RESTRICTED  
  
WT/TPR/S/287  
13 August 2013  
(13-4275)  Page: 1/183  
Trade Policy Review Body   
 
TRADE POLICY REVIEW 
REPORT BY THE SECRETARIAT 
VIET NAM 
This report, prepared for the first Trade Policy Revi ew of Viet Nam, has been drawn up by the WTO 
Secretariat on its own responsibility. The Secr etariat has, as required by the Agreement 
establishing the Trade Policy Review Mech anism (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 report may be addressed to Sergios Stamnas 
(tel: 022 739 5382), Cato Adrian (tel: 022 739 5469), and John Finn (tel: 022 739 5081). 
 Document WT/TPR/G/287 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/287 • Viet Nam 
 
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  CONTENTS 
SUMMARY ....................................................................................................................... . 8 
Economic Envi ronment ...................................................................................................... 8  
Trade Policy Fr amework ..................................................................................................... 9  
Trade Policy Developments ................................................................................................. 9  
Sectoral Policy Developments ............................................................................................ 11 
Outlook ....................................................................................................................... ... 12 
1   ECONOMIC ENVIRONMENT ........................................................................................ 13  
1.1   Overview ................................................................................................................. 13 
1.2   Recent Econ omic Perf ormance .................................................................................... 14 
1.3   Balance of Payments ................................................................................................. 19 
1.4   Key Policy Developments ........................................................................................... 20 
1.4.1   Macroeconomic policies ........................................................................................... 20 
1.4.1.1   Monetary and exchange rate policies ...................................................................... 20 
1.4.1.2   Fiscal policies .....................................................................................................  21 
1.4.2   Structural policies .................................................................................................. 21 
1.4.2.1   Tax reform ......................................................................................................... 22 
1.4.2.2   Privatization .......................................................................................................  23 
1.4.2.3   Competition policy .............................................................................................. 23 
1.4.2.4   Corporate governance  and anti-corru ption action ..................................................... 24 
1.4.2.5   Labour market policies ......................................................................................... 25 
1.5   Composition an d Pattern of  Trade ............................................................................... 25 
1.6   Trends and Patterns in Foreign Direct Investment ......................................................... 27 
2   TRADE POLICY REGIME: FR AMEWORK AND OB JECTIVES .......................................... 31  
2.1   Genera l Framework .................................................................................................. 31 
2.2   Trade Poli cy Objectives ............................................................................................. 33 
2.3   Trade Agreements and Arrangements .......................................................................... 34 
2.3.1   WTO ................................................................................................................... . 34 
2.3.2   Association of Sout heast Asian Nati ons (ASE AN)......................................................... 36 
2.3.3   Other regional and bilateral agreements .................................................................... 37 
2.3.4   Other trade agreements .......................................................................................... 38 
2.4   Investme nt regime ................................................................................................... 39 
3   TRADE POLICIES AND PRACTICES BY MEASURE ........................................................ 42  
3.1   Introduction ............................................................................................................. 42 
3.2   Measures Direct ly Affectin g Imports ............................................................................ 43 
3.2.1   Import procedur es and requirements ........................................................................ 43 
3.2.2   Ordinary customs du ties ......................................................................................... 44 
3.2.3   Other duti es and charges ........................................................................................ 47 
3.2.4   Tariff-rate quot as, tariff ex emptions ......................................................................... 47 
3.2.5   Fees and charges for services rendered ..................................................................... 49 WT/TPR/S/287 • Viet Nam 
 
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  3.2.6   Inte rnal ta xes ....................................................................................................... 50 
3.2.7   Import prohibitions, restrictions, an d licensing ........................................................... 53 
3.2.8   Custom s valuation ................................................................................................. 57 
3.2.9   Rules of origin .......................................................................................................  58 
3.2.10   Anti-dumping, countervai ling duty, and safe guard regimes......................................... 58 
3.3   Measures Directly Affecting Exports ............................................................................. 60 
3.3.1   Export procedur es and requirements ........................................................................ 60 
3.3.2   Export taxes, fees, and charges for services rendered, and internal taxes on 
exports ....................................................................................................................... ... 60 
3.3.3   Export restrictions ................................................................................................. 62 
3.3.4   Export subsidies, finance, and guarantees ................................................................. 63 
3.3.5   Export promotion and marketing assistance ............................................................... 63 
3.4   Measures Affectin g Production and Trade ..................................................................... 64 
3.4.1   Subsidies .............................................................................................................. 64 
3.4.2   Standards, technical requir ements, and confor mity asse ssment .................................... 66 
3.4.2.1   Technical barriers to trade .................................................................................... 66 
3.4.2.2   Sanitary and Phytosanitary Measures ..................................................................... 71 
3.4.2.2.1   Quaranti ne ...................................................................................................... 76 
3.4.3   Trade-related investment measures .......................................................................... 77 
3.4.4   Free zones and sp ecial econom ic areas ..................................................................... 77 
3.4.5   Transi t ............................................................................................................... .. 78 
3.4.6   Governme nt procurement ....................................................................................... 78 
3.4.7   State trading, state-owned enterp rises, and privatizat ion/equitization ........................... 80 
3.4.8   Competition policy ................................................................................................. 83 
3.4.9   Pric e contro ls ........................................................................................................  84 
3.4.10   Trade-related intell ectual proper ty regime ............................................................... 86 
3.4.10.1   Overview ......................................................................................................... 86 
3.4.10.1.1   General ......................................................................................................... 86 
3.4.10.1.2   Notifications in the TRIPS Co uncil and review of legislatio n in 2008 ........................ 86 
3.4.10.1.3   IP authorities ................................................................................................. 86 
3.4.10.1.4   Intern ational treaties ...................................................................................... 87 
3.4.10.1.4.1   WIPO ......................................................................................................... 87 
3.4.10.1.4.2   APEC .......................................................................................................... 88 
3.4.10.1.4.3   ASEAN ....................................................................................................... 88 
3.4.10.1.4.4   Bilateral or regional agreements..................................................................... 88 
3.4.10.1.5   Innovation ..................................................................................................... 89 
3.4.10.2   Intellectual property .......................................................................................... 89 
3.4.10.2.1   Copyright and related rights ............................................................................. 89 
3.4.10.2.2   Industrial property .......................................................................................... 89 
3.4.10.2.2.1   Trade marks ............................................................................................... 90 
3.4.10.2.2.2   Geographic al indicati ons (GIs) ....................................................................... 90 WT/TPR/S/287 • Viet Nam 
 
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  3.4.10.2.2.3   Indu strial de signs ........................................................................................ 91 
3.4.10.2.2.4   Patents for inventions ................................................................................... 91 
3.4.10.2.2.5   Pl ant vari eties ............................................................................................. 92 
3.4.10.2.2.6   Layout-designs of integrated circuits ............................................................... 92 
3.4.10.2.2.7   Protection of  undisclosed information .............................................................. 92 
3.4.10.2.2.8   Unfair competition ....................................................................................... 92 
3.4.10.2.2.9   Other ma tters ............................................................................................. 92 
3.4.10.2.3   Enforcement .................................................................................................. 92 
4   TRADE POLICIES BY SECTOR ..................................................................................... 95  
4.1   Overview ................................................................................................................. 95 
4.2   Agriculture ............................................................................................................. . 96 
4.2.1   Features ............................................................................................................... 96 
4.2.2   Trade ................................................................................................................. .. 98 
4.2.3   Policies ................................................................................................................. 99 
4.2.3.1   Trade policies ................................................................................................... 10 1 
4.2.3.2   Domestic policies .............................................................................................. 101  
4.3   Fisheries ...............................................................................................................  103 
4.3.1   Features ............................................................................................................. 103  
4.3.2   Trade .................................................................................................................  105 
4.3.3   Policies ............................................................................................................... 106  
4.4   Mining and Energy .................................................................................................. 108  
4.4.1   Mining ................................................................................................................ 108  
4.4.2   Energy ............................................................................................................... 112 
4.4.2.1   Electricity ......................................................................................................... 113  
4.4.2.2   Hydrocarbons ................................................................................................... 116  
4.4.2.2.1   Upstream ...................................................................................................... 117  
4.4.2.2.2   Downstream .................................................................................................. 118  
4.4.2.2.3   Natural gas ................................................................................................... 120  
4.5   Manufac turing ........................................................................................................ 12 0 
4.5.1   Textiles and garments .......................................................................................... 122  
4.5.2   Motor vehicles ..................................................................................................... 12 3 
4.5.2.1   Automotive ...................................................................................................... 123  
4.5.2.2   Mo torcycle s ...................................................................................................... 12 5 
4.5.3   Other manufactu ring activities ............................................................................... 126  
4.6   Services ................................................................................................................  128 
4.6.1   Features ............................................................................................................. 128  
4.6.2   Overall commitments under the Gene ral Agreement on Trade in Services .................... 129  
4.6.3   Regional and bilatera l agreements on  services ......................................................... 130  
4.6.4   Financial services ................................................................................................. 130  
4.6.4.1   Banking and finance .......................................................................................... 130  WT/TPR/S/287 • Viet Nam 
 
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  4.6.4.2   In suranc e ........................................................................................................ 13 6 
4.6.5   Communications .................................................................................................. 138  
4.6.5.1   Teleco mmunicati ons .......................................................................................... 138  
4.6.5.2   Postal services .................................................................................................. 141  
4.6.5.3   Broadcasting and film industry ............................................................................ 141  
4.6.6   Transport ........................................................................................................... 1 42 
4.6.6.1   Maritime services .............................................................................................. 143  
4.6.6.2   Air transport ..................................................................................................... 146  
4.6.6.3   Land transport .................................................................................................. 148  
4.6.7   Distribution services ............................................................................................. 149  
REFERENC ES ................................................................................................................ 151  
5   APPENDIX TABLES .................................................................................................. 156  
 
CHARTS 
 
Chart 1.1 Product composition of merchandise trad e, 2007 an d 2011 ...................................... 26 
Chart 1.2 Direction of merchandise trade, 2007 and 2011 ...................................................... 28 
Chart 1.3 Foreign direct investment  projects licens ed, 2007 and 2012 ..................................... 29 
Chart 3.1 Average applied MFN rates, by HS chapters 1 to 24, 2007 and 2013 .......................... 46 
Chart 3.2 MFN applied tariff averages by WTO non-agricultural product groups, 2007 
and 2013 ........................................................................................................................ 47 
Chart 3.3 Standards organizational structur e in Ministry of Science and Technology ................... 68 
Chart 3.4 Sanitary and phytosanit ary organization al structure ................................................ 72 
Chart 3.5 Administrative IP R enforcement agencies .............................................................. 93 
Chart 4.1 Imports and exports of agricultural pr oducts, 2004-11  ............................................ 98 
Chart 4.2 Total fisheries catch in Vi et Nam ........................................................................ 103  
Chart 4.3 Total fisheries pr oduction in Viet Nam ................................................................. 104  
Chart 4.4 Interest rate spread , January 2007-Nove mber 20 12 ............................................. 135  
 
TABLES 
 
Table 1.1 Selected macroeco nomic indicato rs, 2007- 12 ......................................................... 15 
Table 1.2 Basic economic and social indicators, 2007-12 ....................................................... 17 
Table 1.3 Balance of payments, 2007-12 ............................................................................. 19 
Table 1.4 Indicators of FDI im pact in Viet Nam, 2007-11 ....................................................... 30 
Table 2.1 Most recent WTO no tifications, end-May 2013 ........................................................ 35 
Table 3.1 Viet Nam's tariff structure, 2007 and 2013 ............................................................. 45 
Table 3.2 Tariff-ra te quotas , 2010- 12 ................................................................................. 48 
Table 3.3 Tariff-rate quotas for Cambodia and Lao PDR, 2008-12 ............................................ 49 
Table 3.4 Goods and Services Subject to Special Consumption Tax, 2006-13 ............................ 50 
Table 3.5 Products subject to environmental protection tax .................................................... 52 WT/TPR/S/287 • Viet Nam 
 
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  Table 3.6 Goods and services exempt  from VAT (as of  1 January  2009) ................................... 53 
Table 3.7 Import  prohibitions............................................................................................. 54 
Table 3.8 Royalty payments  on natural resources ................................................................. 61 
Table 3.9 STAMEQ in international an d regional standard s organizations .................................. 67 
Table 3.10 Principal legislatio n on technica l measur es ........................................................... 69 
Table 3.11 Goods subject to mandatory inspection and quality control (domestically 
produced, imported, and for export) ................................................................................... 71 
Table 3.12 Basic SPS Legislation ........................................................................................ 73 
Table 3.13 Certificates required for impo rting food and agricu ltural products ............................ 75 
Table 3.14 Selected large SOEs .......................................................................................... 81 
Table 3.15 WIPO treaties (+ UPOV Co nvention) in forc e for Viet Nam ...................................... 87 
Table 3.16 Applications for trademarks, industrial designs, and patents and utility models, 
2008-1 2 ....................................................................................................................... .. 90 
Table 3.17 Industrial property infringement ca ses, 2007 -12 ................................................... 94 
Table 4.1 Production of selected commodities, 2005-11 ......................................................... 97 
Table 4.2 Exports and imports of agricultural, 2005-11 .......................................................... 99 
Table 4.3 Gross output of state, non-state, and foreign invested sector at constant 1994 
prices, 2005- 11 ............................................................................................................. 1 00 
Table 4.4 Gross output pe r hectare, 2005-11  ..................................................................... 104  
Table 4.5 Aquaculture production, 2005-11 ....................................................................... 104  
Table 4.6 Capture fishin g production  2005-11  .................................................................... 105  
Table 4.7 Exports and imports of fisheries products, 2004-11 ............................................... 106  
 
BOXES 
 
Box 1.1 Economic stimulus and stabilizat ion action ............................................................... 16 
Box 2.1 System of legal docu ments issued in  Viet Nam ......................................................... 32 
 
APPENDIX TABLES 
 Table A1. 1 Merchandise exports by product group, 2007-11 ................................................ 156
 
Table A1. 2 Merchandise imports by product grou p, 2007-1 1 ............................................... 157  
Table A1. 3 Merchandise export s by destinatio n, 2007-11  .................................................... 159  
Table A1. 4 Merchandise impo rts by origin , 2007-11  ........................................................... 160  
 
Table A2. 1 Overview of Viet Nam's free-trade agreements .................................................. 161  
 
Table A3. 1 Tariff  summary , 2013 .................................................................................... 164  
Table A3. 2 Extract of changes in customs duti es, 2007–12  ................................................. 166  
Table A3. 3 Preferential tariff averages  for selected prod uct groups , 2013 .............................. 169  
Table A3. 4 Imported goods subject to line manageme nt licensing ........................................ 171  
Table A3. 5 Export duties, 1 January 2013 ......................................................................... 173  
Table A3. 6 Goods subject to  export rest riction .................................................................. 176  WT/TPR/S/287 • Viet Nam 
 
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  Table A3. 7 Assistance to chemical and mechanical engineering industries ............................. 177  
Table A3. 8 Main dedicated intellectual  property laws an d regulations .................................... 180  
Table A3. 9 IPR enforc ement legislation ............................................................................ 183  
 
 WT/TPR/S/287 • Viet Nam 
 
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  SUMMARY 
Economic Environment 1. Political and economic reforms ( Doi Moi ) have transformed Viet Nam from one of the poorest 
countries in the world to a lower middle-income country, and from a centrally planned economy 
into a more market-oriented economy through gradual integration into the global trading and 
investment system. Trade and foreign direct investment liberalization have been integral parts of the structural reforms that contributed to improved competitiveness and thus export-led growth. 
Despite Viet Nam's extraordinarily rapid economic development, its international competitiveness 
seems to have come under threat in recent years. More specifically, notwithstanding rising labour productivity, the contribution of total factor productivity to the growth of Viet Nam's factor-driven economy appears to have collapsed.  
2. Since the launch of Doi Moi  and until its WTO accession Viet Nam's growth rates were high 
owing mainly to rising investment and vigorous exports. Viet Nam grew at an annual average rate of 6.3% (2007-12), albeit trending slowly downward for the last 5-6 years. Growth has been 
driven equally by the expansion of the export sector and strong domestic investment, and was 
supported by a generous economic stimulus package in 2009, while the recent slowdown has, inter alia,  been the outcome of the slow pace of stru ctural reforms that impeded TFP growth, the 
global financial crisis, and tighter macroeconomic policies adopted in 2011. Despite recent 
macroeconomic instability involving, inter alia,  a sharp rise and subsequent drop in inflation whose 
latest bouts were in 2008 (23%) and 2011 (18.6%), official unemployment remains low.  
3. Monetary policy is set on the basis of a balance between controlling inflation and supporting 
sustainable economic growth. As from 2011, contro lling inflation and stabilizing the macroeconomy 
became the priority, and direct rather than indirect policy tools were used to ensure the attainment of macroeconomic objectives. In rece nt years, the central bank, under government 
oversight, has devalued the national currenc y at least seven times, improving export 
competitiveness, and narrowed its trading band. Following a peak fiscal deficit in 2009 (7.2% of GDP) reflecting the impact of the stimulus package, by 2011 the deficit had been gradually 
brought down to its 2007 level (2.5% of GDP) due largely to higher tax revenue collection, and a 
significant reduction in public investment spending. 
4. Viet Nam has significantly narrowed its large merchandise trade and current account 
deficits, and achieved surpluses since 2011 (current account) and 2012 (trade account). Since 
2008, foreign exchange reserves have dropped sign ificantly, due to the impact of the global 
economic crisis, but in 2012 they rose and in February 2013 they stood at US$28.6 billion (about 
3 months of imports). Viet Nam's historically low external debt position rose from 29.8% of GDP 
(2008) to 41.5% (2011), due to increased demand for capital related to the country's 
industrialization and modernization.  
5. The economy is strongly outward oriented, with trade in goods and services accounting for 
171.5% of GDP. A considerable proportion of Viet Nam's foreign trade is increasingly intra-regional 
(Asia-Pacific); its labour-intensive and low value-added exports are relatively well diversified. 
6. Following its WTO accession, Viet Nam experienced a surge in foreign direct investment. FDI 
inflows and the total value of licensed projects peak ed in 2008 but the latter declined as a result of 
investors' worries, while FDI outflows grew five-fold between 2007 and 2011. Nevertheless, the 
country remains an attractive destination for foreign investors and has long-term growth potential. The contribution of foreign-invested enterprises to GDP, employment, and exports as well as 
product and market diversification have been noteworthy, although state involvement in the 
economy in certain activities remains relatively high, albeit declining.  
7. Viet Nam went a long way in equalizing the treatment accorded to Vietnamese and foreign 
investors with the promulgation of its enterprise and investment laws in 2005. However, some 
differences remain and may lead to differing interp retations, particularly when a foreign investor 
acquires a locally owned business. The establis hment of a one stop shop system for business 
registration and investment licensing is a long-standing issue, and could help to address occasional 
allegations of inconsistent and uncoordinated im plementation of laws and regulations by the 
responsible government agencies. Private ownership of land is not permitted in Viet Nam, but land WT/TPR/S/287 • Viet Nam 
 
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  may be leased on long-term agreements. Private-public partnership projects have been 
implemented on a pilot basis since early 2011 to stimulate private investment in infrastructure.  
Trade Policy Framework 8. Viet Nam's hierarchy of legal documents comprises 12 levels, determined by the type of 
legislation and the issuing institution. Legislation issued by a lower state organ must be consistent 
with the legal documents of higher state organs. However, it is not always evident whether new legislation abrogates or supplements existing legislation. Ministries continue to rely on official 
letters, notices, or guidelines to set policy and clarify implementation issues, although the Law on 
promulgation of Legal Documents stipulates that such communications have no legal or binding effect.  
9. The Ministry of Industry and Trade plays a leading role on international trade issues, 
although many other ministries and agencies also deal with trade-related matters. The National 
Committee for International Economic Co-operation serves as a coordinating body between the ministries and line agencies. Since Viet Nam became a WTO Member, some 130 notifications have 
been submitted to the Secretariat in a number of areas. Notable gaps include agricultural and 
industrial subsidies, for which data remain unavailable (since 2007), and state trading, where Viet Nam has provided no information despite the importance of the public sector in its economy. 
Concerns have been raised in the Committee on Import Licensing regarding the timeliness and 
completeness of informatio n provided by Viet Nam. 
10. Viet Nam joined ASEAN in 1995 and is thus part of its comprehensive framework for trade in 
goods, services, and investment. Viet Nam pursues trade liberalization in Asia and the Pacific 
together with its ASEAN partners complemented by additional bilateral initiatives. Viet Nam has 
taken advantage of these agreements to boost exports of competitive product lines, e.g. in agriculture, fisheries, textiles, footwear, and furnit ure. Viet Nam has been a full participant in the 
negotiations on a Trans-Pacific Partnership Agreement since November 2010, and is negotiating 
bilateral FTAs with the EU, the members of EFTA, the customs union of Belarus, Kazakhstan, and the Russian Federation, and Korea.  
Trade Policy Developments 
11. Viet Nam bound the entire tariff schedule in the context of its WTO accession, and mostly in 
the 0-40% range. The simple average MFN tariff ha s declined significantly, from 18.5% in 2007 to 
10.4% in 2013, as Viet Nam has been phasing-in its tariff concessions. However, differences 
between bound and applied rates have left some scope for flexibility, and Viet Nam has made use 
of this, inter alia,  to reduce fluctuations in domestic energy prices, and to provide additional 
protection to selected industries since 2008. Tariff rate quotas regulate imports of eggs, sugar, 
unmanufactured tobacco and tobacco refuse, and salt.  
12. A special consumption tax is levied on certain goods and services including cigarettes, 
alcoholic beverages, motor vehicles, motor cycles, and golf and gambling services. Tax rates were 
equalized on imported and domestically produced alcoholic beverages as a result of Viet Nam's 
WTO accession. Nevertheless, valuation differences in the tax base may provide an advantage to local producers. Viet Nam introduced an environmental protection tax on five product categories with effect from 1 January 2012, in part replacing earlier surcharges on various fuels. Value-added 
tax, which is levied at a general rate of 10%, constitutes almost one third of the Government's 
total tax revenue, while trade taxes seem to account for one tenth.  
13. As for non-tariff measures, Viet Nam prohibits the importation of goods generally considered 
harmful to human health and safety, or national security. Import restrictions may be applied to 
comply with international treaties and conventions to which Viet Nam is a party. "Line management", i.e. licences issued by the Ministry  of Industry and Trade for imports regulated by 
other ministries, is applied to the importation of various goods. According to the authorities, the 
system includes automatic and non-automatic licensing procedures.  
14. In 2008, Viet Nam introduced what it considers to be automatic licensing for a wide range of 
consumer products and agricultural items. The product coverage was extended in 2010, reduced 
somewhat in 2011, and temporarily suspended as from September 2012. However, certain steel WT/TPR/S/287 • Viet Nam 
 
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  products are still affected by this measure. In Ap ril 2010, the Ministry of Industry and Trade issued 
a long list of "non-essential" imported commodities and consumer goods not encouraged for import, and the State Bank of Viet Nam discourages the granting of loans by credit institutions to finance imports of such items. A requirement to ch annel all imports of wines, spirits, cosmetics, 
and mobile phones through three seaports only was in effect from May 2011 until the end of 2012.  
15. Although Viet Nam has legislation and institutions to conduct anti-dumping and 
countervailing investigations, no such action has been taken. An investigation into possible 
safeguard measures on imported float glass was terminated with no safeguards imposed in 
February 2010. In an ongoing investigation on certain imported vegetable oils, the imposition of a provisional safeguard measure (5% additional duty) was announced in May 2013.  
16. Standards and technical regulations are drawn up by technical committees with support 
from the Directorate for Standards, Metrology and Quality (STAMEQ), under the Ministry of 
Science and Technology. STAMEQ, which is the WTO TBT enquiry point, also represents Viet Nam in a number of international and regional standa rds organizations and its subsidiary bodies are 
responsible for metrology, conformity assessment, quality assurance, and certification. 
Accreditation of laboratories is the responsibility of the Bureau of Accreditation, also under the Ministry but not part of STAMEQ. At the end of 2012, Viet Nam had 6,800 national standards, 40% 
of which were harmonized with international, regional, or foreign standards, and 116 technical 
committees with plans to complete 813 standards in 2013. 
17. A number of government ministries are responsible for sanitary and phytosanitary 
measures. The Ministry of Agriculture and Rural De velopment is the WTO SPS enquiry point. As is 
the case for standards and technical regulations, the legislation for SPS measures comprises a 
number of ordinances, laws, decisions, decrees, and circulars. The measures generally correspond to standards established by the OIE, Codex Alimenta rius, and the IPPC; the official objective is to 
harmonize them fully, although no date has been set. 
18. Among measures affecting exports, Viet Nam levies export duties on certain products and 
royalties on certain natural resources. Export duties on scrap metal have been reduced by 
approximately 50% since 2006, in accordance with Viet Nam's WTO commitments. Numerous 
other changes since 2006, have added or deleted items, and increased or eliminated tax rates. Some goods are subject to export controls. The Mini stry of Industry and Trade does not appear to 
have applied legal provisions to regulate or monitor exports through automatic licences. However, 
other measures imposed by the authorities incl ude quality standards and bans on exports of 
certain minerals.  
19. Viet Nam provides subsidies, mainly in the form of tax incentives, for example to encourage 
research and development; the development of in frastructure of special importance; to assist 
enterprises involved in education, training, and he alth care; and the establishment of businesses in 
geographically disadvantaged areas. The Vi et Nam Development Bank (VDB), finances 
infrastructure as well as business development. An interest rate support programme is available. 
Support for trade promotion activities is modest and, according to the authorities, well below the 
level requested by Vietnamese businesses. 
20. Nearly 300 industrial parks and export-process ing zones account for a significant share of 
Viet Nam's industrial output, investment, export s, and employment. Although the performance of 
the industrial parks is highly uneven and the average occupancy rate has been falling in recent times, many new parks and zones are on the drawing board. 
21. Although Viet Nam has made no formal commitment to join the Agreement on Government 
Procurement, it currently has observer status. Unde r existing legislation, preferences are available 
to local suppliers in international tenders, and imports are discouraged when machinery, 
equipment, and materials used in the procurement can be produced domestically.  
22. Viet Nam began the process of reforming its state-owned enterprises more than 20 years 
ago. Many enterprises have been privatized and further divestment of state holdings is foreseen. Nevertheless, the state-owned sector continues to  account for 38% of GDP, and the fundamental 
approach to state ownership is a mixture of re novation, preservation, and expansion. In 2005, 
Viet Nam began establishing pilot State Economic Groups, i.e. loose alliances of SOEs with similar WT/TPR/S/287 • Viet Nam 
 
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  business interests. The financial difficulties of one of these groups, exposed in 2010, revealed a 
number of structural weaknesses in large Vi etnamese SOEs including complex corporate 
structures, lack of effective oversight, and ex pansion well beyond the stated core business 
activities. A Steering Committee for the restructuring of SOEs was set up in 2011. Viet Nam has 
also begun the process of legally separating stat e ownership rights from the State's regulatory 
functions.  
23. Intellectual property protection is the focus of attention of Viet Nam and many of its trading 
partners. Viet Nam is party to a number of WIPO-related treaties and continues to integrate the 
IP-innovation-trade triangle in international and regional fora. Viet Nam's legislation was reviewed by the Council for TRIPS in 2008. The enforcement system in Viet Nam is highly complex. Regulation is provided through various legal and administrative texts, and the responsibilities for 
IPR enforcement are shared among a considerable number of central and local authorities. Issues 
such as counterfeited and pirated goods, and cabl e and satellite signal theft, remain matters of 
concern. 
Sectoral Policy Developments 
24. Production and trade of agricultural products has increased over the past few years and 
Viet Nam is now an important producer and exporter of several agricultural products, including 
rice, coffee, and cashew nuts with a large surplus in trade in agricultural products. Imports have 
also increased considerably, particularly of inputs  such as animal-feed and cotton. Although state-
owned enterprises do not play a major role in production, several are involved in processing and trade, as well as supplying inputs to farmers. To tal public spending on agriculture was about 5-6% 
of the total state budget in 2010, which would equate to roughly 6% to 7% of the total value of 
agricultural production. The focus of government po licy is on increasing productivity and reducing 
risk exposure through investment in infrastructure, research and development, better extension 
services, and easier access to credit. 
25. Viet Nam has a large trade surplus in fisheries products as both marine catch and 
aquaculture production and exports have increased over the past few years, particularly 
aquaculture, as the value of production nearly doubled from 2005 to 2011. The fisheries sector is 
dominated by small-scale production for both the aquaculture and catch subsectors. Public policy aims to complete a database on aquatic resources, to increase production of aquaculture, to improve sustainability through better resource management, and to enforce compliance with laws 
and regulations on sustainable fishing. 
26. In mining, where foreign-invested enterprises account for the largest part of total output, 
efforts have been made to promote sustainable development and ensure that mined products are 
used in a cost-effective and efficient way. Legislative changes have affected, inter alia , the 
granting of mining licences and increased royalties. Overall tariff protection in the sector remains relatively low; average applied MFN tariff on mineral fuels and oils dropped considerably while the 
rate for ores, slag and ash increased slightly. Recently export prohibitions and controls on several 
mining products were reinforced and taxes raised on others to ensure adequate domestic supplies, 
increased value-added and/or vital tax revenue.  
27. Efforts have been made to promote renewable energy sources as well as energy saving and 
efficiency. The energy sector remains dominated by cross-owned state enterprises, and 
characterized by the loose separation between op erational, regulatory, and ownership functions. 
Efforts are being made to address the country's limited oil-refining capacity. Retail petrol and oil 
prices are adjusted in accordance with flexibly applied market-based mechanisms so that they are 
now closer to international market prices. Natural gas prices along with wholesale electricity prices 
are kept generally low. Despite the ongoing introduction of a competitive electricity market, low 
electricity purchase prices by the state-owned monopoly discourage investment in much needed 
new power-plant capacity. The current pricing structure does not allow utilities to cover the full cost of producing and distributing electricity, and electricity rates for low-income households and irrigation are cross-subsidized by higher rates for industry and commerce.  
28. The contribution of manufacturing to GDP has dropped steadily since 2007, while its share in 
employment has risen. Average applied MFN tariff protection for industrial products has been cut by almost half. Nevertheless, tariffs on apparel and clothing, footwear, ceramic products, WT/TPR/S/287 • Viet Nam 
 
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  automobiles and motorcycles remain relatively high compared to those on other manufactures. 
Domestic support to manufacturing activities is provided in the form of tax and non-tax incentives as well as government-procurement practices, an d a buy-locally campaign entitled "Vietnamese 
people use Vietnamese products". In addition to border protection, industry-specific domestic 
support was adopted to boost "support industries", an important element in increasing local 
content in some key sectors, and the steel industry while assistance to the automotive sector was under consideration. Efforts were made to, inter alia , promote patient safety and sustainable 
access to pharmaceutical and biological products.  
29. Services, the largest sector of the economy, have been further liberalized as a result of 
Viet Nam's comprehensive WTO accession undertaki ngs. Consequently, its GATS+ commitments in 
recent regional trade agreements have been rela tively limited. Labour productivity, although 
higher than the average in the rest of the economy,  grew at a slower pace than in other sectors. 
Certain activities are subject to ceilings on foreign ownership. State involvement in major services subsectors with high market concentration is significant in certain cases. Despite successes, the 
banking sector has been exposed to unusually rapid gr owth in lending, but action is being taken to 
address safety and soundness issues. Great strides have been made in upgrading the telecommunications systems, improving access, and affordability of services; a pro-competition 
regulatory regime was passed although subject to ce rtain limitations. Screen quotas were recently 
passed for projection of foreign movies in cinemas, while certain restrictive conditions tied to film imports were removed. Transport infrastructure deficiencies and increasingly higher fees and surcharges on foreign firms dominating Viet Nam's overseas shipping market, have seemingly 
affected export competitiveness. Moreover, the presence of foreign vessels operating in the 
domestic container-shipping market was temporar ily restricted in June 2012. Efforts have been 
made to address ports competitiveness by reduci ng their fees. Reduced airport charges and fees 
were offered to encourage airlines  to increase their flight frequencies. Despite Viet Nam's openness 
to fully foreign-owned businesses, an economic needs test is compulsory in order for any retail outlet to be established beyond the first one. 
Outlook 
30. Although many of Viet Nam's economic fundamentals remain strong and much progress has 
been made in its economic transformation, significant weaknesses persist. As these weaknesses pose downside risks to Viet Nam's immediate economic outlook, action is being taken to address 
them. Equitable (inclusive) and sustainable growth depends on the Government implementing far-
reaching structural reforms in a timely manner, especially those aimed at addressing systemic risks faced by the financial sector, improving the operational framework of trade-related sectors 
(e.g. electricity supply, transport infrastructure), and intensifying SOE restructuring. These and 
related reforms, including regulatory reforms and trade liberalization in certain sectors, would improve resource allocation, thereby raising TFP and consequently competitiveness, as well as 
increasing the flexibility of the economy and its ability to attract foreign investment. Therefore, a 
key challenge for Viet Nam is to prioritize trade and trade-related policies conducive to the attainment of these objectives within a stable , transparent, and predictable policy framework. WT/TPR/S/287 • Viet Nam 
 
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  1  ECONOMIC ENVIRONMENT 
1.1  Overview 1.1.  Viet Nam's political and economic reforms ( Doi Moi , "renovation") launched in 1986 have 
transformed the country from one of the poorest in the world to a lower middle-income country 
with a more than ten-fold increase in income per capita and a major decline in the poverty rate 
(see below).
1 While capitalizing on its gradual integration into the global trading and investment 
system, Viet Nam, one of Asia's success stories, has also been transforming from a centrally 
planned economy into a more market-oriented economy though it appears that the transition to an 
industrialized economy has barely begun.2 State intervention, including direct control of production 
through state-owned enterprises (SOEs)3 in certain sectors, remains relatively high, albeit 
declining (sections 1.4.2.2, 3.4.8, 4.4, 4.5, and 4.6, and Table 1.5).4  
1.2.  Liberalization of trade and foreign direct investment (FDI) has been an integral part of the 
structural reforms that have contributed to im proved competitiveness and export-led growth. 
Since the launch of Doi Moi  and upon WTO accession Viet Nam experienced high rates of economic 
growth, rising investment, vigorous exports, and a sharp rise and subsequent drop in inflation. The 
economy had already entered a period of macroecono mic instability before it was affected by the 
2008 global financial crisis5, which caused a progressive slowdown in economic growth and a 
subsequent rebound in 2010 due to, inter alia , a timely policy response to the crisis, involving a 
stimulus package in 2009. This policy response invo lved the adoption of a series of measures to 
stabilize the economy and to ensure social stability as from 2011. Underpinned by tight macroeconomic policies, inflation, which peaked in 2008 and 2011, receded in 2012, while official 
unemployment remained largely under control.
6 In recent years Viet Nam's competitiveness seems 
to have been under threat7, with power generation not keeping pace with demand, rising logistical 
costs and real estate prices, and skill shortages becoming more widespread.8 Despite rising labour 
productivity (sections 4.4, 4.5, and 4.6), the contri bution of total factor productivity (TFP) to the 
growth of Viet Nam's factor-driven economy9 has been declining; indeed, TFP growth collapsed 
during 2005-10 and the entire growth came from factor accumulation.10 Viet Nam's economic 
                                               
1 World Bank online information. Viewed at: http://www.worldbank.org/e n/country/vietnam/overview  
[4 February 2013]. 
2 Viet Nam was ranked as the 140th freest economy (out of 177 countries) in the 2013 Index of 
Economic Freedom , compared to 135th in 2008 and 138th in 2007 (out of 157 countries); slight declines were 
noted in monetary, labour, and trade freedom oversh adowing improvements in control of government 
spending, business freedom, and freedom from corruption. Viet Nam is ranked 30th out of 41 countries in the 
Asia–Pacific region, and its overall score is lower than  the world and regional aver ages. Heritage Foundation 
online information, "2012 Index of Economic Freedom – Vietnam". Viewed at: http://www.heritage.org/index/pdf/2012/countries/vietnam.pdf ; "2013 Index of Economic Freedom- Vietnam". 
Viewed at: http://www.heritage.org/index/country/vietnam ; VDR (2012); and Viêt Nam News,  "Many 
challenges still to come in industrialisation", 26 October 2012. Viewed at: http://vietnamnews.vn/social-
issues/231936/many-challenges-still-to-come-in-industrialisation.html  [30 January 2013]. 
3 State-owned enterprises (sections 1.4.2.2 and 3.4.8) are: enterprises with 100% of state capital 
operating according to the provisions of the Enterprise Law and under the control of central or local governmental agencies; limited companies under management of central or local government; and joint-stock companies with domestic capital, of which the gove rnment holds more than 50%  of the charter capital 
(General Statistics Office of Vietnam, 2011, pp. 189-190). 
4 VDR (2012). 
5 Viet Nam's domestic economic turbulence was compounded by heightened volatility in the global 
economy. Nevertheless, China is the only Asian economy to have grown faster than Viet Nam since 2000 (McKinsey Global Institute, 2012; and Le, Thi Thuy Van, 2009). 
6 IMF (2012). 
7 In 2012, Viet Nam, one of the 38 World Economic Forum (WEF) factor-driven economies, ranked 
75th (out of 144 countries) in the Global Competitiveness Index  (same as in 2011); nevertheless, since 2010 
Viet Nam has lost 16 places and in 2012 was the second-lowest among eight members of the Association of Southeast Asian Nations (ASE AN). According to the WEF, among Viet Nam's few competitive strengths are its 
fairly efficient labour market (51
st, 2012), its large market size (32nd), and a satisfactory performance in the 
public health and basic education pillar (64th) (World Economic Forum, 2012). 
8 VDR (2012). 
9 In factor-driven economies, econom ic development is primarily driven  by basic requirements such as 
development of institutions, infrastructure, macroeconomic stability, and health and primary education. Global 
Entrepreneurship Monitor  online information ( http://www.gemconso rtium.org/Model ); World Economic Forum 
(2002); and VDR (2012). 
10 Excessive reliance on factor accumulation to suppo rt rapid growth is bound to be unsustainable. The 
government's 2011 decision to slash the target in vestment rate from the 40% to 35% of GDP while WT/TPR/S/287 • Viet Nam 
 
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  transition process has transformed the country and th e lives of its people, and its historically high 
decentralization has, inter alia,  contributed to more inclusive development.11 Impressive progress 
was made at reducing poverty and improving human development performance12, albeit at a 
slower pace than in the previous decade13; income inequality, as measured by the Gini coefficient, 
was the same in 2010 as in 2008, at 0.43.14 Viet Nam ranks 5th (out of 11 countries) in South-East 
Asia in terms of exports and imports of goods, and 6th in terms of services15; a considerable 
proportion of its foreign trade is increasingly intra-regional (Asia-Pacific), and its overall low 
value-added exports are relatively well diversified. Viet Nam experienced a surge in foreign direct 
investment but recent investors' worries have da mpened new projects, which rose slightly in 2012 
(section 1.6).  
1.3.  After 25 years of strong and stable growth, the economy has entered a more challenging 
phase. Although many of Viet Nam's economic  fundamentals remain strong, and progress has 
been made in its economic transformation, significant weaknesses seem to persist and pose downside risks to its immediate economic outlook, though action is being taken to address them. 
They relate,  inter alia,  to the relatively incomplete transition to a market economy, the quality and 
sustainability of growth, persistent macroeconomic instability, the speed in resolving problems in a 
number of small weak banks, addressing systemic risks facing the financial sector (i.e. level of 
non-performing loans, liquidity crises, stability of foreign reserves), and delays in SOE reforms 
(sections 1.4.2.2, 3.4.8, 4.4, 4.5, and 4.6).
16 Furthermore, Viet Nam’s population is expected to 
grow by 1% a year from 2009 until the end of 2013, thus increasing from 86.1 million people in 2008 to 90.4 million in 2013. To sustain growth, key sectors of the economy need to be reformed 
to improve resource allocation and raise TFP growth.
17  
1.2  Recent Economic Performance  1.4.  Viet Nam's economic performance has been  affected by large swings in economic and 
financial conditions.
18 The economy grew at an annual average rate of 6.3% in 2007-12 
(Table 1.1) trending slowly downward for the last 5-6 years, largely on account of the slow pace of 
structural reforms and TFP slowdown. Growth has been driven equally by the expansion of the 
export sector and strong domestic investment, with private consumption playing a somewhat 
lesser role. Recently growth deceleration has been the outcome of tighter macroeconomic policies (Box 1.1, section 1.4.1) resulting in weak domest ic demand and slow growth in public and private 
investment, as the Government prepares to move the economy away from factor accumulation to 
increased TFP as the key source of growth.
19 According to the authorities, the framework of action 
for this shift is found in the Decision approving the overall scheme of "Economic restructuring associated with transformation of growth mode l towards improving the quality, efficiency and 
competitiveness in the 2013-2020 period", which, inter alia,  promotes: the re-structuring of 
                                                                                                                                               
maintaining the growth rate of the economy at 6% to 6. 5% for the next five years makes productivity increase 
an imperative (VDR, 2012; and Asian Productivity Organization, 2012, Table 12). 
11 VDR (2012). 
12 Viet Nam has already attained five of its ten original Millennium Development Goal targets and is well 
on the way to attaining two more by 2015. World Bank online information. Viewed at: http://www.worldbank.org/en/country/vietnam/overview  [4 February 2013]. 
13 The share of people living below the national poverty line ( ₫653,000 person/month or 
US$2.24 person/day 2005 PPP) dropped from 58% in 1993 to 16% to in 2006 and 14.2% in 2010 (http://data.worldbank.org/country/vietnam ). In 2012, Viet Nam ranked 127
th (out of 186 countries) in the UN 
Human Development Index (HDI) ( http://hdr.undp.org/en/statistics/ ) compared to 116th out of 182 in 2007 
(http://hdr.undp.org/en/media/HDR_2009_EN_Complete.pdf ); and World Bank (2011). 
14 According to the General Statistics  Office of Vietnam a Gini-coefficien t of 0.4 is generally regarded as 
the international warning level for dangerous levels of inequality. China's Gini coefficient was estimated at 0.6 in 2010 ( VietNamNet Bridge , "Vietnam's rich-poor gap widens - at 9.2 times", 30 June 2011. Viewed at: 
http://english.vietnamnet.vn/en/society/10055/vietnam-s-rich-poor-gap-widens---at-9-2-times.html  
[15 January 2013]; and EIU online information, "China: Qu ick View - Income-redistribution reforms still hazy", 
21 December 2012. Viewed at: http://viewswire.eiu.com/index.asp?layout=ib3Article&article_id=369982621 ). 
15 United Nations Economic and Social Commission for Asia and the Pacific (2011). 
16 VDR (2012); McKinsey Global Institute (2012); and IMF (2012). 
17 Viet Nam needs to boost its overall labour pr oductivity growth by more than 50%, from 4.1% 
annually to 6.4%, if the economy is to meet the Govern ment's target of 7% to 8%  annual growth by 2020. 
Without such a boost, Viet Nam's grow th is likely to decline to between 4.5% and 5% annually; if so, by 2020, 
Viet Nam's annual GDP would be 30% lower than if th e economy continued to grow at 7% (McKinsey Global 
Institute, 2012; and IMF, 2012). 
18 Chan (2012). 
19 World Bank (2011); and IMF (2012). WT/TPR/S/287 • Viet Nam 
 
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  manufacturing; the diversification of services; the adjustment of marketing strategies; and the 
increase of local content, value-added, and comp etitiveness. For 2013, the authorities target GDP 
growth of around 5.5%. 
Table 1.1 Selected macroeconomic indicators, 2007-12  
  2007 2008 2009 2010 2011 2012 
National accounts (%age change, unless otherwise indicated)  
Real GDP  8.5  6.3  5.3  6.8  6.0  5.0  
   Consumption 10.6  9.2  3.5  10.2  4.7  3.7  
        Private consumption 10.8  9.3  3.1  10.0  4.5  3.3  
        Government consumption 8.9  7.5  7.6  12.3  6.1  8.3  
   Gross capital formation 26.8  6.3  4.3  10.4  -9.2  2.2  
   Exports of goods and non-factor 
services 11.3  5.0  11.1  14.7  12.2  14.8  
   Imports of goods and non-factor 
services  27.6  7.6  6.7  13.7  3.8  10.9  
          XGS/GDP (%) (at current 
market price) 76.9  77.9  68.3  77.0  87.0  87.9  
          MGS/GDP (%) (at current 
market price) 92.7  93.1  78.7  87.8  91.2  84.2  
Unemployment rate (%) 2.9  2.4  2.9  2.9  2.2  2.0  
     Urban (%) 4.6  4.7  4.6  4.3  3.6  3.2  
Prices and interest rates (%) 
Inflation (CPI, %age change) 6.5  23.0  6.9  9.2  18.6  9.2  
Loans and discounts rate 11.18  15.78  10.07  13.14  16.95   ..  
Savings deposit rate 7.49  12.73  7.91  11.19  13.99   ..  
Exchange rate       
₫/US$ (annual average) 16,110.0  16,583.0  18,123.0  19,495.0  20,982.0  21,020.0  
      (%age change) 0.6  2.9  9.3  7.6  7.6  0.2  
Real effective exchange rate 
(%age change)  ..  18.6  -7.9  1.0  3.7   ..  
 (% of GDP, unless otherwise indicated)  
Fiscal balance -2.5  -0.5  -7.2  -5.3  -2.5   ..  
Revenue including grants 28.7  28.9  27.3  27.8  27.8   ..  
   Tax revenue  ..  24.5  22.5  24.1  24.2   ..  
Expenditure 31.2  29.4  34.5  33.1  30.3   ..  
Central government total debt   ..   ..   ..   ..   ..   ..  
Saving and investment        
Gross national savings 33.3  27.8  31.6  34.9  29.3   ..  
Gross investment 43.1  39.7  38.1  39.0  29.9   ..  
Savings-investment gap -9.8  -11.9  -6.5  -4.1  -0.6   ..  
External sector       
Current account balance  -10.0  -12.1  -7.2  -4.2  0.2  6.5  
Net merchandise trade  -14.7  -14.3  -8.3  -5.1  -0.4  7.0  
   Merchandise exports 68.4  70.0  62.4  71.1  80.2  81.6  
   Merchandise imports 83.1  84.3  70.7  76.1  80.5  74.6  
Services balance -1.3  -1.1  -2.6  -2.4  -2.6  -2.1  
Financial account 25.4  13.8  7.4  6.1  5.4  5.9  
     Direct investment 9.6  10.4  7.5  7.0  5.4  5.1  
Balance-of-payments  14.4  0.5  -9.7  -1.7  1.0  8.5  
Terms of trade 83.9  84.1  88.4  92.6  98.3   ..  
Merchandise exports (%age 
change in US$) 21.9  29.1  -8.9  26.5  34.2  18.2  
Merchandise imports (%age 
change in US$) 38.5  27.9  -14.3  19.6  25.8  7.5  
Service exports (%age change in 
US$) 18.2  16.2  -17.7  29.4  16.5  10.4  
Service imports (%age change in 
US$) 35.5  14.9  2.9  21.2  19.5  5.6  WT/TPR/S/287 • Viet Nam 
 
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    2007 2008 2009 2010 2011 2012 
Foreign reserves (US$ billion) 21.0  23.0  14.1  12.4  13.5  25.4  
      in months of imports of goods 
and services  ..  4.3   ..   ..  1.8  3.0  
Total external debt 32.5  29.8  39.0  42.2  41.5   ..  
Foreign debt obligationsa 3.8  3.3  4.2  3.4  3.5   ..  
.. Not available. 
a Per cent of exports of goods and services. Source: IMF online information. Viewed at: https://elibrary-data.imf.org/ ; IMF (2012), Vietnam 2012 
Article IV Consultation , IMF Country Report No.12/165, July. Viewed at: 
http://www.imf.org/external/pubs/ft/scr/2012/cr12165.pdf ; General Statistics Office of Vietnam 
online information. Viewed at: http://www.gso.gov.vn/default_en.aspx?tabid=491 ; and data 
provided by the authorities. 
Box 1.1 Economic stimulus and stabilization action 
In response to endogenous and exogenous factors affecting the economy, since 2007 the 
authorities intervened to provide economic stimulus and stabilize the economy.   
 
In January 2009, the Government announced a ₫17 trillion (US$1 billion) stimulus, involving a 4% 
interest rate subsidy for businesses and individuals. In May 2009, the Government officially 
announced a comprehensive ₫145.6 trillion (US$8 billion or 8.3% GDP) stimulus package, including 
the January 2009 measure, in order to enhance growth  in the scenario of deeper global economic 
recession. The stimulus package consisted of: supporting credit loans with low interest rates, 
involving the 4% interest rate subsidy (down to 2% from January 2010) for businesses and 
individuals, theoretically until 31 December 2009 ( ₫17 trillion); deferring settlements of advance 
construction capital in work-in-progress before 2009 ( ₫3.4 trillion); advancing funds to carry out 
some urgent projects likely to be completed in 2009-10 ( ₫37.2 trillion); transferring planned capital 
investment from 2008 to 2009 ( ₫30.2 trillion); issuing more Government bonds ( ₫20 trillion); 
implementing a tax exemption policy (worth ₫28 trillion); and other stimulus spending to prevent 
economic recession and ensure social security ( ₫9.8 trillion). This stimulus package, considered 
very large by international standards, has, inter alia,  helped boost exports by assisting exporters in 
general (e.g. via the reduction of corporate tax rates and interest rate subsidies), and by promoting 
the export of specific commodities and services  (e.g. via the reduction of export duties); the 
depreciation of the dong (section 1.4.1.1) has also improved export competitiveness. 
 
In response to increasing pressures on prices an d the exchange rate in late 2010, a stabilization 
package was adopted in February 2011. Macroeconomic policies were tightened significantly by 
implementing Resolution 11, which contained a wide range of mutually reinforcing and consistent 
monetary and fiscal policy targets, and committed the Government to undertake several structural 
measures, including reform of SOEs, improving responsiveness to market signals, and protecting 
the poor from macroeconomic instability. Policy inte rest rates were raised, a credit growth ceiling 
was imposed, and investment by the Government and SOEs was contained. According to the IMF, 
these policies had the desired effect, but with the sharper-than-expected slowdown of the economy 
and the rapid fall in inflation in early 2012, the SBV reduced policy interest rates and the 
government began to encourage more bank credit to strategic sectors. At the same time, action 
was taken to address vulnerabilities at a number of small weak banks, and a comprehensive 
medium-term strategy was adopted to strengthen th e financial sector as a whole. According to the 
World Bank, regaining macroeconomic stability has been costly, but not stabilizing the economy 
would have led to even bigger losses. 
Source:  IMF (2012), Vietnam 2012 Article IV Consultation , IMF Country Report No.12/165, July. Viewed at: 
http://www.imf.org/external/pubs/ft/scr/2012/cr12165.pdf  [28 August 2012]; World Bank (2011), 
Taking Stock - An Update on Viet nam's Recent Economic Developments , prepared for the Annual 
Consultative Group Meeting for Vietnam Ha Tinh, 8-9 June 2011. Viewed at: http://siteresources.worldbank.org/INT VIETNAM/Resources/TakingStockEng.pdf [30 August 2012]; 
Nguyen Manh Hung and Pham Sy An (2011), Impacts of the global economic crisis on foreign trade 
in lower-income economies in the Greater Mekong Sub-region and policy responses: the case of 
Vietnam and its implications for Lao PDR and Cambodia , Asia-Pacific Research and Training Network 
on Trade Working Paper Series, No. 102, May. Viewed at: http://www.unescap.org/tid/artnet/pub/wp10211.pdf  [17 December 2012]; and Le, Thi Thuy Van 
(2009), Vietnam's policy responses to the financial crisis , East Asian Institute Background Brief 
No. 447, 14 April. Viewed at: http://www.eai.nus.edu.sg/BB447.pdf  [17 December 2012]. WT/TPR/S/287 • Viet Nam 
 
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  1.5.  Since 2007, changes in the overall sectoral pattern of Viet Nam's GDP and employment have 
been relatively minor with services remaining the largest sector of the economy (37.2% in 2012) (Table 1.2, section 4.6.1); the GDP shares of agriculture and mining (including oil) have been on the rise, while the share of manufacturing has dropped progressively. Oil production increased 
steadily until 2004 when it started to decline slowly (section 4.4.2.2); oil production is estimated 
to rise as several smaller fields are expected to come online by 2015.
20 In the global value chain, 
Vietnamese enterprises seem to undertake only production phases with relatively low value added 
(section 4.5), while the most profitable phases (processing products, increasing brand value and 
commercializing products) are undertake n by foreign invested enterprises.21 
Table 1.2 Basic economic and social indicators, 2007-12  
    2007 2008  2009  2010  2011 2012  
Real GDP at market prices 
(₫ billion, 1994 prices) 461,344.0  490,458.0  516,566.0  551,609.0  584,496.0  613,884.0  
Real GDP at market price 
(US$ billion, 1994 prices) 28.6  29.6  28.5  28.3  27.9  29.2  
Current GDP at market price 
(₫ billion) 1,143,715.0  1,485,038.0  1,658,389.0  1,980,914.0  2,536,631.0  2,950,684.0  
Current GDP at market price 
(US$ billion) 71.0  89.6  91.5  101.6  120.9  140.4  
GDP per capita at current 
market price ( ₫ '000) 13,580.3  17,446.7  19,278.0  22,786.8  28,877.9  33,237.6  
GDP per capita at cur rent 
market price (US$) 843.0  1,052.1  1,063.7  1,168.9  1,376.3  1,581.2  
  (Annual  %age change)  
GDP by economic activity at constant 1994 prices  
Agriculture, forestry, and fishing 3.8 4.7  1.8 2.8 4.5 2.7  
 Agriculture 2.7 4.7 1.3 2.4 4.2 2.3 
 Forest ry 1.4 1.9  3.5 3.9 5.2 5.8  
 Fishery 10.6 5.4 4.3 4.4 5.6 4.2 
Mining and quarrying -2.2 -3.8  7.6 -3.7 -0.1 3.5  
Manufacturing 12.4 9.8 2.8 8.4 8.3 4.5 
Electricity, gas and water supply 8.9 9.4  8.5 10.5 9.3 11.3  
Construction 12.1 -0.4 11.4 10.1 -1.0 2.1 
Services 8.9 7.4  6.6 7.5 7.0 6.4  
 Wholesale and retail trade; 
repair of motor 
vehicles/cycles 8.8 6.8 7.7 8.1 7.8 6.9 
 Transportation and storage  11.4 11.9  8.5 8.7 7.1 6.8  
 Accommodation and food 
service activities 12.8 8.7 2.3 8.7 7.4 7.0 
 Information and 
communication 10.6 10.5  7.2 8.2 6.9 6.0  
 Finance, banking and 
insurance 8.8 10.2 8.7 8.3 7.3 7.1 
 Real estate 4.1 2.5  2.6 2.6 1.8 -1.2  
 Professional, scientific and 
technical activities 5.6 4.1 4.3 4.5 3.9 2.9 
 Education and training 8.8 8.0  6.6 6.9 7.2 7.4  
 Health care & social relief 8.0 7.8 6.7 7.0 7.3 8.7 
 Public administration and 
defence 8.1 6.5  7.3 7.5 7.1 7.3  
 Other services 8.0 7.0 6.6 6.9 6.4 5.6 
  (%) 
Share of main sectors in GDP, current prices  
Agriculture, forestry, and fishery 20.3 22.2  20.9 20.6 22.0 21.6  
 Agriculture 15.6 17.6 16.4 16.1 17.4 16.8 
 Forestry 0.7 0.7  0.8 0.7 0.7 0.7  
 Fishery 4.0 3.9 3.7 3.7 3.9 4.2 
Mining and quarrying 9.8 9.9  10.0 10.9 11.0 12.6  
                                               
20 U.S. Energy Information Administration (2012). 
21 VietNamNet Bridge  "Where are Vietnamese goods in the global value chain?", 3 January 2011. 
Viewed at: http://english.vietnamnet.vn/en/business/3357/where-are-vietnamese-goods-in-the-global-value-
chain-.html  [5 February 2013]. WT/TPR/S/287 • Viet Nam 
 
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      2007 2008  2009  2010  2011 2012  
Manufacturing 21.1 20.2 20.0 19.6 19.3 18.4 
Electricity, gas, and water 
supply 4.1 3.8  4.2 4.2 4.1 4.1  
Construction 7.0 6.4 6.6 7.0 6.4 6.1 
Services 37.7 37.4  38.3 37.8 37.2 37.2  
 Wholesale and retail trade; 
repair of motor 
vehicles/cycles 13.4 14.0 14.5 14.3 14.3 14.4 
 Transportation and storage  3.4 3.4  3.3 3.3 3.1 3.9  
 Accommodation and food 
service activities 3.9 3.8 4.1 4.1 4.2 4.1 
 Information and 
communication 1.2 1.2  1.2 1.1 1.1 1.0  
 Finance, banking and 
insurance 1.4 1.4 1.5 1.5 1.5 1.5 
 Real estate 2.6 2.4  2.4 2.4 2.3 2.1  
 Professional, scientific and 
technical activities 1.5 1.4 1.5 1.4 1.4 1.3 
 Education and training 3.0 2.6  2.6 2.5 2.6 2.9  
 Health care & social relief 1.4 1.3 1.3 1.2 1.1 1.1 
 Public administration and 
defence 2.7 2.8  2.8 2.8 2.8 2.8  
 Other services 3.1 3.0 3.1 3.1 3.0 2.1 
Share of sector in total employment  
Agriculture, forestry, and fishery 52.9 52.3 51.5 49.5 48.4 47.4 
Mining and quarrying 0.7 0.6  0.6 0.6 0.6 0.6  
Manufacturing 12.5 12.9 13.5 13.5 13.8 13.8 
Electricity, gas, and wate r 0.5 0.5  0.5 0.5 0.5 0.5  
Construction 5.2 5.3 5.4 6.3 6.4 6.4 
Services 27.7 28.0  28.0 29.1 30.0 31.1  
 Wholesale and retail trade; 
repair of motor vehicles and 
motorcycles 10.9 11.0 10.8 11.3 11.6 12.3 
 Accommodation and food 
service activities 2.4 2.8  3.3 3.5 4.0 4.2  
 Transport and storage 3.0 3.1 3.0 2.9 2.8 2.9 
 Information and 
communication 0.4 0.4  0.5 0.5 0.5 0.6  
 Financial, banking and 
insurance activities 0.4 0.4 0.5 0.5 0.6 0.6 
 Real estate 0.1 0.1  0.1 0.2 0.2 0.3  
 Professional, scientific and 
technical activities 0.4 0.4 0.5 0.4 0.4 0.5 
 Administrative and support 
serve activities 0.3 0.3  0.4 0.4 0.4 0.4  
 State management & 
national defense;  
compulsory social security 3.7 3.6 3.3 3.2 3.1 3.1 
 Education and training 3.3 3.2  3.3 3.4 3.4 3.4  
 Human health 0.9 0.8 0.8 0.9 1.0 0.9 
 Other services 1.9 1.8  1.6 1.9 2.0 1.9  
Other 0.4 0.4 0.4 0.4 0.4 0.3 
Source: Data provided by the authorities. 
1.6.  Despite macroeconomic instability, official unemployment remains low, but does not reflect 
employment trends in the unofficial economy, which seems to comprise almost 70% of the total workforce.
22 Overall official unemployment has dropped since 2008, despite a slight surge in 2009 
and 2010 (Table 1.1).  
                                               
22 According to Ministry of Labour data, in 2011 persons in informal empl oyment represented 69.7% 
(60.4%, 2010) of total employment; reportedly, they were  employed mainly in manufacturing (27.3%), trade 
(27%), and services (other than tr ade and transportation) activities (N ational Centre for Labour Market 
Forecast and Information, 2012; and Michigan State Univer sity online information, "Global insights - Vietnam: 
Economy". Viewed at: https://globaledge.msu.edu/Countries/Vietnam/economy ). WT/TPR/S/287 • Viet Nam 
 
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  1.7.  Two bouts of high inflation, in 2008 (23%) and 2011 (18.6%)23, appear to have originated 
from external shocks, but were exacer bated by loose macroeconomic policies.24 While the 2008 
episode was related to large, insufficiently st erilized capital inflows following WTO accession, 
reflecting investor optimism, the 2011 bout followed the large 2009 stimulus package (Box 1.1). It 
was a result of high commodity prices, delayed wi thdrawal of stimulus measures, and failure to 
raise interest rates in a timely manner. Sound macroeconomic management and easing of food prices contributed the most to an overall drop in inflation in 2012. The authorities' target inflation 
rate for 2013 is 6%-6.5%.  
1.3  Balance of Payments 1.8.  Following its chronic trade deficit in 2008 due to the global economic crisis, Viet Nam has 
significantly narrowed its large merchandise trade and current account deficits, and shifted them 
to a surplus since 2011 (current account) and 2012 (trade account). A current account surplus of 
more than US$9 billion in 2012 reflected the si gnificant improvement of the trade balance. 
Between 2008 and 2012, the trade and current acco unt balances as a share of GDP moved from a 
14.3% deficit to a 7% surplus, and from a 12 .1% deficit to a 6.5% surplus, respectively 
(Tables 1.1 and 1.3).
25  
Table 1.3 Balance of payments, 2007-12 
(US$ million) 
    2007  2008  2009  2010 2011 2012  
Current account -7,092  -10,823  -6,608  -4,276  233  9,061  
Goods and services balance -11,332  -13,733  -10,028  -7,597  -3,618  6,964  
Trade balance -10,438  -12,783  -7,607  -5,136  -450  9,884  
Exports 48,561  62,685  57,096  72,237  96,906  114,573  
Imports 58,999  75,468  64,703  77,373  97,356  104,689  
Services balance -894  -950  -2,421  -2,461  -3,168  -2,920  
Receipts 6,030  7,006  5,766  7,460  8,692  9,600  
Transportation 1,879  2,356  2,062  2,306  2,227  .. 
Travel 3,750  3,930  3,050  4,450  5,710  .. 
Other 401  720  654  704  755  .. 
Payments 6,924  7,956  8,187  9,921  11,860  12,520  
Transportation 4,079  4,974  5,508  6,596  8,226  .. 
Travel 1,220  1,300  1,100  1,470  1,710  .. 
Other 1,625  1,682  1,579  1,855  1,924  .. 
Income balance -2,190  -4,401  -3,028  -4,564  -4,834  -6,115  
Credit 1,166  1,357  753  456  395  295  
Debit 3,356  5,758  3,781  5,020  5,229  6,410  
Current transfers  6,430  7,311  6,448  7,885  8,685  8,212  
Private transfers 6,180  6,804  6,018  7,569  8,326  7,912  
Official transfers 250  507  430  316  359  300  
Financial account 18,011  12,341  6,755  6,201  6,490  8,330  
Direct investment 6,797  9,279  6,900  7,100  6,569  7,168  
Viet Nam's direct investment 
abroad -184  -300  -700  -900  -950  -1,200  
Foreign direct investment in 
Viet Nam 6,981  9,579  7,600  8,000  7,519  8,368  
Medium and long term loans 79  1,971  256  1,043  1,615  1,306  
Disbursements 1,404  11,414  5,588  8,386  14,568  16,011  
Scheduled amortization -1,325  -9,443  -5,332  -7,343  -12,953  -14,705  
Short term loans 2,269  992  4,473  2,751  3,285  3,908  
Disbursements 3,640  2,441  6,140  4,671  5,706  7,410  
Scheduled amortization -1,371  -1,449  -1,667  -1,920  -2,421  -3,502  
                                               
23 For four years in a row, Viet Nam has had one of the highest inflation rates in Asia (VDR, 2012). 
24 IMF (2012); and World Bank (2011). 
25 World Bank (2011). WT/TPR/S/287 • Viet Nam 
 
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      2007  2008  2009  2010 2011 2012  
Portfolio investment 6,243  -578  -71  2,370  1,460  1,990  
Assets .. .. -199  -13  349  -103  
Liabilities .. .. 128  2,383  1,111  1,887  
Money and deposits 2,623  677  -4,857  -7,063  -6,439  -6,042  
Banks .. 677  -160  -503  445  107  
Other sectors .. 0  -4,697  -6,560  -6,884  -6,149  
Net errors and omission -720  -1,045  -9,022  -3,690  -5,574  -5,524  
Overall balance 10,199  473  -8,875  -1,765  1,149  11,867  
.. Not available. 
Source: Data provided by the authorities. 
1.9.  According to the IMF, standard measures of reserve adequacy indicate that Viet Nam's 
international reserves remain low.26 Its foreign exchange reserves dropped significantly between 
2008 (a peak year) and 2011 (Table 1.1), due to the impact of the global economic crisis, although reserves were higher than their 2010  level, underpinned by domestic and foreign 
investors' acquisitions of dong assets. In 2012, foreign exchange reserves rose significantly, as a 
result of monetary policy measures to stabilize  the economy (section 1.4.1.1), and had risen 
further by February 2013. 
1.10.  Viet Nam's external debt position has historically been low, but rose from 29.8% of GDP in 
2008 to 41.5% in 2011 (Table 1.1) due to increased demand for capital development related to the country's industrialization and modernization in recent years.
27 Its debt service-to-exports 
ratio deteriorated somewhat in 2009 (Table 1.1); on the other hand, according to the IMF, 
coverage of external short-term debt, at well over 100%, seems adequate. Most of the public and 
publicly guaranteed external debt is concessional with long maturities and a fairly diversified currency composition; large foreign direct investment inflows have provided significant non-debt-
creating financing.
28   
1.4  Key Policy Developments 1.4.1  Macroeconomic policies  
1.4.1.1  Monetary and exchange rate policies 
1.11.  According to the authorities, monetary po licy is set on the basis of a balance between 
controlling inflation and supporting sustainable economic growth. As from 2011, controlling 
inflation and stabilizing the macro-economy became the priority; until then Government policy 
favoured rapid economic growth, and this was be hind the bouts of high inflation in 2008 and 2011 
(section 1.2).
29 Despite the tightening of 2011 monetary-p olicy (Box 1.1), which meant that policy 
interest rates were raised, a credit growth ceiling was imposed (section 4.6.4.1), and investment 
by government and SOEs was contained. The SBV responded to pressure to support economic 
growth by cutting interest rates in five successi ve rounds by a cumulative 5% in 2012, despite the 
risk of another inflationary surge. According to the IMF, the interest rates reduction and a modest 
fiscal support were expected to cushion adverse effects from slowing domestic demand and the 
projected slowdown in Europe and Asia. 
1.12.  According to the IMF, Viet Nam operates a "soft" peg exchange-rate system anchored to the 
U.S. dollar. Its exchange-rate arrangement is classified as "stabilized", and the de jure  
arrangement is floating "under management".30 The dong ( ₫) has faced continuous downward 
pressure due to a persistent trade imbalance. On 11 February 2011, the SBV announced a 
                                               
26 IMF (2012). 
27 According to IMF estimates these indi cators are 32.4% (2008) and 40.9% (2011). 
28 IMF (2012). 
29 EIU (2012c); and IMF (2012). 
30 Pursuant to the Decree No. 160/2006/ND-CP of 28 December 2006, Viet Nam operates a floating 
exchange rate mechanism administered by the State Bank of Viet Nam on the basis of the monetary baskets of 
the countries having trade, borrowing, debt-payment an d investment relations with  Viet Nam according to 
specific macro-economic objectives in each period (Article 39) (IMF, 2012; and IMF, 2011, Appendix Table II.9). WT/TPR/S/287 • Viet Nam 
 
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  devaluation of 9.3% of the inter-bank average ex change rate (or 8.5% of nominal exchange rate) 
of the dong, the seventh and by far the biggest in nearly three years, and narrowed the trading 
band from ±3% to ±1%; it has indicated that the official rate would be set more flexibly to align with market rates.
31 In 2011, the nominal exchange rate of  the dong was devalued by an overall 
10.2% (annual average rate, Table 1.1), or 1.1 percen tage point more than in 2010, while its real 
effective exchange rate (REER) appreciated by 3. 7% (2011), largely reflecting high inflation. 
Following the February 2011 devaluation and subs equent tightening of monetary policy, the 
exchange rate gradually stabilized, the parallel market almost disappeared32, "dollarization" was 
pushed back, confidence in the dong steadily impr oved, and for the first time in three years, the 
dong was trading on the interbank market within the allowed range.33 According to the IMF, the 
dong is broadly in line with fundamentals. Viet Nam's exchange system is free of restrictions on 
the making of payments and transfers for current international transactions, except for those 
exchange restrictions imposed for security reasons.  
1.4.1.2  Fiscal policies 
1.13.  Following a peak fiscal deficit of 7.2% of GDP in 2009, reflecting the impact of the stimulus 
package (Box 1.1), by 2011 the deficit had been gradually brought to its 2007 level of 2.5% of 
GDP (Table 1.1) due largely to revenue collection  exceeding expectations, and significant public 
investment spending reduction, both by the budget and by SOEs.34 According to government data, 
between 2008 and 2012 virtually all fiscal deficit targets were met (except for 2009). The 2012 State Budget highlighted six priorities: fiscal discipline; increasing the relative share of social expenditure and enhancing public investment efficiency; "equitization" and oversight of SOEs 
(section 1.4.2.2); accountability of decentralized service delivery units; reducing price volatility; 
and improving efficiency of public administration. Tax collection is a challenge as overdue taxes in the first nine months of 2012 reached 6.8% of total tax collection, with SOEs accounting for over 
13% of the total owed, much less than their contribution to GDP (section 1.4.2.2).
35 Despite 
continued high spending on infrastructure and social welfare programmes the fiscal deficit is expected to be kept in the targeted range during 2013-16, due to a forecast of strong growth in 
nominal GDP and high global prices for crude oil, which provides substantial tax and royalty 
revenue.
36 Viet Nam's 10-year Financial Strategy to 2020 envisages an overall decline in revenues 
from tax and charges from an average of 22%- 23% of GDP during 2011-15 to 21%-22% of GDP 
in 2016-20, led by a drop in oil and trade tax revenues, as large offshore oil fields mature, and as 
tariffs are reduced under WTO commitments, regional and bilateral trade agreements (sections 
2.3.2, 2.3.3 and 3.2.2), and unilateral tariff reductions aimed, inter alia , at rendering the tariff 
more uniform for groups of similar products. Do mestic revenues (excluding revenues from crude 
oil) would account for over 70% of total State budget revenue by 2015 and for over 80% by 
2020.37 To compensate partially for this revenue loss, the plan envisages a significant rise in 
revenues from business taxes (corporate income tax, royalties, and value-added tax) and to a 
lesser extent, personal income taxes (section 1.4.2.1).38 
1.4.2  Structural policies 1.14.  In early 2012, Viet Nam unveiled a broad "three pillar" economic reform programme, 
proposing the restructuring of public investment, SOEs, and the banking sector (sections 3.4.8 and 
                                               
31 The authorities indicated that during 2007-10 the volatility of ₫/US$ exchange rate was complicated 
mainly due to the shift of indirect investment cash flows into Viet Nam and the impact of the global economic crisis. Since 2007, the SBV has adjusted the exch ange rate 12 times (10 upwards, 2 downwards). 
32 The Government last attempted to close down the foreign currency parallel market in 2008, when 
inflation hit 28% as the economy overheated amid in flows of hot money, but the trade resumed shortly 
afterwards. In 2011, people were only allowed to buy U.S. dollars for specified purposes such as paying for imports and remitting money ov erseas so many turned to the parallel  market, where the dong has often been 
traded well below the official exchange rate ( Financial Times , "Crackdown fears chill Vietnam's dollar black 
market", 8 March 2011. Viewed at: http://www.ft.com/cms/s/0/ee427a5e-4957-11e0-b051-
00144feab49a.html#axzz2LR6N1yBX  [20 February 2013]; and World Bank, 2011). 
33 World Bank (2011). 
34 IMF (2012). 
35 Viêt Nam News,  "Tax collection below target make s balancing the bu dget a challenge", 
12 October 2012. Viewed at: http://en.vietnamplus.vn/Home/Tax-collection-below-target-challenges-budget-
balance/201210/29160.vnplus  [30 January 2013]. 
36 EIU (2012c). 
37 Prime Minister Decision No. 450/2012/QD-TTg, 18 April 2012. 
38 IMF (2012). WT/TPR/S/287 • Viet Nam 
 
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  4.6.4.1).39 Especially in the context of continued global economic uncertainty, the aim is to shift to 
a higher growth path and, at the same time, avoid recurring macroeconomic imbalances, such as those seen since 2006/07.
40 
1.4.2.1  Tax reform 
1.15.  Several tax reforms have been undertaken wi th the objective of: building a "synchronous", 
consistent, fair, and effective tax system suitable for "socialist-oriented market economy" institutions; setting reasonable incentives to facilitate domestic production and serving as an 
effective tool for macroeconomic management; and ensuring consistent and transparent 
management of taxes, fees and charges, and simp le tax administration procedures, in accordance 
with international practice. New taxation laws were introduced in 2009, including the Corporate 
Income Tax (CIT) Law and the Value Added Tax (VAT) Law, effective 1 January 2009, and the 
Special Sales Tax Law, effective 1 April 2009, except for the provisions on spirits and beer, which 
entered into effect on 1 January 2010. The 2009 income tax structure applied the same CIT rate (25%) to Vietnamese and foreign workers, although certain preferential CIT rates remain, in the 
form of tax incentives; it also broadened the tax base significantly (sections 3.2.6 and 3.4.1).
41 A 
reformed Law on personal income tax (PIT), issued in 2007, entered into effect on 1 January 2009. The 2010 Environmental Protection Tax and Non-Agricultural Land Use Tax, comprising tax 
reductions and exemptions for, inter alia,  land  investment incentives, entered in force in 
January 2012 (section 3.2.6). Furthermore, in February 2012, an export duty exemption was 
introduced for construction materials brought from the domestic market into the tariff-free zones (section 3.4.5) for construction, repair, and maintenance of common technical and social 
infrastructure in these areas.
42 Import tariffs on gas and energy were adjusted according to the 
fluctuations of world fuel prices (section 4.4.2.2). In 2012, the share of trade taxes to GDP and total tax revenue was 2.5% (3.4% in 2007) and 10.1% (12% in 2007), respectively.
43 Despite its 
stated objective of reducing tax incentives (section 3.4.1), the Government maintained certain tax 
holidays, including extension of the declaration time for and reduction of corporate income tax, extension of the payment deadline for VAT, and similar extension and reduction of land rent and 
land use fees in 2011 and 2012; in 2013, further tax incentives for enterprises were passed.
44 
Forgone tax revenue was estimated at ₫5.4 trillion in 2012. 
1.16.  To compensate for the fiscal revenue loss expected under the 10-year Financial Strategy 
(budget) plan (section 1.4.1.2), the Government proposed a five-stage tax reform plan to reduce 
tax incentives in order to create a shift in resource allocation, and encourage and attract 
investment focused on the development of areas wi th extremely difficult socio-economic conditions 
and on a few important sectors under its overall development policy (section 3.4.1). However, 
according to the IMF, some changes in this plan , such as cutting the CIT rate from 25% to 22%, 
and eliminating the top rate of the PIT and rais ing its threshold, which already seems high by 
international standards, threaten to undermine domestic tax revenue.45 Three significant tax policy 
reform measures are seemingly envisaged for 2013 and 2014: revision of the 2008 VAT Law 
                                               
39 Central Intelligence Agency online inform ation, "The World Factbook". Viewed at: 
https://www.cia.gov/library/publication s/the-world-factbo ok/geos/vm.html  [23 January 2013]; and Michigan 
State University online information, "Global insights - Vietnam: Economy". Viewed at: 
https://globaledge.msu.edu/Countries/Vietnam/economy . 
40 World Bank (2011). 
41 Between 1999 and 2009, the CIT rate was reduced th ree times: 32% for domestic enterprises, 25% 
for foreign invested enterprises in 1999 (Law on CIT 1997); 28% for both domestic foreign-capital invested 
enterprises in 2004 (Law on CIT 2003); and 25% since 2009. This CIT rate is applied uniformly, irrespective of private or public ownership. Tax incentives are appl ied to newly established en terprises from investment 
projects in geographical ar eas with difficult or extremely difficult socio-economic conditions, economic zones, 
high-tech zones, investment projects in the fields of  high technology, scientific  research, and technology 
development, investment in developing particularly im portant infrastructure of the State, producing software 
products; enterprises operating in the fields of educatio n, health, culture, sports, and the environment, which 
meet the socialization criteria prescribed in the regula tions by the Prime Minister, the People's credit funds, 
microfinance organizations, and agricultural service cooperatives. CIT incentives for investment expansions, a 
major element for achieving cost reductions associated  with economies of scale and growth in TFP, were 
eliminated (section 4.5.2) (EIU, 2012b). 
42 Ministry of Finance Circular No. 11/2012/TT-BTC, 2 April 2012. 
43 GFS and IMF estimates, as no comprehensive da ta series were availabl e from the authorities. 
44 Government Resolution No. 13/NQ-CP, 10 May 2012; National Assembly Resolution 
No. 29/2012/QH13, 21 June 2012; Resolution No. 02/NQ-CP, 7 January 2013; and World Bank (2011). 
45 IMF (2012). WT/TPR/S/287 • Viet Nam 
 
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  (possibly in 2013); revision of the 2008 CIT Law (idem); and preparatory work aimed at 
modernizing the 2005 Law on Export and Import Ta xes, with implementation expected in 2015.  
1.4.2.2  Privatization 1.17.  Twenty-seven years after the launch of Doi Moi , state ownership remains an important 
feature of Viet Nam's economy of state capitalism; a few SOEs, apparently taking advantage of 
weak oversight and transparency, have expanded their operations into areas beyond their core competency (sections 3.4.8, 4.4.1, 4.4.2, 4.6.4, 4.6.5 and 4.6.6).
46 The state sector remains 
relatively large, accounting for 33% of GDP in 2011 (35.9% in 2007) (Table 1.5). While it has 
become smaller, the trend towards "equitization"47, divestment, mergers, acquisitions, and 
liquidation, was reversed in 2009 and 128 new wholly state-owned enterprises were added, a pattern that  persisted during 2010 and 2011.
48 In 2012, Viet Nam was estimated to have 
1,309 wholly state-owned enterprises managed by up  to 101 state bodies. According to the report 
of the Steering Committee for Enterprise Renovation  and Development, the total pre-tax profit of 
state-owned corporations and groups was ₫127.5 trillion in 2012 (down 5% on 2011); the total 
paid to the budget was ₫294 trillion (down 12% on 2011), and losses were ₫2.2 trillion 
(accumulated losses in the financial statements, totalling ₫17.7 trillion).49 SOEs seem largely 
domestically oriented and not major exporters possibly due, inter alia,  to lack of international 
competitiveness resulting from their relative inefficiency and their dominant position in several 
activities (Table 1.5, section 3.4.8). SOE reform seems to have comprised simultaneous renovation and preservation. There is strong popular support for restructuring SOEs, and it is a top priority in the 2011-2015 Socio-Economic Development Plan. A 2012 Master Plan to restructure SOEs during 
2011-15, set targets, duties, solutions, and implem entation measures focused on core businesses, 
development strategies, production rearrangement schemes, restructuring subsidiary enterprises, 
financing, and reforming corporate governance, and technology.
50 According to a 2011 
classification and restructuring plan, the 1,309 SOEs with 100% state capital are to be: maintained 
under state-ownership (692 enterprises); "equitized",  with the state holding the majority of shares 
(573 enterprises); dissolved (13 enterprises); or transformed into limited liability companies 
(31 enterprises).51 The Prime Minister has approved the overall plans for restructuring of SOEs 
under the supervision of ministries; sectors and localities; economic groups; and 91 corporations for 2011-15. The corporations will try to withdraw  their capital from non-core business areas.
52 
According to the IMF, reform of SOEs is esse ntial to reduce risks to the economy and raise 
productivity, and is critical for longer-term growth prospects. The World Bank and other donors are 
urging Viet Nam to advance the reorganization and restructuring of SOEs, and to improve corporate governance (section 1.4.2.4).
53  
1.4.2.3  Competition policy 
1.18.  Distortions to competition can be the consequence of government intervention policies and 
of weak policies to address anti-competitive prac tices of large business groups, including those of 
SOEs. Viet Nam's challenge is to establish an enabling environment at the level of individual 
industries and sectors by enhancing domestic competition (section 3.4.9), and to increase its 
                                               
46 The authorities indicated that SOEs have the right to conduct business autonomously as all other 
types of enterprises, and expanding business operations into sectors outs ide their core-competency does not 
infringe any law (VDR, 2012; and IMF, 2012). 
47 As of July 2012, around 5,900 state-owned companies had been restructured; 68% of these 
companies were equitized, while the rest became limited companies. 
48 According to the report of the Steering Committe e for Enterprise Renovati on and Development most 
of these new SOEs have been transf ormed from public servic e units, dependant-accounting enterprises, or 
project management boards. Among them 72 enterprises ar e under the supervision of ministries and localities 
mainly providing public services, an d 56 enterprises are subsidiaries of economic groups, corporations, or 
state-owned enterprises operating in the holding company model. 
49 VietnamNet , "When SOEs are governed by 101 agencies", 11 July 2012. Viewed at: 
http://english.vietnamnet.vn/fms/special-reports /53660/when-soes-are-governed-by-101-agencies.html ; and 
"State-owned groups report losses of nearly $62 billion to the PM, 16 Ja nuary 2013 [30 January 2013]. 
50 Prime Minister Decision No. 929/QD-TTg, 17 July 2012; and World Bank (2011). 
51 Prime Minister Decision No. 14/2011/QD-TTg, 3 April 2011, and Prime Minister Decision No. 929/QD-
TTg, 17 July 2012. 
52 Viêt Nam News,  "State-owned groups submit restructuring plans", 8 October 2012. Viewed at: 
http://vietnamnews.vn/Domestic-Press-Highlights/231090/tan-rai-bauxite-plant-set-to-open-next-month.html  
[30 January 2013]. 
53 IMF (2012). WT/TPR/S/287 • Viet Nam 
 
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  exposure to foreign competition in order to achieve more productivity-led growth.54 Its 2004 Law 
on Competition aims to create an equitable an d non-discriminatory competition environment, and 
protect and encourage fair competition. Since 2008, a few competition-related regulatory developments have involved, inter alia,  telecommunications services (ownership, unfair 
competitive practices), the freedom to sell (e.g. distributorship), and price controls (registration of 
17 prices and services, electricity pricing) (sections 3.4.9, 4.6.5.1, and 4.6.7).
55 Since accession to 
the WTO, a gradual opening to foreign services providers in numerous sectors has begun, as has a 
curtailing of subsidies that distort market access and competition (section 3.4.1).56 Nevertheless, 
in some industries (i.e. electricity, aviation, and telecommunications), SOEs have a de facto  
monopoly, with a market share of at least 80% (sections 4.4.2.1, 4.6.5.1, and 4.6.6.2). Other 
heavily regulated industries tend to have some foreign and private-sector participation, but are 
dominated by state-owned oligopolies, e.g. severa l large enterprises with a market share of 10% 
to 40% each.57 The authorities remain concerned about potential job losses and corporate 
insolvencies after free rein is given to market forces in sensitive activities dominated by SOEs.  
1.4.2.4  Corporate governance and anti-corruption action 
1.19.  Corporate governance in Viet Nam seems to be at an early stage of development, with 
opportunities for improvement.58 Regulations were issued in 2007 based on the OECD Principles of 
Corporate Governance; in 2011, Corporate Governance Guidelines were being updated to 
implement the "best international practice on corporate management suitable to the conditions of Viet Nam to ensure a stable development of stock market and a transparent economy". Improved corporate governance, including transparency, usually reduces the cost of capital. 
1.20.  Lack of transparency, and thus lack of pub lic accountability, creates scope for administrative 
discretion and therefore corruption. Viet Nam has shown its resolve and determination to prevent 
and fight corruption, which may have an adverse impact on growth.
59 The fight against corruption 
has moved up the political agenda as changing social norms and growing public anger about 
corruption and the system's perceived unfairness seem to be increasing pressure for change.60 
Viet Nam's legal framework for curbing corruption is now well developed and considered to be 
among the most comprehensive in Asia. It was further strengthened in 2013.61 Viet Nam ratified 
the United Nations Convention against Corruption (UNCAC) in August 2009.62 Nevertheless, weak 
implementation and the lack of independent anti-c orruption agencies still present hurdles to the 
fight against corruption, which seemingly remains rampant and systemic; as a result, Viet Nam 
ranks relatively low in international comparisons.63 
                                               
54 McKinsey Global Institute (2012). 
55 U.S. Commercial Service (2011); and EIU (2012a). 
56 EIU (2012a). 
57 These include cement, sugar refining and sales, minerals, banking and petr oleum (sections 4.4.1, 
4.4.2.2, and 4.6.4.1), where prices tend to be high an d most enterprises seem neither effici ent nor competitive 
(EIU, 2012a). 
58 Among the CG (corporate governance) Scorecar d findings for 2011 was that developments in 
Viet Nam continued to be led by regulatory and le gislative developments. The public-listed companies 
performed poorly regarding: respon sibilities of the board, and disclo sure and transparency. Financial 
information was observed as often being incomplete, late, and unreliable. Shareholders had not been fully exercising their rights as establis hed in law and regulations (Internati onal Finance Corporation and Global 
Corporate Governance Forum in collaboration with th e State Securities Commission of Vietnam, 2011). 
59 Corruption, inter alia , lowers investment, slows economic growth, through a wide range of channels; 
it, inter alia,  reduces the effectiveness of aid flows, and brings about loss of tax revenue (Mauro, 1997). 
60 Global Integrity Report online information "Vietnam Highlights 2011". Viewed at: 
http://www.globalintegrity.org/report/Vietnam/2011  [4 December 2012]. 
61 For example, the Law amending and supplementi ng a number of articles of the 2005 Law on 
anti-corruption became effective on 1 February 2013. It provides more stringent provisions on preventing and 
combating corruption and the creation of independent anti-corruption steering comm ittees at the central and 
local levels is an important step  in the fight against corruption. 
62 However, Viet Nam has announced that it will no t hold to Item 2, Article 66 of the UNCAC, under 
which members have the right to bring disputes concerning the interpretation or application of the UNCAC to international arbitration courts. It ha s also chosen not to adhere to some of UNCAC's optional measures as 
these are not yet covered by national law. For more info rmation on the fight against corruption in Viet Nam, 
see Business Anti-Corruption Portals, "Vietnam Country Profile". Viewed at: http://www.business-anti-
corruption.com/country-profiles/east-asia-the-pacific/vietnam/snapshot/ . 
63 In 2012, Viet Nam ranked 123rd (out of 174 countries) in the Corruption Perceptions Index 2011 . This 
result represents a sign ificant slide from the 112th position (out 182 of countries) in 2011. Nevertheless, the 
authorities indicated that change in ranking cannot be used to comp are performance between the years. WT/TPR/S/287 • Viet Nam 
 
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  1.4.2.5  Labour market policies  
1.21.  Viet Nam's recent labour market liberalization efforts included reducing restrictions on 
labour mobility of underemployed people in rural areas moving to new jobs in urban and "peri"-urban areas, as well as successive modifications to the Labour Code that, inter alia,  
formalized labour-hiring practices.
64 In March 2008, Viet Nam abolished caps on the number of 
foreign workers that foreign-invested enterprises may hire and introduced procedures for obtaining 
work permits for these employees.65 To address labour unrest, the Government has raised 
minimum wages annually since 2008. In 2011, a year of high inflation that led to an effective 
wage decrease, some companies had to increase salaries on four occasions to appease workers and stave off strikes, and the government raised the minimum wage by up to 49% in key industrial areas to ₫2 million (US$95).
66 As of October 2011, Viet Nam eliminated the regionally 
based minimum-wage differences between employees of domestic companies and foreign-invested 
enterprises whose minimum wages were higher in the past.67 A 2012 Labour Code, which entered 
to force in May 2013, deals, inter alia,  with working time, overtime, temporary labour-supply 
companies and business closure to prevent losses during a strike, and introduces new provisions to 
govern manpower outsourcing services, industrial  labour collective agreements, and employment 
of housemaids. There seems to be private-sector  concern over some elements of the 2012 Code 
(e.g. overtime, working time, probationary period) that may affect directly or indirectly labour 
costs, therefore Viet Nam's competitiveness.68  
1.5  Composition and Pattern of Trade 1.22.  The openness of Viet Nam's economy is such that since 2007 its dependence on foreign 
trade has remained high and has been characterized by a rising trend in exports and a drop in 
imports, depending on endogenous an d exogenous economic developments.
69 The ratios of 
exports and imports of goods and services to GDP were 88% and 83.5% in 2012, compared with 
76.9% and 92.7% in 2007 (Table 1.1). Trade in services remains a minor component of 
Viet Nam's foreign trade (Tables 1.1 and 1.3, section 4.6.1).  
1.23.  In recent years, the composition of merc handise trade has changed, reflecting domestic 
economic developments. Labour-intensive and low-valued-added manufacturing (textiles and 
clothing, machinery, section 4.5) and food items remain Viet Nam's main exports, while the country is steadily making inroads into high value-added products.
70 The share of manufactured 
products rose from 54.4% (2007) to 64.2% (2011) (Chart 1.1), while the share of mining (mainly 
fuels) dropped from 21.5% in 2007 to 12.2% in 2011. Agriculture's share of imports rose, while 
the share of mining products dropped (Chart 1.1, Tables A1.1 and A1.2). 
                                                                                                                                               
Furthermore, in 2011 the Global Integrity performance indicators for Viet Nam were considered very weak 
(overall rating 44%) (Transparency Inte rnational online reports. Viewed at: 
http://cpi.transparency.org/cpi2011/results/  and http://www.transparency.org/cpi2012/results 
[24 January 2013]; Global Integrity Report online information "Vietnam Highlights 2011". Viewed at: 
http://www.globalintegrity.org/report/Vietnam/2011  [4 December 2012]; and U.S. Commercial Service, 2011). 
64 VDR (2012). 
65 Decree 34/2008/ND-CP and Circular 8, both issued by the Ministry of Labour, Invalids and Social 
Affairs (MoLISA) in March 2008 (EIU, 2012a). 
66 There were 857 strikes in the first 11 months of 2011, more than double the number in 2010 and in 
2008, the previous record year, when inflation peaked. Wages for unskilled factory workers in Viet Nam remain considerably lower than in China, at around US$100 a month (compared to US$300) ( Financial Times , 
"Vietnam's factories grapple with growing unrest, 19 January 2012. Viewed at: http://www.ft.com/cms/s/0/67380b5c-427e-11e1-97b1-00144feab49a.html#axzz2VLgDI3Zf ). 
67 As a result the same region-bas ed minimum wage level has been a pplied for individuals working for 
Vietnamese companies, enterprises, cooperatives, coop erative groups, farms, households, and individuals as 
well as for other employing organizations (Decree 70/ 2011/ND-CP issued in August 2011 and implemented on 
5 October 2011; and EIU, 2012a). 
68 Labour Code № 10/2012/QH13, 18 June 2012. Viewed at: 
http://www.dfdl.com/easyblog/entry/vietnam-new-labour-code-2012  [15 May 2013]; Viêt Nam News,  
"Employers complain amended Labour Code is "h eavy burden"", 9 May 2013; and European Chamber of 
Commerce in Vietnam (2013). 
69 For example, the 2008 global financial crisis impacted exports via the slowdown in foreign economies, 
the slowdown of the domestic economy, the reduction in commodity prices, and protectionist measures in 
overseas markets. 
70 World Bank (2011). WT/TPR/S/287 • Viet Nam 
 
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  Chart 1.1 Product composition of merchandise trade, 2007 and 2011 
2007 2011
(a)    Exports (f.o.b.)
Other consumer goods
17.7
Manufactures
54.4
Total:   US$48.6 billion Total:  US$96.9 billion  
(b)    Imports (c.i.f.)
Iron & steel
9.3
Chemicals
13.3Transport 
equipment  
5.4
Manufactures
70.0
Non-electrical 
machinery
12.3Electrical 
machines  
10.7
Other semi-
manuf.
6.5Other mining
4.2Fuels
13.9Textiles & 
clothing
8.6Other
consumer goods
4.0
Electrical 
machines
14.7Other mining
0.8
Other semi-manuf.   
6.3Transport 
equipment  
4.3
Chemicals
14.5Manufacture
69.4
Non-electrical 
machinery
10.2
Total:   US$62.8 billion T otal:   US $106.7 b illion Per cent
Manufactures
64.2Mining
12.2
Machinery & transport 
equipment
19.4Agricultural raw 
materials
4.4
Machinery & transport 
equipment
11.5Food
18.6
Fuels
20.7Other
0.6
Other semi-
manufactures  
6.8Agriculture
22.9
Other mining
0.8
Other  
consumer goods
3.9
Mining
16.0Other consumer goods
17.6
Clothing
13.6
Other semi-
manufactures
5.1Agricultural raw 
materials
3.8Food
19.5
Agriculture
12.4Agriculture
9.4
Mining
18.2
Iron & steel
6.8Textiles
2.7Fuels
11.4
Chemicals  
2.1Chemicals  
3.0Other 
0.7
Other 
mining
4.3Fuels
11.7Mining
21.5Agriculture
23.3
Other
2.3Clothing
15.2
Textiles
3.9
Textiles & clothing
8.6Other  
2.5
 
Source: UNSD, Comtrade database (SITC Rev.3). 
 
