G/C/W/755  
G/STR/Q1/VNM/5  
 
31 August 2018  
(18-5434) Page: 1/5 
Council for Trade in Goods  
Working Party on State Trading Enterprises  Original: English  
 
STATE TRADING  
NOTIFICATION OF VIET  NAM IN RESPONSE TO THE UNITED STATES' C OUNTER -NOTIFICATION  
OF VIET NAM'S  STATE TRADING ENTER PRISES PURSUANT TO P ARAGRAPH 4 OF THE  
UNDERSTANDING ON THE  INTERPRETATION OF A RTICLE XVII  
The following communication, dated 27 August 2018, is being circulated at the request of the 
Delegation of Viet Nam.  
 
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The following notification is m ade pursuant to Article XVII:4 (a) of the GATT 1994 and Paragraph 1 
of the Understanding o n the Interpretation of Article XVII of GATT 1994, and to respond to the 
information provided in the counter -notification of the United States in document 
G/STR/Q1/VNM /4 on the State Trading Enterprises of Viet Nam.  
 
A. GENERAL INFORMATION ABOUT VIETNAMESE  ENTERPRISES MENTIONED IN DOCUMENT 
G/STR/Q1/VNM /4   
 
In the Report of the Working Party on the Accession of Viet Nam to the WTO, entities designated 
as the State Trading Enterprises entitled to exclusive or special privileges include:  
 
1. Viet Nam Oil and  Gas Corporation (PETROVIETNAM)  
2. Petrolimex  
3. Petec  
4. Petechim  
5. Saigon Petro  
6. PetroMekong  
7. Airlines Petrol & Gasoline Company (Vinapco)  
8. Petroleum Processing and Trading Company  
9. Marine Supply  
10. Military Petroleum and Gas Corporation  
11. Dong Thap Petroleum Import -Export Company  
12. Airlines Import Export Corporation (Airimex)  
13. Viet Nam Films Import/Export and Distribution Company (FafilmVietnam)  
14. Books and Newspapers Import Export Company (Xunhasaba)  
15. Viet Nam National Tobacco Corporation  
 
Of the 15 enterprises mentioned above, four companies, including Vinapco, Airimex, Petrolimex 
and PETROVIETNAM, were mentioned in the United States ' counter -notification, and the 
United States requested Viet Nam to p rovide information on the purposes, functioning and 
operations of these enterprises in the import and export of certain goods which the United States 
considers to be state trading. Viet Nam affirms that all these enterprises are currently operating 
under t he market mechanism, have equal rights and obligations as all other import -export 
enterprises in the same field, and not being granted any exclusive or special privileges from the 
Government of Viet Nam to conduct their import and export activities. In add ition, Vinapco and 
Airimex have also been transformed from state -owned enterprises into joint -stock enterprises, 
operating and competing in a fair business environment with other enterprises. Therefore, 
according to WTO rules, these 4 enterprises are no lo nger considered as state trading enterprises 
and Viet Nam is not obliged to notify them to the WTO.  G/C/W/755 • G/STR/Q1/VNM/5  
 
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For the remaining enterprises mentioned in the United States ' counter -notification (including 
Vinafood I, Vinafood II, PV Oil, Vinacomin and SJC) but not in the List of State Trading Enterprises 
in the Report of the Working Party on the Accession of Viet Nam to WTO, in accordance with 
current laws, the Government of  Viet Nam does not grant any exclusive or special privileges for 
these enterprises to import and export goods subject to the state trading. Therefore, based on 
WTO rules, these enterprises are not considered as state trading enterprises and Viet Nam is not  
obliged to notify them to the WTO.  
 
For further clarification of the above -mentioned view of Viet Nam, detailed information on the 
operating mechanism of the enterprises listed in the United States ' counter -notification is provided 
in Section B below.  
 
In addition, please note that, with the view that these enterprises are not state trading 
enterprises, specific information and statistics on import -export turnovers, selling prices, domestic 
production levels... of the above enterprises for reference purp oses are not subject to notification 
to the WTO.  
 
