RESTRICTED  
  
WT/TPR/G/287  
13 August 2013  
(13-4274)  Page: 1/21  
Trade Policy Review Body  Original: English  
 
TRADE POLICY REVIEW 
REPORT BY 
VIET NAM 
Pursuant to the Agreement Establishing the Trade Policy Review Mechanism (Annex 3 of the 
Marrakesh Agreement Establishing the World Tr ade Organization), the policy statement by 
Viet Nam is attached. 
 
 
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. WT/TPR/G/287 • Viet Nam 
 
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  Contents 
1   OVERVIEW ..................................................................................................................  3 
1.1   From Doi Moi Refo rms to WTO A ccession  ...................................................................... 3  
1.2   Viet Nam in the Mult ilateral Tradin g System .................................................................. 5  
2   ECONOMIC DEVELOPMENTS  AND TRADE PO LICIES ..................................................... 6  
2.1   Economic Developments ............................................................................................. 6  
2.2   Economic and Trade Policies ........................................................................................ 8  
2.2.1   Macroeconomic an d Structural Policies ....................................................................... 8  
2.2.1.1   Monetary and Exchange Rate Policies ...................................................................... 8  
2.2.1.2   Fiscal Policy ......................................................................................................... 9  
2.2.1.3   Economic  Restruct uring ....................................................................................... 10 
2.2.1.4   Competition Policy  and Consumer Protection ........................................................... 11 
2.2.1.5   Trade Remedy Regime ......................................................................................... 12 
2.2.2   Implementation of WTO Accession Commitments ....................................................... 12 
2.2.2.1   Tariffs ............................................................................................................. .. 13 
2.2.2.2   Other Commitmen ts on Trade in Goods .................................................................. 14 
2.2.2.3   Trade in Services ................................................................................................ 15 
2.2.2.4   Trade-Related Inte llectual Property Rights .............................................................. 16 
2.2.3   Trade Policy Developm ents since WT O Accession ........................................................ 16 
2.2.3.1   Multilater al Trading System .................................................................................. 16 
2.2.3.2   Bilateral and Regional Agreements ........................................................................ 17 
2.2.3.3   Recent Trade and Trad e Related Policy Developments .............................................. 18 
2.2.3.3.1   Trade Strategy ................................................................................................. 18 
2.2.3.3.2   Custom s Modernization ..................................................................................... 18 
2.2.3.3.3   Energy, in Partic ular Electric Power Sector ........................................................... 19 
2.2.3.3.4   Telecommunications ......................................................................................... 19 
3   OU TLOOK .................................................................................................................. 20 
 
 WT/TPR/G/287 • Viet Nam 
 
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  1  OVERVIEW 
1.1  From Doi Moi Reforms to WTO Accession 1.1.  The Government of the Socialist Republic of Viet Nam is pleased to present its first report to 
the Trade Policy Review Body on recent developments in its trade policies. The Vietnamese 
Government attaches great importance to both ex ternal and domestic transparency in the conduct 
of its trade policies and therefore welcomes this re view, which will contribute to further strengthen 
this important principle of the multilateral trading system. We also welcome this review as an 
opportunity to bring WTO Members' attention to the progress Viet Nam has achieved in its trade 
policies since it became a Member in 2007. It also allows us to highlight both the vital role that the trade and trade-related domestic policies have pl ayed in the country’s rapid economic and social 
development, and the future direction. 
1.2.  Viet Nam has made a long way to its first Trade Policy Review by the World Trade 
Organization. The foundation of Viet Nam's current trade policy is rooted in the Doi Moi  
(Renovation) policy, began in 1986, that introduced a host of structural reforms aimed to 
transform Viet Nam from a centrally planned, command economy towards a socialist-oriented 
market economy. The Doi Moi  reforms implied the overhaul of the entire economic system. This 
involved gradually replacing mandatory quotas and administered prices for goods and services and 
introducing market-based economic instruments. Following the launch of Doi Moi , the 1992 
Constitution explicitly sanctioned private ownership and recognized this sector as an important element of the economy, ensuring the equality of  various economic sectors whilst maintaining a 
lead role for state-owned enterprises (SOEs). Enterprise reforms have been extended to 
conversion of SOEs to limited liability companies or joint stock companies by means of 
equitization. Land reforms allowed households to have control and cash-flow rights on lands and, whilst maintaining entire people’s ownership over lands, legalized the sale, exchange, inheritance, 
mortgage, and rental of land use rights. Doi Moi  also introduced a two-tier banking system with 
the State Bank relinquishing its commercial banking functions and concentrating instead on its central banking functions. Other reforms concerne d the fiscal regime, monetary policy, lawmaking, 
and administrative decentralization with delegating some of the major functions and competences 
of the central Government to the provincial authorities, to mention a few. 
1.3.  Reforming external trade and foreign direct investment (FDI) regulations as well as 
progressive opening up of the economy to foreign goods and services were central to the Doi Moi  
policy. The trade reforms were inseparably linked with the reform of the SOEs sector to allow 
greater role of market forces in foreign trade inst ead of direct regulation by the State. Thus, the 
State's monopoly over foreign trade has been removed and the restrictions to establish foreign 
trading companies were gradually relaxed, allowing a rapid increase in the number of trading 
enterprises, and producers were allowed to ex port goods through any licensed foreign trading 
companies, and finally private companies were allowed to engage directly in foreign trade. In 
parallel, SOE-specific quotas and targets, which were at the base of the central planning system, 
have been progressively eliminated and replaced by new trade policy instruments like a price-based tariffs as well as quotas and licenses. The introduction of these new policy instruments was subsequently followed by a gradual liberalization of import barriers allowing for progressive 
integration into the regional and world economy.  
1.4.  FDI was likewise progressively liberalized since 1987. As a first step, 100% foreign ownership 
was permitted in several industries for Greenfield projects, as well as guaranteed free repatriation 
of profits, capital and assets. Through successive revisions of the FDI regime foreign investors' 
rights were widened and enhanced to make the investment environment more attractive. These 
successive liberalization measures have been largely induced by the need to facilitate more FDI 
inflows, to widen the number of sectors where FDI can contribute to increased production and 
exports, to achieve better performance of the FDI sector, to narrow the policy gap between foreign 
and domestic investors, as well as to comply with international commitments made on foreign investments. The FDI policy measures were comprehensive, ranging from registration procedures, 
investment licensing, land access, trading rights, foreign exchange control, and tax policies. 
Finally, in 2005 a more level-playing field has been established for all investors, while further simplifying FDI registration procedures. 
1.5.  Trade and FDI reforms and liberalization were key to improved competitiveness and the 
export-led growth strategy that Viet Nam has opted for since the reforms implemented from the WT/TPR/G/287 • Viet Nam 
 