1.24.  The direction of merchandise trade, which remains relatively diversified, is oriented towards Asia, Viet Nam's main supplier and significant market. There has been a minor shift away from the markets of the EU and the United States, which rema in the main individual export destinations for 
Vietnamese products. According to the authorities, this shift resulted from the implementation of 
trade-related commitments (possibly involving trade diversion effects), the application of unfavourable trade measures in Viet Nam's main  export markets (EU, United States, Japan), WT/TPR/S/287 • Viet Nam 
 
- 27 - 
 
  especially for agricultural and fisheries products, and the global economic crisis, which has affected 
bilateral trade relations with major trading part ners. Whereas exports to these and other trading 
partners (e.g., Australia, Japan)71 fell between 2007 and 2011, exports to other Asian partners 
increased, with China's share rising from 7.5% to  11.5% (Chart 1.2, Table A1.3). During the same 
period, the shares of China, Viet Nam's major me rchandise supplier, and Korea (Rep. of) in total 
imports rose; Korea (Rep. of) became Viet Nam's second major individual supplier (Chart 1.2 and Table A1.4). UNESCAP estimates that Viet Nam's regional trade agreements cover 69% of its 
international trade, possibly in both goods and services.
72 I t  r e m a i n s  t o  b e  s e e n  w h e t h e r  t h e  
signing and implementation of the Trans-Pacific Partnership (TPP) Agreement will provide a fresh boost to Vietnamese exports, especially through access to new markets in Latin America (section 2.3.3). 
1.6  Trends and Patterns in Foreign Direct Investment  
1.25.  Following its WTO accession, Viet Nam's foreign direct investment (FDI), surged together 
with a boom in the stock exchange and the real estate sector.
73 FDI inflows peaked in 2008, then 
dropped to a low in 2011 (Table 1.3) as a result of  investors' worries about high inflation, currency 
depreciation, and strained public finances; FDI inflows rose again in 2012.74 Furthermore, between 
2008 and 2011, the total value of licensed projects fell by almost 75%, then rose slightly in 2012 
(Chart 1.3). Nevertheless, according to the authorities, disbursed FDI remained stable over the 
years (US$10 billion to US$11 billion) and a number of measures were undertaken to attract FDI.75 
In 2012, inward FDI in the form of licensed projec ts originated mainly from Japan, Chinese Taipei, 
Singapore, and the EU; 71.6% of the projects we re in manufacturing, while services attracted 
another 26.2% (Chart 1.3). During 2009-11, Viet Nam attracted 11.5% of all Asia-Pacific 
"Greenfield" FDI, mainly in the coal, oil, and natural gas industry.76 Viet Nam aims to attract 
US$15 billion in FDI in 2013.  
1.26.  Up to 2010, foreign investment took two major forms: 64.5% (62% in 2007) was made by 
100% foreign-owned companies, and 35.5% (38% in 2007) through joint-ventures.77 In 2011, 
Foreign Invested Enterprises (FIEs)78 were estimated by the authorities to account for 19% of 
GDP, 56.9% of exports (they seem more efficient and therefore more competitive than SOEs), and 
for 23% of employment (Table 1.4). Although they account for less than 3% of all enterprises in Viet Nam, because of their large size, they account for more than a third of the Government's collection of taxes and fees. FIEs have not only b een the basis for the surge in exports, but they 
have also driven product and market diversification.
79 Overall, Viet Nam's economy remains an 
attractive destination for foreign investors and has potential for long-term growth. However, the risk of macroeconomic instability may curtail economic growth and adversely affect the confidence 
of foreign investors.
80 
 
                                               
71 Furthermore, in the first quarter of 2012, exports to Japan rose by nearly 55% on account of crude 
oil, transportation parts, and seafood, as Japan's domest ic production has been affe cted by the earthquake and 
tsunami (World Bank, 2011). 
72 Nevertheless, according to WTO Secretariat calculat ions, based on UNSD Comtrade data, the share of 
merchandise trade (imports, exports) wi th partners that are signatories of preferential trade agreements with 
Viet Nam was 23.1% in 2011 (UNESCAP, 2011; and World Bank, 2011). 
73 FDI brings with it technological and management  know-how, which contribute to improved TFP. A 
deterrent to FDI is lack of protection for IPRs (Nguyen Manh Hung and Pham Sy An, 2011). 
74 UNESCAP (2012). 
75 These measures include: reviewing the master plan ; projects raising funds for investment; reforming 
administrative procedures to shorten time for licensing; and public information on regulations and incentives for investors. 
76 UNESCAP (2012). 
77 Foreign investment measured as value of fixe d asset and long-term investment of enterprises 
(General Statistics Office of Vietnam, 2011, Table 48). 
78 Foreign direct invested enterprises are enterprises with capital directly  invested by foreigners, entirely 
or partly (joint ventures) (General Statistics Office of Vietnam, 2011, pp. 189-190). 
79 UNCTAD (2008). 
80 UNESCAP (2011). WT/TPR/S/287 • Viet Nam 
 
- 28 - 
 
  Chart 1.2 Direction of merchandise trade, 2007 and 2011  
2007 2011
(a)    Exports (f.o.b.)
Other Asia  
13.4
Asia
51.6
Total:   US$48. 6 billion Total:  US$96.9 billion
(b)    Imports (c.i.f.)
Other Asia  
8.0EU27
8.2EU27
7.3
China
23.0Thailand
6.0
Singapore  
6.0United 
States
2.7
Total:   US$62.8 billio n Total:   US$106.7 billionPer cent
Asia
50.9Other Asia  
15.4
Africa
3.7Japan
12.5
Korea, Rep. of
12.3Korea, Rep. of  
8.5United States
20.8
Singapore
4.6
Other Asia  
9.7United States
17.5
Japan
9.7EU27
17.1
Asia
78.5Asia
82.6
Japan
9.9Hong Kong, China
3.1EU27
18.7Malaysia
3.2
Japan
11.1Malaysia  2.9Australia  2.6
Singapore 
12.1China
7.5Korea, Rep. of
4.9
Korea, Rep. of   
2.6
Other
4.8Other
America
2.3
Malaysia  3.7
Chinese Taipei
11.1Australia
7.8
China
11.5Cambodia  2.5
Chinese Taipei
8.0China
20.3Malaysia  3.6Other   
7.3Other 
5.5
Other   
4.2
Thailand
6.0Other
America
2.8Other
America
3.5Other
America
3.4
United
States
4.3
 
 
Source: UNSD, Comtrade database. 
 WT/TPR/S/287 • Viet Nam 
 
- 29 - 
 
  Chart 1.3 Foreign direct investment projects licensed, 2007 and 2012 
2007 2012
(a)    By economic activity
Real estate activities
28.6
(b)    By country
China
23.0Samoa
5.6
Singapore  
11.9Hong Kong, China
4.5
Total:   US$21.3 billion Total:   US$16.3 billionPer cent
Real estate activities
12.1
Korea, Rep. of
7.9
Korea, Rep. of  
25.3Manufacturing
51.0Manufacturing
71.6
Japan
34.2Japan
6.5
Hong Kong, China
2.8Construction
2.1Wholesale & retail tradea
4.7
Singapore 
12.0Construction
4.7Accommodation & 
food services 
activities
9.2
Other
12.3
British Virigin 
Islands  5.0Chinese Taipei
11.7Information & communication
2.6
Chinese Taipei
16.3China   2.7Malaysia 
5.5Other   
6.9Other 
6.5
Other   
12.8
British Virgin 
Islands
20.7China
2.3
 
a Wholesale and retail trade, including repair of motor vehicles and motorcycles. 
Note: Total refers to total registered capital, including supplementary capital of licensed projects in 
previous years. 
Source:  General Statistics Offi ce of Viet Nam. Viewed at: 
http://www.gso.gov.vn/default_en.aspx?tabi d=503&time=&kw=foreign%20direct%20investment  
[25 January 2013]; and data provided by the authorities.  WT/TPR/S/287 • Viet Nam 
 
- 30 - 
 
  Table 1.4 Indicators of FDI impact in Viet Nam, 2007-11 
    2007 2008 2009 2010 2011 
% of total number of enterprises      
 FIEs 3.2 2.7 2.6 2.5 3.0 
 State-owned enterprises 2.2 1.6 1.4 1.1 1.0 
 Non-state enterprises 94.6 95.6 96.0 96.4 96.0 
% of total employment      
 FIEs 22.8 22.2 21.5 21.4 23.0 
 State-owned enterprises 23.9 20.9 19.5 16.8 14.3 
 Non-state enterprises 53.3 56.9 59.0 61.9 62.6 
% of GDP      
 FIEs 18.0 18.4 18.3 18.7 19.0 
 State-owned enterprises 35.9 35.5 35.1 33.7 33.0 
 Non-state enterprises 46.1 46.0 46.5 47.5 48.0 
% of exports      
 FIEs 57.2 55.1 53.2 54.2 56.9 
 Other (domestic economic sector) 42.8 44.9 46.8 45.8 43.1 
% Net turnover from business of enterprises      
 FIEs 21.3 17.8 18.5 18.8 19.3 
 State-owned enterprises 31.5 28.9 24.9 25.4 26.9 
 Non-state enterprises 47.3 53.3 56.6 55.8 53.8 
Source:  General Statisti cs Office Viet Nam, Statistical Handbook 2011  (tables 42, 44 and 52), and Statistical 
Yearbook 2011  (tables 59 and 222); and data pr ovided by the authorities. 
1.27.  Between 2007 and 2011, FDI outflows grew five-fold, to US$950 million (Table 1.3, 
section 4.4.2.1). By December 2012, Viet Nam had invested US$12.4 billion in 712 projects across 60 countries and territories; most of these investments are in processing, manufacturing, mining, agriculture and forestry, mainly in Lao (PDR), Cambodia, the United States, and Singapore.
81 
 
 
                                               
81 Viêt Nam News, "Viet Nam invests $15b in foreign projects", 5 November 2012. Viewed at: 
http://vietnamnews.vn/Domestic-Press-Highlights/232326/ thailand-considers-hiring-vietnamese-workers.html ; 
and Viêt Nam News,  "Vietnam to attract US$14 bln FDI capital in 2013", 8 January 2013. Viewed at: 
http://english.vietnamnet.vn/fms/business/56392/business-in-brief-8-1.html  [30 January 2013]. WT/TPR/S/287 • Viet Nam 
 
- 31 - 
 
  2  TRADE POLICY REGIME: FRAMEWORK AND OBJECTIVES 
2.1  General Framework 2.1.  According to the 1992 Constitution of the Socialist Republic of Viet Nam (as amended and 
supplemented in 2001), the people exercises State power through the National Assembly and the 
People's Councils.
1 These and other State bodies are organized according to the principle of 
democratic centralism. Pursuant to Article 15 of the Constitution, the State promotes "a multi-component commodity economy functioning in  accordance with market mechanisms under 
the management of the State and following a socialist orientation".   
2.2.  The unicameral National Assembly is the only  body vested with constitutional and legislative 
powers. Its members serve five-year terms.
2 The National Assembly supervises all state activities, 
and the State President of Viet Nam is elected from its membership and is responsible to the 
Assembly. The National Assembly also elects the Prime Minister, the Chief Justice of the Supreme 
People's Court, and the Chief of the Supreme People 's Procuracy. It approves the Prime Minister's 
proposed appointments, and may dismiss or remove from office the deputy prime ministers, 
ministers, and other members of the Government.  
2.3.  The Standing Committee of the National Assembly, inter alia,  supervises the enforcement of 
the Constitution, and laws and resoluti ons adopted by the National Assembly.3 The Standing 
Committee may also issue legal documents (ordinances and resolutions), and has the power to 
suspend the implementation of legal documents i ssued by the Government, the Prime Minister, the 
Supreme People's Court, or the Supreme People's Procuracy if these are considered contrary to the Constitution or to laws and resolutions adopted by the National Assembly.   
2.4.  The Government is the executive organ of the National Assembly. The present Government 
comprises the Prime Minister, 4 deputy prime ministers, 18 ministers, and 4 other members with the rank of minister.
4 International trade issues are generally within the portfolio of the Ministry of 
Industry and Trade, but trade-related matters are al so dealt with by other Ministries and agencies 
such as the Ministry of Finance (customs, tax and pricing policies); Ministry of Planning and Investment, including the Public Procurement Agency and the General Statistics Office; Ministry of 
Agriculture and Rural Development (including fisheries and forestry); Ministry of Natural Resources 
and Environment; Ministry of Health; Ministry of Transport; Ministry of Information and Communication, Ministry of Science and Technology, including the National Office of Intellectual Property of Viet Nam; the Copyright Office of Viet  Nam (under the Ministry of Culture, Sports, and 
Tourism); the State Bank of Viet Nam; and the Viet Nam Competition Authority (under the Ministry 
of Industry and Trade).
5  
2.5.  The Government established a National Co mmittee for International Economic Cooperation 
(NCIEC) in 1998, inter alia,  to strengthen inter-sectoral coordination in policy formulation and 
economic cooperation, and retained this Committee as a coordinating agency for the ministries and agencies after Viet Nam became a WTO Member.
6 The Committee, which includes participation by 
all ministries and selected agencies, is chaire d by the Deputy Prime Minister. The NCIEC is 
                                               
1 The Constitution was amended on 25 December 2001 through Resolution 51-2001-QH10 of Legislature 
X of the National Assembly. The amendments emphasized the importance of promoting a socialist market economy that is innovative, unifor m, and suitable to the country's endogenous economic and political 
conditions. A new Constitution is currently being drafted and foreseen to be adopted in late 2013.  
2 The last elections were held in May 2011.  
3 The number of members of the Standing Committee is decided by the National Assembly. Members of 
the Standing Committee may not simu ltaneously hold cabinet posts. 
4 The four additional cabinet members are the Chairm en of the Government Insp ectorate; the Office of 
the Government; and the State Ethnic Minorities Committe e; and the Governor of the State Bank of Viet Nam. 
5 Under Decision No. 207/QD-TTg of the Prime Minister of 17 February 2012, the Ministry of Justice is 
the lead agency in the drafting of normative legal acts for the National Assembly during its current term 
(2011-16). 
6 Prime Minister's Decision No. 31/1998/QD-TTg of 10 February 1998, as amended by Decisions 
Nos. 70/2002/QD-TTg of 6 June 2002 and 174/2007/QD-TTg of 19 November 2007.   WT/TPR/S/287 • Viet Nam 
 
- 32 - 
 
  attached to the Prime Minister, but located in the Ministry of Industry and Trade, and funded from 
the Ministry's budget.7   
2.6.  The structure of the national government is al so mirrored at the local level (province, district, 
and commune).8 Each level has a People's Council, elected by the inhabitants. The People's Council 
chooses its Chairman and his/her deputies, who form a Standing Council. The People's Council also 
elects the Chairman, Vice Chairman, and other me mbers of the People's Committee, which is the 
executive body of the People's Council as well as the local state administration agency. Other 
committees are formed to deal with specific issues, i.e. economic and budgetary matters, social 
and cultural issues, and legal affairs. The People's Committees are responsible for implementing the Constitution, laws, and documents issued by higher state organs and resolutions of the local People's Council and may, within their areas of competence, also issue and implement decisions 
and directives (Box 2.1). 
Box 2.1 System of legal documents issued in Viet Nam 
Constitution, laws, and resolutions of the National Assembly 
Ordinances and resolutions of the Standing Committee of the National Assembly 
Orders and decisions of the State President 
Decrees of the Government 
Decisions of the Prime Minister 
Resolutions of the Justices' Council of the Supreme People's Court and circul ars of the Chief Justice 
of the Supreme People's Court 
Circulars of the President of the Supreme People's Procuracy 
Circulars of Ministers or Heads of ministry-equivalent agencies 
Decisions of the State Auditor General 
Joint resolutions of the Standing Committee of the National Assembly or the Government and the 
central offices of socio-political organizations 
Joint circulars of (i) the Chief Justice of the Supreme People's Court and the President of the 
Supreme People's Procuracy; of (ii) Ministers or  Heads of ministry-equivalent agencies and the 
Chief Justice of the Supreme People's Court or th e President of the Supreme People's Procuracy; 
of (iii) Ministers or Heads of ministry-equivalent agencies  
Resolutions of the People's Councils, decisions and directives of the People's Committees 
 
2.7.  The Constitution has the highest legal status. Legal normative documents issued by a lower 
state organ must be consistent with those issued by higher state organs. In case of conflicting provisions in legislation issued by the same state organ, the most recently promulgated provisions 
prevail. The applicability of international treaties is governed by Law No. 41/2005/QH on 
Conclusion, Accession and Implementation of Tr eaties. Treaties acceded to by Viet Nam are 
ratified by the National Assembly and the Stat e President, and approved by the Government. 
2.8.  The Supreme People's Court is the highest court of appeal. Specialized courts include the 
Criminal Court, the Civil Court, the Central Mili tary Court, and the Appeal Court. The National 
Assembly may also set up special tribunals in certain circumstances. People's courts exist at the provincial level as well as at the lower local level (rural and urban districts, provincial capitals and 
cities). Administrative decisions may be challenged at the Administrative Court, a judicial tribunal 
in the system of People's Courts. The role of the Supreme People's Court is to guide courts in the 
uniform application of laws, supervise trials at tribunals and other courts at different levels, and to 
submit bills to the National Assembly and draft ordinances to the National Assembly's Standing 
                                               
7 The Minister of Industry and Trade is Vice Chairman of the Committee and, as  Head of the 
Government's delegation  for international economic/tra de negotiations, the Vice Mini ster of Industry and Trade 
has been assigned as Secretary-General of the NCIEC. Other ministries are represented at the level of Vice 
Minister.   
8 Viet Nam is divided into 58 provinces and 5 municipalities (Hanoi, Haiphong, Da Nang, Ho Chi Minh 
City, and Can Tho). WT/TPR/S/287 • Viet Nam 
 
- 33 - 
 
  Committee. The Supreme People's Procuracy observes the implementation by state organs and 
ensures that Vietnamese citizens follow the law. 
2.9.  Laws, regulations, and administrative procedures of general application issued by the central 
state agencies are normally published in the Official Gazette  before they become effective.9 The 
effective date of a legal document is stipulated in the document itself, but may not be less than 
45 days from the date of promulgation or signatur e. In addition, the full texts of draft legal acts 
are posted on the Government's website and/or the lead drafting agency's website at least 60 days 
prior to approval.10 Agencies, organizations, and individuals may comment on these draft texts.   
2.10.  Viet Nam's legal and regulatory system applies a "positive approach" towards government 
agencies and public servants (i.e. prescribing their behaviour), while a "negative approach" (i.e. stipulating what is not allowed) is applied to the general public, including businesses and 
entrepreneurs. The extent to which new legislation abrogates or supplements existing legislation is 
not always evident. Thus, although not recognized as legal normative documents by law, many ministries have relied on "official letters", notices, or guidelines to set policy and clarify 
implementation issues. In 2005, the Prime Minister and the Government Office issued legal 
documents to make the use of "official letters" more transparent and consistent with WTO rules.
11 
Furthermore, the Law on Promulgation of Legal Documents (No. 17/2008/QH12) of 3 June 2008 
stipulates that official letters, notices, or guidelines have no legal normative or binding content.   
2.11.  Commercial and economic disputes are settled by the courts pursuant to the 2004 Civil 
Procedure Code and the Law on Enforcement of Civil Judgements (No. 26/2008/QH12) of 14 November 2008. The time-limit for initiating  a lawsuit is two years from the date of 
infringement of the lawful rights. The first instance court's decision may be appealed to the next 
level within 15 days of the publication of the ju dgement. The settlement of economic disputes by 
arbitration is governed by the Law on Commercial Arbitration (No. 54/2010/QH12) of 
17 June 2010.  
2.2  Trade Policy Objectives 2.12.  Since its economic reforms began in the mid-1980s, Viet Nam has been seeking closer ties 
with the rest of the world through increasing trade. In the process of economic restructuring and 
comprehensive international integration, the Vietnamese Government is strongly committed to the multilateral trading system and considers it the main focus of Viet Nam's economic integration policies. The WTO's binding and transparent rules are considered the most efficient mechanism to 
guard against protectionism and to address global trade issues. 
2.13.  In the Doha Round, Viet Nam has been stressing the importance of the development 
dimension of the Round, and supports an outcome that fully addresses the development interests 
and concerns of developing and least developed Members. In the rules area, anti-dumping and 
countervailing measures in the fisheries sector are of particular interest. 
2.14.  Since its accession to the WTO, Viet Nam has continued to complete its market economy 
institutions and engage with trading partners to recognize Viet Nam as a market economy. In early 
2013, nearly 40 countries had recognized Viet Nam's market economy status, including the members of ASEAN, China, Japan, Korea, Austra lia, EFTA member States, Argentina, and South 
Africa. Viet Nam has also been engaging in technical consultations with other major partners 
regarding their early recognition of Viet Nam's status.  
                                               
9 Legal documents issued in response to emergency situations (e.g. a natural disaster or epidemics 
outbreak) may take effect on the date of promulgation or signature, provided they are posted immediately on 
the website of the issuing agency and announ ced in the mass media, and published in the Official Gazette  no 
later than 20 days after promulgation or signature. Except for these situations  and for legal documents 
containing state secrets, no legal document ma y take effect without prior publication in the Official Gazette .  
10 The websites are listed in Table 23 of the report of the working party on the accession of Viet Nam 
(document WT/ACC/VNM/48). Following the merger of th e Ministries of Industry and Trade in 2007, the 
website is: www.moit.gov.vn . Likewise, the Ministry of Information an d Communication (merger of the Ministry 
of Post and Telecommunication with some departments of  the Ministry of Culture an d Information) website is: 
www.mic.gov.vn .  
11 Directive No. 08/2005/CT-TTg and Circular No. 04/2005/TT-VPCP.   WT/TPR/S/287 • Viet Nam 
 
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  2.3  Trade Agreements and Arrangements 
2.3.1  WTO 2.15.  Viet Nam became the WTO's 150
th Member on 11 January 2007. Viet Nam agreed to comply 
with key WTO Agreements such as the Agreements on Trade-Related Aspects of Intellectual 
Property Rights, Technical Barriers to Trade, the Application of Sanitary and Phytosanitary 
Measures, and customs valuation from the date of accession without recourse to any transitional period. Viet Nam undertook specific commitments under the GATS in 11 services sectors and 
110 subsectors. It did not commit to initiate negotiations to join the plurilateral WTO Agreements 
on Government Procurement or Trade in Civil Aircraft, but agreed to full participation in the Information Technology Agreement with zero tariff s to be applied on the covered products either 
immediately or within transitions ending in 2010-14 for some tariff line items. Viet Nam's tariff 
commitments on agricultural and non-agricultural products are detailed in Chapter 3.   
2.16.  In the area of trade-related investment measures (TRIMs), Viet Nam eliminated 
programmes linking incentives to local content prior to accession, while investment incentives 
contingent upon export performance were curtaile d for new investments, and would be phased out 
over a five-year period, starting from the date of accession, for existing beneficiaries. As for trading rights, except for specific goods reserved for "state trading", Vietnamese traders have held 
full trading rights since Viet Nam's WTO accession. Rights for foreign individuals and enterprises 
were implemented as per Viet Nam's WTO commitments with effect from 1 January 2009 for the importation of certain products.
12 Agricultural export subsidies, which Viet Nam had introduced in 
the form of export bonuses for certain commodities  during the accession process, were eliminated 
from the date of accession.  
2.17.  Since Viet Nam became a WTO Member (and until end-May 2013), it has submitted 
130 notifications relevant to its WTO obligations; the majority of the communications concern SPS 
(47) and TBT (35) matters (Table 2.1). Notable gaps  exist for agricultural and industrial subsidies, 
where Viet Nam has yet to submit data on support provided since 2007 pursuant to its obligations under the Agreement on Agriculture and Article 25 of the Agreement on Subsidies and 
Countervailing Measures. Moreover, despite the importance of the public sector in its economy, 
Viet Nam has not provided updated information or no tifications pertaining to state trading. In the 
area of customs valuation, it has reported no changes in laws and regulations. 
2.18.  Viet Nam has been involved in two cases under the WTO Dispute Settlement Mechanism, in 
both cases as a complainant. In United States – Anti-dumping measures on certain shrimp from 
Viet Nam (DS404), the Panel found certain practices of the US Department of Commerce, particularly in relation to the use of zeroing in the calculation of dumping margins and the 
application of a "Viet Nam-wide entity" rate, to be inconsistent with several provisions of the 
Anti-Dumping Agreement of the WTO and Articl e VI:2 of the GATT 1994. The panel report, 
recommending that the United States bring its measures into conformity with its obligations, was 
adopted on 2 September 2011. The mutually agreed reasonable period of time to implement the 
ruling expired on 2 July 2012. The second complaint also concerns a number of US anti-dumping measures on certain frozen warmwater shrimp. The DSB established a panel (DS429) at its meeting on 27 February 2013. Viet Nam has reserved its rights as third a party in 16 disputes 
involving other WTO Members.
13  
                                               
12 Decision No. 10/2007/QD-BTM of 21 May 2007. 
13 The cases are (i) United States – measures relati ng to shrimp from Thailand (DS343); (ii) India – 
additional and extra additional duties on imports from th e United States (DS360); (iii ) EU – tariff treatment of 
certain information technology products (DS375, DS376, DS377); (iv) United States – measures affecting imports of certain passenger vehicle and light truck ty res from China (DS399); (v) United States – use of 
zeroing in anti-dumping measures involving products from Korea (DS402); (vi) EU – anti-dumping measures on certain footwear from China (DS 405); (vii) China – countervailing an d anti-dumping duties on grain 
oriented flat-rolled electrical steel from the United States (DS414); (viii) United States – anti-dumping 
measures on shrimp and diamond sawblades from Chin a (DS422); (ix) India – measures concerning the 
importation of certain agricultural products from the Un ited States (DS430); (x) China – measures related to 
the exportation of rare earths, tungsten and molybdenum (DS431, DS432, DS433); (xi) United States – 
countervailing duty measures on cert ain products from China (DS437); and (xii) United States – countervailing 
and anti-dumping measures on certain products from China (DS449). WT/TPR/S/287 • Viet Nam 
 
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  Table 2.1 Most recent WTO notifications, end-May 2013 
Agreement Requirement/content Periodicity WTO document and date  
(latest document if recurrent) 
Agreement on Agriculture 
Article 18.2 Table MA.1 – Administration of 
tariff quotas Annual G/AG/N/VNM/1, 3 November 2011 
Article 18.2 Table MA.2 – Imports under 
tariff quotas Annual G/AG/N/VNM/2, 3 November 2011 
Agreement on Implementation of Article VI of the GATT 1994 (Anti-dumping) 
Article 16.4 Reports concerning anti-
dumping actions Ad hoc  
 Semi-annual reports of anti-
dumping actions (taken within 
the preceding six months) Semi-annual G/ADP/N/223/Add.1, 20 April 2012 
Article 18.5 Laws and regulations Once, then 
changes G/ADP/N/1/VNM/1, 9 October 2009 
Articles 16.5 Competent authority to initiate 
anti-dumping investigations Once, then 
changes G/ADP/N/14/Add.28 
G/SCM/N/18/Add.28, 14 October 2009 
Enabling clause 
Enabling clause 
– paragraph 
4(a) Notification of regional trade 
agreement 
ASEAN-India Free Trade Area 
 
ASEAN-Korea FTA   
 
WT/COMTD/N/35/Add.1, 31 May 2012 
WT/COMTD/N/35, 23 August 2010 
S/C/N/560-WT/COMTD/N/33, 
8 July 2010 
Agreement Implementation of Article XXIV:7(a) of the GATT 1994 (Free-trade areas)  
Article XXIV of 
the GATT 1994  Free-trade area for trade in 
goods  
ASEAN-Korea 
ASEAN-Australia/New Zealand  
 
ASEAN-Japan 
 
Viet Nam-Japan Ad hoc  
 
WT/REG287/N/1, 8 July 2010 
WT/REG284/N/2, 9 May 2012 and 
WT/REG284/N/1, 9 April 2010 
WT/REG277/N/1, 14 December 2009 
 
WT/REG275/N/1, 2 October 2009 
General Agreement on Trade in Services 
Article V:7 (a) 
of GATS Free-trade agreements 
ASEAN-Australia/New Zealand 
 
ASEAN-Korea, Rep. of 
 
 
Viet Nam-Japan 
ASEAN-China   
S/C/N/545/Add.1, 9 May 2012 and 
S/C/N/545, 9 April 2010 
S/C/N/559/Add.1, 3 May 2011, 
S/C/N/560/Add.1, 3 May 2011, and 
S/C/N/560, 8 July 2010 
S/C/N/513, 2 October 2009 
S/C/N/463, 2 July 2008 
Agreement on Import Licensing Procedures 
Article 1.4(a) 
and/or 8.2(b)  Laws and regulations  G/LIC/N/1/VNM/2, 29 January 2013 
G/LIC/N/1/VNM/1, 30 April 2012 
Articles 5.1, 
5.2, 5.3 Notification of an automatic 
import licensing programme  Ad hoc G/LIC/N/2/VNM/1, 30 April 2012 
Article 7.3 Replies to questionnaire on 
import licensing procedures  G/LIC/N/3/VNM/1, 12 May 2011 
Agreement on Rules of Origin 
Articles 5.1 
and 5.2 Judicial decisions and 
administrative rulings and 
modifications of rules of origin Ad hoc G/RO/N/79, 1 June 2012  
G/RO/N/68, 22 February 2011  
 
Agreement on Safeguards  
Article 12.1(a) 
– (c), and 
Article 9.1, 
footnote 2 Investigations, findings, and 
decisions related to safeguard 
measures Ad hoc G/SG/N/7/VNM/1, 15 May 2013 
G/SG/N/6/VNM/2, 11 January 2013 
G/SG/N/9/VNM/1, 7 April 2010 
G/SG/N/8/VNM/1, 12 January 2010 
G/SG/N/6/VNM/1, 31 July 2009 
Article 12.6 Laws and regulations Once, then 
changes G/SG/N/1/VNM/1, 30 September 2009 WT/TPR/S/287 • Viet Nam 
 
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  Agreement on the Application of Sanitary and Phytosanitary Measures  
Article 7 and 
Annex B Laws, regulations and 
emergency measures 
Enquiry points Ad hoc 
 
Ad hoc G/SPS/N/VNM/35, 22 November 2012 
 
G/SPS/N/VNM/36, 29 November 2012 
Agreement on Subsidies and Countervailing Measures  
Article 25.11 Semi-annual report on 
countervailing duty actions Semi-annual G/SCM/N/219/Add.1/Rev.1 
20 October 2011 
G/SCM/N/228/Add.1, 19 October 2011 
Article 25.12 Competent authority to initiate 
countervailing investigations Ad hoc G/ADP/N/14/Add.28 
G/SCM/N/18/Add.28, 14 October 2009 
Article 25 (and 
Article XVI.1 of 
the GATT 
1994) Notification of support 
programmes  2005-07 G/SCM/N/155/VNM, 13 March 2013 
Agreement on Technical Barriers to Trade  
Article 10.6 Proposed and adopted technical 
regulations/conformity 
assessment procedures   
Articles 2.9 
and 5.6   G/TBT/N/VNM/26, 31 January 2013 
and Corr.1 of 12 February 2013  
Articles 2.10 
and 5.7   G/TBT/N/VNM/22, 3 December 2012 
Article 15.2   G/TBT/2/Add.98/Rev .2, 12 September 
2012 
Annex 3C Acceptance of code of good 
practice Ad hoc G/TBT/CS/N/175, 20 February 2009 
Agreement on Trade-Related Aspects of Intellectual Property Rights  
Article 63.2 Laws and regulations 
 
 
Checklist of issues  Once, then 
changes IP/N/1/VNM/E/5, 28 May 2010 
IP/N/1/VNM/O/1, 28 May 2010 
IP/N/1/VNM/4, 26 May 2010 
IP/N/6/VNM/1, 1 February 2008 
Article 69 Contact points Once, then 
changes IP/N/3/Rev.11/Add.2, 23 June 2010 
Source: WTO Secretariat. 
2.3.2  Association of Sout heast Asian Nations (ASEAN) 
2.19.  Viet Nam became the seventh member of ASEAN on 28 July 1995, an important first step 
towards closer regional economic integration. In 2003, ASEAN leaders decided to establish an ASEAN Community. The decision was affirmed at the 12
th ASEAN Summit in 2007, where the 
leaders signed the Cebu Declaration on the A cceleration of the Establishment of an ASEAN 
Community by 2015. The ASEAN Community has th ree pillars: the ASEAN Political-Security 
Community; the ASEAN Economic Community; and the ASEAN Socio-Cultural Community. Each pillar has a blueprint which, together with the Initiative for ASEAN Integration (IAI) Strategic 
Framework and IAI Work Plan Phase II (2009-2015), form a Roadmap for and ASEAN Community 
2009-15. 
2.20.  Viet Nam began granting preferential treatment for goods to its ASEAN partners under the 
Common Effective Preferential Tariffs (CEPT) in 1996. The process was foreseen to be completed 
by 2006 for goods on the Inclusion and Temporary Exclusion lists, and for Viet Nam's list of sensitive agricultural products by 2013. The CEPT was subsequently incorporated into the ASEAN Free Trade Area (AFTA) in 2002. Building on CEPT/AFTA, ASEAN members signed the ASEAN Trade 
in Goods Agreement (ATIGA) in February 2009, consolidating all existing ASEAN initiatives, 
obligations, and commitments on trade in goods into a single document. ATIGA entered into force on 17 May 2010.   WT/TPR/S/287 • Viet Nam 
 
- 37 - 
 
  2.21.  Regarding tariff liberalization, Viet Nam (together with Cambodia, Lao PDR, and Myanmar) 
is committed to the elimination of tariffs in intra- ASEAN trade by 2015, with additional flexibilities 
for up to 7% of the tariff lines on the covered list applicable until 2018.14  
2.22.  ATIGA includes provisions on the elimination of non-tariff barriers further to WTO 
requirements and the 2006 ASEAN Work Programm e on the Elimination of NTBs. Viet Nam and 
Thailand, who continue to apply tariff-rate quotas, are to remove them under three commitment packages. For Viet Nam, these commitments will be implemented during 2013-15, with flexibility 
allowed until 2018, when it will decide whether to continue to apply tariff-rate quotas.   
2.23.  An ATIGA work programme on trade facilitation covers customs procedures, trade 
regulations and procedures, standards and confor mity assessment, SPS, an ASEAN single-window 
customs mechanism, etc. According to the Vietname se authorities, ATIGA embraces nine principles 
for trade facilitation similar to the principles under the Asia-Pacific Economic Co-operation (APEC). 
Compared with the CEPT-AFTA framework, ATIGA also introduces more flexible rules of origin such as the substantial transformation criterion (HS 4-digit level) and product specific rules, simplified 
"operational certification procedures", and harmonization of national procedures to the extent 
possible.
15 
2.24.  The ASEAN Framework Agreement on Services (AFAS) involves a gradual increase in 
liberalization, implemented under ten packages of commitments, the last to be completed by 
2015. According to the Vietnamese authorities, the 7th AFAS package was similar to the level of 
market opening established through Viet Nam's WTO commitments, with the addition of commitments on production management consulting services; specialty photography services, 
except aerial photography; packaging services ; and printing and publishing for packaging.
16 The 
8th AFAS package provides further liberalization of mode 3 for leasing and rental services 
concerning other machinery and equipment without operator (CPC83109), and packaging services 
(CPC876); as well as reduced limitations on market  access in mode 3 for publishing and printing 
on a fee or contract basis (CPC88442), social services (CPC933), rental services of sea-going 
vessels with operator (CPC7213), repair services of other transport equipment on a fee or contract 
basis (CPC8868*), and passenger and freight transportation CPC 7111 and 7112). 
2.25.  The ASEAN Comprehensive Investment Agreement (ACIA), signed by ASEAN economic 
ministers in February 2009, is set to replace existing provisions contained in the ASEAN Investment Agreement (AIA) and the ASEAN Investment Guarantee Agreement (IGA). The ACIA 
encompasses, in a single document, provisions on investment liberalization; investment 
protection, promotion and facilitation; automatic MFN treatment; arbitration; etc. The ACIA includes a reservation list for each member, to be  reviewed for gradual elimination of reservations 
to the minimum level by 2015. The ACIA entered into force on 29 March 2012.  
2.3.3  Other regional and bilateral agreements 2.26.  Viet Nam has been pursuing trade liberalization in Asia and the Pacific together with its 
ASEAN partners, complemented by additional bilateral initiatives. Following the conclusion of a 
framework on comprehensive economic cooper ation in November 2002, ASEAN and China 
launched negotiations resulting in the signature of a trade in goods agreement in November 2004, 
                                               
14 The other members of ASEAN (Brunei Darussalam, In donesia, Malaysia, Philippines, Singapore, and 
Thailand) committed to the full elimination of tariffs in  intra-ASEAN trade by 2010. According to ASEAN, import 
duties on 99.65% of all tariff lines under the CEPT-AFTA had been eliminated by 1 January 2010. For the newer ASEAN members (Viet Nam, Cambodia, Lao PDR, and Myan mar), 98.96% of their tariff lines had been brought 
within the 0-5% range (Joint media statement of the 42
nd ASEAN economic ministers' meeting in Da Nang 
(Viet Nam), 24-25 August 2010. Viewed at: http://www.asean.org/news/asean-statement-
communiques/item/joint-media-statement-of-the-42nd- asean-economic-ministers-aem-meeting-da-nang-viet-
nam-24-25-august-2010-2 ). 
15 Electronic processing of certificates  of origin remains under discussion.  
16 The 7th AFAS package also implied further commitments in mode 1 for leasing or rental services 
concerning other machinery and eq uipment without operator (CPC 83109), and in mode 3 for veterinary 
services, removal of limitations on market access (MA) in  mode 3 for taxation, archit ectural, engineering, and 
integrated engineering services, removal of limitations on national treatment (NT) in mode 3 for management 
consulting services, and in mode 1 for sewage serv ices, cleaning services of exhaust gases and noise 
abatement services. For urban planning and landscape se rvices (CPC 8674), the package involved liberalization 
in mode 3 (MA) and in mode 1 (NT).   WT/TPR/S/287 • Viet Nam 
 
- 38 - 
 
  and an agreement on trade in services in 2007. Si nce then, Korea, Japan, Australia/New Zealand, 
and India have completed the negotiations to establish free-trade areas with ASEAN (Table A2.1).  
2.27.  Having initially participated as an "associate member", Viet Nam announced its decision to 
be a full participant in the negotiations on a Trans-Pacific Partnership (TPP) Agreement at an APEC 
Ministerial Meeting in November 2010.17 The TPP is aimed at enhancing trade and investment 
flows among participants. Negotiations to estab lish a free-trade agreement between Viet Nam and 
the EU were launched officially on 26 June 2012. The parties have thus far (May 2013) completed 
three rounds of negotiations. Somewhat in parall el, Viet Nam and the member states of EFTA 
(i.e. Iceland, Liechtenstein, Norway, and Switzerlan d) have also begun the process to establish an 
FTA. Three rounds of negotiations have been completed.18 Negotiations have also been initiated for 
the conclusion of bilateral FTAs with Korea and the customs union of Belarus, Kazakhstan, and the 
Russian Federation.  
2.28.  According to the Vietnamese authorities, Viet Nam's participation in the ASEAN FTAs has 
contributed to the continuous growth of bilateral trade. Viet Nam has taken advantage of the 
agreements to boost exports of competitive prod uct lines in agriculture, fisheries, textiles, 
footwear, and furniture. The agreements have facilitated the introduction of Vietnamese products into some markets, while Vietnamese exporters ha ve been pushed to improve product quality and 
design to meet high standards and consumer expectations. Utilization ratios differ among the 
FTAs, but have generally been on the rise.
19 The FTAs have also boosted foreign direct 
investments in Viet Nam. The economic partnership agreement between Viet Nam and Japan has highlighted the complementarities of the two economies, allowing Vietnamese exports of 
commodities and basic consumer goods to expand rapidly, while imports of Japanese machinery 
and equipment and other manufacturing inputs have grown at a similar pace. 
2.29.  The effects of the FTAs on the institutiona l framework in Viet Nam have so far been more 
limited. Except for the issuance of circulars to  implement tariff concessions and rules of origin, 
commitments have been implemented within the existing legal and administrative framework. However, the introduction of new instruments such as the single-window customs mechanism and 
self-certification of origin will involve modification of laws and ordinances. 
2.30.  Viet Nam has concluded agreements for the avoidance of double taxation and the 
prevention of fiscal evasion with 62 countries and territories. 
2.3.4  Other trade agreements 
2.31.  Prior to WTO accession, Viet Nam had concluded bilateral trade agreements with 
40 partners. The principal aim of these agreements was to establish trade relations based on reciprocal most-favoured-nation treatment.
20 The agreements were typically short documents with 
fairly standard text. Only one was much more  elaborate, i.e. the Agreement Between the 
United States of America and the Socialist Republic  of Viet Nam on Trade Relations, which entered 
into force in December 2001. This agreement provided substantially better access for Vietnamese 
exports to the United States as average tariffs fell from 40% to less than 3%. In return, Viet Nam 
agreed to open up some of its services sect ors (banking, insurance, and telecommunications), 
enhanced protection of intellectual property rights, and improvements in its foreign investment regime.
21 M o s t  o f  V i e t  N a m ' s  c o m m i t m e n t s  w e r e  p h a s e d  i n  o v e r  t h r e e  t o  f i v e  y e a r s .  T h e  
agreement also included tariff reductions by Viet Nam on some 250 products, 80% of which were 
                                               
17 At present, the TPP negotiations encompass Australia, Brunei Darussalam, Chile, Malaysia, 
New Zealand, Peru, Singapore, Viet Nam, and the United States.     
18 EFTA Secretariat online information. Viewed at: http://www.efta.int/free-trade/free-trade-news/2012-
10-19-efta-vietnam-2nd-rnd-fta-neg.aspx . 
19 Based on the use of the preferential certificates of origin, the Vietnamese authorities estimate that 
31.3% of Viet Nam's exports to its FTA partners benefited from the trade preferences by the end of 2011.  
20 Since its WTO accession, Viet Nam has concluded only one further bilatera l agreement in the same 
format, i.e. with Angola (2008).   
21 U.S. labour unions were critical of the agreement as it did not include provisions on minimum labour 
standards or environmental protection.   WT/TPR/S/287 • Viet Nam 
 
- 39 - 
 
  in the agriculture sector.22 However, the two parties agreed on more extensive reductions in 
Viet Nam's MFN tariff regime through the WTO accession process.  
2.32.  Following Viet Nam's accession to the WTO, Viet Nam and the United States signed a Trade 
and Investment Framework Agreement (TIFA) on 21 June 2007. The TIFA did not introduce 
additional specific concessions or commitments, but established a joint framework (United States-
Viet Nam Council on Trade and Investment), inter alia,  for the monitoring of implementation of 
obligations under the WTO Agreement and the bilate ral trade agreement. Negotiations to conclude 
a bilateral investment treaty were launched in June 2008.  
2.4  Investment regime 2.33.  Viet Nam's investment regime is based on the Enterprise Law (No. 60/2005/QH-11) and the 
Investment Law (No. 59/2005/QH-11), both adopted in November 2005 and in force since 
1 July 2006. The Enterprise Law provides for enterp rises to be established in the form of limited 
liability companies, shareholding companies, pa rtnerships, or sole proprietorships. The law 
classifies sectors in which business establishment is (i) prohibited; (ii) conditional; (iii) requires 
minimum legal capital; (iv) requires a professional licence; (v) is reserved for partnerships or 
private enterprises; and (vi) other sectors. The prohibited and conditional business sectors are listed in Decree No. 59-2006-ND-CP of 12 June 2006 (currently under revision).
23   
2.34.  The Investment Law also prohibits investments considered detrimental to national defence 
and security, historical and cultural ethics, Vietnamese traditions and fine customs, and the environment. Investment is conditional in (i) sectors having an impact on national defence and security, social order and safety, and public heal th; (ii) banking and finance; (iii) recreational 
services; (iv) education and training; (v) real estate, (vi) culture, information, press, and 
publication; and (vii) surveying, prospecting, ex ploration and mining of natural resources. In 
financial services and legal services, investment is also regulated under specific laws, i.e. the Law 
on Credit Institutions, the Law on Insurance Business, the Law on Securities, and the Law on 
Lawyers (as amended in 2012).
24  
2.35.  Vietnamese investors may obtain a busine ss registration certificate under the Enterprise 
Law. For investment projects valued at less than ₫15 billion and not in a conditional investment 
sector, no further formalities are necessary. Foreign investors may apply for an investment certificate, which will also serve as a business registration certificate. This certificate should normally be granted within 15 days.
25 In addition, "investment registration" applies to foreign 
investment projects valued at less than ₫300 billion and to domestic investment projects valued 
between ₫15 billion and ₫300 billion. All investment projects (domestic and foreign) worth more 
than ₫300 billion as well as all projects in the cond itional sectors are subject to an "investment 
evaluation", focusing on compliance with master plans for technical infrastructure, land use, 
construction, and the use of natural resources and minerals; compliance with land use requirements; the implementation schedule for th e project; and environmental conditions. The 
investment evaluation should be completed within 30 days but the deadline may be extended up 
to 45 days. According to the Investment Law (Artic le 47), the National Assembly will determine the 
evaluation process and criteria on a case-by-case basis for "important national investment projects", e.g. particularly large investments, in specific locations, or projects having a major 
environmental impact.   
                                               
22 The agreement with Viet Nam marked the first time that the United States negotiated and obtained 
tariff reductions in return for MFN tr eatment in the U.S. market vis-à-vis a "Title IV" country, i.e. subject to 
trade restrictions under the Trade Act of 1974, Title IV (Manyin, 2002). 
23 The lists are reproduced in the report of the working party on the accession of Viet Nam (WTO 
document WT/ACC/48), Annex 2, Tables 1 and 2.   
24 The Law on amending and supplementing a number of articles of the Law on Lawyers 
No. 20/2012/QH13 of 20 November 2012.  
25 Investment certificates are generally delivered by the People's Committee where the project is located 
or by the Management Board of the respective zone for investment proj ects in industrial zones, export 
processing zones, high-tech zones, and economic zones.  Investment certificates for oil and gas projects are 
granted by the Ministry of Industry and Trade, and the Ministry of Finance approves insurance projects. The 
Ministry of Planning and Investment grants investment  certificates for build-operate-transfer projects of 
national importance etc., whereas provincial-level People 's Committees may grant cert ificates for BOT projects 
of local significance. In late 2012, the Vietnamese authorities had approved more than 14,400 foreign investment projects with total registered capital of US$208 billion.  WT/TPR/S/287 • Viet Nam 
 
- 40 - 
 
  2.36.  With the promulgation of the enterprise and investment laws, Viet Nam went a long way 
towards equalizing the treatment accorded to Viet namese and foreign investors. Moreover, Decree 
No. 102/2010/ND-CP of 1 October 2010 guiding certain provisions of the Enterprise Law clarifies that an enterprise with up to 49% foreign ownership is subject to the same conditions as a 
Vietnamese-owned company, whereas the foreign investment rules apply to enterprises with more 
than 49% foreign ownership.
26 However, current regulations do not specify the treatment of 
Vietnamese-owned businesses acquired by foreign- owned (49% or more) enterprises. Thus, while 
some local licensing authorities may require the business registration certificate of an acquired 
business to be replaced by an investment certific ate, others may demand an  investment certificate 
in addition to the registration certificate, or only amendment of the business registration 
certificate.27 
2.37.  The foreign business community appears to view the approval process for investment and 
establishment of businesses as difficult and time-consuming, involving complex administrative procedures, and at times inconsistent and un-coor dinated implementation of laws and regulations 
by the responsible government agencies.
28 Changes in business activities, such as the opening of a 
new branch, or minor alterations, such as changes in name or address of establishments and company representatives, all require an investment  certificate to be amended. The establishment 
of a one-stop shop system for business registration  and investment licensing, e.g. leaving the local 
authority fully in charge of all necessary approval s, has been suggested as a way to simplify the 
present system.
29 Concerns have also been raised about Government Decree No 46/2011/ND-CP 
of 17 June 2011, which links the extension of work permits for foreign employees to the 
simultaneous establishment of a contract to tr ain a Vietnamese employee to replace the foreign 
worker. According to the Vietnamese authorities,  an amendment to the Labour Code, effective 
1 May 2013, does not contain any such provision, nor will it be contained in the decree 
implementing some articles of the Labour Code.  
2.38.  Private ownership of land is not permitted in Viet Nam, which relies on public ownership and 
state management of land resources. However, the Land Law of 26 November 2003 (as amended) 
allows land to be leased, and assets associated with the land and the value of land-use rights may 
be mortgaged. Procedures for the establishment of land-use rights are under the Provincial 
Committees. Although the duration of a land-lease agreement should not exceed 50 years, leases may be extended upon expiry of the initial term(s ). For certain projects (e.g. large investments or 
those benefiting socio-economic difficult areas) the Government may grant land leases with an 
initial duration of up to 70 years. 
2.39.  In order to stimulate private investment in infrastructure, Decision No. 71/2010/QD-TTg, 
effective since January 2011, permits public private partnerships (PPPs) on a pilot basis, notably 
for road transport infrastructure, rail and urban tr ansport, airports, seaports and river ports, fresh 
water supply and waste treatment, power plants, and hospitals. Further infrastructure or public 
services supply projects may also be opened  for PPP by decision of the Prime Minister.
30 According 
to Decision No. 71, the Government intends to  f u n d  n o  m o r e  t h a n  3 0 %  o f  t h e  r e q u i r e d  
investments in PPP projects. 
2.40.  Investment abroad by Vietnamese-based enterprises is governed by the Investment Law 
and Decree No. 78/2006/ND-CP of 9 August 2006, providing for offshore direct investment. 
Applications for approval of investment projects abroad are addressed to the Ministry of Planning and Investment. For approved projects, the Ministry issues an investment certificate. Investments 
above a certain size also require the approval of th e Prime Minister. In such cases, the Ministry of 
                                               
26 Decree No. 102 replaced Decree No. 139 of 5 September 2007. 
27 An amendment to Decree No. 108/2006/ND-CP of 22 September 2006 is currently in preparation to 
provide more specific procedures fo r capital contributions, share purchases, and acquisitions of domestic 
enterprises by foreign investors.  
28 European Chamber of Commerce in Vietna m (2011). According to the World Bank's Doing Business 
2013 report, Viet Nam ranks 99th overall among 185 economies on the ease of doing business. Viet Nam 
obtains its best relative score on "dea ling with construction permits" (28th), while falling well below its overall 
ranking on "resolving insolvency" (149th), "getting electricity" (155th), and "protecting investors" (169th). In 
2006, Viet Nam ranked 98th amongst the 175 economies in the survey. 
29 The establishment of a one-stop shop system is a long-standing issue; it was raised by some WTO 
Members during Viet Nam's accession process (document WT/ACC/VNM/48).   
30 Until then, Viet Nam's legislation had focused on build-transfer (BT)/build-t ransfer-operate (BTO) or 
build–operate-transfer (BOT) models  for private-sector participation in infrastructure projects.   WT/TPR/S/287 • Viet Nam 
 
- 41 - 
 
  Planning and Investment commences the procedure to grant the investment certificate following 
the Prime Minister's approval.31 
2.41.  At the end of 2012, the Ministry of Planning and Investment had granted investment 
certificates for 712 projects overseas with total capital of US$12.4 billion. Petro Vietnam 
Exploration and Production Corporation and Viettel have been among the most prominent 
Vietnamese investors. Privately owned Vietnamese  companies have mainly invested in food and 
beverage industries, retailing, and environmental businesses. 
 
                                               
31 The Prime Minister's approval is necessary for private investments exceeding ₫600 billion, or 
₫300 billion for projects in financial services, media, or telecommunications. If the project involves the 
commitment of state capital (i.e. outward investment s by state-owned enterprise s), the threshold for PM 
approval is reduced by 50%. WT/TPR/S/287 • Viet Nam 
 
- 42 - 
 
  3  TRADE POLICIES AND PRACTICES BY MEASURE 
3.1  Introduction 3.1.  In January 2007, the Prime Minister of  Viet Nam approved an ambitious plan for 
administrative reform – the National Administrative Reform Project, also known as "Project 30". 
The aim has been to design a simpler, more efficient, and more transparent administrative system, 
thereby reducing the compliance costs of enterprises and individuals by 30%.
1 During the first 
phase of the project (January 2008-June 2009), an inventory of some 5,700 administrative 
procedures was entered into a database, allowing users to download and print any administrative 
form. In the second phase (June 2009-May 2010), government officials and private sector experts constituting a "special task force" engaged in a review with various stakeholder groups in the 
Advisory Committee for Administrative Procedure Reform to identify unnecessary and cumbersome 
administrative procedures. The final phase of Pr oject 30, starting in June 2010, began with the 
launch of 258 administrative reforms to be implemented within five months, and a second reform package to be implemented by the end of 2010.
2  
3.2.  Decree No. 63/2010/ND-CP was issued in June 2010 to maintain the effect of Project 30 after 
its termination. Administrative procedures are to be controlled strictly from the drafting stage of legislation through the various steps of implementation on a regular and continuous basis. Control 
agencies have been formed at the central and loca l levels with the transformation of 88 former 
task forces under Project 30.  
3.3.  At the invitation of Viet Nam, the OECD undertook an evaluation of Project 30, indicating 
possible future directions, including a ten-year programme for regulatory reform based on 
international best practice.
3 The OECD notes that much work remains to actually implement the 
simplified administrative procedures. Its recommendations included that Viet Nam link the programme for administrative simplification with its legal development programme, including the 
obligation to present impact assessments for new legislation, mandatory consultation with 
stakeholders, the development of one-stop shops, and pilot projects to test new regulatory models. The recently created Agency for the Control of Administrative Procedures (APCA) could 
take the lead in the central management of a government-wide regulatory policy.
4 The database of 
administrative procedures should be expanded to incorporate all legal normative documents, i.e. also those that do not involve specific procedures but create information obligations on individuals and enterprises. In addition to providing the raw legal texts, the Vietnamese authorities could also 
consider establishing information websites or hotlines that assist users to understand the 
legislation and help them towards compliance.  
3.4.  A master plan for the reform of public administration during 2011-20, issued in 
November 2011, outlines six broad areas of work.
5 For the sub-periods 2011-15 and 2016-20, the 
plan sets specific targets and outcomes for the reforms of institutions, administrative procedures, the structure of public administration, and public finance; enhanced qualifications of civil servants; 
and the general modernization of public administration.  
3.5.  The General Department of Vietnam Custom s is implementing a modernization project with 
support from the World Bank. Vietnam Customs introduced electronic customs clearance procedures on a trial basis in 2005, in Ho Chi Minh City and Hai Phong. The project was expanded 
to customs offices in Ha Noi, Da Nang, Dong Nai, and Binh Duong, and covered a total of 
20 provincial customs departments by the end of 2012. Nationwide, e-customs procedures were launched in early January 2013. The system covers electronic submission of customs declarations, 
as well as the processing by Customs, includ ing automatic processing of declared tests and 
analyses. In the future, online exchange of in formation between government agencies through a 
national OSS (one-stop-shop mechanism) should eliminate the current need for licences to be 
issued in hard-copy. 
                                               
1 Viet Nam's legal and administrative framework is  comprehensive and complicated as the legislature 
tends to focus on what is permitted,  rather than on what is not.  
2 Government Resolution No. 25/NQ-CP of 2 June 2010. 
3 OECD (2011). 
4 The agency was set up through Decree No. 63/2010/ND-CP of 8 June 2010.  
5 The master plan was adopted through Resolution No. 30c/NQ-CP of 8 November 2011.  WT/TPR/S/287 • Viet Nam 
 
- 43 - 
 
  3.6.  An authorized economic operators (AEOs) programme has been in place since 2011. In all, 
14 enterprises had been qualified by the General Department of Viet Nam Customs as AEOs by the end of March 2013. Among other initiatives, the customs administration plans to introduce an automated cargo clearance system and a customs intelligent database system by 2014. By 2020, 
Viet Nam expects electronic customs clearance to be effected at all customs offices. As a 
consequence, the incidence of physical inspection of cargoes should decline from the present level of 15%-20% to less than 7% by 2020.  
3.2  Measures Directly Affecting Imports  
3.2.1  Import procedures and requirements  3.7.  According to the World Bank, the process of  establishing a business in Viet Nam involves 
ten steps, including obtaining a business and tax registration certificate, payment of a business 
licence tax ( ₫1 million annually), registration with the local labour office, registration of the 
employees with the Social Insurance Fund, and regi stration with the local trade union or industry 
trade union within the first six months of operation. A company's initial registration process may 
be completed within 27 days.
6  
3.8.  The Vietnamese authorities note that action has been taken to streamline the process. 
Several steps were integrated when a one-stop shop for business registration was set up in 2007. 
In 2010, Decree No. 43/2020/ND-CP of 15 Ap ril and Circular No. 14/2010/TT-BKH of 
4 June introduced a unique company identification number granted as businesses register. This number may also be used for filing and paying taxes. The Ministry of Planning and Investment has developed a National Business Registration Database containing information on 689,000 registered 
enterprises. The legal basis for an online regist ration system with information available to the 
public entered into force in early 2013.
7  
3.9.  Domestic investors must hold a valid Business Registration Certificate, whereas foreign 
investors require an investment certificate, which serves as a licence for their investment projects 
and a "business registration certificate". The Ministry of Planning and Investment has apparently developed an agenda to revise the Law on Invest ment to separate the investment and business 
registration certificates; the aim is to distinguish the registration of a legal entity from the 
registration of project execution procedures.  
3.10.  Viet Nam's legislation distinguishes between import trading rights and the right to distribute 
imported goods within Viet Nam. In the context of its accession to the WTO, Viet Nam agreed to 
grant full import trading rights on par with Vietnamese traders to foreign individuals and 
enterprises from 1 January 2007 except for certain pharmaceuticals and medicines, cinematographic films, printing machinery, various printed matters, radio and television 
transmitters, radars, etc. where full trading rights were granted to foreigners as from 
1 January 2009.  
3.11.  Some restrictions remain; goods identified as subject to "state trading" may only be 
imported by designated enterprises. Thus, cigars  and cigarettes; crude oil and petroleum products; 
newspapers, journals and periodicals; recorded media for sound or pictures; and aircraft and 
spacecraft, may only be brought into Viet Nam by designated importers.
8 The Viet Nam Tobacco 
Import Export Company (Vinataba IMEX), a subsidiary of the Vietnam National Tobacco 
Corporation (Vinataba), is the leading importer of machinery, tobacco and materials for the 
tobacco industry in Viet Nam, and is an expo rter of tobacco leaf, cut rag, and cigarettes. 
Audiovisual products are traded, for example, by the Vietnam National Film Distribution and 
Screening Company (FAFIM Vietnam), based in Ho Chi Minh City, and the Viet Nam Film Export 
Import and Distribution Co. headquartered in Hanoi (see also section 4.6.5.3).  
                                               
6 World Bank Group online information, "Sta rting a Business in Viet Nam". Viewed at: 
http://www.doingbusiness.org/data/exploreeconomies/vietnam/starting-a-business/.  
7 Circular No. 01/2013/TT-BKHDT of 21 January 2013, in effect since 15 April 2013 (replaces Circular 
No. 14/2010/TT-BKH).  
8 The products affected by tempor ary or long-term limitations on trading rights are detailed in the 
accession working party report (WTO document WT/ACC/VNM/48, Tables 8(a), 8(b), and 8(c)). WT/TPR/S/287 • Viet Nam 
 
- 44 - 
 
  3.12.  The Viet Nam National Petroleum Group (P etrolimex) is the main company importing (and 
distributing) petroleum products. However, adapting a more market-based mechanism, 
Government Decree No. 84/2009/ND-CP of 15 October 2009 expands trade in petroleum products beyond state-owned enterprises to other enterprises that meet certain conditions. According to 
Article 23 of Decree No. 84, the Mini stry of Planning and Investment coordinates with the Ministry 
of Industry and Trade to set annual "import orient ations", i.e. the projected demand for imported 
crude oil and petrol in a given year. On this ba sis, the Ministry of Industry and Trade assigns 
minimum import quotas to be fulf illed by the licenced traders.  
3.13.  Among its accession commitments, the Government of Viet Nam agreed to issue a decree 
codifying the trading rights of firms and indivi duals without physical presence in Viet Nam.
9 For a 
foreign investor physically present in Viet Nam, the right to import goods does not extend to the 
distribution of these goods, unless it is stipulated in the investment licence of the enterprise. 
Without the right to distribute goods, the foreign enterprise must appoint a Vietnamese agent or distributor.
10 A circular issued by the Ministry of Industry and Trade in mid-2007, initially limited 
the distribution of imported goods to single distributors with a pre-existing right to trade or 
distribute the said goods. Importers were also required to register their single authorized 
distributors with the relevant authorities.11 However, the circular was amended by Circular 
No. 05/2008/TT-BCT on 14 April 2008, and sole distributorships are no longer mandatory.  
3.14.  On 6 May 2011, the Ministry of Industry and Trade issued Notice No. 197, allowing imports 
of wines, spirits, cosmetics, and mobile phones through only three seaports (Hai Phong, Da Nang, 
and Ho Chi Minh City), and stipulating additional documentation to be notarized by Viet Nam's 
diplomatic missions abroad. According to the authorities, this measure was required to protect 
against counterfeits and, by deterring trade fraud,  to protect consumers. However, Notice No. 197 
was abrogated with effect from 1 January 2013 through Notice No. 301/TB-BCT of 
28 December 2012. The new Notice, aimed at streamlined administrative procedures, stipulates 
that the affected goods may now be imported through the ordinary channels of commerce in accordance with current legislation.  
3.15.  Passenger cars (9 seats and less) became subject to additional import requirements in 
May 2011.
12 Viet Nam now requires such vehicles to be accompanied by a certificate or an 
assignment from the manufacturer, dealer or contracted agency, stating that the importer is the authorized importer or distributor. A warranty and maintenance certificate issued by the Ministry 
of Transportation of Viet Nam is also required.
13  
3.16.  Customs clearance documentation, and procedures for imports and exports generally, are in 
essence unchanged since 2009 and implemented on the basis of a circular of the Ministry of 
Finance.14  
3.2.2  Ordinary customs duties 3.17.  The Standing Committee of the National A ssembly establishes "statutory rates" at the 
four-digit HS level which constitute duty bands within which the Government fixes the applied 
rates of duty. The customs tariff is generally issued annually in the form of a circular from the Ministry of Finance. As Viet Nam bound the en tire tariff schedule in the context of its WTO 
accession (Table 3.1), the bound rates effectively constitute the upper limits in the duty bands set 
by the Standing Committee.   
                                               
9 Government Decree No. 90/2007/ND-CP of 31 May 2007.  
10 Since 1 January 2009, 100% foreign-owned enterprises have been permitted to engage in importing, 
exporting, and distri bution services, including wholesale and retail trade. The licence to engage in retail trade 
allows the establishment of a single sales outlet. A dditional outlets require pe rmission from the district 
Department of Planning and Investment, and the evaluation involves an economic needs test. 
11 Circular No. 09/2007/TT-BTM guiding the implementation of Decree No. 23/2007/ND-CP on foreign 
firms' trading and distributi on rights in Viet Nam.  
12 Ministry of Industry and Trade, Circular No. 20/2011/TT-BCT of 12 May 2011. 
13 In Notice No. 4640/BCT-XNK of 27 May 2011 the Minist ry of Industry and Trade detailed the specific 
information to be provided to conform to Notice No. 197 and Circular No. 20/2011/TT-BCT.  
14 Decree No. 154/2005/ND-CP of 15 December 2005 and Circular No. 79/2009/TT-BTC of 
24 September 2009 remained valid until 21 January 2011, when they were replaced by Circular No. 194/2009/TT-BTC of 6 December 2010 in accordan ce with the Government's regulation.  WT/TPR/S/287 • Viet Nam 
 
- 45 - 
 
  3.18.  At the time of Viet Nam's accession in 2007, the simple average of its bound rates for all 
products was 17.5%; 22.4% for agricultural products and 13.1% for non-agricultural goods. Once all tariff concessions have been phased-in fully (by 2019), Viet Nam's bound rates should average 11.4% for all goods.
15 Most tariff lines were bound in the 0-40% range, with peaks in the initial 
bound rates for "sensitive" items such as sugar (100%), wines and spirits (65%), tobacco (80%-
150%), and motor vehicles (100%). Agreed reductions in the bound rates for "sensitive" products are mostly to be completed by 2014. Viet Nam agreed to join the plurilateral Information 
Technology Agreement, with zero duty on such  goods to be applied either immediately upon 
accession or within transitions ending in 2010 to 2014. Otherwise, Viet Nam's participation in WTO 
sectoral initiatives is limited, with full participation only in respect of medical equipment. Moreover, Viet Nam's bound rates on chemicals largely co nform (i.e. 80%) to the chemical harmonization 
initiative.  
Table 3.1 Viet Nam's ta riff structure, 2007 and 2013  
(%, unless otherwise indicated) 
 MFN applied  Final 
bounda   2007 2013   
Bound tariff lines (% of all tariff lines) 100.0 100.0  100.0 
Simple average rate 18.5 10.4  13.4 
   Agricultural products (HS01-24) 29.4 17.4  21.7 
   Industrial products (HS25-97) 17.0 9  12.3 
   WTO agricultural products 27.0 17.4  20.9 
   WTO non-agricultural products 17.4 9.3  12.4 
Duty-free tariff lines (% of all tariff lines) 28.8 32.9  14.5 
Simple average rate of dutiable lines only 26.0 15.6  15.8 
Tariff quotas (% of all tariff lines) 0.0 0.0  0.0 
Non-ad valorem  tariffs (% of all tariff lines) 0.0 0.9  0.1 
Domestic tariff "peaks" (% of all tariff lines)b 3.1 4.1  3.6 
International tariff "peaks" (% of all tariff lines)c 41.7 25.6  31.3 
Overall standard deviation of tariff rates 22.4 12.5  14.3 
Coefficient of variation of tariff rates 1.2 1.2  1.1 
Nuisance applied rates (% of all tariff lines)d 1.8 0.6  0.8 
Total number of tariff lines 10,689 9,558  10,689 
    Ad valorem  rates 7,611 6,337  8,924 
    Duty free 3,078 3,142  1,545 
    Alternate rates 0 0  12 
    Othere 0 87  0 
a  Final bound rates are based on the 2007 tariff schedule in HS02 nomenclature. Implementation 
period up to 2019. For 208 tariff lines falling under Chapter 87 no bound rates are provided. 
b Domestic tariff peaks are defined as those exc eeding three times the overall average applied rate. 
c  International tariff peaks are defined as those exceeding 15%. d  Nuisance rates are those greater than  zero, but less than or equal to 2%. 
e Other duties: duties based on special instructio n as provided under Chapter 98; all tariff lines 
concerned are under Chapter 87 (motor vehicles). 
Note: 2007 tariff is based on HS02 nomenclature, 2013 tariff is based on HS12. Calculations for averages 
are based on national tariff line level (8-digit). 
Source: WTO Secretariat calculations, based on data provid ed by the authorities of Vi et Nam, and Ministry of 
Finance, Circular No. 193/2012/TT-BTC. 
3.19.  Viet Nam bound all its tariff lines at ad valorem  rates with the exception of second-hand 
motor vehicles, which are bound at the lower of a compound rate or 200% ad valorem . However, 
Viet Nam reserved the right to apply specific or compound import duties on certain "sensitive" 
                                               
15 WTO (2008). Nomenclature changes and methodologic al differences explain why these figures are not 
directly comparable to the tariff averages in the charts and tables of this report. WT/TPR/S/287 • Viet Nam 
 
- 46 - 
 
  goods to address customs fraud. So far, this has not proven necessary, and only second-hand 
motor vehicles are subject to (applied) non- ad valorem  rates at present.16  
3.20.  The Viet Nam Customs Tariff applied in 2013 follows the ASEAN Harmonized Tariff 
Nomenclature, based on the 2012 version of the Harmonized System.17 The Customs Tariff 
contains 9,558 tariff lines at the eight-digit level.18 The simple average applied MFN rate for all 
goods is 10.4% (Table 3.1); 17.4% for agricultural goods and 9.3% for non-agricultural products (WTO definition). Among the agricultural product categories attracting the highest MFN rates of 
import duty are alcoholic beverages and tobacco, coffee and tea, fruit and nuts, and cereals and 
preparations (Table A3.1 and Chart 3.1). Industri al goods with above-average MFN tariff protection 
include transport equipment, clothing, fish and fishery products, and footwear (Table A3.1 and 
Chart 3.2).  
Chart 3.1 Average applied MFN rates, by HS chapters 1 to 24, 2007 and 2013 
0102030405060708090100
01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24Per cent
01  Live animals        
02  Meat & edible meat offal
03  Fish & crustaceans      
04  Dairy products, etc.
05  Products of animal origin06  Plants & flowers07  Edible vegetables
08  Edible fruit & nuts
09  Coffee & tea
10  Cereals
11  Cereal products12  Oil seeds & misc grains 13  Lac, gums & resins
14  Vegetable products n.e.s
15  Animal/vegetable fats & oils
16  Meat/fish preparation
17  Sugar & sugar confectionery18  Cocoa & cocoa preparation19  Prepared food of cereals
20  Prepared food of vegetables/fruit
21  Misc. edible preparations
22  Beverages, spirits, vinegar
23  Residues from food industry24 TobaccoAverage 2007
(29.4%)Average  2013 
(17.4%)MFN 2007 
MFN 2013
 
Source: WTO Secretariat calculations, based on data provid ed by the authorities of Vi et Nam, and Ministry of 
Finance, Circular No. 193/2012/TT-BTC. 
 
3.21.  The difference between bound and currently applied MFN rates leaves some scope for 
flexibility in Viet Nam's tariff policy.19 In some instances, Viet Nam has implemented tariff 
reductions ahead of the committed timetable. Tariff cuts may also have been employed on occasion to reduce inflationary pressures in the domestic economy or to mitigate fluctuations in 
domestic energy prices (Table A3.2). However, a number of tariff increases since 2008 seem 
primarily motivated by a willingness to afford higher protection to certain domestic sectors, e.g. to 
manufacturers of motor vehicles, meat producers, and the local steel industry. Although all tariff 
increases appear to have been within the limits set by Viet Nam's tariff commitments in the WTO, 
                                               
16 Should such changes occur in the applied customs duty in the future, Viet Nam is committed to 
provide a list of the affected goods to the WTO and ensure that the new rates do not exceed the bound 
(ad valorem ) levels.   
17 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 pref erential 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 has been agreed bilaterally).  
18 The national customs tariff on which Viet Nam concluded its WTO accession comprised 
10,689 ten-digit tariff lines.   
19 The difference between the initial bound and applie d MFN rate was 5 percentage points or more, for 
some 2,600 tariff lines in 2007. WT/TPR/S/287 • Viet Nam 
 
- 47 - 
 
  frequent changes in the applied tariff introduce uncertainty and may undermine the predictability 
of WTO Members' access to the Vietnamese market.  
3.22.  Viet Nam accords tariff preferences under regional and bilateral preferential trade 
agreements, i.e. to its ASEAN partners, Korea, China, Australia and New Zealand, India, and 
Japan. The preferential tariff treatment in Viet Nam's market is generally substantial for ASEAN 
and China, and somewhat less pronounced for Vi et Nam's other FTA partners (Table A3.3). 
Although reductions apply in all cases, the average preferential rates remain above 10% for 
transport equipment, beverages, and tobacco.  
Chart 3.2 MFN applied tariff averages by WTO non-agricultural product groups, 2007 
and 2013 
0 5 10 15 20 25 30 35 40 45 50
Fish & fishery products
Minerals & metals
Chemicals & photographic supplies
Wood, pulp, paper & furniture
Textiles
Clothing
Leather, footwear, travel goods
Non-electric machinery
Electric machinery
Transport equipment
Non-agriculture articles n.e.s.
PetroleumProduct groups Average (%)
MFN 2007 
MFN 2013
Average  2007 
(17.4%)Average  2013 
(9.3%)
 
Source: WTO Secretariat calculations, based on data provid ed by the authorities of Vi et Nam, and Ministry of 
Finance, Circular No. 193/2012/TT-BTC. 
 