B. DETAILED INFORMATION ON THE OPERATING MECHANISM OF VIETNAMESE ENTERPRISES 
MENTIONED IN DOCUMENT G/STR/Q1/VNM /4 OF THE UNITED STATES  
 
I. NORTHERN FOOD CORPORATION (VINAFOOD I)  
 
1.  Type and Functioning of Vinafood I  
 
Vinafood I is one -member limited liability company with 100%  of the charter capital invested by 
the Government of Viet Nam and operates in accordance with the Law on Enterprises and other 
relevant laws.  
 
Regulations related to the organizat ion and operation of Vinafood I  are stipulated in the Decree 
No. 01/2018/ND -CP of the Government dated 3 January 2018 on the Statute on Organization and 
Operation of the Northern Food Corporation.  
 
Accordingly, Vinafood I is currently a member of the Viet nam Food Association, and competing 
equally with other enterprises under the laws of Viet Nam. It is self -responsible for the results of 
the business and do es business in a level playing field with other enterprises.  
 
2.  Rice Exportation of Vinafood I  
 
Currently, any enterprises that satisfy conditions under the Decree No. 109/2010/ND -CP of the 
Government dated 4 November  2010 on rice exportation and the Circular No. 44/2010/TT - BCT of 
the Ministry of Industry and Trade dated 31 December 2010 regulating a number of provisions of 
the Decree No. 109/2010/ND -CP dated 4 November 2010 of the Government on rice exportation, 
are allowed to export rice.  
 
Accordingly, Vinafood I is  currently not granted any exclusive or special privileges from the 
Government in exporting rice and food. The quantity and price of rice exported annually by 
Vinafood I are determined on the basis of the international market demands and domestic supply.   
 
The Notices No. 78/TB -VPCP of the Government Office dated 9 March 2009 and No. 5159/VPCP -
KTN of the Government Office dated 7 August 2008 on solutions to promote the purchase and sale 
of summer rice harvested in 2008 in the Mekong delta are not legal norm ative documents 
stipulating the Government to grant exclusive or special  privileges for Vinafood I in importing and 
exporting rice, and have no legal effect in the period of notification.   
 
II. SOUTHERN FOOD CORPORATION (VINAFOOD II)  
 
1. Type and Functio ning of Vinafood II  
 
Vinafood II is a 100% state -owned company, which is organized in the form of a one -member 
limited liability company and operates in accordance with the Law on Enterprises and other 
relevant laws.  G/C/W/755 • G/STR/Q1/VNM/5  
 
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Regulations related to the organization and operation of Vinafood II  are stipulated in the 
Government Decree No. 10/2014/ND -CP dated 13 February  2014 on the Statute on organization 
and operation of the Southern Food Corporation.  
 
Accordingly, Vinafood II is currently a member of the Vietnam Food Association, and competing 
equally with other enterprises under the laws of Viet Nam. It is self -responsible for the results of 
the business and do es business in a level playing field with other enterprise.   
 
2.  Rice Exportation of Vinafood II  
 
Currently, any enterprises that satisfy conditions under the Decree No. 109/2010/ND -CP of the 
Government dated 4 November  2010 on rice exportation and the Circular No. 44/2010/TT - BCT of 
the Minist ry of Industry and Trade dated 31 December  2010 regulating a number of provisions of 
the Decree No. 109/2010/ND -CP dated 4 November 2010 of the Government on rice exportation, 
are allowed to export rice.  
 
Accordingly, Vinafood I is currently not granted any exclusive or special p rivileges from the 
Government in exporting rice and food. The export quantity and price of Vinafood II are 
determined on the basis of market factors such as supply and demand balance, crop yield, stocks, 
rice prices in international markets, etc.  
 
Regardi ng to the export of rice to the Philippines, all Vietnamese exporters are allowed to access 
this market through free bidding mechanism.  
 