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  mid-1980s. Especially increased FDI inflows had a distinct role in this strategy as massive FDI 
inflows allowed by the better investment climate has resulted in large increase in industrial output and stimulated export growth. Most of FDI has b een conducted under the form of joint ventures 
with SOEs, which helped the State to orientate international integration. FDI inflow into Viet Nam 
increased from US$0.34 billion in 1988 to approxim ately US$6.8 billion in 2005, with an annual 
growth rate of 28%, resulting in the increase  of FDI stock from US$1.4 billion in 1990 to 
US$85.45 billion in 2007 (US$210.5 billion at the end of 2012). As a result, Viet Nam ranked 
fourth
1 in 2006 among the most attractive developing  country locations for FDI. FDI had become a 
significant contributor to domestic investment (more than 25% of gross investment) and its contribution to exports amounted to 57.9%. FDI has therefore had a key contribution to the success of Viet Nam's export-led growth strategy. FDI contributed to strong trade and economic 
growth by being at the core of the export base, by  bringing capital, skills and training, by creating 
over one million jobs in foreign invested enterprises (FIEs) and raising incomes. 
1.6.  During the two decades that elapsed between the launch of Doi Moi  and WTO accession in 
2007, market oriented economic reforms together with trade and investment liberalization have 
contributed to the considerable development of Vi et Nam. Thanks to these reform policies, the 
country has achieved one of the most remarkable performances internationally in economic 
growth, raising standards of living, and poverty reduction. Between the start of the reforms in 
1986 and 2006, Viet Nam's growth rate has been among the highest worldwide. Average yearly 
GDP growth rate was 7.0% in between 1996 and 2 000, and 7.8% in the period 2002-2006. In the 
period 1986–2006, foreign trade has expanded at the rate of nearly 20% per year and the 
country's high export growth has been by far th e most dynamic among Asian exporters. The high 
economic growth over the last two decades has allowed impressive progress in poverty alleviation, even though progress in poverty reduction was uneven. Overall national poverty headcount ratio 
has declined substantially from 58% in 1993 to 16% in 2006 and again to 14.5% in 2008 and 
extreme poverty and hunger have been halved. 
1.7.  Closely linked to the Doi Moi  reforms, Viet Nam has consciously pursued from the early 
1990's a path towards international economic integration through trade agreements, which 
culminated in the conclusion of its WTO accession negotiations in 2006. During this period, Viet Nam has engaged successively in bilateral and regional trade agreements. Bilateral trade agreements with 40 different trading partners  were concluded, mostly in the form of 
most-favoured-nation treatment arrangements. Th e Agreement between the Socialist Republic of 
Viet Nam and the United States of America on trade relations (Viet Nam – US BTA) was the most comprehensive agreement in this period. Signed in July 2000 and effective since December 2001, 
the agreement includes a wide range of market libe ralization commitments in trade in goods, trade 
in services, protection of intellectual property rights and investment protection. Viet Nam's regional integration efforts resulted in its ASEAN membership in 1995, under which it became 
party to the CEPT/AFTA liberalization schemes, later subsumed in the ASEAN Trade in Goods 
Agreement. In addition, Viet Nam joined the Asia-Pacific Economic Cooperation (APEC), the largest economic trade cooperation group in the Asia Pacific region, in November 1998 and it has since been an active and responsible member of the organization. On the other hand, as a founding 
member of the Asia–Europe Meeting (ASEM) which was established in 1996, Viet Nam has actively 
participated in cooperation activities in three ma in areas: political dialogue, economic cooperation 
and other cooperation.  
1.8.  The legal and institutional reforms undertak en as early as 1986 have been spurred by steps 
towards international economic integration, such as ASEAN membership, the Viet Nam – US BTA, as well as WTO accession negotiations, but went well beyond the framework of international trade. 
Not only did these reforms result in WTO-compatible regulations in a host of areas, such as trade 
and investment rules, intellectual property, non-discrimination in pricing, but in general established a relatively effective legal system with many market-economic oriented laws and regulations. The creation of a level playing field for domestic and foreign market players compelled 
significant changes in the legal system, which resulted in increased transparency, improved 
legislative and regulatory framework and strengthened legal predictability. More fundamentally, these changes, which implied a radical departure from previous legal and institutional practices, 
ultimately have brought about a rule of law mindset in Viet Nam, which in turn contributed 
significantly to the economic development of th e country. The importance and the magnitude of 
the changes brought about in more than 20 past years since 1986 in the legal policy making 
                                               