3.2.3  Other duties and charges  
3.23.  Viet Nam has bound other duties and charges (pursuant to Article II:1(b) of the GATT 1994) 
at zero in its Goods Schedule.   
3.2.4  Tariff-rate quotas, tariff exemptions 
3.24.  Viet Nam has established tariff-rate quotas for imports of eggs, sugar, unmanufactured 
tobacco and tobacco refuse, and salt. According to Viet Nam's Goods Schedule, quota volumes 
must increase by 5% annually for the goods subject to TRQs (Table 3.2).20 The size of the annual 
import quotas is fixed by the Ministry of Indust ry and Trade, whereas the tariff rates for out-of-
quota imports are determined by the Ministry of Finance.21  
                                               
20 Viet Nam notified the implementation of its TRQ regime for agricultural goods, covering 2010 in WTO 
documents G/AG/N/VNM/1 and 2, of 3 November 2011. It has not yet notified details of the application of its TRQ regime for salt.  
21 The Ministry of Industry and Trade stipulated the quotas for 2011 in Circular No. 45/2010/TT-BCT of 
31 December 2010. The quotas for 2012 were laid down for tobacco in Circular No. 02/2012/TT-BCT on 
18 January 2012, and for eggs, sugar, and salt in Circ ular No. 22/2012/TT-BCT on 6 August 2012. The Ministry 
of Finance determined the applicable duty rates for out-of-quota imports in 2012 on 4 July 2012 (Circular 
No. 111/2012/TT-BCT).  WT/TPR/S/287 • Viet Nam 
 
- 48 - 
 
  3.25.  For tobacco, the quota is distributed among end-users permitted to produce cigarettes. 
Auctioning is not used to allocate the quotas. According to the authorities no imports of eggs is due to a lack of demand. 
Table 3.2 Tariff-rate quotas, 2010-12
 
Product/HS code Initial 
quota TRQ in 
2010 TRQ in 
2011 TRQ in 
2012 In-
quota 
tariff 
rate 
(%) Out-
of 
quota 
tariff 
rate 
(%) Import 
volume 
2012 Administration 
method 
Eggs 
04070091 
04070092 04070099 30,000 
dozen 36,000 
dozen 38,000 
dozen 40,000 
dozen 40 80 0 Past performance 
Cane sugar 
17011100 
Beet sugar  
17011200 
Other sugar  
17019100 
17019911 
17019919 
17019990 55,000 
tonnes 200,000 
tonnes 250,000 
tonnes 70,000 
tonnes 25 
 
50 
 
60 80 
 
80 
 
 
100 
85 
85 
85 65,000 
tonnes Allocated to end-
users based on 
past performance; 
portion of TRQ 
allocated to new 
importers 
Unmanufactured 
tobacco, tobacco refuse 24011010 24011020 24011030 24011090 24012010 24012020 24012030 24012050 24012090 
24013010 
24013090 31,000 
tonnes 47,500 
tonnes 38,000 
tonnes 40,000 
tonnes 30 
           
15 
30  
  
80 90 
 
90 80 90 90 80 90 
80 
90 22,000 
tonnes Past performance; 
quotas allocated to end-users who have cigarette-producing permits 
Salt 
25010010 
25010021 
25010029 
25010031 
25010032 
25010033 
25010090 150,000 
tonnes 260,000 
tonnes 102,000 
tonnes 102,000 
tonnes  
30 
 
10 
15  
60 
 
 
 
 
 
50 52,000 
tonnes Past performance 
Note: Annual growth rate for the quota volume is 5%. 
Source:  Schedule CLX-Socialist Republic of Viet Nam;  WTO documents G/AG/N/VNM/1 and G/AG/N/VNM/2, 
3 November 2011; Ministry of Finance, Circular No. 111/2012/TT-BTC, 4 July 2012; and information provided by the Vietnamese authorities. 
3.26.  Viet Nam has also opened tariff-rate quotas for preferential imports of rice and dried 
tobacco leaves from Cambodia and Lao PDR (Table  3.3). The regime is regulated in accordance 
with bilateral memoranda concluded in 2005 (Lao PDR) and 2007 (Cambodia).22 In-quota volumes 
are subject to 0% import duty. The tariff-rate quotas, which are announced by the Ministry of 
Industry and Trade, may be stipulated for one or two years at a time.   
3.27.  Viet Nam exempts various goods from customs duties pursuant to the Law on Import Tax 
and Export Tax (Law No. 45/2005/QH11 of 14 June 2005). In addition to humanitarian aid and 
non-refundable aid, goods in transit, and goods imported into free zones (Article 3), Article 16 
enumerates other import duty exemptions, including for movable assets, goods imported 
temporarily for re-export, imports by organization s and individuals with diplomatic immunity, and 
fixed assets imported for projects entitled to investment incentives, specially encouraged, or 
funded through official development assistance  programmes. Notably, the tax exemption for 
                                               
22 The memorandum between the trade ministries of Viet Nam and Lao PDR currently in force was 
signed on 1 December 2011. Viet Nam and Cambodia si gned a new memorandum on bilateral trade promotion 
on 17 February 2012.  WT/TPR/S/287 • Viet Nam 
 
- 49 - 
 
  investment projects extends to equipment and machinery, including specialized transportation 
means, raw materials and components, as well as construction materials that cannot (yet) be produced in Viet Nam. Various imports for the oil and gas industry (e.g. materials that are not produced in Viet Nam) as well as imported good s for research and development purposes, are also 
exempt from import duty.  
Table 3.3 Tariff-rate quotas fo r Cambodia and Lao PDR, 2008-12
 
(Tonnes) 
Product/HS code 2008 2009 2010 2011 2012 
Cambodia      
Rice: 
1006100090, 
1006301900, 
1006303000 150,000 150,000 250,000 250,00 300,000 
Dried tobacco leaves: 
2401101000, 2401102000, 2401103000, 2401109000  
n.a.  
n.a.  
3,000  
3,000  
3,000 
Lao PDR 
Rice: 
100610090, 
1006301900, 
1006303000, 
1006309000  
40,000  
40,000  
40,000  
40,000  
70,000 
Dried tobacco leaves: 2401101000, 
2401102000, 
2401103000, 2401109000, 2401201000, 2401204000, 2401301000  
3,000  
3,000  
3,000  
3,000  
3,000 
n.a. Not applicable. 
Source:  Ministry of Industry and Trade online information. Viewed at: http://www.moit.gov.vn . 
3.28.  Border trade by local residents up to ₫2 million (US$100) per passage per day is exempt 
from customs duty, according to Decision No . 254/2006/QD-TTg of 7 November 2006, amended 
by Decision No. 139/2009/QD-TTg of 23 December 2009. The duty-free goods, which are listed by 
the Ministry of Industry and Trade in consultation s with the authorities concerned, must originate 
in the neighbouring countries. Commercial cargoes from the border areas of China, Cambodia, and 
Lao PDR are cleared through Customs and subject to normal customs duty.   
3.2.5  Fees and charges for services rendered 3.29.  Circular No. 172/2010/TT-BTC of 2 November 2010, establishes a single fee for customs 
clearance of ₫20,000 per declaration form. Payments are held in "fee custody accounts" at the 
customs office collecting a fee, and used to finance certain customs expenditures and operations, including overtime and night-hour compensation fo r officials effecting customs clearance outside of 
the normal opening hours. 
3.30.  Charges for customs warehousing depend on the weight of the stored item. Rates are 
determined separately for automobiles, motorcycles and motorbikes, computers and office equipment, consumer electronics, air conditioners, gold, and gemstones. Decision 
No. 98/2008/QD-BTC of 4 November 2008 regulates maritime fees and charges including tonnage 
charges, maritime insurance fees, pilotage char ges, charges for anchoring and mooring and the 
use of piers and mooring buoys, and clearance fe es. Seaport service charges are established by 
the respective port authorities and vary dependin g on the main engine capacity and gross tonnage 
of the vessels, and the size and weight of the cargo (see also section 4.6.6.1).  WT/TPR/S/287 • Viet Nam 
 
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  3.2.6  Internal taxes 
3.31.  Viet Nam levies excise taxes on certain goods and services pursuant to the Law on Special 
Consumption Tax of 30 June 1990, as amended (Table 3.4).23 The items are considered luxuries or 
potentially harmful products (e.g. alcohol and tobacco), the consumption of which should be 
discouraged. No distinction is made between dome stically produced and imported goods, but for 
imports the special consumption tax is levied on the duty-inclusive import price.24  
Table 3.4 Goods and Services Subjec t to Special Consumption Tax, 2006-13  
No. Description of good or service Tax rate (%) 
I. Goods 
1. Cigarettes, Cigars:  
  (a) Cigars 65 
  (b) Cigarettes  
   - From 2006 to 2007 55 
   - From 2008 65 
2.  Spirits:  
  (a) Spirits from 40° 
From 01.01.2010 – 31.12.2012  
From 01.01.2013 65 
45 
50 
  (b) Spirits from 20°  to less than 40° 
From 01.01.2010 – 31.12.2012  
From 01.01.2013 30 
45 
50 
  (c) Spirits of under 20°, wines brew ed from fruits, herbal and medicinal 
wines 
From 01.01.2010 20 
 
25 
3 Beer:  
  (a) Bottled beer and canned beer 
From 01.01.2010 – 31.12.2012  
From 01.01.2013 75 
45 
50 
  (b) Draught beer and draft beer  
   - From 2006 to 2007 30 
   - From 2008 40 
 From 01.01.2010 – 31.12.2012  
From 01.01.2013 45 
50 
4. Automobilesa:  
  (a) Automobiles of 5 seats or less 50 
  (b) Automobiles of 6 to 15 seats 30 
  (c) Automobiles of 16 to under 24 seats 15 
 From 01.04.2009  
 (a) Automobiles of 9 seats or less (except those indicated in points 4e, 4g, 4h)  45 
 Of a cylinder capacity of 2,000 cm3 or less  45 
 Of a cylinder capacity from 2,000 cm3 to 3,000 cm3 50 
 Of a cylinder capacity of over 3,000 cm3 60 
 (b) Automobiles of 10 to 16 seats (except those indicated in points 4e, 4g, 4h) 30 
 (c) Automobiles of 16 to 24 seats (except those indicated in points 4e, 4g, 4h) 15 
 (d) Automobiles served for both purpos es of carrying passengers and goods 
(except those indicated in points 4e, 4g, 4h) 15 
 (e) Automobiles using petrol combined with electricity/bio energy in which the 
amount of petrol used is less than or  equal to 70% of total energy used  Equal to 70% of the 
amount of tax applied for the same type of automobiles indicated in points 4a, 4b, 4c and 4d 
 (f) Bio-fuel automobiles  Equal to 50% of the 
amount of tax applied 
for the same type of 
automobiles indicated 
in points 4a, 4b, 4c 
and 4d 
                                               
23 Notably, the Law was amended in 2005 to be consistent with Viet Nam's WTO commitments.  
24 Decree No. 26/2009/ND-CP, which provides guidance  on the implementation of the Law on Special 
Consumption Tax appears to allow use of the production pr ice as the tax base in cert ain circumstances, as an 
exception. For wines and spirits, this provision may am ount to a tax cut of up to 10% for local producers 
(European Commission, 2011).  WT/TPR/S/287 • Viet Nam 
 
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  No. Description of good or service Tax rate (%) 
 (g) Electric automobiles   
 Automobiles of less than 9 seats  25 
 Automobiles of 10 to 16 seats 15 
 Automobiles of 16 to 24 seats  10 
 Automobiles served for both purposes  of carrying passengers and good 10 
5. Motorbicycles of 2 or 3 wheels with cylinder capacity of over 125 cm3 20 
6. Airplanes 30 
7. Cruise boats  30 
8. Assorted petrol, naphth a, reformate component and other components to be 
mixed in petrol 10 
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 
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. Operating casinos, offering jackpot games 
From 01.04.2009 25 
30 
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 
a Automobile spare parts are not subject to excise tax. 
Source:  Law on Special Consumption Tax No. 27/2008/QH12 of 14 November 2008, in effect since 
1 April 2009, and Decision No. 5371/TCT-CS of 31 December 2009 of the Taxation Department of 
the Ministry of Finance.   
3.32.  At the time of Viet Nam's accession to the WTO, significant differences in its tax rates on 
alcoholic beverages provided differential treatment for similar or like products. Viet Nam agreed to equalize tax rates on distilled spirits and beer within three years of accession, and a single tax rate 
of 45% ad valorem  entered into effect on 1 January 2010. The tax rate was increased to 50% with 
effect from the beginning of 2013. Automobile taxes have also been changed (in 2009) as rates are currently lower for electric motor vehicles than for vehicles running on fossil fuels.  
3.33.  Exemptions to the special consumption tax are detailed Article 3 of the Law and in 
Government Decree No. 16/2009/ND-CP of 16 March 2009. They principally concern goods and 
cargo in transit through Viet Nam; aircraft, cruise liners, and transportation vehicles used for business or special purposes (e.g. ambulances, funeral vans, etc.); and air conditioners used in 
transport vehicles. Producers of goods subject to special consumption tax on taxable raw materials 
may claim tax credit for the tax paid. Exported goods are exempted from special consumption tax (Article 3). 
3.34.  Viet Nam introduced an environmental tax with effect from 1 January 2012 in accordance 
with the Law on Environmental Protection Ta x No. 57/2010/QH12 of 15 November 2010. The 
environmental protection tax is applied on petroleum products; coal; hydrogen-chlorofluorocarbon (HCFC) liquids (ozone depleting substances); plastic bags; and various pesticides and herbicides.
25 
The tax rates are specific and set product-by-product. Most goods are currently taxed at the lower 
end of the minimum/maximum rates established by the Standing Committee of the National 
Assembly (Table 3.5). Fuel surcharges on petrol, diesel, kerosene, jet fuel, heating oil, etc., 
applied in accordance with the Ordinance on fees and charges No. 38/2001/PL-UBTVQH10, were 
abolished with the introduction of the environm ental protection tax. The Law authorizes the 
Standing Committee of the National Assembly to  extend the product coverage. Goods exported 
directly are not subject to this tax.  
                                               
25 According to Ministry of Finance Circular No. 159/2012/TT-BTC of 28 September 2012, plastic bags 
made of certain types of polyethyle ne (HDPE, LDPE, and LLDPE) are now considered to be environmentally 
friendly, and thus no longer subject to the environmental protection tax.  WT/TPR/S/287 • Viet Nam 
 
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  Table 3.5 Products subject to environmental protection tax  
Item Product description Calculation 
unit Tax frame Tax rate ( ₫) 
I Gasoline, oil, grease      
1 Gasoline, except ethanol litre 1,000-4,000 1,000 
2 Aircraft fuel litre 1,000-3,000 1,000 
3 Diesel oil litre 500-2,000 500 
4 Petroleum litre 300-2,000 300 
5 Fuel oil litre 300-2,000 300 
6 Lubricants litre 300-2,000 300 
7 Grease kg  300-2,000 300 
II Coal     
1 Lignite tonne 10,000-30,000 10,000 
2 Anthracite coal (anthracite) tonne 20,000-50,000 20,000 
3 Fat coal tonne 10,000-30,000 10,000 
4 Other coal tonne 10,000-30,000 10,000 
III Hydrogen-chlorofluorocarbon liquid (HCFC)  kg 1,000-5,000 4,000 
IV Taxable-plastic bag kg 30,000-50,000 40,000 
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 preservati ve that is restricted kg 1,000-3,000 1,000 
VIII Warehouse disinfecta nt that is restricted   kg 1,0 00-3,000 1,000 
Source: Information provided by  the Vietnamese authorities. 
3.35.  Viet Nam passed its first Law on Value Added Tax in 1999. At present, VAT is levied on 
goods and services according to the Law on Value-Added Tax No. 13/2008/QH12 of 3 June 2008. 
The VAT rate is zero, 5% or 10%, with 10% being the standard rate.26 The reduced (5%) rate is 
applicable to "essential" goods and services, su ch as clean water, fertilizer, animal feed, 
unprocessed agricultural commodities, fresh food, sugar and sugar by-products, preliminarily 
processed rubber latex, agricultural machinery, medical equipment, teaching aids, children's toys, and scientific and technological services. Exported goods and services, international transportation 
services, offshore reinsurance, credit provision, capital transfers and derivative financial services, 
and post and telecommunication services are zero rated. A new category of "goods and services not subject to VAT" was added to the list of exceptions from 2012 covering, for example, goods and services provided outside of Viet Nam, financial revenues, capital contributions in kind, and 
agents' commissions (Table 3.6).  
3.36.  VAT is applied on the duty-paid value of imports, and is due at the same time as the 
payment of import duties. For domestic producers, VAT is collected monthly and settled at the end 
of the calendar year.
27 For goods subject to excise duty and/or environmental tax, VAT is 
calculated on the price inclusive of such duties and taxes.   
3.37.  VAT has become an important element of government revenue. In 2012, the nearly 
₫216 billion collected from VAT represented almost one third of the Government's total tax 
revenue. The special consumption tax and the environmental protection tax raised an additional ₫57.6 billion.
28 Taxes on international trade transactions amounted to ₫74 billion.29  
                                               
26 Non-taxable transactions and transactions subjec t to 5% VAT or zero-rated are enumerated in 
Articles 5 and 8 of the Law.  
27 Enterprises and individuals establ ished permanently in Viet Nam who are producing or trading goods 
or services subject to VAT must register as VAT taxpayers, and file monthly tax returns (by the 20th day of the 
following month). For enterprises and individuals maintaining proper  bookkeeping procedures, VAT is 
calculated according to the deduction method. Establishm ents with more rudimentar y accounts, or foreigners 
carrying out business not regulated under the Law on Investment, are assessed according to the direct method, i.e. the value of the goods or services sold multip lied by the applicable rate of VAT. In order to provide 
some financial relief to certain enterprises, the Government issued Resolution No. 13/NQ-CP on 10 May 2012, inter alia,  granting many small and medium-sized enterp rises using the deduction method a six-month 
extension of the deadline for the submission of VAT in April, May, and June 2012.  
28 The amount refers to such taxes collec ted on domestic goods and services only. 
29 This overall figure refers to import duty, spec ial consumption tax and environmental protection tax 
levied on imports, and revenue from export taxes.  WT/TPR/S/287 • Viet Nam 
 
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  Table 3.6 Goods and services exempt  from VAT (as of 1 January 2009)  
No. Product description 
1. Cultivation and husbandry products, and farmed or fi shed aquatic products not yet processed into other 
products or only preliminarily processed; sold by pr oducing and fishing organiza tions and individuals, and 
products at the stage of importation  
2. Animal breeds and plant variety products, including br eeding eggs, breeding animals, seedlings, seeds, 
sperm, embryos and genetic materials  
3. Irrigation and drainage; so il ploughing and harrowing; dredging of  intra-field canals and ditches for 
agricultural production; harvesting of farm produce 
4. Salt products made of seawater, natural ro ck salt, refined salt, and iodized salt  
5. State-owned residential houses sold by the State to current tenants 
6. Transfer of land use rights 
7. Life insurance, student insurance, insurance of domestic animals, in surance of plants, and reinsurance 
8. Credit provision services; securities trading; capital transfer; derivative financial services, including 
interest-rate swap contracts, forward contracts, futu res contracts, call or put options, foreign currency 
sales, and other derivati ve financial services as prescribed by law 
9. Healthcare and animal health servic es, including medical examination, treatment, and preventive services 
for human beings an d domestic animals 
10. Public post and telecommunications and universal In ternet services under the Government's programmes 
11. Public sanitation services and water drainage in stre ets and residential areas; maintenance of zoos, flower 
gardens, parks, street greeneries and public lighting; funeral services 
12. Renovation, repair and construction of cultural, ar tistic, public service and infrastructure works, and 
residential houses for social policy beneficiaries, funded wi th people's contributions or humanitarian aid  
13. Teaching and vocational training as provided for by law 
14. State-budget-funded radio an d television broadcasting 
15. Publication, import and di stribution of newspapers, journals, specialized bulletins, political books, 
textbooks, teaching materials, law books, scientific -technical books, books pr inted in ethnic minority 
languages, as well as propaganda po stcards, pictures and posters, includ ing those in the form of audio or 
visual tapes or discs or electronic data; money printing 
16. Mass transit by bus and tramcar 
17. Machinery, equipment and supplies that cannot be manuf actured in Viet Nam and need to be imported for 
direct use in scientific research and technological development activities; machinery, equipment, spare parts, special-purpose means of transport and supplies  that cannot be manufactured in Viet Nam and need 
to be imported for prospecting, exploring and developing oil and gas fields; aircraft, drilling platforms and ships that cannot be manufactured in Viet Nam and n eed to be imported for the formation of enterprises' 
fixed assets or hired from foreign parties for pr oduction and business activities or for lease  
18. Special-purpose weapons and military equi pment for security an d defence purposes 
19. Goods imported as humanitarian aid or non-refundable aid; gifts for state agencies , political organizations, 
socio-political organizations, soci o-political-professional organizations, social organizations, socio-
professional organizations or people's armed forces un its; donations or gifts for Viet Nam-based individuals 
within the Government-prescribed quotas; belongings of foreign organizations and individuals within diplomatic immunity quotas; and pers onal effects within duty-free luggage quotas. Goods and services sold 
to foreign organizations or individuals or internationa l organizations for use as humanitarian aid, and non-
refundable aid to Viet Nam 
20. Goods transferred out of border gate or transited via the Vietnamese territory; goods temporarily imported 
for re-export; goods temporarily exported for re-imp ort; raw materials imported for the production or 
processing of goods for export under  contracts signed with foreign pa rties; goods and services traded 
between foreign countries and non-tari ff areas and between non-tariff areas 
21. Technology transfer under the Law on Techno logy Transfer; transfer of intellectual 
property rights under the Law on Inte llectual Property; computer software 
22. Gold imported in the form of bars or ingots not ye t processed into fine-art ar ticles, jewellery or other 
products 
23. Exported products that are unproc essed mined resources or minerals as prescribed by the Government 
24. Artificial products used for the substitution of dise ased people’s organs; crutches, wheelchairs, and other 
tools used exclusively for the disabled 
25. Goods and services of business individuals who have a monthly income lower than the common minimum 
salary level applicable to domest ic organizations and enterprises 
Source:  Law on Value Added Tax No. 13/2008/QH12 (English translation viewed at:  
http://www.ifrc.org/docs/idrl/899EN.pdf )  
3.2.7  Import prohibitions, restrictions, and licensing 
3.38.  Viet Nam prohibits the importation of goods generally considered harmful to human health 
and safety or national security (Table 3.7), or to comply with international treaties and WT/TPR/S/287 • Viet Nam 
 
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  conventions to which Viet Nam is party. Domestic production of the corresponding goods is either 
prohibited or, as a minimum, subject to strict controls.30  
Table 3.7 Import prohibitions  
HS Description Legal basis 
1207 91 00 Poppy seeds Law No. 23/2000/QH10 on 
drug prevention and combat as amended by Law No. 16/2008/QH12 and its guiding legal documents  1302 11 00 Opium, anhydrous morphine anhydrous content 
2618 00 00 Granulated slag (slag sand) from the manufacture of iron or steel Law on Environment 
Protection; Circular 
No. 01/2012/TT-BTNMT of 
28 January 2013 2619 00 00 Slag, dross (other than granulat ed slag), scalings and other 
waste from the manufacture of iron or steel 
2620 Ash and residues (other than from the manufacture of iron or 
steel) containing metals or metal compounds 
2621 00 00 Other slag and ash, incl uding seaweed ash (kelp) 
3601 00 00 Propellant powders  
            
 
    Decree No. 12/2006/ND-CP 8710 00 00 Tanks and other armoured fighting  vehicles, moto rized, whether 
or not fitted with weapons, and parts 
ex 8702 
    8703     8704     8707     8708 Right-hand steering vehicles (including components and vehicles 
modified to left-hand drive on es prior to importation into 
Viet Nam), except for specialized  right-hand steering vehicles 
operating in small areas such as cranes, trench and canal digging 
machines, garbage trucks, road sweepers, road construction trucks, airport passenger transportation buses, fork-lifts used at warehouses and ports 
9301 00 00 Military weapons, other than revo lvers, pistols and the arms of 
heading 307: revolvers, pistols 
9302 00 00 Revolvers and pistols, other than those of heading 9303 or 9304 
9304  Other arms (e.g. spring, air or ga s guns and pistols, truncheons), 
excluding those of heading 9307 
9305 Parts and accessories of Articles of headings 9301 to 9304 
9306 Bombs, grenades, torpedoes, mines, missiles and similar 
munitions of war and parts th ereof; cartridges and other 
ammunition and projectiles and pa rts thereof, including shot and 
cartridge wads 
9307 Swords, cutlasses, bayonets, lances and similar arms and parts 
thereof and scabbards and sheaths thereof 
.. Second-hand consumer goods, including: 
- Textiles and clothes; footwear; 
-  Electronic goods; 
-  Refrigerating equipment and products; 
-  Household electric goods; 
-  Furniture; 
-  Household goods made from po rcelain, clay, glass, metal, 
resin, rubber, plastic,  and other materials 
.. Used materials and equipment, including: 
- Used machines, structures, inner tires, tires, accessories, 
motors of automobiles, tractors, 2-wheel and 3-wheel motorbikes; 
- Internal combustion engines and machines with internal 
combustion engines (c apacity below 30 CV)  
- Bicycles, 2-wheel and 3-wheel vehicles 
                                               
30 Decree No. 12/2006/ND-CP stipulates that goods prohibited for importation are also prohibited for 
production, purchase, and sale in Viet Nam.  WT/TPR/S/287 • Viet Nam 
 
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  HS Description Legal basis 
.. Toxic chemicals 
Lists published by the Ministries of Industry and Trade; Health; 
and Agriculture and Rural Development  
 Decree No. 108/2008/ND-CP 
of 7 October 2008;  
Decree No. 26/2011/ND-CP 
of 8 April 2011; 
Law No. 23/2000/QH10 of 
9 December 2000; 
Decree No. 58/2003/ND-CP 
of 29 May 2003;  
Decision No. 134/2003/QD-
BCN of 25 August 2003; 
Decree No. 100/2005/ND-CP 
of 3 August 2005; 
Circular No. 15/2009/TT-
BNNPTNT of 17 March 2009; 
Circular No. 20/2010/TT-
BNNPTNT of 2 April 2010; 
Circular No. 21/2013/TT-
BNNPTNT of 17 April 2013; 
Circular No. 25/2011/TT-
BYT of 23 June 2011 
.. Garbage and waste materials which may cause environmental 
pollution and epidemics 
The Law on Environment Protection  (Article 7) prohibits imports 
and transit of waste in any form Pursuant to Article 43 of the Law on Environment Protection, importation of scrap is a conditional business. The Ministry of Industry and Trade shall assume prime responsibility for issuing regulations on business criteria and conditions applicable to organizations and individuals en gaged in importing scrap, in 
coordination with the Ministry of Natural Resources and Environment Law No. 52/2005/QH11 on 
Environment Protection 
.. Depraved and reactionar y cultural products  Decree No. 12/2006/ND-CP 
.. Children toys having adverse e ffect in moral education, public 
order and security 
.. Narcotics Law No. 34/2005/QH11 on 
pharmacy and its guiding 
legal documents .. Firecrackers (excluding fire si gnal used for maritime safety and 
other purposes as stipulated by th e Prime Minister in the official 
Document No.1383/CP-KTTS of 23 November 1998) 
.. Asbestos products and materials under amphibole group Decree No. 12/2006/ND-CP 
 
.. Specialized encryption machines and encryption software subject 
to State secreta Law No. 05/2011/QH13 on 
Cipher 
a The restriction does not apply to general, commonly traded goods equipped with encryption 
technology destined for mass consumption  
Source: WTO document WT/ACC/VNM/48 and informat ion provided by the Vietnamese authorities. 
3.39.  Viet Nam is a signatory to various international treaties and conventions with implications 
for trade: the Convention on World Cultural Heritage and Natural Resources Conservation; the 
Convention on Wetland of International Importan ce, especially of Waterfowls Habitat (Ramsar); 
the Convention on International Trade in Endanger ed Species of Wild Flora and Fauna (CITES); the 
Montreal Protocol on Substances that Deplete the Ozone Layer; the Framework Convention on 
Climate Change; the Convention on Biological Dive rsity (CBD); the Convention on Marine Law; the 
Basel Convention on controlling the transit and disposal of dangerous waste; the United 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 Consent.  
3.40.  Import prohibitions on cigarettes and other tobacco products were eliminated upon 
Viet Nam's accession to the WTO.
31 Moreover, a prohibition on the importation of large new 
motorcycles (engine capacity exceeding 175cc) was replaced by automatic licensing, and a 
prohibition on the importation of second-hand motor vehicles (less than five years old) was replaced by high tariffs and domestic product and traffic safety mechanisms. Licensing is also 
employed to administer importation of goods subject to tariff-rate quotas.   
                                               
31 However, such goods are rese rved for "state trading".  WT/TPR/S/287 • Viet Nam 
 
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  3.41.  Under Decree No. 12/2006/ND-CP of 23 January 2006, importation of various goods is 
subject to "line management", i.e. import licenc es are issued by the Ministry of Industry and 
Trade, but the imports are regulated by other minist ries (Table A3.4). In such cases, neither the 
value nor the quantity of imports is restricted. The purpose of this system is, inter alia,  to enforce 
minimum quality or performance standards for go ods related to human, animal, or plant health; 
local network compatibility (telecommunications equipment); monetary security; or cultural sensitivities. According to the authorities, the "line management" system includes automatic and 
non-automatic licensing procedures.  
3.42.  In 2008, Viet Nam introduced what it considers automatic licensing for a wide range of 
consumer products and agricultural items thro ugh Decision No. 24/2008/QD-BCT and Circular 
No. 17/2008/TT-BCT of 12 December 2008. Accord ing to the authorities, the measure was 
introduced to gather "more detailed statistics and trade data for import assessment".
32 The 
product coverage was extended to include certain ag riculture and food items, textiles, and clothing 
in 2010 as Circular No. 24/2010/TT-BCT of 28 May 2010 replaced Circular No. 17.33 At the time, 
the measure affected imports of meat and meat products; certain fish and fish products; sugar 
confectionary, including chocolate; certain vege table, fruit, cereal, and flour preparations; 
beverages, spirits and vinegar; plastic products; textiles and apparel; footwear; cosmetics; home 
electrical appliances; motor vehicles and motorcycles; furniture; toys; and steel products. 
Subsequently, the product coverage was reduced somewhat in 2011 (Circular No. 32/2011/TT-BCT of 5 September 2011).
34 A temporary suspension was introduced in 2012 (Circular 
No. 27/2012/TT-BCT of 26 September 2012). According to the authorities, products listed in 
Annex 1 of Circular 24 currently do not need an "automatic" licence. However, Circular No. 
23/2012/TT-BCT of 7 August 2012, which covers automatic licensing of certain steel products, is still in effect (see also section 4.4.3).  
3.43.  The licence must be presented prior to unloa ding in Viet Nam, and requires, along with the 
application form, copies of (i) the business registration certificate, (ii) the import contract or equivalent documents, (iii) the commercial invoice; (iv) the letter of credit or payment documents; 
and (v) the bill of lading. Provided all documentation is in order, the licence should be issued 
automatically within 7 working days, free of any administrative fee or charge.
35 The application is 
considered by a single administrative organ, i.e.  the local Export and Import Management Offices 
affiliated with the Ministry of Industry and Trade.  Licences are valid for 30 days from the date of 
issue, and are not transferable among importers. Importers must apply for a new licence when the 
old licence has expired. According to the authorit ies, the system is automatic in nature and in 
practice, and complies fully with the WTO Agreement on Import Licensing Procedures. Except for 
the Circulars pertaining to automatic licences, no changes have occurred to Viet Nam's import 
licensing regime since its accession to the WTO.36  
                                               
32 WTO document G/LIC/Q/VNM/3, 18 July 2012.  
33 Other modifications to the system occurred in 2010 through Circulars Nos. 22/2010/TT-BCT of 
20 May 2010, 31/2010/TT-BCT of 28 July 2010, and 42/2010/ of 28 December 2010. These circulars are no longer valid. 
34 Products listed in Annex 1 of Circular No. 24/2010/TT-BCT fall within HS Chapters 2, 20, 64, and 95 
and major parts of HS Chapters 3, 16, 17, 18, 19, 21, 22, 33, 39, 61, 62, 63, 69, 70, 73, 76, 84, 85, 87, and 94. In 2011, Circular 32 removed the licensing requirement for line telephone sets with cordless handsets (HS code 8517.11.00.00) and cell phones or telephones used for other wireless networks (HS 9517.12.00.00).  
35 According to some sources, the issuance of licenc es has often taken more than 7 days. In addition, 
applications have had to be sent by regular mail, and the requirement to present a copy of the original bill of 
lading constrained importers wishing to apply early for a li cence, as the bill of lading could not be obtained until 
cargo had been loaded for shipment to  Viet Nam. At present, licence applications for steel products can be 
submitted online (U.S. Commercial Servic e, 2011; and European Commission, 2011). 
36 In the absence of a notification  from Viet Nam, the United States  addressed formal questions to 
Viet Nam on the new regime in 2008 (WTO document G/LIC/Q/VNM/1, 10 October 2008). Viet Nam outlined its automatic licensing system with reference to Article 7.3 of the Agreement on Import Licensing Procedures 
(ILA) in 2011 (WTO document G/LIC/N/3/VNM/1, 12 May 2011). The United States responded to Viet Nam in 
March 2012, stating that Viet Nam did not appear to have fu lfilled the notification obligations of Article 5 of the 
ILA and had not provided the relevant texts as required  by Articles 1.4(a) and 8.2(b) of the ILA (document 
G/LIC/Q/VNM/2, 20 March 2012). Viet Nam's responses to the issues raised by the United States are contained in WTO document G/LIC/Q/VNM/3, 18 July 2012. Viet Nam provided the texts (in English) of Circulars 
Nos. 24/2010/TT-BCT and 32/2011/TT-BCT in notifications dated 26 April 2012 (WTO documents 
G/LIC/N/1/VNM/1 and G/LIC/N/2/VNM/1), and Circular No. 27/2012/TT-BCT in a notification dated 10 January 2013 (WTO document G/LIC/N/1/VNM/2). However, the appendices specifying the goods subject to WT/TPR/S/287 • Viet Nam 
 
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  3.44.  Prior to accession, Viet Nam had eliminated foreign exchange restrictions on "dispensable 
and non-essential" import items and consumer  goods, and "payment method" restrictions. 
However, in April 2010 the Ministry of Indu stry and Trade promulgated a long list of 
"non-essential" imported commodities and consumer goods not encouraged for import.37 The State 
Bank of Viet Nam subsequently instructed credit institutions to consider carefully or restrict the 
provision of foreign currency loans to finance imports of the listed items.38 The list was expanded 
in 2011, as Decision 1899 was replaced by Decision No. 1380/QD-BCT of 25 March 2011. Among 
the discouraged items are live animals, dairy produc ts, sugar confectionary, fish and crustaceans, 
and table salt.  
3.2.8  Customs valuation 3.45.  Article 71 of the Law on Customs No . 29/2001/QH of 29 June 2001, and Article 1, 
section 23 of the amended Law of 14 June 2005 cons titute the basic legal provisions for customs 
valuation in Viet Nam. Implementing legisl ation comprises Decision No. 40/2007/ND-CP of 
16 March 2007 and Circular No. 205/2010/TT-BTC of 15 December 2010.
39 In addition, the 
Director General of Viet Nam Customs issued Decision No. 103/QD-TCHQ regarding customs 
inspection, consultations, and the determination of the taxable price for imported and exported 
goods on 24 January 2011. 
3.46.  Viet Nam joined the WTO without a transi tion period to implement the WTO Agreement on 
the Implementation of Article VII of the GATT 1 994 (Customs Valuation Agreement), including the 
Interpretative Notes (Annex I) to the Agreement.40 Viet Nam's legislation stipulates the transaction 
value as the principal method of customs valuation, and provides for the alternative valuation 
methods (including the computed value and deductive methods) and the sequential order of 
application as laid down in the Customs Valuation Agreement. Ministry of Finance Circular No. 114/2005/TT-BTC on import-export post clearance audit was replaced by Circular 
No. 194/2010/TT-BTC of 6 December 2010.  
3.47.  Prior to accession, Viet Nam used minimu m import prices for the customs valuation of 
certain goods, including wine, spirits and ceramic tiles, but confirmed that minimum prices or 
reference prices would not be introduced or re-introduced in lieu  of the transaction value from the 
date of accession. However, Viet Nam would consider the establishment of a valuation database as a risk assessment tool.
41 In January 2011, the General Department of Customs issued an official 
letter identifying reference prices for selected imported goods by trading partner.42 The stated 
purpose of this tool is to enable comparison with  the prices declared by the enterprises to prevent 
false information and tax evasion. The product list initially covered 13 categories, but was expanded to 20 categories in May 2011.
43 Together with official letter No. 5486/TCHQ-TXNK of 
10 October 2012, the reference price system currently covers frozen meat and poultry, fresh and 
frozen fish, edible fresh fruit, wine, beer, sanitation equipment, fabrics, tiles, glass, gas stoves, engines, generators, air conditioners, refrigerators, washing machines, household electrical 
equipment, power generating sets, mobile phones, all types of motor vehicles, electric bicycles, 
motorcycles, and iron and steel.  
3.48.  Decree No 40/2007/ND-CP of 16 March 2007 (Articles 16 and 17) provides for a guarantee 
system for the release of goods from customs pending the final determination of the customs 
value. An importer may appeal a disputed valuation decision pursuant this Decree and Article 1 of 
                                                                                                                                               
this measure were not submitted, a fact also noted by  the United States in a submission circulated in 
April 2013 (WTO document G/LIC/Q/VNM/4).  
37 Decision No. 1899/2010/QD-BCT of 16 April 2010. The initial list covered some 1,500 tariff lines.  
38 Document No. 3215/NHNN-CSTT of 29 April 2010. 
39 Decision No. 30/2008/QD-BTC of 21 May 2008 an d Circular No. 163/2009/TT-BTC of 13 August 2009 
stipulate the declarat ion forms, and provide some guidance on the declaration of customs value.  
40 Viet Nam agreed to implement Decision 3.1 of the WTO Committee on Customs Valuation no later 
than two years from the date of accession. Regarding th e valuation of carrier media bearing software for data 
processing equipment, Viet Nam is applying paragraph 2 of Decision 4.1 according to Article 13, clause 3 of 
Circular No. 205/2010/TT of 15 December 2010. 
41 Decision No. 1102/2008/QD-BTC of 21 May 2008 concerns the development, management, and use 
of a price database.  
42 Official Letter No. 348/TCHQ-TXNK of 21 January 2011 on List of Administrated Imported Goods at 
Risks and (Reference). The letter entered into force on 29 January 2011. 
43 Official Letter No. 2334/TCHQ-TXNK of 23 May 2011, in force since 1 June 2011.  WT/TPR/S/287 • Viet Nam 
 
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  the Law on Complaints and Denunciation. The matter may be taken to a higher administrative 
body or a case may be brought before the Administrative Court.  
3.49.  According to Vietnamese businesses, the application of HS Codes is not always uniform 
across customs offices, which means that the sa me good could be subject to different duty 
depending on classification matters.44 According to the customs authorities, some of these issues 
may be due to differences in the technical documentation and product descriptions provided by the importers themselves, or to new high-tech, multi-functional, and complex goods giving rise to 
different opinions among customs officials regarding correct classification. Viet Nam Customs is 
currently constructing a database for unified inspecti on and classification of certain types of goods.  
3.2.9  Rules of origin 3.50.  Viet Nam has issued several legal docume nts to implement ASEAN preferential rules of 
origin and non-preferential rules of origin. The basic legal document is Government Decree 
No. 19/2006/ND-CP of 20 February 2006 detailing the provisions of the Commercial Law on goods origin. Certificates of origin are required for goods subject to import management regulations in 
accordance with Vietnamese laws or international treaties or agreements to which Viet Nam is a 
party; goods considered likely to harm social security, public health or the environment; goods imported from countries subject to trade remedy measures or tariff-rate quotas; and for imports 
from preferential trading partners. Importers wish ing to obtain prior assessments of origin may 
submit relevant documents and materials to the customs office. According to Article 8 of Circular No. 194/2010/TT-BTC of 6 December 2010, prior certif ication of origin is valid for one year from 
the date of issue, and may also apply to goods of the same category coming from the same 
producer or exporter the importer is trading with.  
3.51.  Viet Nam implements ASEAN preferential ru les of origin. Importers are required to submit 
certificates of origin (form D) either satisfying the wholly obtained criterion or proving minimum 
40% ASEAN cumulative origin for goods imported under the ASEAN Trade in Goods Agreement. 
ASEAN free-trade agreements with other partners such as China, Korea, Australia/New Zealand, and India are also based on the wholly obtained criterion or substantial transformation involving a 
change in tariff heading, and allowing for regional cumulative origin.
45 Other rules may apply 
specifically to minimal operations and processes; accessories, spare parts, and tools; identical and interchangeable materials; the treatment of packaging materials and containers; and indirect materials.
46  
3.52.  The Ministry of Industry and Trade is the co mpetent authority for the issue of certificates of 
origin. It concurrently authorizes the management boards of industrial parks and export processing zones to issue certificates of origin form D, and the Chamber of Commerce and 
Industry of Viet Nam to issue preferential certific ates of origin under the GSP of foreign countries 
that grant non-preferential certificates of origin for Viet Nam.  
3.2.10  Anti-dumping, countervailin g duty, and safeguard regimes 
3.53.  The Law on Import and Export Duties was amended in May 1998 to introduce provisions 
(Articles 2 and 9) allowing the imposition of additional duty on imports priced lower than the "normal price as a result of dumping practices, and consequently causing difficulties to domestic producers of like products" or "normal price resulting from subsidy in the exporting country, 
consequently causing difficulties to domestic producers of like products". These general provisions 
were supplemented by a more detailed legal and institutional framework during 2002-06, i.e. in the period prior to Viet Nam's WTO accession.  
                                               
44 Vietnam Business Associations (2011). 
45 The ASEAN agreements with China, Korea, and Australia/New Zealand 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 Korea contains product-specific rules for 447 tariff lines at the HS six-digit level. Notably for processed shrimps and crabs, the regional va lue content must be not less  than 35% of the f.o.b. 
value of the goods.  
46 Viet Nam has notified the preferential rules of origin applicable in the ASEAN FTAs with 
Australia/New Zealand and In dia to the WTO Committee on Rules of Origin (WTO document G/RO/N/68 of 
23 February 2011).  WT/TPR/S/287 • Viet Nam 
 
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  3.54.  In the area of anti-dumping, the Or dinance No. 20/2004/PL-UBTVQH11 sets out the 
framework for the filing of complaints, the initiation and conduct of an anti-dumping investigation, consultation with the parties, confidentiality, preliminary and final determinations, the application of anti-dumping measures, review, complaints, and th e handling of violations. Article 5, clause 4 of 
the Ordinance establishes a public interest criterion, stating that the application of anti-dumping 
measures "must not cause harm to the national socio-economic interests". Further detailed provisions to implement Ordinance No. 20 were laid down in Government Decree 
No. 90/2005/ND-CP.  
3.55.  Countervailing measures may be applied pursuant to the Ordinance on Anti-Subsidy for 
imports into Viet Nam No. 22/2004/Pl-UBTVQH11. The ordinance establishes the definition of a subsidy in Articles 2 and 3. Countervailing measures may take the form of an anti-subsidy tax or 
acceptance of undertakings by the exporting enterprises or their governments (Article 4). 
Additional detailed provisions, particularly concerning the establishment of an Anti-subsidy Commission and the conduct of investigations, are contained in Government Decree 
No. 89/2005/ND-CP. 
3.56.  The Ordinance on Safeguards in the Import of Foreign Goods into Viet Nam was approved in 
2002
47, and Government Decree No. 150/2003/ND-CP of 8 December 2003 provides detailed 
regulations for the implementation of the ordinance. Safeguard measures may only be applied in 
response to an "excessive" increase in imports, in absolute or relative terms, causing or threatening to cause serious injury to domestic manufacturers of similar or directly competing goods. The Ministry of Industry and Trade is in charge of safeguard investigations. Interim 
safeguard measures may only take the form of an additional import duty in accordance with the 
Law on Export and Import Duties. Final measures  may involve higher import duty, quantitative 
restrictions, imposition of a tariff-rate quota, the application of specific (i.e. non- ad valorem ) 
duties, import permits, surcharges, or any other measure decided by the Government. Subject to 
review, and including extensions, a safeguard measure may be in place for a total of ten years.  
3.57.  In addition to these ordinances and decrees, the Ministry of Finance has 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.
48 In early 2006, the Government also issued 
a decree setting up a council affiliated to the Ministry  of Trade and assisting it in the evaluation of 
anti-dumping, countervailing, or safeguard measures.49 The Viet Nam Competition Authority (VCA) 
may also, upon request of the Minister of Industry and Trade, conduct investigations on the 
Ministry's behalf and provide other support to the Ministry at various stages in investigations of alleged dumping, foreign subsidies, or the application of safeguard measures.
50  
3.58.  Viet Nam notified laws and regulations pert aining to trade remedy measures to the WTO in 
2009, and responded to detailed questions on its anti-dumping regime in 2010.51 Although 
Viet Nam has established a framework to conduct anti-dumping and countervailing investigations, 
it has not conducted such actions so far. The Ministry of Industry and Trade initiated a safeguards 
investigation into the possible application of safeguard measures against imports of float glass through Decision No. 3329/QD-BCT of 1 July 2009.
52 Although the investigating authority (VCA) 
reported serious injury, or threat thereof, to the domestic industry caused by increased imports53, 
it terminated the case with no safeguard measure imposed in February 2010.54 The authority 
considered that other factors, such as trade fraud and depressed domestic demand, had 
                                               
47 Ordinance No. 42/2002/PL-UBTVQH10 of 25 May 2002.  
48 Circular No. 106/2005/TT-BTC of 5 December 2005.  
49 Government Decree No. 04/2006/ND-CP of 9 January 2006 on Establishment, functions, duties, 
powers, and organizational structure of the Council for Handling Cases of Combat against Dumping, Combat 
against Subsidy, and Self Protection.  
50 Government Decree No. 06/2006/ND-CP of 9 January 2006.  
51 WTO documents G/ADP/N/VNM/1, 9 October 2009 (anti-dumping legislation) and G/SG/N/1/VNM/1, 
30 September 2009 (safeguards). The VCA's Trade Remedies Board is listed as Viet Nam's competent authority for anti-dumping and countervailing  investigations in document G/ADP/N/14/Add.28 (G/SCM/N/18/Add.28), 
14 October 2009. Replies to questions posed by the United States on Viet Nam's anti-dumping legislation have been circulated in document G/ADP/Q1/VNM/2(G/SCM/Q1/VNM/2), 18 June 2010.  
52 WTO document G/GS/N/6/VNM/1, 31 July 2009. The affected products carried the HS Codes 
7005.29.90.00 and 7005.21.90.00. 
53 WTO document G/SG/N/8/VNM/1, 12 January 2010. 
54 WTO document G/SG/N/9/VNM/1, 7 April 2010. WT/TPR/S/287 • Viet Nam 
 
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  contributed to the injury, and thus safeguard measures on imports would be inappropriate under 
the circumstances.  
3.59.  On 26 December 2012, the VCA initiated a safeguard investigation on imports of certain 
vegetable oils.55 The decision to impose a provisional safeguard measure in the form of an 
additional import duty of 5% was announced in May 2013 and has been notified to the WTO.56  
3.60.  On behalf of the Ministry of Industry an d Trade, the VCA announces and publishes decisions 
regarding anti-dumping, countervailing, and safeguard measures through notifications to the WTO, 
official dispatches to the parties concerned, its website ( www.vca.gov.vn ), and its annual reports. 
In this manner, the VCA also informs interested parties and the general public about complaints 
filed by domestic industries, and key stages in the investigation. Domestically, the termination of the safeguard investigation into imported float glass was made public by the Ministry of Industry and 
Trade through Decision No. 0890/QD-BCT on 23 Febr uary 2010, and the initiation of the safeguard 
investigation into imports of certain vegetable oils was made public in Decision No. 7968/QD-BCT.  
3.3  Measures Directly Affecting Exports  
3.3.1  Export procedures and requirements 
3.61.  The requirements to be a registered export er are essentially the same as the requirements 
to be a registered importer, i.e. domestic invest ors need a valid business registration certificate 
whereas a foreign investor must hold a valid investment certificate. The export rights of 
foreign-invested enterprises in Viet Nam are la id down in Government Decree No. 23/2007/ND-CP, 
and the rights of foreign traders without a physical presence in Viet Nam are regulated in accordance with Government Decree No. 90/2007/ND-CP. Foreign-invested enterprises may 
export their own production as well as any other purchased goods unless they are listed as banned 
from exportation; exportation is suspended; or th e right to export is not granted. The right to 
export rice from Viet Nam was reserved for Vietnamese individuals with registered business and 
enterprises until 1 January 2011, but foreigners have  been free to enter the Vietnamese rice trade 
since then. Effective the same date, rice exporters must satisfy stricter requirements regarding storage and processing facilities (see also section 4.2.3.1).
57 Contracts for the export of rice 
require registration with the Viet Nam Food Association. The registration procedure has been in 
place since 2006.  
3.62.  Decree No. 90/2007/ND-CP allows traders not physically present in Viet Nam to take 
responsibility for export-related procedures for goods purchased in Viet Nam. However, the right 
to export does not extend to the establishment of a network in Viet Nam to purchase goods for 
export. The registration of the export (and import ) rights of foreign traders not physically present 
in Viet Nam is stipulated in Circular No. 28/2012/TT-BCT of 27 September 2012. 
3.3.2  Export taxes, fees, and charges for services rendered, and internal taxes on 
exports 
3.63.  Viet Nam levies export duties on certain products, mostly metals, raw hides and skins, and 
w o o d  p r o d u c t s ,  i n  a c c o r d a n c e  w i t h  t h e  L a w  o n  E x p o r t  a n d  I m p o r t  D u t i e s ,  i n  e f f e c t  s i n c e  
1 January 2006 (Table A3.5). The taxes are applied on an MFN basis. In the context of WTO accession, Viet Nam agreed to reduce export duties on scrap metal from 35-45% to 17-22% over a five-year period. 
3.64.  Apart from the tax reductions on metal scrap, Viet Nam's export tax regime has undergone 
numerous changes since 2006. For example, export du ties have been increased on crude oil (from 
4% to 10%), some wood products, and precious stones. Coverage has been expanded to, 
inter alia , notably minerals, agarwood, metal ores and concentrates, coal, rubber, diamonds, gold, 
and silver. Other items such as cashew nuts, pa ckaging materials, parquet flooring, doors and 
frames, and ingots and semi-finished products of iron or non-alloy steel are no longer subject to 
export duty or are temporarily zero-rated.  
                                               
55 WTO document G/SG/N/6/VNM/2, 11 January 2013. The goods concerned are refined soya bean oil, 
RBD palm olein oil, and RBD palm stearin oil (HS Codes 1507.90.90, 1511.90.91, 1511.90.92, and 1511.90.99.  
56 WTO document G/SG/N/7/VNM/1, 15 May 2013.  
57 Decree No. 109/2010/ND-CP and Circular No. 44/2010/TT-BCT guiding Decree No. 109.  WT/TPR/S/287 • Viet Nam 
 
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  3.65.  Viet Nam levies royalties on natural resources, such as basic metals and minerals, timber, 
water, crude oil, and natural gas used in domestic production or exported (Table 3.8). The Law on Royalties No. 45/2009/QH12, together with its im plementing regulations, constitutes the legal 
basis for these payments.
58 The Standing Committee of the National Assembly has established 
minimum and maximum rates for each product, and th e applied royalty rate is required to remain 
within the set band.  
3.66.  Royalty payments are levied at ad valorem  rates. The f.o.b. export price constitutes the tax 
base for exported commodities.59 In general, the tax base is the exploiter's sales price exclusive of 
VAT or, if individual sales prices cannot be de termined, 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 
commercial generation of hydropower are charge d 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 exempt from royalty payments.  
Table 3.8 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 10 
1 Manganese  7-20 11 
2 Titan  7-20 11 
3 Gold 9-25 15 
4 Rare earths 12-25 15 
5 Platinum, silver and tin  7-25 10 
6 Volfram and antimony 7-25 10 
7 Lead, zinc, copper, nickel  7-25 10 
8 Aluminum, bauxite  12 
9 Cobalt, molybdenum, mercury, magnesium and vanadium 7-25 10 
10 Other metallic minerals 5-25 10 
II Non-metallic minerals    
1 Soil exploited for ground leveling and work construction 3-10 4 
2 Rock, gravel 5-15 6 
3 Rock used for lime baking  and cement production 5-15 7 
4 Sand 5-15 10 
5 Sand used for glass-making 7-15 11 
6 Soil used for brick-making 5-15 7 
7 Granite and refractory clay 7-20 10 
8 Dolomite and quartzite 7-20 12 
9 Kaolin, mica, technical quartz 7-15 10 
10 Pyrite, phosphorite 5-15 7 
11 Apatite and serpentine 3-10 3 
12 Pit anthracite coal 4-20 5 
13 Open-cast anthracite coal 6-20 7 
14 Lignite and fat coal 6-20 7 
15 Other coals 4-20 5 
16 Diamond, ruby and sapphire 16-30 22 
17 Emerald, alexandrite an d black precious opal 16-30 20 
18 Adrite, rodolite, pyrope, berine. Spinel and topaz 12-25 15 
19 Bluish-purple, greenish-yellow or orange crystalline quartz; 
chrysolite; white or scarlet precious opal; feldspar; birusa; and 
nephrite 12-25 15 
20 Other non-metallic minerals 4-25 5 
III Natural forest products    
1 Timber of group I 25-35 35 
2 Timber of group II 20-30 30 
3 Timber of groups III and IV 15-20 20 
4 Timber of groups V, VI, VII an d VIII and of other categories 10-15 15 
5 Tree branches, tops, stumps and roots 10-20 10 
                                               
58 The implementing legislation comprises Resoluti on No. 928/2010/UBTVQH12 promulgating the royalty 
tariff, Decree No. 50/2010/ND-CP, and Circulars Nos. 105/2010/TT-BTC and 32/2009/TT-BTC. 
59 Prior to the issue of Government Decree No. 50/2010/ND-CP of 14 May 2010, the taxable price was 
the price at the place exploitation also for exports.  WT/TPR/S/287 • Viet Nam 
 
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  No. Group or category of nature resource Royalty tax 
frame 
(%) Royalty tax 
rate 
(%) 
6 Firewood 1-5 5 
7 Bamboo of all kinds 10-15 10 
8 Sandalwood and calambac 25-30 25 
9 Anise, cinnamon, cardamom and liquorice 10-15 10 
10 Other natural forest products 5-15 5 
IV Natural aquatic resources   
1 Pearl, abalone and sea-cucumber 6-10 10 
2 Other natural aquatic resources 1-5 2 
V Natural water    
1 Natural mineral water, natural thermal water and refined natural 
water, bottled or tinned 8-10 8 
2 Natural water used for hydropower generation 2-5 2 
3 Natural water used for production  and business activities, except 
water mentioned at Points 1 and 2 of this group   
3.1 Surface water   
 - Used as primary or secondary raw materials to consitute 
material elements in the manufact ure of products, except for the 
production of clean water  1-3 3 
 - Common use for production indu strial hygiene, cooling, steam 
generation, clean water production 1-3 1 
 - For service operations, indust rial production, construction, 
mining 1-3 3 
 - For other purposes 1-3 1 
3.2 Groundwater    
 - Used as primary or secondary raw materials to consitute 
material elements in the manufact ure of products, except for the 
production of clean water  3-8 5 
 - Common use for production indu strial hygiene, cooling, steam 
generation, clean water production 3-8 3 
 - For service operations, indust rial production, construction, 
mining 3-8 6 
 - For other purposes 3-8 3 
VI Natural swallow's nest 10-20 20 
VII Other resources 1-20 10 
 
(b) Royalty on crude oil, natural gas, and coal gas 
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 Vietnamese authorities. 
3.3.3  Export restrictions 
3.67.  Viet Nam enforces export controls pursuant to the provisions of international treaties to 
which it is a party: export permits are required for shipments of arms and ammunition, toxic 
chemicals, narcotics, antiquities, etc. (Table A3 .6). Exports of textiles, which were subject to 
controls in the past due to quantitative limitations in certain markets, were removed from the list of export controls as Viet Nam joined the WTO. On 16 September 2009, the Ministry of Agriculture 
and Rural Development issued Circular No. 60/2009/TT-BNNPTNT, listing agricultural, fisheries, 
and forestry products subject to "specialized export and import management" or authorized conditionally to be exported. Circular No . 88/2011/TT-BNNPTNT of 28 December 2011, which WT/TPR/S/287 • Viet Nam 
 
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  replaced Circular 60, lists agricultural, fisher ies, and forestry products subject to export 
prohibition, and aquatic species subject to "export conditions". 
3.68.  Decree No. 12/2006/ND-CP provides the lega l basis for the Ministry of Industry and Trade 
to announce exports to be administered by the issu e of automatic licences. Such licences would be 
applied in specific circumstances, and the purpose would not be to limit the export of goods. No 
products are subject to automatic export licences at present and, according to the authorities, 
Viet Nam has never applied automatic licensing to exports. The authorities deny that measures 
such as (automatic) licensing of minerals export have been applied (see also section 4.3.1), and 
refer to Circular No. 41/2012/TT-BCT of 24 December 2012 (which stipulates quality standards and conditions for certain exported minerals) for further information. Export controls on unprocessed minerals have been applied for more than ten years. The Ministry of Construction 
banned exports of eight minerals used as building materials, under Circular No. 04/2012/TT-BXD 
of 20 September 2012. 
3.3.4  Export subsidies, finance, and guarantees 
3.69.  In 1998, Viet Nam introduced interest rate support, export bonuses, support to vegetables 
and fruit, and payments to enterprises exportin g rice, pork, and coffee to compensate for their 
losses. The agricultural export subsidies were co vered by direct transfers from the State budget. 
However, as Viet Nam joined the WTO with a commitment not to maintain agricultural export 
subsidies from the date of accession, these types of direct payments were discontinued and support was shifted to general trade promotion activities.  
3.70.  The Viet Nam Development Bank (VDB), established under Prime Minister's Decision 
No. 108/2006/QD-TTg of 19 May 2006, provides export  credits, investment credit guarantees, and 
export project performance security. The averag e outstanding volume of its export credits 
amounted to ₫16.15 trillion in 2010, while the interest paid by its export credit borrowers 
exceeded ₫1 trillion. Further to Circular No. 18/2010/TT-NHNN, interest rate support 
(4 percentage points) is available to clients contracting medium- and long-term loans with the VDB. The bank estimates that the total inte rest rate support on such loans exceeded ₫97 billion in 
2010, of which the subsidized interest on export credits accounted for nearly ₫65 billion.
60  
3.71.  No export guarantee schemes are operated by the Government or a government agency. 
Export credits guaranteed by banks, whether Vietnamese credit institutions or foreign bank branches, are governed by Circular No. 28/2012/TT-NHNN of 3 October 2012.
61 No preferential 
treatment is accorded to export credit guarantee activities.  
3.3.5  Export promotion and marketing assistance 3.72.  Viet Nam promulgated a national trade promotion programme through Prime Minister's 
Decision No. 279/2005/QD-TTg of 3 November 2005. The Decision constituted the framework for 
state-funded trade promotion activities from 2006 to 2010, such as the hiring of domestic and 
foreign experts to advise on export development or product quality improvements; the 
organization of trade fairs and exhibitions an d sponsoring the participation of Vietnamese 
enterprises at such events in Viet Nam and abroad; surveys in overseas markets; and the 
establishment of trade promotion centres. The de gree of state funding varied and, for example, 
cover 100% of the expenses for the construction and decoration of pavilions at trade fairs, while 
the hiring of consultants or participation at overseas fairs required co-funding (50%) by the 
beneficiary enterprises.  
3.73.  The state funding of these activities was derived from the Export Promotion Fund, 
established pursuant to Prime Minister's Decision No. 195/1999/QD-TTg. Payments into the fund 
were originally derived from surcharges of 0.1% to  0.2% on certain exports. In addition to direct 
allocations from the State budget, revenue from quota allocation charges, and fees for certificates 
of origin were also channelled into the Fund. The Export Promotion Fund was closed down in 
2008
62, but remaining funds were made available for trade promotion activities. Moreover, 
People's Committees at the provincial and municipal level were invited to finance trade promotion 
                                               
60 Viet Nam Development Bank (2010). 
61 The circular replaced Decision No. 26/2006/QD-NHNN of 26 June 2006. 
62 Prime Minister's Decision No. 124/2008/QD-TTg of 8 September 2008.  WT/TPR/S/287 • Viet Nam 
 
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  activities from surplus revenue or other legitimate sources (mentioned in Government Resolution 
No. 05/2002/NQ-CP). Viet Nam has no fund supporting trade promotion at present.  
3.74.  Decision 279 was amended and supplemented by Prime Minister's Decision 
No. 80/2009/QD-TTg of 21 May 2009. The new Decision made the trade promotion system more 
flexible, inter alia,  by enabling certain local businesses and trade promotion organizations in 
centrally governed provinces and municipalities  to take part in national trade promotion 
programmes on an equal footing.63 A measure designed to stimulate the participation of local 
businesses in national trade promotion programmes, allowed the Ministry of Industry and Trade to 
approve local business promotion plans seekin g capital support from the central budget. 
Decision 80 also increased the state funding of training programmes from 30% to 100%, and from 70% to 100% for the payment of travel by foreig n guests to attend national trade promotion 
events in Viet Nam.
64 The Vietnam Trade Promotion Agency (Vietrade) was tasked to transmit 
written instructions to local People's Committees on the implementation of Decision 80.65 At 
present, Viet Nam's national trade promotion pr ogramme is implemented according to Decision 
No. 72/2010/QD-TTg of 15 November 2010.  
3.75.  Public expenditures on trade promotion activi ties appear to have been fluctuating in recent 
years. The Vietnamese Government earmarked more than ₫160 billion (US$10 million) to finance 
trade promotion activities in 2007.66 The budget for the national trade promotion programme 
amounted to ₫55 billion.67 For 2012, the Ministry of Industry and Trade approved a programme 
comprising 114 projects with a total budget of ₫93 billion.  
3.4  Measures Affecting Production and Trade 
3.4.1  Subsidies 
3.76.  During its WTO accession process, Viet Nam provided information on industrial subsidies in 
the format used to submit notifications under Ar ticle XVI:1 of the GATT 1994 and Article 25 of the 
WTO Agreement on Subsidies and Countervailing Measures.68 The documentation detailed sector-
specific programmes applicable to the production of motorbikes, mechanical-electric-electronic products, mechanical engineering, shipbuilding, and textile and clothing, as well as support more 
generally available in the form of investment incentives, support to "priority" manufacturing 
sectors, regional development, research and deve lopment, and assistance to enterprises facing 
difficulties "due to objective reasons". The measures differed from programme to programme, but included preferential import duties and tariff exemptions; tax incentives, including reductions or 
exemptions in relation to corporate income tax, and the land-use tax; subsidized loans; and 
investment guarantees. Support to textile and garment industries contingent upon export performance or the use of domestic over imported goods was curtailed in 2006.
69 Certain 
investment incentives to foreign invested and domestic enterprises, i.e. preferential tariff and tax 
treatment linked to export performance and local content, were terminated upon WTO accession, 
but existing beneficiaries could continue to receive preferences for up to five years after Viet Nam 
joined the WTO. Export performance and local-content requirements were also removed from 
two programmes operating under the authority of the Development Assistance Fund.  
                                               
63 Vietnam Trade News , 14 October 2009. Viewed at: 
http://www.xuatkhauvietnam.com/english/index.php?option=com_content&view=article&id=1271:a-catalyst-
to-vietnam-export&catid=45:general-news&Itemid=29.   
64 Vietnam Trade News , 15 June 2009. Viewed at: 
http://www.xuatkhauvietnam.com/english/index.php?option=com_content&view=article&id=1271:a-catalyst-
to-vietnam-export&catid=45:general-news&Itemid=29 . 
65 Vietrade was established in 2000 and reports to the Ministry of Industry and Trade.  
66 Ministry of Finance, Legal Department, 27 November 2006. Viewed at: 
http://www.mof.gov.vn/portal/page/portal/ilfv_en/dn?pers_id=2426908&item_id=2437562&p_details=1 . 
67 According to the Vietnamese authorities, the budget corresponded to 13.6% of the total amount 
requested by enterprises for trade promotion activities.  
68 WTO document WT/ACC/VNM/13 covered the period 1996-98, and its addenda 1 and 2 updated the 
information for 1999-2000 and 2001-02. Document WT/ACC/VNM/42/Rev.1 details subsidies provided during 
2003 and 2004.  
69 Decision No. 55/2001/QD-TTg was repealed on 30 May 2006, and no further disbursements were 
made further to this Decision as from 31 May 2006.  WT/TPR/S/287 • Viet Nam 
 
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  3.77.  Viet Nam did not provide subsidy notifications until March 2013, when it notified details of 
support programmes applied in 2005-07.70 Without a more recent update, the information 
contained in this section can only be considered indicative of the kind of support provided to specific industries or more generally available to encourage investments, regional development, 
research, etc. Moreover, the Secretariat has no reliable data on debt forgiveness to loss-making 
state-owned or private enterprises.  
3.78.  Corporate income tax is levied at the general rate of 25% in Viet Nam, but tax incentives 
are available in certain instances.
71 New hi-tech companies or enterprises otherwise involved in 
research and development, the development of infrastructure of special importance, or the 
production of software are entitled to a corporate tax rate of 10% for 15 years. The same tax rate is also applicable to enterprises providing education, vocational training, health care services, or sports services, or enterprises operating in ge ographical areas with "extreme socio-economic 
difficulties".
72 Agricultural service cooperatives and people's credit funds are subject to a tax rate 
of 20%. In principle, the tax rate is applied from the first year in which the enterprise has turnover, but time-limited tax exemptions or tax reductions (50%) may apply, subject to certain 
conditions. Enterprises employing ethnic minorities or predominantly female workers are entitled 
to tax reductions. Viet Nam also uses tax incentives to promote environmental protection activities 
such as the treatment of waste.  
3.79.  The Viet Nam Development Bank (VDB) was established in 2006, based on a reorganization 
of the Development Assistance Fund.
73 The VDB is a non-profit institution with chartered capital of 
₫10 trillion. The compulsory reserve ratio of the VD B is 0%, and its solvency is guaranteed by the 
Government. The VDB raises capital from Vietnamese and foreign sources, and receives funds from the state budget. The Government has entrusted the VDB with the disbursement and 
management of ODA (official development assistance) loans, which reached a total of 420 projects 
with a total commitment of ₫76 trillion at the end of 2010.  
3.80.  Over the years, the Viet Nam Developm ent Bank has financed numerous infrastructure 
projects as well as business development. Funding has been provided, for example, for the 
construction of canals, afforestation, power generation, sanitation plants, and healthcare facilities. 
The bank has financed investments in the production of cement. The VDB has also implemented other tasks assigned by the Government, such as providing enterprises in difficulty with working capital to ensure the payment of salaries, pursuant to the Prime Minister's Decisions Nos. 30/2009/QD-TTg and 87/2010/QD-TTg.  
3.81.  In addition to export credits and guarant ees, the VDB implements state policies with respect 
to the financing of investments, post-investment assistance, and investment credit guarantees. During 2010, the VDB signed post-investment assi stance contracts for 23 projects with a total 
subsidy of ₫57.9 billion.
74 The bank may issue guarantees for debt contracted by SMEs with 
commercial banks. In 2010, the VDB approved 428 applications for SME credit guarantees totalling 
₫2,711 billion. Loans guaranteed by the VDB totalled ₫4,300 billion at the end of 2010.  
3.82.  Enterprises and individuals that contract medium- and long-term loans with the VDB are 
entitled to a subsidized rate of interest und er a programme implemented in accordance with 
Circular No. 18/2010/TT-NHNN. The interest subsidy exceeded ₫97 billion in 2010 for outstanding 
loans totalling ₫5 trillion.75 Interest support for medium- and long-term bank financing of 
production and business development generally was established through Prime Minister's Decision 
No. 443/QD-TTg of 4 April 2009, supplemented by a State Bank circular detailing the 
implementation of this decision.76 The Government has also issued decisions specifically 
concerning subsidized credit for the acquisition of agricultural machinery and the construction of 
                                               
70 WTO document G/SCM/N/155/VNM, 13 March 2013.  
71 Rates applied to the prospecting, exploration, and mining of rare natural resources, crude oil, and 
natural gas range from 32% to 50% depending on th e specific project and business establishment.  
72 Otherwise, the tax rate for ne w enterprises in areas of socio-economic difficulty is 20%.  
73 Prime Minister's Decision No. 108/2006/QD-TTg, 19 May 2006.  
74 By the end of 2010, 535 subsidy contracts, with a total committed subsidy of ₫2,552 billion, remained 
valid. Projects eligible for post-investment assist ance are identified under Decree No. 106/2008/ND-CP 
amending and supplementing Decree No. 151/2006/ND-CP, 20 December 2006.  
75 The subsidy reduces the applicable rate of interest by 4 percentage points.  
76 Circular No. 05/2009/TT-NHNN, 7 April 2009, amended by Circular No. 21/2009/TT-NHNN, 
9 October 2009; and Circular No. 27/2009/TT-NHNN, 31 December 2009, concerning the interest rate support to be granted in 2010.  WT/TPR/S/287 • Viet Nam 
 
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  dwellings in rural areas.77 Two additional prime minister decisions concern the provision of credit 
to commercial traders operating in disadvantaged ar eas and the interest support to be granted to 
medium- and long-term dong-denominated loans.78 
3.83.  A Government Decision issued in December  2008 outlines the strategy for local industry 
development until 2020.79 The Ministry of Industry and Trade has issued several legal documents, 
including Decree No. 45/2012/ND-CP on industrial promotion, and Circular No. 46/2012/TT-BCT 
guiding the implementation of the decree. The Mini stry is currently working with other relevant 
agencies to complete the framework on industrial promotion.  
3.84.  Assistance measures to support mechanical engineering industries were put forward in early 
2009.80 Eligible investors may, inter alia,  be able to finance up to 85% of their investment through 
the Viet Nam Development Bank, obtain grants from the Support Fund for the Development of Science and Technology, and benefit from import du ty exemptions or reductions on inputs (while 
the import duties on their output is set at the maximum rates permitted under Viet Nam's 
multilateral and preferential obligations). Viet Nam's targets for the development of its chemical 
and mechanical engineering industries are outlined in Table A3.7. Local authorities have also issued legal instruments to support the Government's strategy. Hence, the People's Committee of 
Ha Noi provides subsidized credits and support for participation at trade fairs to eligible 
enterprises.
81  
3.4.2  Standards, technical requir ements, and conformity assessment 
3.4.2.1  Technical barriers to trade 
3.85.  Viet Nam undertook to comply with the ob ligations of the TBT Agreement from the date of 
its accession to the WTO.82 
3.86.  Since its accession, Viet Nam has notified a number of measures to the TBT Committee 
including, as of end-April 2013: 
 a notification that the Directorate for Standards, Metrology and Quality accepted the 
Code of Good Practice for the Preparation, Adoption and Applications of Standards in 
Annex 3 to the TBT Agreement83; 
 notifications under Article 15.2 of the TBT Agreement on measures taken to comply with 
the TBT Agreement, and that the TBT Viet Nam Office, in STAMEQ, is the notification authority and enquiry point for TBT-related issues
84; and 
 33 notifications of regular measures (not counting addenda, or corrigenda) covering a 
variety of products, including a proposed and final technical regulation on alcoholic 
beverages85, which was raised as a specific trade concern in the TBT Committee by 
several delegations.86  
                                               
77 Agricultural machinery and rural housing support is governed by Decision No. 497/QD-TTg, 
17 April 2009, amended by Decision No. 2213/QD-TTg, and details concerning the implementation in Circular No. 09/2009/TT-NHNN of the State Bank of Viet Nam.  
78 Decisions Nos. 92/2009/QD-TTg, 8 July 2009, and 2072/QD-TTg, 11 December 2009.  
79 Decision No. 160/2008/QD-TTg, 4 December 2008 on the "Approval of the overall strategy and 
protection policies for industrial production in accordance with international commitments and WTO regulations until 2020". 
80 Prime Minister's Decision No. 10/2009/QD-TTg, 16 January 2009, on Mechanisms supporting the 
development of key mechanical products and list of key mechanical investment projects for the period 
2009-2015. 
81 Programme No. 124/Ctr-UBND, 19 September 2012 of the People's Committee of Ha Noi. Eligible 
recipients are indicated in Decision No. 25/2008/QD-UBND, 3 October 2008.  
82 WTO document WT/ACC/VNM/48, 27 October 2006, paragraph 303. 
83 WTO document G/TBT/CS/N/175, 20 February 2009. 
84 WTO document G/TBT/2/Add.98, 6 November 2007; Rev.1, 20 February 2009; and Rev.2, 
12 September 2012. 
85 WTO document G/TBT/N/VNM/10, 20 March 2010, Add.1, 23 June 2010, which extended the 
comment period; and Add.2, 28 March 2011, which announ ced its promulgation and entry into effect on 
1 July 2011. 
86 WTO document G/TBT/M/51, 1 October 2010, paras 15-20. WT/TPR/S/287 • Viet Nam 
 
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  In addition, the Ukraine has made two notifications on agreements with Viet Nam on 
standardization, metrology, and conformity assessment.87 
3.87.  A number of government agencies are responsible for standards, technical regulations, 
conformity assessment procedures, and other measures related to technical requirements. These 
agencies include the Ministries of: Science and Technology; Industry and Trade; Agriculture and 
Rural Development; Information and Communication; Natural Resources and Environment; Transport; Health; Labour, Invalids and Social Affairs; Culture, Sports and Tourism; and 
Construction. The Ministry of Science and Technology is responsible for publishing and managing 
national standards and technical regulations in the Official Journal ; it is responsible along with the 
other ministries for developing standards and technical regulations for products and services in its areas of competence. 
3.88.  The Directorate for Standards, Metrolog y and Quality (STAMEQ), under the Ministry of 
Science and Technology, represents Viet Nam in international and regional organizations on issues related to technical requirements (Table 3.9). STAMEQ cannot issue legally binding legislation but 
it is responsible for preparing draft rules on standards and standards-related issues, which are 
submitted to the relevant Ministry or the Government for approval.   
Table 3.9 STAMEQ in international an d regional standards organizations 
Organization Status Date  
International   
International Organization for Standardization (ISO) Member 1977 
Codex Alimentarius Commission Member 1989 
International Laboratory Accreditation Co-operation (ILAC) Member 1992 
International Article Numbering (EAN) Member 1995 
International Electrotechnical Commission (IEC) Associate member 2002 
International Organization for Legal Metrology (OIML) Member 2003 
General Conference on Weights and Measures (BIPM) Associate Member 2003 
Regional   
Pacific Area Standards Congress (PASC) Member 1992 
Asia Pacific Metrology Programme (APMP) Member 1992 
Asia Pacific Quality Organization (APQO) Member  1994 
Asia Pacific Laboratory Accreditation Co-operation (APLAC) Member 1995 
ASEAN Consultative Committee fo r Standards and Quality (ACCSQ) Member 1995 
Asian Productivity Organization (APO) Member 1996 
Asian Pacific Legal Metrology Forum (APLMF) Member 1996 
Asia-Europe Meeting/Trade Facilitation Action Plan/Standards and 
Conformity Assessment (ASEM/FTAP/SCA) Member  1996 
Technonet Asia (TA) Member 1998 
APEC Subcommittee on Standards and Conformance Member  1998 
Pacific Accreditation Co-operation (PAC) Member 2003 
Source: STAMEQ online in formation. Viewed at: http://portal.tcvn.vn/default.asp?action=article&ID=1419  
[March 2013]; USAID (2009), Standards, Metrology, Conformity Assessment and the TBT 
Agreement, A desk top reference handbook, STAR - Vietnam p.130. Viewed at: 
http://pdf.usaid.gov/pdf_docs/PNADP635.pdf  [March 2013]; and international and regional 
organizations listed in the table. 
3.89.  Several subsidiary bodies under STAMEQ provide support for the development of standards 
and technical regulations and are responsible for conformity assessment, quality system 
certification, product certification, accreditation of testing and calibration laboratories, supervision of quality requirements for goods, and other matters related to standards and technical regulations 
(Chart 3.3). 
3.90.  The legislation covering technical barriers to trade is set out in a number of laws 
(Table 3.10). In addition, official circulars an d ministerial decisions provide guidance on the 
implementation of laws, decrees, and Prime Mi nister's decisions. These include Circular 
No. 21/2007/TT-BKHCN Guiding the Formulation and Application of Standards (as revised by Circular No. 29/2011/TT-BKHCN), and Decisi on No. 22/2007/QD-BKHCN Promulgating the 
Regulation on Organization and Operation of the Technical Board for National Standards both from 
the Minister of Science and Technology. 
                                               
87 WTO documents G/TBT/10.7/N/69, 26 September 2008, and G/TBT/10.7/N/120, 20 August 2012. WT/TPR/S/287 • Viet Nam 
 
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  Chart 3.3 Standards organizational structur e in Ministry of Science and Technology  
MINISTRY OF SCIENCE AND TECHNOLOGY
Directorate for Standards, Metrology and Quality
Department for Goods Quality 
ManagementSMQ MagazineViet Nam - German Technology 
Transfer and Training CenterSME Development Support 
Center 2SME Development Support
Center 1Viet Nam Productivity CenterVie Nam Certification ServicesTraining CenterViet Nam Institute for Standards 
and Quality
Viet Nam Metrology Institute
Quality Assurance and Testing 
Center 3  (HCM City)Administration Department
Standardization Department
Metrology Department
Conformity Assessment 
Department
Planning and Finance 
Department
International Co-operation
Department
Organization and Personnel 
DepartmentInformation Center
Viet Nam WTO/TBT Office
Inspection DepartmentQuality Assurance and Testing 
Center 1  (Hanoi)
Quality Assurance and Testing 
Center 2  (Da Nang)
 
Source: Viet Nam authorities. 
3.91.  Under the Law on Technical Regulations and Standards there are two types of technical 
regulations: national technical regulations (QCVNs); and local technical regulations (QCDPs). In 
principle, local technical regulations (which ar e mandatory) may be prepared and approved by 
local authorities, usually to provide greater details on a national technical regulation in order to meet local conditions.
88 According to the authorities there is only one QCDP in Viet Nam. There are 
also two different types of standards: national  standards (TCVNs); and organization standards 
(TCCSs).   
3.92.  Draft national standards are prepared by technical committees through the Viet Nam 
Standards and Quality Institute (VSQI) in STAMEQ. The drafts are based on proposals from 
government agencies or the private sector. The VSQI is responsible for organizing the 
development of TCVNs, providing secretarial su pport for the technical committees, and planning 
standardization activities. At the end of 2012, there were 116 national standards technical 
committees and 52 sub-committees. Draft TCVNs are published on the VSQI website with 60-day 
comment periods. Each year VSQI publishes a work -programme listing, which is regularly updated. 
The plan for 2013 includes 813 standards being prepared in various technical committees, proposed by different government ministries.
89 
 
                                               
88 USAID (2009), p. 130. 
89 Ministry of Science and Technology Decision No 3501/QD/BKHCN, 21 December 2012 (Vietnamese). 
Viewed at: http://www.vsqi.gov.vn/news.aspx?Cat=29  [March 2013]. WT/TPR/S/287 • Viet Nam 
 
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  Table 3.10 Principal legislation on technical measures90 
Title Reference Note 
Prime Minister's Decision on the 
Implementation of the TBT Agreement No. 444/2005/QD-TTg  
Prime Minister's Decision on Establishment and 
Issuance of Statute of Organization and 
Operation of Vietnam Ne twork of Notification 
Authorities and Enquiry Points on TBT No. 114/2005/QD-TTg  
Prime Minister's Decision  approving Action 
Plan on the Implementation of Agreement on 
Technical Barriers to Trade from 2011-2015 No. 682/QD-TTg   
Prime Minister's Decision approving National 
Programme on the improvement of products 
and goods productivity and quality No. 712/QD-TTg  
Law on Standards and Technical Regulations No. 68/2006/QH11 Main legal basis for standards and technical 
regulations 
Decree Detailing the Implementation of a 
Number of Articles of the Law on Standards 
and Technical Regulations  No. 127/2007/ND-CP  
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  
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 technical 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  
Decree on Labelling of Goods No. 89/2006/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 in 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. 52/2005/QH11 Establishes the principles and basic 
contents of national environmental 
standards 
Law on Construction No. 16/2003/QH11 Requires that constructions activities must 
comply with construction rules and 
standards 
Law on Food Safety No. 55/2010/QH12 Provides for rights and obligations of 
individuals and organizations to ensure 
food safety and concerning labelling 
Decree detailing and guiding the 
implementation of a number of Articles of the 
Law on Food Safety No. 38/2012/ND-CP  
Source: Viet Nam authorities; and FAOLEX. Viewed at: http://faolex.fao.org  [May 2013]. 
3.93.  According to the authorities, at the end of 2012 Viet Nam had 6,800 TCVNs in effect, of 
which 40% were harmonized with international, regional, or foreign standards (up from 25% in 2005).  
3.94.  Organization standards (TCCS) are developed independently by organizations; STAMEQ has 
no direct involvement although it does issue guidelines on how they should be developed. 
                                               
90 In many cases unofficial translations of laws ar e available in English from the Ministry of Justice 
database on legal no rmative documents:  http://moj.gov.vn/v bpq/en/pages/vbpq.aspx  [February 2013]. WT/TPR/S/287 • Viet Nam 
 
