G/STR/Q1/VNM/2  
 
2 October  2017 
(17-5264) Page: 1/2 
Working Party on State Trading Enterprises  Original: English  
 
  STATE TRADING  
REPLIES FROM VIET  NAM TO THE QUESTIONS  OF THE UNITED STATES1 
ON ITS STATE TRADING  ENTERPRISES NOTIFICA TION2 
The following communication, dated 29 September 2017, is being circulated at the request of the 
Delegation of Viet Nam . 
 
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Question 1  
 
According to document G/STR/12 (dated 13 October 2015), which provides the status of 
state trading enterprise (STE) notifications submitted by Members, Viet  Nam has not 
submitted notifications for the 2006 -08, 2008 -10, or 2010 -12 periods. Please explain 
why the April 2016 notification only provides information and data for the period 
2012 -14 and not for any earlier periods.  
 
Reply  
 
In previous periods, the Government of Viet Nam  has worked very hard to implement the 
equitization plan of sta te trading enterprises, however, the collection data of this process is 
difficult, incomplete and inaccurate due to the complexity and interruption of the process.  
 
Question 2 
 
Paragraph 72, Table 5 of the Report of the Working Party on the Accession of Vi et Nam3 
contains a list of Viet Nam's STEs. That list encompasses fifteen STEs over six product 
categories. However, Viet Nam's STE notification to this Working Party identifies only 
two STEs. Please explain why the other previously -identified STEs were no t included as 
part of the notification.  
 
Reply  
 
Up to now, most of the former state trading enterprises have been equitized and operated under 
the market economy regime. They no longer enjoy the preferential and privileges as before. In 
addition, a numbers  of other state trading enterprises have become subsidiaries (especially in the 
field of tobacco) and operated under parent company 's policies.  
 
Question 3  
 
Paragraph 1 of the Understanding on the Interpretation of Article XVII of the General 
Agreement on Tariffs and Trade 1994 (Understanding) provides a working definition of 
"state trading enterprise" as follows: "Governmental and non -governmental enterprises, 
including marketing boards, which have been granted exclusive or special rights or 
privileges, in cluding statutory or constitutional powers, in the exercise of which they 
influence through their purchases or sales the level or direction of imports or exports." 
                                                
1 G/STR /Q1/VNM/1 (dated 2 June 2016).  
2 G/STR/N/15/VNM – G/STR/N/16/VNM (dated 20 April 2016 ). 
3 WT/ACC/VNM/48 (dated 27 October 2006).  G/STR/Q1/VNM/2  
 
- 2 - 
 
  In its notification, Viet Nam has identified the Tobacco Corporation of Vietnam 
(VINATABA) a s a state trading enterprise. Please clarify whether VINATABA's 
subsidiaries – Saigon Tobacco (VINATABA Sai Gon), Thang Long Tobacco (VINATABA 
Thang Long), Bac Son Tobacco (VINATABA Bac Son), Long An Tobacco (VINATABA 
Long  An), Thanh Hoa Tobacco (VINATABA Thanh Hoa), Cuu Long Tobacco (VINATABA 
Cuu Long), and Ben Tre Tobacco – are also covered by the information and data notified 
for VINATABA. If not, please explain why (1) data was provided only for the parent 
VINATABA and not its multiple subsidiaries, or (2) these enterprises were not also 
notified.  
 
Reply  
 
According to Viet Nam 's commitments at the Report of the Working Party on the Accession of 
Viet Nam to WTO, Viet Nam  nominated VINATABA  (Vietnam Tobacco Corporation) as the sole 
enterprise performing th e state trading function in importing tobacco products.  
 
Vietnam Tobacco Import Export Company is VINATABA 's subsidiary (operating dependently on 
VINATABA ). The company is responsible for importing and exporting tobacco products under the 
authorization of VINATABA . Data in the Report is the imports of cigarette and cigar of Vietnam 
Tobacco Import Export Company. It is also the import data of VINATABA , the parent company. 
This data is the only official imports of cigarette and cigar f or the whole tobacco ind ustry, serving 
the entire domestic consumption.  
 
Companies such as Saigon Tobacco ( VINATABA  Sai Gon), Thang Long Tobacco (VINATABA 
Thang  Long), Bac Son Tobacco (VINATABA Bac Son), Long An Tobacco (VINATABA Long An), 
Thanh Hoa Tobacco (VINATABA Thanh) Cuu L ong Tobacco (VINATABA Cuu Long), and Ben Tre 
Tobacco are all companies of VINATABA , however, they are legal entities and operate 
independently with the parent company. VINATABA  does not authorize these companies to 
perform the state commercial function of importing cigarettes and cigars, therefore, they are not 
allowed to import cigarettes, cigars and show no data in importing cigarettes and cigars.  
 
Question 4  
 
In its notification, Viet Nam identified Books and Newspapers Import Export Company 
(XUNHASABA) as a state trading enterprise. In subpart 2.3, Item G – "Whether 
long-term contracts are negotiated by the state trading enterprise/Whether the state 
trading enterprise is used to fulfil contractual obligations entered into by the 
government" and Item H – "Brief description of market structure", Viet Nam reported 
"not available". Please explain why such information is not available and when it will be 
provided to the Working Party.  
 
Reply  
 
XUNHAXABA does not participate in negotiating long -term contracts an d also is not appointed to 
perform contractual obligations for the government.  
 
Brief description of market structure: In addition to XUNHASABA, only embassies, international 
organizations, diplomatic missions in Viet Nam  and Ministry of Foreign Affairs ha ve the right to 
import appropriate products on the basis of notifications to relevant authorities of the import 
plans, but not for commercial purposes.  
 
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