1 UNCTAD: World Investment Report 2007. WT/TPR/G/287 • Viet Nam 
 
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  cannot be underestimated given the difficult starting situation where the country lacked experience 
in market economy oriented law making and where the vast majority of civil servants were used to methods of central economic planning. 
1.9.  Since the promulgation of the 1992 Consti tution, the National Assembly and the Standing 
Committee of the National Assembly have passed 368 laws and ordinances, and the Government 
has issued a large number of implementing decrees. The purpose of these legal acts, inter alia , is 
to bring into full play all production capacities of the country and create an environment for fair 
competition and help enterprises realize their production potentials and use their resources more 
effectively. These laws and ordinances regulate almost all of the social and economic areas, including international integration. As a result of the legal and institutional reforms, key institutions of the market economy have been established (such as contract, finance, banking, 
taxation, real estate market, labor market, technology market, securities market and environment 
protection), and the interference by the State through administrative measures in economic, 
commercial and civil matters has been decreased sharply, whilst its role in resolving problems 
faced by enterprises and traders has been enhanced. The new Constitution requires that State 
agencies must operate in compliance with the rule of law, economic reform and international integration requirements. Measures to guarante e human rights and citizen’s rights must be 
adopted and strengthened. The forms and regime of  ownership is clearly defined by law. Private 
ownership is protected on an equal footing with other forms of ownership. Property rights on shares, other securities and the right to make in vestment are recognized by laws. The reformed 
legal system has contributed to creating a good legal environment for business by protecting the 
right to do business and prohibiting unfair competition in conformity with the WTO rules. 
Vietnamese laws and regulations guarantee an equal legal treatment of Vietnamese and foreign investors. 
1.2  Viet Nam in the Multilateral Trading System 
1.10.  After 11 years of accession negotiation, on 11 January 2007, Viet Nam became the 
150
th Member of the World Trade Organization, marking a milestone in Viet Nam's international 
economic integration and openness process. WTO accession was a logical consequence of the 
domestic economic and trade reforms and trade liberalization that Viet Nam had been pursuing since the late 1980s-early 1990s and it crowned a process of reforms and efforts to integrate into the world economy. However, the Government of Viet Nam considers WTO accession not as the 
end of a process, but rather as a renewed basis fo r further domestic reforms. To Viet Nam, whose 
economic development is greatly dependent on foreign trade and access to open markets, the openness, stability and predictability that the WTO can provide in international trade is of utmost 
importance. Furthermore, as Viet Nam being attached to the rule-based multilateral trading 
system embodied in the WTO, its rules and princi ples will guide us in furthering the economic 
reforms and materializing the modernization policies.  
1.11.  Since its accession to the WTO in 2007, Viet Nam has greatly benefited from the multilateral 
trading system. Viet Nam now enjoys legally guaranteed MFN status in all WTO Members' markets, which creates a level playing field in our export markets. WTO membership has also ensured improved market access conditions for Vietnamese goods, especially textiles and clothing, which 
have greatly benefited from the elimination of the quota system. As a result, since 2007, 
Viet Nam's textile and clothing export growth ra te increased. Statistics show that in 2011-2012 the 
country respectively ranked second, third and fift h among the exporters to the textile and clothing 
markets of the United States, Japan, and the Europe an Union. On the other hand there is evidence 
that WTO accession had a strong and positive impact on Viet Nam's imports and inward FDI and because of a strong bi-directional relationship  between FDI and exports,  the WTO accession may 
have indirectly influenced Viet Nam's exports through the FDI channel. Viet Nam's welfare gains 
from WTO membership appear considerable. The IMF has estimated the annual consumer gains from the availability of cheaper imports (i.e. the increase in the consumer surplus) at US$1 billion (1.5% of GDP) in 2007, and US$2.2 billion (1.7% of GDP) in 2012, and projected to rise to about 
US$2.3 billion (0.9% of GDP) in 2019.  
1.12.  Significant achievements have been record ed in Viet Nam's establishment of the market 
economy, which has been instituted as one of the key drivers for the country's sustainable 
development. As a result, major trading partners su ch as Australia, China, India, Japan, Korea, 
Russia, and Switzerland, among others, as well as a large number of other African, American, WT/TPR/G/287 • Viet Nam 
 
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  Asian and European countries have recognized Viet Nam's full market economy status in 
conformity with WTO rules.  
1.13.  Beyond the direct economic benefits, the most important aim of Viet Nam's WTO accession 
was to enable improvement in development policies and the implementation of long-term changes 
envisaged for the economy. As a result of WTO accession, Viet Nam has succeeded in gaining 
institutional and policy reforms, moving towards improving its investment and business environment, and finding ways to increase its commodity and service exports.  
1.14.  We recognize the pivotal role of the multilateral trading system as well as its relevance for 
conducting our international trade activities. The Government reaffirms its full commitment to the principles and rules of the multilateral trading system as embodied in the WTO Agreements, and 
considers them as the foundation for its trade and economic integration policies. Since becoming a 
new WTO Member in 2007, Viet Nam has fully implemented its accession commitments. Even 
against a backdrop of an unfavorable world economic situation, the Government has exerted its best efforts in reforming the country's trade an d investment regime in a WTO-consistent manner 
with a view to creating a more favorable business environment, contributing to the strength of the 
multilateral trading system.  
1.15.  During its slightly longer than six years of WTO Membership, Viet Nam has attached a major 
interest to a successful completion of the Doha negotiations. Although the Doha Round has fallen 
short of our expectations, and we are disappointed to see the deadlock it is now facing, Viet Nam 
actively shared views in the negotiations of tr ade facilitation, NAMA, Agriculture, rules, and 
services, etc., either individually or together with like-minded WTO Members. Viet Nam considers 
that an early completion of the Doha round negotiations would allow Members to rebuild the 
confidence in the multilateral trading system, wh ich could also be supportive to the ongoing major 
restructuring of the Vietnamese economy. 
2  ECONOMIC DEVELOPMENTS AND TRADE POLICIES 
2.1  Economic Developments 2.1.  It is widely recognized that Viet Nam has been among the most successful East Asian 
economies since the launch of the Doi Moi  policy in 1986. Economic growth surpassed 9% per year 
just prior to the Asian financial crisis in 1997-1 998, and exceeded 8% per year before the great 
recession and financial crisis in 2008-2009. Between 2005 and 2010 Viet Nam's GDP
2 has grown 
by 35.8% to which three major factors made uneven contributions: increase in agriculture, 
forestry and fisheries sector, industry and construction and increase in services, whose 
contribution to GDP growth were respectively 11%, 39% and 50%. However, in the 2nd half of the 
2000s, the economy started to experience a period  of turbulence characterized by slow growth, 
weak international competitiveness and macroeconomic instability. In late 2007 and early 2008, 
Viet Nam was confronted with the economic overheating resulting from massive capital inflows. Attempts to sterilize these inflows were not ab le to prevent a boom in banking credit, an 
acceleration of inflation, a ballooning trade defi cit and asset price bubbles. In addition, in 2008, 
Viet Nam's economy, besides the domestic challenges, was caught in the midst of the global financial crisis. A determined reaction by the government from March 2008 onwards succeeded in stabilizing the economy and reducing the trade deficit to manageable levels. 
2.2.  Weak domestic demand weighed on real GDP growth, which slowed from 6.42% in 2010 to 
5.25% (y/y) in 2012, its slowest pace of expansio n since 1999. This decelerating growth was due 
to various factors. Spiraling inflation in 2011 ch anged consumer expectations, and this caused 
private consumption growth to weaken to 5% last year, from an average of 7.5% annually in 
2007-11. Furthermore, inward FDI, which had been  one of the main drivers of economic growth 
also seen a lackluster expansion. As a positive sign for renewed growth, headline inflation has 
declined from double digits to about 7% (y/y) in March 2013. Calm has returned to financial 
markets with the State Bank of Viet Nam (SBV)'s unceasing efforts to provide liquidity and the merger of several small weak banks. The current account surplus surged to over US$9 billion in 
2012. Currently, gross international reserves rose to more than 3 months of prospective imports of 
goods and non-factor services.  
                                               