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  3.95.  VSQI also provides support for the developm ent of technical regulations which, like TCVNs, 
are developed by drafting committees made up of government agencies and experts. Proposals for 
QCVNs are published on the official websites of the relevant ministries, with opportunities to comment either through membership of the technical committee or through comments to the 
technical committees. The final QCVNs are also publis hed on the official websites of the relevant 
ministries, normally six months before they become  effective. In addition, the Ministry of Science 
and Technology publishes an annual catalogue of new technical regulations. 
3.96.  The Bureau of Accreditation (BOA) of the Ministry of Science and Technology runs the 
Vietnam Laboratory Accreditation Scheme (VILAS), the Viet Nam Certification Accreditation Scheme (VICAS), and the Viet Nam Inspection Scheme (VIAS). At the end of 2012, VILAS had accredited 527 accreditation bodies (one outside Viet Nam); VICAS had accredited 26 certification 
bodies; and VIAS had accredited 20 accreditation bodies. 
3.97.  The Metrology Institute (VMI) under STAMEQ is responsible for establishing and maintaining 
national standards of measurement using the SI system, and calibration of measurement 
instruments; it also represents Viet Nam in international and regional metrology organizations 
(Table 3.9). In addition, the VMI has cooperation agreements with national measurement institutes in Australia, China, Germany, Japan, Korea, New Zealand, and the United States. There 
are ten measurement laboratories in the VMI accredited by the VILAS, each for a different set of 
SI units.  
3.98.  There are four product certification bodies under STAMEQ: 
 the Viet Nam Certification Centre (QUACERT ), which helps enterprises with compliance 
with national and international standards and practices including certification for meeting 
Vietnamese, other national, regional, and international standards; and 
 three Quality Assurance and Testing Centres (QUATEST 1, 2, and 3), which are 
responsible for testing imports and exports for compliance with standards and technical 
regulations  
3.99.  QUACERT is the certification body for compliance with: 
 Vietnamese standards and technical regulations (including VietGAP for good agricultural 
practice); 
 certification of management systems to international standards (ISO 9001, ISO 14001, 
OHSAS 18001, ISO 22000, HACCP, GMP, ISO 27001, ISO/TS 29001);  
 standards in other countries (ASTM, JIS, DIN, GOST, BSI);  
 regional standards (EN, CEN) and International standards (ISO, IEC); and 
 electrical and electronic equipment under ASEAN EE MRA.
91  
3.100.  Under the Law on Products and Goods Quality of 2007, products and goods are divided 
between Group 1, which are "incapable of causin g unsafety", and Group 2, which are "capable of 
causing unsafety" (defined as "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").92 Products in Group 1 are controlled by 
producers on the basis of applicable standards, wh ile those in Group 2 are controlled on the basis 
of relevant technical regulations from the competent state agency as well as by producers on the 
basis of applicable standards. Different ministries are responsible for the control of quality of 
products and goods under their responsibility, and for issuing lists of products and goods that can 
cause "unsafety" and are subject to mandatory inspection (Table 3.11). 
                                               
91 QUACERT online information. Viewed at: http://www.quacert.gov.vn/news/vi/1/1/trung-tam-chung-
nhan-phu-hop---quacert.aspx  [March 2013]. 
92 Law on Products and Goods Quality, A. 3(4). WT/TPR/S/287 • Viet Nam 
 
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  Table 3.11 Goods subject to mandatory insp ection and quality control (domestically 
produced, imported, and for export) 
Ministry of Industry and Trade (Circular No. 08/2012/TT-BCT) 
Pressure equipment 
Lifting equipment for industrial use 
Chemicals 
Industrial explosives 
Oil and gas mining equipment, except for marine exploration and exploitation equipment and facilities 
Ministry of Public Security (Circular No. 14/TT-BCA of 2012) 
Fire prevention and fighting equipment 
Technical equipment 
Ammunitions, weapons 
Support in struments 
Ministry of Information and Commun ications (Circular No. 20/2011/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 De velopment (Circular No. 50/2009/TT-MARD) 
Plants 
Animals 
Fertilizers 
Animal feeds 
Plant protection drugs 
Veterinary drugs 
Bio-products for use in agricult ure, 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 
Military equipment and facilities 
Ammunitions, weapons and prod ucts in service of defence 
Defence works 
Source: Viet Nam authorities; the Law on Products and Goods Quality, and ministerial circulars noted above. 
3.4.2.2  Sanitary and Phytosanitary Measures 
3.101.  Viet Nam undertook to comply with the requirements of the SPS Agreement upon its 
accession to the WTO without recourse to any transitional arrangements.93 The national enquiry 
                                               
93 WTO document WT/ACC/VNM/48, 27 October 2006, paragraph 327. WT/TPR/S/287 • Viet Nam 
 
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  point for SPS matters is the Viet Nam SPS Office in the Ministry of Agriculture and Rural 
Development.94 
3.102.  Viet Nam has made 42 regular notifications (and addenda to two of these) to the SPS 
Committee in the WTO. These notifications cover a wide variety of products and SPS-related 
issues. They also included the Law on Food Safety (No. 55/2010/QH12)95 and a draft Law on Plant 
Protection and Quarantine.96 Several Members have used the SPS Committee on various occasions 
to raise a specific concern with Viet Nam about its ban on imports of offal products as from 
7 July 2010.97 
3.103.  Several government agencies are responsible for SPS-related matters, including the 
Ministry of Agriculture and Rural Development, the Ministry of industry and Technology, the Ministry of Health, and the Ministry of Science and Technology (Chart 3.4). 
Chart 3.4 Sanitary and phytosani tary organizational structure 
Government
Ministry of Science 
and Technology
- Products standards and 
technical regulationsMinistry of Agriculture and
Rural Development
- Quality and safety of agro-forestry-fishery products
- Animal and plant quarantine
- Agro-chemical and veterinary drugs    Ministry of Industry 
and Technology 
- Milk processing
-S o f t  d r i n k s- Beverages- Cigarettes
National Agro-
Forestry-
Fisheries
Quality
Assurance
(NAFIQAD)Ministry of Health
- Food safety standards- Zoonotic diseases
- Processed foods
- Industrial processed foods
Plant 
Protection
Department
(PPD)Department
of Animal 
Health
(DAH)
Central Regional 
Authority (CRA)
South Regional 
Authority (SRA)Pesticides 
Control CenterCenter for
Diagnostics and 
Veterinary 
Hygiene (No.1 
and 2)
NAFIQAD
branches (No.1 to 6)Regional Plant Quarantine offices (No. 1 
to 9)Regional DAH 
offices (No. 1 to 7)Market Control 
DepartmentSTAMEQ Viet Nam Food 
AdministrationExport and 
Import 
Department
Center for Plant
Post-Quarantine
(No 1 and No 11)3 AnimalQuarantine branchesFood Safety Institute (FSI)
Center 2 (Da Nang)
Center 3 (HCMCity)Center 1 (Hanoi)
HCM City Institute for 
Hygiene & 
EpidemiologyNational Institute of Hygiene & 
EpidemiologyNha Trang 
Pasteur Institute
 
Source: Viet Nam authorities. 
3.104.  Under Prime Minister's Decision No. 99/2005/TD-TTg of May 2005, these agencies are 
required to coordinate with the Ministry of Ag riculture and Rural Development and the SPS Office 
on notifications, which is the notification authority and enquiry point. 
3.105.  Viet Nam is a member of Codex Alimentarius and the World Organisation for Animal Health 
(OIE), and a contracting party to the International Plant Protection Convention (IPPC). 
3.106.  The basic law for SPS-related matters is set out in the ordinances for plant protection and 
quarantine, and animal health, and laws on food safety and environmental protection. Under each 
law there are decrees and decisions setting out more  details for implementing the law, and official 
                                               
94 WTO document G/SPS/ENQ/26, 11 March 2011. 
95 WTO document G/SPS/N/VNM/8, 23 September 2009. 
96 WTO document G/SPS/N/VNM/41, 16 January 2013. 
97 WTO documents G/SPS/R/63, 12 September 2011, paras 60-63; G/SPS/R/64, 17 January 2013, 
paras 57-60; G/SPS/R/66, 23 May 2012, paras 39-41; G/SPS/R/67, 11 September 2012, paras 31-35 and Corr.1, 18 September 2012, para 35; and G/SPS/R/69, paras 33-35. WT/TPR/S/287 • Viet Nam 
 
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  circulars provide further clarification on some points of the law (Table 3.12). In addition, technical 
regulations (QCVN) and standards (TCVN) may apply (see above).  
Table 3.12 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 
Minister of Agriculture and Rural 
Development's Decision 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 
Plant Protection   
Ordinance on Plant Protection 
and Quarantine No. 36/2001/P L-UBTVQH10   
Decree on plant quarantine No. 02/2007/ND-CP as amended by 
Decree No. 98/2011/ND-CP Provides for the quarantine of domestic plants and 
plants that are imported, exported or in transit in Viet Nam. It also sets out treatment for destroying pests and exotic harmful organisms 
Decision on HS code of objects 
target of plant quarantine No.35/2007/QD-BNN   HS codes of objects for plant quarantine of 
Viet Nam 
Decision regulation on procedures of plant quarantine certificate No.48/2007/QD-BNN
 Plant quarantine certification for imports 
Circular import risk assessment  No. 39/2012/T T-BNNPTN T List of objects requiring risk assessment before 
being imported  
Circular on objects of plant 
quarantine No. 40/2012/T T-BNNPTN T List of objects for plant quarantine 
Circular regulation on control of 
importing plant and plant 
products No.13/2011/T T-BNNPTN T Guidelines for the control of imported plants and 
plant products  
Circular on list of criteria and MRLs in foods derived from plants and plant products No. 68/2010 /T T- BNNPTN T Criteria, including minimum residue levels for 
imported foods and domestic products derived 
from plants and plant products 
Animal Health 
Animal Health Ordinance No. 18/2004/P L-UBTVQH  
  
Decree detailing a number of 
articles of the Animal Health 
Ordinance No. 33/2005/ND-CP as amended by 
Decree No. 119/2008/ND-CP and 
Decree No. 98/2011/ND-CP Quarantine of terrestrial animals and animal 
products 
Decree on Administrative Infringement in Veterinary Service No. 129/2005/ND-CP 
  
Decision on animal quarantine  No. 45/2005/QD-BNN  List of animals and animal products subject to 
animal quarantine 
Decision on procedures for 
animal quarantine No. 15/2006/QD-BNN  Procedures for animal quarantine and animal hygiene 
Circular guiding customs 
clearance of imports and 
exports subject to quarantine No. 01/2012/T T-BTC Sets out procedures for customs clearance and 
responsibilities of owners of goods and customs 
departments 
Circular on quarantine of aquatic animals and aquatic products No. 32/2012/T
T-BNNPTNT, and No. 
06/2010/TT-BNNPTNT as amended by No. 43/2010/TT-BNNPTNT Aquatic animals and aquatic animal products 
subject to quarantine and procedures for quarantine 
Decision on animal 
transportation No. 49/2006/QD-BNN  Guidelines for tracking animal transportation for 
imports, exports, and domestic transport. 
Regulation on documentation  No. 86/2005/QD-BNN  Regulation on documentation for animal quarantine and animal hygiene 
Circular regulation on control of 
importing animal and animal 
products No. 25/2010/T T-BNNPTN T Guidelines for the control of imported animals and 
animal products 
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 
Decree on management of 
livestock feed No. 08/2010/ND-CP  Provides for conditions and responsibilities of feed 
producers, processors, and traders. Only imports 
of feed on list of permitted feed may be imported, 
unless with permission of Minister of Agriculture 
and Rural Development 
Food Safety 
Law on Food Safety No. 55/2010/QH12   
Decree detailing a number of articles of the Law on Food 
Safety No. 38/2012/ND-CP
 Sets out rights and obligations associated with 
food safety in production, trade, transport, testing, 
risk analysis, and state management of food safety WT/TPR/S/287 • Viet Nam 
 
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  Title Reference Note  
Decree on the organizational 
system of management, 
inspection and assessment of 
food safety and hygiene No. 79/2008/ND-CP  Establishes the Ministry of Health as the state 
agency primarily responsible for managing food 
safety of domestic and imported food products, 
and responsibilities of other agencies 
Decree on maximum level of 
residue of biological and 
chemical substances allowed in 
food No. 46/2007/TD-BY T  
Decision on food additives No. 3742/2001/QD-BY T   List of permitted food additives 
Circular on management of  
food additives No. 27/2012/T T-BYT Management of food additives 
Circular on radioactive 
contamination limit levels in 
food No. 17/2011/T T-BYT Regulates radioactive contamination in foodstuffs  
Circular on micro-biological 
contamination in food No. 05/2012/T T-BVT National technical standards for micro-biological 
contamination of food 
Circular guiding food hygiene 
and safety control of imported 
foodstuffs of animal origin No. 25/2010/ TT-BNNPTN T Guidelines for food hygiene and safety control for 
imported foodstuffs of animal origin under the 
management of the Ministry of Agriculture and 
Rural Development 
Environmental protection 
Law on Environment Protection  No. 52/2005/QH11   
Decree on biosafety for 
genetically modified organisms, genetic specimens and products 
of genetically modified 
organisms No. 69/2010/ND-CP
 Provides for: risk assessment of GMOs; the basis 
for biosafety certificates, eligibility for use as food or animal feed; conditions for production, trade, 
import, export, transportation, and storage; and 
accreditation of laboratories 
Decree detailing and guiding the 
implementation of a number of 
articles of the Law on 
Environmental Protection No. 80/2006/ND-CP as amended by 
Decree No. 21/2008/ND-CP, and 
Decree No. 29/2011/ND-CP Implements several articles, including strategic 
environmental assessment; environmental impact 
assessment 
Source: Viet Nam authorities. 
3.107.  In 2007, it was reported that: 
 animal health standards generally observed the standards set out in the OIE Terrestrial 
Animal Health Code and Aquatic Animal Health Code; 
 about 60% of Codex standards had been adopted but the main problem with adopting 
some standards on maximum residue levels  for pesticides, veterinary drugs, and 
contaminants, was the large number of small farms which make adoption, implementation, and enforcement of higher  international standards difficult; and 
 the legislation on plant protection had been amended to conform to two of the 
27 international standards for phytosanitary measures (on pest-risk analysis) adopted by the IPPC at that time.
98 The authorities stated that si nce 2007 the legislation on plant 
protection has been amended and, as of May 2013, it conforms to 15 of the 
36 international standards for phytosanitary measures adopted by the IPPC. 
3.108.  Under Prime Minister's Decision No. 147/2008/QD-TTg, to meet its obligations under the 
SPS Agreement, Viet Nam is to harmonize its food hygiene and safety and sanitary and 
Phytosanitary standards with those of Codex Alimentarius, the OIE, and the IPPC. This Decision 
also sets out objectives for risk assessment, control measures, and institutional capacity, and states that the same standard should be used for exports and domestic consumption. 
3.109.  A national food safety strategy for 2011-20 was approved in Prime Minister's decision 
No. 20/QD-TTg of January 2012. The strategy sets  a general objective of implementing master 
plans on food safety from production to consumpt ion by 2015, and controlling food safety over the 
entire food supply chain by 2020. It also sets out several specific objectives including improving 
general knowledge of food safety and food safety practices, building capacity for the food safety 
management system, improving food safety assurance by producers, processors, and traders through certification, and effectively preventing cases of acute food poisoning. To meet these 
objectives, the strategy includes a comprehensiv e list of actions to be undertaken by different 
state agencies, such as improving institutional support  for food safety in the regional offices of the 
Ministry of Health and the Ministry of Agricult ure and Rural Development, improving and better 
                                               
98 Kennedy (2007), p. 19. WT/TPR/S/287 • Viet Nam 
 
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  coordinating food safety examinations, improving inspection and control, and elaborating and 
enforcing technical regulations and requirements. 
3.110.  Importers of food and agricultural products  have to provide the Viet Nam authorities with a 
number of supporting documents (Table 3.13). Depending on the product, these may include a 
certificate of free sale (CFS) (Prime Minister's Decision No. 10/2010/QD/TTg), from the competent 
authorities of the exporting country, stating that the product is produced and freely sold in the country of origin. The list of agricultural goods to which this requirement applies is part of Circular 
No. 63/2010/TT-BNNPTNT from the Ministry of Agri culture and Rural Development. The products 
affected are mostly non-food agriculture and fishery products but all products containing genetically modified materials, products that were irradiated, and products that were produced by new technologies require a CFS when imported to Viet Nam. 
Table 3.13 Certificates required for impo rting food and agricultural products 
Product Documents Basis  Government 
Agency 
All processed food items Certificate of GMP, HACCP, or equivalent  Food safety and hygiene MOH/VFA  
 Certificate of analysis (test results)  Food quality and standards MOH/VFA  
Special foods/functional foods  Certificate of GMP or HACCP or 
equivalent Food safety and hygiene MOH/VFA  
 Certificate of analysis  Food quality and standards MOH/VFA  
 Results of clinical test  Food supplemental value 
functioned to improve human health MOH/VFA
 
Special foods/nutritious foods 
for infants Certificate of GMP or HACCP, or 
equivalent Food safety and hygiene MOH/VFA  
 Certificate of analysis (test results)  Food quality and standards MOH/VFA  
 Certificate of free sale (health 
certificate) Food safety, quality and 
standards MOH/VFA  
Special foods/GM foods and 
irradiated foods Certificate of GMP or HACCP or 
equivalent Food safety and hygiene MOH/VFA  
 Certificate of analysis (test results)  Food quality and standards MOH/VFA  
 Certificate of free sale  Food safety and quality MARD 
Food ingredients/additives Certificate of GMP or HACCP, or 
equivalent Food safety and hygiene MOH/VFA  
 Certificate of free sale   Food safety and hygiene MOH/VFA  
 Certificate of analysis (test results)  Food quality and standards MOH/VFA  
Feed ingredients Certificate of HACCP, of GMP,  or 
equivalent Product quality  MARD/DLP  
 Certificate of free sale  Product quality and safety MARD 
 Test results 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/ PPD  
Forest products Certificate of free sale  Product Quality Standards MARD 
Processed plant products  Export certificate  Plant Health Protection  MARD/PPD  
Animals and animal products, 
except animal genetics, meat and poultry products  Health certificate with additional 
requirements depending on the product and place or origin Animal health protection and 
human health protection  MARD/DAH
 
Dairy products Health certificate  
Certificate of HACCP, of GMP, or 
equivalent  Food safety and hygiene  MARD/DAH 
MOH/VFA  
Animal genetics Health certificate  Animal Health Protection and 
human health  MARD/DAH  
 Certificate of free sale  Product quality and standards  MARD/DLP 
MARD/DAH 
MOH/VFA  
 Certificate of analysis (test results)  Food quality, safety, and 
standards  MOH/VFA  
 Health certificate  Animal Health Protection  MARD/DAH  
 Certificate of inspection of export 
animals Animal Health Protection  MARD/DAH  
 Animal pedigree document  Genetic Quality  MARD/DLP  
Meat and poultry products Export certificate  Product quality, safety and 
hygiene  MARD/DAH  
Swine offal products (for 
heart, liver and kidney only) Export certificate  Product quality, safety and 
hygiene  MARD/DAH  WT/TPR/S/287 • Viet Nam 
 
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  Product Documents Basis  Government 
Agency 
Aquatic animal products 
except live aquatic animals Health certificate (export certificate)  Food safety and hygiene  MARD/NAFIQAD  
Live aquatic animals HACCP certificate or equal document  Aqua Health Protection  MARD/DAH  
 Health certificate    
Note: MoH - Ministry of Health, VFA - Viet Nam Food Administration, MARD - Mini stry of Agriculture and 
Rural Development, DLP - Departme nt of Livestock Production, PPD - Plant Protection Department, 
DAH - Department of Animal Health, NAFIQAD - Nati onal Agro Forestry Fish eries Quality Assurance 
Source: U.S. Department of Agriculture, Foreign Agricultural Service (2011), Vietnam Food and Agricultural 
Import Regulations and Standards - Certification, 2011 FAIRS Export Certificate Report, GAIN Report 
Number VM1052, 18 July. 
 
3.4.2.2.1  Quarantine 
3.111.  Imports of plants, plant products, aq uatic animals and plants, animals and animal 
products, and processed food products may be inspected; this may include examination of documentation, and visual inspection before tr ansportation to quarantine where they may be 
sampled and the samples taken for laboratory testing.  
3.112.  Under Decree No. 33/2005/ND-CP, as  amended by Decree No. 119/2008/ND-CP and 
Decree No. 98/2011/ND-CP, anyone importing or exporting animals or animal products must 
inform the DAH or NAFIQAD and present the necessary documents (Table 3.13). For products on 
the quarantine list and animals or products thereof alien to Viet Nam, DAH or NAFIQAD should 
reply within five working days informing the owner of the goods of the quarantine agency 
responsible for conducting quarantine. The quarantine period for animals and animal products, 
other than breeding animals, may be up to ten days, or longer if the authorities have sufficient 
reason. For products not on the list, importers and exporters must make a quarantine declaration to the DAH or NAFIQAD and, within one working day, the quarantine agency should notify the 
owner of the time and place for quarantine, and other details for import or export. 
3.113.  To import plants or plant products, the importer must make a declaration to the plant 
quarantine office closest to the point of import at least 24 hours before the import is made. Under the Department of Plant Protection, there are 9 re gional plant quarantine sub-departments, over 
60 plant quarantine stations, located at various entry points around the country, 2 centres for 
post-entry quarantine, and a Plant Quarantine Diagnoses Centre.
99 
3.114.  According to Decree No. 02/2007/ND-CP, an import consignment of plants: must be 
accompanied by a phytosantiary certificate from the competent authority of the exporting country 
(Table 3.13); must be free of regulated pests; must  have an import plant quarantine permit from 
the Department of Plant Protection in the Ministry  of Agriculture and Rural Development for objects 
subject to pest-risk analysis; and wood packagin g must undergo phytosanitary treatment. Objects 
subject to pest-risk analysis include: living plants; fresh fruits; weeds and weed seeds; beneficial 
organisms, biological agents or living organisms harmful to plant resources; untreated timber; and objects with a high risk of carrying a regulated pest (Circular No. 39/2012/TT-BNNPTNT). Circular 
No. 40/2012/TT-BNNPTNT contains the list of regulated pests. 
3.115.  Aquatic animals and aquatic animal products  subject to quarantine are set out in Circular 
No. 32/2012/TT-BNNPTNT, and the procedures for dealing with them are set out in Circular 
No. 06/2010/TT-BNNPTNT as amended by Circular No. 43/2010/TT-BNNPTNT. Under these 
procedures importers must register for import qu arantine with the Department of Animal Health, 
and imports may be kept under quarantine for up to ten days, or longer if the authorities have sufficient reason. Among the documents required is a health certificate from the competent 
authorities of the exporting country. Other documents that may be required depend on several 
factors, including: whether transportation to a place of quarantine isolation is needed, whether the consignment is a temporary import for re-export, and whether the items are for human 
consumption. There are 14 laboratories for sampling and testing – 8 under the DAH and 6 under 
NAFIQAD. 
                                               
99 Asia & Pacific Plant Protection Commis sion online information. Viewed at: 
http://www.apppc.org/index.php?id=1110800&L=0  [March 2013]; and Plant Protection Department (Bui Thi 
Tuyet Nhung - Deputy Director) (2012). WT/TPR/S/287 • Viet Nam 
 
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  3.116.  Imported and domestically produced foods, other than fresh fruits and meat, require a 
Food Standards Registration Certificate from the Vietnam Food Administration in the Ministry of Health, valid for three years. In addition, imports of a broad range of agricultural products require 
an automatic import licence from the Ministry of Industry and Trade for each import consignment 
(Circular No. 27/2008/TD-BCT).
100 An importer must apply to the Ministry for the licence, and 
provide a business registration certificate, import contract, commercial invoice, payment document (such as a letter of credit), and a bill of lading. 
3.4.3  Trade-related investment measures  
3.117.  Prior to its WTO accession, for many years Viet Nam required foreign enterprises 
established in Viet Nam to be "self balanced" in their needs for foreign exchange. This measure was abolished in 2000 as the Law on Foreign Investment was amended. However, Decision 
No. 718/2001/QD-BKH of the Minister of Planning and Investment linked investment incentives to 
local content and (80%) export-performance requir ements for certain industrial products, e.g. 
automobiles, motorcycles, construction steel, NPK fertilizer, PVC plastics. The export-ratio 
requirement was eliminated in 2003, and import-d uty preferences linked to local content were 
removed for motorcycle assembly plants in the same year. For mechanical/electric/electronic industries, the local-content requirements were  terminated with effect from 1 October 2006
101, 
and the 2005 Investment Law and its implementing Decree did not link the granting of investment 
licences or the receipt of investment incentives to the acceptance of conditions inconsistent with the WTO Agreement on Trade-Related Investment Measures (TRIMs).  
3.118.  Viet Nam agreed to comply fully with the WTO TRIMs Agreement from the date of its 
accession, although for existing beneficiaries the conditioned benefits would be phased out over 
five years (i.e. by 2012). As a WTO Member, Viet Nam has not notified any new TRIMs or any Vietnamese publications in which TRIMs may be found.
102  
3.4.4  Free zones and special economic areas  
3.119.  Viet Nam has 289 industrial and export-processing zones (as at May 2013), of which 
180 are in operation and 109 are undergoing land clearance or are under construction. The 
289 zones cover a total surface of 80,700 hectares, of which industrial land accounts for 
52,000 hectares. Under Viet Nam's five-year land-use plan (2011-15), and land-use planning until 2020, the area reserved for the development of industrial zones is set to increase to 130,000 hectares by 2015, and to 200,000 hectares by 2020. Viet Nam is also seeking to enhance 
the quality of investments in the industrial zones, giving priority to high-technology, 
energy-efficient, and environmentally friendly projects.  
3.120.  Industrial zones are established by Governme nt Decision or Decision of the Prime Minister. 
Adopted in March 2008, Government Decree No. 29/2008/ND-CP addresses the development of 
legal documents on industrial zones, export-proce ssing zones, and economic zones, and provides a 
legal framework for the local authorities and businesses engaged in the zones. According to the 
authorities, the Decision also paves the way for the formulation and effective implementation of a 
one-stop shop management model in the zones.  
3.121.  Most of the present zones are based in the key economic regions, i.e. in the South (124), 
North (52), and Central Viet Nam (23). According to Vietnamese data, the proportion of industrial 
output generated in the industrial zones and export-processing zones rose from 8% in 1996 to 
32% in 2010. By December 2012, the zones had attracted 5,074 domestic investment projects 
                                               
100 Including all meat and edible meat offal; live fish  (except for breeding); fresh, frozen, chilled, dried, 
salted or in brine, smoked, minced, and whole fish; crab; molluscs; processed me at (sausage); meat, fish, 
crustacean, or mollusc extract or juices; caviar or ca viar substitutes; confectionary items including sugar; 
chocolate or items including cocoa; preparatory items fo r pastries; pastas; tapioca an d its derivatives; cereal 
goods (corn flakes); breads, pastries, cakes, and biscui ts; extracts, essences, and concentrates of coffee or 
tea; sauces and seasonings; soups and broths; ice crea m and other edible ice; bo ttled water; beer; wine; 
vermouth; all fermented beverages;  all spirits; and all vinegars. 
101 Decision No. 43/2006/QD-BTC, 29 August 2006.  
102 WTO document G/TRIMS/N/2/Rev.20, 3 September 2010.  WT/TPR/S/287 • Viet Nam 
 
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  and 4,509 foreign direct investment projects.103 Foreigners have largely invested in light industry, 
e.g. food processing and textiles. The zones provide employment for some 2.1 million workers. 
3.122.  Viet Nam invites investors, domestic and foreign alike, to undertake investment in the 
infrastructure and operational development of  the zones. The Government supports the 
development of infrastructure to attract investment in industrial production in "underprivileged" 
areas of Viet Nam. Tax incentives granted initially to enterprises in the industrial zones and export-processing zones largely expired during 2001- 05. The facilitation of investment procedures, 
rental of land and premises, labour training, and the supply of water, electricity, and other utilities 
constitute the main advantages currently provided.  
3.123.  Imported materials used in production ar e subject to import duty, but the duty may be 
refunded for exported goods in proportion to th e ratio of such materials used in the exported 
products. Enterprises in the export-processing zone s are exempt from import and export duties for 
goods imported from, or exported to, foreign countries.
104 Goods produced in the zones are 
subject to normal customs formalities, including tariff and taxes, if they enter the domestic 
market.  
3.124.  Although Viet Nam continues to inaugurate  industrial parks and economic zones, and more 
are set to be created, the existing infrastructure  is frequently under-used. The average occupancy 
rate in operating industrial parks fell from 74% in 2007 to 65% in 2010.105 Nearly 50 industrial 
parks have no tenants. The performance of the industrial parks is also highly uneven across regions. In 2010, some 84% of the export turnov er from industrial parks was generated in under 
50% of the parks.
106  
3.4.5  Transit 
3.125.  According to Article 242 of the Commercial Law No. 36/2005/QH11, all types of goods may 
be carried in transit through the territory of Viet Nam except arms and ammunition, explosive 
materials, or other highly dangerous commodities , unless permitted by the Prime Minister. Goods 
banned (from production or business) in Viet Nam, or subject to import or export prohibition may be allowed in transit upon approval of the Minist er of Industry and Trade. The carriers of transit 
cargo should be Vietnamese or from countries that have signed bilateral transit agreements with 
Viet Nam, i.e. China, Lao PDR and Cambodia. Allowed transit routes are specified by the Minister of Transport (Article 243).  
3.126.  Transit goods are subject to customs clea rance at the ports of entry and exit. The goods 
(or means of transport) are subject to a customs processing fee of ₫200,000 per declaration 
form.
107 The fee is collected upon entry into Viet Nam's customs territory, but not at the exit point. 
According to Article 252 of the Commercial Law,  those who hire transit services must pay 
remuneration and cover "other reasonable expenses" of the transit service providers.  
3.4.6  Government procurement 3.127.  Government procurement in Viet Nam is regulated in accordance with the Law on 
Tendering No. 61/2005/QH11 of 29 November 2005; Law No. 38/2009/QH12, 
Decree No. 85/2009/ND-CP, Decree No. 68/2012/ND-C P, and other guiding documents. The Law 
on Tendering defines its scope to include (i) development investment projects with 30% of the capital originating from the state budget; (ii) projects funded by the state budget for the 
procurement of assets to maintain regular operations of state agencies, political organizations, 
socio-political organizations, socio-political-professional organizations, social organizations, 
                                               
103 The domestic investment projects involved the commitment of capital totalling ₫532 trillion 
(US$17.3 billion), half of which had been disbursed. For FDI, the registered capital amounted to US$60.2 billion, of which US$32.3 billion had been disbursed.  
104 In accordance with Decree No. 87/2010/ND-CP of 1 October 2010, enterprises located in the 
industrial zones are not allowed to im port duty-free equipment, machinery,  or specialized means of transport 
for the implementation of their projects. 
105 According to the VDR (2012), international expe rience suggests a 75% occupancy rate may be 
needed for an industrial park to be viable in the long run.  
106 These parks are located in Ha Noi, Ho Ch i Minh City, and six surrounding provinces. 
107 Ministry of Finance Circular No. 172/2010/TT-BTC of 2 November 2010.  WT/TPR/S/287 • Viet Nam 
 
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  socio-professional organizations, and units of the people's armed forces; and (iii) state budget-
funded procurement of assets to service equipmen t, chains of production, works or workshops of 
state enterprises. For official development assist ance projects, bidding procedures must be based 
on treaties to which the Socialist Republic of Viet Nam is a contracting party, or international 
agreements that it has signed.  
3.128.  The Law prescribes open tendering as the principal form of tendering. Limited bidding may 
apply if requested by foreign donors or capital sources (Article 19, paragraph 1), when complex or 
particular technical requirements are involved, or for research or trials for which only certain 
contractors may satisfy the requirements. Contractors are appointed only in circumstances laid down in Article 40 of Decree No. 85/2009/ND-CP and according to the procedure stipulated in its Article 41, on Article 1, paragraph 1 of Decree No. 68/2012/ND-CP, and in Decision 
No. 50/2012/QD-TTg.
108 Several ministries and agencies apply thresholds for the appointment of 
contractors that are lower than stipulated in Decree No. 85/2009/ND-CP. According to the authorities, this practice does not violate Viet Nam's procurement legislation, but increases 
competition in bidding.
109  
3.129.  In international tendering, the Law on Tend ering (Article 14) stipulates that preferential 
treatment shall be accorded to (i) contractors established in Viet Nam under the Enterprise Law 
and the Investment Law, (ii) partnership contractors that include partners defined in Article 14, 
clause 1 that undertake work worth more than 50% of the contract; and (iii) contractors participating in bids when the domestic production costs represent 30% or more of the procurement. Decree No. 85/2009/ND-CP (Article 4) outlines the specific preferences, which are 
aimed to encourage the use of local labour and to enhance the capability of domestic contractors 
to compete for international tenders.  
3.130.  Under Prime Minister's Directive No. 4 94/2010/CT-TTg of 20 April 2010, Viet Nam should 
only use international bidding if domestic goods, materials, and equipment do not meet the 
specifications of the tender package, or cannot be provided locally. In May 2010, the Ministry of Industry and Trade issued a list of machinery, equipment, and materials that can be produced 
domestically.
110 The procurement of such imported goods is thus discouraged in projects involving 
the use of state funds, and Ministries and People's Committees are to instruct tendering bodies under their authority to apply this list in the evaluation of bids.  
3.131.  The Ministry of Planning and Investment and other ministries have issued various legal 
documents to guide the preparation of bidding do cuments, appraisal reports, the evaluation of 
bids, and other aspects of government procurement.
111 The Ministry of Planning and Investment 
has established a public procurement website ( http://muasamcong.mpi.gov.vn/ ). Announcements 
(procurement plans, notifications, results, etc.) are frequently made in the Viet Nam Public 
Procurement Review , and published online for the benefit of existing and prospective bidders.112 In 
addition, information is published in Vietnamese newspapers such as Nhan Dan and Lao Dong, as 
well as the English language Vietnam News and Vietnam Investment Review.  
3.132.  Although Viet Nam made no formal commitment to negotiate accession to the plurilateral 
WTO Agreement on Government Procurement (GPA) as it joined the WTO, it applied for, and was 
                                               
108 Decree No. 85/2009/ND-CP (Article 40, paragraph 1b) states that if the appointment of contractors is 
"unnecessary", bidding must be organized "under regulations". 
109 The U.S. Commercial Service has noted that, despite some recent improvements, the government 
procurement process could generally be characterized as multi-layer decision making, often lacking in transparency and efficiency (U.S. Commercial Service, 2011). 
110 Decision No. 2840/2010/QD-BCT of 28 May 2010.  
111 Circulars Nos. 01/2010/TT-BKH of 6 January 2010 (preparation of bidding documents for the 
procurement of works); 02/2010/TT-BKH of 19 January 2010 (bidding documents for the procurement of works – small contracts); 03/2010/TT-BKH of 27 January 2010 (prequalification documents, procurement of works); 04/2010/TT-BKH of 1 February 2010 (documents for direct appointment of works); 05/2010/TT-BKH of 10 February 2010 (documents for the procurement of goods); 06/2010/TT-BKH of 9 March 2010 (selection 
of consultants); 08/2010/TT-BKH of 21 April 2010 (appraisal of open or limited tenders); and 09/2010/TT-BKH of 21 April 2010 (evaluation, procurement of goods or  works). In addition, Circular No. 63/2007/TT-BTC of 
15 June 2007 guides the procurement of assets to mainta in regular operations of state agencies, as amended 
and supplemented by Circular No. 68/2012/TT-BTC of 26 April 2012.  
112 See http://www.thongtindauthau.com.vn  and http://muasamcong.mpi.gov.vn . WT/TPR/S/287 • Viet Nam 
 
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  granted, observer status to the GPA by the WTO Committee on Government Procurement on 
5 December 2012.  
3.4.7  State trading, state-owned enterp rises, and privatization/equitization 
3.133.  As part of the move from a centrally planned economy towards market-oriented 
development policies113, Viet Nam began the process of reform of state-owned enterprises (SOEs) 
in the late 1980s. Between 1989 and 1992, the number of SOEs was reduced from around 12,000 to 6,000, through mergers and closures of inefficient or loss-making enterprises. Decision 
No. 176/HNBT promulgated in 1992, aimed at more efficient management of the State's economic 
resources. The policy of mergers and dissolution s was continued, and some 720,000 workers were 
paid to leave the state sector. Viet Nam also began a programme of "equitization", i.e. the transformation of ownership in wholly state-owned enterprises and thus determining which 
enterprises would (i) remain 100% state owned, (i.e. no equitization), (ii) be majority state-
owned, or (iii) have a minority state shareholding or no state ownership at all. With the state capital turned into shares, SOEs could equitize by issuing new shares to attract additional capital 
from outside sources, sell a part of their existing sh ares, equitize only a part of a company, or sell 
the entire state capital and turn the SOE into a joint-stock company. Therefore, equitization as such does not necessarily mean full-scale privatization, and diversity of ownership has been 
foreseen, including stakes held by the State and by the employees. Equitized enterprises are 
subject to the Enterprise Law (No. 60/2005/QH-11).  
3.134.  The Ministry of Finance stipulated equitization procedures through Circular 
No. 126/2004/TT-BTC of 24 December 2004, i.e. the preparation of the equitization plan for an 
enterprise, setting up a steering committee for its equitization, and the sale of shares. Employees 
and "strategic" domestic investors could purchase shares at a discount in accordance with Decree No. 187/2004/ND-CP of 16 November 2004. Equitization is currently governed by Decree 
No. 59/2011/ND-CP of 17 July 2011. The Decree stipulates that employees in enterprises 
undergoing equitization are entitled to purchase shares at a discount.  
3.135.  After the initial equitization, the State has occasionally continued to divest its assets by 
selling part or all of its remaining shareholding to the public or to a strategic investor. A sovereign 
wealth fund, the State Capital Investment Co rporation (SCIC), was set up in 2005 under the 
mandate of the Prime Minister to carry out divestments.
114 SCIC began its operations in 
August 2006. At the end of 2012, SCIC had some 400 enterprises in its portfolio.  
3.136.  In 2000, Viet Nam had just over 5,700 SOEs; 2,000-2,100 owned by the central 
government and nearly 3,700 owned by local governments. According to data from the authorities, the number of wholly state-owned enterprises fell from 5,655 in 2001 to 1,309 at the end of 
2011.
115 However, the Government continues to hold a controlling stake, i.e. more than 51% of 
the charter capital, in an additional 2,000 enterprises. According to Prime Minister's Decision No. 14/2011/QD-TTg of 4 March 2011, the Government's plan for 2011-15 is to retain 100% 
ownership in 692 enterprises; equitize 573 enterprises, but retain controlling interests in nearly 
400 of them; and to liquidate 13 enterprises.
116 The policy of divestment of stakes the State no 
longer views as necessary to hold remains in place, but no specific target has been set for 
divestments. 
3.137.  Businesses that will remain 100% state-ow ned include enterprises considered essential for 
national security and the maintenance of public orde r, implementation of poverty eradication, or to 
                                               
113 Viet Nam's laws do not recognize private owners hip of land, forests, an d water resources, but 
sustainable land-use rights, including the transfer of su ch rights among the users, have been recognized by 
Viet Nam since 1993.  
114 Prime Minister's Decision No. 151/2005/QD-TTg of 20 June 2005.  
115 At first, equitization, divestme nt, mergers, and liquidation reduced the number of SOEs steadily. The 
reduction has been less pronounced since 2008: 290 SOEs underwent transformation during 2008-11. At the same time, new SOEs may be formed. According to a report prepared by the SOE Transformation and 
Development Committee, 128 wholly state-owned enterp rises were established over ten years, including 
former revenue-earning administrative  units or dependent accounting unit s. Of these enterprises, 72 are 
enterprises managed centrally or by th e local authorities (mainly public utilities), and 56 are subsidiaries of 
state-owned groups, corporat ions, and enterprises.  
116 Other types of transformation, e.g. transformation into a limited liability company, are foreseen for 
the remaining 31 enterprises.  WT/TPR/S/287 • Viet Nam 
 
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  guarantee the supply of goods and services that wo uld not be viable for private enterprises. The 
Government also intends to maintain majority ownership in large and "sensitive" sectors of the economy, e.g. in energy, telecommunications, avia tion, and banking. In order to foster state-led 
business development, Viet Nam began to establish pilot state economic groups (SEGs), i.e. loose 
alliances of SOEs with similar business interests, in 2005. SEGs established to date include 
Vietnam Post and Telecommunications, Vietnam National Coal-Mineral Industries Group (Vinacomin), and Vietnam National Textile and Garment Group (VINATEX) (all in 2005); 
PetroVietnam, Vietnam Electricity, Vietnam Shi pbuilding Industry Group (Vinashin), and Vietnam 
Rubber Group (2006); Baoviet (2007); Vietnam National Chemical Group (VINACHEM), Vietnam Industrial Construction Group (VNIC) (2009); and Vietnam Housing and Urban Development (HUD) (2010), the Viettel Group, and Petrolimex.
117 More detailed information on some of these 
groups can be found in Table 3.14. Information on some SOEs operating in the agriculture sector 
is provided in section 4.2.3.  
3.138.  Equitization has also been carried out in the banking sector. At present, only 
one commercial bank remains wholly state-owned (the Viet Nam Bank for Agriculture and Rural 
Development (Agribank)), and four banks have state ownership exceeding 75% (the Bank for 
Investment and Development of Viet Nam (BIDV), the Mekong Housing Bank, Vietinbank, and Vietcombank). The State has a controlling interest in one joint-stock bank (Bao Viet Bank) and 
direct ownership in three others. Compared with the banking sector overall, the share of direct 
state ownership has declined as have the market shares of the principal state-owned banks. However, by encouraging SOEs and the five stat e-owned commercial banks to subscribe to the 
charter capital of joint-stock banks as these were being equitized, state ownership in some form 
was being extended to 22 joint-stock banks in total in 2010. The total charter capital invested in 
these banks by the State directly, by state-owned commercial banks, and by SOEs was estimated at ₫15 trillion in 2010, up from ₫1 trillion in 2005.
118 Although the correlation is not perfect, 
joint-stock banks' loan exposures to SOEs tend to increase with the degree of state ownership.119 
3.139.  State-owned enterprises currently account for approximately 38% of Viet Nam's GDP, only 
slightly less than in 2004 or 2005.120 According to an enterprise survey conducted by the General 
Statistics Office in 2009 (and World Bank estimates), the SOEs accounted for most or nearly all of 
the domestic production of key goods and services such as fertilizer (99%), coal (97%), gas and electricity (94%), telecommunications (91%), wa ter (90%), and insurance (88%). However, the 
extent of continued state involvement in the economy is also reflected in light industries such as 
beer (41%), refined sugar (37%), and textiles (21%).  
Table 3.14 Selected large SOEs 
Name of group Main business Financial data Group structure Parent 
company 
charter 
capital 
(₫ 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  2011 total 
revenue: ₫346.4 trillion;  
pre-tax profit: ₫53.8 trillion  Parent company and 
22 corporations and affiliate companies including: 3 wholly owned corporations; 13 joint-stock corporations (over 50% ownership); 4 wholly owned affiliate companies; and 2 joint-stock companies (over 50% 
ownership) 177.628 
Viet Nam National 
Coal-Mineral 
Industries Holding 
Corporation Limited 
(Vinacomin)  - Coal industry 
- Mineral and industrial 
explosive materials industry 
- power industry 
- mechanical industry  2012 consolidated 
revenue: 
₫79 billion Parent company and 
23 wholly owned affiliate 
companies; 46 joint-stock 
companies; and 
7 non-business units  14,794 
                                               
117 Decision No. 1428/QD-TTg of 2 October 2012 ended the pilot operation of VNIC and HUD.  
118 VDR (2012), figure 2.5. 
119 VDR (2012), figure 2.8. Nevertheless, five joint stock banks with 20%-40% of their charter capital 
owned by state institutions have only marginal loan exposure to the SOEs.  
120 Adding subsidiaries of SOEs and private enterprise s controlled by top government officials, the State 
sector may account for as much  as 70% of Viet Nam's GDP ( France 24 , 30 January 2013. Viewed at: 
http://www.france24.com/en/20130130-vietnams-state-sector-cancer-economy ).  WT/TPR/S/287 • Viet Nam 
 
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  Name of group Main business Financial data Group structure Parent 
company 
charter 
capital 
(₫ billion) 
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 projects 
- Management, operation, 
repair, maintenance, overhaul and upgrade of equipment, machinery, and automated systems 2012 estimated 
revenue: ₫142 trillion  Parent company (Viet Nam 
Electricity) and 9 wholly owned corporations; and 5 affiliate companies (more than 50% ownership) 143,404 
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 2011 total 
revenue: 
₫36.5 trillion 
 
Pre-tax profit: 
₫3.268 trillion Parent company and 
29 corporations including: 
8 wholly owned affiliate 
companies; and 
21 affiliate companies with 
more than 50% ownership  8,000 
Viet Nam Rubber 
Group (VRG) - Rubber plantation and 
exploitation 2011 revenue: 
₫33.5 trillion Two parent companies and 
22 affiliate companies  10.217 
Vietnam Textile 
Group (Vinatex) - Textile 
- Cotton 
- Clothes manufacturing Pre-tax profit: 
US$1,340 billion Parent company and 
8 subsidiaries   0.811 
 
Source: Information provided by the Vietnamese authorities. Groups and companies are listed by the State 
Bank of Viet Nam: 
http://sbv.gov.vn/wps/wcm/connect/df85450048a3179caa6ceb2bfbc28bc0/DNNN.pdf?MOD=AJPERE
S&CACHEID=df85450048a3179caa6ceb2bfbc28bc0; 
 http://vnexpress. net/gl/kinh-doanh/2013/03/cuoc-dai-ph au-nhung-tap-doan-khung-o-viet-nam/; 
http://doanhnhan.vneconomy.vn/20130117023542739P0C 5/suc-khoe-tap-doan-tong-cong-ty-nha-
nuoc-qua-cac-con-so.htm; 
 http://www.nhipcaudautu.vn/article.aspx?id= 11304-vinatex-du-kien-dat-2,73-ti-usd-kim-ngach-
xuat-khau; http://www.pvn.vn/?portal=news&page=detail&category_id=95&id=3648; 
http://vov.vn/Kinh-te/Vinacomin-dat-loi-nhuan-2500-ty-dong/243799.vov; 
http://www.tienphong.vn/Kinh-Te/610962/Nam-2012-Tap-doan-Hoa-chat-lai-3318-ty-dong-
tpp.html.   
3.140.  According to data provided by the authorities, Viet Nam's SOEs employ around 1.6 million 
workers. Their combined production value was approximately ₫189 trillion in 2010, and their 
collective profit was ₫111 trillion. However, the overall pr ofit figures are dominated by the 
performance of PetroVietnam, which reports direct ly to the Prime Minister. The taxes paid by 
PetroVietnam accounted for 30% of the state budget in 2010.  
3.141.  Although Viet Nam has worked on reforming its state-owned sectors for more than 
20 years, data suggest that the SOEs are less effici ent in the use of capital, land, labour, and other 
fixed assets than private or foreign-owned enterprises, and that the difference in efficiency has been increasing in recent times. From 2000 to 2009, the average capital per employee in SOEs 
soared from ₫0.4 billion to ₫1.5 billion while the average capital/employee ratio in Vietnamese 
enterprises, generally, rose more modestly (from ₫0.3 billion to ₫0.8 billion). Moreover, the 
average net turnover to capital ratio (an indica tor of the productivity of capital) increased 
generally by nearly 240% during the period, while the ratio fell by more than 30% in the SOEs.  
3.142.  The financial difficulties of the Vietnam Shipbuilding Industry Group (Vinashin), exposed in 
2010, also revealed a number of other structural weaknesses in large Vietnamese SOEs, such as weak corporate governance, complex corporate structures, lack of effective oversight and 
monitoring, limited accountability, and the apparent  will and ability of senior management to use WT/TPR/S/287 • Viet Nam 
 
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  borrowed capital and profits retained in an enterprise to expand business well beyond the stated 
core activities of the SOE. In 2011, a Steering Committee, headed by the Minister of Finance, was set to restructure SOEs. In addition, Decree No. 59/2011/ND-CP of 18 July 2011 introduced more flexible provisions in the legal framework for equitization with regard to the selection of strategic 
investors, the determination of the share price, and the sequence of equitization and initial public 
offerings. Viet Nam also began the process of le gally separating state ownership rights from the 
State's regulatory functions. However, there are no signs so far that Viet Nam would be ready to 
abandon its fundamental approach towards state ownership in large enterprises, which may be 
characterized as mixture of renovation, preservation, and expansion.
121  
3.143.  Viet Nam identified some state-trading enterprises in its WTO accession package.122 It also 
reserved the importation of some goods for state trading (cigars and cigarettes; crude oil and 
petroleum products; newspapers, journals and periodicals; recorded media for sound or pictures; 
and aircraft and spacecraft).123 Nevertheless, Viet Nam has so far not notified to the WTO whether 
it maintains any state-trading enterprises, within the meaning of Article XVII of the GATT 1994, or 
the working definition in the Understanding on the Interpretation of Article XVII, trading in these 
or any other goods. Furthermore, Viet Nam has no t submitted periodic reports to the WTO, for the 
purpose of transparency, on the status of its eq uitization programme or the reform of equitized 
enterprises, as indicated in the accession documents.124  
3.4.8  Competition policy 3.144.  Viet Nam's Law on Competition entered into force on 1 July 2005.
125 The law applies to all 
enterprises operating in Viet Nam, including state-owned or state-controlled enterprises, 
foreign-invested enterprises, and trade associations. The law generally prohibits acts constituting 
unfair competition or acts restricting competition, such as competition restriction agreements, the abuse of dominant or monopoly positions
126, or economic concentration arrangements. Unfair 
competition acts, defined in Chapter III of the Law, include the provision of misleading indications, 
infringement of business secrets, coercion in business, discrediting or disturbing the business 
activities of competitors, advertisement or promotion aimed at unfair competition, discrimination 
by an association, and illicit multi-level sales,  i.e. pyramid schemes. Agreements preventing, 
restraining, or disallowing other enterprises from entering a market or developing their business; 
eliminating enterprises other than the parties to an agreement, or bid-rigging agreements are prohibited per se . Competition restriction agreements, such as direct or indirect price fixing; 
market sharing; restraining or controlling produc tion, supply, sales, technological developments, 
or investment; and the imposition of conditions (not directly related to the subject matter of the contract) on other enterprises, are prohibited when the parties to such agreements have a 
combined share of 30% or more of the relevant ma rket. Mergers, acquisitions, joint ventures, etc. 
are in principle not allowed if the combined market share of the participating enterprises exceeds 50% of the relevant market, unless (i) the enterprises remain small or medium-sized, (ii) one or 
more of the participants face dissolution or bankruptcy, or (iii) the economic concentration 
contributes to Viet Nam's socio-economic development. Economic concentration agreements that cover 30%-50% of the relevant market must be notified before implementation, unless the participants will remain small or medium-sized enterprises.  
3.145.  The Viet Nam Competition Authority (VCA), a government agency under the Ministry of 
Industry and Trade, is the enforcement authority and policy advisor on competition matters. In addition, the VCA is working on strengthening consumer rights further to Law No. 59/2010/QH12 
on Protection of Consumers' Rights, in effect since 1 July 2011, and, as noted above, conducts 
trade remedy investigations on imports into Viet Nam. The VCA investigates alleged competition restriction practices on the basis of complaints or on its own initiative. Final reports are presented 
                                               
121 VDR (2012), p. 35. 
122 WTO document WT/ACC/VNM/48, Table 5. 
123 WTO document WT/ACC/VNM/48, Table 8(c). 
124 WTO document WT/ACC/VNM/48, paragraph 95. 
125 Law No. 27/2004/QH11 of 3 December 2004. Five decrees constitute the implementing legislation, 
i.e. Decrees Nos. 110/2005/ND-CP of 24 August 2005, 116/2005/ND-CP of 15 September 2005, 120/2005/ND-CP of 30 September 2005, 05/2006/ND-CP of 9 January 2006, and 119/2011/ND-CP of 16 December 2011, together with Circular No. 19/2005/TT-BTM of 8 November 2005.  
126 Sales of goods or services below total prime cost to eliminate competitors, application of different 
commercial conditions for the same transaction to create unequal compet ition, and preventing competitors 
from entering a market are examples of ab use of dominant or monopoly position. WT/TPR/S/287 • Viet Nam 
 
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  to the Competition Council for decision.127 The Competition Council's subsidiary body (the 
Competition Case-Handling Council) may conduct hearings, order additional investigations, dismiss a case, or uphold the VCA's findings. The subsidiary body arrives at its decision by majority vote. Decisions of the subsidiary body may be appealed  to the Competition Council, and appeals of VCA 
decisions may be brought before the Ministry of Industry and Trade. Their decisions may be 
challenged in an administrative lawsuit. Competition decisions are enforced by provincial-level civil judgement enforcement agencies in the province or  city where the offender is headquartered or 
resident.  
3.146.  Since 2006, the VCA has launched an increasing number of investigations into alleged 
unfair acts of competition. By the end of 2011, 94 investigations had been concluded, mostly 
relating to unfair advertising (58 cases) or illegal multilevel sales (20 cases). The VCA issued fines 
and administrative fees totalling ₫1.425 billion in 2011, taking accumulated fines and 
administrative fees imposed since 2006 to more than ₫4.2 billion. The VCA initiated 
10 investigations into agreements restricting competition, in 2010, and a further 10 in 2011, 
taking the number of cases launched since 2006 to 40.
128 However, at the end of 2011 only six of 
these investigations had been completed, and on ly three had been decided by the Competition 
Case-Handling Council.  
3.147.  Based on past experience, the VCA initia ted studies and surveys in 2011 into the structure 
of the Vietnamese market for the production of au tomobiles, detergents, paper, oil and glass, and 
the provision of pay-TV services, advertising, shippi ng, life insurance, as well as the distribution of 
pharmaceuticals. The VCA is also engaged in raising the understanding of competition law issues 
among the business community and the public at  large. The VCA is a member of the ASEAN 
Experts Group on Competition (AEGC), and participates in meetings of the International Competition Network (ICN) and other international working groups on competition. The VCA has 
also been engaged in the negotiations to esta blish a competition policy framework within the 
Trans-Pacific Partnership (TPP) Agreement, and Viet Nam's FTA negotiations with the EU, EFTA, and the Customs Union of Belarus, Kazakhstan, and the Russian Federation.  
3.148.  Work on consumer protection has been focused on strengthening the legal framework. 
Government Decree No. 99/2011/ND-CP provides guidelines for implementing the Law on the Protection of Consumer Rights, and Govern ment Decree No. 19/2012/ND-CP of 16 March 2012 
stipulates guidelines for the imposition of sanctions such as warnings, administrative fines up to 
₫70 million, revocation of business licences or cert ificates, the confiscation of illicit profits, and 
other forms of penalty. Violations include harassment or coercion of consumers, inadequate warranty or sale of defective goods, breach of confidential customer information, violation of 
general trading conditions and contractual obligations, and other infringements as stipulated by 
the Law.  
3.149.  The VCA has so far not been overly busy  conducting trade remedy investigations in 
Viet Nam. However, significant resources have been employed to assist Vietnamese exporters 
subject to investigations in overseas markets.
 129 The VCA is also engaged in Viet Nam's efforts to 
be recognized as a market economy by its trading partners. According to the VCA, 8 additional countries agreed to grant Viet Nam market-econo my status during 2012, increasing the total to 
37 trading partners.  
3.4.9  Price controls 3.150.  Until recently the basic principles of price control in Viet Nam were laid down in the 
Ordinance on Price, in effect since 1 July 2002, and Decree No. 170/2003/ND-CP, as amended in 
2008.
130 The Ordinance on Price was replaced by the Law on Price No. 11/2012/QH12, in effect 
                                               
127 The Competition Council was established pursuant to Government Decree No. 05/2006/ND-CP of 
9 January 2006. The Council has from 11 to 15 members, who are appointed (or dismissed) by the Prime Minister on the proposal of the Minister of Industry and Trade.  
128 In 2011, nine cases concerned cartels and one dealt with abuse of dominant/monopoly position 
(Viet Nam Competition Authority, 2011).  
129 The agency has, for example, set up an early wa rning system based on an ti-dumping cases against 
Vietnamese exports to major markets.  
130 Decree 170 was amended and supplemented through Decree No. 75/2008/ND-CP of 9 June 2008. 
Circular No. 104/2008/TT-BTC of 13 November 2008 guides Decrees 170 and 75. In addition, Prime Minister's Decision No. 116/2009/QD-TTg of 29 September 2009 modified the list of goods and services subject to "price WT/TPR/S/287 • Viet Nam 
 
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  since 1 January 2013. Respecting the market mech anism and the right of businesses to set their 
own prices, the State may exercise price regulation to stabilize prices or to protect the legitimate interests of business entities, consumers, or the St ate. The Law on Price identifies four forms of 
price regulation, i.e. price "valorization", prices for goods and services determined by the State, 
price consultation, and the examination of "price constituents".  
3.151.  Price valorization, i.e. efforts to stabilize the prices of certain essential goods and services 
(covered by Articles 15 to 18) affects petrol and other petroleum products, electricity, liquefied 
petroleum gases, nitrogenous fertilizer and NPK fert ilizer, plant protection chemicals (specified by 
law), vaccines preventing diseases for bovine animals and poultry, kitchen salt, milk for children under six, edible sugar, husked and un-husked ordinary rice, and preventive and curative medicines for human use (according to a list of essential medicines for use in medical 
establishments).
131  
3.152.  Price determination by the State is in the form of specific rates, price ranges, or minimum 
or maximum charges (Articles 19 to 22). Specific price setting applies to aviation services132, 
including take-off and landing charges, flight management, assistance for "flight assurance", and 
security screening; telecommunications connecting services; and electricity, electricity transmission, and electricity system support services.
133 Price ranges with specifically determined 
prices affect land and forests, ground water and potable water, rents and rent/purchase options 
for housing built with state funds, medical treatment, and education/training services. Minimum (or maximum) prices are set for the rental of state-owned infrastructure, domestically produced cigarettes, public utility services, and certain "nat ional reserve" goods. Price consultation, i.e. the 
mediation of a governmental authority in price discussions between buyers and sellers, can be 
effected for important goods and services where competition is limited on the side of the seller and/or buyer. Price constituents, i.e. detailed prod uction costs, are examined when specific price 
setting is applied for goods and services subject to price "valorization", and for other goods and 
services at the request of the Prime Minister, mini sters, or other high-level officials when prices 
are changing "abnormally".  
3.153.  Since 2008, certain businesses have been obliged to declare their selling prices, and 
changes to them, to the competent state authorities, e.g. the Ministry of Finance or provincial level 
Finance Departments.
134 Price declaration affects industrial explosive materials, seaport services, 
airport services, domestic airfreight rates, char ges for transportation by car, and medicines for 
human use.135 The Ministry of Finance may apply controls when prices increase or decrease 
"groundlessly" or "unreasonably". It has been ob served that, for goods and services subject to 
price declaration, this measure is likely to lead to greater harmonization in the price calculations of 
market participants and thus more uniform profit margins, thereby ignoring the differences in risks 
facing many businesses.136  
3.154.  According to the authorities, the scope of price declaration and price registration measures 
has been reduced with the promulgation of the new Law on Price.137 Price registration is currently 
only applied for the period of price stabilization measures. The authorities also note that price declaration implies a statement of the new price, and not the submission of the calculation data. Provisions on dumping and monopoly pricing, included in the earlier Ordinance on Price, were not 
carried forward into the Law on Price, to avoid overlapping with other relevant legislation.  
                                                                                                                                               
valorization", and the Government Office issued an official letter on 24 May 2010 (No. 3450A/PCP-KTTH) on 
the promulgation of a circular on price management.   
131 The list of goods and services sp ecified in Article 15, clause 2 can only be modified by the Standing 
Committee of the National Assembly upon proposal by the Government.  
132 The State establishes tariffs fo r domestic air transportation se rvices on monopolized routes.  
133 Regarding the retail price of electricity, higher rates are charged for indust rial users, commerce, and 
foreign consumers (see section 4.3.2.1).  
134 Circular No. 104/2008/TT-BTC of 13 November 2008. 
135 Goods and services subject to price declaration are listed in Ministry of Finance Circular 
No. 122/2010/TT-BTC of 12 August 2010. The People's Committees may decide on assets, goods, or services 
to be subject to price declaration or price control at the local level. 
136 European Commission (2011). 
137 The Ministry of Finance has submitted to the Government a draft Decree to implement the Law.  WT/TPR/S/287 • Viet Nam 
 
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  3.4.10  Trade-related intellectual property regime 
3.4.10.1  Overview 3.4.10.1.1  General 3.155.  Intellectual property (IP) protection is  a focus for Viet Nam and many of its trading 
partners. The Doi Moi  process was followed by relatively more active liberalization in IP, to allow 
Viet Nam's accession to the WTO. However, in addition to facing the challenges common to all low-income developing countries, Viet Nam also had to make a radical switch from an IP approach 
for a socialist, planned economy to an IP system adapted for market-oriented economies. To some 
extent, the transition is still on-going. However, the various interests and efforts in Viet Nam are 
accelerating the movement towards higher integration of the IP-innovation-trade triangle into the international framework and towards more business and legal security, in the WTO, the World 
Intellectual Property Organization (WIPO), ASEAN, or APEC. 
3.156.  Viet Nam is continuing to modernize its IP system to adjust it to developments, and to its 
international commitments, whilst anticipating modern IP challenges. At the same time, Viet Nam 
is defending its interests, considerations, and stances in on-going negotiations with its trading 
partners. The international framework (and other policy considerations) has contributed to its more outward-oriented approach, and more active, offensive strategy, albeit more defensive in 
certain areas, such as enforcement.  
3.4.10.1.2  Notifications in the TRIPS Co uncil and review of legislation in 2008 
3.157.  In accordance with Article 63.2 of th e TRIPS Agreement and with the procedure and 
practice of the Council for TRIPS
138, Viet Nam notified its main dedicated IP laws and regulations in 
late 2007/early 2008.139 Viet Nam's legislation was reviewed by other Members from 13 March to 
17 June 2008.140 In the course of the review, the Vietnamese delegation provided useful 
information about its enforcement system. Viet Na m notified amendments to the legislation in 
2010.141 Amendments made after 2010 have yet to be notified formally to the TRIPS Council.142  
3.4.10.1.3  IP authorities 3.158.  The National Office of Intellectual Prop erty (NOIP), under the Ministry of Science and 
Technology (MOST), and the Copyright Office of Vi et Nam (COV), under the Ministry of Culture, 
Sports and Tourism, are the principal agencies responsible for IP issues.
143 Other agencies are 
involved in aspects of IP protection, e.g. in the granting of plant variety certificates (Ministry of Agriculture and Rural Development), the issuance of  compulsory licences, or enforcement matters.  
3.159.  The NOIP is responsible for the overall mana gement of intellectual property and the direct 
management of industrial property. The agency is  also engaged in the development of legislation 
and policymaking. Apart from the granting of  industrial property titles of protection
144, the NOIP 
provides expert opinions to serve enforcemen t. The NOIP records licences, contracts, and 
                                               
138 IP/C/2. 
139 The table of main laws and regulations notified by Viet Nam in document IP/N/1/VNM/1 contains a 
summarized description of the main dedicated IP legi slation. Main dedicated IP laws and regulations: 
IP/N/1/VNM/1, IP/N/1/VNM/2, IP/N/1/VNM/3, IP/N/1/VNM/4. Enforcement: IP/N/1/VNM/E/1, IP/N/1/VNM/E/2, 
IP/N/1/VNM/E/3, IP/N/1/VNM/E/4, IP/N/1/VNM/E/5. Copyright: IP/N/1/VNM/C/1. Industrial property (patents, 
utility models, trademarks, industrial designs, etc.): IP/N/1/VNM/I/1, IP/N/1/VNM/I/2, IP/N/1/VNM/I/3, 
IP/N/1/VNM/I/4. Plant variety protection: IP/N/1/VNM/P/1. Undisclosed information (test data for 
pharmaceuticals): IP/N/1/VNM/U/1. 
140 Viet Nam's responses to questions raised by other Members are contained in documents 
IP/Q/VNM/1-IP/Q2/VNM/1-IP/Q3/VNM/1-IP/Q4/VNM/1. 
141 WTO document P/N/1/VNM/O/1, 28 May 2010. 
142 According to the authorities, notifica tions should be submitted in June 2013. 
143 The agencies' respective websites are: http://www.noip.gov.vn  and http://www.cov.gov.vn . The 
predecessor of the COV, the Viet Nam Copyright Protection Agency, was established in 1987. 
144 In general, decisions taken by the NOIP can be a ppealed to the Administrative Court (Article 39 of 
the Law on Complaints and Denunciation 1998, amended in 2005, and Article 2 of the Ordinance on Procedures for Settlement of Administrative Cases in 1996, amended in 2006).  WT/TPR/S/287 • Viet Nam 
 
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  assignments. Its two main branches are in Ho Chi Minh City and in Da Nang City, and it has a 
liaison office in the Hoa Lac High-Tech Park.  
3.160.  The NOIP is very active nationally and internationally, for example, in AWGIPC, within 
ASEAN, and in training and IP awareness campaigns,  including public outreach actions. The NOIP 
has, inter alia , created a Distance Learning Program on IP. A recipient of technical assistance until 
recently, Viet Nam (through the NOIP) has become a provider of assistance, for example to Lao PDR.
145  
3.161.  The COV has two branches, in Ho Chi Minh City and in Da Nang. Its tasks include helping 
the Minister of Culture, Sports and Tourism in the management of copyright and related rights 
protection; the submission of proposals for strategies, laws, mechanisms and policies, implementation, and enforcement; taking measures to protect copyright; and granting registration 
certificates for copyright and related rights.
146 The COV is also in charge of applying commitments 
under the Brussels Convention concerning encrypted program-carrying satellite signals.  
3.162.  In the context of the meetings of the TRIPS Council (regular and special sessions147), 
Viet Nam coordinates its positions with other ASEAN members as a general rule. In view of the 
importance of IP for the country, the Permanent Mi ssion in Geneva has an IP expert exclusively 
dedicated to TRIPS/IP-related issues in WIPO, the WTO, and other fora.  
3.4.10.1.4  International treaties 
3.4.10.1.4.1  WIPO 3.163.  In addition to the WIPO Convention, Vi et Nam is party to a number of WIPO-related 
treaties (Table 3.15). Viet Nam has not yet signed the most recent treaties negotiated in WIPO, 
e.g. the Internet treaties (WCT, WPPT, Beijing Tr eaty) or the trademark procedural treaties (TLT, 
Singapore Treaty).
148 
Table 3.15 WIPO treaties (+ UPOV Convention) in force for Viet Nam 
Treaty Subject-matter (non-exhaustive list 
of elements) Date of accession 
or ratification Date of entry 
into force 
WIPO treaties    
WIPO Convention Constituent instrument of WIPO 7 April 1981 
(Declaration of 
Continued 
Application) 21 July 1976 
Berne Convention Copyright (artistic, literary, etc. works) 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, geographical indications 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 
                                               
145 NOIP (2012), p. 15. 
146 The duties and tasks are stipulated in Decision No. 41/2008/QD-BVHTTDL of 15 May 2008.  
147 The Special Session of the TRIPS Council is the Do ha Round group negotiating the establishment of a 
multilateral system of notification and registration of geographical in dications for wines and spirits.  
148 Viewed at: http://www.wipo.int/treaties/en/ShowResults.jsp?country_id=185C . WT/TPR/S/287 • Viet Nam 
 
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  Treaty Subject-matter (non-exhaustive list 
of elements) Date of accession 
or ratification Date of entry 
into force 
Protocol relating to the 
Madrid Agreement 
(Marks) International registration of marks 11 April 2006 11 July 2006 
UPOV Convention 1961 
- 1991 Act Sui generis  system of protection of 
plant varieties  24 November 2006 24 December 
2006 
Source: WTO Secretariat, on the basis of WIPO information on treaties. Viewed at: 
www.wipo.int/treaties/en/ .  
3.4.10.1.4.2  APEC 
3.164.  Viet Nam is pro-active in APEC's Intellectual Property Group (IPEG). Towards implementing 
the Collective Action Plan approved by IPEG, the NOIP participated in the development of Viet Nam's IP Action Program in 2011, in  cooperation with other APEC economies.
149  
3.4.10.1.4.3  ASEAN 
3.165.  Viet Nam is a party to various IP schemes within the framework of ASEAN.150 Since 1996, 
the ASEAN countries have been cooperating closely on the development of a common IP system 
through the ASEAN Working Group on Intellectual Property Cooperation (AWGIPC). As ASEAN 
economic integration is planned for 2015, AWGIPC prepared a new work plan as part of the Blueprint of the ASEAN Economic Community (AEC).
151 The ASEAN Intellectual Property Action 
Plan 2011-2015 aims to meet "the goals of the AEC by transforming ASEAN into an innovative and 
competitive region through the use of IP for thei r nationals and ensuring that the region remains 
an active player in the international IP community ". AWGIPC has set five strategic goals, to be 
monitored and regularly evaluated: (i) to achieve a balanced IP system taking account of the 
varying levels of development and the various interests at stake (those of users and generators of 
IP); (ii) to develop appropriate legal and policy IP infrastructures nationally or regionally; (iii) to promote IP creation, awareness, and utilization as a tool for innovation and development, as a tool 
for technology transfer, etc.; (iv) to maintain active regional participation in the international IP 
community, closer relationship with dialogue partners and institutions to develop the capacity of ASEAN countries, and address the needs of the stak eholders of the region; and (v) to intensify 
cooperation to enhance human and institutional capacity of IP offices in the region.  
3.166.  For each strategic goal, "initiatives" or pr ojects will have a lead country or co-leading 
countries. Viet Nam is leading efforts on plant variety protection, and co-leads the capacity-building of design and trademark attorn eys, and geographical indication protection.  
3.4.10.1.4.4  Bilateral or regional agreements 
3.167.  Viet Nam's various economic and free-trade agreements (Chapter 2) all contain an IP 
component, with various degrees of binding commi tments and detail. The bilateral agreement with 
the United States (BTAs) on copyright, signed in 2000, is particularly detailed.
152 Chapter 9 of the 
Economic Partnership Agreement between Viet Nam and Japan covers all IPRs and enforcement.153 
In addition to its participation in the negotiations on "new generation FTAs"154, Viet Nam has 
signed bilateral agreements and concluded MoUs fo cusing on issues such as technical assistance 
and cooperation between IP agencies, and streamlined IP procedures.  
                                               
149 NOIP (2011). 
150 NOIP (2011), p. 13. 
151 AWGIPC has recently launche d the ASEAN IP Portal (at www.aseanip.org ), the official website of the 
ASEAN on Intellectual Property.  
152 Viewed at: http://www.noip.gov.vn/web/noip/ho me/en?proxyUrl=/noip/cms_en.nsf/  and 
http://www.cov.gov.vn/cbqen/index.php .  
153 WTO RTA Database. Viewed at: 
http://rtais.wto.org/UI/PublicShowMemberRTAIDCard.aspx?rtaid=170. 
154 Examples are negotiations towards a Trans-Pa cific Partnership Agreem ent (TPP), a Free Trade 
Agreement with the EU, and a Free-Trade Agreement with EFTA states. WT/TPR/S/287 • Viet Nam 
 
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  3.4.10.1.5  Innovation 
3.168.  Viet Nam is moving rapidly to modernize its IP system and to integrate with the global 
economy, particularly at the regional level.  
3.169.  The 2012 Global Innovation Index  ranked Viet Nam 76th out of 141 countries.155 Within 
ASEAN, this puts Viet Nam in fifth place. The 2012-2013 Global Competitiveness Report , which 
also uses innovation as one of its indicators, ranks Viet Nam 75th out of 144 countries.156  
3.4.10.2  Intellectual property 
3.170.  As Viet Nam stated in the TRIPS Council in 2008, the Civil Code of 1995, which introduced 
the basic principles of property, including in tellectual property, was the fundamental text 
representing a turning point in Vietnamese efforts to become a market economy. The Civil Code was revised in 2005 by Law No. 33/2005/QH11, re-stipulating the basic civil principles of IPRs. The 
Civil Code is the basis on which the whole universe of IPRs is regulated by IP legislation in 
Viet Nam (Table A3.8). The Law on Intell ectual Property (Law No. 50/2005/QH11 of 
29 November 2005) was amended and supplemente d in 2009 (Law No. 36/2009/QH12). This Law 
covers comprehensively the full range of full IPRs. Implementing provisions are generally 
regulated by decrees and circulars. 
3.4.10.2.1  Copyright and related rights 
3.171.  Under the amended Article 27 of the Law on  Intellectual Property, the term of protection 
for a work is the life of the author plus 50 years post mortem auctoris . Other works have different 
periods of protection and the duration of protecti o n  i s  c o m p u t e d  d i f f e r e n t l y  a s  p r o v i d e d  b y  t h e  
Berne Convention and the TRIPS Agreement. Moral rights are protected for an indefinite term. The 
State is owner of anonymous works, works whose author passed away without successors-in-title, 
and works assigned to the State (amended Article 42). Currently, Viet Nam has four non-governmental, non-profit collective societies, i.e. the Viet Nam Literary Copyright Center 
(VLCC); 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). The collective management of copyright and related rights is a new concept in 
Viet Nam, and technical cooperation with other WTO Members and sister collecting societies 
elsewhere has played an important role in the establishment of the Vietnamese societies.  
3.172.  COV delivers certificates of protection of copyright and related rights. The Berne 
Convention as incorporated in the TRIPS Agreement provides for automatic protection. However, 
Viet Nam, like some other countries, has set up a system of registration of copyright.
157 The 
registration system allows authors and creators to  use the certificates as evidence in case of 
litigation. Nationals and foreigners may use the system. Some 4,000-5,000 registration certificates 
have been issued annually in recent years.  
3.4.10.2.2  Industrial property 3.173.  IP registration statistics for 2008-11 indicate stability or growing interest in protection 
among IP stakeholders (Table 3.16). Most applicat ions and registrations relate to trademarks and 
patents. Most applications and registrations emanate from individuals and enterprises resident in Viet Nam, except for patents, where the grea t majority of the applications are filed by 
non-residents. 
                                               
155 INSEAD and WIPO (2012). See also WIPO-INSEAD Press Release No. PR/2012/715, 3 July 2012, 
"Release of the Global Innovation Index 2012: Switze rland Retains First-Place Position in Innovation 
Performance". Viewed at:  http://www.wipo.int/pressroom/en/articles/2012/article_0014.html . 
156 World Economic Forum (2012). 
157 Viewed at: http://www.cov.gov.v n/cbqen/index.php . According to the Law on Intellectual Property 
(Articles 6 and 49, paragraph 2), an ap plication for a registration certificat e is not mandatory for entitlement to 
copyright and related rights.  WT/TPR/S/287 • Viet Nam 
 
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  Table 3.16 Trademarks, industrial design s, and patents and utility models, 2008-12 
 2008 2009 2010 2011 2012 
Trademark applications      
Resident  
Non-resident 
Total  
Abroad 20,831 
11,853 
32,684 
1,001 22,378 
10,486 
32,864 
881 21,214 
11,075 
32,289 
945 22,376 
10,483 
32,859 
1,676 22,838 
6,740 
29,578 
.. 
Trademarks granted      
Resident 
Non-resident 
Total 
Abroad 15,826 
11,855 
27,681 
803 16,231 
10,481 
26,712 
656 12,731 
8,142 
20,873 
1,053 15,879 
10,236 
26,115 
1,372 14,976 
5,066 
20,042 
.. 
Industrial designs 
applications       
Resident 
Non-resident 
Total 
Abroad 1,088 
648 
1,736 
84 1,430 
469 
1,899 
136 1,206 
511 
1,717 
65 1,197 
636 
1,833 
75 1,349 
597 
1,946 
.. 
Industrial designs granted      
Resident 
Non-resident 
Total 
Abroad 908 
429 
1,337 
27 747 
489 
1,236 
29 861 
323 
1,184 
85 825 
344 
1,169 
71 681 
440 
1,121 
.. 
Patent applications      
Resident 
Non-resident 
Total  
Abroad 320 
3,163 
3,483 
14 391 
2,752 
3,143 
6 306 
3,276 
3,582 
19 300 
3,260 
3,560 
21 382 
3,577 
3,959 
.. 
Patent granted      
Resident 
Non-resident 
Total 
Abroad 39 
627 
666 
2 29 
677 
706 
2 29 
793 
822 
4 48 
1,796 
1,844 
5 45 
980 
1,025 
.. 
Utility solutions applications      
Resident 
Non-resident 
Total 
Abroad 116 
168 
284 133 
120 
253 215 
40 
255 
2 193 
54 
247 
1 198 
100 
298 
.. 
.. Not available. 
Source: WTO Secretariat, based on WIPO statistics data, last updated in December 2012 (for 2008-11). 
Statistics for 2012 provided by the Vietnamese authorities.  
3.4.10.2.2.1  Trade marks 
3.174.  Viet Nam reformed its trademark system during the WTO accession process. It reported to 
the TRIPS Council in 2008 that its trademark protection for goods and services is TRIPS compliant overall. Vietnamese legislation provides for regular, collective, and certification marks, and protects well-known trademarks. While the use of signs such as seals is forbidden for regular 
trademarks, it is authorized for collective and certification marks. The NOIP undertakes formal and 
substantive examinations of trademark applications. Viet Nam provides an initial period of protection from the grant date until the expiry  of ten years from the filing date, renewable 
indefinitely for periods of ten years. 
3.4.10.2.2.2  Geographical indications (GIs) 3.175.  Viet Nam's Law on Intellectual Property provides protection of GIs, including appellations 
of origin for all products, through registration at the NOIP. Once registered, the protection has an 
indefinite duration from the date of grant of the certificate by the NOIP. Persons entitled to use a GI may ask the competent state agency to stop illegal use of that GI. The right to register GIs of Vietnamese origin and ownership rights belong to the State. The concept and the protection 
requirements of a GI in Viet Nam's legislation (Articles 4 and 79 of the IP Law) correspond to 
Article 22.1 of the TRIPS Agreement, and addition al protection for GIs for wines and spirits is 
provided through Article 129.3 of the Law. WT/TPR/S/287 • Viet Nam 
 
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  3.176.  From 2001 to 2012, 62 applications were filed for the protection of GIs, mainly for 
agricultural products, foodstuff, and handicraft. Applications for GIs are mainly presented by Vietnamese local authorities. Of the 34 GI certificates issued during the same period, 3 (out of 5 applications) concern foreign GIs.
158  
3.4.10.2.2.3  Industrial designs 
3.177.  In accordance with Viet Nam's TRIPS commitments, the NOIP protects two- and 
three-dimensional designs. According to Article 93.4 of the IP Law, an initial term of protection 
(from the grant date) until the expiry of five year s from the filing date is provided, and renewable 
for two consecutive periods of five years. Prior used industrial designs that are "independently 
created" ("prior users" in IP Law) are not consid ered infringements of the right of the industrial 
design owner (Article 134).  
3.4.10.2.2.4  Patents for inventions 
3.178.  The NOIP undertakes formal and substantive examination of patent applications. 
Viet Nam's legislation covers "utility solution patents", which include utility models (Article 58.2 of 
the IP Law), for which the inventive step is lower. Protection lasts until the expiry of 20 years from 
the filing date for a patent for invention, and 10 years for a utility solution. The IP Law provides for exclusions from patentability and exceptions to ex clusive rights, e.g. prior use, private use, or 
temporary entry into Viet Nam's space.  
3.179.  The share of patent applications by top fields of technology from 1997 to 2010 was: 
engines, pumps, turbines (13.01%); transport (8.13%); other special machines (7.32%); machine tools (6.50%); textile and paper machines (6.50% ); furniture, games (6.50%); civil engineering 
(5.69%); electrical machinery, apparatus, energy (4.88%); handling (4.07%); materials, 
metallurgy (4.07%); and others (33.33%). 
3.180.  Viet Nam's Law on Intellectual Property reflects the main TRIPS provisions on compulsory 
licensing. Such licences may be granted to any third organization or person for (i) national defence 
and security, disease prevention, and treatment and nutrition of people or other urgent needs of 
society; (ii) failure to use the patented invention; (iii) failure to grant a voluntary licence on 
reasonable terms and conditions despite efforts by the third party to negotiate such voluntary 
licence; or (iv) in case of anti -competitive practices prohibited by the Law on Competition. The Law 
provides for a time-limit of non-use of four years from the date of patent application, or three years from the date of grant. Article 136.1 of the Law stipulates that right-holders are 
obliged to "use" the patented invention to meet the needs for national defence and security, 
disease prevention and treatment, and nutrition of  people, or other urgent needs of society. In 
compliance with Article 27.1 of the TRIPS Agreement, needs satisfied by imported products or 
products manufactured under contractual licences are deemed to fulfil the obligation to "use" the 
invention (Article 23.2 of Decree No. 103). The compul sory licensing provisions also apply to utility 
solution patents.  
3.181.  Ministries and ministerial-level agencies may issue compulsory licences in their respective 
areas of competence noted above. The Ministry of Science and Technology is responsible for 
compulsory licensing in other cases (Article 177.1 of the Law). No compulsory licences have been 
granted since 2008.  
3.182.  Regarding the "Paragraph 6 System" established under the Doha Declaration on TRIPS and 
public health, Viet Nam benefits from the waivers accepted in the WTO 2003 Decision WT/L/540 and Corr.1.
159 According to the latest information available, Viet Nam has no legislation reflecting 
the Paragraph 6 system under the waiver decision. Furthermore, Viet Nam has so far not notified 
its acceptance of the 2005 Protocol amending the TRIPS Agreement (WT/L/641).160  
                                               
158 NOIP (2011), p. 70. 
159 See http://www.wto.org/english/tratop_e/trips_e/wtl641_e.htm   
160 See http://www.wto.org/english/tratop_e/trips_e/implem_para6_e.htm  and 
http://www.wto.org/english/tratop_e/trips_e/amendment_e.htm  WT/TPR/S/287 • Viet Nam 
 
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  3.4.10.2.2.5  Plant varieties 
3.183.  The UPOV Convention (1991 Act) entered into force for Viet Nam on 26 December 2006. 
The Ministry of Agriculture and Rural Development (MARD) is the main authority responsible for plant variety protection.
161 The conditions for obtaining protection of plant varieties are those 
provided under the UPOV Convention, e.g. novelt y, distinctiveness, uniformity, and stability. 
Part IV of Viet Nam's IP Law enunciates other aspects of plant variety protection, such as exclusive rights, and compulsory licences, which may be issued by other ministries and ministerial-level 
agencies in their areas of competence, on  the basis of consultations with MARD.  
3.184.  As regards exceptions to exclusive rights, Part IV of the Law provides exceptions such as 
private use or use for other non-commercial purposes, experimental use, plant breeder's exception (i.e. for another plant breeder to use the protected plant variety to create another variety), and 
farmer's privilege (i.e. the right for a farmer to use material harvested on his/her own land).  
3.4.10.2.2.6  Layout-designs  of integrated circuits 
3.185.  Viet Nam's legislation regarding this catego ry of IPRs reflects the provisions of the TRIPS 
Agreement, including the provisions of the Washin gton Treaty incorporated in the Agreement. The 
terms of protection are those set out in Article 38 of the TRIPS Agreement. The NOIP conducts a formal examination, and not a substantive examination of applications for protection. So far, 
16 registration certificates have been granted.  
3.4.10.2.2.7  Protection of  undisclosed information 
3.186.  According to Article 84 of the Law on Intellectual Property, undisclosed information, such 
as trade secrets, is protected without registrati on as long as the three requirements for such 
protection provided by Article 39.1 of the TRIPS Agreement are fulfilled. Conditions for test data 
protection, provided in the pharmaceutical and agri-chemical sectors, reflect TRIPS Article 39.3 
provisions. In addition, Article 128 of the Law specifies that the authority concerned shall not 
allow, for five-years from the grant of market authorization to the original provider of such data, 
that the test data be used by subsequent applic ants for market authorizations, without the consent 
of the original provider.  
3.4.10.2.2.8  Unfair competition 
3.187.  Article 130.1 of the Law on Intellectual Prop erty sets out a non-exhaustive list of acts 
considered as "acts of unfair competition", e.g. use of commercial indications that cause confusion as to: business entities, activities or commercial source of goods or services; the origin, quality, or 
other characteristics of goods or services; registration or use of a domain name identical or 
confusingly similar to a protected trade name. Organizations and individuals that have committed acts of unfair competition are liable to the administrative remedies provided for in Viet Nam's 
competition legislation.  
3.4.10.2.2.9  Other matters 3.188.  Viet Nam has opted for international exhaustion of IPRs. Article 21.2 of 
Decree No. 103/2006/ND-CP, as amended and su pplemented by Decree No. 122/2010/ND-CP. 
3.4.10.2.3  Enforcement 3.189.  Before the review of the TRIPS Council in 2008, Viet Nam provided responses to the 
Checklist of issues on Enforcement
162, including a chart on the administrative system for IPR 
enforcement (Chart 3.5). 
                                               
161 The MARD has issued 53 certificates for plant va riety protection, with a total of 112 plant variety 
rights in the crops sector in 2012.  
162 WTO document IP/N/6/VNM/1, 1 February 2008. WT/TPR/S/287 • Viet Nam 
 
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  Chart 3.5 Administrative IPR enforcement agencies 
Administrative bodies engaging in the enforcement of IPRs
(Article 200 IP LAW, Article 17 Decree No. 106/ND-CP of 22 September 2008;
Article 45 Decree No. 47 /ND‐CP)
Customs
Custom sub-
departments at 
border gates
People's committeesCustoms  
unitsPolice
People's 
committees at 
provincial levelPeople's 
committees at 
district levelInvestigative 
police
department
Viet Nam
competition 
authorityInvestigative police division 
for economic crime of 
provincial police departmentsInspectorate authorities
Inspectorate 
agencies of local 
departmentInspectorate 
agencies of 
MinistriesMarket control authorities
Market control 
departmentMarket control 
sub-departmentsMarket control 
units
 
Source:  Information provided by the authorities of Viet Nam. 
3.190.  Viet Nam's enforcement system is highly complex. It is regulated by a combination of 
various legal and administra tive texts (Table A3.9).163 
3.191.  District-level people's courts (civil courts) are responsible for civil procedures and 
remedies. The legislation reflects the features of  the TRIPS provisions on civil procedures and 
remedies. For example, it provides for injunctions, provisional measures, including " inaudita altera 
parte", damages, including recovery of profits and moral injury, and other remedies. Remedies 
under Article 46 of the TRIPS Agreement are provided for in Article 214.3 of the IP Law and 
Articles 29 to 31 of Decree No. 105/2006/ND-CP.  
3.192.  Various administrative bodies may be competent for measures or remedies against IPR 
infringements: the Customs Office for border measures (importation and exportation), and 
administrative remedies against infringements of IPRs (copyright-related rights and industrial 
property (trademarks and GIs); Science and Technology Inspectorates (industrial property rights); Culture, Sports and Tourism Inspectorate (copyright and related rights); People's Committees 
(IPRs within their jurisdiction); Economic Police - head of the District Police and Economic Police 
Division, the Director of the Provincial Police, and Director General of the Economic Police Department (investigation and actions against infringements of IPRs in all areas of production and business.  
                                               
163 Civil Code, the Civil Procedure Code (2004), the Penal Code, the Law on Intellectual Property, rules 
regarding market control officers of  the Ministry of Industry and Tr ade (Market control department and 
district-level market control depart ments), rules regarding the customs officers (customs office, customs 
department, Department of anti-smuggl ing investigation), Specialized Inspection, including cultural, sport and 
tourism inspectorates at central level and local level, scientific and technological inspectorates at central level and local level, and local People's committees and Police (district police, province police and economy police). WT/TPR/S/287 • Viet Nam 
 
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  3.193.  The issues of counterfeited (trademarks in particular) and pirated goods (copyright and 
related rights) remain matters of concern for Viet  Nam's trade partners, e.g. cable and satellite 
signal theft  or piracy of books.164 The number of infringement cases brought before the authorities 
and the monetary amounts of fines issued by them have fluctuated considerably in recent years 
(Table 3.17).  
Table 3.17 Industrial property infringement cases, 2007-12 
Year 2007 2008 2009 2010 2011 2012 
Total infringement cases 3,257 2,855 1,905 1,904 1,711 1,164 
Industrial design 394 447 212 215 107 38 
Trademark 2,833 2,386 1,654 1,632 1,561 1,083 
Patent 18 3 7 0 4 10 
GI 3 7 26 46 39 33 
Unfair competition 6 5 6 11 - - 
Total monetary fine ( ₫ million) 5,514 8,692 7,744 5,115 9,314 4,002 
Source: Information provided by the Vietnamese authorities.  
 
