prescribing competent authorities, 
penalties, and corrective 
measures to administrative 
violations.  
MARD Circular Promulgating HS code 
of Goods under the Management of 
the MARD  No. 15/2018/TT -BNNPTNT  HS codes of animals and animal 
products allowed for production, 
subject to qu arantine, allowed for 
trade and banned exports and 
imports.  
MARD Circular on Quarantine of 
Terrestrial Animals and Animal 
Products  No. 25/2016/TT -BNNPTNT as amended by MARD 
Circular No. 35/2018/TT -BNNPTNT   List of terrestrial animals and 
animal products subject to 
quarantine and procedures.  
Decision on Procedures for Animal 
Quarantine  No. 15/2006/QD -BNN Procedures for animal quarantine 
and animal hygiene.  
MARD Circular on Quarantine of 
Aquatic Animals and Aquatic Animal 
Products  No. 26/2016/TT -BNNPTNT as amended by MARD 
Circulars No. 02/2018/TT -BNNPTNT, 
No. 36/2018/TT -BNNPTNT, and No. 11/2019/TT -
BNNPTNT   List of aquatic animals and 
aquatic animal products subject 
to quarantine and procedures for 
quarantine.  WT/TPR/S/ 410 • Viet Nam  
 
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 Title Reference  Note  
MOF Circular on Customs Procedures, 
Inspection and Supervision, and 
Duties and Tax Administration of 
Imports and Exports  No. 38/2015/TT -BTC as amended by Circular 
No. 39/2018/TT -BTC Sets out procedures for customs 
clearance and responsibilities of 
owners of go ods and customs 
departments.  
MARD Decision on Animal 
Transportation  No. 49/2006/QD -BNN Guidelines for tracking animal 
transportation for imports, 
exports, and domestic transport.  
MARD Decision on the Regu lation on 
Documentation  No. 86/2005/QD -BNN Regulation on documentation for 
animal quarantine and animal 
hygiene.  
MARD Circular on the Control of 
Importing Animal and Animal Products  No. 25/2010/TT -BNNPTNT as amended by MARD 
Circular No. 11/2017/ TT-BNNPTNT  Guidelines for the control of 
imported animals and animal 
products.  
MARD Decision on Veterinary Drug 
Registration  No. 10/2006/QD -BNN Registration procedures for 
veterinary drug production, 
importation, distribution, material 
for veterinary drug, bio -products, 
micro -organisms, and chemicals 
used for veterinary purposes.  
Environmental protection  
Law on Environment Pro tection  No. 55/2014/QH13 as amended by Law No. 
35/2018/QH14  Adds provisions on prohibited 
acts, implementing environmental 
protection planning, the 
assessment report, and strategic 
environmental assessment.  
Assigns the Government to detail 
projects subject  to environmental 
impact assessment.  
Specifies environmental 
protection in the exploitation and 
use of natural resources.  
Decree on biosafety for genetically 
modified organisms, genetic 
specimens and products of genetically 
modified organisms  No. 69/2010/ND -CP as amended by Decree No. 
108/2011/ND -CP Provides for risk assessment of 
GMOs; the basis for biosafety 
certificates, and eligibility for use 
as food or animal feed; conditions 
for production, trade, import, 
export, transportation, and 
storage;  and accreditation of 
laboratories.  
Decree Detailing the Implementation 
of a Number of Articles of the Law on 
Environmental Protection  No. 19/2015/ND -CP Implements several articles, 
including environmental 
renovation and restoration, 
environmental management 
system, environmental impact 
assessment, and support to 
environmental protection.  
Implements deposits for 
renovation and restoration for 
mineral exploitation; controls  
soil environmental pollution; 
protects the handicraft village 
environment; regulates import 
and demolition of used ships; and 
implements liability insurance for 
environmental damages.  
Source:  Information provided by the authorities.  