2 GDP data based on 2010 comparative prices. WT/TPR/G/287 • Viet Nam 
 
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  Chart 1: Growth of output 2005-2012 
012345678910
2005 2006 2007 2008 2009 2010 2011 2012
GDP Agriculture, forestry and fishing Industry and construction Services 
 
Source: General Statistics  Office of Viet Nam. 
 
2.3.  In the 1st quarter of 2013, GDP grew by an estimate d 4.89% compared to the same period of 
2012, which is slightly higher than the corresponding figure of 4.75% for the 1st quarter of 2012. 
Growth of agriculture, forestry and fishery outp ut has attained 2.24% in Q1/2013, down from 
2.81% growth in Q1/2012, contributing a modest 0.31% to the general GDP growth rate. However, within this sector forestry rose by 5.38% , which is higher than the growth rate of 4.97% 
in the corresponding period of 2012. Growth of industry also decreased in Q1/2013, attaining 
4.95% against 5.80% realized in Q1/2012, contributing 1.73% to GDP growth. In contrast, 
construction output has considerably soared in the 1
st quarter of this year relative to the same 
period of 2012, as the sector's output grew by 4.79%, against a modest 0.77% increase in 
Q1/2012. The growth of the service sector is also  higher as its output rose by 5.65%, which is 
higher than the growth rate of 4.99% in the sa me period of 2012, contributing to 2.6% to GDP 
growth. 
Table 1: Economic growth forecast 2013-2017 
 2013 2014 2015 2016 2017 
GDP 6.3a  5.9  7.0  7.1  7.2 
Private consumption 5.9  6.5  7.2  7.1  7.2 
Government consumption 7.2  7.2  7.2  7.9  8.1 
Gross fixed investment 7.0  8.5  9.2  9.5  9.3 
Exports of goods and services 12.0  10.6  12.6  13.2  13.9 
Imports of goods and services 11.4  10.8  12.9  12.9  13.4 
Domestic demand 6.1  6.6  8.0  7.9  7.8 
Agriculture 3.2  3.1  3.3  3.3  3.3 
Industry 8.5  8.0  8.0  7.0  7.0 
Services 2.7  4.7  7.3  8.5  8.8 
a  IMF estimate. 
Source: Economist Intelligence Unit, Viet Nam Country Report , March 2013. 
2.4.  Rapid growth was accompanied by extraordinary increases in trade. The continuous domestic 
economic reforms and trade openings were at the heart of the explosion of FDI inflow and trade 
from the early 1990s until 2008. Between 1990 and 2000, the yearly average growth rate of 
exports of goods and services reached 19.6%, and the import growth rate was on average 16%. 
As a result, the share of trade in the GDP grew from 23% in 1986 to 67% in 1991, then to 97% in 
1998 and 171% in 2007. Yearly average export and import growth rates have fallen to 13.5% and WT/TPR/G/287 • Viet Nam 
 
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  13.9% respectively during the period 2001-2006, whic h further decreased between 2007 and 2011 
to reach only 10.85% and 11.90% mainly due to slowing of GDP and trade growth rates in 2008, 
and declines in both imports and exports for 2009. However, since 2010, the growth rate of exports and imports has been recovered fairly well, contributing to the overall economic growth of 
the country. 
2.5.  Evidence shows that in the period 2007–201 1, export growth has been mainly driven by 
external demand and trade expansion, trade liberal ization, as well as improved competitiveness. 
In terms of geographical destinations, overall, ex port markets have not been diversified, as major 
exports markets remained Viet Nam's traditional markets (ASEAN, US, EU, Japan), although exports are increasingly concentrated on newly opened markets (China and Republic of Korea) as a result of regional FTAs. Imports have expanded rapidly immediately after WTO accession, albeit 
slowing down recently due to domestic economic hardship and slower investment inflows.  
2.6.  Throughout the whole period since the opening of the economy, Viet Nam has been facing a 
persistent and continuously widening trade deficit closely related to considerable domestic savings-
investment gap, as well as macroeconomic and trade policies. However, the trade deficit narrowed 
since 2009 mostly because of domestic economic downturn. 
Chart 2: Evolution of exports and import s of goods and services (annual % growth) 
16.6116.44
15.7922.72 21.94
-7.6227.62
7.616.6614.11
3.4921.1
17.18
10.3719.9525.62
-10.0711.29
5.511.0814.65
12.16
6.79 6.89 7.08 7.34 7.79 8.23 8.46
6.315.326.785.89
-15-10-5051015202530
2000 2001 2002 2003 2004 2006 2007 2008 2009 2010 2011
Imports Exports GDP growth 
Source: World Bank World Development Indicators. 
 