                                               
164 Office of the United States Trade Representative (2013). Although the USTR recognizes that 
Viet Nam has made progress on its regulatory framework and enforcement efforts in recent years, Viet Nam 
remains on the Special 301 Report "watch list". Widesp read counterfeiting and piracy, including over the 
Internet, remain serious concerns. In addition, unauthorize d reception and dist ribution of satellite channels via 
illegal decoders and domestic pay TV  platforms continue. The USTR note s that administra tive actions and 
penalties do not seem to have an y significant deterrent effect.  WT/TPR/S/287 • Viet Nam 
 
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  4  TRADE POLICIES BY SECTOR 
4.1  Overview 4.1.  Since 2007, Viet Nam has made continuous progress towards a market-oriented economy, 
and is gradually opening up most sectors while maintaining government intervention in sensitive 
or lucrative activities characterized by high mark et concentration. Its approach to protection of 
goods is, by and large, tariff-based and dualistic, i.e. relatively low overall manufacturing tariff protection, contrasts with higher levels of protection in agriculture. Emphasis is put on relatively 
inward-oriented development of certain activities (e.g. mining, manufacturing) involving, inter alia,  
local content, domestic value-added, and market  share improvement objectives. The fact that 
some sectors continue to be protected or otherwise assisted more than others constitutes a potential impediment to efficient re-allocation of resources in the economy as a whole, to the 
detriment of total factor productivity and thus, inter alia , international competitiveness.  
4.2.  Production and trade in agricultural products has increased considerably over the past few 
years as yields increased following land reforms, which started in 1988, and Viet Nam is now a 
major producer and exporter of several agricultural products with a significant surplus in 
agricultural trade. Although productivity has increased, several factors continue to constrain production, the main one being the small size of most farms, which limits economies of scale. 
State support to agriculture is concentrated on improving infrastructure, research and 
development, and extension services although inte rest rates and inputs are also subsidized and 
state-owned enterprises have an important role in processing and trade of some products.  
4.3.  Although smaller than the agriculture sector, fisheries is also important to the economy and 
both the capture and aquaculture subsectors are expanding. Viet Nam has a large trade surplus in 
fishery products and most imports are for processing and re-export. The capture industry is based on large numbers of small vessels, which makes regulation and control difficult.  
4.4.  In mining, where foreign-invested enterprises account for the largest part of total output, 
efforts have been undertaken to promote sustainable development and ensure that mined products are used in a cost-effective and efficient way; legislative changes have affected, 
inter alia,  the granting of mining licences and increased royalties. Overall tariff protection in the 
sector remains relatively low; the average applied MFN tariff on mineral fuels and oils has dropped considerably while the rate for ores, slag, and ash has increased slightly. Export prohibitions, controls and taxes on several mining products have been reinforced to ensure adequate domestic 
supplies, increased value-added (e.g. assistance to down-stream activities), and/or vital tax 
revenue.  
4.5.  Efforts have been made to promote renewable energy sources, and energy saving and 
efficiency. The energy sector remains dominated by cross-owned state enterprises
1, and 
characterized by loose separation between oper ational, regulatory, and ownership functions. 
Efforts are being made to address the country's limited oil-refining capacity. Retail petrol and oil 
prices are adjusted in accordance with flexibly applied market-based mechanisms and are now 
closer to international market prices. Natural gas prices along with wholesale electricity prices are kept generally low. Despite the on-going establishment of a competitive electricity market, the low purchase prices of electricity by the state-owne d monopoly discourage investment in much-needed 
new power-plant capacity; the current pricing structure does not allow electric utilities to cover the 
full cost of producing and distributing electricity, and electricity rates for low-income households and irrigation are cross-subsidized by higher rates for industry and commerce.  
                                               
1 For statistical purposes, the offici al definition of state-owned enterprises (sections 1.4.2.2 and 3.4.8) 
includes: enterprises with 100% of state capital operatin g according to the provisions of the Enterprise law and 
under the control of central or local governmental ag encies; limited companies under management of central 
or local government; and joint-stock companies with do mestic capital, of which the government holds more 
than 50% of the charter capital. No n-state enterprises are enterprises set up by domestic capital of the 
following types: cooperatives; private enterprises; cooperative name companies; private limited companies; joint-stock companies without capital of the state; an d joint-stock companies with 50% or less of charter 
capital owned by the Government. Foreig n direct invested enterprises are enterprises with capital directly and 
entirely or partly (joint ventures) invested by foreigners (General Statistics Office of Vietnam, 2011, pp. 189-190). WT/TPR/S/287 • Viet Nam 
 
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  4.6.  The contribution of manufacturing to GDP ha s dropped steadily since 2007, while its share in 
employment has risen. Overall, average applied MFN tariff protection for industrial products has been cut by almost half; nevertheless, tariffs on  apparel and clothing, footwear, ceramic products, 
automobiles, and motorcycles remain relatively high compared with those on other manufactures. 
Reference prices have been used for risk assessment purposes for imports of certain products (e.g. 
apparel and clothing, footwear). Domestic support to manufacturing activities is provided in the form of tax and non-tax incentives, as well as government-procurement practices, and a 
buy-locally campaign entitled "Vietnamese people use Vietnamese products". In addition to border 
protection, industry-specific support was adopted to boost "support industries", an important element for increasing local content in some key sectors (e.g. textiles and garments, motor vehicles) and the steel industry, while assistance to the automotive sector has been under 
consideration. Efforts were made to, inter alia,  promote patient safety and sustainable access to 
pharmaceutical and biological products.  
4.7.  Services, the largest sector of the economy, have been further liberalized as a result of 
Viet Nam's comprehensive WTO accession undertaki ngs; consequently, its GATS+ commitments in 
recent regional-trade agreements have been more limited. Although higher than the overall average level in the rest of the economy, labour pr oductivity grew at a slower pace than in other 
sectors. Certain activities, e.g. telecommunications,  aviation services, and railways, are subject to 
ceilings on foreign ownership. State involvement in major services subsectors (e.g. banking, telecommunications, and transport) with high market concentration is significant in some cases. Despite visible successes, the banking sector ha s been exposed to unusually rapid growth in 
lending but action is being taken to address safety and soundness issues. Great strides have been 
made in upgrading telecommunications, and impr oving the access to and affordability of such 
services; a pro-competition regulatory regime was passed, albeit subject to certain limitations. 
While screening quotas for foreign movies in cinemas were passed recently, certain restrictive 
conditions tied to film imports were removed. Transport infrastructure deficiencies, and the increasingly higher fees and surcharges of foreign firms that dominate Viet Nam's overseas 
shipping market, have seemingly affected export competitiveness; the presence of foreign vessels 
operating in the domestic container-shipping market was temporarily restricted. Efforts have been made to address ports' competitiveness by reduci ng their fees. Reduced airport charges and fees 
were offered to encourage airlines  to increase their flight frequencies. Despite Viet Nam's openness 
to fully foreign-owned businesses, an economic needs test is compulsory for any retail outlet to be 
established after the first one.   
4.2  Agriculture 
4.2.1  Features 
4.8.  Agriculture is an important part of the ec onomy of Viet Nam where, in 2012, it represented 
about 17% of GDP and 47% of employment. Although  the contribution of agriculture to GDP has 
declined from nearly 40% in the early 1990s, over the past few years it has increased, driven by 
relatively high prices and expanding production.   
4.9.  According to the 2011 rural, agricultural and fishery census, out of a total agricultural land 
area of 26.2 million ha, about 10.1 million are used for crops, 15.4 million for forestry, and 
0.7 million for aquaculture.
2  
4.10.  Production is based on family farms, with about 8.9 million households engaged in 
agriculture in 2011, slightly down from 9.1 million in 2006.3 Most farms are less than 0.5 ha, and 
84% are less than 2 ha; very few greater than 10 ha. Although, farm sizes vary somewhat from 
one region to another, the proportion over 2 ha never goes higher than 5%.4 However, in many 
areas, the climate and infrastructure allow two or three crops per year, which means harvested 
area can be greater than farm size.  
4.11.  Viet Nam produces a wide variety of agricultural products, with crop production accounting 
for over three quarters of the gross value of output. Rice, the main crop, accounts for 36% of the total value of agricultural production, followed by coffee and rubber. In 2011, Viet Nam was the 
                                               
2 General Statistics Office of Vietnam (2012), Table 65. 
3 General Statistics Office of Vietnam (2012), Table 50. 
4 General Statistics Office of Vietnam (2012), Table 60. WT/TPR/S/287 • Viet Nam 
 
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  world's biggest producer of cashew nuts and pepp er, the second biggest producer of coffee, and 
one of the ten biggest producers of several other products including rubber, rice, tea, pig meat, 
and cassava.5  
4.12.  Production of all major agricultural products increased steadily in recent years (Table 4.1) 
and growth has been particularly strong for cashew nuts and cassava, which had average annual 
growth rates of over 15% from 2000 to 2011. Cotton is the main exception to the general story of 
growth, as production declined by 3.5% annually.6 The total value of production of livestock and 
livestock products is much smaller than the total value of crop production, but it has grown 
strongly over the past ten years, particularly pig meat which, in value terms, is now the second agricultural product. 
Table 4.1 Production of se lected commodities, 2005-11 
  2005  2006  2007  2008  2009 2010 2011  
Total  Const 1994 ₫ bn 137,055  142,643  147,765  158,108  162,593 170,215 178,537  
Crops Const 1994 ₫ bn 107,898  111,613  115,375  123,391  124,463 129,779 135,882  
Rice, paddy Const 1994 ₫ bn 57,333 57,360 57,509 61,968 62,320 64,010 67,838 
'000 hectares 7,329 7,325 7,207 7,400 7,437 7,489 7,655 
'000 tonnes 35,833 35,850 35,943 38,730 38,950 40,006 42,399 
Coffee, green Const 1994 ₫ bn 9,024 11,820 10,992 12,672 12,696 13,200 14,016 
'000 hectares 497 497 509 531 539 555 571 
'000 tonnes 752 985 916 1,056 1,058 1,100 1,168 
Cashew nuts Const 1994 ₫ bn 1,441 1,362 1,872 1,851 1,751 1,863 1,908 
'000 hectares 348 382 440 407 391 379 360 
'000 tonnes 240 227 312 309 292 311 318 
Cassava Const 1994 ₫ bn 3,492 4,047 4,260 4,841 4,436 4,470 5,147 
'000 hectares 426 475 496 554 508 498 558 
'000 tonnes 6,716 7,783 8,193 9,310 8,531 8,596 9,898 
Rubber Const 1994 ₫ bn 3,952 4,551 4,969 5,412 5,830 6,166 6,658 
'000 hectares 483 522 556 632 678 749 834 
'000 tonnes 482 555 606 660 711 752 812 
Maize Const 1994 ₫ bn 5,946 6,052 6,756 7,180 6,864 7,263 7,534 
'000 hectares 1,053 1,033 1,096 1,440 1,089 1,126 1,081 
'000 tonnes 3,787 3,855 4,303 4,573 4,372 4,626 4,799 
Sugar cane Const 1994 ₫ bn 3,139 3,511 3,653 3,391 3,278 3,394 3,683 
'000 hectares 266 288 293 271 266 269 282 
'000 tonnes 14,949 16,720 17,397 16,146 15,608 16,162 17,540 
Bananas Const 1994 ₫ bn 1,747 1,780 1,932 2,083 2,096 2,124 2,267 
'000 hectares 105 108 111 112 116 120 122 
'000 tonnes 1,344 1,369 1,486 1,602 1,612 1,634 1,744 
Pepper Const 1994 ₫ bn 1,480 1,462 1,647 1,813 1,998 1,943 2,017 
'000 hectares 49 49 48 50 51 51 55 
'000 tonnes 80 79 89 98 108 105 109 
Livestock Const 1994 ₫ bn 26,051  27,839  29,114  31,326  34,628 36,824 38,925  
Pig meat Const 1994 ₫ bn 18,304 20,040 21,304 22,264 24,288 24,288 24,792 
'000 tonnes 2,288 2,505 2,663 2,783 3,036 3,036 3,099 
Cattle meat Const 1994 ₫ bn 1,179 1,328 1,710 1,884 2,183 2,316 2,382 
000 tonnes 142 160 206 227 263 279 287 
Chicken meat Const 1994 ₫ bn 4,173 4,511 4,667 5,824 6,864 8,138 9,048 
000 tonnes 321 347 359 448 528 626 696 
Hen eggs Const 1994 ₫ bn 2,646 2,660 2,992 3,308 3,662 4,269 4,621 
000 tonnes 3,949 3,970 4,466 4,938 5,465 6,371 6,897 
Source:   Viet Nam authorities; and FAOStat. Viewed at: http://faostat.fao.org  [March 2013]. 
4.13.  Land reform has been credited with being a significant factor in the increase in production of 
agricultural products.7 Although the State, through the local authorities, is the owner, farmers are 
entitled to land-use rights. Under Resolution No. 10 of 1988 land use rights were for 15 years for annual crops and 40 years for perennial crops. Th e periods of tenure were increased under the 
Land Law of 1993 to 20 years for annual and 50 years for perennial crops. The Land Law also 
allowed for the exchange, transfer, lease, inherita nce, and mortgaging of land-use rights. The Law 
has been further amended over the years, inter alia , to improve the functioning of the market in 
land-use certificates, allow foreign investment, and permit changes in land use. 
                                               
5 FAOStat online database. Viewed at: http://faostat.fao.org  [March 2013]. 
6 WTO Secretariat calculations based on FAOStat data. 
7 OECD (2010). WT/TPR/S/287 • Viet Nam 
 
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  4.14.  Technical change has also had a major impact on production, for example the increased use 
of machines reduced labour requirements and released for production land that had been used for working animals. Rural and agricultural infrastr ucture has also improved: the 2011 census showed 
that by July 2011 practically all communes and villages had access to electricity and that roads 
and irrigation systems had improved.
8 
4.2.2  Trade 4.15.  Viet Nam has a surplus in agricultural trade with both imports and exports of agricultural 
products increasingly significantly over the past  few years, except in 2009 when both declined 
before growth resumed in 2010 (Chart 4.1). The va lue of trade has increased more rapidly than 
the volume as agriculture prices have increased in most years since the early 2000s, with the exception of 2009.   
Chart 4.1 Imports and exports of  agricultural products, 2004-11 
02,0004,0006,0008,00010,00012,00014,000
2004 2005 2006 2007 2008 2009 2010 2011US$ million
Exports
Imports
 
Source: UN Comtrade. 
4.16.  The main exports, rice and coffee, together make up over half of total exports of agricultural 
products (WTO definition), followed by pepper, starches, and manioc.9 Over the past few years, 
Viet Nam has become a major exporter of several agricultural products, and in volume terms, in 2011 was the biggest exporter of shelled cashew nuts and pepper and the second biggest of rice, 
green coffee, and several other products. 
4.17.  Imports are more widely dispersed than expo rts. The main imports tend to be feed and raw 
materials; oil cake and cotton were the top two imports in 2010 (Table 4.2). The increase in imports of animal feeds is reflected in the increa se in domestic production of pig meat and other 
animal products, although domestic production  of animal feed has also increased (with 
considerable variations from one year to the next). The increase in imports of cotton is also reflected in the increase in production of textiles although, in this case, domestic production has 
declined. 
                                               
8 General Statistics Office of Vietnam (2012), pp 67-70. 
9 For the purposes of this Review, agriculture pr oducts are defined as set out in Annex 1 of the 
Agreement on Agriculture, where fish products are defined as HS2002 Headings 0208.40, 03, 0511.91, 1504, 
1603, 1604, 1605, and 2301.20. Although not defined as an agricultural product under the Agreement on 
Agriculture, export data for rubber is  included under exports in Table 4.2 but is not included in the total for 
exports of agricultural products. WT/TPR/S/287 • Viet Nam 
 
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  Table 4.2 Exports and import s of agricultural, 2005-11 
HS 
2002   2005 2006 2007 2008 2009 2010 2011 
Exports 
 TOTAL (not including rubber) 3,988  4,561  6,049  8,254  7,873 9,289 12,083  
1006 Rice '000 tonnes  3,040  4,643  4,580  4,745  5,969 6,894 7,117  
US$ million  1,408  1,276  1,490  2,896  2,666 3,250 3,659  
0901 Coffee '000 tonnes  503 981 1,232  1,061  1,184 1,218 1,260  
US$ million  740 1,217  1,917  2,114  1,731 1,851 2,761  
0801 Coconuts, Brazil nuts and 
cashew nuts '000 tonnes  115 142 166 188 231 .. 244 
US$ million  514 479 636 910 884 1,137 1,496  
0904 Peppe r '000 tonnes  76 117 83 91 135 117 124 
US$ million  152 191 272 312 349 423 734 
1108 Starches; inulin '000 tonnes  313 584 665 473 640 .. 981 
US$ million  80 148 203 206 250 354 528 
0714 Manioc, arrowroot, sweet 
potatoes, etc. '000 tonnes  142 315 273 234 .. .. .. 
US$ million  69 149 196 171 336 223 448 
0902 Tea '000 tonnes  33 105 116 105 135 137 135 
US$ million  99 110 133 147 180 201 206 
0810 Other fruit, fresh '000 tonnes  66 68 .. 81 86 .. 94 
US$ million  89 91 107 157 160 147 182 
1701 Sugar '000 tonnes  1 8 11 13 4 2 276 
 US$ million  0 2 5 5 2 1 174 
4001 Rubbe r '000 tonnes  561 628 674 642 630 672 714 
 US$ million  714 1,137  1,312  1,563  1,109 2,090 2,989  
Imports 
 TOTAL (not including rubber) 2,404  2,850  4,066  5,819  5,757 7,849 10,052  
2304 Oil-cake and other solid 
residues '000 tonnes  1,016  1,222  2,494  3,162  2,080 2,650 2,981  
US$ million  320 385 683 1,045  1,029 1,218 1,287  
5201 Cotton, not carded or 
combed '000 tonnes  106 176 202 291 295 349 320 
US$ million  163 214 259 456 385 661 1,037  
1001 Wheat and meslin '000 tonnes  1,018  1,248  1,223  702 1,386 2,221 2,431  
US$ million  201 226 343 293 346 570 814 
1511 Palm oil and its fractions '000 tonnes  225 270 627 546 .. 573 673 
US$ million  119 167 328 450 347 478 657 
0801 Coconuts, Brazil nuts and 
cashew nuts '000 tonnes  26 22 197 55 33 92 90 
US$ million  87 73 139 224 167 289 570 
1201 Soya beans '000 tonnes  4 20 51 167 129 212 993 
US$ million  1 7 17 65 78 109 478 
0402 Milk, cream, concentrated 
or with added sugar '000 tonnes  99 90 120 94 61 135 135 
US$ million  230 213 289 319 235 349 407 
2309 Preparations used in 
animal feeding '000 tonnes  88 104 129 128 132 172 218 
US$ million  107 126 160 188 208 273 336 
1005 Maize '000 tonnes  188 475 .. .. .. 1,873 .. 
US$ million  44 95 105 146 327 454 328 
.. Not available. 
Source: UNSD Comtrade. 
4.2.3  Policies 
4.18.  The Ministry for Agriculture and Rural Development has primary responsibility for 
agricultural policy, preparing draft legislation, im plementing the legislation, supporting production, 
and regulating inputs to and outputs from the agriculture sector. It is also responsible for the forestry, fisheries, and salt subsectors. The Ministry's structure is set out in Decrees 
No. 01/2008/ND-CP and No. 75/2009/ND-CP. A number  of divisions are responsible for specific 
subsectors and/or cross-cutting issues such as planning, science and technology, and the environment. Also under the Ministry are seve ral agencies 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. In addition, there are 63 Departments of Agriculture and Rural 
Development responsible for applying laws and policies around the country. 
4.19.  Other ministries responsible for some aspects of agricultural policy are: the Ministry of 
Natural Resources and Environment, responsible for land-use; the Ministry of Industry and Trade, 
responsible for food distribution and trade; the Ministry of Health, responsible for social policies and food security; and the Ministry of Finance for fiscal policy, including support to agriculture. In 
addition, the People's Committees are responsible for some aspects of agricultural policy in the 
provinces. WT/TPR/S/287 • Viet Nam 
 
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  4.20.  The private sector is represented by the Vietnam Food Association for enterprises engaged 
in trade and processing agricultural products, and the Vietnam Farmers' Union, with some 
sector-specific associations also representing producers. 
4.21.  State-owned enterprises play a critical, thou gh declining, role in the production, processing, 
and trade of agricultural products (Table 4.3). Examples include:  
 Vietnam Northern Food Corporation (Vinafood1) and the Vietnam Southern Food 
Corporation (Vinafood2), which purchase, process, import, and export food and salt 
products. About half of Viet Nam's rice expo rts are exported by these two corporations. 
Until marketing year 2012/13, Vinafood2 had th e exclusive right to sell to the Philippine 
market, and has retained exclusive supplier status for government-to-government 
contracts, which totalled about 200,000 tonnes for 2012/1310; 
 Vietnam National Coffee Corporation (Vinacafe) which, through its subsidiaries, member 
companies, and associated companies, has inte rests in all stages of the coffee chain. The 
Corporation's interests in production are mostly limited to research into coffee 
production, and it assists producers by providing seeds and advice. Vinacafe is currently 
being restructured and it has disposed of a number of subsidiaries11;  
 Vietnam Rubber Corporation, which is the largest natural rubber company in Viet Nam 
with 40 subsidiaries, 39 farms, and 30 processing plants. It accounted for 70% of total production in Viet Nam in 2005
12; and 
 Vietnam National Tea Corporation (Vinatea), which is involved in all stages of tea 
production, processing, and marketing, and is involved in research and providing 
extension services. 
Table 4.3 Gross output of state, non-state, and foreign invested sector at constant 1994 
prices, 2005-11a 
(₫ billion) 
 2005 2008 2009 2010 2011 
S t a t e       
 Food products 21,228.5 15,886.4 13,282.6 14,462.4 16,935.8 
 Beverages 4,424.9 7,274.8 7,790.5 7,085.8 8,313.5 
 Tobacco 11,109.5 12,281.2 12,872.2 14,072.1 15,465.4 
N o n - s t a t e       
 Food products 35,557.2 71,631.6 76,818.7 87,435.9 102,260.8 
 Beverages 2,369.6 5,084.9 5,652.4 7,725.4 8,100.2 
 Tobacco 37.7 13.9 10.8 10.4 9.8 
Foreign invested sector      
 Food products 18,325.8 33,618.8 40,273.2 46,946.5 55,819.6 
 Beverages 4,291.4 7,198.8 6,968.7 6,209.6 6,793.3 
 Tobacco 87.1 191.6 211.9 232.0 256.6 
a  "State-owned enterprises include following type s: (1) Enterprises with 100% of state capital 
operating according to enterprise law and under co ntrol of central or loca l governmental agencies; 
(2) Limited companies under management of centra l or local government; (3) Joint stock companies 
with domestic capital,  of which the government shares more than 50% charter capital.  
 Non-state enterprises are enterp rises set up by domestic capital. The capital may be owned by 
cooperative, private with 1 or individual group or the government when capital of the Government is 
equal to less than 50% of registered capital. Th ere are following types of non-state enterprises: 
(1) Cooperatives; (2) Private enterprises; (3) Cooperative name companies; (4) Private limited companies; (5) Joint stock companies without capi tal of State (6) joint stock companies with 50% 
and less than of charter capital shared by the Government. 
 Foreign direct invested enterprise s are enterprises with capital directly invested by foreigners, not 
separated by per cent of capital shared. There are following types of fo reign direct invested 
enterprise: Enterprises with 100% of capital invest ed by foreigners and joint-venture enterprise 
between domestic investor and foreigner."  
Source: General Statistics Office (2011), Statistical Year Book of Viet Nam , pp. 190, 447, 451, 455, 
Tables 204, 206, 208. 
                                               
10 USDA Foreign Agricultural Service (2013), p. 18. 
11 USDA Foreign Agricultural Service (2012a). 
12 Global Rubber Markets. Viewed at: http://globalrubbermarkets.com/3583/the-rise-of-the-magic-
weapon-of-vietnamese-natural-rubber-industry.html  [April 2013]. WT/TPR/S/287 • Viet Nam 
 
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  4.2.3.1  Trade policies 
4.22.  The simple average for tariffs on agricultural products (WTO definition) was 17% in 2013 
which, although lower than in 2007, is higher th an the overall average tariff of 10%. Tariffs on 
agricultural products tend to vary considerably from one group to another; the highest are for 
HS heading 24 (see section 3.2.2).  
4.23.  Under its WTO accession commitments for agriculture, Viet Nam operates tariff quotas for 
eggs, sugar, and tobacco, which increase by 5% each year. The most recent notification on 
imports under tariff quotas for 2010 shows no import s of eggs under the tariff quota, most of the 
sugar quota was used, and about half the tobacco quota was used.13 In addition, Viet Nam has 
quotas for preferential imports of rice and tobacco from Cambodia and Lao PDR (see section 3.2.2). 
4.24.  Viet Nam bound its export subsidy commitments at "nil" on acceding to the WTO. According 
to the Master Plan for agriculture, support for exports is through trade promotion rather than through direct support.   
4.25.  Under Decree No. 109/2010/ND-CP and Circular No. 44/2010/TT-BCT on rice export 
businesses, rice exporters require a certificate from  the Ministry of Industry and Trade. To qualify 
for a certificate, the enterprise must have storage capacity of at least 5,000 tonnes and milling 
capacity of at least 10 tonnes per hour, and must meet other technical requirements intended to 
improve value added for rice exports. The Decree also provides the legal basis for regulating 
export prices of rice, while Ministry of Financ e Circular No. 89/2011/TT-BTC sets out guidelines to 
be used to determine the floor price for rice exports. According to the authorities, the Viet Nam 
Food Association uses these guidelines to calculate minimum export prices for rice. 
4.26.  In addition to minimum export prices the government imposed a temporary suspension on 
new export contracts from July 2007 to the end of that year. 
4.27.  According to the authorities, Viet Nam does not control exports of any agricultural products. 
4.2.3.2  Domestic policies 4.28.  The supporting tables on domestic support for agriculture, which were distributed during 
Viet Nam's accession to the WTO, relate to the years 1999-01. In this period, the main focus of 
support was for programmes notified as exempt from reduction commitments under Annex 2 of the Agreement on Agriculture (Green Box) ( ₫14,689.3 billion in 2001) where most support was 
provided for infrastructure, regional assistance, and relief from natural disasters. A further 
₫1,814.05 billion was provided in 2001 for development programmes exempt from reduction 
commitments under Article 6.2 of the Agreement on Agriculture.  
4.29.  The supporting tables also showed Amber Box support for rice, sugar, cotton, and pork, 
along with non-product-specific support. However, only support for sugar was over the 10% 
de minimis  threshold.
14 Viet Nam bound its Total Aggregate Measurement of Support at 
₫3,961.59 billion. The main policy tools used were interest rate and input support and, for sugar, 
price support. Since acceding to the WTO, Viet Nam has not made any notifications on domestic 
support or on export subsidies to the Committee on Agriculture. 
4.30.  According to the Master Plan for agriculture development, public spending on agriculture in 
2000-10 was about 5-6% of the total state budg et, which suggests that in 2010 it was between 
₫33,068.5 and ₫39,682.2 billion.15 
4.31.  According to the IMF, in 1993-2011, 24 projects for agriculture and natural resources were 
approved for public support with a total value of US$1,461 million in lending, US$45.4 million for 
technical assistance, and US$47.7 million in grants.16 
                                               
13 WTO document G/AG/N/VNM/2, 3 November 2011. 
14 WTO document WT/ACC/SPEC/VNM/3/Rev.7, 2 August 2006. 
15 Ministry of Agriculture and Rural Development (2012), p. 61 (Vietnamese) states public spending on 
the agriculture sector was 5-6% of the total State budget; the General Statistics Office (2011), p. 149, 
Table 68, states that the state budget expenditure in 2010 was ₫661,370 billion in 2010. WT/TPR/S/287 • Viet Nam 
 
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  4.32.  The general objectives for agricultural development are set out in the Master Plan of 
Production Development of Agriculture to 2020 an d a Vision toward 2030, approved by the Prime 
Minister's Decision No. 124/QD-TTg of Fe bruary 2012 and Resolution No. 63/NQ-CP of 
December 2009. The Plan sets out objectives for different agricultural products, such as area 
planted; yields and production volumes with an emphasis on increasing yield (through research 
and development as well as better training and infrastructure); and market development (both domestic and export through promotion and mark et development). The Plan recognizes current 
weakness in policy formation due to a lack of research and monitoring and poor statistical base.
17 
4.33.  To achieve the objectives in the Plan, domest ic policy is focused on increasing productivity 
and reducing risk exposure through investment in infrastructure, research and development, 
better extension services, and easier access to credit.  
4.34.  Product-specific plans set out objectives and general policies for some crops and other 
agricultural products. For example, a new plan fo r the development of the coffee was approved in 
August 2012 by the Ministry of Agriculture and Rural Development. Like the Master Plan for 
agriculture, the coffee plan sets objectives for areas and yields. In addition to improving 
infrastructure, government policy is to improve productivity by replacing spent trees and expanding Arabica planting, as well as assisting farmers to obtain third-party certification for 
sustainable production.
18 Similarly, the Cotton Development Master Plan for 2015-20 sets targets 
for areas (in this case, an increase in area plante d) and states that assistance will be provided 
through low-interest loans and improved infrastructure.19 
4.35.  Interest rates on purchases of farming and aquaculture equipment, and investments in 
storage facilities and the manufacture of farming equipment are subsidized under Prime Minister's 
Decisions No. 63/2010/QD-TTg and No. 65/2011/QD-TTg. Under the State Bank's circular No. 22/2012/TT-NHNN guiding the implementation of these decisions, qualifying loans from the 
participating banks have an interest rate subsidy of 100% for the first two years and 50% 
thereafter. The participating banks are all state-owned and include the Vietnam Bank for Agriculture and Rural Development (VBARD), th e Mekong Housing Bank (MHB), the Bank for 
Investment and Development of Viet Nam (BIDV), the Vietnam Bank for Industry and Trade 
(Vietinbank), and the Joint-Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank). The scheme has been operational since August 2012. By 31 March 2013, total loans from the participating banks under the scheme were ₫687.21 billion to 16 enterprises, 3 cooperatives, and 
7,300 household/individuals. 
4.36.  In Circular 14/2012/TT-NHNN of May 2012, the State Bank imposed an interest rate cap on 
short-term loans for investments in agriculture, rural development, production, exports, SMEs and 
supporting industries. The maximum interest rate was set as the State Bank one-month rate plus 
3% and, as of May 2013, was equal to 11%. According to the authorities, this is a temporary measures intended to address the global financial crises. 
4.37.  Charges for different type s of irrigation for different agricultural uses are set out in 
Government Decree No. 142/2003/ND-CP as amended by Decree No.115/2008/ND-CP and 
Decree No. 67/2012/ND-CP. Households and individuals using land for most agricultural purposes are partly or fully exempt from irrigation fees. Th e estimated cost for the reductions in irrigation 
fees under Decree No. 11572008/ND-CP was approximately ₫4,000 billion. 
4.38.  Fertilizer importers have access to subsidized credits while producers may obtain loans at 
preferential rates. The state-owned Vietna m National Chemical Group (Vinachem) and 
Petrovietnam Fertilizer and Chemicals Corporation are the biggest fertilizer producers in the 
country. In addition, inputs (natural gas) to the Phu My Fertilizer Plant, owned by Petrovietnam, 
are subsidized, although other fertilizer plants using coal as a raw material do not receive input 
subsidies. 
4.39.  Government support is provided to enterp rises to buy rice for reserves. In 2008 and 2009, 
it covered the loan interest charges of the (state-owned) Vinafood2 for buying 500,000 tonnes of 
                                                                                                                                               
16 IMF (2012). 
17 Ministry of Agriculture and Rural Development (2012), p. 62 (Vietnamese). 
18 USDA Foreign Agricultural Service (2012a). 
19 USDA Foreign Agricultural Service (2012b). WT/TPR/S/287 • Viet Nam 
 
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  rice to increase domestic reserves, at a cost of about ₫35 billion in 2008.20 In addition, the 
Government uses national stocks to stabilize prices. Although they may establish maximum and/or minimum prices, the authorities generally use prices subsidies.  
4.40.  In addition to their small size, most farms also tend to be made up of several holdings, 
which exacerbates problems of economies of scale. In response, the Government launched a Large 
Scale Farm model for rice for the 2010-11 winter-spring rice crop in the Mekong River Delta region, which covered about 100,000 ha in early 2013.
21 
4.3  Fisheries 
4.3.1  Features 4.41.  Fisheries remains an important part of the economy in Viet Nam: it represented 6.3% of 
merchandise exports in 2011 (down from 7.5% in the 1990s). In 2012, fisheries contributed about 
4.2% to GDP (down from 10-11% in 1990s but up from 3.7% in 2009); and in 2011, it accounted 
for 3.2% of total employment. Viet Nam has a surp lus in fisheries trade, with exports worth more 
than US$6,255 billion, nearly eleven times greater than imports (Table 4.7). 
4.42.  Both the aquaculture and marine catches have increased steadily for the past few years 
although the rapid increase in the value of the fish eries sector is due to higher prices as well as 
greater volumes (Charts 4.2 and 4.3). However, inland catch declined from a peak of 
244,000 tonnes in 2001 to 203,000 tonnes in 2011 due, to some extent, to pollution as well as to 
excessive exploitation, including inappropriate fishing methods such as electrocution and chemicals.  
Chart 4.2 Total fisheries catch in Viet Nam 
01,0002,0003,0004,0005,0006,000'000 tonnes
Aquaculture
Freshwater catchMarine catch
 
Source: GSO online information. Viewed at: http://www.gso.gov.vn  [March 2013]. 
                                               
20 Le Trong Hai (2012), p. 10. 
21 USDA Foreign Agricultural Service (2013). WT/TPR/S/287 • Viet Nam 
 
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  Chart 4.3 Total fisheries production in Viet Nam 
010,00020,00030,00040,00050,00060,00070,000Constant 1994 dong billion
Aquaculture
Catch
 
Source: GSO online information. Viewed at: http://www.gso.gov.vn  [March 2013]. 
4.43.  The area devoted to aquaculture has increased considerably (although slower than 
production, as productivity has also increased): the 641,900 ha in aquaculture in 2000 had increased to 1,054,700 ha by 2011, while production increased from 590,000 tonnes to 2,930,000 tonnes. Several factors are driving the rapid increase in aquaculture, but higher 
incomes are probably the principle driving force, as aquaculture offers higher income per hectare 
than traditional farming (Table 4.4). 
Table 4.4 Gross output per hectare, 2005-11 
(₫ million) 
 2005 2006 2007 2008 2009 2010 2011 
Cultivated land 23.6 26.4 31.6 43.9 45.5 54.6 72.2 
Aquaculture 47.4 55.4 67.4 77.4 87.1 103.8 135.2 
Source: GSO online information. Viewed at: http://www.gso.gov.vn  [March 2013]. 
4.44.  According to the FAO Global Aquaculture Production database, aquaculture production in 
Viet Nam was valued at US$5.7 million in 2011. Most  production is of catfish and shrimps/prawns 
(Table 4.5). 
Table 4.5 Aquaculture production, 2005-11 
  2005 2006 2007 2008 2009 2010 2011 
Aquaculture US$ million 2,946 3,334 4,047 4,624 4,820 5,168 5,699 
 '000 tonnes 1,467 1,694 2,123 2,498 2,590 2,707 3,053 
o f  w h i c h          
 Pangas catfish nei US$ million 564 780 1,275 1,875 1,575 1,710 1,727 
 '000 tonnes 376 520 850 1,250 1,050 1,140 1,151 
 Giant tiger prawn US$ million 709 600 680 1298 1264 1332 1,200 
 '000 tonnes 177 150 170 325 306 333 300 
 Whiteleg shrimp US$ million 400 600 612 154 144 547 748 
 '000 tonnes 100 150 153 39 36 137 187 
Source: FAO Global Aquaculture Production online query. Viewed at: 
http://www.fao.org/fishery/statistics/global-aquaculture-production/en  [March 2013]. WT/TPR/S/287 • Viet Nam 
 
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  4.45.  According to the FAO Global Capture Production database, the capture subsector has 
increased steadily over the past few years, from nearly 2 million tonnes in 2005 to 2.5 million in 2011. The database also reflects national statisti cs, showing that inland capture declined from a 
peak of 244,000 tonnes in 2001 to 203,000 in 2011. Most of the catch is unidentified fish 
(Table 4.6). 
Table 4.6 Capture fishing production 2005-11 
('000 tonnes) 
 2005 2006 2007 2008 2009 2010 2011 
Total capture 1,988 2,027 2,075 2,136 2,281 2,414 2,503 
of which        
Inland waters 197 203 198 190 189 194 203 
of which        
 Freshwater fish not identified 188 193 187 179 177 183 190 
Marine areas 1,791 1,824 1,876 1,947 2,092 2,220 2,300 
of which        
 Marine fish not identified 1,314 1,343 1,378 1,425 1,529 1,620 1,663 
 Squids, cuttlefish, octopuses 197 200 212 228 243 260 272 
 Molluscs 261 264 277 299 216 340 356 
Source: FAO Global Capture Production online query. Viewed at: http://www.fao.org/fishery/statistics/global-
capture-production/en  [March 2013]. 
4.46.  The fisheries sector in Viet Nam is based on small-scale producers, with few large vessels. 
According to the Directorate of Fisheries, there are about 130,000 fishing boats (with and without 
engines); about 28,424 are offshore vessels, an increase of about 38% since 2005.22 
4.47.  Under Decree No 33/2010/ND-CP, the sea areas of Viet Nam are divided into coastal, 
inshore, and offshore areas. Motor vessels with main engine capacity of 90 hp or more may 
operate in the offshore area only; vessels with main engine capacity of between 20 and 90 hp may 
operate in the offshore and inshore areas only; and vessels with main engine capacity of less than 20 hp and unmotorized vessels may operate in the coastal area of the provinces where they are 
registered. In practice, most fishing boats are less than 45 hp, but the number of larger vessels 
has been increasing: in 2007, 15.8% of vessels ha d an engine capacity of more than 90 hp, up 
from only 1.4% in 1997. 
4.48.  Although the fish capture subsector is ba sed on small-scale fishing vessels operating in 
shallow waters, it has been reported that, since 1986, catch has exceeded the maximum 
sustainable yield.
23  
4.49.  In 2009, a number of problems were identified  that affected the sustainability of fishing in 
Viet Nam: 
 a lot of fishing gear did not comply with regulations, such as mesh size, leading to high 
discards and depletion of juveniles; 
 inappropriate fishing techniques, such as explosives and chemicals were being used; 
 overcapacity in inshore waters; and 
 pollution by fishing boats and waste management in fishing villages.24 
4.3.2  Trade 
4.50.  Viet Nam has a trade surplus in fisheries products with exports of US$6,255 million and 
imports of US$577 million in 2011.25 Both exports and imports have increased considerably in 
recent years, rising annually by 12% and 19%, respectively, from 2004 to 2011. Until 2011, the 
main exports were frozen shrimps and prawns  (HS 030613); although, together with prepared 
                                               
22 General Statistics Office (2011), p. 403, Table 182. 
23 Pomeroy (2009). 
24 Pomeroy, Nguyen, and Thong (2009), p. 424. 
25 For the purposes of this Review, fish products are defined as HS2002 Headings 0208.40, 03, 0511.91, 
1504, 1603, 1604, 1605, and 2301.20. WT/TPR/S/287 • Viet Nam 
 
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  preserved shrimps and prawns (HS 030613 plus HS 160520), they were still the biggest export in 
2011, exports of frozen fish fillets (HS 030420) ha d increased faster and were the single biggest 
export at the HS six-digit level (Table 4.7). The Harmonized Commodity Description and Coding System of tariff nomenclature does not identify wh at species of fish are used for fish fillets but 
data from the Vietnam Association of Seafood Exporters and Producers indicates that most fillets 
are from catfish.
26 The main market for exports is the United States, followed by Spain, Japan, 
Germany, and Mexico.  
4.51.  Although the value of fish imports has been increasing, reaching US$577 million in 2010, it 
is small compared with exports, and most imports are for transformation and re-export. 
Table 4.7 Exports and imports of fisheries products, 2004-11 
HS 
2002   2004  2005  2006  2007  2008 2009 2010  2011  
Exports  
 Total US$ million  2,749  2,754  3,374  3,786  4,555  4,305  5,118  6,255  
030420 Fish fillets, frozen  '000 tonnes  72  121  251  258  399  262  380  432  
US$ million 385  385  800  1,076  1,586  1,403  1,535  1,992  
030613 Shrimps & prawns, 
frozen '000 tonnes  168  184  200  214  197  192  252  272  
US$ million 1,129  1,129  1,226  1,372  1,301  1,278  1,546  1,689  
160520 Shrimps & prawns, 
prepd./presvd. '000 tonnes  5  12  20  23  37  43  67  88  
US$ million 78  78  135  163  268  330  523  707  
030490 Fish meat other than 
fillets, frozen '000 tonnes  34  65  79  63  96  57  91  97  
US$ million 124  124  150  168  268  190  279  347  
030749 Cuttle fish & squid  '000 tonnes  44  76  86  98  91  54  94  109  
US$ million 181  181  205  245  257  199  261  319  
030759 Octopus other than 
live/fresh/chilled '000 tonnes  8  2  23  24  24  25  19  32  
US$ million 6  6  94  91  112  124  98  166  
Imports   
 Total US$ million  172  203  214  260  323  302  369  577  
30613 Shrimps & prawns, 
frozen '000 tonnes  11  7  6  6  9  6  7  21  
US$ million 73  46  40  41  57  41  45  137  
30379 Fish, n.e.s., frozen 
(excl. fillets, etc) '000 tonnes  13  14  10  16  27  24  30  44  
US$ million 23  26  19  28  50  46  59  82  
30349 Tunas, frozen (excl. 
fillets etc) '000 tonnes  2  11  18  31  32  16  24  36  
US$ million 3  15  25  43  52  32  48  53  
30343 Skipjack/stripe-bellied 
bonito, frozen '000 tonnes  2  4  9  11  12  14  28  37  
US$ million 2  4  8  11  15  23  34  44  
30749 Cuttle fish & squid  '000 tonnes  1  3  4  5  4  3  5  8  
US$ million 4  7  11  15  11  11  14  26  
Source: UNSD Comtrade. Viewed at: http://comtrade.un.org/  [May 2013]. 
4.52.  Viet Nam has about 567 fish processing plants with total processing capacity of about 
2.5 million tonnes per year. However, production is below total capacity levels even though most 
imports are for processing and re-export.27  
4.3.3  Policies 4.53.  The Ministry of Agriculture and Rural Deve lopment is responsible for fisheries policies, the 
development of draft legislation, and implementing of existing legislation. Within the Ministry, the 
Directorate of Fisheries is responsible for advising the Minister on policy development as well as implementation of established policy and laws. The Directorate is divided into various departments 
including: aquaculture; capture and resource prot ection; fisheries resources surveillance; planning 
and finance, science, technology and international cooperation; and legal and inspection. Also under the Directorate are the Viet Nam Institute of  Fisheries Economics and Planning (VIFEP), the 
Fisheries Information Centre (FICen), and th e Testing and Verification Center (TVC). 
4.54.  The Vietnam Association of Seafood Exporters and Producers (VASEP, established in 1998), 
the Vietnam Fishery Society (VINAFIS, 2000), and the Vietnam Pangasius Association (VN Pangasius, 2013) were established to support the fisheries sector.   
                                               
26 Vietnam Association of Seafood Exporters an d Producers online information. Viewed at: 
http://www.vasep.com.vn/Thong-ke-thuy-san/123_23971/Xuat-khau-thuy-san-Viet-Nam-nam-2012.htm  
[March 2013]. 
27 Tuong et al. (2009). WT/TPR/S/287 • Viet Nam 
 
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  4.55.  Viet Nam is a member of several international and regional intergovernmental organizations 
involved in fisheries and aquaculture, including the FAO and the Asia-Pacific Fishery Commission (APFIC), which is an FAO Article XIV Regional Fisheries Body. Viet Nam is also a member of the Southeast Asian Fisheries Development Center (SEAFDEC), the Network of Aquaculture Centres in 
Asia-Pacific (NACA), and the Mekong River Commission (MRC). It is also a cooperating 
non-member of the Western and Central Pacific Fisheries Commission (WCPFC). 
4.56.  Fisheries policy is included in the Master Plan for the Production Development of Agriculture 
to 2010 and a Vision Toward 2030 (Prime Minister's Decision 124/QD-TTg of 2 February 2012). 
The Plan sets objectives for improving quality and increasing aquaculture production, partly through combining it with rice production in one-crop per season areas. For the capture subsector, the emphasis in the Plan is on resource management and improvement of infrastructure; similarly, 
for processing, the Plan focusses on updating and improving facilities and increasing value added. 
Increasing capacity is limited to catfish processing plants in one region (Cuu Long River Delta). 
4.57.  The principle legislation on fisheries is the Law of Fisheries (No. 17/2003/QH11) along with 
Decree No. 53/2012/ND-CP which amended a number of earlier decrees on fisheries, including 
Decree No. 59/2005/ND-CP on aquatic resources production, No. 33/2010/ND-CP on fishing activities in marine areas by Vietnamese entities, No. 32/2010/ND-CP on fishery activities by 
foreign ships, and Decree 52/2010/ND-CP on imports of fishing vessels. The Law of Fisheries 
covers a broad range of fishing-related issues incl uding marine fishing, aquaculture, conservation, 
ports, markets, processing, domestic and international trade, quality, and international cooperation. 
4.58.  Under the Law, fisheries resources are owne d by the people and managed by the State with 
exploitation rights set out in legislation. The Law emphasises the role of regional authorities in resource management and sustainable development of fisheries and aquaculture by providing, 
inter alia , for: 
 effort and gear restrictions (including closed areas, seasonal closures, size limits, annual 
allowable catches, and prohibited species); 
 assessments of fisheries resources; 
 requirements that fishing vessels larger than 0.5 tonnes have licences indicating, 
inter alia , the type of gear, allowed fishing times, and allowed fishing grounds. It also 
provides for the conditions under which licences may be withdrawn; and 
 requirements to keep fishing reports and logbooks. 
4.59.  The Law restricts aquaculture to land and marine areas allocated and leased for that 
purpose by the local authorities, although the leas e of marine areas for aquaculture should be free 
of charge for local residents. 
4.60.  Prime Minister's Decision on the progra mme on protection and development of fisheries 
resources until 2020 (No. 188/QD–TTg of 13 February 2012) sets out several specific objectives 
related to resource protection, including (for completion by 2015):  
 a database on aquatic resources, to make forecasting of resources, fishing grounds, and 
fishing seasons part of the fisheries management; 
 10 marine conservation zones and 19 inland water area conservation zones and, by 
2020, to complete the designation of conservation zones and include them in the marine 
and inland water conservation master plan; and 
 to have designated no-fish zones and zones subject to seasonal fishing restrictions. 
4.61.  The Decision also sets objectives to improve research into fisheries resources and to 
improve enforcement of laws as well as improving stocks and rehabilitating damaged areas. A committee was established for this programme under Decision No. 2322/QD-BNN-TCTS of 
26 September 2012.  WT/TPR/S/287 • Viet Nam 
 
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  4.62.  According to a 2009 report, the Government of Viet Nam had not implemented measures to 
cope with overfishing and destructive fishing in the country, and overfishing remained a serious problem particularly excessive catches of crustaceans, cutter-fish, and octopus.
28 However, the 
authorities pointed out that under Prime Minister's Directive No. 01/1998/CT-TTg the use of 
explosives, electrocution, and toxins to exploit aquatic resources was strictly banned and the 
Ministry of Fisheries (now the Ministry of Agricu lture and Rural Development), in coordination with 
other ministries, established a Central Steering Committee to implement the ban. Since then the 
Committee has issued a number of documents on the implementation of Directive 
No. 01/1998/CT-TTg, including Document No. 481CV/BVNL of 18 February 1998, which requested the provincial and city peoples' committees to  implement the Directive and establish local 
committees for this purpose. These committees include representatives of the fisheries sector, 
public security, military, culture, and informatio n agencies. As of May 2013, 43 of the 63 provinces 
and cities with seas and rivers had established steering committees. The Department of Fisheries Resources Surveillance was established in January 2013 by Decree No. 102/2012/ND-CP under the 
Directorate of Fisheries. 
4.63.  Under the Law on Resources Tax No. 45/2009/QH12 of 25 November 2009, natural aquatic 
products are subject to royalties of 1% to 5% of the sale price, except for pearls, abalone, and sea 
cucumbers, for which the royalties rate is 6-10%. However, the same Law also exempts natural 
aquatic resources from royalties. 
4.64.  Several support programmes have been or are being implemented to support the fisheries 
sector including: 
 in response to higher fuel prices, Government Decision No. 289/TQ-TTg of March 2008 
provided temporary support to a number of sectors, including fuel subsidies for fishing vessels. Total spending on the programme was ₫1,600 billion; 
 Prime Minister's Decision No. 137/2007/QD-TTg of August 2007 on organizing information 
for preventing natural disasters at sea included a project to build an information system on the management of marine fisheries. The fi rst phase of this project started in 2009 to 
provide fishers and management agencies with weather and oceanographic information. 
The second phase, due to start in 2010, wa s to introduce a GPS-based vessel position 
monitoring system and a ship-to-shore communication system. The total amount required for the first phase was ₫92.42 billion, of which ₫34.8 billion was from the state budget; 
and 
 for the 2006-2010 phase of the programme for fisheries ports, landing sites, and fish 
markets, the Ministry of Fisheries (now the Mi nistry of Agriculture and Rural Development) 
allocated ₫1,498 billion. 
4.4  Mining and Energy 4.4.1  Mining 
4.65.  Viet Nam is endowed with abundant, divers e, and unexploited mineral resources, sufficient 
for the establishment and development of larg e-scale, sustainable, and high-tech mining 
industries. In 2010, it produced about 2%, 1.5%, an d 1.1% of the world's tin, cement, and barite, 
respectively. As well as offshore oil and gas (section 4.4.2.2), it holds some of the world’s largest 
reserves of bauxite (7% of world reserves) and tungsten (7% of world production in 2013) and 
significant deposits of rare earths (see below), titanium, and iron ore.
29 In 2012, mining and 
quarrying (including mineral fuels) accounted fo r 12.6% of GDP and 0.6% of total employment 
(Table 1.2), and in 2011, 0.4% (0.5% in 2007, excluding mineral fuels) of total merchandise 
exports (Table A1.1). It follows that labour pr oductivity, which according to GSO data almost 
tripled in the period 2008-11, is roughly 20 times (or 7 times according to Table 1.2 data) the 
level in the rest of the economy, presumably due in large part to its high capital intensity.30 All 
                                               
28 Tuong et al. (2009). 
29 Other mineral resources include copper, gold, nickel, zinc, tin, lead, chromite and manganese (U.S. 
Department of Interior/U.S. Geological Survey, 2012;  and Masan Group online information. Viewed at: 
http://www.masangr oup.com/en/vietnam ). 
30 General Statistics Office of Vietnam (2011), Table 20. WT/TPR/S/287 • Viet Nam 
 
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  mines belong to the State and its enterprises in natural resources exploitation. Foreign-invested 
enterprises still account for the largest part of total mining output, although their share dropped steadily from 64.7% to 60.2% in 2007-10; duri ng the same period the share of state-owned 
enterprises fell to 23.6% (25.5% in 2007) while that of domestic private enterprises rose to 16.1% 
(9.7% in 2007). In 2010, there were 84 SOEs operating in the sector (80 in 2007); their activities 
provided 58% (3.3% in 2007) of total government revenue from royalties, export taxes, and fees for mines exploitation, which peaked at ₫98.7 trillion in 2008 before dropping to ₫35.7 trillion in 
2010, below the 2007 level. 
4.66.  Mining constitutes a key activity for attaining sustainable development targets and 
objectives, due to its linkage to related industries, such as electricity, metallurgy, chemicals, fertilizers, and construction materials. In li ne with the 2010 Mineral Law (see below), in 2011 
Viet Nam issued several key pieces of legislation in connection with the government's national 
mineral resources strategy to 2020 with a vision  to 2030, and an action plan for the strategic 
orientation of mineral resources and their exploitation.
31 Under Decision No. 2427 of 2011, the 
national strategy provides, inter alia,  for: non-renewable mineral resources to be managed, 
protected, exploited and used rationally; survey and evaluation of mineral resources to be implemented in advance to permit efficient planning ; exploration and mining to be associated with 
the potential for processing and use of each type of  mineral, in light of the needs of all economic 
sectors; for large-scale deposits of minerals, only processed products with high economic value to be exported; and international cooperation to be utilized to access scientific knowledge and environmentally friendly technologies.
32 The strategy focuses on: coal, uranium, metals, 
non-metals, construction materials, natural thermal water, mineral water, oil, and gas. It also 
provides guidelines in several specific areas of regulation, i.e. management and planning, science and technology, finance, and environmental prot ection. The strategy envisages adjusting the 
financial policies governing the export of minerals in line with its objectives.  
4.67.  To cope with shortcomings in technology, production scale, labour efficiency, research, and 
management and investment, the authorities have  undertaken legal and administrative actions 
aimed at attracting more domestic and foreign in vestment, accelerating the change of state-owned 
enterprises to private status, and modernizing technology.
33 Furthermore, a 2011 action plan set 
out the tasks of diffusion of mining legislation and completion of the legal system on mining.34 
Reportedly, while the recent issue of new legal instruments (see below) demonstrates efforts to 
draft stricter provisions on exploiting and preserving mineral resources, they imply that investors 
in the mining sector could face greater regulatory obstacles.35  
4.68.  In November 2010, a new Mineral Law replaced the 1996 law (as amended in 2005) and 
became fully effective on 1 July 2011.36 The 2010 Mineral Law protects unexploited minerals, 
regulates geological surveys of mineral resource s, regulates mineral exploration and mining, and 
regulates the management of minerals nationwide . It introduced changes for mineral exploration 
and exploitation by, inter alia,  reforming the process for acquiring mining licences and requiring 
financial commitments on the part of the licence holder; previous prerequisites for the acquisition of mining licences were changed or eliminated (e.g. requirement for a prospecting licence). At present, the licence holder must have at least 50% equity in the total proposed capital investment 
for the implementation of an exploration project, and at least 30% of the total investment capital 
of the mining project. The Law introduced new provisions regarding the auctioning of mining 
rights, and the fees involved in the acquisition of mining rights. The State is in charge of collecting 
all fees related to the acquisition of mining licences, and rates are based on the quality and type of 
minerals to be mined, mining conditions, reserv es, and value of the property. Under the 2010 Law, 
the eligible interested party is required to have written permission only from the provincial 
government in order to conduct field surveys and collect surface samples for exploration purposes 
at the proposed area. 
                                               
31 Politburo Resolution No. 02-NQ/TW, 25 April 2011; Decision No. 2427/QD-TTg, 22 December 2011; 
Resolution No. 103/NQ-CP, 22 December 2011. 
32 For more information about the strategy see Hawkins and Szotyory-Grove (2012). 
33 Vietrade  factsheet, "Investment opportunities in Mineral exploitation", 30 October 2011. Viewed at: 
http://www.vietrade.gov.vn/en/index.php?option=com_content&view=article&id=974:investment-
opportunities-in-mineral-exploitation&catid=272:investment-opportunities&Itemid=250  [31 August 2012]. 
34 Resolution No. 103/NQ-CP, 22 December 2011. 
35 Hawkins and Szotyory-Grove (2012). 
36 U.S. Department of Interior/U.S. Geological Survey (2012). WT/TPR/S/287 • Viet Nam 
 
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  4.69.  A new Law on Royalties (2009) and its implementing texts were passed during 2009-10, 
and became effective on 1 July 2010, thus making substantial amendments to the relevant provisions.
37 This change was aimed at restraining rampant mineral exploitation activities, raising 
more local government revenue for environmental protection and infrastructure improvement, and 
encouraging more rational, efficient, and effect ive mineral exploitation. The 2009 Law allows for a 
much higher range (tax frame) of royalty rates to be used as a basis for fixing/choosing the royalties applied for certain period of time; this ta x frame of rates is on average three times higher 
than the previous rates depending on the types of natural resources.
38 Consequently, the change 
has led to higher royalty rates; for example, the royalty rate for gold increased from 9% to 15%, 
and for iron and manganese from the 7% to 11%, whereas exploitation of more than 150,000 barrels of oil per day is charged a royalty of either 23% (for "encouraged" investment 
projects as defined in the Petroleum Law) or 29% instead of the previous 22% (for "encouraged" 
investment projects) or 27% (section 3.4.1, Table 3.8). Furthermore, in 2010 Decree 50 introduced a new method for calculating the taxable price, i.e. the taxable price is the selling price 
of the natural resource by the entity exploiting  it, excluding VAT. The taxable price for exported 
natural resources is now the f.o.b. export price, while in the past the valuation basis was the price 
paid at the place of exploitation; the current meth od raised the royalty amount because all costs, 
including for transport, concentrating, refining, and insurance are subject to the tax. The 
authorities indicated that royalties are levied at the same effective rates on exported minerals and those used domestically. Royalties revenue rose from ₫26.3 billion (including ₫22.1 billion from 
crude oil) in 2010 to ₫38.4 billion ( ₫31.5 billion from crude oil) in 2011 and ₫32 billion 
(₫24.3 billion from crude oil) in 2012.  
4.70.  Certain production and export restrictions (see below) have been implemented under the 
2012 Directive 02 on strengthening State manageme nt of exploration, exploitation, processing, 
usage and export of minerals.
39 No further licences are to be granted for the exploration or 
exploitation of bauxite and production of alumina until the Tan Rai and Nhan Co mines for production of alumina become operational and achieve high socio-economic value. No new 
exploration licences are to be issued in the Northe rn provinces. The exploration and exploitation of 
gold must use in-depth processing and modern techniques that cause no harm to the environment. New licences for exploitation of placer gold are prohibited. According to the authorities, to overcome the drawbacks of gold processing and tr ading, and to prevent the impact of gold price 
volatility on the exchange and inflation rates, as  well as on monetary and macroeconomic policies, 
in April 2012 the State Bank of Viet Nam (SBV) took measures to organize and restructure the gold market.
40 Those measures included the introduction of the Government's exclusive right to 
produce bullion gold as well as to import and export material gold; private enterprises were 
expected to cease their production and only proce ss bullion gold for SBV. Exploitation of coal and 
minerals used to manufacture cement is al lowed, subject to approved master plans41; no further 
information on these plans was available from the authorities.  
4.71.  Action is being taken to exploit Viet Nam's large reserves of rare earth as the shortage of 
these metals becomes more apparent worldwide.42 In October 2011, Viet Nam and Japan signed 
the Cooperation Arrangement on Rare Earth, wher eby businesses from both parties would jointly 
explore, exploit, and process rare earth at Do ng Pao, Lai Chau province. A memorandum of 
                                               
37 Law on Royalties, 25 November 2009 (in force on 1 July 2010); National Assembly Resolution 
928/2010/UBTVQH12, 19 April 2010 (in force on 1 July 2010); Decree 50/2010/ND-CP, 14 May 2010 (in force on 1 July 2010); and European Commission (2011). 
38 For example, the range of royalty rates increased for: gold, from 2-6% to 9-25%; iron & manganese, 
from 1-5% to 7-20%; crude oil, from 6-25% to 6-40% ; and natural mineral wate r, from 0-5% to 8-10% 
(European Commission, 2011). 
39 Directive 02/CT-TTg, 9 January 2012. 
40 At present eight enterprises ensure the production of bullion gold. Prior to the 2012 changes there 
were no provisions on the regulation and control over bullion gold operations (Decrees No. 174/1999/ND-CP, 9 December 1999, and No. 24/2012/ND-CP, 3 April 2012). 
41 According to the private sector it seems that mast er plans set for sectors provide guidelines and often 
set quantitative targets that are rarely met, often due to, inter alia,  the lack of specific domestic support 
measures for attaining them. 
42 Viet Nam is among the few countries in the world holding rare earth reserves.  Rare earths include 
17 minerals used for many modern technologies like hybr id cars, weapons, flat-scree n TVs, mobile phones, and 
mercury-vapour lights ( Viêt Nam News , "VN inks rare earth agreement with Japan", 18 May 2012. Viewed at: 
http://vietnamnews.vnagency.com.vn/Economy/224887/vn-inks-rare-earth-agreement-with-japan.html 
[30 August 2012]; and RT News , "Rare earth: Japan and Vietnam challe nge China's monopoly", 20 June 2012. 
Viewed at: http://rt.com/business/news/china-rare-metals-rivals-269/ ). WT/TPR/S/287 • Viet Nam 
 
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  understanding on mining and processing rare earth was signed with Japan in May 2012; it involves 
research and setting up a mine with a capacity of 10,000 tonnes a year, and the establishment of a joint venture. Prior to this development there was a project on "Basic geological investigation on rare-earth elements associating with gold-copper-iron oxide mineralization in Lao Cai, Yen Bai and 
Lai Chau Provinces, Vietnam" under the Department Of Geology and Minerals of Viet Nam (DGMV) 
in cooperation with the Japanese Oil, Gas and Metals National Corporation (JOGMEC).
43  
4.72.  Between 2007 and 2012, average applied MFN tariff protection for ores, slag, and ash 
(HS26) increased slightly, from 3.5% to 3.6%, while rates for mineral fuels and oils bituminous 
substance, and mineral waxes (HS27) dropped considerably (Table A3.1). Under Decision 
No. 29/2008/QD-BTC (19 May 2008), import duty on  gold materials (HS 7108) increased from 
0.5% to 1%. The Government encourages minerals exports as long as quality, tracing, and 
domestic needs requirements are met.44 Since January 2012, exports of raw, unprocessed 
minerals have been suspended under Directive 02/CT-TTg45; and as from 1 July 2012, the export 
of unprocessed titanium ore must be approved by  the Prime Minister. To prevent future shortage, 
exports of eight types of minerals were prohibited as of 6 November 2012; at the same time, 
criteria and conditions were set for exports of building materials such as sand, crushed sand, limestone as raw materials for the production of buil ding glass, stone tiles, stone beads, quartzite, 
and pyrophuyllite.
46 Export taxes on certain mineral products were lowered as of 20 May 2010 
(section 3.3.2, Table A3.5).47 However, Viet Nam increased export taxes on iron ore and 
concentrates (including roasted iron pyrites), from 20% to 30% (24 September 2010); on apatite, from 7% to 10% (fine-grained ores) and 15% (other) (11 October 2010); and certain ilmonite ore 
and concentrates, from 20% to 30% (27 October 2010). Circular 157/2011/TT-BTC enacted a list 
of 87 mineral products such as iron ores, metal scraps, and various kinds of monumental or building stones, subject to export taxes effective from 1 January 2012
48; 16 new products have 
been added to the list of products subject to export  tax. The authorities indicated that, in line with 
WTO accession commitments, the export taxes on eight categories of ferrous and non-ferrous scrap metals were lowered from 34%–45% to 17%–22% as of 1 January 2012 (section 3.3.2, 
Table A3.5).
49 Export bans and export taxes constitute assistance to domestic down-stream 
processing activities. 
4.73.  The Ministry of Natural Resources and En vironment oversees and coordinates (with other 
ministries) the preparation of the mineral strategy , subject to the Prime Minister's approval. All 
mining projects must be submitted to the Appraisa l Council consisting of the Ministry of Industry 
and Trade (MOIT), the Ministry of Construction, and the relevant provincial or municipal People's Committee.
50 Only projects involving advanced and environmentally friendly techniques are 
approved. All mining, oil, and gas projects require the Prime Minister's approval, regardless of 
                                               
43 Coordinating Committee for Geos cience Programmes in East and Southeast Asia (CCOP) document 
CCOP-48AS/3-xx, "Member Country  Report of Vietnam", 48th CCOP Annual Session 13-17 November 2011, 
Bangkok, Thailand. Viewed at: http://www.dgmv.gov.vn/default_en.aspx?tabid=165&ItemID=3188 . 
44 The authorities indicated that under Decree No.12 of 2006 mining is a "conditional" business with 
source and quality standards allowing illegally exploited minerals to be traced and restricted (MOIT Circular 
No. 41/2012/TT-BCT, 24 December 2012. Viewed at: http://luatkhaiphong.com/V an-ban-Tieng-Anh/Circular-
No.-41/2012/TT-BCT-dated-December-24-2012-7389.html ). 
45 During its WTO accession procedure, Viet Nam indicated that although the State could limit the 
exportation of raw minerals and conc entrates, minerals that met the qu ality requirements and conditions 
stipulated in the Ministry of Industry Circular No. 04 of 2 August 2005 in 2005-10 would be allowed for exportation; these conditions were aimed at preventing the illegal exploitation, and subsequent exportation, of 
minerals. WTO document WT/ACC/VNM/48, 27 October 2006. 
46 This export prohibition covers: limestone; additive  minerals as raw materi als for cement; building 
stones of mines in the provinces of South East and South West; cubes; sandy saline; construction sand (natural sand); cobbles and gravel; an d feldspar (agar) and clay from hills (Ministry of Construction Circular 
04/2012/TT – BXD of September 2012 cited in Vietnam Economic Forum,  "Eight types of minerals forbidden of 
exporting", 27 September 2012. Viewed at: http://vef.vn/2012-09-27-se-cam-x uat-khau-8-loa i-khoang-san  
[26 November 2012]). 
47 Global Trade Alert online information. Viewed at: 
http://www.globaltradealert.org/measure?tid=All&tid_1=500& tid_3=All . 
48 MOF Circular 157/2011/TT-BTC, 14 November 2011; and European Commission (2012). 
49 MOF Circular 157/2011/TT-BTC, 14 November 2011. 
50 Directive 02/CT-TTg, 9 January 2012. WT/TPR/S/287 • Viet Nam 
 
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  capital source and size, as do projects with capital in excess of ₫1.5 trillion (approximately 
US$81 million) in mineral processing and metallurgy.51 
4.4.2  Energy 4.74.  Viet Nam's ability to continue expanding its economy and attain its poverty-reduction 
targets is directly linked to its ability to access energy and address power shortages.
52 In 2010, 
35% of Viet Nam's domestic energy production came from coal, with oil (23%), natural gas (12%), hydropower (9%), and non-commercial ener gy (21%) supplying the remainder; imported 
energy accounts for 19% of primary energy supply.
53 Final energy consumption in 2010 was: 
35.6% petroleum products, 29.1% non-commercial energy, 19.6% coal, 14.8% electricity and 1% gas. Industry accounts for 39.9% of final energy consumption. The energy sector is still heavily 
regulated and dominated by state-owned monopolies (sections 4.4.2.1 and 4.4.2.2). Between 
October 1993 and December 2011, the energy sector was the second major beneficiary (after 
transport and ICT) of Asian Development Bank (ADB) concessional sovereign loans; it accounted for 10 projects (out of 114) and 22.7% of the financing made available by the ADB.
54  
4.75.  Despite Viet Nam's great potential, there has been no significant commercial production 
from renewable energy sources (i.e., geothermal, solar, wind, tidal, wood or waste) so far, as production costs are seemingly too high to be attractive for the state-owned single buyer, 
Electricity of Viet Nam Group (EVN, section 4.4.2.1).
55 In recent years, the authorities have 
become more aware and involved in renewable ener gy and energy efficiency development in order 
to contribute to national energy security and to cope with future electricity shortages while 
diminishing carbon fuel dependence. In 2007, Pr ime Minister's Decision No. 130 provided for tax 
breaks, land-leasing preference, and investment credits for a Clean Development Mechanism 
(CDM) also covering wind-power plants, as part of  a global UN initiative; the Government indicated 
its intention to subsidize some CDM projects through the Vietnam Environmental Protection 
Fund.56 A June 2010 Law on Energy Saving and Efficiency (which entered into force on 
1 January 2011) provides for incentives for energy efficiency and conservation as well as cleaner production measures, and new environmental tax measures to promote energy efficiency and 
renewable energy indirectly by introducing taxes on oil, gas, and coal, and specific pollutants.
57 A 
Prime Minister Decision was passed in Septem ber 2011, promulgating the list of devices and 
equipment subject to energy labelling, the ap plication of the minimum energy efficiency 
requirements, and the relevant implementation roadmap until 2014.58 MOIT Circulars regulating 
the training and issuing of certificates for ener gy administration and energy auditing, energy 
labelling for means and equipment of energy utilization, the planning and report of the implementation schedule for energy saving and efficiency, and the implementation of energy 
auditing were issued in 2011 and 2012.
59 An October 2012 National Targeted Programme on 
Energy Saving and Efficiency, and phase 2012-2015, budgeted at ₫930 billion, provides for 
wide-ranging action involving several other activi ties (e.g. steel, cement, textiles and apparel, 
construction, transportation) aimed at achieving savings of 5%-8% of the total energy 
                                               
51 U.S. Commercial Service (2011). 
52 Viet Nam's rapidly growing industry and services sector have help ed drive spikes in energy demand in 
recent years, as have the country's emerging midd le class population. Nevertheless, 80% of the rural 
population still relies on non-commercial biomass, such as wood and rice husks, as an  important fuel source for 
cooking and other purposes (Asian Development Bank, 2011; and Working Group of Economic and Commercial 
Counsellors of the EU, 2011). 
53 Non-commercial (traditional) energy sources in clude fuels such as firewood, cattle dung, and 
agricultural wastes, which are traditionally gathered, and not bought; they are used especially in rural 
households (Institute of Energy, 2012). 
54 IMF (2012). 
55 Pricewaterhouse Coopers (2008); and Working Group of Economic and Commercial Counsellors of the 
EU (2011). 
56 EIU (2012d),  Energy - Vietnam . 
57 Law on Energy Saving and Efficiency, 17 June 2010;  and NL Agency online in formation, "Vietnam - 
Sustainable Energy sector: Energy Efficiency (EE) & Renewable Energy (RE)", (undated). Viewed at: 
www.cleantechholland.nl/dsresource?objectid=18857&type=org . 
58 The items subject to these requirements are hous ehold appliances, office and commercial equipment, 
industrial equipment, and means of tr ansport, including passenger cars of seven seats or less (Prime Minister 
Decision No. 51/2011/QD-TTg of 12 September 2011). 
59 MOIT Circular No. 39/2011/TT-BCT, 28 October 2011; Circular No. 07/2012/TT-BCT, 4 April 2012; 
and Circular No. 09/2012/TT-BCT, 20 April 2012. WT/TPR/S/287 • Viet Nam 
 
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  consumption of the country.60 The MOIT has submitted to the Government projections to increase 
the share of non-hydro renewables (including wi nd power, geothermal power, solar power, and 
biofuels), in total primary commercial energy from around 2% to 3% in 2010, 5% in 2020, and 11% in 2050. In March 2011, MOIT was urged to complete policies to support wind projects and 
set up favourable conditions for investors. As a result, in 2012 regulations were issued on the 
mechanism for developing wind power, implementa tion of wind-power development projects, and 
samples of power sale-purchase contracts for wind-power projects.
61 Under the solar-power 
cooperation programme between France and Viet Nam, a solar station was installed in Ho Chi Minh 
City to provide electricity for the Gia La i, Quang Nam, and Binh Phuoc provinces.62 Following the 
passing of the Atomic Energy Law in June 2008, construction of two nuclear power plants was approved in 2009.
63 In 2010, the Russian Federation's Rosatom was awarded a contract to build 
Viet Nam's first nuclear power plant (Ninh Thuan 1) and put it into operation by 2020; and Japan 
was to build a second plant (Ninh Thuan 2) operational in 2021. Despite the Fukushima accident in Japan, the Government decided to continue with its nuclear power programme and put emphasis 
on serious safety considerations. The Viet Nam Atomic Energy Commission estimates that nuclear 
power could provide 15%-20% of the country's energy requirement by 2030.
64 No further relevant 
information on the progress of plans (e.g. stages, cost, and beneficiaries) was available from the 
authorities. 
4.4.2.1  Electricity 4.76.  Electricity is a restricted investment sector because of its significance to Viet Nam's 
socio-economic development; the Government has a very important role in operating the 
network.
65 Between 2007 and 2012 electricity consumption increased by about 75% to 
120.2 billion kWh. In 2012, the majority of Viet Nam's electricity supply was delivered by hydro-power plants, which accounted for 43.9% of total electricity consumption, followed by gas 
(34.5%), coal (18.9%), and oil (0.5%); the remaining 2.2% consisted of electricity imports, a 
costly option, that were cut by about 52.3% compared to the 2010 peak year level.
66 In 2011, 
Viet Nam imported about 5 billion kWh from China, accounting for 4.6% of domestic power 
consumption; it plans to import more electricity through its investment in several hydro-power 
plants in Lao (PDR) and Cambodia.67 Despite the rapid pace of growth in demand for power, with 
demand estimated to increase by an average of 12.3% a year in 2012-20, driven partly by rapid 
economic growth, mass migration to major cities, rising living standards and expansion of rural 
demand, the level of electricity consumption per head is expected to remain among the lowest in 
Asia.68 Between January and November 2010, electricity demand for industry and construction 
rose by 18.7% on a year-on-year basis, while the state-owned company EVN (see below) was only 
able to increase its electricity production by 14.5% year-on-year.69 Furthermore, transmission 
losses are high, and may range between 10% (as estimated by the EVN) and 20% (according to the World Bank) of total power output.
70 Reportedly, Viet Nam could face a serious power shortage 
if it fails to come up with increased power genera tion, since additions to the grid had reached only 
                                               
60 Prime Minister Decision 1427/Q Đ-TTg, 2 October 2012. Viewed at: http://tietkiemnangluong.com. 
vn/en/documents.detail.html?id=48  [24 October 2012]. 
61 Prime Minister Decision No. 37/2011/Q Đ-TTg, 29 June 2012, and MOIT Circular No. 32/2012/TT-BCT, 
12 November 2012. 
62 Low temperatures beneath Viet Nam's soil mean geothermal energy may generate only 200-400 MW 
by 2020 (Pricewaterhouse Coopers, 2008; and Working Group of Economic and Commercial Counsellors of the EU, 2011). 
63 U.S. Commercial Service (2011). 
64 EIU (2012d),  Energy - Vietnam . 
65 VnEconomy  special report "Forever following", 24 August 2010. Viewed at: 
http://news.vneconomy.vn/20100824114 222331P0C6/forever-following.htm  [31 August 2012]. 
66 Institute of Energy (2012). 
67 In October 2010, the state-owned Electricity of Viet Nam Group (EVN) signed purchase power 
agreements (PPAs) with two build-operate-transfer (BOT) hydropower plants in Lao PDR for importing 
electricity: the Xekaman 3 Hydropower plant (250 MW), and the Xekaman 1 (322 MW) ( Viêt Nam News,  "VN 
faces serious power shortage", 21 August 2012. Viewed at: http://vietnamnews.vnagency.com.vn/Economy/229006/vn-faces-serious-power-shortage.html  
[30 August 2012]). 
68 EIU (2012d), Energy - Vietnam . 
69 Working Group of Economic and Commercial Counsellors of the EU (2011). 
70 EIU (2012d),  Energy - Vietnam . WT/TPR/S/287 • Viet Nam 
 
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  69% of the target in the four years to 2010, due to lack of funding71, low power purchase prices by 
EVN72, red tape, increasing cost of fuel and othe r inputs, heavy reliance on rainfall-dependent 
hydro-power, difficulties in land acquisition, and lack of investor capability.73   
4.77.  Under the 2004 Law on Electricity (effective 1 July 2005) the State holds a monopoly in 
transmission/distribution and management of the national electricity system, and in the 
construction and operation of "large" electricity plants of socio-economic, defence or security significance.
74 The Law envisages a more competitive market for electricity provision and a road 
map for reform of the power sector. In 2006, Pr ime Minister Decision 26/2006/QD-TTg set out the 
plan for a competitive power market to be implemented under a three-phase plan with: the first phase (2005-14) focused on creating competition in power generation with a single buyer (EVN); the second phase (2015-22) introducing competition for bulk supply of electricity 
(wholesale), including supply directly to major industrial customers; and the final phase (after 
2022) involving competition at the retail level, i.e. allowing consumers to choose their supplier.
75 
Greater competition and private participation in en ergy distribution would eventually bring about 
an improvement in efficiency and a reduction in tr ansmission losses. In the short to medium term, 
the Government is keen to maintain a degree of control over retail electricity prices. 
4.78.  Viet Nam's power-generation, transmission and distribution sector is controlled by the 
state-owned Electricity of Viet Nam Group (EVN)76, which in 2010 and 2011 ran into losses of 
₫8.8 and ₫2.6 trillion, respectively. In 2010, EVN's facilities accounted for approximately 70% of 
Viet Nam's electricity production while the remainder was under the control of some 27 local and foreign independent power producers (IPPs).
77 Private participation in the industry is limited to the 
wholesale supply of electricity to EVN by privately owned power plants operating as IPPs selected 
                                               
