G/SCM/Q2/VNM/5  
 
28 January 2016  
(16-0582)  Page: 1/3  
Committee on Subsidies and Countervailing Measures  Original: English  
 
SUBSIDIES 
QUESTIONS POSED BY THE UN ITED STATES REGARDING 
THE NEW AND FULL NOTIFICATION OF VIET NAM1 
The following communication, dated 25 January 2016, is being circulated at the request of the 
Delegation of the United States.  
_______________ 
  General 
We note that Viet Nam's previous notification covered the years 2005-2007
2, while the current 
notification (N/253) covers 2011-2013, leaving a gap for 2008-2010. Could Viet Nam explain how and when it intends to address the period covering 2008-2010? 
Programs not included in the notification  
We respectfully request that Viet Nam consider notifying each of the programs or measures 
described below or explain why the program or measure is not subject to the notification 
requirement under Article 25 of the Subsidies Agreement.  
1. Law on High Technologies  
Viet Nam's notification did not include the Law on High Technologies  that provides for a number of 
incentives for eligible enterprises including "the highest land, tax and other incentives" and the 
allocation of "state budget funds" (Article 4); "supports from the national hi-tech development 
program" (Article 10); and the creation of a "national hi-tech venture investment fund" (Article 25). 
2. Viet Nam Development Bank (VDB) Export Credit 
While Viet Nam's previous notification covered VD B export credit among the notified programs, we 
note that Viet Nam's latest notification does not. Public information indicates that Viet Nam 
provides export credit programs through the VDB pursuant to, inter alia , Decree 
No. 75/2011/ND-CP (30 August 2011). 
3. Provincial Export Promotion Activities 
In response to questions posed by Members during Viet Nam's last Trade Policy Review3, Viet Nam 
indicated that, following the repeal of the Export Promotion Fund, export promotion activities were 
to be directly funded by the provinces instea d ,  p u r s u a n t  t o  t h e  p r o v i s i o n s  o f  D e c i s i o n  
No. 72/2010/QD-TTg (15 November 2010). We note that the latest notification does not contain 
information with regard to current export promotion programs, either at the national or provincial 
levels. 
                                               
1 G/SCM/N/253/VNM, dated 25 September 2015. ("N/253") 
2 G/SCM/N/155/VNM, dated 13 March 2013. ("N/155") 
3 WT/TPR/M/287/Add.1, dated 12 November 2013. ("TPR/287") G/SCM/Q2/VNM/5 
 