2.2  Economic and Trade Policies 
2.2.1  Macroeconomic and Structural Policies 2.2.1.1  Monetary and Exchange Rate Policies 2.7.  SBV has implemented a sound monetary policy, which was flexibly adjusted in line with 
different stages of the economic cycle. The ulti mate goal of monetary policy management, as 
prescribed by the Law on State Bank of Viet Nam 2010, is to stabilize the value of national 
currency identified by the inflation target. The monetary policy framework has continuously been 
modernized and more indirect and market-oriented instruments have been introduced. 
2.8.  Viet Nam operates a managed floating exchange rate mechanism, on the basis of the foreign 
currency basket of countries with a commercial, lending and investment relationship with Viet Nam 
and in compliance with macro-economic objectives from time to time. Viet Nam has accepted the 
obligations of Article VIII of IMF since November 2005 and maintained an exchange system free of 
restrictions on payments and transfers for current international transactions.  WT/TPR/G/287 • Viet Nam 
 
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  2.9.  Amidst the global financial crisis in recent years, Viet Nam's economy suffered heavily from 
adverse external conditions with increasing pressures on inflation and macro-economic imbalances. In such context, the SBV has actively conducted monetary policy in a prudent and flexible manner toward containing inflation and stabilizing macro-economic conditions. As a result, 
the management of monetary policy by the SBV ha s significantly contributed to attaining these 
objectives. In particular, inflation in 2012 was curbed at 6.81%, reflecting considerable improvements over the inflation rate of 11.75% in 2010 and 18.13% in 2011. Economic growth in 
2012 reached 5.03%.  
2.10.  In 2013, the SBV continues to manage monetary policy in a prudent and flexible manner in 
close coordination with fiscal policy to lower inflation and improve economic growth as compared to 2012. Encouraging results have been achieved such as lower interest rates, stable exchange 
market, increased international reserves and improved credit performance. In the first half of 
2013, compared with the end of 2012, inflation rate was as low as 2.4%, lending interest rates reduced by 3-4 percentage points, returning to the level of 2005-2006 period while GDP growth 
reached 4.9%. 
2.2.1.2  Fiscal Policy 2.11.  Since the launch of Doi Moi policy, Viet Nam has carried out three important tax reforms to 
make them better contribute to the country's socio-economic development. The first tax reform 
had been implemented in the period 1990-1995 in order to introduce a unified tax system comprising 9 taxes in the state-owned sector, the privately owned industries and trade sector and the agriculture sector, which each had previously subject to different taxation. The second phase 
of tax reforms took place between 1997 and 2005 in the context of Viet Nam joining the ASEAN 
Free Trade Agreement (AFTA) preparing for WTO a ccession. This second reform phase aimed to 
introduce modern taxes, such as the value-adde d tax (VAT) and the corporate income tax (CIT), 
reflecting the Government's policy to implement market economy oriented taxes. During this 
reform the regulations on import and export duties as well as on special consumption taxes (SCT) have been amended to ensure internal consiste ncy of the tax system. The third phase of tax 
reform (2006-2010) had the objectives to encourage domestic production, investment and export 
activities, ensure adequate level of revenue co llection for the State budget, make taxes more 
coherent with Viet Nam's international economic integration, ensure fairness and equity, and contribute to the process of tax administration reform. The main reform measures included the 
amendment of VAT legislation (2008) to widen the tax base by reducing the number of goods and 
services exempt of VAT and reforming the ta x rate structure; the amendment of the SCT 
legislation (in 2005 and 2008) reduced the taxes on beer and alcohol products to expand the 
market and ensure non-discrimination between imported and domestic goods in line with our WTO 
accession commitments; the reform of the corpor ate income tax (CIT) in 2008 reduced the tax 
r a t e  f r o m  2 8 %  t o  2 5 %  a n d  s i m p l i f i e d  c e r t a i n  t a x  i n c e n t i v e s  b y  n a r r o w i n g  t h e  s c o p e  o f  t a x  
exemptions and reductions. Moreover new taxes have been introduced such as the Personal 
Income Tax (2009), the royalty tax (2009), the non-agricultural land use tax (2010), and the environmental protection tax (2010).  
2.12.  More recently, in May 2011, the Prime Minister issued Decision No. 732/QD-TTg 
("Decision 732") approving the tax reform strategy for the period 2011-2020 regarding tax policy 
and tax management. Under the Decision, there are 10 tax categories that shall be reformed, including (1) value-added tax (VAT)
3, (2) corporate income tax (CIT)4, (3) personal income tax 
(PIT)5, (4) special consumption tax, (5) import-export taxes, (6) royalty tax, (7) agricultural land 
use tax; (8) non-agricultural land use tax; (9) environmental protection tax, and (10) fees and charges. Accordingly, license tax shall be no lo nger valid and changed to a management fee for 
the annual business. VAT on goods and services would gradually be reformed until a single tax 
rate could be applied by 2020 (excluding the 0% VAT rate applied to export goods and services). Regarding the special consumption tax, a road map to reduce tax on tobacco, beer, liquor and automobiles would ensure regulation of the domestic market as well as satisfy the requirements of 
                                               
3 Law No. 31/2013/QH13 amending and supplementing a number of articles of the Law on value-added 
tax.  
4 Law No. 32/2013/QH13 amending and supplementing a number of articles of the Law on corporate 
income tax. 
5 Law No. 26/2012/QH13 amending and supplementing a number of articles of the Law on personal 
income tax. WT/TPR/G/287 • Viet Nam 
 