71 In 2010, EVN announced that it was, once more, unable to implement necessary power projects due 
to a shortage of capital. This shortfall was estima ted at US$4-5 billion for the state-owned EVN, and 
US$10 billion for the whole electricity sector each year (Working Group of Economic and Commercial Counsellors of the EU, 2011; and VnEconomy  special report, "Forever following", 24 August 2010. Viewed at: 
http://news.vneconomy.vn/20100824114 222331P0C6/forever-following.htm [31 August 2012]). 
72 It appears that these purchase prices lead to lo w profit ratios and make it difficult for those who 
invest and operate in the sector to bo rrow from domestic and foreign banks. 
73 Viêt Nam News,  "VN faces serious power shortage", 21 August 2012. Viewed at: 
http://vietnamnews.vnagency.com.vn/Economy/229006/vn-faces-serious-power-shortage.html  
[30 August 2012]. 
74 In principle, power generators may be public or private; they are free to sell their output to all 
electricity purchasers on the wholesale market, under  long-term purchase agre ements or through spot 
dealings. The transmission company may charge a tran smission fee to be appr oved by the regulatory 
authorities. Similarly, distribution companies operate as regulated monopolies charging  a distribution fee to be 
approved by the regulatory authorities; they are oblig ed to allow licensed retailers access to their network.  
Wholesalers and retailers may be public or private and ha ve the right to use the transmission and distribution 
networks. Large electricity users are explicitly given the right to purchase electricity directly from generators 
and to connect to the transmission grid. However, the authorities indicated that, in practice, there are no private wholesalers or retailers, and the transmission fe e has never been set. Currently, EVN takes the role of 
single wholesaler. Power companies in the form of  independent accounting units under EVN manage the 
distribution network and electricity retail (Law on El ectricity, 3 December 2004; World Bank Investing Across 
Borders online database. Viewed at: http://iab.worldbank.org/Data/Explore%20Economies/Vietnam#/Investing-across-sectors ; EIU, 2012d, 
Energy - Vietnam ; and Asian Development Bank, 2011). 
75 The Viet Nam Competitive Generation Market (VCG M), was introduced on 1 July 2011 as a Mandatory 
Cost-Based Pool. After one-year trial operation, the VCGM was officially launched on 1 July 2012. While preparing for the next phase of the plan, the MOIT is co nducting a project for developing conceptual design for 
the electricity wholesales competitive market (WCM), which is to be introduced in 2014 (U.S. Commercial Service, 2011). 
76 The Viet Nam Electricity Group (EVN), which employs around 80,000 persons, was established in 
2006 in the reorganization of the Electricity of Viet Nam Corporation. EVN operates as a corporate group as defined in the 2005 Law on Enterprises; it holds at least 50% of equity in its subsidiaries. It also controls a 
number of professional units, including education institutions. EVN owns EVN Telecom, which holds a full telecommunication services licence, and An Binh Bank. EVN could become even more diversified as the Prime Minister’s decision that established th e group provides an impressive list of EVN's lines of business including all 
possible functions in the electricity industry, in addition  to hotels and tourism, production of consumer goods, 
telecommunications, finance and banking, road and wa ter transportation or exploitation of non-ore raw 
materials. No information on progress in implementing EVN's diversification plans was available from the authorities (UNCTAD, 2008). 
77 As EVN's self-financing and other sources of debt  financing can meet only about 66% of the total 
investment requirement, IPPs  are expected to carry a large portion of  the investment in the power generation 
sector, including those to be developed by foreign investors (U.S. Commercial Service, 2011). WT/TPR/S/287 • Viet Nam 
 
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  through domestic or international tender, and the in form of build-transfer (BT) or build-operate-
transfer (BOT) schemes; joint venture and shar eholding companies may also operate them.78 
Foreign companies have entered the market in BOT projects; in 2012 there were 8 foreign IPPs producing 2,316 MW (9% of total installed capacity) in Viet Nam
79 In 2012, 24 local IPPs 
hydro-power plants accounted for 1,924 MW or 7.5% of total installed capacity. Other players, 
such as the state-owned firms Vietnam National Coal-Mineral Industries Group (Vinacomin), and 
PetroVietnam (section 4.4.2.2), have installed capacity of 1,325 MW (5.2% of total installed 
capacity) and 2,715 MW (10.6%), respectively. Few IPP projects have been realized, seemingly 
due to obstacles, including EVN's low electricity purchase prices); legal and regulatory issues; the slow introduction of a transparent and competit ive electricity market (see below); and poor 
coordination among government agencies.
80 In response, the MOIT has taken radical measures in 
an effort to facilitate IPP development, including signing a financial advisory agreement in 2006 
with the World Bank's International Finance Corporation (IFC) aimed at increasing private participation in the power sector through open competitive bidding.  
4.79.  In line with the 2007 Power Developmen t Plan VI (covering 2006-15 with an overview 
extending to 2025), Viet Nam is constructing a series of new power plants to boost its capacity; it aims to develop about 135 power plants by 2015.
81 From November 2008, foreign partners have 
been allowed to work with local companies on 13 power projects that had been given back by EVN 
and were to be submitted to the Government for consideration in 2011. Currently 29 power plants are under construction, with total capacity of 13,766 MW (20 hydro-power plants and 9 thermal 
power plants).
82 
4.80.  The July 2011 National Power Development Plan for Period 2011-2020 with Perspective to 
2030 (Power Development Plan VII (PDPVII)) provides, inter alia,  for: development of a 
competitive electricity market with diversified forms of investment and electricity sale; 
continuation of the state monopoly in the power transmission network in order to ensure security 
of the national energy system; the electrificatio n programme in rural, mountainous, and island 
areas83; priority to the development of hydro-power plants, especially those having multi-purposes 
such as flood control, water supply, electricit y generation; and increasing renewable energy 
resources from 3.5% of total electricity production in 2010 to 4.5% in 2020 and 6.0% in 2030.84 
By 2020, total power plant capacity is planned to be about 75,000 MW: coal-fired power 48%; hydro-power 23.1%; gas-fired 16.5%; renewable energy 5.6%; nuclear 1.3%; and imported 
power 3.1%. The shares of coal-fired, renewabl e energy, nuclear, and imported power are to 
increase. It is questionable how environmentally friendly and CDM-consistent is the rise in the share of coal-fired plants. According to PDPVII th e total capital investment required for the power 
sector is about ₫929.7 trillion for 2011-20 (about US$4.88 billion/year on average), of which 
two thirds for power-generation development and the rest for power-network development.
85 The 
MOIT is set to remove subsidies and end EVN's monopoly as part of its long-term strategy for 
2020-50.86 
4.81.  Electricity pricing remains a significant issue. Despite the stated objective of creating a 
competitive market, the 2004 Law on Electricity does not give market operators full freedom to determine prices.
87 The Government strictly regulates electricity retail and wholesale prices, with 
                                               
78 UNCTAD (2008). 
79 Pricewaterhouse Coopers (2008). 
80 U.S. Commercial Service (2011). 
81 Working Group of Economic and Commercial Counsellors of the EU (2011). 
82 U.S. Commercial Service (2011). 
83 The rural electrification rate was 95% in 2010 and is expected to reach nearly 100% by 2020. 
84 Prime Minister Decision No. 1208/QD-TTg, 21 July 2011. Viewed at: http://www.ievn.com.vn/en/ 
index.php/thong-tin-tu-lieu/bai-viet/77-approval-of- the-national-power-development-plan-for-period-2011-
2020-with-perspective-to-2030  [24 October 2012]. 
85 The primary sources of finance for investment in  the power sector are from Official Development 
Assistance (ODA) grants and loans committed by such  international donors as the World Bank, the Asian 
Development Bank, bilateral funds fro m various foreign governments, an d funds from the Government. Other 
crucial sources of finance for the next  decade include foreign suppliers' credits and EVN's retained earnings 
(Pricewaterhouse Coopers, 2008). 
86 EIU (2012d), Energy - Vietnam . 
87 The Government has been hesitant about allowing market forces to determine electricity prices, as 
this would lead to a significant increase in the cost fo r firms and households, as well  as a knock-on effect on 
inflation, which has accelerated out of the authorities' control several times in the past few years (section 1.2) (EIU, 2012d  - Energy - Vietnam ). WT/TPR/S/287 • Viet Nam 
 
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  adjustments oscillating within a given range from a pre-determined price list recommended by 
MOIT and approved by the Prime Minister.88 The 2004 Law stipulates that a "reasonable price 
subsidy regime among various groups of customers" will remain in place in the future, though the 
nature of this regime is not defined.89 Average urban and rural residential rates are 
cross-subsidized by higher rates for industry and commerce.90 Peak and off-peak prices are 
differentiated only for industrial and commercial users. Power tariffs are now calculated and checked monthly against changes in foreign exchange, fuel prices, and electricity productivity.
91 In 
an effort to build a strong power market, be tween March 2009 and December 2012 the average 
electricity price was raised six times, by 51.5% overall. Reportedly, the current pricing structure does not allow EVN to cover the full cost of producing and distributing electricity; as a result, the firm has posted large losses in recent years, and its management is now being examined.
92 
Between 2010 and 2011, the average loss from electricity sales dropped from ₫119/kWh to 
₫56/kWh (losses of about ₫10.2 trillion and ₫5.3 trillion, respectively, for EVN). In 
December 2012, the average electricity price was set at ₫1,437/kWh ( ₫1,061/kWh in 2010, and 
₫1,226/kWh in 2011), apparently the lowest in th e region. Different voltage-based prices were 
applicable to consumers using electricity for production/manufacturing (e.g. ₫1,217/kWh), services 
provision (e.g. ₫2,004/kWh), irrigation (e.g. ₫1,142/kWh), public services (e.g. ₫1,315/kWh 
hospitals, schools), industrial parks, low-income households ( ₫993/kWh), and for other purposes 
in apartment buildings in cities and new urban areas (e.g. ₫1,350/kWh).93 
4.82.  To attract more investment from the private sector in developing IPP projects, MOIT and 
EVN have been working on a roadmap for price increases and gradual elimination of government 
control. Since 2009, it has been possible to increase electricity prices once a year.94 According to 
the authorities, from 2013 the electricity retail prices are to be gradually adjusted under a market-based mechanism so as to make the EVN operations profitable by 2015. Higher but realistic prices, 
adjusted to regional levels, would enable powe r businesses to generate operating surpluses to 
finance capital expenditure, and would allow them to operate on a commercially viable and sustainable level.
95 
4.83.  The separation between operational, regula tory, and ownership functions in the electricity 
sector remains loose.96 The MOIT sets the general policy dire ction, exercises ownership over EVN, 
and issues Licences for Electricity Operations.97 On 1 January 2010 the Institute of Energy, which 
had been a "self-control, self-responsibility" scientific research organization since 2007, and in 
charge of preparing national energy strategies, policies, and development plans, was moved under 
the direct management of MOIT.98 The Electricity Regulatory Authority of Viet Nam (ERAV), a 
non-independent body, has limited regulatory po wers, assisting the Minister of Industry in 
enforcing regulations. According to UNCTAD, the regulatory environment provides little comfort to 
private investors that conflicts of interests could be avoided.99  
4.4.2.2  Hydrocarbons 
4.84.  Viet Nam's oil and gas industry is a major foreign-currency earner. Viet Nam ranked eighth 
in the production of crude petroleum in the Asia-Pacific region in 2010. It has become a major exporter of crude oil among South-east Asian countries, but remains a net importer of refined oil 
                                               
88 U.S. Commercial Service (2011). 
89 UNCTAD (2008). 
90 U.S. Commercial Service (2011). 
91 Prime Minister Decision 24, 15 April 2011 and Decision 854/Q Đ-TTg, and an MOIT Circular cited in 
European Chamber of Commerce in Vietnam (2011). 
92 EIU (2012d),  Energy - Vietnam . 
93 MOIT Circular No. 38/2012/TT-BCT, 20 December 2012. Viewed at: http://luatkhaiphong.com/Van-
ban-Tieng-Anh/Circular-No.-38/2012/TT-BCT-dated-December-20-2012-7385.html  
94 VnEconomy , "Counting the cost", 28 April 2010. Viewed at: 
http://news.vneconomy.vn/20100504040 756160P0C1/counting-the-cost.htm  [31 August 2012]. 
95 European Chamber of Commerce in Vietnam (2011). 
96 UNCTAD (2008). 
97 World Bank Investing Across Bord ers online database. Viewed at: 
http://iab.worldbank.org/Data/Explore%20 Economies/Vietnam#/Investing-across-sectors . 
98 MOIT Decision No. 5999/QD-BCT, 1 January 2010, and Governmental Decree No. 115/2005/ND-CP, 
1 July 2007. Viewed at: http://www.ievn.com.vn/en/index.php/gioi-thieu-chung/co-so-phap-ly/83-general-
introduction . 
99 UNCTAD (2008). WT/TPR/S/287 • Viet Nam 
 
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  products as demand has nearly doubled in the past decade.100 It is self-sufficient in natural gas, 
which is used for power generation (85%), fertilizers (10%), and in industrial and household operations (5%).
101 Viet Nam ranks third in terms of proven oil reserves in the Asia-Pacific region; 
at the end of 2011 these reserves accounted for 0.3% of the global total.102 Oil production has 
been fairly volatile in the past few years, but output is set to rise in the medium term as new 
capacity comes on stream. As a result, and due to rising domestic demand and the start of domestic refining (2009), the share of crude oil in total exports dropped from 17.5% (2007) to 
7.5% (2011).
103 Oil-related tax revenue was estimated at 4.4% of GDP for 2011 (6% in 2008).104 
4.4.2.2.1  Upstream  4.85.  The upstream oil sector is operated by the state-owned Vietnam Oil & Gas Group 
(PetroVietnam), which also has some regulatory responsibilities in the industry.
105 PetroVietnam, 
the country's biggest company, is under the auth ority of the MOIT and contributes 25%-30% of 
the state budget in terms of earnings and tax payments.106 According to the Oil and Gas Master 
Plan Toward 2015 and Vision to 2025, the industry  will require investment of US$203 billion to 
achieve the goals set by the Government for 2006-25, in which PetroVietnam's share will be 
US$81.54 billion (40% of the total). The Governme nt began to privatize PetroVietnam's non-oil-
related business units in 2006 as part of its goal to raise capital for upstream and downstream 
projects and increase operational efficiency, although the state's participation in its hydrocarbon 
activities is retained. PetroVietnam has expanded its activities overseas and holds upstream equity stakes in 15 countries including Algeria, the Bolivarian Republic of Venezuela, the Russian 
Federation, and Peru. As of 2011, it planned to spend over US$2.3 billion to develop 25 petroleum 
projects in former Soviet Union countries and Latin America. 
4.86.  Viet Nam has opened its oil and gas sector to foreign companies, which are expected to 
bring in capital, expertise, and technology to he lp achieve major industry goals. It has increased 
the frequency of formal international licensing rounds since 2004.
107 Several regulations 
introduced in 2009-10 clarified the process for investment and outlined bidding-round regulations. Legislation was passed providing greater contract fl exibility, by allowing domestic and foreign firms 
to extend exploration contracts beyond the project deadlines. Recent reforms in the upstream 
sector were intended to pave the way for explorat ion of new offshore basins and more technically 
challenging fields by encouraging foreign investment. All oil production in the country is carried out by PetroVietnam's upstream subsidiary, PetroV ietnam Exploration and Production (PVEP), or 
through joint-ventures or production-sharing contracts in which PVEP has at least a 20% equity 
interest.
108 Foreign companies must negotiate contracts with PetroVietnam; the contracts must 
receive approval from the Prime Minister and be effective as stipulated in the investment 
certificate granted by the MOIT. Russian Fede ration energy companies are expanding their 
presence as the two countries seek to form st rategic partnerships and expand their overseas 
equity and production. The largest oil producing company is Vietsovpetro (VSP), a long-standing 
joint venture between the state-owned PetroVietn am and Zarubezhneft (Russian Federation), 
which continues to operate the Bach Ho, Rong, and other fields on the Southern continental 
                                               
100 Viet Nam needs to import about 70% of refined products and petroc hemicals, since domestic output 
does not satisfy demand. The transport sector drives about 60% of petroleum product demand. FACTS Global 
Energy forecasts that domestic petroleum product demand will more than double by 2030, to nearly over 830,000 bbl/d from around 375,000 bbl/d in 2011 (U.S. Energy Information Administration, 2012; U.S. Department of Interior/U.S. Geological Survey, 2012;  and Masan Group online information. Viewed at: 
http://www.masangr oup.com/en/vietnam ).  
101 Although gas production is to co ntinue to rise over the next decade, PetroVietnam stated that the 
country may need to start importing gas by 2015, ow ing to a strong rise in consumption (EIU, 2012d,  Energy - 
Vietnam ; and U.S. Commercial Service, 2011). 
102 Ongoing exploration activities could increase this figure, as Viet Nam's waters remain relatively 
underexplored (U.S. Energy Information Administration, 2012; and EIU,2012, Energy – Vietnam ). 
103 UNSD Comtrade data. 
104 IMF (2012), Table 3. 
105 Law No. 10/2008/QH12 amending and supplementing a number of articles of the Petroleum Law; 
and U.S. Energy Information Administration (2012). 
106 U.S. Commercial Service (2011). 
107 For more information on these developments see U.S. Energy Information Administration (2012). 
108 Decree 115 of December 2009, supplementing the 2008 Petroleum Law and the 2001 Petroleum 
Bidding Regulation; and U.S. Commercial Service (2011). WT/TPR/S/287 • Viet Nam 
 
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  shelf.109 PetroVietnam maintains partnerships with several other international oil companies, 
national oil companies, and smaller independent energy companies.110  
4.87.  Similarly to other mining products (section 4.4.1, section 3.3.2, Table 3.8), royalty rates for 
crude oil are set from a basic "tax frame" (6% to 40%) in the Tariff Schedule for Royalties 
attached to Resolution No 928/2010/UBTVQH12. They currently range from 7% to 23% for 
projects eligible for investment promotion111, and from 10% to 29% for other projects, depending 
on the daily output of the facility; their valuation basis is the selling price at the place of delivery 
or the export price.  
4.4.2.2.2  Downstream 4.88.  Action is being taken to address Viet Nam's lack of oil-refining capacity, which makes it 
heavily dependent on imported refined-petroleum products required to fuel its power stations and 
leaves it vulnerable to fluctuations in global oil prices.
112 Its first and only major oil refinery (Dung 
Quat), officially opened in early 2009, can satisfy around one third of current domestic demand when running at full capacity. A Japanese consultancy was expected to complete a study on the 
feasibility of expanding the exis ting plant's capacity by 50% by  2014. In the first half of 2012 
PetroVietnam, the plant operator, planned to sell up to 49% of Dung Quat's equity to a foreign investor in order to finance the expansion, and reportedly, PetroVietnam signed agreements in 
2012 with JX Nippon Oil (Japan) and PDVSA (Bolivarian Republic of Venezuela) to invest in the 
expansion. Furthermore, PetroVietnam, in joint ventures with other companies, plans to build two new refineries and increase its total refining  capacity by 2015 and 2018. In addition, two joint 
ventures are under development by other companies involving its subsidiary, Petrolimex (see 
below). It appears that refinery projects have en countered several delays stemming from financial, 
contractual, and land clearing challenges.
113 
4.89.  PetroVietnam is involved in other downstream operations through various subsidiaries, 
including PetroVietnam Oil Processing and Distribution Company (PV Oil). Petrolimex is the primary 
company for importing and distributing petroleum products, and accounts for about 60% of the total petroleum distribution market.
114 Petrolimex also operates 300 miles of petroleum product 
pipelines, although much of the country's fuel suppl y is transported by road. There are plans to sell 
equity stakes in Petrolimex and provide greater competition for the domestic market. So far, only 3% of the company's shares have been sold off, in a partial privatization to Vietnamese buyers. There are two other state-owned fuel oil dist ributors, the PV Oil and Saigon Petro.  
4.90.  As from December 2009, the authorities have allowed different types of enterprises (in 
addition to state-owned firms) to export and import oil and petrol, provided they meet all 
regulatory requirements.
115 To ensure sufficient supplies to the domestic market, annual minimum 
import volumes/quantities are set based on the petrol and oil import orientation for the following 
year, taking into account the economy's demand fo r foreign and domestically produced petrol and 
oil; the MOIT may adjust the minimum import volumes/quantities assigned to traders when 
required (section 3.2.1). No further information (e.g. quota levels and fill ratios) on the operation 
of this scheme was available from the authorities.   
4.91.  Viet Nam stabilizes retail petrol and oil (petrol, diesel oil, kerosene, and mazut oil) prices116 
through adjustments under market-based mechanisms involving import tariffs changes 
(section 3.2.2); and since December 2009, under a Petrol and Oil Price Valorization Fund (known 
                                               
109 Other important Russian Federation firms in Viet Nam are TNK-BP, Lukoil, and Gazprom.   
110 These include: ExxonMobil, Chevron, BHP Billiton, Korea National Oil Corporation (KNOC), Total, 
India's ONGC, Malaysia's Petronas, Nippon Oil of Japan, Talisman, Thailand's PTTEP, Premier Oil, SOCO International, and Neon Energy. 
111 Projects eligible for investment promotion include oil and gas activities in deep water and offshore 
areas, areas with especially difficult geographical cond itions and complicated geological conditions, and other 
projects pursuant to paragraph 2 Article 1 Law No. 10/2008/QH12 amending and supplementing a number of articles of the Petroleum Law. 
112 EIU (2012d), Energy - Vietnam . 
113 U.S. Energy Information Administration (2012). 
114 U.S. Energy Information Administration (2012). 
115 Article 23 of Decree No. 84/2009/ND-CP, 15 October 2009.   
116 The authorities indicated that key traders freely set their wholesale prices, which are not subject to 
price stabilization requirements. WT/TPR/S/287 • Viet Nam 
 
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  as Fuel Price Stabilization Fund) scheme117, set and used individually by key traders (see below, 
and section 3.4.10).118 Consequently, retail fuel prices have been maintained closer to 
international market prices to sustain a growing economy, keep inflation from rising, and protect consumers, resulting in revenue losses for distribu tors and increased risks of fuels being smuggling 
into neighbouring countries.
119 Retail price adjustments are based on the changes of the 
base/prime price used for setting retail prices.120 The interval between two consecutive retail price 
adjustments is at least ten days for a base/prime price increase, and a maximum of ten days for a 
decrease. As a result of the base/prime price calculation method, and the interval between 
adjustments, retail prices may be above or below international prices for some days. Where upward retail-price adjustments of 7% to 12% are necessary, key traders may raise prices up to 
60% of the required increase, and the remaining 40%  will be covered by price valorization fund 
account transfers. Where retail price adjustments of over 12% are required, or when important 
price increases could affect socio-economic development and living conditions, action is taken in the form of tax (e.g. import duty) cuts, price valorization fund account transfers, and other 
administrative measures. Principal traders set aside funds for price valorization, to be used only for 
this purpose, and submit quarterly financial statem ents of their account to the Ministry of Finance 
(MOF) and the MOIT. The funds are financed with a specific amount ( ₫300/litre or kg), which is a 
component of the prime price, collected on the re tail sale of petrol and oil. It seems that 
valorization fund accounts have been in deficit at least since 2011.
121 In response to recent world 
oil price hikes, in February 2013 the authorized ra tes for debit from the distributors' fund accounts 
seem to have increased.122 The Government has historically adjusted import tariffs frequently to 
smoothen retail prices rise; since 2010, import tariffs on oil products have been reduced several 
times, with those on gasoline and jet fuel abolished in February 2012 and those on diesel and kerosene in March 2012. In October 2012, the MOF and MOIT agreed to keep retail prices and 
export-import tariffs unchanged for petrol and oil,  to minimize the use of the price valorization 
funding.
123 
4.92.  As from January 2012, an environmental protection tax (Table 3.5) has been levied on 
items, that can cause a negative environmental impact, including fuels and lubricants. The tax 
consists of specific rates ranging from ₫300 per litre (fuel oil, petroleum, lubricants) to ₫1,000 per 
litre (gasoline, aircraft fuel) set from a specific tax frame. The authorities indicated the resulting 
                                               
117 MOF Circular No. 234/2009/TT-BTC, 9 December 2009, contains the guidance on the mechanism to 
form, manage and use the Fu nd for petrol and oil price valorization. Viewed at: 
http://lawfirm.vn/?a=doc&id=682 . 
118 The Government was to start deregulating prices in May 2007 but stopped because of price volatility. 
The Government abolished subsidies to importers withou t them being allowed to raise retail prices without 
approval from the MOIT and MOF. With increases in retail pr ices failing to stay in line with rising international 
prices, importers suffered from negative ma rgins. Online information. Viewed at: 
https://energypedia.info/w iki/Fuel_Prices_Vietnam . 
119 According to a February 2013 MOF document, the domestic retail price for RON 92 petrol is ₫2,000 
lower than China's, ₫4,000 lower than Lao PDR's, and ₫5,300 lower than Cambodia's ( talkvietnam , "Ministry 
instructs increase of petrol price stabilization fund", 1 March 2013. Viewed at: http://talkvietnam.com/2013/03/ministry-instructs-increase-of-petrol-price-stabilization-fund/  [5 April 2013]; 
STOXPLUS , "Vietnam Allows to Increase Using Price Stabilization Fund to Petroleum", 27 February 2013. 
Viewed at: http://www.stoxplus.com/News/106631/1/188/vietnam-allows-to-increase-using-price-
stabilization-fund-to-petroleum.stox  [5 April 2013]; The Saigon Times , "Traders told to use stabilization fund to 
maintain fuel prices", 28 February 2013. Viewed at: 
http://english.thesaigontimes.vn/Home/business/other/28034/  [5 April 2013]; and U.S. Energy Information 
Administration, 2012). 
120 For the base/prime price calculation, see MOF Circular No. 234/2009/TT-BTC, 9 December 2009, 
Chapter 1, Article 3. Viewed at: http://lawfirm.vn/?a=doc&id=682.  
121 The overall balance of all price valorizati on fund accounts was estimated to be a ₫703 billion 
(US$33 million) deficit in early 2011. In April 2012, the MOIT indicated that outflows from the fund accounts exceeded inflows by more than ₫2.3 trillion (US$110 million). Online information. Viewed at: 
https://energypedia.info/w iki/Fuel_Prices_Vietnam . 
122 They were set at ₫2,000/litre for gasoline (from ₫1,000/litre); ₫800/litre for diesel (from ₫400/litre); 
₫1,150/litre for kerosene (from ₫700/litre), and ₫650/litre for mazut oil (for heating) (from ₫600/litre) 
(talkvietnam , "Ministry instructs increase of petrol price stabilization fund", 1 March 2013. Viewed at: 
http://talkvietnam.com/2013/03/ministry-instructs-increase-of-petrol-price-stabilization-fund/  [5 April 2013]; 
and STOXPLUS , "Vietnam Allows to Increase Using Price Stabilization Fund to Petroleum", 27 February 2013. 
Viewed at: http://www.stoxplus.com/News/106631/1/188/vietnam-allows-to-increase-using-price-
stabilization-fund-to-petroleum.stox  [5 April 2013]). 
123 Viêt Nam  News , "Ministries try to minimise the use of fuel price stabilisation funds", 
31 October 2012. Viewed at: http://en.baomoi.com/Home/economy/vietnamnews.vn/Ministries-try-to-
minimise-the-use-of-fuel-price-stabilisation-funds/314135.epi  [26 November 2012]. WT/TPR/S/287 • Viet Nam 
 
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  price increase will help to limit production and consumption of polluting products, encourage the 
efficient use of energy, and reduce negative effects on the environment. Tax revenue from 
environmental protection is expected to allow for more investment in improving and protecting the environment, and for sustainable economic development.  
4.4.2.2.3  Natural gas 
4.93.  PetroVietnam dominates the natural gas sector, with foreign partners involved in the 
production and development of natural gas resources.
124 Royalty rates for natural gas are set from 
a basic tax frame (1% to 30%), and currently range from 1% to 6% for projects eligible for 
investment promotion, and from 2% to 10% for other projects, depending on the daily output of the facility (section 3.3.2, Table 3.8)
125; their valuation basis is the selling price at the place of 
delivery or the export price. PetroVietnam and its joint-venture partners negotiate domestic gas 
rates directly with power generators and industrial users on a project-by-project basis. Natural gas 
prices are kept generally low compared with inte rnational market rates, mainly because wholesale 
electricity prices must remain low, thus implying cross-subsidization among these sectors. 
Transport costs vary by gas pipeline and are appr oved by the MOIT. Since January 2010, the price 
of liquefied petroleum gas (LPG) has been decide d by the main traders (including those with 
import-export and manufacturing rights) after paym ent of all taxes, charges, and fees (if any).126   
4.5  Manufacturing 
4.94.  During 1990-2007, the structure of the economy shifted drastically towards 
industrialization.127 However, from 2008, the share of manufacturing to GDP dropped steadily (to 
18.4% in 2012) as a result of the rising importance  of agriculture, mining, and quarrying activities 
in the domestic economy (Table 1.2). Nevertheless , the sector's shares in total employment and 
merchandise exports increased progressively between 2007 and 2011, from 12.5% to 13.8%, and 
from 54.4% to 64.2%, respectively. In 2011, machinery and equipment, and clothing accounted 
for 19.4% and 13.6% of total merchandise exports respectively.128 Labour productivity, which 
grew by 39.9% in 2008-11, is 39.4% (or 85.5%, based on Table 1.2 data) greater than the 
average level of the economy.129 In 2012, the industrial sector continued to be the leading tax 
contributor among the 1,000 leading corporate taxpayers in Viet Nam, accounting for 66% of total 
tax payments, of which more than half was paid by state-owned enterprises.130 Foreign-invested 
enterprises account for the largest part of total ma nufacturing output, and their share rose steadily 
from 39.8% in 2007 to 42.8% in 2010. In the same period, the share of SOEs was reduced to 
18.8% (23.2% in 2007) while that of domestic private enterprises grew to 38.4% (36.99%). 
4.95.   Under Prime Minister's Decision No. 604/QD-TTg of May 2012, on raising productivity, 
Viet Nam's latest overall manufacturing policy is aimed at increasing the domestic value-added 
(localization ratio) of industrial products, and helping Vietnamese products to join a global value 
chain.131 The project provides, inter alia,  for: setting 500 national technical standards (between 
2015 and 2020); 40% of enterprises producing core  industrial goods to prepare and implement 
projects to raising efficiency and quality by 2015 and 100% of enterprises by 2020; 
2,000 enterprises to apply advanced technology; of domestic quality testing centres to be raised to international level 20% by 2015, and 50% by 2020; and raising total factor productivity to 35% (by 2015) and 40% (by 2020). Priority activities relating to this project cover the textiles, shoes, 
leather and plastic industries (by 2015) as well as  chemical and mechanical industries (by 2020). 
                                               
124 Its main foreign partners are TNKBP, Chevron, KNOC, Gazprom,  Petronas, Thailand's PTTEP, 
Talisman, ExxonMobil, Total and Neon Energy (U.S. Energy Information Administration, 2012). 
125 Tariff Schedule for Royalties attached to Resolution No 928/2010/UBTVQH12. 
126 Decree No. 107/2009/ND-CP, 26 November 2009. 
127 The share of manufacturing in the GDP in creased from 12.3% in 1990 to 21.1% in 2007. 
128 UNSD Comtrade data. 
129 In principle, if manufacturing's share of GDP is falling and its share of employment rising, then its 
labour productivity must be declining relative to the rest of the economy (G eneral Statistics Office of Vietnam, 
2011). 
130 Viêt Nam News , "Industry still leading tax contributor", 3 December 2012. Viewed at: 
http://vietnamnews.vn/Economy/233574/industry-still-leading-tax-contributor.html  [12 December 2012]. 
131 Global value chain refers to the different processe s in different parts of the world that add value to 
the goods or services being produced. By joining a global value chain, small enterprises have the ability to 
transform their business into an international operation o ffering greater opportunities (Prime Minister Decision 
No. 604/QD–TTg, 25 May 2012. Viewed at: http://lawfirm.vn/?a=doc&id=2478 ). WT/TPR/S/287 • Viet Nam 
 
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  Sub-sectoral plans are in place for some manufacturing industries (see below). Other prioritized 
activities including production of new materials, high-tech products, bio-technology, information technology, and chemical and mechanical engineer ing (section 3.4.1, Table A3.6) as well as 
"support industries" (see below); a 2010 list cont ains 46 high technologies prioritized for 
development investment, and 76 high-tech products eligible for development promotion.
132  
4.96.  Between 2007 and 2013 Viet Nam's average applied MFN tariff on industrial products 
(HS25-97) was reduced significantly,  from 17% to 9%, and the peak ad valorem  tariff rate 
dropped from 150% to 100% (HS630900 worn clothing) and 75% (vehicles other than 
railway/tramway) (Table 3.1). In 2013, 11 two-digit HS product groups (e.g. articles of leather, manufactures of straw, articles of apparel and clothing, footwear, ceramic products, articles of base metal, vehicles other than railway/tramway) were subject to average applied MFN tariff rates 
at twice the average rate for industrial produc ts; these ranged from 19.5% (apparel) to 30.3% 
(vehicles other than railway/tramway). 
4.97.  Viet Nam has also applied non-tariff measures on certain manufactures. Between 
1 June 2011 and 28 December 2012, all imports of mobile phones, cosmetics, and certain 
categories of cars had to enter through one of three international seaports (Ho Chi Minh City, Hai Phong, and Da Nang), and additional cust oms documentation with consulate approval in 
exporting countries was required (section 3.2.1).
133 As from January 2011, reference prices for 
risk-assessment purposes have been set for imports of numerous commodities (apparently covering more than 20 product categories) (section 3.2.8).
134 The authorities indicated that these 
prices are not used to determine the customs value of imported goods as an alternative value or a 
mechanism for setting the minimum prices, and that Viet Nam's customs valuation practices are in 
line with its WTO commitments. As from April 2010, the MOIT has maintained and expanded a long list of "non-essential" imported commodities and consumer goods not encouraged for import 
(section 3.2.7). Export taxes and prohibitions of raw materials (sections 3.3.2, 3.3.3, and 4.4.1) 
are used to raise domestic value-added and ensure  supplies to the local processing industry that 
are cheaper than elsewhere, thus constituting assistance to domestic downstream processing of 
these materials. Furthermore, government procurement is used to support domestic goods, 
materials, and equipment by allowing international bidding for state-funded projects to take place 
only if local suppliers or sponsors of official development assistance (ODA) cannot meet specific requirements (section 3.4.7).
135   
4.98.  Domestic support to manufacturing activities is provided in the form of tax incentives 
(including duty concessions, temporary corporate and personal income tax exemption or breaks) and non-tax incentives (e.g. preferential land rental rates, exemption from payment of land-use 
fees for the land area), available to firms operating in industrial zones, high-tech zones, and 
export-processing zones (sections 3.4.1 and 3.4.5, Table A3.6).
136 Concessional loans for 
production and business development, and infrastruc ture projects and export contracts have been 
available since 2009 (Box 1.1 and section 3.3. 4). The authorities indicated that support is, 
inter alia,  focused on protecting the infant industries in line with WTO commitments, and no 
prohibited subsidies or other incentives contingent on localization and/or export performance are being implemented. No data on budgetary outlays and tax expenditure in support of 
manufacturing activities were available from the authorities.  
4.99.  Since February 2011, efforts have been made to boost "support industries" in some key 
sectors, such as mechanical engineering, information technology (IT), electronics, textile and 
                                               
132 Prime Minister Decision No. 49/2010/QD-TTg, 19 July 2010; and U.S. Commercial Service (2011). 
133 MOIT Notice No. 301/TB-BCT, 28 December 2012; Notice No. 197/TB-BCT, 6 May 2011 (in force 
1 June 2011), cited in European Commission (2011). 
134 These products included frozen poultry meat; fre sh fish; frozen fish; fres h fruit; wine and beer; 
textile fabrics; construction glass; sanitary equipment; tiles; iron and steel; power genera ting sets with 
compression ignition internal combustion piston engine s; telephones for cellular  networks; passenger motor 
vehicles (HS headings 8702, 8703, 8704, 8705), motorcycles, electric motorcycles (HS heading 8711); some electrical appliances (refrigerators, washing machines, electric fans, dishwashers, kitchen hood, vacuum cleaners, iron); and gas cookers (Article 6, Decree 40/2007/ND-CP, 16 March 2007; Official Letter No. 348/TCHQ-TXNK, 21 February 2011, "List of Administra ted Imported Goods at Risks and Reference Prices"; 
and Official Letter No. 2334/TCHQ-TXNK, 23 May 2011, cited in European Commission (2011); and Decree 
No. 40/2007/ND-CP, 16 March 2007. 
135 Prime Minister Directive No. 494/CT-TTg, 20 Ap ril 2010 cited in European Commission (2012). 
136 Decree No. 29/2008/ND-CP, 14 March 2008, cited in Pricewaterhouse Coopers (2008). WT/TPR/S/287 • Viet Nam 
 
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  garments, leather footwear, and technology, th rough advertisement, investment and trade 
promotion programmes, distribution networks, land lease, and technical support alongside the existing tax breaks. The development of "suppo rt industries" is important and urgent for, 
inter alia,  improving "localization", as many local industries, especially producers of export 
products, rely overwhelmingly on imported feedstock and parts.
137 From 2009, a Politburo 
campaign "Vietnamese people use Vietnamese products" has allegedly created positive effects and competitiveness for local products in the domestic market; according to a survey conducted by the 
Institute for Public Opinion, an agency under the Party Central Committee's Commission for 
Publicity and Education, the popularity of foreign products has declined.
138 Furthermore, in line 
with the same campaign and as the volume of inventory items (e.g. coal, iron, steel, cast iron, fertilizers, plastic products, cars, motorbikes) re mained high, in October 2012 more than ten large 
state-owned groups belonging to the MOIT signed  a voluntary cooperation agreement to use each 
other's products. The authorities indicated that MOIT publishes the list of goods produced domestically for its enterprises to "freely deci de" whether to purchase or not, rather than 
promoting the consumption of more domestic goods in order to solve difficulties in production and 
business.
139  
4.5.1  Textiles and garments 
4.100.  Textiles and garments remain important pillars of the manufacturing sector; Viet Nam was 
the world's 7th largest textile and apparel exporter in 2011.140 The textiles and garments industry 
is Viet Nam's largest, with 5,982 enterprises (2011) mostly located in industrial parks or craft villages (mostly SMEs), and around 2.3 million workers, equivalent to 25% of all industrial 
employment.
141 In 2010, foreign-invested companies and SOEs accounted for 42.7% and 13% of 
total textiles and garment-sector output respectively.142 In 2010, the industry was the 
second-highest foreign-exchange earner (18.6% of total merchandise trade) after agriculture.143 
According to the Viet Nam Textile and Apparel Association, WTO membership enabled many 
garment companies to diversify their markets and to benefit from MFN status in Members' markets.
144 On the other hand, the global recession has had a severe impact on the industry, with 
prices and orders declining significantly, and the long-time advantage of cheap human resources 
mostly evaporating. In line with the campaign "Vietnamese people use Vietnamese goods" (section 4.5.), textile and garment firms, including the state-owned Vietnam National Textile 
                                               
137 The country had to import as much as 80% of thes e items. The automotive industry uses only 5% to 
10% of local parts, while for motorbikes the ratio is 40% or more (section 4.5.2) . Though foreign companies 
were potentially interested in local procurement, the domestic support industries could not supply them 
(Viêt Nam News , "Incentives urged to boost support industries", 10 October 2011. Viewed at: 
http://vietnamnews.vnagency.com.vn/Industries/216360/incentives-urged-to-boost-support-industries.html  
[31 August 2012]). 
138 Reportedly, consumers prefer to buy domestic: garment and textile products (80%); foods, fruits, 
and vegetables (58%); hous ehold products (49%); buildi ng materials and interior furniture (38%), toys and 
learning tools for children (34%); stationery (33%); electronic products (26%); pharmaceuticals and medical devices (26%); cars and motorcycles (18%); and, cosmetics (10%) ( IntellAsia.net , "Fifty ninepct of consumers 
prefer Vietnamese products", 22 February 2011. Viewed at: http://www.intellasia.n et/fifty-ninepct-of-
consumers-prefer-vietnamese-products-148717  [30 August 2012]; and Business-in-Asia-Com , "Vietnamese 
Use Vietnamese Goods  - What are the Problems?", August 2011. Viewed at: http://www.business-in-
asia.com/vietnam/vietnam_use_vietnamese_goods.html  [18 December 2012]). 
139 The state-owned groups included Viet Nam National Oil and Gas Group, Viet Nam National 
Coal-Mineral Industries Group, Viet Nam Garment an d Textiles Group, Viet Na m Paper Corporation, and 
Viet Nam Industrial Construction Corporation ( Viêt Nam News , "Gov't deal to boost use of local products", 
11 October 2012. Viewed at: http://vietnamnews.vn/Economy/231229/gi ant-groups-join-hands-to-increase-
consumption-of-domestic-goods.html  [26 November 2012]). 
140 WTO (2012). 
141 Vietrade  factsheet, "Investment opportunities in Text iles and garments", 10 December 2011. Viewed 
at: http://www.vietrade.gov.vn/en/index.php?option= com_content&view=article&id=1044:investment-
opportunities-in-textiles-and-garments&cat id=272:investment-opportunities&Itemid=250  [31 August 2012]; 
and OSEC (2011). 
142 General Statistics Office of Vietnam (2011), Tables 202, 204, 206 and 208.  
143 UNSCD Comtrade data. 
144 Viêt Nam News , "WTO boosts garment trade", 20 August 2012. Viewed at: 
http://vietnamnews.vnagency.com.vn/Economy/228989/wto-boosts-garment-trade.html  [30 August 2012].  WT/TPR/S/287 • Viet Nam 
 
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  Garment Group (Vinatex)145 have tackled the domestic market and made efforts to expand their 
domestic sales networks.146  
4.101.  Under the 2008 Master Plan for the Textile Sector until 2015 with orientation to 2020, 
textiles and garments would become a key industry, and efficient, export-oriented development 
would be encouraged.147 In line with the "support industries" promotion objective (section 4.5), 
the industry is expected to focus on producing cl oth and materials for tailoring apparel for export, 
and to invest to improve high-quality cotton, fibr e, and fabric production facilities so as to 
decrease imports of these items.148 The Plan targets an increase of the local content of domestic 
products from 32% (2006) to 50% (2010), 60% (2015) and 70% (2020); in 2011, the local content ratio stood at 48%.
149 The Plan also sets an export revenue target of US$18 billion for 
2015, and US$25 billion in 2020; in 2011, exports were US$14 billion.150 The textiles and clothing 
industry labour force is to increase to  2.75 million by 2015 and 3 million by 2020. 
4.102.  In 2013, applied MFN tariff protection for the textile and garment sector ranged from 
zero to 30% (HS Chapters 50-63), and was 100% for worn clothing (Table A3.1 and above). 
Average MFN tariff protection, by double-digit HS chapter, ranged from 5.5% (HS54 man-made 
filaments) to 19.8% (HS61 apparel and clothing). Since January 2011, minimum reference prices for risk-assessment purposes have been used by Customs for valuation of imports of textile and 
apparel items (section 4.4). 
4.5.2  Motor vehicles 4.5.2.1  Automotive 4.103.  Although the domestic economy has expanded rapidly in recent years, vehicle demand 
remains low. Viet Nam's automotive industry is small and underdeveloped by regional standards. 
The assembly industry, which is dominated by foreign-invested joint ventures, is heavily reliant on imported parts and is focused solely on serving the domestic market; foreign-invested firms 
account for 76% (2010) of motor vehicles, trailers and semi-trailers (value terms), while state-
owned firms account for 10.6%.
151 In 2012, car sales dropped progressively by an overall 37.5% 
(domestically assembled vehicles) and about 63% (i mported vehicles) compared to the peak years 
of 2008 and 2009, respectively. By October 2012, Viet Nam's slowing market had made some 
companies consider shutting down assembly plants and shifting to automobile imports; domestically assembled completely-knocked-down (C KD) vehicles accounted for more than 70% of 
overall domestic car sales (including fully assembled imports), according to the Vietnam 
Automotive Manufacturers' Association (VAMA).
152 High car prices, the heavy tax burden (see 
below), and a widespread preference for motorcycles constrain the growth in car sales.153 In 
                                               
145 Vinatex, which resulted from a merge of all SOEs in  textiles and garments, is one of the largest and 
the most competitive textile/garment corporations in As ia. Its export value has acco unted for over 20% of the 
total export turnover of the Vietnamese textile and garm ent industry (Vinatex online  information. Viewed at: 
http://www.vinatex.com/Portal/Page.aspx?PageID=44 ). 
146 Vietnamese brands primarily conc entrate on middle-priced segments, while high-price segments are 
served by western brands. Chinese mass goods target the low-price segments (Working Group of Economic 
and Commercial Counsellors of the EU, 2011). 
147 Decision 42/2008/QD-BCT, 19 November 2008; Decision No. 36/2008/QD–TTg, 10 March 2008 
(Vietrade factsheet, "Investment opportunities in Textil es and garments", 10 December 2011. Viewed at: 
http://www.vietrade.gov.vn/en/index.php?option=com_content&view=article&id=1044:investment-
opportunities-in-textiles-and-garments&cat id=272:investment-opportunities&Itemid=250  [31 August 2012]). 
148 Vinatex set up a joint-venture with PetroVietnam (PetroVietnam-Vinatex Dinh Vu Joint Stock 
Company (PVTex)) to build Vietnam's firs t polyester fibre plant. The factory will be located in Haiphong and use 
by-products from oil-refining. It will help to reduce the Vinatex' dependen ce on imported materials by meeting 
around 40% of the domestic apparel indu stry's demand for synthetic fibre.  
149 Communist Party of Viet Nam online data. Viewed at: http://www.cpv.org.vn/CPV/Modules/News/ 
NewsDetail.aspx?co_id=30066&cn_id=502845 . 
150 General Statistics Office of Vietnam data. 
151 General Statistics Office of Vietnam (2011), Tables 202, 204, 206 and 208.  
152 In January 2012, when the import tariff was re duced for pick-ups, all CKD operators stopped 
assembly and switched to imports from Thailand ( Vietnam Investment Review,  "Auto-makers hit judder bars in 
a slowing market", 31 October 2012. Viewed at: http://www.vir.com.vn/news/ business/auto-makers-hit-
judder-bars-in-a-sl owing-market.html  [26 November 2012]). 
153 Reportedly, a car in Viet Nam is subject to 9 ki nds of tax and fees, leading to very high prices. 
According to the Vietnamese Automobile Associat ion the average income of a Vietnamese is 1/50th of a 
U.S. citizen's, while car prices are 365% higher ( Vietnam Economic Forum,  "Automobile market - getting sick WT/TPR/S/287 • Viet Nam 
 
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  response to VAMA's request, the registration fees for new vehicles in Ho Chi Minh City and Hanoi 
were reduced as of April 2013 in a bid to encourage more consumers to buy their first car.  
4.104.  The 2002 Development strategy until 2010 with orientation until 2020, set ambitious 
targets for common-type, special-purpose, and high-class vehicles with local-content of up to 60% 
and meeting over 80% of domestic demand in 2010, depending on the type of vehicle.154 At 
end-April 2013, none of these targets had been reached. The auto and spare parts production 
subsectors are entitled to special investment incentives. In the context of Viet Nam's auto 
development strategy to 2020, with a vision to 2030, in May 2013 the MOIT and MOF were 
working on proposals to submit to the Prime Minister regarding tax breaks and land-lease 
incentives for making auto production a key industry by 2020.155 Several crucial targets, including 
increasing exports and setting up an auto manufacturing and support hub in central Viet Nam, with 
total investment of ₫30 trillion (US$1.46 billion), form part of this strategy. The strategy also aims 
to boost sales of cars made in Viet Nam, and expand the domestic industry's production capacity to 398,000 vehicles per year by 2020. The localization rate is expected to reach 50%-60% by the 
same year. The auto industry is expected to export 65,000 vehicles per year by 2020, along with a 
total export turnover of US$4 billion from auto parts. The MOIT suggested, inter alia,  a corporate 
income tax rate of 10% for the entire life of  the project, and a 50% reduction of special 
consumption tax for auto projects that meet criteria on local-content ratios.
156 
4.105.  Domestic producers of motor vehicles are protected by an average MFN tariff more than 
three times the average for all industrial products (Table A3.1), which encourages "tariff jumping" by foreign-owned car makers.
157 Nevertheless, the share of the sales of domestic vehicles 
assembled by foreign-invested firms dropped from 48.8% in 2007 to 42.5% in 2012. Between 
2007 and 2013, the average MFN applied tariff rate was reduced from 43% to 30.3% (HS87 vehicles other than tramway and ra ilway), and peak rates from 150% to 75% 
(Table A3.1).
158 Preferential tariffs were implemented as from 2009 for certain types of vehicles 
originating in ASEAN countries and Japan. Import duties on used cars (HS items 8702 and 8703) were increased on 29 June 2011.
159 In August 2011, new duties ranging from US$3,000 to 
US$17,000 per unit, depending on the engine size, were applied to imports of used cars; this 
i n c r e a s e  p r o m p t e d  i m p o r t s  o f  u s e d  c a r s  t o  f a l l  b y  7 0 %  y e a r - o n - y e a r  i n  t h a t  m o n t h ,  t o  j u s t  199 vehicles.
160 In addition, between 1 June 2011 and 28 December 2012, imports of motor 
vehicles for transport of up to nine persons were subject to additional customs documentation and 
approval requirements (sections 3.2.1 and 4.5).161 Since April 2009, motor vehicles have been 
                                                                                                                                               
with government policies", 28 September 2012. Viewed at: http://vef.vn/2012-09-28-oto-met-moi-ngong-
chinh-sach [26 November 2012]; EIU, 2012d), Automotive – Vietnam ). 
154 Decision No. 186/2002/QD–TTg, 26 December 2012. Viewed at: http://moj.gov.vn/vbpq/en/Lists/ 
Vn%20bn%20php%20lut/View_ Detail.aspx?ItemID=9684 . 
155 Viêt Nam News,  "Incentives to boost auto industry", 27 July 2011. Viewed at: 
http://vietnamnews.vnagency.com.vn/Economy/213767/incentives-to-boost-auto-industry.html  or 
http://www.dztimes.net/post/business/incentives-to-boost-auto-industry.aspx  [31 August 2012]. 
156 EIU (2012d),  Automotive - Vietnam . 
157 The term "tariff jumping" refers to  the establishment of a production facility within a foreign country, 
through FDI or licensing, in order to avoid a tariff (Hong Hwang and Chao-cheng Mai, 2002).  
158 Under Viet Nam's WTO commitment s, within 11 or 13 years of join ing the WTO import duties on 
completely built-up (CBU) cars must be cut to rate s ranging from 47% to 70%, depending on engine size. 
159 Upon its WTO accession Viet Nam confirmed that it would eliminate the import prohibition on used 
motor-vehicles and replace it with in creased import duties from the date of accession. Following the issue of 
Joint Circular Joint Circular No 03/TTLT-BTM-BGTVT-BTC-BCA of 31 March 2006, importation of used motor vehicles has been allowed for used vehicles whose manufacturing date does not exceed 05 years from the date of import to Viet Nam; importation of used motor vehicles had effectively been allowed as from 1 May 2006. Viet Nam was developing a system of quality standard s for traffic, environment,  and human health/safety 
applicable to means of transportation in compliance with WTO rules. Regulati ons in this regard would be issued 
promptly. Viet Nam would only apply te chnical measures to second-hand motor vehicles in compliance with the 
TBT Agreement. In May 2013 the authorities indicated that no technical barriers have applied to second-hand motor vehicles less than 5 years from the date of manufacture to th e date of import (WTO document 
WT/ACC/VNM/48, 27 October 2006; and Global Trade Alert online information. Viewed at: http://www.globaltradealert.org/measure?tid=All&tid_1=500&tid_3=All ). 
160 The authorities indicated that it is impossible to appraise the effectiveness of a policy measure by 
using one-month data but no data on imports of used cars from August 2011onwards were made available to the Secretariat. Viet Nam's WTO binding commitments fo r used motor vehicles are contained in Chapter 98 of 
the Loose-leaf Schedule CLX, and co nsist of a compound duty, i.e. an ad valorem rate  plus a specific duty of 
US$7,000, US$10,000 or US$15,000 depending on the type of vehicle (EIU, 2012), Automotive – Vietnam ).  
161 Circular 20/2011/TT-BCT cited in European Commission (2011). WT/TPR/S/287 • Viet Nam 
 
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  subject to special consumption taxes ranging from  10% to 60% depending on the number of seats 
and cylinder capacity (Table 3.4).162 Reduced special consumption tax rates apply to hybrid and 
bio-fuel vehicles (Table 3.4). Furthermore, local taxes vary, and include a 10%-15% (down from 20%) registration fee for a passenger car of under 10 seats, and a fee for registration papers and 
number plates.
163  
4.106.  As of March 2012, a series of special incentives were under consideration under the Key 
Mechanical Programme (sections 4.5 and 3.4. 1), for the US$206 million Chu Lai-Truong Hai 
Automobile Engine Manufacturing Plant, which was to receive technology transfer from the 
Hyundai Group.164 They included: the possibility of in vestment loans from the state-owned 
Viet Nam Development Bank for up to 85% of total investment capital during 12 years; zero import duty for imported inputs not produced locally; a 10% corporate income tax rate during 
the plant's lifetime; corporate income tax exemption during the first four years of profit and half 
the suggested corporate income tax thereafter for nine years; and a peppercorn rent of US$1 for 10 ha of land with upgraded infrastructure during the life of the project (estimated at 70 years) (a 
virtual freehold). In May 2013, the authorities indicated that these measures had not been 
approved. Corporate tax incentives for investment aimed at expanding capacity were eliminated in 2009, therefore tending to impede the achievemen t of scale economies, which are especially 
important for the automobile industry (and other industries, such as steel) and an important 
source of improvement in TFP.  
4.5.2.2  Motorcycles  4.107.  Viet Nam is the world's fourth largest market for motorbikes after China, India, and 
Indonesia.
165 Motorcycles are estimated to serve on average over 60% of travel needs in a market 
of over 30 million motorcycles. Viet Nam's dynamic and high-growth motorcycle market was 
initially based on foreign direct investment from Japan and Chinese Taipei. In general, the 
local-content rate in motorcycle products is relatively high, at up to 70%-80%, even amounting to 
90% at some enterprises, as a result of the development of "support industries" (section 4.4) at a very early stage.
166 Viet Nam’s motorcycle industry can fully meet the demand of the domestic 
market for normal motorcycles and scooters. In 2013, there were 7 (6 in 2007) foreign-invested 
and 13 (44 in 2007) domestic enterprises producing/assembling motorbikes; however, only about 10 of them, including firms from Japan (Honda, Suzuki, Yamaha) and Chinese Taipei (SYM), are 
strong enough to compete in the domestic market.
167 The number of domestically assembled 
motorcycles rose steadily from about 2 million  in 2005 to 3.5 million units in 2010, and was 
expected to attain 4.2 million units in 2011.168 Between 2009 and 2011, completely built-up (CBU) 
motorcycle imports dropped from 111,466 units to 54,621, whereas those of completely knocked 
down (CKD) kits rose from US$621.3 million to US$1.1 billion.169 Sales of imported motorcycles 
peaked in 2008 (137,316 units) before dropping gr adually by an overall 73.4% in 2012. Sales of 
                                               
162 Article 7, Law No 27/2008/QH12 on Excise Tax, effective from 1 April 2009. 
163 The registration fee is calculated as follows: regi stration fee rate multiplie d by the registration fee 
valuation basis comprising the import tax, the excise (s pecial consumption) tax, an d VAT. The fee for granting 
registration papers  and number plates cars ranges from ₫100.000 to ₫1 million; cars under 10 seats registered 
in Hanoi and Ho Chi Minh City are subject to rates ranging from ₫2 million to ₫20 million. In 2010, the fee for 
papers and plates was adjusted for cars of fewer than  10 seats in order to redu ce traffic congestion and 
accidents (Decree No. 23/2013/ND-CP, 25 March 2013; Decree No 45/2011/ND-CP, 17 June 2011; MOF Circular No. 212/2010/TT-BTC, 21 December 2010; and Vietnam Economic Forum , "Automobile market - 
getting sick with government policies", 28 September 2012. Viewed at: http://vef.vn/2012-09-28-oto-met-
moi-ngong-chinh-sach  [26 November 2012]). 
164 Viêt Nam News , "Province suggests incentives for new auto assembly plant", 28 March 2012. Viewed 
at: http://vietnamnews.vnagency.com.vn/Economy/222752/province-suggests-incentives-for-new-auto-
assembly-plant.html  [31 August 2012]. 
165 European Chamber of Commerce in Vietnam (2013). 
166 Limitations on the importation of CBU motorcycles an d high tariff barriers over a long period prior to 
WTO accession helped to encourage the formation of dome stic motorcycle assembly an d production but also to 
the low quality of domestic products, the increasing tr affic accidents and environmen tal pollution, the rampant 
infringement of intellectual property  rights, the infringement of consumer s' interests, etc. (Ministry of 
Industry/Institute for Industry Policy and Strategy, 2007). 
167 European Chamber of Commerce in Vietnam (2013).  
168 General Statistics Office of Vietnam (2011), Table 212. 
169 General Statistics Office of Vietna m online information. Viewed at: 
http://www.gso.gov.vn/default_en.aspx?tabid=472&idmid=3&ItemID=13209 ; and MOF/General Department 
of Vietnam Customs, Table 15B/TCHQ. Viewed at: 
http://www.customs.gov.vn/EngLish/Lists/SupportOnline/ThongKeHaiQuan.aspx . WT/TPR/S/287 • Viet Nam 
 
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  domestically assembled motorbikes ranged from about 2.9 million units (2008, 2009) to 
3.7 million (2011), and their market share rose from 96% (2007) to 98.9% (2012).   
4.108.  The Master Plan for the Development of Viet Nam's Motorcycle Industry in the period 
2006-15 with a vision to 2020, envisages that by 2015, the country will become a centre for the 
design, manufacture, and assembly of motorcycles on a large scale, have competition capability in 
the region, and integrate fully in regional and international markets.170 By 2020, "support 
industries" for motorcycle assembly are expected to "support" other assembly industries.   
4.109.  Despite tariff reductions since 2007, when a single 100% rate applied to all CBU and CKD 
motorcycles (HS8711), in 2013 tariff protection for the motorcycle industry remains particularly high with rates ranging from 55% (motorcycles with cylinder capacity exceeding 800cc) to 75% 
(most items regardless cylinder capacity, including CKD kits) presumably to partly encourage 
"tariff jumping" as sales of domestic motorbikes assembled by foreign-invested firms rose from 
60.2% (2007) to 96.5% (2012). The authorities indicated that the peak tariff rate is to be reduced to 40% by 2015. Prior to WTO accession, importation, registration, and circulation of motorcycles 
with engine capacity exceeding 175 cm³ was prohibit ed, to ensure traffic safety. Imports of these 
motorcycles have been allowed since May 2007 subject to automatic import licensing for statistical and administration purposes
171; imports of used 2-wheel and 3-wheel motorbikes is prohibited 
(Table 3.7). As from April 2009, motorbikes with an engine capacity exceeding 125 cm³ have been 
subject to a 20% special sales/consumption tax (Tab le 3.4). Seemingly, in an effort to address 
traffic jams in big cities, as of January 2012 registration-plates fees were set at three levels depending on the value of the motorbike, and increased to ₫4 million for motorcycles of a value 
exceeding ₫40 million.
172  
4.5.3  Other manufacturing activities 4.110.  In recent years Viet Nam's steel sector has faced difficulties due to the slowdown of sales, 
high inventories, production outstripping demand, and cheap imports (e.g. from China).
173 
Between 2007 and 2010, domestic production of st eel rose 43% to 5.7 million tonnes, followed by 
a minor drop to 5.5 million tonnes. Imports peaked  in 2009, and have fallen gradually by almost 
15%, to an estimated 6 million tonnes. Steel exports varied from 300,410 tonnes to an estimated 
1.7 million tonnes. As a result, steel consumption (production plus imports minus exports) peaked 
in 2009, dropping gradually by 11.2% to an es timated volume of 9.7 million tonnes (2011). In 
2013, average MFN tariffs on iron and steel products were 3.5% (6.9% in 2007) with rates ranging 
from zero to 15% (40% in 2007). Action has been taken to increase border protection for sensitive 
steel items. In 2009, upon request of the Vietnam Steel Association, the MFN import tariffs on several construction alloy steel products were temporarily increased from 5% to 10%.
174 In 
January 2012, import duties on cold-rolled stainl ess steel products were increased from zero to 
5%; tariffs on the same products were furt her raised from 5% to 10% in October 2012.175 
Between mid-2010 and 31 December 2011, automatic import-licensing requirements were applied 
for eight four-digit HS steel products, and reinstated as from mid-September 2012 
(section 3.2.7).176 Further, in August 2012, domestic support to local production and business was 
envisaged upon entry into force of Resolution No 13/NQ-CP.177 To address the huge surplus in 
                                               
170 Ministry of Industry/Institute for Industry Policy and Strategy (2007). 
171 Circular No 06/2007/TT-BTM, 30 May 2007. 
172 European Chamber of Commerce in Vietnam (2013).  
173 Viet Nam has 30 large-scale steel mills under Vietnam Steel Association and hundreds of small-scale 
units ( Intellasia , "Vietnam steel sector continues to face difficulties ahead: Ministry", 10 August 2012. Viewed 
at: http://www.intelasia.net/vietnam-steel-sector-continues-to-face-difficulties-ahead-ministry-224144 ). 
174 HS items 7227900000, 7228301000, 7228309000, 7228401000, and 7228409000, MOF Circular 
75/2009/TT-BTC, 13 April 2009, and Circular 216/2009/TT-BTC, 12 November 2009, cited in European Commission (2012). 
175 Domestic firms' total annual output of stainless cold-rolled steel reached 3.47 million tonnes 
annually, while domestic demand was only 1.3 million tonnes per year ( talkvietnam , "Import buffer to help 
struggling steel firms", 23 October 2012. Viewed at: http://talkvietnam.com/2012/10/import-buffer-to-help-
struggling-steel-firms/  [31 October 2012]; and Circular 193/2012/TT-BTC, 15 November 2012).  
176 HS items 7209, 7210, 7211, 7212, 7213, 7321, 7323, 7324, Circular No 23/2012/TT-BCT, 
7 August 2012; and Global Trade Alert online information. Viewed at: http://www.globaltradealert.org/measure?tid=All&tid_1 =500&tid_3=All . 
177 Intellasia , "Vietnam steel sector continues to face difficulties ahead: Ministry", 10 August 2012. 
Viewed at: http://www.intelasia.net/vietnam-steel-sector-continues-to-face-difficulties-ahead-ministry-
224144 . WT/TPR/S/287 • Viet Nam 
 
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  domestic production capacity, as of October 2012 the MOIT requested new steel projects to be in 
line with the subsector's Master Plan targets or  otherwise be approved by the Prime Minister.178 An 
August 2012 proposal to provide a new US$1 billion Kobelco Viet Nam Co Ltd sponge iron factory project with a 50% corporate income tax reduction for 15 years from commencing operation, and 
waive import duties for equipment and material used during its first five years of operation was 
approved.
179  
4.111.  Viet Nam seems to represent a high-reward, high-risk market for pharmaceutical firms.180 
In 2013, tariff protection for pharmaceuticals ranged from zero to 14% (waste pharmaceuticals); 
almost 89% of tariff lines are subject to rates of zero or 5%. Efforts were made to improve the quality of pharmaceutical products, promot e patient safety, and sustainable access to 
pharmaceutical and biological products. The authorities indicated that there has also been a 
complete alignment with the ASEAN Common Te chnical Dossier (ACTD) and the ASEAN Common 
Technical Requirement (ACTR) in drug registration, and implementation of Good Manufacturing Practices standards as recommended by WHO.  
4.112.  For registration of new products (new chemical entities)
181 foreign-invested companies are 
required to conduct clinical trials if the product has been available in their country of origin for less than five years
182; this requirement is being considered for amendment in the revision of the 
Pharmaceutical Law, so as to ensure better access to new medicines, while ensuring their safe and 
effective use. Systematic quality tests and safety tests on animals are required on all batches of 
vaccines and biological products that are seru m-containing antibodies for prevention and 
treatment of human diseases, prior to release from the importer's stores. As from April 2010, 
guidelines have applied for reporting data of bioavailability/bioequivalence study for generic 
medicines with conventional dosage form and all medicines with modified release dosage form, for drug registration purposes.
183 Parallel importation of medicines for the prevention and treatment of 
human diseases is authorized; concerns in this area relate to the safe use of these medicines due 
to possible repackaging errors, lack of traceability of parallel imported products, observance of requirements, and the absence of transparency on details of the authorized importers and 
distributors.
184 In February 2011, the updated guidelines entered into effect for the export and 
import of drugs and primary packaging, including a list of 178 active pharmaceutical ingredients (for medicines for human use) that are banned from import into Viet Nam.
185 A foreign-invested 
manufacturer that has a certificate of satisfactory drug business conditions may directly import 
raw materials for the company's own drug manufacturing. No new MOH guidelines related to the 
                                               
178 According to the Vietnam Steel Association, in 2012 local demand was only around 5 million tonnes a 
year, but annual supply has already reached 7.8 million tonnes ( talkvietnam , "Cancel overdue steel projects, 
government advised", 23 October 2012. Viewed at: http://talkvietnam.com/2012/10/cancel-overdue-steel-
projects-government-advised/   [31 October 2012]). 
179 Viêt Nam News,  "PM considers incentives for sponge iron factory", 1 August 2012. Viewed at: 
http://vietnamnews.vnagency.com.vn/Economy/228211/pm-considers-incentives-for-sponge-iron-factory.html  
[31 August 2012]. 
180 SBWire , "Vietnam Pharmaceuticals & Healthcare Report Q2 2013 - New Report Available", 
29 April 2013. Viewed at: http://www.sbwire.com/press-releases/vietnam-pharmaceuticals-healthcare-report-
q2-2013-new-report-available-243503.htm  [14 may 2013]. 
181 In 2012, the scope was extended to include new indications, new pharmaceutical forms and a new 
route of administration for already approved drugs (Circular 03/2012/TT-BYT, 2 February 2012; see also European Chamber of Commerce in Vietnam, 2013). 
182 This requirement is considered as a duplication of clinical trials as the products already had to meet 
stringent rules and rigorous protocol s abroad (e.g. the United States F ood and Drug Administration, and the 
European Medicines Agency). 
183 Circular No.08/2010/TT-BYT, 26 April 2010.  
184 The authorities indicated that this statement is not in line with the provisions of Ministry of Health 
Decision No.1906/2004/QD-BYT, 28 May 2004, promulgating the Regulation on parallel import of medicines for prevention and cure of human diseases (Europ ean Chamber of Commerce in Vietnam, 2013). 
185 These guidelines supersede: (i) Circular No. 06/2006/TT-BYT regarding the export/import of drugs 
and cosmetics; (ii) Circular No. 13/1998/TT-BY regarding the receipt, management and use of drug donations from abroad, and (iii) the regulations on vaccines and biological products in Circular 08/2006/TT-BYT stipulating the importation of vaccines and biological products, chemical, insecticidal or germicidal preparations for household and medical use, and medical equipment. Ministry of Health Circular No. 47/2010/TT-BYT, 29 December 2010; and Baker & McKenzie Asia Pacific Pharmaceutical Newsletter May 2011.  Viewed at:  
http://www.bakermckenzie.com/files/Publication/b880682d-734e-4386-889f-
33baa88eed2f/Presentation/PublicationA ttachment/4ee7bf7a-5171-42e8-bfe0-
5fbd9167d156/nl_ap_pharmaceutical_may11.pdf ). WT/TPR/S/287 • Viet Nam 
 
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  export/import of finished products by such compan ies have been issued though drafting allegedly 
began in 2008.186  
4.113.  Information technology hardware and electronics industries have grown rapidly, and in 
2010 were in the top five industries for export revenue. Their share in total merchandise exports 
more than doubled from 2007 to 2011, to 11.6%.187 In the same period, employment and labour 
productivity in the information and communication  technology (ICT) industry increased by 49% 
(269,000 persons) and 32.3% respectively.188 Nevertheless, local content accounted for only 10% 
of the total value added, as most domestic en terprises operate in manufacturing and assembling 
desktop computers; the modest local-content ratio reflects the need to import most accessories and parts due to high production costs and underdeveloped R&D affecting the industry's competitiveness.
189 The 2010 National Strategy on Transforming Viet Nam into an Advanced ICT 
country has as objectives: to build the ICT industry, especially software industry, digital content 
industry and IT services190, to become a leading economic sector, so as to contribute significantly 
to GDP growth and exports; to set up a countrywi de broadband information infrastructure; and to 
apply IT effectively in all socio-economic aspects, national security, and defence.191 According to 
the Strategy, annual growth in ICT industry income is forecast to reach at least two- to three-fold the growth rate of GDP; and by 2020, its contribu tion to GDP should grow from 8% to 10%.  
4.6  Services 
4.6.1  Features 4.114.  Although services is the largest sector  of the economy and the biggest contributor to 
overall growth, several services' sub-sectors remain  in the early stages of development, seemingly 
due to certain weaknesses, including comparably low growth rates, non-availability and inefficiency 
of modern services, a sometimes inadequate legal and regulatory environment, and outdated administrative practices for services markets.
192 To address these weaknesses, since 2011 a 
Master Plan for the Development of Services Sector  to 2020 has promoted the role of the sector in 
the economy.193 The Plan's general objective consists of raising the services sector up to 
international standards in terms of quality and competitiveness, and developing subsectors with 
great potential, high competitiveness and high added value; this is expected to serve the national 
industrialization and modernization process so as to ensure sustainable development and a gradual shift to a knowledge-based economy. General and subsector-specific growth targets are set and the Ministry of Planning and Investment submits a government programme of action for attaining 
them. 
4.115.  The share of services (excluding construction, energy, electricity, and water supply) in GDP 
remains relatively small and stable at about 37.2% (2012) compared with neighbouring countries 
                                               
186 Under Viet Nam's WTO accession commitments, since 1 January 2009, certain types of drugs are 
allowed for import by foreign-invested  companies; however, it  seems that the Ministry  of Health’s lack of 
guidance effectively impedes implementation of this commitment ( Baker & McKenzie Asia Pacific 
Pharmaceutical Newsletter May 2011 . Viewed at: http://www.bakermckenzie.com/files/Publication/b880682d-
734e-4386-889f-33baa88eed2f/Presentation/PublicationAttachment/4ee7bf7a-5171-42e8-bfe0-
5fbd9167d156/nl_ap_pharmaceutical_may11.pdf ). 
187 UNSD Comtrade database. 
188 General Statistics Office of Vietnam data. 
189 Vietnam+,  "IT firms struggle in their market", 6 October 2012. Viewed at: 
http://en.vietnamplus.vn/Home/IT-firms -struggle-in-their-market/201210/29056.vnplus  [31 October 2012]; 
and Vietnam Economic Forum,  "Electronic industry at the edge of breaking down", 25 September 2012. Viewed 
at: http://vef.vn/2012-09-25-nganh-cong-nghiep-dien-tu-chuc-cho-pha-san [26 November 2012]. 
190 A US$70 million programme on development of Vietnam's software industry was envisaged in 2007, 
to be funded from the central gove rnment budget (30%), local budgets ( 30%), and enterprise s, associations, 
ODA, etc. (40%). At the same time, a ₫1.3 trillion fund was approved fo r a programme on development of 
Viet Nam's digital content industry to 2010, to be funded from the state budget (40% from the central budget, 30% from local budgets) and contributi ons of domestic and foreign organi zations, enterprise s and individuals 
(30%) (Prime Minister Decision No: 51/2007/QD-TTg, 12 April 2007; and Prime Minister Decision No. 56/2007/QD-TTg, 3 May 2007). 
191 Decision No. 1755/QD-TTg, 22 September 2010, cited in NSCICT/ MIC (2011). 
192 World Bank (2011); WTO document WT/ACC/VNM/48, 27 October 2006; and Ministry of Industry 
and Trade and European Commission (2007). 
193 Decision No. 175/Q Đ-TTg approving the overall strategy on the development of Viet Nam's service 
sector through 2020, 27 January 2011. WT/TPR/S/287 • Viet Nam 
 
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  (Table 1.2); the sector's share in total employment rose slightly from 26.9% in 2007 to 30% in 
2011, but the lack of adequate manpower with te rtiary education and appropriate skillsets seems 
to be the main constraint to growth, exposing the long-term limits of a services-led growth process in Viet Nam.
194 Between 2007 and 2011, labour productivity grew by 6.6%; in 2011, it was 40% 
above the overall average level of the economy but 25% less than in manufacturing.195 In GDP 
terms, wholesale and retail trade (including repair of motor vehicles/motorcycles), public administration and defence, and accommodation and food services are the leading activities; other 
important activities are transport, and education and training.  
4.116.  Services facilitate all economic activities, including production and trade of goods.
196 While 
not always producing a direct export, the performance of the services subsectors remains a key component of overall international competitiveness. Viet Nam is the world's 56
th largest exporter 
and 53rd importer of services (2011).197 Trade in services remains a minor component of 
Viet Nam's foreign trade: in 2011 and 2012, exports of commercial services represented about 8.4% and 7.6% of total exports of goods and se rvices, respectively (Table 1.3); and imports 
(payments) of commercial services accounted for 10.9% and 9.6% of total imports of goods and 
services respectively. Between 2007 and 2011, the se rvices trade deficit grew almost fourfold, 
while the merchandise trade deficit was drastically reduced.  
4.6.2  Overall commitments under the Ge neral Agreement on Trade in Services 
4.117.  Viet Nam's services market has been liberalized as a result of its WTO accession, creating 
opportunities for rapid expansion across a range of sectors including retail and transportation.
198 
Its commitments under the GATS cover 11 major serv ices sectors (out of 12 services categories) 
and 105 (or more than 110 according to the authorities) subsectors (out of 155 subsectors 
categories) (section 2.3.1).199 In some cases, Viet Nam reserves the right to limit foreign 
ownership of service companies operating in the domestic market; for example, in some 
telecommunications services, the limits may be 49% or 65%, depending on the service. The 
authorities indicated that, 100% foreign ownership is permitted in most of the services sectors and subsectors under Viet Nam's GATS Schedule. The list of Article II (MFN) exemptions covering 
preferences extended under Viet Nam's bilateral investment treaties, as well as under agreements 
in audiovisual services, maritime transport, and certain services related to sea transport remains unchanged.
200  
4.118.  Upon accession to the WTO Viet Nam ad justed, modified, supplemented or promulgated 
relevant domestic laws and regulations to meet its commitments.201 The authorities indicated that 
they do not have any pending legislation in this area and there is no delayed implementation of 
                                               
194 World Bank (2011). 
195 Estimates based on the ratio of the services sect or's part of GDP (in 1994 prices) divided by its 
employment figures. 
196 Ministry of Industry and Trade and European Commission (2007). 
197 WTO Trade Profile of Viet Nam, September 2012. Viewed at: 
http://stat.wto.org/CountryProfile/WSDBC ountryPFView.aspx?Language=E&Country=VN . 
198 Certain services subsectors  that used to be closed to or rest ricted from foreign in vestment (such as 
distribution, transport, telecommunications, finance, etc.) were largely liberalized (despite some limited 
conditions and transitional periods of 3 or 5 years after WTO accession) (Pricewaterhouse Coopers, 2008, 
Viet Nam - A Guide for Business and Investment , May 2008. Viewed at: 
http://vietnam.polpred.com/u pload/pdf/vietnam_guide.pdf [29 August 2012]; and McKinsey Global Institute, 
2012, Sustaining Vietnam's growth: The productivity challenge , February. Viewed at: 
http://www.mckinsey.com/insights/mgi/research/asia/sustaining_growth_in_vietnam [19 December 2012]). 
199 Sector-specific commitments cover: business 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,  recreational, cultural and 
sporting services (Schedule CLX, WTO document GATS/SC/142, 19 March 2007; and WTO Trade Profile of Viet Nam, September 2012. Viewed at: http://stat.wto.org/CountryProfile/WSDBC ountryPFView.aspx?Language=E&Country=VN . See also WTO 
documents WT/ACC/VNM/48/Add.2, 27 October 2006, and GATS/EL/142, 19 March 2007). 
200 WTO document GATS/EL/142, 19 March 2007. 
201 These changes relate, inter alia , to: Law No 12/2008/QH12, 3 June 2008 containing amendments 
and supplements to Publishing Law; Law 10/2008/QH12, 3 June 2008 containing amendments and supplements to a number of articles of the Law on Oil and Gas; Law on Telecommunications 
No. 41/2009/QH12, 23 November 2009; Law No. 31/2009/QH12 containing amendments and supplements on 
a number of articles of the Law on cinematography; Law on Minerals No. 60/2010/QH12, 17 November 2010; Law No. 20/2012/QH13 providing amendments for th e Law on Lawyers No. 65/2006/QH11, 29 June 2006. WT/TPR/S/287 • Viet Nam 
 
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  GATS commitments. Despite the absence of new legal documents or amendment of existing laws 
and regulations in some sectors where commitments were undertaken, Viet Nam considers that it has fully complied with its undertakings through the legal text ratifying its Protocol of Accession.
202 
According to the authorities, in general, Viet Nam's laws and regulations in services sectors are 
consistent with the WTO and the GATS commitments. The effect of the GATS commitments 
depends on domestic implementing regulations.203 The authorities indicated that the complexity of 
Viet Nam's legal system does not affect its ability to comply with WTO commitments. 
4.6.3  Regional and bilateral agreements on services 
4.119.  Services are covered in Viet Nam's regional trade agreements (RTAs) within the ASEAN 
framework (Australia and New Zealand; China; and Korea, Rep. of, and with Japan, and the 
bilateral trade agreement with the United States, which pre-determined WTO accession 
commitments in this area (sections 2.3.2, 2.3.3 and 2.3.4, Table 2.1).204 All services chapters or 
agreements under these RTAs, which refer to GATS Article XV, follow the positive listing approach. 
The authorities indicated that Viet Nam went beyond its GATS commitments in some sectors and 
subsectors e.g. business services, healthcare services, tourism and travel-related services, and 
transport services. To some extent, Viet Nam's GATS+ commitments in regional trade agreements may be relatively more limited, as it undertook  more commitments than other Members at the 
same level of development upon WTO accession; this is not shared by the authorities.
205 In 
addition to the ASEAN Framework Agreement on Trade in Services (AFAS) (section 2.3.2), 
Viet Nam has 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 prac titioners (2009), medical practitioners (2009), 
accountancy services (2009), and tourism professionals (2009).  
4.6.4  Financial services 
4.6.4.1  Banking and finance 
4.120.  The financial services industry, which was progressively liberalized in line with the bilateral 
trade agreement with the United States (section  2.3.4) and GATS commitments, has grown rapidly 
in recent years.
206 Banking has played a major role in suppo rting the rapid growth of the economy, 
showing average annual growth in loans and de posits of 35% and 32%, respectively, over 
2003-10.207 Although accessibility to banking services has increased significantly in recent 
years208, Viet Nam has one of the lowest banking penetration levels among ASEAN nations, 
reaching less than 30% of its citizens.209 It also has a higher loan-to-deposit ratio than 
                                               
202 Resolution No 71/2006/QH11, 29 November 2006. 
203 Presentation by Dr. Dietrich Barth (under the Multilateral Trade Assist ance Project Vietnam II 
(MUTRAP II), "Implementing the WTO Commitments in the Area of Trade in Services: International Experience and Challenges for Vietnam", 23 January 2008, Hanoi. Viewed at: http://www.moit.gov.vn/vsi_portlets/UserFiles/Docm an/Upload/GATS_intl.experi ence%20VN%20challenges.pp
t; and Pricewaterhouse Coopers (2008). 
204 Prior to its WTO accession and as an ASEAN  and APEC member, Viet Nam offered certain 
commitments in some services sectors such as teleco mmunications, tourism, transportation, and financial 
services under the ASEAN Framework Agreement on Se rvices (AFAS). More information on Viet Nam's 
commitments under these regional agreements are available on the WTO RTAs database. Viewed at: http://rtais.wto.org/UI/PublicSearchByMemberResult.aspx?MemberCode=704&lang=1&redirect=1 ; WTO 
document WT/ACC/VNM/48, 27 October 2006; and Ministry of Industry and Trade an d European Commission 
(2007). 
205 Roy (2012). 
206 Equivalent to an estimated 357% of GDP in 2011, Viet Nam's financial asset base is smaller relative 
to its economy than in Malaysia (459%), China (612% ) and Singapore (951%), but larger than those of 
Thailand (348%), Indonesia (110%) an d the Philippines (285%) (EIU, 2012d, Financial services – Vietnam ). 
207 Banks have a critical role in economic development, providing payments services that make it 
cheaper and less risky to trade goods and services (State Bank of Viet Nam, 2010). 
208 The authorities indicated that: around 54.2 millio n bank cards had been issued by end 2012, up from 
14 million at the end of 2008; there were around 14,200 ATMs and 104,500 POS, up 6.8% and 50%, respectively, from end 2011; and the number of bankin g accounts had increased to 42 million, from around 
100,000 in 2000. 
209 A significant part of the population maintains its savings outside the banking system. Thus, there is a 
large untapped reservoir of domestic funding in Viet Na m. The authorities indicated that according to a World 
Bank study, banking penetration is more a factor of GD P per capita rather than of  any other factor, and that 
Viet Nam's banking penetration is above the level of most African countries, more than double the level of WT/TPR/S/287 • Viet Nam 
 