  WT/TPR/S/ 410 • Viet Nam  
 
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 Table A3. 10 Main laws, regulations, and guidelines for IPRs  
Area Title Effectiveness date  
IP in general  Civil Code No. 91/2015/QH13 dated 24 November 2015  1 January 2017  
Criminal Code No. 100/2015/QH13 dated 27 November 2015, as 
amended and supplemented by Law No. 12/2017/QH14 dated 20 June 
2017 1 July 2016  
1 January 2018  
Law on Intellectual Property dated 29 November 2005 (Law 
No. 50/2005/QH11), as amended by Law No. 36/2009/QH12 dated 
19 June 2009 and by Law No. 42/2019/QH14 dated 14 June 2019  1 July 2006  
1 January 2010  
14 June 2019  
  Law on Technology Transfer (Law No. 07/2017/QH14) dated 19 June 
2017 1 July 2018  
Prime Minister's Decision No. 1068/QD -TTg on approving the Intellectual 
Property Strategy through 2030  22 August 2019  
Copyright  Joint Circular No. 07/2012/TTLT -BTTTT -BVHTTDL dated 19 June 2012 of 
the Ministry of Information and Communications and the Ministry of 
Culture, Sports and Tourism stip ulating duty of enterprises providing 
intermediary service in protection of copyright and related rights in the 
Internet and telecommunication networks environment  6 June 2012  
Decree No. 131/2013/ND -CP dated 16 October 2013 of the Government 
on sanctioning administrative violations of copyright and related rights  16 October 2013  
Decree No. 21/2015/ND -CP dated 14 February 2015, Regulations on 
loyalties and rewards for cinematographic, art, theatrical works and 
other forms of art performance  14 February 2015  
Prime Minister's Decision No. 1755/QD -TTg dated 8 September 2016 on 
approving the Development Strategy of Vietnamese Cultural Industry by 
2020 and with a Vision to 2030  8 September 2016  
Decision No. 4244 / QD -BVHTTDL dated 5 December 2016 of the 
Minister of Culture, Sports and Tourism approving  the scheme to raise 
public awareness and compliance with laws on copyright and related 
rights in period 2017 -2020 5 December 2016  
Prime Minister's Decision No. 88/QD -TTg dated 20 January 2017 on 
approving the scheme to improve managerial capability and effective 
implementation of law on copyright and related rights by 2020, with an 
orientation to 2025  20 January 2017  
Decree No. 22/2018/ND -CP dated 23 February 2018 on guidelines for 
certain number of articles of the Intellectual Property Law and the Law 
on Amendments to the Intellectual Property Law 2009 in terms of the 
copyright and related rights  10 April 2018  
Industrial 
property  Decree No. 103/2006/ND -CP dated 22 September 2006 on detailing and 
guiding the implementation of a number of articles of  the Law on 
Intellectual Property regarding industrial property  21 October 2006  
Decree No. 122/2010/ND -CP dated 31 December 2010 on amending and 
supplementing a number of articles of Decree No. 103/ 2006/ND -CP of 
22 September 2006  20 February 2011  
Circular No. 01/2007/TT -BKHCN dated 14 February 2007 of the MOST on 
guiding the imple mentation of the Law on Intellectual Property regarding 
industrial property, as amended and supplemented by Circular No. 
13/2010/TT -BKHCN dated 30 July 2010, Circular No. 18/2011/TT -BKHCN 
dated 22 July 2011, Circular No. 05/2013/TT -BKHCN dated 20 February 
2013, and Circular No. 16/2016/TT -BKHCN dated 30 June 2016  14 February 2007  
30 July 2010  
5 September 2011  
6 April 2013  
15 January 2018  
Decree No. 99/2013/ND -CP dated 29 August 2013 of the Government on 
Sanctioning of Administrative Violations in Industrial Property  
 29 August 2013  
Decree No. 88/2010/ND -CP dated 16 August 2010 of the Government on 
detailing and guiding a number of articles of the Law on Intellectual 
Property and the Law Amending and Supplementing a Number of Articles 
of the Law o n Intellectual Property regarding rights to plant varieties  1 October 2010  
Circular No. 16/2013/TT -BNNPTNT dated 28 February 2013 of the MARD 
on the protection of plant variety rights  13 April 2013  
Source:  Information provided by the authorities.  
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