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  global integration. Import tax and related trade barriers would be reduced to facilitate free trade. 
Corporate income taxes would be reformed with the rate being gradually reduced under an appropriate roadmap to help companies enhance their capital and production and sharpen their competitive edge. Under the plan, total revenues from tax and fee in the period 2011-2015 are 
expected to account for 22-23% GDP, the period 2016-2020 accounts for 21-22% GDP; local 
revenues (excluding crude oil revenues) accounts for more than 70% of total state budget revenues in 2015 and more than 80% in 2020. By 2015, tax administration would also be 
modernized to meet global standards by ensuri ng that at least 65% of total enterprises use 
electronic-tax filing. The tax reform strategy woul d also aim to make Viet Nam one of the leading 
countries in ASEAN for the most favorable conditions for doing business in terms of taxation in 2020.  
2.13.  The economic development gained a significant momentum with the establishment and 
operation of the stock market from July 2000. Since then, the capital market has seen rapid development and has gradually been integrating wi th the international capital market. Viet Nam's 
stock market has become an important capital channel for the economy, attracting the 
participation of foreign and domestic investors, enhancing the transparency and corporate governance, and contributing to the ongoing restru cturing and equitization of SOEs in the country. 
2.2.1.3  Economic Restructuring 
2.14.  In 2012, the Government took renewed efforts to help stabilize the macro-economy, which 
resulted in the comprehensive "Master Plan on Economic Restructuring attached to change of growth model towards improvement of quality, efficiency and competitiveness for the period 
2013-2020", adopted on 19 February 2013. The Master  Plan aims to achieve the socialist-oriented 
market economy, create a system of sound, stable and long-term economic growth, promote the allocation and use of social resources in competitive sectors and products, improve labor 
productivity and competitiveness, create an efficient economic structure, promote industries using 
high technology, improve the internal strength of the economy, and enhance international integration.  
2.15.  The policy document sets the main parameters for macro-economic and trade policies, 
amongst others, and provides the broad guidelines for structural reforms. It calls for a prudent monetary policy, which is to be linked to a tight fiscal policy to control inflation while ensuring macroeconomic stability and sound growth.   
2.16.  The Master Plan provides guidance for re structuring the economy in order to address the 
structural factors for the current economic difficulties, namely slow and inefficient growth, weak international competitiveness and macroeconomic instability. The three key areas of concern, 
identified as the most in need of urgent reforms, are the SOEs sector, the financial - banking 
system, and public investment, where the Government intends to implement reforms over the short run (2013-2015). Through these reforms, it is expected that the economy would be 
restructured in such a way that creates a new, faster growth paradigm by 2020 that results from 
enhanced efficiency and improved international co mpetitiveness. The Master Plan indicates that 
the new growth model is expected to make Viet Nam a modern industrialized country by this time.   
2.17.  The Master Plan envisages the restructuring of investment, with focus on public investment. 
It calls for the mobilization of different sources of capital for development investment, so that the 
total investment accounts for 30-35% of the GDP with State investment maintained at the level of 35-40% of total social investment. The Government  is to provide the greatest possible scope and 
opportunity for private – especially domestic – investment, and encourage and facilitate private 
investment in infrastructure and key economic zones, as well as in sectors and products with high development potential.  
2.18.  The Master Plan provides for the restructur ing of the banking system with the road map as 
follows: (i) In the 2011-2015 period, focus on st rengthening financial situation and improving 
operational capabilities of credit institutions, enhancing safety and operational efficiency of credit institutions and enhancing regulation compliance and market discipline in banking operation; (ii) 
By 2020, restructure fundamentally, thoroughly and comprehensively credit institutions so as to 
develop a system of multi-functional credit institutions towards modern, safe and efficient operation, with diversification in ownership struct ure, size and type, whic h are capable of greater WT/TPR/G/287 • Viet Nam 
 
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  competitiveness and based on advanced technology and banking governance in consistence with 
international standards. Accordingly, various determined and comprehensive measures have been taken proactively and a remarkable workload has been finished to pave the way for accelerating banking reforms and non-performing loans (NPL) resolution, specifically: (i) completing legal 
framework by developing Plan to restructure credit institutions (CI) system; introducing 
regulations on post-supervision measures, M&A; enhancing prudential ratio, assets classification regulation in line with international practices; (ii) comprehensively supervising all banks and 
identifying banks which need restructuring; and (iii) proactively resolving NPL by developing Plan 
on NPL resolution and establishing Viet Nam Asset Management Company (AMC). As a result, 
Viet Nam has gained initial positive outcomes: (i) systemic safety and soundness has been significantly improved; (ii) weak banks have been  closely monitored, and dealt with appropriate 
measures, so that monetary market remained stabilized; (iii) NPL ratio continues to decrease. 
Besides, for the first time, Viet Nam has conducted a financial sector assessment program (FSAP) supported by IMF/WB. This would provide a comprehensive picture of the financial sector and lay 
down important directions for the future financial and banking reforms. 
2.19.  Regarding the reorganization of the SOEs sector, the Master Plan follows the project on 
"Restructuring of SOEs, focusing on State economic groups, general corporations in the period 
2011–2015" approved by the Prime Minister in 2012, and which instructed the ministries to 
classify SOEs according to the nature of their acti vities, their role in the economy, and the desired 
level of State ownership. The classification would provide the basis for further equitization of SOEs as well as for rationalization of the structure of the SOEs sector. The decisive factor for the 
classification would be the role that the State wi shes to play in the economy. The project gave 
initial restructuring priority to enterprises in commerce, construction, lottery, telecom, water supply, urban sanitation, irrigation, maintenance of  roads and railways. In turn, the Master Plan 
reiterates the classification and re-organization of SOEs, now with the objective that SOEs are 
concentrated in the defense industries, natural monopolies, high-tech sectors, and in industries supplying primary goods and services. The Government will speed up the equitization and 
ownership diversification in SOEs in which full State ownership is not deemed necessary. As a 
result, the State would equitize nearly half of the 1,309 SOEs. The remaining 692 SOEs would later be reorganized into 44 economic groups and general corporations with 150 subsidiary companies. The Master Plan instructs SOEs to restructure their investment portfolio and business lines so as to 
reduce the scope of their activities on their core business functions, and to divest in their non-core 
businesses and in joint-stock companies in which the State does not need to be the dominant shareholder.  
2.2.1.4  Competition Policy and Consumer Protection 
2.20.  The Government of Viet Nam recognizes the indispensable role of effective competition 
policy in a market economy, as well as the benefits of competitive markets for economic efficiency 
and economic development. The momentum for the adoption of a competition law has been 
created by the advances achieved during the tr ansition towards a socialist-oriented market 
economy in which, according to the 1992 Constitu tion, private ownership and the right to set up 
enterprises and freely engage in business are clea rly recognized and protected. The progressive 
opening up of the Vietnamese market to foreign goods, services and investment called for 
protecting the economic benefits from regional and global trade integration against possible anti-competitive behaviors. The process of accession to the WTO has played a distinguished role in the 
way towards the adoption of a competition law in Viet Nam. Enacted on 3 December 2004 and 
entered into effect on 1 July 2005, the Vietnamese Law on Competition (VLC) was the result of a four-year drafting process, with reference to the statutes of nine foreign jurisdictions and the 
model laws promoted by UNCTAD and the World Bank.  
2.21.  The overall goal of the VLC is to promote a competitive business environment and 
socio-economic development in Viet Nam as well as to protect the legitimate interests of the State, enterprises, and consumers. The VLC applies to anti-competitive agreements (concerted 
practices), abuse of dominant and monopoly positions, and mergers and acquisitions, as well as to 
unfair competition. The Law applies to all bu siness enterprises and professional and trade 
associations in Viet Nam; overseas enterprises and associations registered in Viet Nam; public 
utilities and state monopoly enterprises; and State administrative bodies. It has superseding 
power over all the other enacted laws regarding restrictive business practices and unfair competition practices. Therefore, VLC is applicable to every business without discrimination 
towards ownership types of enterprises (domestic and foreign, state-owned or privately-owned). WT/TPR/G/287 • Viet Nam 
 