The Notice No. 78/TB -VPCP of the Government Office dated 9 March  2009 and No. 5159/VPCP -KTN 
of the Government Office d ated 7 August 2008 on solutions to promote the purchase and sale of 
summer rice harvested in 2008 in the Mekong delta are not legal normative documents stipulating 
the Government to grant exclusive or special  privileges to Vinafood II in importing and expo rting 
rice, and have no legal effect in the period of notification.   
  
III. VIET NAM OIL AND GAS CORPORATION (PETROVIETNAM OR PVN) AND 
PETROVIETNAM OIL CORPORATION (PV OIL)  
 
1. Vietnam Oil and Gas Corporation (PVN)  
 
According to the Law No. 10/2008/QH12 2008 on the amendment of some articles of the 
Petroleum Law 1993, PVN's business activities in the oil and gas sector are regulated as follows: 
PVN "is a state -owned company which conducts oil and gas activities and si gns petroleum 
contracts with organizations and individuals conducting oil and gas activities in compliance with 
laws". Accordingly, the Government of Viet Nam has no longer granted any exclusive or special 
privileges for PVN in importing and exporting crud e oil. The export of crude oil is carried out under 
oil sale agreements between PVN and other oil owners (including foreign oil owners). Therefore, 
PVN is no longer considered as a state trading enterprise under WTO rules.  
 
2. PetroVietnam Oil Corporation  (PV Oil)  
 
PV Oil is an enterprise that supplies crude oil buying/selling services (including entrust 
buying/selling and buying/selling agent of crude oil) and gets entrust fees or agent commissions as 
agreed by the oil owners and consumers. PV Oil has not  been granted exclusive or special 
privileges by the Government of Viet Nam in importing and exporting crude oil in accordance with 
the Law on Petroleum and other amended documents. Therefore, PV Oil is not a state trading 
enterprise under WTO rules.  
 
PV Oil is not regulated by the Law on Petroleum and the Law on Amendment of a number of 
articles of the Law on Petroleum No. 19/2000/QH10 2010.  
 G/C/W/755 • G/STR/Q1/VNM/5  
 
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  IV. VIET NAM NATIONAL  COAL - MINERAL INDUSTRIES HOLDING CORPORATION 
LIMITED (TKV)  
 
1. Type and Functioning of TK V 
 
TKV is a one -member limited liability company with 100% charter capital invested by the 
Government of Viet Nam. It operates business activities in accordance with the Law on Enterprises 
and other relevant laws.  
 
2. Coal Importation and Exportation of TK V 
 
In fact, TKV has not been granted any exclusive or special privileges from the Government of 
Viet Nam in importing or exporting coal. Accordingly, the export quantity as well as prices of coal 
products are based on factors of domestic and international markets. Therefore, TKV is not a state 
trading enterprise under WTO rules.  
 
Document No. 346/TB -VPCP of the Government Office dated 26 August 2014 on Notification of 
conclusions of the Deputy Prime Minister Hoang Trung Hai at the meeting on coal importatio n 
performance is not a legal normative document to grant exclusive or special privileges to TKV in 
importing or exporting coal.  
 
V. SAIGON JEWELRY HOLDING COMPANY (SJC)  
 
1. Type and Functioning of SJC  
 
SJC was transformed from a parent -subsidiary model in to a one -member limited liability company 
in 2010. Accordingly, SJC is an independent enterprise which conducts business activities under 
the Certificate of business registration, the Law on Enterprises and other relevant legal documents. 
SJC has not been granted any exclusive or special privileges from the Government in its business 
activities.  
 
2. Gold Exportation and Importation  
 
The Decree No.  24/2012/ND -CP dated 3 April 2012 of the Government on management of gold 
trading stipulates that "the Government monopolizes the production of gold bars, the export of 
material gold and the import of material gold to produce gold bars ". 
 
The Decision No. 1623/QD -NHNN of the State Bank of Viet N am dated 23 August 2012 on the 
organization and management of gold bars production of the State Bank of Viet Nam stipulates 
that Sai Gon Jewelry Holding Company (SJC) has been assigned by the State Bank of Viet Nam to 
process gold bars on the basis of the contract bet ween the State Bank of Viet Nam and SJC.  
 