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  4. Policy to Support Certain Industries 
Viet Nam's responses in response to questions during its Trade Policy Review indicated that under 
Decision No. 12/2011/QD-TTg (24 February 2011),  Viet Nam set out policies to support such 
industry sectors as, inter alia , electronics and informatics, automobile manufacture and assembly, 
textiles and garments, and high-technology", none of which appear to be covered by Viet Nam's 
latest notification. 
5. Regulations on Industrial Zones, Export Processing Zones, and Economic Zones 
Viet Nam's notification did not include the Regulations on Industrial Zones, Export Processing 
Zones and Economic Zones,  (29/2008/ND-CP) that provides for a number of incentives for eligible 
enterprises including "the best incentives in accordance with the law on corporate income tax" (Article 16); "fifty (50) per cent reduction of income tax" for "employees working in economic 
zones" (Article 16); and the application of "Any expenses for investment in construction, operation 
or lease of apartments and social infrastructure facilities servicing employees working in industrial zones and economic zones" as tax deductible (Article 16). In addition, "Investment projects in 
important technical and social infrastructure of economic zones shall be funded from the 
development investment capital of the local budget and targeted support capital of the central budget" (Article 17). 
6. Development Support for Key Mechanical Products for the Period 2009-2015 
Viet Nam's notification did not include the Mechanism for Development Support for Key Mechanical 
Products and a List of Key Mechanical In vestment Projects for the Period 2009-2015 , 
(10/2009/QD-TTg) that provides for a number of incentives for eligible enterprises including 
investment credit from the Viet Nam Development Bank (VDB) "for up to 85% of the total 
investment of the project" (Article 1); "support fr om the National Assistance Fund for Scientific and 
Technological Development to cover expenses for technology transfer, purchase of design 
copyright and software, hiring of foreign experts and training of human resources" (Article 1); 
state funds for "studying key mechanical products" (Article 1); "Ceiling import tax rates" for certain imported products (Article 2); and an "import tax rate of 0% or the lowest import tax rate" 
for supplies and equipment imported for the manufacture of key mechanical products (Article 2). 
7. Industrial Promotion 
Viet Nam's notification did not include the Decree  on Industrial Promotion (45/2012/ND-CP) that 
provides for a number of incentives for eligible enterprises including funding for "industrial 
promotion activities" (Article 11) from the state and local budget.  
8. A Number of Fisheries Development Policies 
Viet Nam's notification did not include the 2014 Decree on  A Number of Fisheries Development 
Policies (67/2014/ND-CP), and related implementing documents, that "prescribe investment, credit 
and insurance policies; tax incentives and a number of other policies for fisheries development" (Article 1). The state budget will support, inter alia, construction funds for "infrastructure items in 
aquaculture zones" and "concentrated breeding zo nes" (Article 3); insurance premiums; and an 
"exemption from license tax for organizations, households or individuals engaged in aquaculture, fishing or fishery logistics services" and "from aquaculture land or water surface rental" (Article 6).  
Program duration reported in previous notifications  
1. For the programs covered by Viet Nam's ea rlier notification for which the duration was 
reported as ending in 2007
4, and for which Viet Nam recently clarified that such date was the end 
of the reporting period and not an indication of  the termination of the subsidy effective 2007, 
please provide an update of the status of the prog ram or measure. Specifically, please indicate the 
current status of the following programs:  
                                               
4 G/SCM/N/155/VNM, dated 13 March 2013. ("N/155") G/SCM/Q2/VNM/5 
 
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  a) Support for the Shipbuilding Industry (Program XIII); 
b) Assistance for Commercial Development in Mountainous, Island and Ethnic Minority 
Areas (Program XIV). 
2. For the programs covered by Viet Nam's firs t notification for which the duration of this 
subsidy is not indicated, we respectfully request that Viet Nam clarify if these programs are still 
active, and whether or not enterprises that were e ligible for these benefits can continue to receive 
them according to current law: 
a) Support for Mechanical Products (Program XII); 
b) Assistance to Enterprises Facing Difficult ies Due to Objective Reasons (Program XV). 
3. For the programs covered by Viet Nam's most recent notification for which the duration was 
reported as "2011-2013"5, we respectfully request that Viet Nam clarify whether this indicates 
termination of the program or simply a reflection of the end of the reporting period. Specifically, 
please indicate the current status of  the following programs or measures: 
a) Preferential Import Tariff Rates (Program I);  
b) Incentives on Corporate Income Tax (Program II); 
c) Incentives on Non-Agricultural Land Use Tax (Program III);  
d) Credit Program  for Doing Traders Doing Business in Disadvantaged Regions 
(Program IV);  
e) Credit Program  for Households Manufacturing or Doing Business in Disadvantaged 
Regions (Program V).  
4. Investment incentives for the following programs or measures were reported as eliminated 
and/or phased out according to Viet Nam's first notification; however, it appears that the 2014 
Law on Investment  and 2008 Law on Corporate Income Tax  continue to provide similar incentives 
for eligible enterprises such as preferential corporate income tax, reductions in land rental, and 
preferential import duties for equipment and machinery imported to form fixed assets. We 
respectfully request that Viet Nam consider clarifying if these programs are still active, and whether or not enterprises that were eligible for these benefits can continue to receive them 
according to current law: 
a) Other Investment Incentives for Domestic Businesses (Program IV);  
b) Other Investment Incentives for Foreig n-Invested Enterprises (Program VI). 
 
__________  
                                               
5 G/SCM/N/253/VNM, dated 25 September 2015. ("N/253")