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  Since 2005, Viet Nam competition authorities (Viet Nam Competition Authority and Viet Nam 
Competition Council) have handled more than 40 competition restriction cases, in which 3 cases with final decisions; more than 90 unfair competition cases; and 16 cases of merger and acquisition.    
2.22.  The Government of Viet Nam attaches great importance to the role of the Competition Law 
as an indispensable element in furthering the reform process towards an effective competitive economy. Therefore, one of the priorities of the "Strategy for the Development and Improvement 
of Viet Nam's Legal System to the Year 2010 and Di rection for the Period up to 2020" is to further 
improve the VLC to create more freedom for business activities and establish comprehensive markets. In a similar vein, the "Socio-economic Development Strategy for the Period 2011-2020", states that VLC and its enforcement should be improved in order to establish a competitive 
market, effectively control abuse of dominant or monopoly positions, and protect consumers.  
2.23.  Closely linked to effective competition in Viet Nam, the Law on Protection of Consumers' 
Rights was passed by the National Assembly in 2010 and came into effect in 2011, which marked a 
significant milestone in consumer protection in Viet Nam. So far, the Vietnamese Competition 
Authority, which is to implement both the VLC an d the Law on Protection of Consumers' Rights, 
has handled more than 150 consumer protection cases.  
2.2.1.5  Trade Remedy Regime 
2.24.  In the context of global economic integration and in consideration of the fact that a number 
of Vietnamese industries are infant and facing an increasing number of trade remedy cases from foreign countries, Viet Nam recognizes the importance of developing the legal framework for 
application of trade remedy measures to protect le gitimate interests of domestic enterprises. Our 
trade remedy regime is in full compliance with the WTO agreements on trade remedies.   
2.25.  In the area of anti-dumping, the Or dinance No. 20/2004/PL-UBTVQH11 sets out the 
framework for filing of complaints, initiation and conduct of an anti-dumping investigation, 
consultation with relevant parties, confidentiality, preliminary and final determinations, application of anti-dumping measures, review, complaints, and handling of violations. Decree 
No. 90/2005/ND-CP further details provisions  to implement the Ordinance No. 20/2004/PL-
UBTVQH11. 
2.26.  Countervailing measures may be applied pursuant to the Ordinance on Anti-Subsidy for 
imports into Viet Nam No. 22/2004/Pl-UBTVQH 11 and Decree No. 89/2005/ND-CP detailing a 
number of provisions of the Ordinance. The Ordi nance and the Decree stipulate the definition of 
subsidy, investigation procedure and method of  application of anti-subsidy measures.   
2.27.  The application of safeguard measures is regulated by the Ordinance No. 42/2002/PL-
UBTVQH10 on safeguard measures against goods imported into Viet Nam and Decree 
No. 150/2003/ND-CP detailing the Ordinance.  The Ordinance and the Decree describe the 
conditions for application of safeguard measures, investigation procedures, methods of application 
of safeguard measures and compensation.   
2.28.  Regarding the implementation of legal framework for trade remedies, Viet Nam has not 
conducted any countervailing investigation so far.  With regard to safeguard measures, Viet Nam 
initiated a safeguard investigation against imports of float glass through Decision No. 3329/QD-
BCT of 1 July 2009 and terminated the case with no safeguard measures imposed. Recently, on 
26 December 2012, the Ministry of Industry and Trade initiated a safeguard investigation on imports of certain refined vegetable oils. On 22 April 2013, Viet Nam made the decision to impose 
the provisional safeguard measure with the duty of 5% and the investigation is underway. With 
regard to anti-dumping measures, on 2 July 2013, Viet Nam has made a decision to initiate an anti-dumping investigation on certain cold-rolled stainless steel originating in the Republic of 
Indonesia, Malaysia, Chinese Taipei, and the People's Republic of China.   
2.2.2  Implementation of WTO Accession Commitments 2.29.  As a strong supporter of the multilateral trading system, Viet Nam has been seriously 
implementing all of its accession commitments. Even against the backdrop of the international WT/TPR/G/287 • Viet Nam 
 