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  neighbouring Indonesia, Malaysia, the Philippines, and Thailand. Although not severely affected by 
the 2008-09 global financial crisis, in recent years the sector has been affected by the succession of asset price bubbles, monetary tighteni ng, and growth slowdown (Chapter 1).
210 
4.121.  Viet Nam's banking market is highly co ncentrated at the top, and fragmented at the 
bottom.211 In May 2013, the country was over-supplied, with 103 banks and numerous credit 
institutions, of which 5 are state-owned commercial banks (SOCBs) or are majority state owned, 2 state-owned policy banks (Social Policy Bank of Vietnam, Vietnam Development Bank), 
34 joint-stock commercial banks, 4 joint-venture banks, 5 wholly foreign-owned banks with locally 
incorporated subsidiaries
212, 53 foreign bank branches (excluding 4 foreign bank branches in the 
process of terminating activities), 12 financial leasing companies, 18 financial companies,  49 representative offices of foreign credit institutions, 1 Central People's Credit Fund, 1,122 local 
People's Credit Fund, and 2 microfinance institutions.
213 Many of the credit institutions remain 
small and urban-based, and their loan portfolios have grown briskly (see below); banking networks 
and services have been expanding rapidly. At end 2012, the country's four largest banks 
(Vietcombank, Vietinbank, Viet Nam Bank for Agriculture and Rural Development214, and Bank for 
Investment and Development of Viet Nam) were SOCBs or majority state-owned, and their share of total banking sector assets was slowly shrink ing, accounting for 48% of domestic lending (65% 
in 2009), 45% of capital mobilization (62% in 2009 ), and 40% of the total assets of the sector 
(58% in 2009). Several domestic banks are seeking opportunities abroad; in September 2011, the Vietinbank opened the first European branch of a Vietnamese bank in Germany, while others have 
opened branches in Cambodia and Lao (PDR).
215  
4.122.  Some progress has been made in transformi ng SOCBs into financial institutions capable of 
competing with the more efficient private commercial banks.216 Despite government intentions to 
partially privatize (equitize) all SOCBs, plans have moved slowly, missing target dates for full 
privatization (sections 1.4.2.2 and 3.4.8).217 The 2006 "equitization" programme, originally 
scheduled for completion in 2010, covered four of the five SOCB’s (VietinBank, Vietcombank, Mekong Housing Bank (MHB), Bank for Investme nt and Development of Viet Nam (BIDV)); the 
process of bringing in private ownership began in 2008.
218 By May 2013, 22.9% of shares in 
Vietcombank, 19.7% in Vietinbank, 4.2% in BIDV, and 8.7% inMHB had been sold to domestic institutional and individual investors. Reportedly, many of these shares are held by employees rather than outside investors and the Government still holds the remaining shares in the 
"equitized" banks.
219 In 2011, the Postal Savings Service Company, a Viet Nam Post and 
Telecommunications Company (VNPost) subsidiary, was merged with Lien Viet Joint Stock Commercial Bank and renamed Lien Viet Post Joint Stock Commercial Bank (LPB). LPB is 
authorized to provide limited banking services (e .g. savings and a number of payment services) at 
the post offices of VNPost.
220 On 22 April 2011, the State Bank of Viet Nam issued a regulation 
                                                                                                                                               
Pakistan and Egypt, comparable to most Central Am erican countries (e.g. Honduras, Panama, Guatemala), 
above the level of Indonesia, and only slightly below the level of Mexico and the Philippines (State Bank of Viet Nam, 2010; and Demirguc-Kunt and Klapper, 2012). 
210 World Bank (2011). 
211 U.S. Commercial Service (2011). 
212 These foreign banks are: ANZ Bank (of Austra lia), Shinhan Bank (South Korea), Hong Leong 
(Malaysia), along with HSBC and Standard Charte red (UK). The largest, HSBC, ranked as the 18th biggest bank 
by assets at end 2011 (EIU, 2012d),  Financial services - Vietnam , June, London). 
213 World Bank (2011); and Working Group of Economic and Commercial Counsellors of the EU (2011). 
214 The Viet Nam Bank for Agriculture and Rural Development is the largest, with total assets of 
₫470 trillion (US$24 billion). 
215 EIU (2012d),  Financial services - Vietnam . 
216 State Bank of Viet Nam (2010). 
217 U.S. Commercial Service (2011). 
218 The fifth SOCB under the programme, the Viet Nam Bank for Agriculture and Rural Development 
(Agribank) was transformed into a 100% state-ow ned limited liability company on 30 January 2011. 
219 According to the initial plan, up to 10% of the sh ares Vietcombank would be sold in 2006 and up to 
49% during 2007 to 2010; the State would retain a majori ty stake. The valuation process for Vietinbank was 
launched on 31 December 2005, and shares issued in the fourth quarter of 2006; it was to be equitized along the same lines as the Vietcombank. Vietcombank's pilot initial public offering (IPO), took place in December 2007 after years of delays. Vietinbank conducted an IPO in December 2008. Both banks plan to list on Viet Nam's stock market. They have not yet identifi ed a strategic investor due to unresolved obstacles in 
IPO pricing and the State remains the controllin g shareholder (WTO document WT/ACC/VNM/48, 
27 October 2006; and State Bank of Viet Nam, 2010). 
220 Any individual or organization that is not a credit  institution is strictly prohibited from performing 
banking activities, except for the transaction of security  deposit, securities dealin g of a securities company. WT/TPR/S/287 • Viet Nam 
 
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  setting the selection criteria for domestic and foreign strategic investors for "equitized" SOCBs.221 
Under these criteria, the investor should, inter alia,  be a foreign credit institution or foreign 
financial institution, with total assets of at least US$20 billion in the year prior to application, rated 
by an international independent credit rating organization, and not be a strategic shareholder, 
major shareholder or founding shareholder in any credit institution in Viet Nam.  
4.123.  From 2007, legislative changes have been undertaken in line with the banking sector 
strategic goal of reaching parity with leading ASEAN countries by 2020, and for fully implementing 
GATS commitments on banking services by 2011.222 As from 1 April 2007, foreign credit 
institutions have been permitted to establish a commercial 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.
223 Restrictions on deposit-raising activities in local 
currency (VND) of foreign bank branches were re moved on 1 January 2011, giving foreign bank 
branches national treatment. A 100% foreign-ow ned bank is accorded full MFN and national 
treatment with respect to establishment of commercial presence. Since accession, foreign credit 
institutions have been allowed to issue credit ca rds on a national treatment basis. The authorities 
indicated that the remaining restrictions are in line with the reservations in the WTO, including 
restrictions on the equity participation of foreign investors in commercial banks of Viet Nam224, and 
restrictions on the opening of transaction offices outside the head office of a foreign bank. The authorities consider that the presence of foreign financial institutions contributes not only to expanding and deepening its financial market, but also to enhancing competitiveness. In this 
context, domestic financial institutions are expected to adjust, innovate, and strengthen 
operational management and corporate governance. The prospect of greater competition from foreign banks should also improve the quality of banking in Viet Nam although the transition to a 
fully competitive market may take time.
225 
4.124.  Upon its WTO accession, Viet Nam progressively brought its regulatory regime for foreign 
bank branches, including minimum capital requirements, into line with commonly accepted 
international practice. The same legal capital requirements for foreign and domestic bank branches 
were set in 2008, and revised 2010 and end 2011.226 A key condition for establishing a branch of a 
foreign commercial bank in Viet Nam is that the parent bank should have total assets of more than US$15 million at the end of the year prior to application; this threshold has been raised to 
₫3 trillion (about US$154 million) from ₫1 trillion (about US$50 million) for a joint-venture bank, 
an SOCB, a cooperative or investment bank, and ₫5 trillion for development and social policy 
banks; minimal capital requirements for non-bank credit institutions range from ₫0.1 billion (Local 
People's Credit Fund) to ₫3 trillion (Central People's Credit Fund). As required by SBV regulations, 
small banks have been raising additional charter capital to meet the increased minimum capital requirement of ₫3 trillion since the end of 2011, a deadline extended one year because 18 smaller 
                                                                                                                                               
Article 8 of the Law on Credit Institutions; Deposit Insurance of Vietnam online information. Viewed at: 
http://www.div.gov.vn/Default.aspx?tabid=175&News=2042&CategoryID=4 . 
221 State Bank of Viet Nam Circular No. 10/2011/TT-NHNN, 22 April 2011.  
222 Document titled Diagnostic Report on the Banking Sector in Viet Nam  prepared for the State Bank of 
Viet Nam, June 2010. 
223 The State Bank of Viet Nam granted licences to wholly foreign owned banks for the first time in 
2008. For more information on market access issues see WTO document WT/ACC/VNM/48, 27 October 2006; Vo Tri Thanh and Pham Chi Quang (2008); and U.S. Commercial Service (2011). 
224 The shareholding of a single strategic investor an d affiliated persons of foreign strategic investors is 
limited to 15% of the charter capital of a joint-stock Viet namese bank, or 20% if specific approval is given by 
the Prime Minister, and the combined share of all fore ign investors to 30% (Decree No. 69/2007/ND-CP on the 
share buying of foreign investors in Vietnamese commer cial banks (Paragraph 1, Article 4). Some Vietnamese 
banks have already sold up to 20% of their charter capi tal to foreign strategic investors (e.g. HSBC, MayBank, 
Société Générale, United Overseas Bank, Standard Char tered Bank, ANZ, Sumitomo Mitsui Financial Group, 
Deutsche Bank) under the Prime Minister's approval (State Bank of Viet Nam, 2010; World Bank Investing Across Borders online database. Viewed at: http://iab.worldbank.org/Data/Explore%20Economies/Vietnam#/Investing-across-sectors ; and Working Group 
of Economic and Commercial Counsellors of the EU, 2011). 
225 EIU (2012d), Financial services - Vietnam . 
226 Decree No. 141/2006/ND-CP on the list of legal capital of credit institutions, as amended and 
supplemented by Decree No. 10/2011/ND-CP, 26 January 2011. WT/TPR/S/287 • Viet Nam 
 
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  banks were unable to meet the requirement.227 These conditions are considered to be prudential in 
nature.   
4.125.  The central bank, the State Bank of Viet  Nam (SBV), is the main financial regulatory 
agency and the sole supervisory agency; the SBV,  a ministerial-level agency of the Government, 
does not seem to be entirely independent, as it continues to operate under government 
oversight.228 A June 2010 Law on the State Bank of Viet Nam (effective 1 January 2011), which 
confirms its independence in the implementation, administration, and the selection of monetary 
instruments, is considered a big leap by the auth orities. The duties and power of the central bank 
were adjusted and expanded to be more in line with practical requirements, thus increasing the authority of the SBV in monitoring monetary policy instruments. More specifically, the 2010 Law expanded SBV's independence in some key areas of operation, such as the provision of liquidity 
support, monetary policy, the management of fo reign currency reserves and foreign exchange 
rates and issuance of banking licences, though its actions are subject to prime ministerial approval. It also confirmed its authority in overall banking inspection and supervision involving the 
whole process of monitoring the secured operations of credit institutions, i.e. from licensing to the 
development of safety regulations, monitoring, performance supervision, and intervention when 
problems arise, and handling institutions in danger of collapse.
229 It specified the SBV's 
accountability to the National Assembly, a step towards increased transparency in the decision-
making process. Supervisory and inspection functi ons over the financial sector are shared between 
the SBV, in charge of the monetary and banking sector, and the MOF for securities and insurance 
(section 4.6.4.2).230 A National Financial Supervisory Commission provides advice to the Prime 
Minister for coordinating the national financial market supervision (banking, insurance, securities) 
and assistance for monitoring the national financial market. 
4.126.  To ensure the st ability of the financial se ctor and promote its effectiveness, the IMF, the 
World Bank, and other international donors assist Viet Nam to implement reforms (see below) 
focused on the restructuring of joint-stock banks,  restructuring and privatization of the SOCBs, 
improving the regulatory framewor k, and enhancing transparency.231 The SBV has introduced 
more transparency in the system and to the public , as seen by the amount of data and information 
provided on its website and media coverage. However,  it still lags behind its peers in the region.232 
In 2011, an independent auditing company (Ernst & Young) assisted the SBV in its self-assessment of compliance with the 25 Basel Core Principles (BCPs). In 2012, the Government 
signed an agreement with the IMF and the World Bank on the implementation of the Financial 
Sector Assessment Program (FSAP) of Viet Nam in 4 phases (from October 2012 to May 2013).
233 
One of the main components of the FSAP is to assess the compliance with the 25 BCPs. Regarding 
Basel II standards, an SBV schedule provides for all standardized norms to be implemented by 
2015. By May 2013 the SBV was examining the feasibility of applying some Basel III rules/standards (e.g. the liquidity coverage ratio al ready included in a draft Circular on prudential 
ratios) while the implementation of other standard s/rules would depend on the capacity of credit 
institutions, supervisory capability of the SBV and the readiness of the stakeholders in the market. 
                                               
227 World Bank (2011). 
228 The authorities indicated that it is necessary to separate independence in terms of mechanism and 
organizational structure, from inde pendence in terms of operation (U.S. Commercial Service, 2011). 
229 Until recently the concept of bank supervision as  a tool for promoting the "safety and soundness" of 
the banking sector through managing risk was not enshri ned in the legal/regulatory framework largely due to 
over-emphasis on compliance with laws and regulations, particularly those related to achieving monetary policy objectives (e.g. interest rates controls and lending lim its). Until 2010, the SBV controlled interest rates on 
loans and deposits; a primary function of bank superv ision activities was to verify compliance with these 
controls (State Bank of Viet Nam, 2010). 
230 Until recently it seems that ther e was a lack of clarity and informat ion regarding how different bodies 
involved in supervision activities should coordinate, collaborate, and share information. The authorities clarified that the responsibilities of the Deposit Insurance Agency  of Viet Nam (DIV), a state-run financial institution 
protecting the legitimate right and in terests of depositors and contributing  to the sound operation of banking 
system, were supplementing rather than overlapping the operations of the SBV (State Bank of Viet Nam, 2010; 
and Prime Minister Decision No.218/1999/QD-TTg, 9 November 1999). 
231 Other ongoing projects aim to mo dernize the interbank market, crea te an international accounting 
system, and allow outside audits of major Vietnamese banks. 
232 World Bank (2011). 
233 According to the BIS this self-assessment has prov en helpful for authorities "to identify regulatory 
and supervisory shortcomings and set priorities to address them". The FSAP has been a useful analytical tool to 
understand strengths, weaknesses, and risks in the financial sector; it has been carried out in over 120 countries (State Bank of Viet Nam, 2010). WT/TPR/S/287 • Viet Nam 
 
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  4.127.  Since 2012, action has been taken in several areas (e.g. restructuring of the 
financial-banking system, financially weak banks, dealing in bad loans) to address the banking sector's safety and soundness issues.
234 The June 2010 Law on Credit Institutions (effective 
1 January 2011) contains provisions to enhance the operational soundness of credit institutions in 
line with international standards and practices. A new capital adequacy ratio (CAR) requirement of 
at least 9% was introduced in October 2010.235 According to the authorities, most of the credit 
institutions have complied with this requiremen t, and in 2012 the overall CAR was 13.7% (SOCBs 
at 10.28%, joint-stock commercial banks at 14%, joint-venture banks at 31.7%, foreign bank 
branches 30.7%, entirely foreign-owned banks at 20.4%).236 By May 2013, the SBV was 
developing a Circular for regulating prudential ratios in operations of credit institutions based on Basel I and II regulations; they include 6 prudential  ratios (the minimum CAR, 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 de posits) and 5 management items related to the 
safety ratings. Banks are required to guarantee all dong deposits; the maximum insured amount is 
₫50 million (nearly US$3,000) per account or individual per bank. The effectiveness of deposit 
insurance has not yet been tested. Vietnamese banks do not have BIS-tier ratings. All banks are required to establish controlling committees and institute internal audit functions, though it seems 
that, in practice, prudent banking practices are not always followed.
237 Increasingly, more SOCBs 
are audited by independent auditing firms.  
4.128.   Efforts have been made to address the unus ually rapid growth in bank lending intended to 
finance economic expansion, as well as issues relating to the supervision of credit extension.238 
According to Government data, between 2008 and 2011 the share of total outstanding loans to 
GDP rose from 90.2% to 111.6%, while according to SBV estimates based on Vietnamese accounting standards and loan classification, the share of NPLs to total outstanding lending 
increased
239 from 2.1% to 4.1%.240 In 2012, NPLs accounted for 20% (3.6% in 2008) of 
outstanding loans of financial companies and financial leasing companies, 4.7% (1.9% in 2008) of those of joint-stock commercial banks, 3.2% (2.5 % in 2008) of those of SOCBs, and 2.3% (0.6% 
in 2008) of joint-venture foreign banks and 100% foreign-owned banks. Many of the NPLs were, 
inter alia,  due to the economic slowdown of 2011, slow growth of industry and private 
consumption, a significant increase of inventories, weak financial capabilities of firms, losses from property speculation, inefficient SOEs, the high interest-rate regime put in place in 2011, and lack 
of experience in dealing with a surge in NPLs.
241 Deterioration might have been worse without the 
2009 fiscal stimulus measures (including interest rate subsidies), which made it easier to refinance existing loans (Box 1.1). In 2007, the SBV introduced rules for NPLs classification
242, which 
                                               
234 Circular No. 13/2010/TT-NHNN, 20 May 2010; and World Bank (2011). 
235 World Bank (2011). 
236 Furthermore, the ratio of short-term capital used as long-term loans rose from 7.58% (April 2012) to 
16.81% (September 2012). The credit-to-deposit ratio was 90.9% in September 2012, down from 94.7% in 
late April 2012 ( Saigon Times,  "Banking system health declining", 11 November 2012. Viewed at: 
http://english.thesaigontimes.vn/Home/business/financial-markets/26485/  [26 November 2012]). 
237 U.S. Commercial Service (2011). 
238 State Bank of Viet Nam (2010). 
239 This rise was partly due to the near bankruptcy and subsequent default of the Vietnam Ship Building 
and Industry Group (Vinashin), whic h may represent as much as 4% of outstanding loans in the banking 
system (U.S. Commercial Service, 2011). 
240 In 2012, the authorities acknowledged that they had no reliable estimate of the magnitude of NPLs. 
Should the SBV loan classification regulation be upgraded to international standards and provisioning rules, and enforced effectively, the NPL ra tio of the banking sector would be significantly higher. Some analysts 
estimate that NPLs could account for 15-20% of outstanding loans ( http://exporthelp.vn/index.php/financial-
banking/item/251-trade-and-project-financing ). By 2011, only three commercial banks were accredited by the 
SBV to apply Article 7 of Decision 493 on loan classifi cation, which is closer to international method of 
calculating NPLs (World Bank, 2011; IMF, 2012; U.S. Commercial Service, 2011; EIU online information, "The authorities turn their attention to the banking sector", 21 June 2012. Viewed at: http://country.eiu.com/article.aspx?articl eid=1279133712&Country=Vietnam&topic=Economy [12 July 2012]; 
and Reuters , "Vietnam cbank says 8.82 pct of loans are bad, pledges action", 13 November 2012. Viewed at: 
http://www.reuters.com/article/2012/11/13/vietnam-bank-loans-idUSL3E8MD0VT20121113 
[7 February 2013]). 
241 EIU online information, "The authorities turn their attention to the banking sector", 21 June 2012. 
Viewed at: http://country.eiu.com/article.aspx?articleid=1279133712&Country=Vietnam&topic=Economy 
[12 July 2012]. 
242 Viet Nam has one of the highest levels of non-performing loans in Southeast Asia ( Reuters , "Vietnam 
cbank says 8.82 pct of loans are bad, pledges action", 13 November 2012. Viewed at: WT/TPR/S/287 • Viet Nam 
 
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  approach international standards; it also allowed banks to accelerate loan terms and gave them 
more discretion in setting penalty interest rates on overdue debts.243 Since December 2008, all 
financial institutions have instituted internal credit rating and risk-assessment mechanisms. As from 2011, the authorities have aimed to slow the growth in domestic credit; in 2011, they set a 
target ceiling of 20% for credit growth ,which was revised in 2012, to 17% for healthy institutions, 
15% for "average operation" institutions, 8% fo r "below average operation" institutions, and 
zero for weak institutions. 
4.129.  According to IMF data, Viet Nam's interest rate spread ranged from 0.5 percentage points 
(November 2009) to 4.1 (July 2011) or from 2.7% (2009) to 4.9% (10 first months of 2012) on a yearly basis according to the authorities (Chart 4.4). The authorities indicated that the interest spread fluctuates without sudden rises or drop s, depending on business conditions, operating 
costs, risk-management capabilities of each credit institution to ensure secured and efficient 
operations. Since early 2010, the SBV has allowed commercial banks greater flexibility in setting lending interest rates, but it seems that banks do not have completely free rein (Chapter 1), and 
this impedes their ability to fully price-in risk. The authorities indicated that the State does not 
intervene in the lending activities of credit institutions and that, due to the limited development of the currency market in Viet Nam, the difficult context of the world economy, and the domestic 
macro-economy in recent years, direct monetary policy tools have been used to ensure the 
smooth currency market operations, and liquidity for banks, contributing to the achievement of the objectives of macroeconomic stability and inflatio n control. In addition, the rights of credit 
institutions on fixing interest rates for raising capital are stipulated in the Law on credit institutions 
(Article 91, paragraph 1), but in extraordinary cases the SBV has the right to impose interest rates 
temporarily (section 1.4.1.1). State-directed lending under non-commercial criteria remains a source of concern for state-owned commercial banks (SOCBs), which are licensed to operate as 
commercial banks (sections 3.3.4 and 3.4.1).
244 The authorities indicated that only 
two state-owned banks implement the preferential credit policies directed at supporting economic 
policies (Viet Nam Development Bank) and social policies (Viet Nam Bank for Social Policy) for, 
inter alia,  the poor, remote areas, and agriculture (section 3.4.1).  
Chart 4.4 Interest rate spread, January 2007-November 2012 
0.02.55.07.510.012.515.017.520.022.525.0Per cent
Deposit rateLending rate
Interest spread
 
Source:   International Monetary Fund online information. Viewed at: http://elibrary-data.imf.org/  
[16/04/2013].  
                                                                                                                                               
http://www.reuters.com/article/2012/11/13/vietnam-bank-loans-idUSL3E8MD0VT20121113 
[7 February 2013]. 
243 U.S. Commercial Service (2011). 
244 U.S. Commercial Service (2011). WT/TPR/S/287 • Viet Nam 
 
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  4.130.  The March 2012 Scheme for Restructuring the System of Credit Institutions in the Period 
2011–2015 envisages the development of a modern, sound, and efficient operation of the financial sector, compliant with international banking standards and practices.
245 The plan prescribes 
specific measures for SOCBs and commercial banks, as well as for sound temporary liquidity 
shortage, and weak banks. Concerning SOCBs it, inter alia,  provides for raising their capital 
(including from the Government) to meet Basel II requirements by 2015, and reducting their NPL 
ratio to less than 3%, according to domestic standards. The Plan also lists ways to strengthen 
credit institutions, financially and operationally via, inter alia,  the write-off of bad debts stemming 
from directed loans through the budget, reduction of the credit-to-deposit ratio to 85% at most by 2015, and the gradual withdrawal of SOEs' shar eholdings in the financial sector. In 2012, 
comprehensive inspections of commercial banks we re conducted, and nine were identified as 
priority for restructuring; so far, three ba nks have been merged, one bank incorporated, 
three banks have had their restructuring plans approved, one bank will be merged, and the 
restructuring plan of one remaining bank was being considered in May 2013. In 2013, the SBV was 
continuing work to, inter alia,  prepare a scheme for dealing with bad debt, establish a Viet Nam 
Asset Management Company (VAMC), and finalize a proposal on Banking Development Strategy up 
to 2020, for the Prime Minister's approval.  
4.131.  Viet Nam's capital markets, although still relatively under-developed, have grown in 
importance as sources of finance in recent years. However, the country's two stock exchanges, Ho Chi Minh City (HOSE, formerly HOSTC), and Hanoi (HNX, formerly HASTC), have suffered a 
boom-and-bust cycle since 2007 that has hit investor confidence. Foreign-invested enterprises now 
have the right to transform into local shareholding companies and be listed on the local stock 
market. There are around 100 brokerage firms in Viet Nam. The leading firms, in terms of brokerage market share, include Sai Gon Securities (10.9% market share as of 3
rd quarter 2012) 
and Ho Chi Minh City Securities (12.5%).246 At the end of 2012, 308 (275 in 2010) stocks were 
listed in the HOSE with total market capitalization of over ₫678 trillion, and 395 (363 in 2010) 
companies were listed in the HNX with total market capitalization of approximately ₫86 trillion.247 
The majority of listed firms are former SOEs that have undergone partial privatization 
(equitization). In 2009, a formal over-the-count er (OTC) equity market were established for 
unlisted firms that are deemed to be "public" (unlisted public companies, UPCOM), as well as a separate trading floor for government bonds. Fo reign equity in listed and UPCOM Vietnamese 
companies is limited to 49%, except for banks,  which are subject to 30% ownership limit. The 
State Securities Commission (SSC) under the MOF is, inter alia,  in charge of direct regulation and 
supervision of activities in securities and securities market, and management of public services in 
securities and the securities market, in accordance with applicable laws.
248 
4.132.  Corporate governance in the banking sector remains at an early stage as, inter alia,  banks' 
Boards of Directors do not provide a strong framework for effective oversight of company 
management and protection of stakeholder rights.249  
4.6.4.2  Insurance 4.133.  Viet Nam's insurance market has made great progress both in quantity and quality. 
Although still small compared with that in many other Asian countries, since WTO accession it has 
been growing rapidly from a low initial base, driven  by the growing presence of foreign companies, 
which has spurred local firms to become more competitive.
250 Between 2007 and 2013 (May) 
                                               
245 For more information on the banking reform plan see IMF (2012), Box 6. 
246 EIU (2012d), Financial services - Vietnam . 
247 U.S. Commercial Service (2011). 
248 State Securities Commission on line information. Viewed at: 
http://www.ssc.gov.vn/portal/page/portal/ ssc_en/int/fd . 
249 There seems to be a lack of clar ity regarding the roles of boards of  directors, superv isory boards and 
boards of management. The accountability of bank  boards and management are limited by many SBV 
regulations, decrees, decisions, and directives, which pr escribe policies and procedures over a wide range of 
banking operations and leave little initiative or discretion to individual bank managers (State Bank of Viet Nam, 2010). 
250 A series of state-owned insurance firms like the Vietnam Insurance Corporation (Bao Viet), Bao Minh, 
PetroVietnam Insurance (PVI) have performed initial publ ic offerings (IPO) and sold their stocks to foreign 
strategic partners (Pricewaterhouse Coopers, 2008; Wo rking Group of Economic and Commercial Counsellors 
of the EU, 2011; EIU, 2012d, Financial services - Vietnam ; and online information. Viewed at: 
http://blog.doingbusinessinvietnam.com/20 07/10/revolution-in-insurance-market_05.html ). WT/TPR/S/287 • Viet Nam 
 
- 137 - 
 
  licences were provided to eight new non-life insurance companies, nine new life insurance 
companies, and four brokerage firms. At end 2011, there were 29 non-life insurance enterprises, of which 2 SOEs, 15 joint stock (with former SOEs), and 10 foreign-invested; domestic firms, led by Bao Viet (74.2% of shares with MOF), the st ate-owned PetroVietnam Insurance (PVI), and the 
joint-stock Bao Minh (64.7% state-owned), control the bulk of the market. There were 
32 representative offices of foreign insurance firms in 2012.
251 At end 2011, 14 life insurance firms 
were operating in Viet Nam. There is a relatively high concentration in the insurance market.252 
According to the authorities, between 2003 and 2010 the total revenue of the industry grew by an 
average annual of 18.5%, and revenue from premiums and investment activities by 16.7% and 33.3%, respectively. In 2010, insurance premiums accounted for 1.98% of GDP; life and non-life insurance account for a roughly even shares of premiums. During 2007-12, the operations of all 
insurance companies were profitable.  
4.134.  There has been significant regulatory ch ange in the insurance sector. Foreign-invested 
insurance companies are accorded access to information on measures relating to or affecting the 
supply of insurance services in Viet Nam on a national-treatment basis.
253 In the event that the 
licensing criteria are inconsistent or incompatible with Viet Nam's GATS commitments, the commitments would prevail. Since January 2008, foreign-invested companies have been allowed 
to supply compulsory insurance services (including motor third-party liability coverage). The 
amended Law on Insurance Business, effective 1 July 2011, aims to align the current insurance legislation more closely with international practices and to codify some of Viet Nam's GATS commitments.
254 A December 2011 Decree, effective 15 February 2012, covers the provision of 
cross-border insurance services, establishment and operation of foreign insurance branches in 
Viet Nam, and legal capital requirements (see below).255 A range of regulations, circulars, and 
guidelines were issued to promote insurance in new sectors (e.g. compulsory fire and explosion 
insurance). The authorities indicated that life (or other) insurance purchased from domestically 
owned companies does not involve preferential personal tax treatment for contributions and 
benefits. 
4.135.  Insurance companies (particularly the foreign-invested ones) have set up strict risk-
management and internal control process.256 The Insurance Supervisory Authority under the MOF, 
which ensures supervision and implementation of operational requirements of the sector, conducts an average of nine inspections each year to detect and deal with violations in the insurance 
industry; the main violations include appointment of unqualified personnel, capital investment, and 
off-the-book reserved funds. Legal capital requirements are: ₫300 billion for non-li fe and for health 
insurance companies; ₫400 billion for non-life and for health re-insurance enterprises; ₫600 billion 
for life insurance enterprises; ₫700 billion for life and for health re-insurance enterprises; and 
₫1.1 trillion for enterprises operating life, non-life, and health re-insurance simultaneously.
257   
4.136.  Under the national strategy for the deve lopment of the insurance market between 2012 
and 2020, the legal framework is to be gradually completed to help insurers raise governance to 
international standards.258 Weak firms are to be restructured by 2015, and proper policies issued 
to help firms ensure capital security, risk cont rol, and information transparency between 2016 and 
2020. Insurers are urged to restructure investments and products, supplement capital to match 
risk levels, and assure payment capacity in ever y phase of their operation process. The MOF plans 
to further restructure the insurance sector by, inter alia,  classifying insurers into four groups: 
those with good liquidity and profitable business, those meeting prescribed solvency ratios but 
                                               
251 Talkvietnam,  "State insurers muddle through in tough times", 20 March 2012. Viewed at: 
http://talkvietnam.com/2012/03/state-insurers-muddle-through-in-tough-times/ [13 November 2012]. 
252 In 2011, the five largest non-life insurers, Bao Viet, PetroVietnam Insurance, Bao Minh, PJICO, and 
Post and Telecommunication Insurance (PTI) accoun ted for 23.9%, 20.6%, 10.4%, 9%, and 5.3% of total 
non-life insurers' premiums, respectively. The three larg est life insurers, Prudential Vietnam Assurance, Bao 
Viet Life, and Manulife Vietnam, a ccounted for 37.5%, 28.2%, and 11.1% of  total life insurers premiums, 
respectively (MOF, Association of Viet namese Insurers and Axco/Insurance Information Institute data cited in 
EIU, 2012d, Financial services – Vietnam ). 
253 WTO document WT/ACC/VNM/48, 27 October 2006. 
254 A.M. Best Company (2012). 
255 Decree 123/2011/ND-CP of December 2011 cited in A.M. Best Company (2012). 
256 Section 9, Chapter II of Circular 125/2012/TT-BTC. 
257 Decree No 46/2007/ND-CP and Decree 123/2011/ND-CP. 
258 Talkvietnam , "State insurers muddle through in tough times", 20 March 2012. Viewed at: 
http://talkvietnam.com/2012/03/state-insurers-muddle-through-in-tough-times/  [13 November 2012]. WT/TPR/S/287 • Viet Nam 
 
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  facing challenges, those unlikely to meet minimum solvency levels, and insolvent companies. On 
6 December 2012, the Prime Minister signed Deci sion No 1826/QD-TTg on approving the Project 
Restructuring Securities Market and Insurance Enterprises. Under the national strategy, the sector is to contribute 3%-4% of GDP by 2020.  
4.6.5  Communications 
4.6.5.1  Telecommunications 4.137.  Viet Nam has made great strides in upgrading its telecommunications systems.
259 
H o w e v e r ,  m a r k e t  g r o w t h  i s  e x p e c t e d  t o  s l o w  a s  the industry begins its transition to a mature 
market, bringing a new set of challenges to operators, including increasing usage, upselling (e.g. moving customers from pre-paid (95% of subscriptions) to post-paid), and increasing media/data-rich services.
260 Information (media) and telecommunications services account for 1.2% of GDP 
and 0.5% of total employment, indicating that labour productivity in the sector is more than 
double the national average (Table 1.2); labour productivity increased by 32.3% between 2007 and 2011.
261 Following a period of fairly rapid growth, almost all communes now have at least 
limited access to the fixed-line network, compared  with less than 60% a decade ago. Mobile phone 
services continue to contribute to most of the revenue of local telecommunication companies.262 
The mobile penetration rate is estimated to be around 70-75%; mobile-phone service providers 
have been cutting tariffs and subscription fees in th e face of rising competitio n, making it harder to 
raise sufficient funds to develop their networks.263 Broadband penetration is low (7% in 2011), but 
by 2016, more than 16% of the population is ex pected to be connected to the Internet via 
broadband.   
4.138.  The Government has a strong interest in the telecoms sector, which is seen as a public 
service that the State should control to ensure equal and affordable access for its citizens.264 
According to the authorities, participation in all market segments is open except for: listed 
telecommunications services with network infrastructure in which the State has dominant 
share-ownership or capital contribution; services subject to cross-ownership regulations; and areas with foreign investment limitations set in accordance with Viet Nam's commitments under 
relevant international treaties.
265 The market, which is gradually opening, in line with Viet Nam's 
GATS commitments, is dominated by two state-owned operators, the Vietnam Post and Telecommunications (VNPT), and the Ministry of De fence-owned Viettel; jointly they control more 
than 80% of the market in each of the telecoms subsectors. In May 2013, the relevant Ministries 
were preparing plans in line with Prime Minister 's Decision No. 929/QD-TTg approving the scheme 
of restructuring the state-owned enterprises, focu sing on economic corporations and groups for 
2011–15. VNPT holds the largest market share in both fixed-line and mobile networks, and is the 
parent company of two mobile-phone operators; in 2010, its revenues accounted for 64.8% of 
total net revenue of the post and telecommunications sector.
266 More specifically, out of 
eight licensed operators, VNPT remains the major landline telephone carrier in this market with a 
market share of about 71% as of end 2012 (and th e country's second-largest company, just after 
the Vietnam Bank for Agriculture and Rural Developm ent in 2007), followed by Viettel with almost 
28%. As of end 2012, there were six licensed mobile-phone network operators in Viet Nam, as well as virtual and infrastructure-leased service providers
267; nearly 90% of the mobile phone 
                                               
259 Between 2010 and 2011, Viet Nam's ranking in the ITU Development Index rose from 86th to 81st out 
of 155 countries (International Telecommunication Union, 2012). 
260 The mobile phone market was saturated in 2010 with  a penetration rate of 174.4% (Pricewaterhouse 
Coopers, 2011; and EIU, 2011), Telecoms and technology - Vietnam . 
261 General Statistics Office of Vietnam (2011), Table 20. 
262 According to General Statistics Office of Vietnam data, as of December 2010, Viet Nam had 
approximately 170.1 million telephone subscribers (90.5% mobile and 9.6% fixed line) (U.S. Commercial Service, 2011). 
263 EIU (2011), Telecoms and technology - Vietnam . 
264 Chun Lee (2011). 
265 Decision No. 55/2011/QD-TTg, 14 October 2011; Article 3 of Decree No. 25/2011/ND-CP, 
6 April 2011, providing implementation guidelines for a number of articles of the Law on Telecommunications; and Ministry of Information and Communications Circular No. 10/2012/TT-BTTTT. 
266 U.S. Commercial Service (2011). 
267 These mobile phone operators were: Viettel Mobile  (owned by Viettel Corp oration); MobiFone (VNPT 
subsidiary); Vinaphone (VNPT subsidiary); Vietnamobile (owned by Hanoi Telecom, Hong Kong-based 
Hutchison Telecommunications International Limited); Beeline, GTEL Mobile Joint Stock Company; and S Fone (owned by state-owned SPT). At end 2012, main companies' market share were: Viettel 45.5%; Viet Nam WT/TPR/S/287 • Viet Nam 
 
- 139 - 
 
  market is divided between three major state-owne d network operators, Viettel Mobile, MobiFone, 
and Vinaphone. This oligopoly situation makes it difficult for small players, as they lack the market scale or volume to compete effectively on low average revenue per user (ARPU) and narrow margins.
268  
4.139.  The Ministry of Information and Communica tions (MIC) is the sector's policy-making and 
regulatory body; it, inter alia,  sets consumer tariffs for telecommunications services and 
interconnection charges between operators.269 No independent regulatory authority is in place. 
4.140.  The 2001 Development Strategy for Viet Nam Post and Telecommunications Industry by 
2010 with a vision toward 2020, backs developmen t of modern infrastructure and services to 
match the achievements and performance levels of other advanced countries in the region.270 Its 
objectives include the supply of modern, high flux, high quality, diversified, and abundant 
telecoms services nationwide. The authorities mobilized large investment for the construction and 
development of telecommunication networks. Viet Nam's first communications satellites, Vinasat-1 and Vinasat-2 (US$250 million and US$206 million, respectively) were launched into orbit in 
April 2008 and May 2012, enhancing th e capabilit y to provide wireless transmission, broadcasting, 
telephone, and other services for the development of the economy. As from 2007, Viet Nam has allowed joint ventures with foreign partners to provide telecommunications services related to 
network infrastructure, such as telephone services, packet-switched data transmission services, 
circuit-switched data transmission services, tele x services, telegraph services, facsimile services, 
and private leased circuit services.
271 Non-discrimination is guaranteed in granting access to and 
use of public telecommunications transport networks; public telecom services providers have an 
obligation to allow other public telecom services providers to interconnect with their network under 
equitable and reasonable conditions.272 Vietnamese enterprises that are not state-owned or 
state-controlled are eligible for licences to provide non-facilities-based services in Viet Nam and to 
form joint ventures with foreign firms. The equity caps applicable to foreign investment in both 
fixed and mobile communications as well as virtual private networks are set at 49% in facilities-based services (i.e. infrastructure), and 70% (from 2010) only if they have passed the 
initial three-year investing period in Viet Nam in non-facilities-based services (i.e. telephony 
services with no network infrastructure).
273  
4.141.  The November 2009 Law on Telecommunications and Radio Frequency, which entered into 
force in July 2010, constitutes a framework for tele communications regulations, with many specific 
implementing rules and regulations to be develope d in the future. The Law contains provisions for 
a pro-competition regulatory regime, covering abuse of market power regulation, interconnection rules, and access to essential facilities; it is expected to open up potential new opportunities for 
trade and investment by foreign firms, and co ntrol the aggressive promotional campaigns by 
mobile operators.
274 The authorities indicated that competition in the telecommunications market 
should be in accordance with the provisions of both the 2004 Law on Competition and the 2009 
Law on Telecommunications. Mobile phone operators may no longer own particular prefixes, and 
the policy could reduce the quantity of idle or discarded numbers. In May 2013, the MIC was also 
                                                                                                                                               
Mobile Telecom Services Company (VMS-MobiFone) 22.1%; Telecom Services Company Vinaphone 20.5%; 
Hanoi Telecom Joint Stock Company 7.74%; and Gtel Mob ile Joint Stock Company 4%. Five run global systems 
for mobile communications (GSM) networks (VinaPhone , MobiFone, Viettel, Vietnamobile, and Beeline), and 
one runs code division multiple ac cess networks (CDMA, no longer used). Out of 87 licensed firms, the 
broadband market is shared amongst three major Intern et service providers (ISPs): VNPT (74%), FPT Telecom 
(11.2%), and Viettel (9.4%) (December 2010) (U.S. Commercial Service, 2011). 
268 EIU (2011),  Telecoms and technology - Vietnam ; and Pricewaterhouse Coopers (2011). 
269 MIC online information. Viewed at: http://english.mic.gov.vn/int ro/Trang/MainFunctions.aspx ; and 
Pricewaterhouse Coopers (2011). 
270 Pricewaterhouse Coopers (2011). 
271 Chun Lee (2011). 
272 Ordinance on Posts and Telecommunications en acted in October 2002, cited in WTO document 
WT/ACC/VNM/48, 27 October 2006. 
273 Decree 121/2008/ND-CP, 3 December 2008 cited in World Bank Investing Across Borders online 
database ( http://iab.worldbank.org/Data/Explore%20Economies/Vietnam#/Investing-across-sectors ); and 
Pricewaterhouse Coopers (2011). 
274 Working Group of Economic and Commercial Counsellors of the EU (2011); and U.S. Commercial 
Service (2011). WT/TPR/S/287 • Viet Nam 
 
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  studying the possibility of mobile number portabil ity with a set of guidelines that were to be 
released initially in 2011.275  
4.142.  Under the 2009 Law, the Government retain s control over fixed telephone service charges 
but operators have the freedom to determine retail tariffs for other services. Nevertheless, 
dominant operators for "important" services, such as mobile services and the Internet, must 
pre-register their proposed tariffs with the Department of Telecommunications under the MIC before applying them.
276 In this way, the MIC controls the retail tariff of significant market power 
(SMP) operators in each segment (e.g. VNPT, Viettel). All others operators set their own retail 
tariff, based on the market mechanism, but the MIC decides on the basic and important interconnection charges which greatly affect to the telecom market.
277 In 2010, the MIC required 
all mobile service providers to apply no more than a 15% discount over their previous year's 
tariffs; while it approved a proposal by the top three SMP mobile phone operators (Viettel, 
Mobifone, Vinaphone) to reduce their tariffs by up to 15%.278 In 2008, the average mobile phone 
communications tariff was US$0.07 per minute, lower than in the Philippines, Chinese Taipei, and 
Malaysia, but higher than in Pakistan; Thailand; China; India; and Hong Kong, China.279 As of 
May 2013, the average rate for mobile services was approximately ₫1,280/minute while the local 
phone service charge is ₫200/minute. Overall, the affordability of telecommunication services 
seems to have improved in recent years.280  
4.143.  To meet universal services obligations  (USO), since 2004 the Viet Nam Public Utility 
Telecommunication Service Fund (VTF) 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.
281 The 
VTF financial support consists of direct 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 telecommuni cations infrastructure, Internet, and other 
facilities. All eligible operators contribute to the VTF fund.
282 Since 2007, their contribution has 
been collected at the following rates: 3%  (down from 5%) on revenue from mobile 
telecommunications services; 2% (down from 4%) on revenue from international long-distance 
telephone services and international long-distance leased line services; 1% (down from 3%) on revenue from domestic long-distance telephone services, domestic long-distance leased line 
                                               
275 Pricewaterhouse Coopers (2011). 
276 The authorities indicated that the floor price for international calls and the system of allocation of 
calls by quota among six Vietnamese carriers were elim inated in January 2006. Each company has the right to 
decide its own international telephone service char ges and must notify them  to the Department of 
Telecommunications (Articles 54 and 55 of the 2009 Law on Telecommunications and Article 38 of Decree 
No. 25/2011/ND-CP on 06 April 2011; and Chun Lee, 2011). 
277 Tariff regime under Prime Minister Decision 39/2007/Q Đ-TTg cited in Ministry of Information and 
Communications (2009). 
278 Pricewaterhouse Coopers (2011). 
279 Ministry of Information and Communications (2009). 
280 In 2011, Viet Nam ranked 106th (out of 161 countries) in the ITU Information Communications 
Technology Price Basket (IPB); between 2010 and 2011, its IPB value dropped from 6.4 to 6.0. ITU's IPB indice 
is a composite affordability measurement based on fi xed telephone, mobile cell ular, and fixed broadband 
Internet services. The IPB provides an indication of ho w affordable services are, across countries, and over 
time (International Telecommunication Union, 2012; and ITU press release, "Broadband prices drop by more 
than 50%; high-income economies of Euro pe and Asia-Pacific are most afford able markets; fast  Internet still 
out of reach in developing world", 16 May 2011. Viewed at: http://www.itu.int/net/pressoffice/press_releases/2011/15.aspx  [15 November 2012]). 
281 Traditionally, VNPT has been the only operator to meet the USO in both the cities and rural areas; 
new operators have chosen to provide services only in areas that are profitable (e.g. Hanoi and Ho Chi Minh City). VNPT has always cross-subsidized domestic se rvices with revenues from international and domestic 
long-distance services, including USO, but with the declining price trend and emerging competition from new entrants, there has been concern about the gradual 'dry ing-up' of funding sources for universal services. The 
new operators, however, were concerned about being overcharged for universal services because their USO 
contribution was collected as a mark-up of the interconnection charges payable to VNPT (Prime Minister's Decision No. 191/2004/QD-TT, 8 Novemb er 2004; and Chun Lee, Roy, 2011). 
282 The 12 enterprises that have been obliged to cont ribute financially to the VTF since 2005 are: VNPT; 
Viet Nam Mobile Telecom Services Company; Viettel Group; EVN Telecom; Saigon Post and 
Telecommunications Joint Stock Company; Dong Duong Telecom Joint Stock Company; CMC Telecom 
Infrastructure Joint Stock Company; Gtel Mobile Joint Stock Company; FPT Telecom Joint Stock Company; Viet Nam Multimedia Corporation; and Viet Nam Maritime Communication and Electronics LLC (VISHIPEL).  WT/TPR/S/287 • Viet Nam 
 
- 141 - 
 
  services. The VNPT, Viettel, EVN Telecom, VISHIPEL receive financial support from the VTF, which, 
by and large, completed its specific objectives and targets during 2005-10. 
4.144.  Despite Viet Nam's success in telecommunications structural reform, there are still matters 
to be addressed, including continuing structural reform through market liberalization, state 
dominance in the sector, creation of an independent regulator, and reducing regional development 
disparity in access to telecommunication services.283 
4.6.5.2  Postal services 
4.145.  Viet Nam's postal sector has undergone considerable regulatory and structural 
improvements. The 2002 Ordinance on Posts and Telecommunications constitutes the basic legal framework for a stable and developed postal market, stimulating other operators beside Viet Nam Post to run a postal service business. The 2010 Postal Law, based on market-oriented economic 
principles, promotes international integration, creating more opportunities to new operators. Postal 
operators are either specialized in postal services or doing business in several sectors (mostly in transportation); at end 2012, there were 74 license d or certified postal operators, of which 
24 providing international postal services, 3 foreign-invested enterprises, and 5 foreign postal 
enterprises hiring domestic enterprises as agencies.
284 Although the postal market was open, in 
2012 it was dominated by Viet Nam Post (36.3% of the market), DHL-VNPT (15.4%), SPT (8.9%), 
Viettel Post (8.2%), and TNT-Viettrans Express Worldwide Ltd (8.2%); Viet Nam Post, a VNPT 
subsidiary, also provides the USO postal services. Besides Viet Nam Post, other postal operators mainly offer express delivery services focusing on  developed regions, big cities, and industrial 
parks. Cross-border services of international co uriers (e.g. FedEx, OSC, Airborn) are provided 
under agent contract with domestic postal operators. The authorities envisage promoting fair 
competition and gradual deregulation, as well as passing a new legal framework ensuring a stable and orderly postal market.  
4.6.5.3  Broadcasting and film industry 
4.146.  The Government controls, inter alia,  the programming of all broadcast media, through the 
MIC. The state-controlled national television provider, Vietnam Television (VTV), operates a 
network of nine channels with several regional  broadcasting centres. VTV's film production 
company, the Vietnam Television Film Center (VFC ), makes television movies and mini-series; it 
seems that only about 30% of its entertainment programming is made locally and the rest is imported and dubbed in Vietnamese. Vietnam Multimedia Corporation or Vietnam Television 
Corporation (VTC), state-owned corporation under  the MIC (previously Ministry of Post and 
Telematics), operates five national channels and is the only provider of digital terrestrial television (DTT), a subscription service. In 2010, about 3.3 m illion satellite dishes were installed (or 18% of 
households with television set).
285 Most people in large cities subscribe to a cable network; the 
largest network is VCTV (a division of VTV), followed by Ho Chi Minh City Television (HTV), Hanoi TV (HCTV), and Saigon Tourist Cable Service (S CTV) - a joint venture between VTV and Saigon 
Tourist company.   
4.147.  Viet Nam's pay television policy is, inter alia,  aimed at: facilitating the transmission of 
radio and television channels to serve the political , information, and propaganda tasks of the Party 
and the State; encouraging the development of domestic programmes and channels to contribute 
to raising people’s intellectual level, meeting their "healthy" cultural and spiritual needs, 
conserving the nation's historical and cultural traditions, and building and protecting the socialist Vietnamese Fatherland; closely managing the contents of pay television programmes channels 
under the press law; managing technical infrastructure for pay television under the 
telecommunications law; and ensuring the development of the pay television market with fair competition while meeting people's diversified needs for entertainment suitable to Viet Nam's 
                                               
283 Chun Lee (2011). 
284 Operators specialized in providing postal services include: Viet Nam Post (VNPost), P&T Express 
(PT-EMS), Viettel Post Jsc (Viettel Post), Hop Nhat Viet Nam Jsc, Noi Bai trading and express delivery (Netco), 
etc. Those doing business in several sectors include: Hai Phong Bus Transportation Ltd; Hoang Long 
Transportation Ltd, Mai Linh Express Transportation Jsc, Viet Duc Transpor tation Ltd, etc. (NSCICT/MIC, 2011). 
285 NSCICT/MIC (2011). WT/TPR/S/287 • Viet Nam 
 
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  "practical conditions".286 In line with these policy objectives as from 15 May 2013, a Prime 
Minister's Decision has required pay television broadcasters (movie channels; news channels; channels offering scientific and education programmes and documentaries; and channels offering entertainment, sport, and music) to provide tr anslation into Vietnamese by a licensed press 
agency before airing, with the exception of live  sporting events. The Government indicated that 
international news channels were also exempt from the translation requirement.
287 Nevertheless, it 
seems that all foreign news channels are currently broadcast with a half-hour delay, to allow 
sensitive content to be blocked, if necessary. The Decision also states that commercials running on 
foreign channels must be made in Viet Nam. Pay television groups consider the Decision's requirements as, inter alia,  impractical, and prohibitively expensive.  Vietnam Satellite Digital 
Television Company (VSTV), a pay-tv operator launched by French broadcaster Canal+ and VTV, 
suspended retransmission of 21 TV channels including CNN, BBC, and Star World as soon as the 
2013 Decision took effect. 
4.148.  Viet Nam's film industry has failed to deliver competitive products in a foreign-dominated 
market, despite substantial investment.
288 The 2006 Cinematography Law was amended in 2009 
to, inter alia,  remove certain conditions tied to film imports.289 Since July 2010, the Amended 
Cinematography Law has required local film showings to be at least 20% of local cinemas' total 
film showings, and have priority during the popular 6 pm to 10 pm sessions every day.290 
According to the Law, cinema owners must screen at least two Vietnamese films in a week, but Vietnamese filmmakers often only make ten film s a year (17 in 2007); in the first 6 months of 
2010, local filmmakers released only 8 films, while 60 foreign films were screened at the cinemas. 
In line with the provisions of the Cinematography Law, the National Film Board under the 
Department of Cinema of the Ministry of Culture and Information (MOCI) censors or bans movies due, inter alia,  to their sensitive and violent scenes. Between 2008 and 2011, former entirely 
state-owned film production and distribution enterprises were "equitized" and transformed into 
joint-stock or limited liability companies with state capital. The largest film importer representing 55% of total foreign films imports, is a joint-stock company. The 30% state-owned FAFILM 
Vietnam
291 and another two companies are now the main importers and distributors of foreign film 
videos.292 
4.6.6  Transport 4.149.  The physical infrastructure of the transp ort sector has been much improved in recent 
years, albeit trailing the rate of economic growth. Further improvements in road and port facilities 
                                               
286 Prime Minister Decision No. 20/2011/Q Đ-TTg, 24 March 2011 
(http://asemconnectvietnam.gov.vn/lawdetail.aspx?lawid=1927 ) and No. 18a/2013/Q Đ-TTg, 29 March 2013; 
Straits Times,  "Vietnam satellite TV provider drops fore ign news channels", 16 May 2013. Viewed 
at: http://www.straitstimes.com/breaking-news/se-asia/story/vietnam-satellite-tv-provider-drops-foreign-
news-channels-20130516 ; and Associated Press,  "Vietnam provider drops foreign news TV channels", 
16 May 2013. Viewed at: http://news.yahoo.com/vietnam-provider-drops-foreign-news-tv-channels-
075347225.html . 
287 According to the authorities, the provisions on ma nagement of pay television do not apply to foreign 
broadcasting companies, therefore these companies do not have to implement any legal procedures set under 
the Prime Minister Decision No. 20/2011/Q Đ-TTg and No. 18a/2013/Q Đ-TTg. Only the press agencies holding 
licences of "press operation in the television industries " and satisfying the conditions set in Article 14 of 
Decision No. 18a/2013/Q Đ-TTg are responsible for editing foreign programme channels broadcasted on pay 
television. 
288 Viêt Nam News , "Film industry tries to break Hollywood’s hold on audiences", 28 November 2008. 
Viewed at: http://vietnamnews.vn/Life-Style/Film/182795/film -industry-tries-to-break-hollywoods-hold-on-
audiences.html  [15 November 2012]. 
289 These conditions required that the number of imported films each year by film production 
enterprises, Vietnam Television, and provincial-level radi o-television stations should not exceed two times that 
of films produced by these enterprises (Cinematography Law No. 62/2006/QH11, 29 June 2006, and Law Amending the Law of Cinematography No. 31/2009/QH12, 18 June 2009). 
290 Viêt Nam News , "Gov't regulation supports local films", 28 June 2010. Viewed at: 
http://vietnamnews.vn/Life-Style/Film/200965/govt-regulation-supports-local-films.html  [15 November 2012]. 
291 FAFILM, previously the country's largest film dist ributor with a monopoly over video importation and 
distribution until 2011, imported 120 foreign films in 2011 and 170 in 2012 (until October) ( Viêt Nam News , 
"Foreign films fuel cinema expansion", 31 October 2012. Viewed at: http://vietnamnews.vn/Life-
Style/232112/foreign-films-fuel-cinema-expansion.html  [15 November 2012]). 
292 WTO document WT/ACC/VNM/48, 27 October 2006; and Motion Picture Association of America, Inc. 
requesting public comment on the proposed Trans-Pacific Partnership Agreement, 11 March 2009. Viewed at: http://www.mpaa.org/Resources/8bca1d1c-2d0f-443c-8ae4-25fefb96ec40.pdf  [15 November 2012]. WT/TPR/S/287 • Viet Nam 
 
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  are expected, as transport infrastructure deficien cies remain one of the key issues for steady 
economic and social development in Viet Nam.293 In 2012, transportation and storage accounted 
for 3.9% of GDP and 2.9% of total employment (Tab le 1.2). Labour productivity in transportation 
and storage increased by 87.9% during 2007-11.294 In the same period, Viet Nam's freight 
transport increased by 49.7% (volume); cargo is mostly transported by road (74.3%) and inland 
waterways (17.6%), and to a lesser extent by sea (7.2%) and railways (0.8%).295 Passenger 
transport grew by 54.2%. 
4.150.  The March 2009 "Adjustments to the Tran sport Development Strategy up to 2020 with a 
Vision toward 2030" follows an ambitious, forw ard-looking, and top–down planning strategy.296 To 
implement this strategy, specific policies were to be formulated for transport development; raising capital; transport industrial development; international integration and competition; reform; new 
sciences and technologies; and human resources development.  
4.151.  The authorities indicated that some new WTO-consistent regulations have been 
promulgated in maritime transport services business (2007), and multimodal transport services 
(2009).
297 In 2007, the Ministry of Transport (MOT), together with the Ministry of Planning and 
Investment, developed a list of transport infrastruc ture projects calling for investment, especially 
foreign investment.298 Financing has been one of the main problems for developers of transport 
infrastructure, as conditions offered for private investors (BOTs, PPP schemes) still seem less 
favourable or attractive than those in other countries. Nevertheless, between October 1993 and December 2011, transport and ICT were the major beneficiaries of ADB concessional sovereign loans; they accounted for 21 projects (out of 114)  and 30.7% of the financing made available by 
the ADB.
299  
4.152.  According to the MOT, the sector's five co re problems, which arise mainly from insufficient 
resources and inputs as well as policy, institutional, and operational inefficiencies, comprise: an 
incomplete and disintegrated institutional system and development plans; unsatisfactory quality 
and capacity of transport service; lack of quality and quantity of transport infrastructure in both 
urban and rural areas; insufficient state budget and other financial sources; and complications 
from the regional and global economy.300 
4.6.6.1  Maritime services 4.153.  Viet Nam has the highest density of vessel traffic globally; it is a gateway to the sea for 
landlocked neighbouring countries such as Lao PDR and the hinterlands, including north-western 
Thailand and south-eastern China.
301 The total tonnage of the Vietnamese fleet more than doubled 
between 2005 and 2010 (from 3.4 million DWT to  7.2 million DWT) making it the world's 
20th largest fleet; it consisted of 579 vessels, of which 335 cargo, 142 bulk carriers, 48 petroleum 
tankers, and 23 chemical tankers.302 The overwhelming majority of  these ships are small (under 
10,000 DWT each) and lack modern technology (scarc ity of skilled professionals also constitutes a 
problem).303 The state-owned shipping company, Vinalines, accounts for close to half of the fleet's 
total tonnage. The average age of Vietnamese ships was about 12 years. At end 2010, several 
hundred ships of the Vietnamese fleet served on  international routes, but few reached regions 
outside East and South-east Asia. The overseas cargo shipping market is dominated by foreign firms (90% cargo, 100% passengers, in 2011), which have steadily increased their shipping fees 
and surcharges, thus adversely affecting the international competitiveness of, inter alia,  seafood 
                                               
293 Pricewaterhouse Coopers (2008); and Working Group of Economic and Commercial Counsellors of 
the EU (2011). 
294 General Statistics Office of Vietnam (2011), Table 20. 
295 General Statistics Office of Vietnam online data ( http://www.gso.gov.vn/default_en.aspx?tabid= 
473&idmid=3&ItemID=12778 , and http://www.gso.gov.vn/default_en. aspx?tabid=473&idmid=3&ItemID= 
12787 ) as of October 2012. 
296 Asian Development Bank (2012). 
297 Decree No.115/2007/ND-CP, 5 July 2007, and Decree No.87/2009/ND-CP, 19 October 2009. 
298 Decision No.1290/2007/QD-TTg, 26 September 2007. 
299 IMF (2012). 
300 Asian Development Bank (2012). 
301 Bharat Book Bureau (2010). 
302 Central Intelligence Agency online information, World FactBook . Viewed at: 
https://www.cia.gov/library/publication s/the-world-factbo ok/geos/vm.html . 
303 Working Group of Economic and Commercial Counsellors of the EU (2011). WT/TPR/S/287 • Viet Nam 
 
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  companies, cashew nut exporters, and wooden fu rniture manufacturers. According to the Vietnam 
Ship owners' Association, only 8% of foreign trade is carried by the domestic fleet, and to ease the reliance on foreign fleets, it is necessary to upgrade the domestic fleet so as to handle up to 30% of imports and exports in the near future.
304 The Master Plan on Development of Vietnam's Ocean 
Shipping Up to 2020 and Orientations Towards 2030 stipulates that by 2020 the Vietnamese fleet's 
total tonnage should reach 11.8-13.2 million DWT and the volume of goods transported should 
increase to 215-260 million tonnes.305 
4.154.  According to the authorities, all policies and laws concerning support (e.g. subsidies) to 
domestic transport companies were removed upon Viet Nam's accession to the WTO. 
4.155.  The Vietnam Maritime Bureau (Vinamarine) is committed to removing the Vietnamese fleet 
from the foreign ports' black list of ships that do not meet the safety standards and need to be 
examined.306 The October 2011 MOT Instruction No. 09 emphasized the need to strengthen 
measures to minimize the number of ships detained at foreign ports under PSC (Port State Control). Though the number detained dropped in 2011-12, partly due to tightened control by the 
state management agencies and the economic  downturn, the number of Vietnamese ships 
examined did not (434). Vietnamese ships were mostly examined at Chinese ports (87 examined, 18 detained) and Indonesian ports (101 and 6).  
4.156.  Ships flying the Vietnamese flag have been given the opportunity to regain part of the 
domestic container shipping market, which in certain ship categories is apparently controlled by foreign shipping firms. According to the authorities, in 2011 36% of overall inland cargo transportation was undertaken by foreign vessels  while the all passenger transportation was 
ensured by vessels flying the Vietnamese flag.
307 Under the 2005 Viet Nam Maritime Code, priority 
is granted to Vietnamese ships in the carriage of cargo and of passengers and luggage between 
Vietnamese seaports; foreign sea-going ships may be permitted to perform this carriage whenever 
Vietnamese ships are not in a position to do so.308 A June 2012 MOT document stipulated the 
temporary halt of the presence of ships under foreign flags in the domestic container shipping market.
309 From 1 January 2013, extension of expired licences and the granting of new licences to 
the ships under foreign flags have been suspended. In 2012, foreign-flag fleets serving inland 
routes included 20 ships with a total tonnage of 500,000 DWT. According to Vinamarine, there were some 1,700 ships flying the Vietnamese flag running on domestic routes; only 30 were container ships that could satisfy 30% of the demand.
310  
                                               
304 Viêt Nam News , "High shipping fees eat businesses' profits", 6 April 2012. Viewed at: 
http://talkvietnam.com/2012/04/high-shipping-fees-eat-businesses-profits-2/  [19 November 2012]. 
305 Dynamic development of the Vietnamese shipbuilding sector was to facilitate this growth, but in 2010 
the state-owned shipbuilding company Vinashin (section 4.6. 4.1) ran into serious financial difficulties and failed 
to meet payments to some international creditors. This  was a serious setback to the Government's shipbuilding 
development plans (Decision No. 1601/QD-TTg cited in Working Group of Economic and Commercial Counsellors of the EU, 2011). 
306 According to Vinamarine, in the first six months of 2012, only 30 Vietnamese ships were detained at 
foreign ports (14 fewer than that of the same period of 2011). During this period 457 defects were discovered, including 92 serious defects, leading to the decisions to detain the ships; 68.82% related to equipment and 
facilities, 15.05% to papers and documents, and 16.13% to  the crew regulations. Ship owners and crew have 
not been following the provisions of the International Safety Management Code (ISM) well; and some captains 
do not know the IMO convention ( Viêt Nam News , "Vietnamese fleet vows to escape from the black list", 
20 July 2012. Viewed at: http://talkvietnam.com/2012/07/vietnamese-fleet-vows-to-escape-from-the-black-
list/ [19 November 2012]). 
307 Viêt Nam News , "Domestic fleet content with new regula tion on container shipping market", 
12 July 2012. Viewed at: http://talkvietnam.com/2012/07/domestic-fleet-content-with-new-regulation-on-
container-shipping-market/  [19 November 2012]. 
308 Foreign-flagged ships are allowed to operate in do mestic routes only for:  carriage of over-length 
cargo, over-weight cargo or other types of cargo by sp ecialized sea-going ships; prevention of and aid in 
natural disasters, epidemics or fo r urgent humanitarian relief; and ca rriage of passengers and luggage from 
tourist passenger ships to shore and vice versa (Article 7 of Law No: 40/2005/QH11 (Viet Nam Maritime Code), 14 June 2005). 
309 Document No. 5036/BGTVT-VT, 28 June 2012. 
310 Nevertheless, it seems that the service quality of do mestic fleet is lower than  that of the ships under 
foreign flags, especially the containe r ships of international well known sh ipping groups like Maersk or NYK 
Lines. Domestic ships charge higher fees than foreign ones, and most Vietnamese vessels cannot satisfy delivery-time requirements ( Viêt Nam News , "Domestic fleet content with new regulation on container shipping WT/TPR/S/287 • Viet Nam 
 
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  4.157.  Vietnamese ports have developed rapidly in recent years, and their official growth 
forecasts (in terms of throughput) are impressive.311 In 2009, Viet Nam's ports moved nearly 
197 million tonnes of cargo (2.7 times the level in 1999), including over 5 million 20-foot equivalent (TEU) container units (5.3 times more than in 1999).
312 Cargo handled in Viet Nam-
based seaports expanded more than 20% a year during 2001-08, of which the vast majority was 
handled in ports in Hai Phong, Quang Ninh, and Ho Chi Minh City. Port container handling productivity is reportedly not comparable  with international seaport productivity.
313   
4.158.  Most of the 80 seaports and river ports are state-owned and none has contracted port 
operations to international seaport management companies through a leasing contract as a result of international tender.
314 Two ports handling containers are privately owned and managed. 
Vietnamese seaports are subject to the supervision of the MOT, Vietnam Maritime Administration, 
and provincial governments. They are also subject to a diversified system of management by 
provincial governments and large state-owned companies such as Vinalines, Vinashin, and PetroVietnam (sections 4.4.2.2, 4.5.1, and 4.6.4.2 insurance). Some ports also operate under 
joint-venture agreements, but foreign companies never hold controlling stakes. 
4.159.  The December 2009 Master Plan on Development of Vietnam's Seaport System Through 
2020, with Orientations Toward 2030 delineates a detailed and very ambitious schedule for the 
improvement and expansion of the country's seaports; it aims to meet market demand on cargo 
volume and vessel size from/to ports while maintaining the country's competitiveness in the global integration process.
315 
4.160.  New modern ports are incurring big losses, and problems persist in the programming of 
the seaport system in Viet Nam, including "unreasonable" (inefficient, irrational) investment 
allocation.316 Critical decisions, like total port capacity, have been continuously altered with little 
regard to market supply and demand.317 The problem of capacity under-utilization has been 
exacerbated by the Government's failure to complete the necessary supporting infrastructure.318 
The licence to develop multiple container terminals was allocated on administrative grounds, decoupled from market principles. Since there has been no investment to develop the ports in the 
north, the seaports in Hai Phong City have be come overloaded. Meanwhile, the newly developed 
modern ports in the south, including the container port complex Cai Mep – Thi Vai opened in 2008, have not run at full capacity (up to 40% capacity) due to the lack of goods and insufficient road 
infrastructure.   
4.161.  To address competitiveness, Viet Nam's general policy has been to try to reduce port fees 
to facilitate trade and investment activities.
319 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 se aport areas, clearance fee) are decided by the 
facility operators in line with the relevant regulations (sections 3.2.5 and 3.4.9).320 According to 
these regulations, discounts are available dependin g on factors including the cargo capacity of the 
vessel and the frequency of voyages at the same port. From January 2012, ships of over 
50,000 DWT that dock at the international transit ports of Cai Mep – Thi Vai have benefited from a 40% reduction in the maritime security fee and tonnage charge, and a 50% reduction in the pilotage fee (from levels in place since January 2009); this is an extension of the decision on 
                                                                                                                                               
market", 12 July 2012. Viewed at: http://talkvietnam.com/2012/07/domestic-fleet-content-with-new-
regulation-on-container-shipping-market/  [19 November 2012]). 
311 Working Group of Economic and Commercial Counsellors of the EU (2011). 
312 Bharat Book Bureau (2010). 
313 Tomczyk et al. (2011). 
314 Tomczyk et al. (2011). 
315 Decision No. 2190/QD-TTg of December 2009 cited in Working Group of Economic and Commercial 
Counsellors of the EU (2011); and Bharat Book Bureau (2010). 
316 Viêt Nam News,  "Vietnam puzzled about how to develop port system", 3 October 2012. Viewed at: 
http://talkvietnam.com/2012/10/vietnam-puzzled-about-how-to-develop-port-system/  [19 November 2012]. 
317 VDR (2012). 
318 Shortcomings include: insufficient access to deep -water terminals and contai ner-servicing facilities; 
insufficient connectivity with other transportation networks; inadequate logistic and auxiliary facilities; mediocre service quality; shortage of skilled profes sionals; substandard harbour management and excessive 
administrative burdens (Working Group of Economic and Commercial Counsellors of the EU, 2011). 
319 WTO document WT/ACC/VNM/48, 27 October 2006. 
320 MOF Decision No. 98/2008/QD-BTC, 4 November 2008, and accompanying regulation.  Viewed at: 
www.gdt.gov.vn/wps/wcm/.../148735_QD98_08_BTC.doc? . WT/TPR/S/287 • Viet Nam 
 
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  preferential fees and charges released by MOF in October 2010.321 No data were available from the 
authorities on the budgetary cost of preferential fees and the competitiveness of Vietnamese ports 
compared with other ports in the region. 
4.6.6.2  Air transport 
4.162.  Aviation is a top priority for development, since a strong aviation market is viewed as a 
prerequisite for rapid economic growth.322 The distance between Hanoi and Ho Chi Minh City 
(1,760 km), coupled with the country's geography and its comparatively poor road and rail 
infrastructure, makes domestic demand for air travel very high.323 The overall aviation market 
returned to double-digit growth in 2010, with cargo shipments and passengers surging up to 30% 
and 20%, respectively, year-on-year; the trend continued in 2011 and 2012 with increases of 3.2% and 12.6%, respectively, compared to 2010, and 11% and 7% compared to 2011. Total air 
cargo throughput was nearly 530,000 tonnes in 2012 (460,000 tonnes in 2010). The national flag 
carrier, Vietnam Airlines, accounted for over two th irds of the domestic passenger market and over 
40% of international flights. According to IATA, Viet Nam will become the world's 
third-fastest-growing market for internatio nal passengers and freight by 2014, and the 
second-fastest in the number of domestic passengers.
324  
4.163.  Vietnam Airlines (VNA), the state-owned national flag carrier, owns 100% of Vietnam Air 
Service Company (VASCO), a regional airline in so uthern Viet Nam; 70% of the low-cost carrier 
Jetstar Pacific Airlines (JPA)325; and 49% of the Cambodian national airline Cambodia Angkor Air. 
VNA also holds a 23% stake in Vietnam Air Leasin g Company (VALC), a joint venture. VNA and its 
affiliate, VASCO, make up 71% of the domestic  aviation market. As of February 2013, VNA 
operated a fleet of 80 aircraft (69 in 2011) with an average age of 5.9 years (6.9 in 2011). 
Between 2012 and early 2013, VNA domestic and inte rnational networks spread significantly, with 
7 international and 3 domestic routes launched to increase its daily flights to approximately 300. 
With the core activity of the airline being passenger transportation, VNA also earns revenue from 
catering and the maintenance and overhaul of aircraft, through a number of subsidiaries (see below).
326 VNA, VASCO, and JPA are the three major air carriers in Viet Nam; in 2012, VNA 
accounted for more than 40% of international passenger traffic and 69.4% of domestic 
passengers, while JPA accounted for 14.8% of passengers carried on domestic flights. In May 2013, VNA was preparing for "capitalization" ("equitization", privatization), and the first stage of the process had been agreed and signed.  
4.164.  Viet Nam has reduced regulation for air transport and developed its market by opening it 
through bilateral and multilateral agreements. The sector is governed by the 2006 Law on Aviation 
(effective 1 January 2007). A cap of 49% is set for foreign ownership of aviation businesses.
327 
The authorities indicated that they encourage foreign airlines to operate in Viet Nam in order to 
create a dynamic and competitive air transport environment. Viet Nam has been offering incentives to encourage local and foreign airlines to increase their frequencies and open new 
routes by: reducing airport charges and fees by 25% over (a maximum of) 36 months for new 
                                               
321 MOF Decision No 98/2008/Q Đ-BTC, 4 November 2008, effective 1 January 2009; MOF Circular 
No. 41/2012/TT-BTC, 9 March 2011; and MOF Circular No. 164/2010/TT-BTC effective 5 January 2012; and Viêt Nam News , "MOF accepts preferential fees to rescue Cai Mep – Thi Vai port developers", 27 March 2012. 
Viewed at: http://talkvietnam.com/2012/03/mof-accepts-preferential-fees-to-rescue-cai-mep-thi-vai-port-
developers/  [19 November 2012]. 
322 U.S. Commercial Service (2011). 
323 Lamond (2011). 
324 IATA Press Release No. 1, "Aviation Opportunities for Vietnam", 14 January 2011. Viewed at: 
http://www.iata.org/pressroom/pr/pages/2011-01-14-01.aspx  [20 November 2012]. 
325 In February 2012, VNA boosted its stake in the low-cost carrier Jetstar Pacific Airlines to 70%, with 
Qantas holding the balance ( CAPA Centre for Aviation , "Jetstar Pacific to become Vietnam Airlines' low-cost 
carrier in salutary move to both", 23 February 2012. Viewed at: http://centreforaviation.com/analysis/jetstar-
pacific-to-become-vietnam-airlines-low-cost-carrier-in-salutary-move-to-both-68641  [4 December 2012]). 
326 The maintenance and overhaul of aircraft is handled by Vietnam Airlines Engineering Company 
(VAECO) (100% owned subsidiary); catering by Noibai Catering Services Joint-Stock Company (100% owned subsidiary) and Vietnam Air Caterer (65% owned joint ve nture), who cater airlines that use VNA's hubs. VNA 
also controls and operates Vietnam Airlines Cargo, usin g the airline's luggage hold on its passenger fleet, as 
well as a number of dedicated aircraft.  
327 Law on Aviation, 29 June 2006, and Decree No. 76/2007/ND-CP, 9 May 2007, cited in World Bank 
Investing Across Borders database. Viewed at: http://iab.worldbank.org/Data/Explore%20Economies/Vietnam#/Investing-across-sectors . WT/TPR/S/287 • Viet Nam 
 
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  airlines or airlines introducing new routes; lessening capacity entitlement controls to the major 
international airports; opening up secondary intern ational airports; and adjusting air traffic routes 
in order to shorten flight times. The duration and discount rates depend on the location of the airport.
328 Between 2007 and 2012, Viet Nam issued licences for eight new carriers. Vietnamese 
airlines/sale agents can freely choose computer reservation system (CRS) providers for their 
operation. As of May 2013, there are 41 foreign passenger airlines and 10 cargo airlines with 
regular scheduled flights to and from Viet Nam; another 30 air carriers are expected to enter the 
market over the next ten years. Cabotage is allowed in air transport services under certain 
conditions and upon approval of the Minister of Transport; no such approval has been granted so 
far. 
4.165.  There are 22 airports in operation throughout Viet Nam, including three major international 
airports, the Noi Bai Airport in the north (Hanoi), Danang in the centre, and Tan Son Nhat in the 
south (Ho Chi Minh City).329 Six further international airports (Can Tho, Chu Lai, Da Lat, 
Hai Phong, Hue, Nha Trang) are planned. Comp rehensive development plans, under the Master 
Plan 2020 include an upgrade of most airports330, to include buildings (terminal) and runways, as 
well as modern navigation equipment and security protection, to raise standards to acceptable international levels. At present, the government budget can only meet about 20% of the total 
investment required for airport development; for 2005-10, there were calls for investment of more 
than US$1.3 billion for airport modernization, expa nsion, and rehabilitation in order to have an 
efficient network of 20 airports. Most investment in  airport projects is expected to come from ODA 
loans from foreign governments, such as Japan, as well as financing from the private sector. So 
far, there have been few foreign investors due, inter alia,  to limited profits.
331 From 
15 January 2011, foreign investors have been allowed to participate in these projects in the form of BOT, BT, build-operate-own (BOO), or public-private partnerships (PPPs). A three-year discount 
scheme was implemented in April 2011, to provide relief on charges to airlines at Viet Nam's major 
airports.
332 According to IATA, it is important to have a cost-efficient infrastructure following ICAO 
principles of consultation with users, transparency, cost recovery, and non-discrimination in order 
to maximize the full potential of aviation. 
4.166.  All of Viet Nam's air service agreements (ASA) seem to remain restrictive; many have 
limits on capacity, designated airports, and pricing, although the authorities view most as leading to progressive liberalization in these fields.
333 None of the 61 ASAs in place can be considered open 
skies.334 In the ASEAN context, Viet Nam has signed five agreements on air services.335  
4.167.  VNA is increasingly becoming involved in the maintenance, and overhaul of aircraft. 
Maintenance work is carried out by its subsidiary  VAECO, established on 1 January 2009, which is 
capable of performing maintenance and technical services on many aircraft types for VNA and 
other airlines. Self-handling, mutual handling, and/or third-party handling are allowed without restriction at major airports, and national carriers may have their aircraft repaired/maintained 
abroad at their discretion.   
4.168.  According to IATA, to attain its grow th objectives and maintain competitiveness, 
Viet Nam's aviation industry policy should focus on global standard technology for air traffic 
                                               
328 In the last quarter of 2010 a number of foreign airlines launched new services, including Turkish 
Airlines, LOT Polish Airlines, and Qatar Airways (MOF Decision No. 3031/QD-BTC, 27 November 2012; Decision No. 426/QD-BTC, 25 February 2010; Decision No. 2604/ QD-BTC, 31 October 2011; and U.S. Commercial 
Service, 2011). 
329 The Tan Son Nhat airport is the largest in the country, handling about 70% of international 
passenger traffic (U.S. Commercial Service, 2011). 
330 Working Group of Economic and Commercial Counsellors of the EU (2011). 
331 Lamond (2011). 
332 IATA Press Release No. 1, "Aviation Opportunities for Vietnam", 14 January 2011. Viewed at: 
http://www.iata.org/pressroom/pr/pages/2011-01-14-01.aspx  [20 November 2012]. 
333 InterVISTAS-EU Consulting Inc. (2009). 
334 Viet Nam signed a cargo open-skies agreement with the United States in 2008. Governments 
typically require reciprocity when nego tiating the terms of an ASA, therefore,  it is possible that restrictions 
within an ASA are not due to the policies of the Vietna mese Government but to those of the partner country. 
335 The ASEAN Framework Agreement on Services and its Packages of Commitments on Air Transport 
Services; the ASEAN Multilateral Agreement on the Full  Liberalisation of Air Freight Services; the ASEAN 
Multilateral Agreement on Air Services; the ASEAN Mu ltilateral Agreement on the Full Liberalisation of 
Passenger Air Services; and the Air Transport Agreemen t between the Governments of the Member States of 
the ASEAN and the Government of the People's Republic of China. WT/TPR/S/287 • Viet Nam 
 
- 148 - 
 
  management (i.e. ADS-B and performance-based navigation (PBN)), more cost-efficient airports 
and air navigation services, and greater efficiency through IATA's Simplifying the Business programme (e.g. in e-freight).
336 The authorities indicated that the 1999 Convention for the 
Unification of Certain Rules for International Carriage by Air (Montreal Convention), on 
compensation for the victims of air disasters, has been reviewed by ministries, and it is expected 
to be approved during 2013. 
4.169.  The aviation industry is under the prin cipal jurisdiction and management of the Civil 
Aviation Administration of Vietnam (CAAV), a government agency reporting to the MOT.337 Its 
functions include: formulating plans and programm es to develop civil aviation; drafting legal 
normative documents, regulations, and standards relating to civil aviation; information dissemination and education on aviation law; avia tion safety and security; airport, aircraft, and 
flight management; environmental protection; search and rescue; flood prevention; ratifying air 
fares proposed by airlines operating in Viet Nam; research and development; handling complaints and/or violations of aviation law; administrative reform; and financial and personnel affairs. Under 
the existing regulations, slot allocation is carried  out by the CAAV in accordance with the principles 
of: publicity, transparency, and non-discrimination; observance of the physical capacity of the airports; convenience and effectiveness; and alig nment to international experience. Following the 
merger of the Northern, Middle, and Southern Airports Corporations into the ₫14.7 trillion Airports 
Corporation of Vietnam (ACV), a single state-owned entity has been responsible for a variety of tasks since February 2012, including the use and development of airport facilities and equipment 
(e.g. land and buildings, the security and safety of aviation activities, and the collection of 
airport-related revenue), and importing and exporting aviation equipment.
338 Air traffic control is 
provided by Vietnam Air Traffic Management (VATM).  
4.6.6.3  Land transport  
4.170.  Road transport is Viet Nam's most common means of moving around (section 4.6.6). Viet 
Nam has an extensive road network and a relatively high overall road density.339 The vast majority 
of the network (84%) is local roads, classified as district, commune, or urban roads. Domestic and 
regional connectivity is also limited by the network's limited capacity. Overall, the road network 
consists predominantly of unpaved, narrow, local road sections; therefore, traffic is greatly affected by environmental and weather conditio ns. Viet Nam made significant progress during 
2006–10 in improving the efficiency of its road and highway networks, including links connecting 
to Cambodia, Lao PDR, and China, and is beginni ng to improve the expressway network with the 
assistance of the ADB and other development partne rs. A recent major reorganization of the roads 
and expressways subsector within the MOT, in cluding the replacement of the Vietnam Road 
Administration (VRA) by the Directorate for Road s of Vietnam (DRVN), and the establishment of 
the Expressway Management Office in April 2011. An  exclusive expressway administration agency  
to be created under the DRNV, tentatively called the Vietnam Expressway Administration (VEA), 
will be responsible for the development of the ex pressway network, administration of expressway 
projects, and execution of state manageme nt tasks over the expressway network.
340 As road 
management becomes increasingly decentralized, local governments will require countrywide capacity development and additional local government budgets. 
4.171.  The railway sector is particularly small compared with other modes of transport 
(section 4.6.6) and is apparently losing competitiveness against road transport. In 2007, the railway system carried only 6.5% of all passeng ers. The number of passengers declined from 2006 
to 2007, while the freight tonne-kilometres ratio increased by about 34%, reflecting an increase in 
longer-haul traffic, in which rail is more cost-e fficient than trucking, given the state of the roads.
341 
Since 2003, the Vietnam Railways Administration (VNRA) has been responsible for planning and 
supervising all railway projects while the Vietnam Railways Corporation (VRC) is in charge of 
                                               
336 IATA Press Release No. 1, "Aviation Opportunities for Vietnam", 14 January 2011. Viewed at: 
http://www.iata.org/pressroom/pr/pages/2011-01-14-01.aspx  [20 November 2012]. 
337 Lamond (2011). 
338 Decision No. 238/QD-BGTVT of February 2012 cited in CAA Press Release, "Establishment of a new 
Airports Corporation in Vietnam", 28 February 2012. Viewed at: http://www.caa.gov.vn/eDefault.aspx?tabid=8&catid=506&articleid=8569  [21 November 2012]; and Lamond 
(2011). 
339 Asian Development Bank (2012). 
340 Decision No. 892/QD-BGTVT, 24 April 2012. 
341 Asian Development Bank (2012). WT/TPR/S/287 • Viet Nam 
 