Accordingly, SJC does not have any exclusive or special privileges in importing and exporting gold 
bars. It only processes gold bars for the State Bank of Viet Nam. The State Bank of Viet Nam is 
the only entity in charge of importing and exporting gold bars in Viet Nam. Therefore, SJC is not a 
state trading enterprise under WTO rules.  
 
VI.  VIETNAM AIR PETROL COMPANY LIMITED (SKYPEC)  
 
1. Type and Functioning of Skypec  
 
SKYPEC is an enterprise with 100% charter capit al owned by Vietnam Airlines Corporation 
(Vietnam Airlines). Since 2015, Vietnam Airlines has started to operate under the model of a joint 
stock company. In October 2016, it completed all legal procedures in transforming from a state 
owned enterprise into  a joint stock company, and officially became a joint stock company. SKYPEC 
operates in export, import and supply of aviation fuel in Vietnamese airports to Vietnamese airlines 
and other international ones with flights to Viet Nam.  
 G/C/W/755 • G/STR/Q1/VNM/5  
 
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  2. Aviation Fuel Expor tation and Importation  
 
In fact, SKYPEC operates in a fair, competitive business environment and is not granted any 
exclusive or special privileges by the Government in its business. Therefore, SKYPEC is not a state 
trading enterprise under the WTO rules.  
 
The Decision 1139/QD -TTg of Prime Minister dated 31 July 2009 approving the plan to develop a 
stockholding system for crude oil and petroleum products of Viet Nam until 2015 with a vision 
toward 2025 is not a legal normative document stipulating the Gover nment to provide SKYPEC 
with exclusive or special privileges in exporting and importing aviation fuel.  
 
VII.  GENERAL AVIATION IMPORT EXPORT JOINT STOCK COMPANY (AIRIMEX)  
 
Airimex is a joint stock company with a partial charter capital owned by Vietnam Air lines. In 2006, 
the company was transformed from state -owned into joint -stock entity in accordance with Decision 
No. 3892/QD -BGTVT dated 17 October 2005.  
 
Airimex is not granted any exclusive or special privileges by the Government in importing and 
exporti ng goods, and fairly compete with other enterprises. Therefore, Airimex is not a state 
trading enterprise under WTO rules.  
 
VIII.  VIETNAM NATIONAL PETROLEUM GROUP (PETROLIMEX)  
 
1.  Type and Functioning of Petrolimex  
 
Petrolimex was formed by the equitizati on and restructuring of Vietnam Petroleum Corporation 
under the Decision No. 828/QD -TTg dated 31 May 2011 of the Prime Minister, and a public entity 
in accordance with Document No. 2946/UBCK -QLPH dated 17 August 2012 of the State Securities 
Committee.  
 
Petrolimex's main business is trading petroleum, refining petrol and gasoline, and investing 
capitals in other enterprises to conduct business in the fields of petroleum and other enterprises in 
accordance with laws.  
 
Currently, Petrolimex is not granted a ny exclusive or special privileges from the Government in 
importing petroleum (Petrolimex does not export petroleum). Therefore, it is no longer considered 
a state trading enterprise under the WTO rules.  
 
Petrolimex is not included in the list of enterpris es regulated by Decision No. 58/2016/QD -TTg 
dated 28 December  2016 of the Prime Minister on criteria for classification of state -owned 
enterprises, enterprises with state capital and the list of state -owned enterprises to be 
restructured for 2016 -2020.  
 
2.  Petroleum Importation and Exportation  
 
Trading in petroleum is a conditional business in Viet Nam. The conditions are applied equally to all 
enterprises under the Decree 83/2014/ND -CP dated 3 September 2014 of the Government on 
petroleum trading. Petrol imex is not granted any exclusive or special privileges in petroleum 
business. Petrolimex's petroleum import transactions are made on the basis of market supply - 
demand and comply with the Decree No. 83/2014/ND -CP like all other petroleum enterprises in 
Viet Nam.  
 
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