G/SCM/Q2/VNM/1  
 
26 July 2013  
(13-3994)  Page: 1/3  
Committee on Subsidies and Countervailing Measures  Original: English  
 
SUBSIDIES 
QUESTIONS POSED BY UNITED STATES REGARDING THE NEW 
AND FULL NOTIFICATION OF VIET NAM1 
The following communication, dated 24 July 2013, is being circulated at the request of the 
Delegation of the United States.  
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  General questions 
In the Report of the Working Party on the Accession of Viet Nam (para. 288), Viet Nam committed 
to provide notice of the measures terminating certain prohibited subsidy programs. These programs, in particular, included the program that provided investment incentives contingent upon 
export performance for domestic businesses and the program that provided investment incentives 
contingent upon export performance for foreign-invested enterprises. Has Viet Nam provided this notice? If not, it is encouraged to do so. 
 
We note that the reporting period in Viet Nam's notification is 2005-2007. What are Viet Nam's plans to get up to date in meeting its subsidy notification obligation?  
Regarding any programs for which the duration of the subsidy is shown as ending in 
December 2007, please clarify whether this indicates termination of the program or simply a reflection of the end of the reporting period. 
 
Page 5, Program 2 – Support for the implemen tation of projects manufacturing priority 
industrial products. 
 
Please clarify whether the "priority industrial products" eligible for support under this program include any products or industrial sectors other than those identified under Programme II of document WT/ACC/VNM/13/Add.2, and provide a list identifying the other products or industrial 
sectors. (In the future, it would be helpful if the information on to whom and how the subsidy is 
provided is given in the narrative of the subsidy notification under review, rather than by referencing an earlier document.)  
 
Page 6, Program 3 – Investment incentiv es for domestic exporting enterprises. 
 
Please identify the law, regulation or measure by which preferences under these incentives were 
eliminated as of 25 October 2006, or otherwise explain the official mechanism by which these incentives were eliminated.  
Please clarify what was eliminated: the various incentives themselves (i.e., the land-use tax, 
corporate income tax and import duty exemptio ns or reductions) or only the export ratio 
thresholds. 
 
Given that some of these incentives were originally granted for periods of up to 15 years, explain how the 2006 elimination of preferences affected th e benefits to companies that were granted a 
multi-year period of benefits extending beyond 2006. 
                                               
1 G/SCM/N/155/VNM (13 March 2013).   G/SCM/Q2/VNM/1 
 
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  Page 13, Program 5 – Investment incentives for foreign-invested enterprises contingent 
upon export performance.  Please identify the law, regulation or measure by which the incentives under this program were 
eliminated as of 25 October 2006 (preferential corporate income tax) and 1 January 2006 
(preferential import duty rate), or otherwise explain the official mechanism(s) by which these incentives were eliminated. 
 
Please clarify what was eliminated: the various in centives themselves (i.e., the preferential tax 
and duty rates) or only the export performance thresholds.  
Given that these incentives were originally granted for periods of up to 15 years, explain how the 
2006 elimination of these preferences affected th e benefits to companies that were granted a 
multi-year period of benefits extending beyond 2006. 
 
Page 18, Program 7 – Preferential investment  credit for development contingent upon 
export criteria. 
 
Please identify the dates on which the short- term and state export credits, and the post-
investment interest rate support, were terminated. 
 
Please clarify what was terminated: the various incentives themselves (i.e., the short-term and 
state export credits and the post-investment intere st rate support) or only the export performance 
thresholds. 
 
Please identify the law, regulation or measure by which these incentives were eliminated, or otherwise explain the official mechanism by which these incentives were eliminated. 
 
Page 21, Program 8 – Preferential developmen t credit for investment contingent upon 
localization ratios.  
Please identify the law, regulation or measure by which the incentives under this program were 
terminated as of 1 January 2006 (investment loans) and 11 January 2007 (post-investment interest rate support and investment credit guarantee), or otherwise explain the official 
mechanism(s) by which these incentives were terminated. 
 Please clarify what was terminated: the incentives  themselves (i.e., the loans and guarantee and 
the interest rate support) or only the localization ratios.  
 Page 27, Program 10 – Export Promotion (Upda ting Program XII of the SCM Notification 
2003-2004). 
 
Please identify the law, regulation or measure by which the incentives under this program were 
eliminated as of 1 January 2007, or otherwise ex plain the official mechanism(s) by which these 
incentives were eliminated. 
 Page 28, Program 11 – Trade Promotion (Upd ating Program XIII of the SCM Notification 
2003-2004). 
 Please identify the law, regulation or measure by which the incentives under this program were 
eliminated as of 1 January 2006, or otherwise ex plain the official mechanism(s) by which these 
incentives were eliminated. 
 Page 30, Program 13 – Support for the shipbuilding industry. 
 
Please identify the "specific conditions" under which an enterprise qualifies for the 15%-20% reduced income tax rates under this program. 
 
Wind power support  According to public press reports, the Vietnamese  government will provide financial support to 
wind power projects. According to the press report, this program became effective on G/SCM/Q2/VNM/1 
 
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  20 August 2011. Under this government decision, wi nd power projects will benefit with loans at 
low interest rates, free tariffs on equipment and material imports, and a reduction on corporate income taxes. Please confirm the date this program/policy was implemented, describe the legal authority under which the program was established and the types of assistance provided, and 
identify the government entities that will administer this program. 
 Textile and apparel subsidies 
 
We note that the legal measures listed below relating to the textile and apparel industries appear to have been implemented since Viet Nam's accession to the WTO. These measures appear to target export growth and describe potential financ ial support to textile and apparel industry. For 
each measure or policy listed below, please describe the policy objectives and the nature of any 
subsidy(ies) provided under these programs, and iden tify all other measures (laws, decisions, etc.) 
related to the implementation of these programs. 
 
Decision No. 36/2008/QD-TTg (10 March 2008), Approving the Strategy on Development of Viet Nam's Textile and Garment Industry to 2015, and Orientation Towards 2020 
 
Decision No. 42/2008/QD-BCT (19 November 2008),  Approval of Plans to Develop the Garment 
and Textile Industry to 2015, and Orientation Towards 2020  
Decision No. 12/2011/QD-TTg (24 February 2011), Policy on Developing Support for a Number of 
Industries  
 
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