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  business operations; both entities are under the MOT.342 VRC pays 10% of its gross revenues to 
VNRA as a track-access charge. These funds are generally used for infrastructure maintenance. The sector is governed by the 2005 Law on Railways, effective 1 January 2006.
343 A foreign party 
must enter into a joint venture with VNRA or VRC to operate in the sector; the foreign party's 
capital contribution may not exceed 49%. No foreign firms operate in the railways sector. The 
Master Plan on Railway Transport Development of Vietnam up to 2020 with a vision towards 2030 contains several objectives on railway tran sport, industry, infrastructure, and safety.
344 It aims at, 
inter alia,  increasing passenger usage and freight transport to 13% (20% by 2030) and 14% (20% 
by 2030) each by 2020. The railway industry is  anticipated to manufacture and assemble 50-60% 
(50,000-53,000 coaches and freight wagons) of domestically required new wagons and locomotives for local use and export, to be funded via ODA, government bonds, the state budget, 
and private investment.  
4.6.7  Distribution services 4.172.  The Vietnamese distribution market has caught up very quickly with global markets, 
progressing from a simple, rudimentary market to a key economic sector contributing 15% to GDP 
(approx. US$11 billion). This is largely due to WTO accession, which increased the activity's growth four-fold from 2006.
345 The number of supermarkets increased 20% in the five years 
following WTO accession, while the number of sho pping centres rose by 72%. Following the recent 
opening of the market (see below), the number of foreign-owned retail outlets has been on the rise; there are five big foreign retailers with a minimal, albeit growing, market share.
346 Foreign-
invested firms have to compete with domestic brands; in 2012 ten domestic retailers were in the 
top 500 largest retailers in Asia.347 According to the MOIT, in 2012  there were 638 supermarkets 
and 117 shopping centres.348 In 2011, there were more than 8,500 traditional markets accounting 
for 80% of the total retail market349; the retail sales of goods and services remained dominated by 
non-state firms (86.9%), while state-owned and foreign-invested enterprises, respectively, 
accounted for 14.6% and 2.5% of the market.350   
4.173.  Under the November 2012 MOIT fast-track growth master plan for modern shopping 
facilities to become the main channel for boosting retail sales, retail growth at these facilities 
should reach 26%-27% annually by 2015 and around  29%-30% by 2020, while the share of retail 
                                               
342 Working Group of Economic and Commercial Counsellors of the EU (2011). 
343 Law on Railways, 4 June 2005, cited in World Bank Investing Across Borders online database. Viewed 
at: http://iab.worldbank.org/Data/Explore%20Eco nomies/Vietnam#/Investing-across-sectors . 
344 Master Plan (revised) on Railway Transport Development of Vietnam up to 2020 with a vision toward 
2030, October 2012. Viewed at: http://www.houston.org/uploadedFiles/Railway.pdf  [22 November 2012]. 
345 In 2007, Viet Nam ranked 4th (after India, the Russian Federation, and China) out of the world's 
30 most attractive retail markets; in 2008, it surpassed India to become the most attractive retail market in the world but fell progressively to 32
nd in 2012 (European Commission online market access database. Viewed 
at: http://madb.europa.eu/madb_barriers/barriers_details.htm?barrier_id=105361&version=2 ; AT Kearney 
Global Retail Development Index lists. Viewed at: http://www.atkearney.com/cons umer-products-retail/global-
retail-development-index ; and Intellasia  online information. Viewed at: http://www.intellasia.net/foreign-
retailers-leave-vietnam-but-still-eyeing-the-market-246716 ). 
346 These foreign suppliers include wholesaler Metro, general retailer BigC, industrial commodities 
specialist Parkson, supermarkets & retail stores oper ator Lotte, and own-brand- name seller Luis Vuitton 
(European Commission online market access database. Viewed at: http://madb.europa.eu/madb_b arriers/barriers_details.htm ?barrier_id=105361&version=2 ). 
347 Saigon Daily,  "Ten Vietnamese businesses among top 500 retailers in Asia-Pacific", 
17 September 2012. Viewed at: http://www.saigon-gpdaily.com.vn/business/2012/9/102750/ 
[23 November 2012]; Intellasia , "Vietnam's retail market was degraded to 14th position globally", 
20 January 2011. Viewed at: http://www.intellasia.net/vietnams-retail-market-was-degraded-to-14th-position-
globally-146516 [27 August 2012]; and Vietnamnet , "Fahasa among Top 500 Asia-Pacific retailers", 
28 August 2012. Viewed at: http://talkvietnam.com/2012/08/business-in-brief-288/ [23 November 2012]. 
348 Viêt Nam News , "Struggling supermarkets face fierce foreign rivalry", 27 August 2012. Viewed at: 
http://vietnamnews.vnagency.com.vn/Economy/229310/struggling-supermarkets-face-fierce-foreign-
rivalry.html  [30 August 2012]. 
349 Viêt Nam News , "VN to expand modern retail system", 16 December 2011. Viewed at: 
http://vietnamnews.vnagency.com.vn/Economy/218725/vn-to-expand-modern-retail-system.html 
[30 August 2012]. 
350 General Statistics Offi ce data. Viewed at: 
http://www.gso.gov.vn/default.aspx?tabid=393&idmid=3&ItemID=13183 . WT/TPR/S/287 • Viet Nam 
 
- 150 - 
 
  sales should be 27%-30% by 2015 and 43%-45% by 2020.351 Grade one trade centres must be 
located 20 kilometres apart, while second-grade and third-grade supermarkets must be six and one kilometre apart, respectively.
352 The authorities indicated that there is no provision in the 
legislation for a minimum distance of supermarkets or shopping malls away from traditional 
markets. Investors will be encouraged to deve lop supermarkets, shopping malls, warehouses, 
logistics centres away from city centres,  and from marketplaces, exhibitions, and 
product-introduction centres in the rural areas; investors building such facilities in provinces where 
the GDP per capita is lower than the national average will benefit from additional incentives.353  
4.174.  Foreign participation in distribution services, including commission agents, wholesale and 
retail services, and franchising were opened  to fully foreign-owned businesses as of 
1 January 2009. Certain products, including rice, sugar, tobacco (cigarettes and cigars), crude and 
processed oil, pharmaceuticals, explosives, newspapers and magazines, precious metals and 
gemstones, are excluded from WTO distribution services commitments.  Distribution of alcohol 
(wines and spirits), cement and concrete, fertilizer s, iron and steel, paper, tyres, and audiovisual 
equipment were opened to foreign investors in 2010. The local investment management agencies 
grant licences on distribution rights upon writte n approval from the MOIT, which, according to the 
authorities, has already granted licences for items that met specific management regulations.354 
An economic needs test (ENT), apparently applicable to foreign investors only, is compulsory for 
any retail outlet to be established beyond the first one; it appears that there is no nationwide implementing legislation to clarify the ENT criteria, which may result in non-uniform interpretation by different local authorities, thus creating legal uncertainty for investors.
355 In May 2013, the 
MOIT was working on mechanisms and institutions for considering and appraising the ENT; a new 
nationwide Circular replacing Circulars No. 09/2007/TT-BTM and No. 05/2008/TT-BCT is to be issued on this matter, but the ENT content, standard s, and criteria would differ in each locality due 
to the uneven economic conditions between region s, and rural and urban areas. Foreign importers 
without distribution rights are not allowed to distribute the goods they import, should use third-party warehousing services, and provide info rmation proving that the warehouses they use 
possess all necessary governmental authorizations. This requirement does not seem to apply to 
local distributors.
356 
                                               
351 Saigon Times , "Ministry sets fast-track growth for modern shopping", 6 November 2012. Viewed at: 
http://english.thesaigontimes.vn/Home/business/vietnam-economy/26424/  [26 November 2012]. 
352 According to MOIT regulations, th e retail outlets are classified as  follows: multifunctional/general 
supermarkets (>5,000m2 and >20,000 items, >2000m2 and >10,000 items, >500m2 and >4,000 items); 
specialized supermarkets (>1,000m2 and >2,000 items, >500m2 and >1,000 items, >250m2 and >500 items); 
and, commercial centres (>50,000m2, >30,000m2, >10,000m2). For more information see Decision 
No. 1371/2004/QD-BTM, 24 September 2004. Viewed at: http://www.trade.hochiminhcity.gov.vn/data/vbpq/docs/20041025-qd-tm-in-1371.htm . 
353 Decree No. 108/2006/ND-CP, 22 September 2006, and Decree No. 61/2010/ND-CP, 4 June 2010. 
354 Paragraphs 1 and 2 of Article 5 of Decree No. 23/2007/ND-CP. 
355 The authorities indicated that each province and city has different needs for economic development 
and a uniform ENT system of criteria is impossible as  it depends on the different characteristics of local 
economic development needs. However, the local investment management agencies rely on socio-economic development plans when considering to license retail establishments in addition to the first retail establishment of foreign investors (European Commissi on market-access database. Viewed at: 
http://madb.europa.eu/madb_barriers/barr iers_details.htm?barrier_id=105361&version=2 ; and Intellasia , 
"Vietnam's retail market was degraded to 14th position globally", 20 January 2011. Viewed at: 
http://www.intellasia.net/vietnams-retail-market-was-degraded-to-14th-position-globally-146516 
[27 August 2012]). 
356 Ministry of Industry and Trade Circular No. 09-2007-TT-BTM, 17 July 2007, and Circular No. 05-
2008-TT-BCT, 14 April 2008; and European Commission market-access database. Viewed at: http://madb.europa.eu/madb_barriers/barr iers_details.htm?barrier_id=105361&version=2 . WT/TPR/S/287 • Viet Nam 
 
- 151 - 
 
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 WT/TPR/S/287 • Viet Nam 
 
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  5  APPENDIX TABLES 
Table A1. 1 Merchandise exports by product group, 2007-11 
(US$ million and %) 
  2007  2008  2009  2010 2011  
Total exports (US$ million) 48,561.3  62,685.1  57,096.3  72,236.7 96,905.7  
 % of total  
Total primary products 44.8  44.3 39.1 35.4 35.1  
   Agriculture 23.3 23.2 23.5 23.3 22.9 
      Food 19.5  19.9 20.7 19.3 18.6  
         0423 Rice, milled, semi-milled 3.1 4.6 4.7 4.5 3.7 
         0711 Coffee, not roasted  3.9 3.4 3.0 2.6 2.8  
         0344 Fish fillets, frozen  2.2 2.5 2.5 2.1 2.1 
         0361 Crustaceans, frozen 2.9  2.2 2.3 2.2 1.8  
         0577 Edible nuts fresh, dried 1.3 1.5 1.6 1.6 1.6 
      Agricultural raw mate rial 3.8  3.3 2.8 4.1 4.4  
         2312 Natural rubber excluding latex 2.3 2.2 1.7 2.5 2.7 
   Mining 21.5  21.1 15.6 12.1 12.2  
      Ores and other minerals 0.5 0.5 0.5 0.4 0.4 
      Non-ferrous metals 0.3  0.4 0.3 0.6 0.4  
      Fuels 20.7 20.2 14.9 11.0 11.4 
         3330 Crude oils of petroleum and bituminous 
minerals 17.5 16.5 10.8 7.0 7.5  
         3211 Anthracite, not agglomerated 2.1 2.2 2.3 2.1 1.6 
Manufactures 54.4  54.4 58.8 64.0 64.2  
   Iron and steel 1.1 3.1 0.9 1.9 2.3 
   Chemicals 2.1  2.3 2.2 2.6 3.0  
   Other semi-manufactures 4.1 4.1 4.3 4.9 4.5 
   Machinery and transport equipment 11.5  11.8 13.0 15.9 19.4  
      Power generating machines  0.8 0.7 0.9 1.0 1.2 
      Other non-electrical machinery 1.0  1.0 1.1 1.2 1.1  
         Agricultural machinery and tractors 0.0 0.0 0.1 0.0 0.0 
      Office machines & telecommunication equipment  4.0 5.3 6.1 7.9 11.6  
         7643 Radio or television transmission apparatus  0.0 0.0 0.5 2.2 5.9 
         7513 Photo copying apparatus with optical 
system, thermo-copying 0.0 2.0 2.1 2.3 1.8  
      Other electrical machines  4.1 3.0 3.4 3.8 3.5 
         7731 Insulated wire, cable etc.; optical fibre 
cables 1.8 1.6 1.6 1.8 1.6  
      Automotive products 0.9 0.7 0.6 0.7 0.7 
      Other transport equipment  0.8 1.1 0.9 1.3 1.4  
   Textiles 2.7 2.5 3.5 4.2 3.9 
   Clothing 15.2  13.9 15.0 14.4 13.6  
         8453 Jerseys, pullovers, cardigans, etc., 
knitted/crocheted 1.7 1.7 2.0 2.0 1.6 
         8414 Trousers, bib and brace overalls, breeches 
and shorts 1.4 1.3 1.3 1.2 1.3  
         8454 T-shirts, singlets and other vests, knitted 
or crocheted 1.2 1.2 1.3 1.2 1.1 
   Other consumer goods 17.7  16.7 19.9 20.1 17.6  
         8514 Other footwear, leather or composition 
leather uppers 2.6 1.6 3.1 3.1 2.6 
         8973 Jewellery of gold, silver or platinum 
metals (except watches) 0.4 0.6 2.3 3.8 2.6  
         8215 Furniture, n.e.s., of wood 2.8 2.6 2.5 2.5 1.9 
         8512 Sports footwea r 3.6  4.6 1.8 1.8 1.8  
         8513 Footwear, n.e.s., rubber or plastic soles 
and uppers 1.1 0.6 1.3 1.3 1.3 
Other 0.7  1.3 2.1 0.6 0.6  
   Gold 0.0 0.6 1.4 0.1 0.1 
Source:  UNSD Comtrade database, SITC Rev.3. WT/TPR/S/287 • Viet Nam 
 
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  Table A1. 2 Merchandise imports by product group, 2007-11 
(US$ million and %) 
  2007  2008  2009  2010 2011  
Total imports (US$ million) 62,764.7 80,713.8 69,948.8 84,838.6 106,749.9 
 % of total 
Total primary products 27.5 29.0 25.5 26.5 28.3 
   Agriculture 9.4 9.8 10.8 12.1 12.4 
      Food 6.3 6.7 7.9 8.6 8.5 
         0813 Oil-cake, oilseed residues 1.3 1.5 1.6 1.6 1.4 
         0412 Other wheat (including spelt) 
and meslin, unmilled 0.5 0.4 0.5 0.7 0.8 
      Agricultural raw material 3.1 3.1 3.0 3.5 3.9 
         2631 Cotton (other than linters), 
not carded or combed 0.4 0.6 0.5 0.8 1.0 
   Mining 18.2 19.2 14.7 14.4 16.0 
      Ores and other minerals 1.1 1.6 1.5 1.6 1.6 
         2823 Other ferrous waste and scrap 0.6 1.0 1.0 1.1 1.1 
      Non-ferrous metals 3.1 2.3 2.4 3.2 2.7 
         6821 Copper anodes; alloys; 
unwrought 1.0 0.7 0.7 1.1 0.7 
      Fuels 13.9 15.3 10.7 9.6 11.7 
Manufactures 70.0 67.2 73.6 72.0 69.4 
   Iron and steel 9.3 9.4 8.6 8.1 6.8 
   Chemicals 13.3 12.7 14.6 14.7 14.5 
         5429 Medicaments, n.e.s. 0.9 0.8 1.1 1.1 1.0 
         5751 Propylene polymers or of 
other olefins 1.0 0.9 1.0 1.0 1.0 
         5711 Polyethylene 1.2 0.9 0.9 1.0 0.9 
         5621 Mineral or chemical fertilizers, 
nitrogenous 0.6 0.6 0.9 0.5 0.7 
   Other semi-manufactures 6.5 6.0 6.6 6.8 6.3 
         6114 Other bovine/equine leather, 
without hair (excl. of 611.8) 1.1 1.0 0.8 0.8 0.7 
   Machinery and transport equipment 28.4 27.8 31.3 29.2 29.1 
      Power generating machines 2.4 1.7 1.9 1.4 1.4 
      Other non-electrical machinery 9.9 10.3 10.3 9.9 8.8 
         7284 Machinery and appliances for 
particular indu stries, n.e.s. 1.0 1.0 0.9 0.9 1.2 
         Agricultural machinery and tractors 0.2 0.1 0.2 0.2 0.2 
      Office machines & telecommunication 
equipment 7.2 6.9 9.0 8.6 10.0 
         7764 Electronic integrated circuits 
and microassemblies 1.1 1.0 1.2 1.7 3.0 
         7649 Parts and accessories for 
apparatus of division 76 0.6 0.6 0.9 1.2 2.0 
         7643 Radio or television 
transmission apparatus 2.1 1.2 1.5 1.2 0.9 
      Other electrical machines 3.5 3.5 4.0 4.5 4.6 
         7731 Insulated wire, cable etc.; 
optical fibre cables 0.7 0.6 0.6 0.7 0.6 
         7725 Switches, relays, fuses etc. 
for a voltage not exceeding 1,000 V 0.5 0.5 0.6 0.7 0.6 
      Automotive products 2.5 3.0 3.6 2.7 2.3 
         7843 Other motor vehicle parts and 
accessories of 722, 781 to 783 1.2 1.3 1.3 1.1 0.9 
      Other transport equipment 2.9 2.4 2.5 2.1 2.0 WT/TPR/S/287 • Viet Nam 
 
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    2007  2008  2009  2010 2011  
   Textiles 8.2 7.1 7.8 8.3 8.2 
         6552 Other knitted/crocheted 
fabrics, not impregnated/coated, etc. 0.7 0.8 1.3 1.6 1.7 
   Clothing 0.4 0.4 0.5 0.5 0.5 
   Other consumer goods 3.9 3.6 4.2 4.4 4.0 
Other 2.5 3.9 0.9 1.5 2.3 
         9710 Gold, non-monetary (excl. 
gold ores and concentrates) 2.1 3.4 0.5 1.1 1.9 
Source:  UNSD Comtrade database, SITC Rev.3. 
 WT/TPR/S/287 • Viet Nam 
 
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  Table A1. 3 Merchandise expo rts by destination, 2007-11 
(US$ million and %)  
  2007  2008  2009  2010 2011  
Total exports (US$ million) 48,561.3 62,685.1 57,096.3 72,236.7 96,905.7 
 % of total 
  America 24.2 22.6 23.4 23.5 21.0 
    United States 20.8 19.0 20.0 19.7 17.5 
    Other America 3.4 3.7 3.4 3.8 3.5 
  Europe 19.8 18.9 21.5 20.3 19.2 
    EU(27) 18.7 17.4 16.5 15.8 17.1 
      Germany 3.8 3.3 3.3 3.3 3.5 
      United Kingdom 2.9 2.5 2.3 2.3 2.5 
      Netherlands 2.4 2.5 2.4 2.3 2.2 
      France 1.8 1.5 1.4 1.5 1.7 
      Spain 1.6 1.5 1.6 1.5 1.6 
      Italy 1.7 1.6 1.4 1.4 1.6 
    EFTA 0.6 1.0 4.5 3.8 1.3 
    Other Europe 0.4 0.6 0.6 0.8 0.8 
  Commonwealth of Independent States 1.3 1.6 1.1 1.4 1.6 
      Russian Federation 0.9 1.1 0.7 1.1 1.3 
  Africa 1.4 2.0 2.7 2.5 3.7 
    South Africa 0.2 0.2 0.7 0.7 1.9 
  Middle East 1.0 1.6 1.6 1.6 1.9 
  Asia 51.6 52.5 49.0 50.1 50.9 
    China 7.5 7.7 9.5 10.7 11.5 
    Japan 12.5 13.5 11.1 10.7 11.1 
    Six East Asian Traders 16.0 16.1 16.5 15.8 16.2 
      Korea, Rep. of 2.6 2.9 3.6 4.3 4.9 
      Malaysia 3.2 3.2 3.1 2.9 2.9 
      Singapore 4.6 4.3 3.6 2.9 2.4 
      Hong Kong, China 1.2 1.4 1.8 2.0 2.3 
      Chinese Taipei 2.3 2.2 2.0 2.0 1.9 
      Thailand 2.1 2.1 2.3 1.6 1.8 
    Other Asia 15.5 15.1 12.0 12.9 12.1 
      Australia 7.8 6.9 4.2 3.7 2.6 
      Cambodia 2.1 2.4 2.0 2.2 2.5 
      Indonesia 2.4 1.2 1.3 2.0 2.4 
      India 0.4 0.6 0.7 1.4 1.6 
      Philippines 2.0 2.9 2.6 2.4 1.6 
  Other 0.8 0.7 0.7 0.5 1.7 
Memorandum:      
APEC 72.2 70.6 68.0 68.3 66.2 
ASEAN 16.7 16.5 15.3 14.3 14.0 
Source:  UNSD, Comtrade database; and data provided by the authorities (2011 figures). WT/TPR/S/287 • Viet Nam 
 
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  Table A1. 4 Merchandise imports by origin, 2007-11  
(US$ million and %)  
  2007  2008  2009  2010 2011  
Total imports (US$ million) 62,764.7 80,713.8 69,948.8 84,838.6 106,749.9 
 % of total 
  America 5.0 5.2 6.9 7.3 7.1 
    United States 2.7 3.3 4.3 4.5 4.3 
    Other America 2.3 1.9 2.6 2.8 2.8 
      Brazil 0.4 0.5 0.5 0.6 0.9 
      Argentina 0.7 0.5 0.8 1.0 0.8 
  Europe 9.9 9.5 9.3 9.0 9.2 
    EU(27) 8.2 6.9 8.3 7.5 7.3 
      Germany 2.1 1.8 2.3 2.1 2.1 
      France 1.8 1.0 1.2 1.1 1.1 
      Italy 1.1 0.8 1.0 1.0 0.9 
    EFTA 1.7 2.5 0.7 1.4 1.8 
      Switzerland 1.6 2.4 0.6 1.2 1.7 
    Other Europe 0.1 0.1 0.2 0.1 0.1 
  Commonwealth of Independent States 1.1 1.7 2.7 1.6 1.0 
      Russian Federation 0.9 1.2 2.0 1.2 0.7 
  Africa 0.4 1.0 0.7 0.9 1.2 
  Middle East 0.8 0.8 1.3 1.8 2.4 
      Kuwait 0.0 0.1 0.0 0.4 0.8 
      Kingdom of Saudi Arabia 0.2 0.2 0.5 0.7 0.7 
  Asia 82.6 81.7 78.8 79.0 78.5 
    China 20.3 19.8 23.8 23.8 23.0 
    Japan 9.9 10.2 10.7 10.6 9.7 
    Six East Asian Traders 44.4 43.5 36.2 36.2 36.9 
      Korea, Rep. of 8.5 9.0 10.0 11.5 12.3 
      Chinese Taipei 11.1 10.4 8.9 8.2 8.0 
      Singapore 12.1 11.6 6.1 4.8 6.0 
      Thailand 6.0 6.1 6.5 6.6 6.0 
      Malaysia 3.6 3.2 3.6 4.0 3.7 
      Hong Kong, China 3.1 3.3 1.2 1.0 0.9 
    Other Asia 8.0 8.2 8.1 8.3 8.8 
      India 2.2 2.6 2.3 2.1 2.2 
      Indonesia 2.2 2.1 2.2 2.3 2.1 
      Australia 1.7 1.7 1.5 1.7 2.0 
      Philippines 0.7 0.5 0.7 0.8 0.8 
  Other 0.1 0.1 0.3 0.4 0.6 
Memorandum:      
APEC 83.9 83.3 82.8 82.4 80.8 
ASEAN 25.3 24.2 19.7 19.3 19.6 
Source: UNSD, Comtrade database; and data provided by the authorities (2011 figures). WT/TPR/S/287 • Viet Nam 
 
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  Table A2. 1 Overview of Viet Nam's free-trade agreements  
ASEAN FTAs 
The Agreement Establishing the ASEAN-Australia-New Zealand Free Trade Area (AANZFTA) 
Date of signature/entry into force  27 February 2009/1 January 2010  
Transition for full implementation 
by Viet Nam (goods) Normal track: tariffs on 85% of all tariff lines to be eliminated by 2018; 
an additional 5% of all tariff lines by 2020 with flexibility. 
Sensitive track: tariffs on goods on "S ensitive List" (6% of all tariff lines) 
to be reduced to 5% by 2022. "Highly Sensitive List" (3% of all tariff 
lines) – tariffs to be reduced to 7-50% by 2022. 
Exclusion list: 1% of all tariff lines. 
Services covered by Viet Nam Essentially the same as Viet Nam's WTO commitments with the addition 
of mode 1 for higher education se rvices, and reducing the minimum 
required teaching experience of fo reign teachers from 5 to 3 years. 
Selected features Advance origin/classification/valuation ruling on request; investment; 
movement of natural persons; TBT/ SPS; safeguard measures; dispute 
settlement; intellectual property; competition 
WTO consideration status  Factual presentation not distributed (as at May 2013) 
WTO document series WT/REG284/N/1 and S/C/N/545, 9 April 2010 
ASEAN-India Trade in Goods Agreement (AITIG) 
Date of signature/entry into force October 2009/1 June 2010 
Transition for full implementation 
by Viet Nam For the 9,186 HS eight-digit tariff lines: tariffs on 5,580 tariff lines 
(60.74%) to be reduced to 0% by end 2018 (track1); on an additional 
788 tariff lines (8.58%) by end 2021 (track 2).   
Sensitive track (7.2% of all tariff li nes): common commitment to reduce 
tariff rates above 5% to 5% by end 2021. 4% of the tariff lines to 
removed from the sensitive track by end 2024. 50 tariff lines with applied 
MFN rate of 5% to be maintained. Tariffs on other items of 5% on 
sensitive track reduced to 4.5% after 5 years from the date of entry into 
force of the Agreement, and to 4% by end 2021.  
Highly sensitive list: 6.61% of all tariff lines on which either (i) applied 
rate to be reduced to 50%; (ii) appl ied MFN rate to be reduced by 50%; 
or (iii) applied MFN rate to be re duced by 25%. To be implemented by 
Viet Nam by end 2024. 
Exclusion list: 16.86% of all tariff lines. 
Selected features Rules of origin, non-tariff measures, safeguard measures 
WTO consideration status Factual presentation not distributed (as at May 2013) 
WTO document series WT/COMTD/N/35, 23 August 2010 
ASEAN-Japan Comprehensive Economic Partnership Agreement (AJCEP) 
Date of signature/entry into force 1 April 2008/1 December 2008 
Transition for full implementation 
by Viet Nam (goods) Normal track: Viet Nam committed to re duce tariffs to zero on 89% of all 
tariff lines within 16 ye ars, i.e. by 2025.  
Tariffs on "sensitive list" items to be reduced to 5% by 2025 (bilateral 
commitment under the framework of EPA) 
Items on highly sensitive list to be reduced to 50% tariff (bilateral 
commitment under the framework of EPA) 
Exclusion list comprising 6% of all tariff lines (bilateral commitment under 
the framework of EPA)  
Selected features Agreement applies to goods only; prov isions on SPS, TBT, and economic 
cooperation; services and investment  subject to future negotiations 
WTO consideration status Factual presentation not distributed (as at May 2013) 
WTO document series WT/REG277/N1, 14 December 2009 WT/TPR/S/287 • Viet Nam 
 
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  ASEAN-Korea Trade in Goods Agreement (AKTIG) 
Date of signature/entry into force 2006, revised in November 2011/1 July 2007 
Transition for full implementation 
by Viet Nam Normal track: tariff rates on 95% of the tariff lines to be reduced to zero 
by 2016, tariffs on remaining lines to be eliminated by 2018 
 Highly sensitive list: maximum 3% of all tariff lines or 200 HS six-digit 
tariff lines. Group A products: tariffs  capped at 50% by 2021; Group B: 
tariff reduction of 20% by 2021; Gr oup C: tariff reduction of 50% by 
2021; Group D: products subject to TRQs; Group E: exempt from tariff 
concessions (maximum 40 HS six-digit tariff lines on the list). 
Selected features Rules of origin, non- tariff measures, transitional safeguard  
WTO consideration status Factual presentation not distributed 
WTO document series WT/REG287/N/1; WT/COMTD/N/33, 8 July 2010.  
ASEAN-Korea Trade in Services Agreement 
Date of signature/entry into force 2007/1 May 2009 
Services covered Viet Nam's commitments similar to its WTO commitments  
WTO consideration status Factual presentation not distributed (as at May 2013) 
WTO document series  S/C/N/559; S/C/N/560, 8 July 2010.  S/C/N/559/Add.1; S/C/N/560, 
Add.1, 3 May 2011  
ASEAN-China Trade in Goods Agreement (ACTIG) 
Date of signature/entry into force November 2004, revised 2006/1 January 2005 
Early harvest programme: tariff elimination completed by 1 January 2008. 
Transition for full implementation 
by Viet Nam Normal track: tariffs on most goods reduced to zero by 2015 or 2018 with 
some flexibility. 
Sensitive track: maximum 500 tariff lines (HS 6-digit)  representing 
maximum 15% of the bilateral import value in 2001. Highly sensitive list: 
140 tariff lines (HS 6-digit) or maximum 40% of all lines on sensitive track. Tariff on highly sensitive item s to reach 50% by 2018. Tariffs on 
other sensitive items to be reduced to 0-5% by 2020. 
Selected features Rules of origin, non-tariff measures, transitional safeguard 
WTO consideration status Factual abstract distributed 
WTO document series WT/COMTD/N/20, 21 December 2004; WT/COMTD/N/20/Add.1, 26 
September 2005; WT/COMTD/51, 21 December 2004; 
WT/COMTD/51/Add.1, 27 September 2005; WT/COMTD/51/Addenda 2-7 
(questions and replies) 
ASEAN-China Trade in Services Agreement  
Date of signature/entry into force 14 January 2007/1 July 2007 
Services covered Viet Nam's commitments similar to its WTO commitments 
WTO consideration status Factual presentation not distributed 
WTO document series S/C/N/463, 2 July 2008 
BILATERAL FTAs 
Viet Nam-Chile Free Trade Agreement (VCFTA) 
Date of signature/entry into force  11 November 2011/ 
Transition for full implementation by Viet Nam Tariffs on 28.5% of all tariff lines to be  eliminated upon entry into force of 
the agreement. Tariffs eliminated on  88.55% of all tariff lines within 
15 years. For the remaining lines (11.45% ), (i) partial tariff reduction list; 
(ii) tariff lines with base rate remaining; and (iii) exclusion list. 
Selected features Rules of origin, TBT, SPS, customs co-operation, transitional safeguard, 
transparency, joint FTA Committee, and dispute settlement provisions. 
Services and investment  to be negotiated. 
WTO consideration status  
WTO document series  WT/TPR/S/287 • Viet Nam 
 
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  Viet Nam-Japan Economic Partnership Agreement (VJEPA) 
Date of signature/entry into force 25 December 2008/1 October 2009 
Transition for full implementation 
by Viet Nam Normal track: tariffs on approximately 92% of all tariff lines to be reduced 
to zero by 2026 (85% of the lines to zero by 2020).   
Sensitive list: 0.6% of all tariff lines; tariffs to be reduced to 5% by 2025. 
Highly sensitive list: 0.8% of all tari ff lines; tariffs to be cut by 50% by 
2023 
Applied base rate: 2.02% of all ta riff lines; no tariff reductions 
Unbound: 4.6% of all tariff lines 
Selected features Movement of natural pers ons, implementation of bilateral investment 
liberalization, promotion, and protection agreement signed in 2003. 
WTO consideration status Considered 28 June 2011 (WT/REG/275/M/1) 
WTO document series WT/REG/275/N/1, S/C/N/513 
Source: Vietnamese authorities and WTO Secretariat RTA database. WT/TPR/S/287 • Viet Nam 
 
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  Table A3. 1 Tariff summary, 2013 
 Number 
of lines Average 
(%) Range 
(%) Standard 
deviation Duty free 
(%) 
Totala 9,558 10.4 0-135 12.5 32.9 
By WTO category      
WTO agricultural products 1,298 17.4 0-135 15.5 13.3 
   Animals and products thereof 150 14.0 0-40 11.4 10.7 
   Dairy products 38 9.5 0-20 5.2 5.3 
   Fruit, vegetables, and plants 348 18.9 0-40 12.3 11.5 
   Coffee and tea 42 27.9 10-40 10.8 0.0 
   Cereals and preparations 185 19.2 0-40 12.4 7.0 
   Oils seeds, fats, oil and their products 198 12.2 0-30 9.8 8.6 
   Sugars and confectionary 32 14.1 0-40 12.2 6.3 
   Beverages, spirits and tobacco 106 44.0 15-135 23.5 0.0 
   Cotton 5 6.0 0-10 4.9 40.0 
   Other agricultural products, n.e.s. 194 6.7 0-20 7.3 41.8 
WTO non-agricultural products a 8,260 9.3 0-100 11.6 35.9 
   Fish and fishery products 377 14.5 0-35 9.0 16.2 
   Minerals and metals 1,386 8.6 0-45 10.6 38.5 
   Chemicals and photographic supplies 1,327 3.7 0-27 5.9 56.4 
   Wood, pulp, paper and furniture 455 10.3 0-25 9.2 26.6 
   Textiles 802 10.0 0-100 6.5 10.6 
   Clothing 300 19.6 5-30 2.5 0.0 
   Leather, rubber, footwear and travel 
goods 319 12.5 0-35 11.2 13.5 
   Non-electric machinery 1,291 4.6 0-50 7.4 57.8 
   Electric machinery 694 9.0 0-35 9.4 35.7 
   Transport equipmenta 551 25.3 0-75 25.8 14.3 
   Non-agricultural products, n.e.s. 722 9.7 0-35 10.5 41.8 
   Petroleum 36 8.7 0-20 4.9 8.3 
By ISIC sector (excluding electrical 
energy)      
   ISIC 1 - Agricultur e, hunting and fishing 625 10.9 0-40 9.8 25.0 
   ISIC 2 - Mining 117 1.7 0-30 4.4 69.2 
   ISIC 3 - Manufacturinga 8,815 10.5 0-135 12.8 33.0 
        Manufacturing excluding food 
processinga 7,781 9.2 0-100 11.7 36.3 
   Electrical energy 1 1.0 1 0.0 0.0 
By stage of processing      
   First stage of processing 1,061 9.5 0-100 10.6 33.4 
   Semi-processed products 2,503 5.4 0-40 6.9 43.6 
   Fully processed productsa 5,994 12.7 0-135 14.0 28.3 
By HS section      
  01 Live animals and products 521 11.7 0-40 8.4 17.1 
  02 Vegetable products 474 15.1 0-40 11.0 14.8 
  03 Fats and oils 156 14.1 3-30 9.9 0.0 
  04 Prepared food, beverages and tobacco 443 27.8 0-135 18.5 8.4 
  05 Mineral products 204 4.5 0-35 7.2 49.5 
  06 Chemicals and products thereof 1,157 3.1 0-27 5.2 61.1 
  07 Plastics, rubber, and articles thereof 480 8.5 0-35 8.6 20.6 
  08 Raw hides and skins, leather, and 
products thereof 100 12.5 0-25 11.0 31.0 
  09 Wood and articles of wood 157 6.6 0-25 8.9 47.1 
  10 Pulp of wood, paper and paperboard 269 11.6 0-25 8.1 14.9 
  11 Textiles and clothing 1,079 12.3 0-100 7.1 9.2 
  12 Footwear, headgear, etc. 74 22.3 0-30 10.2 8.1 
  13 Articles of stone, plaster, cement 215 17.6 0-45 13.3 6.0 
  14 Precious stones and metals, pearls, 
articles thereof 81 12.9 0-30 13.4 22.2 
  15 Base metals and articles thereof 909 7.4 0-35 8.8 41.8 
  16 Machinery, electrical equipment, etc. 2,067 6.2 0-50 8.5 49.5 WT/TPR/S/287 • Viet Nam 
 
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   Number 
of lines Average 
(%) Range 
(%) Standard 
deviation Duty free 
(%) 
  17 Transport equipmenta 565 24.7 0-75 25.7 15.6 
  18 Precision equipment 329 4.5 0-25 7.9 67.5 
  19 Arms and ammunition 27 3.5 0-30 9.4 85.2 
  20 Miscellaneous manufactured articles 239 18.2 0-30 8.3 5.0 
  21 Works of art, etc. 12 2.5 0-20 5.6 75.0 
a For 87 tariff lines, under motor vehicles (HS Chapte r 87), no rates are provided as duties are based 
on special instructions provided under Chapter 98 
Note: Calculations for averages are based on national tariff line level (8-digit). Source: WTO Secretariat calculations, based on data provid ed by the authorities of Vi et Nam, and Ministry of 
Finance, Circular No. 193/2012/TT-BTC. WT/TPR/S/287 • Viet Nam 
 
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  Table A3. 2 Extract of changes in customs duties, 2007–12 
Date of 
issue Instrument Measure  Old vs. new rates 
2007  
09.01. Decision No. 04/2007/QD–BTC Tariff change on fuel 
products  Fuels generally: 15% 
Kerosene: 5%  
11.01. Decision No. 78/2006/QD-BTC Tariff reduction on 
automobiles (to comply with WTO commitments) 
 Down from 100% to 80%  
15.01. Decision No. 05/2007/QD–BTC Tariff changes on 
second-hand 
automobiles Vehicles with 5 seats or less: 
New rates ranging from 
US$6,300 to US$26,250/unit 
6 to 9 seats:US$7,650 to 
US$11,200/unit 
From 10 to 15 seats: 
US$6,800 to US$9,600/unit 
06.03. Decision No. 09/2007/QD–BTC Tariff reduction on fuels Generally down from 15% to 
10%, except for diesel (new rate 0%) 
27.04. Decision No. 29/2007/QD–BTC  Tariff reduction on fuels Cut from 10% to 5%  
31.05. Decision No. 40/2007/QD–BTC  Tariff increase on leaded  
fuels New rates ranging from  0% to 
20% (depending on the content of lead)  
03.08. Decision No. 65/2007/QD–BTC  Tariff changes for certain 
products including 
automobiles Automobiles: 
old rate 80% 
new rate 70% 
07.08. Decision No. 72/2007/QD–BTC  Tariff change on second-
hand automobiles Vehicles with 5 seats or less: 
new rates ranging from US$3,000 to US$26,250/unit 6 to 9 seats: US$7,267 to US$20,000/unit 10 to 15 seats: US$6,460 to 
US$14,250/unit 
19.10. Decision No. 106/2007/QD-BTC 
 Tariff reduction on 
automobiles Down from 70% to 60% 
01.11. Decision No. 92/2007/QD–BTC  Tariff change on second-
hand automobiles Vehicles with 5 seats or less: 
new rates ranging from US$2,700 to US$30,000/unit 6 to 9 seats: US$7,200 to US$24,000/unit 10 to 15 seats: US$6,400 to US$13,500/unit 
2008 
11.03. Decision No. 13/2008/QD-BTC 
 Tariff increase on 
automobiles Up from 60% to 70% 
21.04. Decision No. 17/2008/QD–BTC  Tariff increase on  
automobiles Up from 70% to 83%  
03.10.  Decision No. 83/2008/QD–BTC Tariff increase on fresh 
and frozen meat Poultry: up from 15% to 40% 
Pork: up from 25% to 27% Beef: up from 15% to 17% 
2009 
10.02. Circular No. 28/2009/TT–BTC  Tariff increase on 
newsprint paper and uncoated paper  Up from 20% and 25% to 29%  
25.03. Circular No. 58/2009/TT–BTC  Tariff increases on steel  Semi-finished steel products: 
up from 5% to 8% 
Cold-rolled steel sheets and 
coils: 
up from 7% to 8% 
Coated steel sheets and coils: 
up from 12% to 13% 
Steel products for construction: 
up from 12% to 15% WT/TPR/S/287 • Viet Nam 
 
- 167 - 
 
  Date of 
issue Instrument Measure  Old vs. new rates 
14.04. Circular No. 77/2009/TT–BTC  Tariff increase on 
fertilizer and tariff reductions on certain products Fertilizer: up from 5% to 6.5% 
Oil and fat from fish and other marine mammals: down from 15% to 5% Wheat: down from 5% to 3% Animal feed for poultry and pigs: down from 5% to 4% Other animal feed: down from 10% to 0%  
20.04. Circular No. 75/2009/TT–BTC Tariff increase on alloy 
steel (long products) Up from 0% to 10%  
29.05. Circular No. 108/2009/TT–BTC  Tariff increase on fuels Fuels generally: 
old rates: 0% to 20% new rate: 20% 
Kerosene: up from 5% to 35% 
Diesel: up from 0% to 20% 
14.09. Circular No. 180/2009/TT–BTC  Tariff reduction on 
kerosene Old rate: 35% 
New rate: 30% 
25.09. Circular No. 162/2009/TT–BTC  Tariff increase on certain 
dairy products  Old rate: 3% to 7% 
New rate: 3% to 20%  
20.11.  Circular No. 52/2009/TT–BTC  Tariff increase on fresh 
and frozen meat Pork: up from 27% to 28% 
Beef: up from 17% to 33% 
2010 
19.04. Circular No. 59/2010/TT–BTC  Tariff reductions on fuels Generally cut from 20% to 
17%, except for  
Kerosene: 
old rate: 30% 
new rates: 3% to 17%, and 
Diesel: cut from 20% to 10% 
01.12. Circular No. 190/2010/TT–BTC Tariff reductions on fuels Generally cut from 17% to 
12%, except for Kerosene: old rates: 3% to 17% new rates: 3% to 5%, and Diesel: cut fro m 10% to 5% 
22.12. Circular No. 213/2010/TT–BTC  Tariff reductions on fuels 
(except kerosene) Generally cut from 12% to 6%, 
except for 
Kerosene: 
old rates: 3% to 5% 
new rate: 6%, and 
Diesel: cut from 5% to 2%  
2011 
14.01. Circular No. 07/2011/TT–BTC  Tariff reductions on fuels Generally cut from 6% to 0%, 
except for 
Kerosene: (new rate 2%), and 
Diesel (down from 2% to 0%) 
23.02. Circular No. 24/2011/TT–BTC  Tariff increase on 
kerosene Old rate: 2% 
New rates: 3% to 5%  
2012 
24.05. Circular No. 84/2012/TT–BTC  Tariff increase on fuels Generally increased from 0% to 
4%, except for Kerosene: old rates 3% to 5%, new rates: 4% to 5% Diesel: up from 0% to 3% 
08.06. Circular No. 94/2012/TT–BTC  Tariff increase on fuels Generally increased from 4% to 
7%, except for 
Kerosene: old rates 4% to 5%, 
new rate: 6% 
Diesel: up from 3% to 6% 
22.06. Circular No. 103/2012/TT–BTC  Tariff increase on fuels Generally increased from 7% to 
10%, including for Kerosene: up from 6% to 10% Diesel:  old rate: 6% new rate: 8% WT/TPR/S/287 • Viet Nam 
 
- 168 - 
 
  Date of 
issue Instrument Measure  Old vs. new rates 
03.07. Circular No. 109/2012/TT–BTC  Tariff increase on fuels Generally increased from 10% 
to 12%, including for kerosene 
Diesel: 
Old rate: 8% 
New rate:10% 
11.09. Circular No. 148/2012/TT–BTC  Tariff reductions on fuels Generally reduced from 12% to 
10%, including for kerosene Diesel:  Old rate: 10% New rate: 8% 
30.11. Circular No. 208/2012/TT–BTC  Tariff reduction on jet 
fuel Down from 10% to 7% 
 
Source: WTO Secretariat.  WT/TPR/S/287 • Viet Nam 
 
- 169 - 
 
  Table A3. 3 Preferential tariff averag es for selected product groups, 2013 
  No. of 
lines MFN 
applied ATIGAa AK 
FTAb AC 
FTAc AANZ 
FTAd AI 
FTAe AJ 
CEPAf VJ 
EPAg 
Description  (%) (%) (%) (%) (%) (%) (%) (%) 
Total 9,558 10.4 2.0 7.5 4.2 8.2 9.1 7.8 7.6 
HS 01-24 1,594 17.4 2.8 10.5 4.7 13.5 15.5 14.3 14.5 
HS 25-97 7,964 9.0 1.8 6.9 4.1 7.2 7.8 6.5 6.2 
By WTO category          
WTO Agriculture 1,298 17.4 3.4 10.4 5.4 12.6 15.1 13.8 14.0 
   Animals and products thereof 150 14.0 2.7 6.6 3.3 10.3 11.6 9.6 9.7 
   Dairy products 38 9.5 4.5 5.4 0.0 6.9 8.5 7.8 8.4 
   Fruit, vegetables and plants 348 18.9 2.0 9.4 2.5 12.9 15.8 14.2 14.6 
   Coffee and tea 42 27.9 4.4 12.4 10.0 16.3 25.2 20.5 22.3 
   Cereals and preparations 185 19.2 2.9 10.4 6.2 12.5 16.1 14.4 14.6 
   Oil seeds, fats and oils and their 
products 198 12.2 1.7 6.8 4.7 9.7 10.6 9.9 9.6 
   Sugar and confectionary 32 14.1 3.0 12.6 7.7 9.3 13.3 12.5 12.2 
   Beverages, spirits and tobacco 106 44.0 18.8 39.0 23.5 36.8 42.5 41.4 41.4 
   Cotton 5 6.0 0.0 3.0 3.0 3.0 6.0 3.0 3.3 
   Other agricultural products 
n.e.s. 194 6.7 0.3 3.6 2.3 4.7 5.1 5.2 4.9 
WTO non-agriculture 8,260 9.3 1.7 7.1 4.0 7.5 8.1 6.9 6.5 
    Fish and fishery products 377 14.5 0.0 9.0 1.7 14.2 14.2 13.5 13.6 
    Minerals and metals 1,386 8.6 1.3 5.4 3.1 5.9 7.3 6.1 5.8 
    Chemicals and photographic 
supplies 1,327 3.7 1.1 3.1 1.9 3.1 3.4 3.1 2.8 
    Wood, pulp, paper and 
furniture 455 10.3 1.3 6.6 3.6 7.9 8.1 7.7 6.8 
    Textiles 802 10.0 1.4 9.3 5.8 9.6 7.6 5.6 5.8 
    Clothing 300 19.6 0.0 14.6 9.6 18.8 13.2 12.3 10.3 
    Leather, rubber, footwear and 
travel goods 319 12.5 2.9 8.4 6.0 9.7 11.7 10.8 10.2 
    Non-electric machinery 1,291 4.6 1.0 3.6 2.4 3.7 4.1 3.3 3.0 
    Electric machinery 694 9.0 0.5 7.5 3.7 6.8 8.1 6.1 5.7 
    Transport equipment 551 25.3 10.7 23.7 13.3 18.7 24.9 19.8 19.6 
    Non-agriculture articles n.e.s. 722 9.7 1.6 5.8 2.9 7.4 8.4 7.4 7.3 
    Petroleum 36 8.7 7.5 7.9 7.9 8.7 8.7 8.7 8.2 
By ISIC sectorh          
   ISIC 1 - Agriculture and 
fisheries 625 10.9 1.6 6.7 1.6 8.5 9.7 9.2 9.0 
   ISIC 2 - Mining 117 1.7 0.3 1.7 0.9 1.5 1.6 1.3 1.0 
   ISIC 3 - Manufacturing 8,815 10.5 2.0 7.7 4.5 8.3 9.1 7.8 7.5 
      Manufacturing excluding food 
processing 7,781 9.2 1.8 7.1 4.2 7.3 7.9 6.7 6.3 
By stage of processing          
   First stage of processing 1,061 9.5 1.2 6.0 1.5 7.5 8.4 8.0 7.9 
   Semi-processed 2,503 5.4 1.0 4.5 2.7 4.5 4.5 3.7 3.4 
   Fully processed products 5,994 12.7 2.5 9.1 5.4 9.9 11.2 9.5 9.3 
By HS section          
  01  Live animals and products 521 11.7 1.0 7.1 0.5 10.3 10.8 10.1 10.1 
  02  Vegetable products 474 15.1 1.3 7.5 2.2 10.4 12.3 11.3 11.4 
  03  Fats and oils 156 14.1 2.0 7.7 5.4 11.3 12.5 11.6 11.2 
  04  Prepared food, beverages 
and tobacco 443 27.8 6.7 18.5 12.0 21.3 25.7 23.5 24.1 
  05  Mineral products 204 4.5 2.1 3.9 3.1 3.7 4.0 3.8 3.4 
  06  Chemicals and products 
thereof 1,157 3.1 0.9 2.5 1.6 2.6 2.7 2.5 2.2 
  07  Plastics, rubber, and articles 
thereof 480 8.5 2.5 6.7 4.7 6.9 7.8 7.2 6.3 
  08  Raw hides and skins, leather 
products 100 12.5 2.7 7.4 3.6 9.5 11.6 11.4 11.1 WT/TPR/S/287 • Viet Nam 
 
- 170 - 
 
    No. of 
lines MFN 
applied ATIGAa AK 
FTAb AC 
FTAc AANZ 
FTAd AI 
FTAe AJ 
CEPAf VJ 
EPAg 
  09  Wood and articles of wood 157 6.6 0.5 4.4 2.1 5.9 6.2 6.2 6.1 
  10  Pulp of wood, paper and 
paperboard 269 11.6 1.7 7.4 4.1 8.6 8.4 8.2 6.6 
  11  Textiles and clothing 1,079 12.3 0.9 10.6 6.8 11.9 8.8 7.0 6.7 
  12  Footwear, headgear, etc. 74 22.3 2.1 11.9 6.8 15.7 21.3 18.9 20.1 
  13  Articles of stone, plaster, 
cement 215 17.6 1.7 11.0 6.5 10.6 14.9 13.1 13.3 
  14  Precious stones and metals 81 12.9 2.3 7.2 2.3 9.5 11.9 9.1 9.7 
  15  Base metals and articles 
thereof 909 7.4 1.2 4.5 2.7 5.5 6.3 5.2 4.7 
  16  Machinery, electrical 
equipment, etc. 2,067 6.2 0.9 5.0 2.9 4.7 5.5 4.2 0.9 
  17  Transport equipment 565 24.7 10.4 23.1 13.0 18.2 24.3 19.3 19.1 
  18  Precision equipment 329 4.5 0.5 2.7 1.3 3.7 3.8 3.5 3.2 
  19  Arms and ammunition 27 3.5 3.5 3.5 3.5 3.5 3.5 3.5 3.5 
  20  Miscellaneous manufactured 
articles 239 18.2 2.8 10.3 5.5 14.0 15.8 14.1 14.0 
  21  Works of art, etc. 12 2.5 1.3 1.4 1.3 1.7 1.7 1.9 1.7 
a  ASEAN Trade in Goods Agreement (Circular No. 161/2011/TT-BTC). 
b  ASEAN-Korea Free Trade Agreement (Circular No. 163/2011/TT-BTC). c  ASEAN-China Free Trade Agreement (Circular No. 162/2011/TT-BTC). d  ASEAN-Australia New Zealand Free Trad e Agreement (Circular No. 44/2012/TT-BTC). 
e  ASEAN-India Free Trade Agreement (Circular No. 45/2012/TT-BTC). f  ASEAN-Japan Comprehensive Economic Partnership Agreement (Circular No. 20/2012/TT-BTC). g  Viet Nam-Japan Economic Partnershi p Agreement (Circular No. 21/2012/TT-BTC). 
h  ISIC (Rev.2) classification, excluding electricity (1 line). 
Source: WTO Secretariat calculations, based on data from the Ministry of Finance, Circular No. 193/2012/TT-
BTC and Circular Nos. as in footnotes a to g. 
 
  
 WT/TPR/S/287 • Viet Nam 
 
- 171 - 
 
  Table A3. 4 Imported goods subjec t to line management licensing 
HS Goods Form of management 
Ministry of Agriculture and Rural Development 
ex 3004; 
30062000 Veterinary medicines and materials for 
making veterinary medicines TBT/SPS licence 
N.A Biological products for veterinary use 
registered for first-t ime use in Viet Nam TBT/SPS licence 
ex 3808 Pesticides and materials for making 
pesticides excluded in the List of pesticides 
allowed to be used in Viet Nam Automatic licence 
ex 3808 Pesticides and materials for making 
pesticides included in the List of pesticides subject to restricted use in Viet Nam Automatic licence 
ex 0106; 06; 07; 
08; 09; 12 Plants and animal stra ins, and various types 
of insects not available in Viet Nam TBT/SPS licence 
ex 23 Animal feeds and materials for producing 
animal feeds newly used in Viet Nam TBT/SPS licence 
3101; 3102; 3103; 
3104; 3105 Fertilizers newly used in Viet Nam TBT/SPS licence 
3001; 3002 Genetic sources of plants, animals and micro-
organs used for scientific purposes TBT/SPS licence 
ex 01 Wild animals and plants subject to import 
control according to CITES Convention Automatic licence 
State Bank of Viet Nam 
84793000 Money destroying machines Import permit 
ex 7308 Treasury doors 
ex 4802 Papers for printing money  
 
Appointment of importers ex 3215 Inks for printing money 
8462; 8477; 4907 Machines for printing hard-to-forge money, 
payment vouchers, certificates and other 
valuable papers to be issued and managed 
by the banking industry 
ex 8443 Money printers  
(technical specifications announced by the State Bank) 
ex 8462 Machines for moulding and pressing metal 
money  
(technical specifications announced by the 
State Bank) 
Ministry of Information and Communications 
49070020; 
49070090; 
97040010; 
97040090 Postage stamps, stamp publications and 
items of postage stamps Licence 
8517; 8525; 8526 Radio transmitters and radio transceivers of 9 
KHz-400 GHz frequency band with power output of 60 mV or more TBT licence 
8517; 8525; 8526 Microwave equipment TBT licence 
4901; 4902; 4903; 
4904; 4905; 4906; 4909; 4910; 4911; 8442;  8440; 8443; 9009  
8528; 8529; 8543 Publications (books, ma gazines, newspapers, 
pictures, photographs, calendars, etc.)  Specialized print proof making systems and type setting systems used in printing industry Printers of any kinds (Offset printers, flexo printers, bronze drum printers) and colour 
photocopiers Television Receive Only (TVRO) 
equipment Licence 
Ministry of Culture, Sports and Tourism 
9504 Gambling machines Automatic licence 
9501; 9502; 9503 Children's toys TBT licence 
Ministry of Health 
3004 Addictive substances, sedative substances, 
pre-substances (includi ng final medicines) Automatic licence 
3004 Finally tested medicines for human beings, 
which have been registered  
3004 Finally tested medicines for human beings, 
which have not been registered TBT/SPS licence WT/TPR/S/287 • Viet Nam 
 
- 172 - 
 
  HS Goods Form of management 
ex 28; 29; 30; 
19059060; 96020010; ex 3923; ex 4014; ex 4819 Materials for producing medicines, 
pharmaceutical materials, excipient, empty hard gelatine and containers directly contacting with medicines, which are newly used in Viet Nam TBT/SPS licence 
3302; 3303; 3304; 
3305; 3306; 3307 Cosmetics directly affecting human health TBT licence 
3002 Vaccines and immunized biological products 
excluded in the List of items allowed to be imported upon demand Automatic licence 
ex 9019; ex 9020 Medical equipment which may directly affect 
the health of human beings Automatic licence 
3808 Chemicals, pesticides, antiseptic products for 
medical use TBT licence 
Ministry of Industry and Trade 
Imported chemicals on list of good s restricted in production and 
trade Licence for production and trade 
(Circular No. 28/2010/TT-BCT of 28 June 2010) 
Toxic chemicals (Table 2 list and Table 3 chemicals in the 
Convention on the prohibition of  the development, production, 
stockpiling, and use of  chemical weapons and on their destruction) Licence (Decree No. 100/2005/ND-CP of 
3 August 2005; Circular 
No. 01/2006/TT-BCN of 11 April 2006) 
Products containing toxic chemicals TBT licence (Circular No. 01/2006/TT-
BCN of 11 April 2006) 
Industrial products and consumer goods with toxic chemicals Licence not required, but products must 
comply with TBT requirements 
Pre-substances used in industrial sector Law No. 23/2000/QH10 of 
9 December 2000, amended on 3 June 2008; Decision No. 134/2003/QD-BCN of 25 August 2003; Decision No. 04/2004/AD-BCN of 7 January 2004, Circular No. 01/2006/TT-BCN of 11 April 2006 
Imported chemicals on list of chemicals to be declared Decree No. 26/2011/ND-CP of 
8 April 2011; Decree No. 108/2008/ND-
CP of 7 October 2008; Circular 
No. 40/2011/TT.-BCT of 
14 November 2011 
Industrial explosive materials NH4NO3  Import and export  licence (Decree 
No. 39/2009/ND-CP of 23 April 2009; Decree No. 54/2012/ND-CP of 22 June 2012; Decree No. 12/2006/ND-CP of 23 January 2006; Circular No. 23/2009/TT-BCT of 11 August 2009) 
Natri hydrocid (liquid) 
Natri hydroxyt liquid (NaOH) > 31% TBT regulations (Circular 
No. 01/2006/TT-BCN, Annex 4) 
Ministry of Natural Resources and Environment 
3915; 4017; 4707; 
6310; 7112; 7204; 
7404; 7503; 7602; 
7802; 7902; 8002; 
810197; 810297; 
810420; 810830; 
810930; 811020; 
8111; 811222 Scrap TBT licence 
Ministry of Transport 
360490 Lighting flares used in maritime transport Licence (subject to the provisions of 
Chapter III of the International Life-
Saving Appliance Code) of the 
International Maritime Organization) 
Note: According to Ministry of Agriculture and Rura l Development Circular No. 60/2009/TT-BNNPTNT, lists 
have been drawn up for conditional imports of mari ne animal feed; chemicals used in fish farming; 
and breeds, microorganisms, and enzymes. Circular No. 88/2011/TT-BNNPTNT lists live aquatic species allowed to be imported as food and treatment products to improve the aquaculture 
environment. 
Source: WTO document WT/ACC/VNM/48; and informat ion provided by the Vietnamese authorities. WT/TPR/S/287 • Viet Nam 
 
- 173 - 
 
  Table A3. 5 Export duties, 1 January 2013 
HS Code Description Applied 
rate 
(%) Committed 
rate in WTO 
(from 2012) 
(%) 
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 incinera tion 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; al uminium 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, pa rchment-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 preserve d, but not tanned, parchment 
dressed or further prepared), wh ether 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 otherwis e 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 (c ross-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  
4408 Sheets for veneering and  lami nated 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 6mm 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 5
a  WT/TPR/S/287 • Viet Nam 
 
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  HS Code Description Applied 
rate 
(%) Committed 
rate in WTO 
(from 2012) 
(%) 
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; un-graded precious stones (oth er 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 fo r 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; ceme nt copper (preci pitated 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 (exc luding 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, trimmi ngs 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  
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, ro ds, 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 WT/TPR/S/287 • Viet Nam 
 
- 175 - 
 
  HS Code Description Applied 
rate 
(%) Committed 
rate in WTO 
(from 2012) 
(%) 
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 an d 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: Ministry of Finance, Circular No.157/2011/TT-BTC of 14 November 2011, effective 01.01.2012; 
Ministry of Finance, Circular No. 193/2012/TT-BTC of 15 November 2012, effective 01.01.2013; and WTO document WT/ACC/VNM/48. WT/TPR/S/287 • Viet Nam 
 
- 176 - 
 
  Table A3. 6 Goods subject to export restriction 
Measure/affected products 
Export prohibition 
- Weapons, ammunition, explosives, technical military equipment 
- Antiques 
- Narcotics 
- Toxic chemicals 
- Log, sawn timber, husked wood, fire wood, mi ning coal from wood or fire wood, other 
wooden products from group IA and high quality-manufactured pallet from group IIA (refer 
to the notice), rattan materials 
- Various kinds of wild animal and precious natural animals and plants 
Export subject to specific control 
- Coffee beans 
- Wild animals for export 
- Wild animals for breeding 
- Precious gems, metals and natural pearls 
- Wooden products (except handicraft; those pr oduced from cultivated  forest wood, from 
imported wood and from artificial pallet, implemented under Prime Minister Decision 
No. 136/1998/QD-TTg, 31 July 1998) 
- Minerals 
Note: Certain plant species are subject to a 'Not ice' requirement (see WTO document WT/ACC/VNM/48, 
Table 18. 
Source: WTO document WT/ACC/VNM/48 (Table 18).  
  
  WT/TPR/S/287 • Viet Nam  
 
- 177 - Table A3. 7 Assistance to chemical an d mechanical engineering industries 
Policy objective Specific targets Measures to be implemented Additional comments 
Chemical industry  
- Build a chemical 
industry with a relatively 
complete structure, 
including the production 
of materials to service 
other industries, 
meeting domestic 
demands and promoting 
exports; 
- Contribute to a rational 
distribution of 
production by branch 
and region, creating a 
balanced and reasonable 
development within the 
sector.  
 1. Chemical prod ucts used in agriculture:  
- Fertilizer: Invest in the modernization of factories producing 
phosphorous fertilizer, NPK fertilizer and biological organic fertilizer; 
the development of assorted mixed fe rtilizers with enhanced nutritive 
content. Capital to be concentrated towards factories making 
nitrogenous fertilizer from natural gas and coal, factories making NPK 
with advanced technologies, and DAP-manufacturing factories. Use 
assorted wastes to produce biological  organic fertilizer, minimizing the 
environmental pollution; assorted useful micro-organisms to be 
imported for the production of biological organic fertilizer.  
- Plant protection chemicals: Replace outdated processing 
technologies to make easy-to-use and environmentally friendly 
products. Step up research and output of products of biological origin, 
using new-generation and less polluting active elements and solvents.  
2. Petrochemical products: Attract capital from all economic sectors, 
especially foreign investment, to  exploit oil and gas resources 
efficiently. Combine oil refine ries and petrochemical and gas 
processing projects efficiently to make upstream petrochemical 
products for other industries.  
3. Industrial chemicals:  
- Base chemical products: Concentrate investment to ensure adequate 
acids for the production of fertilizer  and soda for the textile, paper, 
detergent industries, et c. Select the timing of investment in the 
production of soda and metal ox ides such as titanium oxide, 
manganese oxide, etc.   
- Electric goods and industrial gas products: Step up the production 
and quality of products to meet domestic demand. New technologies 
to be phased in for the production of high tech goods such as special 
batteries and rare gases.  
4. Chemicals as consumer goods: Diversified and higher production, 
meeting increasing domestic demand  with higher quality products. 
5. Pharmaceutical chemicals: Invest in modern technology, improve 
equipment and management to esta blish an industry capable of 
providing efficient materials for the production of medi cines. Establish 
businesses producing an tibiotics, new anti-mal arial, anti-tubercular 
drug resistance, and other essentia l pharmaceutical chemicals, and 
medical materials based on pharmaceuticals.  - Reduce input prices for important 
products relating to food security, 
national security, and human health.  
- Establish plans for the use of 
domestic natural resources with 
lower imports of intermediary 
products.  
- Increase and diversify links in 
production, upgrade infrastructure.  
- Train human resources and 
improve the managerial skills of 
officials.  
- Develop key scientific and 
technological programs in parallel 
with the establishment and 
development of a scientific and 
technological market. New solutions 
must support sustainable 
development and improve the quality 
of human resources.  
- Balanced development across 
regions, in keeping with the socio-
economic development strategy. 
Additional state instruments to be 
developed to encourage investment 
in specific regions to reduce regional 
imbalances.  
- Limit the importation of inferior-
quality products.  
- Limit the importation of raw 
materials and semi-finished products  
- Apply reasonable tax policies, 
encourage investment from different 
economic sectors, ODA, and FDI.  The chemical industry is 
divided into three groups:  
- Group I (to receive direct 
State investment): 
Production of nitrogenous 
and phosphorus fertilizers 
(including DAP); plant 
protection preparations; 
petrochemica l products; 
assorted base chemicals in 
large quantities, exploitation 
of raw materials for fertilizer 
production.  
- Group II (to be granted 
investment preferences): 
Production of assorted 
pharmaceuticals; rubber 
products; other base 
chemicals used in industrial 
production; and the 
exploitation and processing 
of other raw materials.  
- Group III: Production of 
NPK fertilizer and 
microbiological organic 
fertilizer, electric goods, 
industrial gases, detergents, 
paint, and other chemicals.  
  
  WT/TPR/S/287 • Viet Nam  
 
- 178 - Policy objective Specific targets Measures to be implemented Additional comments 
Mechanical engineering 
- Develop sub–sectors 
with the optimum 
exploitation of human 
and natural resources; 
- Foster innovation 
and adaptation of 
modern technology to 
reach the middle level 
of technology in Asia.  Sector objective: To supply 45 to 50% of local demand and to export 
30% of total production.  
Product-specific targets:  
1. Complete equipment: To supply 40% of local demand by 2010, 
focusing on the production of pulp  and paper, cement , electricity and 
oil, water, etc.  
2. Prime movers: To meet 60 to  70% of domestic demand for 
medium-sized and small prime movers by 2010, to manufacture 
hydraulic engines of 400 HP or more with a localization rate of 
35-40%. 
3. Tractors and agricultural machinery: 
 Meet domestic demand and gradually begin to export. 
 Encourage medium-sized and small manufacturing establishments 
and local mechanical engineering units.   
4. Machine tools. 
5. Construction engineering. 
6. Shipbuilding: 
- By 2010 Viet Nam's shipbuilding industry should be at the average 
advanced level in the region by 2010 and gradually begin to export. 
- By 2010, the shipbuilding industry should be able to construct most 
inland waterway transport means, project ships, fishing vessels and 
sea-going vessels less than 15,000 DWT; meet 70-75% of the 
demand for multi-purpose ships of 15,000 to 50,000 DWT and oil 
tankers of 100,000 DWT. Full repair of ships up to 400,000 DWT. 
- Increase the localization ratio to 60% for newly built ships by 2010, 
and 70% by 2020.  
7. Electric equipment: 
- Build a modern electric equipmen t manufacturing industry to reach 
the advanced level in the region by 2020. 
8. Automobile, communication, and transport engineering 
- Automobiles: 
 Common-type vehicles: Meet 40 to 50% of domestic demand with a 
localization ratio of up to 40% by 2005; and more than 80% of 
domestic demand with a localization rate of 60% by 2010 (50% for 
engines and 90% for gear boxes). 
 Special-purpose vehicles: Meet 30% of domestic demand and a 
localization ratio of 40% by 2005, meet 60% of domestic demand 
and a localization ratio of 60% by 2010. 
 High-class vehicles: Tourist auto mobiles manufactured by joint-
ventures must reach a localization ratio of 20-25% by 2005 and 40-
45% by 2010, meet 80% of the demand for high-class trucks and 
buses with a localization ratio of 20% by 2005, and 35-40% by 
2010. 
 - Technical standards to serve as basis 
for inspecting the quality of key 
mechanical products  of Vietnamese 
and foreign origin. 
- Conditional an d definite-term 
protection to be provided by the State 
for several Vietnamese mechanical 
products, accompanied by policies to 
promote and enhance the stability of 
domestically-made mechanical 
products. 
- Support the borrowing of working 
capital for manufacturers of 
mechanical equipment and projects to 
manufacture complete equipment 
requiring considerable capital and long 
production cycles . 
- Projects to manufacture key 
mechanical products shall be entitled 
to borrow capital pursuant to 
Government Resolution No. 11/NQ-CP 
of 31 July 2000 at an interest rate of 
3% per annum over 12 years and a 
grace period of 2 years. Repayments 
begin as from the fifth year, or the 
interest rate is subsidized if the capital 
is borrowed on commercial terms. 
- Equitize engineering enterprises, 
including the sale of equities to 
foreigners, to create new investment 
capital and diversif y capital sources. 
- Encourage investment in the 
manufacture of spare parts and 
components, and specialization and 
cooperation throughout the mechanical 
engineering industry. 
- Import tax reductions or exemptions 
to be granted to raw materials, 
components and parts for key 
mechanical products and for 
mechanical products made for the first 
time in Viet Nam. 
 
 According to the 
development strategy, 
mechanic enterprises should 
receive preferential interest 
rates. However, only 8 
projects got preferential rate 
(of 11.4%) over the last 
10 years. En terprises are 
confronted with relatively 
high interest rates, a long 
and complicated application 
process, and slow 
disbursement.  
 
  
  WT/TPR/S/287 • Viet Nam  
 
- 179 - Policy objective Specific targets Measures to be implemented Additional comments 
- Communications and tr ansport engineering: 
 Invest heavily in assembly technologies and equipment for 
manufacturing project vehicles and machinery, such as thermal 
bituminous concrete mixers, bitumi nous concrete spreaders, road 
rollers of all types, stone-grinding and screening stations of an 
output of 100-300 tons/hour. 
 Invest heavily in new technology for manufacturing high-class train 
cars with a localization ratio of more than 70% by 2005, reaching 
90% by 2010. - For key mechanical products, the 
State shall consider and provide capital 
support for technical services, such as 
the hiring of experts, procurement of 
designs and technologies and 
technology transfer, exceeding the 
capability of the enterprises. 
- Mechanical engineering enterprises 
shall be entitled to set aside up to 2% 
of their turnover for research and 
development activities. 
- Invest in training of human 
resources. 
Note: Concerning mechanical engineering, the Vietnamese authorit ies note that the Strategy docu ment was promulgated before Viet  Nam became a WTO Member. 
Targets and instruments have been revised accordingly, to be in line with Viet Nam's WTO commitments.  
 Source: The strategy on development of Viet Nam' chemical industry to the year 2010 (with a vision to the year 2020), Prime Min ister Decision No. 207/2005/QD–TTg 
of 18 August 2005. Viewed at: http://moj.gov.vn/vbpq/en/Lists/Vn%20bn%20p hp%20lut/View_Detail.aspx?ItemID=6778 . Development strategy until 2010 
with the orientation until 2020, Prime Minister Decision No. 186/2002/QD–TTg of 26 December 2002. Viewed at: 
http://moj.gov.vn/vbpq/en/Lists/Vn%20bn%20php%20lut/View_Detail.aspx?ItemID=9684 . 
 
  WT/TPR/S/287 • Viet Nam 
 
- 180 - 
 
  Table A3. 8 Main dedicated intellect ual property laws and regulations 
Relevant legislation Brief description 
All subject matters  
Civil Code, Part Six Basic law on intellectual property, which states that intellectual property rights, 
including copyright and related rights, indu strial property rights and rights to 
plant varieties, are property  rights; reaffirming civil pr inciples of intellectual 
property rights (specifically: determin ing subject matters, owners, content of 
rights and providing for the transfer of rights) 
Intellectual Property Law 
(IP Law) - Articles 4 and 6 + 
the relevant chapter of each 
IPR + chapter on enforcement Article 4 (interpretation of terms); Article 6: establishing the IPRs 
Comprehensive law governing all aspects of intellectual property rights, 
containing provisions on protectable subj ect matters, conditio ns for protection, 
establishment of rights, owners, scope an d limitations of rights, transfer of 
rights, representative, and enforcement of IPRs 
Government Decree 
No. 105/2006/ND-CP of 
22 September 2006, amended 
by Decree No. 119/23010/ND-
CP of 30 December 2010   The Decree makes detailed provisions and guidelines for implementing certain 
articles of the 2005 Intellectual Property Law regarding the protection of 
intellectual property rights and State management of intellectual property 
Copyright and related rights  
IP Law, Articles 4 and 6 + Part 
Two, Articles 13-35 in 
particular Part Two IP Law contains provisions on protectable subject matters, conditions 
for protection, establishmen t of rights, owners, scope and limitations of rights, 
transfer of rights, repres entative, and enforcement of copyright and related 
rights 
Government Decree 
No. 100/2006/ND-CP of 21 September 2006, amended by Decree No. 85/2011/ND-CP of 20 September 2011 The Decree makes detailed provisions and guidelines for implementing certain 
articles of the 2005 Intellectual Property Law and the Civil Code concerning copyright and related rights 
Government Decrees 
Nos. 47/2009/ND-CP of 
13 May 2009 and 
109/2011/ND-CP of 
2 December 2011 The Decree makes detailed provisions and guidelines for handling 
administrative violations in the field of culture and information 
Directive No.04/2007/CT-TTg of 22 February 2007 of the Prime Minister  The Directive mandates measures for intens ifying the protection of copyright to 
computer programs 
Directive No. 36/2008/CT-TTg The Directive strengthens the management and implementation of copyright 
and related rights protection 
Joint Circular No. 07/2012/BTTTT-BVHTTDL of 19 June 2012 The Circular stipulates the liabilities of intermediary services providing Internet 
and telecommunications networks regard ing the protection of copyright and 
related rights 
Trade marks (including Trade descriptions)  
IP Law, Part Three, section 4, 
Articles 72-75 in particular Part 3 contains provisions on protec table subject matters, conditions for 
protection, establishment of rights, ow ners, scope and limitations of rights, 
transfer of rights, repres entative, and enforcement of rights to trade marks 
Government Decree 
No. 103/2006/ND-CP of 
22 September 2006, amended 
by Decree No. 122/2010/ND-CP  The Decree makes detailed provisions and guidelines for implementing certain 
articles of the 2005 Intellectual Property Law concerning industrial property 
rights, including rights to trade marks 
Government Decree 
No. 105/2006/ND-CP of 22 September 2006  The Decree makes detailed provisions and guidelines for implementing certain 
articles of the 2005 Intellectual Property Law regarding the protection of intellectual property rights and State management of intellectual property 
Government Decree 
No. 106/2006/ND-CP of 
22 September 2006  The Decree makes detailed provisions and guidelines for handling 
administrative violations in the field of industrial property 
Circular No. 01/2007/TT-BKHCN of 14 February 2007 of the Ministry of Science and Technology  The Circular makes detailed provisions on the procedures for registration of 
industrial property rights, for guidin g the implementation of Government 
Decree No. 103/2006/ND-CP of 22 September 2006 
Geographical indications  
IP Law, Part Three, Section 6, 
Articles 79-83 in particular The Law contains provisions on protec table subject matters, conditions for 
protection, establishment of rights, ow ners, scope and limitations of rights, 
transfer of rights, repres entative, and enforcement of rights to geographical 
indications 
Government Decree 
No. 103/2006/ND-CP of 
22 September 2006, amended 
by Decree No. 122/2010/ND-CP  The Decree makes detailed provisions and guidelines for implementing certain 
articles of the 2005 Intellectual Property Law concerning industrial property 
rights, including rights to geographical indications  WT/TPR/S/287 • Viet Nam 
 
- 181 - 
 
  Relevant legislation Brief description 
Government Decree 
No. 105/2006/ND-CP of 22 September 2006  The Decree makes detailed provisions and guidelines for implementing certain 
articles of the 2005 Intellectual Property Law regarding the protection of intellectual property rights and State management of intellectual property 
Government Decree 
No. 106/2006/ND-CP of 
22 September 2006  The Decree makes detailed provisions and guidelines for handling 
administrative violations in the field of industrial property 
Circular No. 01/2007/TT-BKHCN of 14 February 2007 of the Ministry of Science and Technology The Circular makes detailed provisions on the procedures for registration of 
industrial property rights, for guidin g the implementation of Government 
Decree No. 103/2006/ND-CP of 22 September 2006 
Industrial designs  
IP Law, Part Three, Section 2, 
Articles 63-67 in particular) The Law contains provisions on protec table subject matters, conditions for 
protection, establishment of rights, ow ners, scope and limitations of rights, 
transfer of rights, repres entative, and enforcement of rights to industrial 
designs 
Government Decree 
No. 103/2006/ND-CP of 
22 September 2006, amended 
by Decree No. 122/2010/ND-CP  The Decree makes detailed provisions and guidelines for implementing certain 
articles of the 2005 Intellectual Property Law concerning industrial property 
rights, including rights to industrial designs 
Government Decree 
No. 105/2006/ND-CP of 22 September 2006  The Decree makes detailed provisions and guidelines for implementing certain 
articles of the 2005 Intellectual Property Law regarding the protection of intellectual property rights and State management of intellectual property 
Government Decree 
No. 106/2006/ND-CP of 
22 September 2006  The Decree makes detailed provisions and guidelines for handling 
administrative violations in the field of industrial property 
Circular No. 01/2007/TT-BKHCN of 14 February 2007 of the Ministry of Science and Technology  The Circular makes detailed provisions on the procedures for registration of 
industrial property rights, for guidin g the implementation of Government 
Decree No. 103/2006/ND-CP of 22 September 2006 
Patents  
IP Law, Part Three, Section 1, 
Articles 58-62 in particular The Law contains provisions on protec table subject matters, conditions for 
protection, establishment of rights, ow ners, scope and limitations of rights, 
transfer of rights, repr esentative, and enforcement of patent rights 
Government Decree 
No. 103/2006/ND-CP of 
22 September 2006, amended 
by Decree No. 122/2010/ND-CP The Decree makes detailed provisions and guidelines for implementing certain 
articles of the 2005 Intellectual Property Law concerning industrial property 
rights, including patent rights 
Government Decree 
No. 105/2006/ND-CP of 22 September 2006  The Decree makes detailed provisions and guidelines for implementing certain 
articles of the 2005 Intellectual Property Law regarding the protection of intellectual property rights and State management of intellectual property 
Government Decree 
No. 106/2006/ND-CP of 
22 September 2006  The Decree makes detailed provisions and guidelines for handling 
administrative violations in the field of industrial property 
Circular No. 01/2007/TT-BKHCN of 14 February 2007 of the Ministry of Science and Technology  The Circular makes detailed provisions on the procedures for registration of 
industrial property rights, for guidin g the implementation of Government 
Decree No. 103/2006/ND-CP of 22 September 2006 
Plant varieties  
IP Law, Part Four, 
Articles 157-197 in particular The Law contains provisions on protec table subject matters, conditions for 
protection, establishment of rights, ow ners, scope and limitations of rights, 
transfer of rights, represen tative, and enforcement of rights to plant varieties 
Government Decree 
No. 88/2010/ND-CP of 
16 August 2010?]  The Decree makes detailed provisions and guidelines for implementing certain 
articles of the 2005 Intellectual Proper ty Law concerning rights to plant 
varieties 
Government Decree 
No. 57/2005/ND-CP of 27 April 2005  The Decree makes detailed provisions and guidelines for handling 
administrative violations in the field of plant varieties 
Layout-designs (Topographies) of Integrated Circuits  
Intellectual Property Law, Part 
Three, Section 3, Articles 68-70 
in particular The Law contains provisions on protec table subject matters, conditions for 
protection, establishment of rights, ow ners, scope and limitations of rights, 
transfer of right, representative, and enfo rcement of rights to layout designs of 
integrated circuits 
Government Decree 
No. 103/2006/ND-CP of 
22 September 2006, amended 
by Decree No. 122/2010/ND-CP  The Decree makes detailed provisions and guidelines for implementing certain 
articles of the 2005 Intellectual Property Law concerning industrial property 
rights, including rights to layout -designs of integrated circuits 
Government Decree 
No. 105/2006/ND-CP of 22 September 2006  The Decree makes detailed provisions and guidelines for implementing certain 
articles of the 2005 Intellectual Property Law regarding the protection of intellectual property rights and State management of intellectual property WT/TPR/S/287 • Viet Nam 
 
- 182 - 
 
  Relevant legislation Brief description 
Government Decree 
No. 106/2006/ND-CP of 
22 September 2006  The Decree makes detailed provisions and guidelines for handling 
administrative violations in the field of industrial property 
Circular No. 01/2007/TT-
BKHCN of 14 February 2007 of the Ministry of Science and Technology  The Circular makes detailed provisions on the procedures for registration of 
industrial property rights, for gu iding the implementation of Decree 
No. 103/2006/ND-CP of 22 September 2006 of the Government 
Protection of undisclosed information  
Intellectual Property Law, Part 
Three, Chapter IX, Articles 127-128 in particular The Law contains provisions enforcement of rights to undisclosed information in 
the form of trade secrets, and test data 
Government Decree 
No. 103/2006/ND-CP of 
22 September 2006, amended 
by Decree No. 122/2010/ND-CP The Decree makes detailed provisions and guidelines for implementing certain 
articles of the 2005 Intellectual Property Law concerning industrial property 
rights, including rights to trade secrets 
Government Decree No. 105/2006/ND-CP of 22 September 2006  The Decree makes detailed provisions and guidelines for implementing certain 
articles of the 2005 Intellectual Property Law regarding the protection of intellectual property rights and State management of intellectual property 
Government Decree 
No. 106/2006/ND-CP of 
22 September 2006  The Decree makes detailed provisions and guidelines for handling 
administrative violations in the field of industrial property 
Decision No. 69/2006/QD-BNN of 13 September 2006 of the Minister of Agriculture and Rural Development  The Decision promulgates regulations on confidentiality protection of testing 
data submitted in the procedures for marketing approval of agro-chemical 
products 
Decision No. 30/2006/QD-BYT 
of 30 September 2006 of the 
Minister of Health  The Decision promulgates regulations on data protection applied to Drug 
Registration Dossiers (confidentiality protection of testing data submitted in the 
procedures for marketing approval of drugs) 
Source: Information notified by Viet Nam in 2008 (WTO  document IP/N/1/VNM/1), revised and updated by 
the WTO Secretariat and the Vietnamese authorities. 
 
 WT/TPR/S/287 • Viet Nam 
 
- 183 - 
 
   
Table A3. 9 IPR enforcement legislation 
Relevant legislation  Brief description 
Civil judicial procedures and remedies  
Civil Procedures Code of 
15 June 2004, in force 
since 1 January 2005  The Code provides for basic principles in ci vil proceedings, the orders and procedures 
for courts to settle civil cases, including cases related to disputes over intellectual 
property rights.  
Special requirements related to border measures  
Government Decree 
154/2005/ND-CP of 
15 December 2005, in 
force since 
1 January 2006  The Decree makes detailed provisions on customs procedures and the inspection and 
supervision by customs offices, including th e procedures for applying border control 
measures with regard to imports and exports related to intellectual property rights.  
Criminal procedures  
Criminal Code, 
Articles 41,131, 156, 
157, 158, 162,168, 171 
in force since 
1 January 2005, 
amended and 
supplemented by Law 
No. 37/2009/QH12 of 
19 June 2009  The Code includes provisions on copyright infringement (Articles 131 and 170a), 
production and trade in counterfeits (Articles 156-158), deceptive practices 
(Article 162), false advertising (Article 168), and infringement of industrial property 
rights (Article 171). Acts of wilful trademark counterfeiting and copyright piracy on a 
commercial scale are considered crimes under Articles 156-158 of the Criminal Code 
and Article 213 of the 2005 Intellectual Property Law.  
Article 41 provides for the confiscations of articles directly related to crime, i.e. 
including materials and implements used for production of the IPR infringing goods.  
Criminal Procedures 
Code of 26 November 2003, in force since 1 July 2004 The Code provides for basic principles in criminal proceedings, the orders and 
procedures for initiating criminal proceedings, investigation, prosecution, judgement and enforcement of criminal cases, includin g cases related to intellectual property.  
Source: WTO document IP/N/1/VNM/1, 6 February 2008, revised and updated by the Secretariat. 
 
 
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