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  financial and economic crises, the Government gave priority to reforming the country's trade and 
investment regime with a view to full compliance with our WTO accession commitments. Viet Nam has started to prepare for the implementation of its accession commitments long before the official day of its membership. The Government has commenced a set of action plan preparing the 
administrative agencies concerned at both central and provincial government levels for the 
implementation of our accession commitments.   
2.30.  The legislative work to implement our acce ssion commitments required not only revisiting 
the whole body of domestic laws, but also reviewin g the legal system itself. To ascertain that no 
loophole remains in the transposition of our accession commitments in domestic legislation, a clause has been systematically entered in legislative acts providing that, in cases where a legal document and an international treaty to which Viet Nam is a party contain different provisions on 
the same matter, the provisions of the treaty shall prevail.  
2.2.2.1  Tariffs 2.31.  Viet Nam has made ceiling binding on its entire tariff nomenclature (10,600 lines). As a 
result, the average ad valorem  tariff rate of 17.5% was to be reduced to 11.4% by 2019. For 
agricultural products, the tariff reductions had to be made from 22.4% to 20.9%, and for non-agricultural products tariff the reductions will result in average tariff being brought down from 
13.1% to 12.6% within the implementation period.  
2.32.  As all other newly acceded Members, Viet Nam has committed to participate in a number of 
sectoral liberalization agreements and initiatives. One of those sectors in which Viet Nam committed to make full participation is information technology with the Information Technology 
Agreement (ITA).  
2.33.  Viet Nam has constantly taken the necessary legislative measures to implement its tariff 
reduction commitments in accordance with its Schedule.
6 Progress of tariff reduction commitments 
has been made either in accordance with the Schedule or faster than scheduled. Viet Nam's 
average import tariff rate in 2012 is 10.4%, much lower than its WTO commitment due to the fact that tariff reduction of a number of Vietnamese products has been made faster than scheduled.  
2.34.  For non-agricultural products, in general the current applied tariff rates were lower than 
those committed until the end of 2009. The highest tariff reduction was applied for seafood, textiles, garment, wood and paper, iron and steel, electronic and other manufactured products. For seafood, around two third of applied tariff lines are lower than committed, the remaining equal to 
those in commitments.  
2.35.  Tariff quotas are applicable for eggs, refined and raw sugar, tobacco materials and salt. 
Viet Nam has implemented these commitments on schedule.
7 
                                               
6 Commitments to reduce tariffs an d export taxes on goods are stipulated in Decision No. 39/2006/QD-
BTC dated 28 July 2006, Decision No. 106/2007/QD-BTC dated 20 December 2007 , Decision No. 
123/2008/QD-BTC dated 26 December 2008 , Circular No. 216/2009/TT-BTC dated 12 November 2009, Circular 
No.1842010/TT-BTC dated 15 November 2010, Circular No. 157/2011/TT-BTC dated 14 November 2011, Circular No.193/2012/TT-BTC dated 15 November 2012. 
7 Legal documents on tariff quotas include Decision No. 35/2006/QD-BTM dated 8 December 2006 on 
Volume of 2007 tariff quotas for imports ; Decision No. 77/2006/QD-BTC dated 29 December 2006 on 
Promulgating the list of commodities and their tariff rates subject to tariff quotas ; Decision No. 14/2007/QD-
BCT dated 28 December 2007 on Volumes of tariff quota applicable to imported goods in 2008 ; Circular No. 
16/2008/TT-BCT dated 9 December 2008 Guiding importation of commodities  under the list of tariff quota 
control in 2009 ; Circular No. 37/2009/TT-BCT dated 15 December 2009 guiding importation of commodities 
under the list of tariff quota control in 2010's import tariff quotas; Circular No. 188/2009/TT-BTC dated 
29 September 2008 promulgating the list of goods and import tax rates subject to tariff quotas ; 
Circular No. 45/2010/TT-BCT dated 31 December 2010, stipulating the import of goods of the list of 
management of export and impo rt upon tariff quota in 2011 ; Circular No. 02/2012/TT-BCT dated 
18 January 2012, stipulating the import of material tobacco under the 2012 tariff quota ; 
Circular No. 22/2012/TT-BCT dated 6 August 2012, on the import of salt, sugar, and poultry eggs under the 
tariff quotas 2012 ; Circular No. 111/2012/TT-BTC dated 4 July 2012 promulgating the list of goods and import 
tax rates subject to tariff quotas ; Circular No. 04/2013/TT-BCT  dated 8 February 2013 , on the import of salt, 
sugar, and poultry eggs under the tariff quotas 2013 ; Circular No. 02/2013/TT-BCT dated 18 January 2013, 
stipulating the import of material tobacco under the 2013 tariff quota  WT/TPR/G/287 • Viet Nam 
 
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  2.36.  Viet Nam implements tariff rates with resp ect to used passenger cars having 15 seats or 
fewer in a manner to ensure that applied absolute  tariff rates are not higher than combined tariff 
rates under its WTO commitments. With regard to export tariff, Viet Nam has reduced steel waste and scrap tariff to 17% and tariff of other metal waste and scrap to 22% pursuant to its WTO 
commitments.  
2.2.2.2  Other Commitments on Trade in Goods 2.37.  Viet Nam made numerous accession commitments on trade in goods other than tariffs. 
Following is the review information on the implementation of the most notable ones.  
2.38.  Regarding excise duties, such as on alcoho lic beverages, the pre-existent tax differentials 
between domestically produced and imported go ods have been removed though amendment to 
the Law on Excise Duty that took effect on 1 April 2009 and its implementing Decree 
No. 26/2009/ND-CP.   
2.39.  Viet Nam has abolished upon WTO accession all kinds of export subsidies for agricultural 
products. However, in accordance with the Agreem ent on Agriculture, Viet Nam is still able to 
reserve two forms of export subsidies permitted by WTO to developing countries to reduce the 
costs of marketing agricultural exports and the co sts of international transport and freight.   
2.40.  Concerning trading rights (the right to import and export), Viet Nam has committed to grant 
full import trading rights on par with Vietnamese traders to foreign individuals and FIEs from 
1 January 2007 except for some products for which full import trading rights were to be granted from 1 January 2009 and other that would remain under permanent exception. Since its WTO accession, Viet Nam has adopted several legislative acts to give effect to this accession 
commitment, such as the Government Decree No . 23/2007/ND-CP implementing the Commercial 
Law regarding trading and distribution activi ties by FIEs in Viet Nam, the Decision 
No. 10/2007/QD-BTM publicizing roadmaps for goods trading and directly related activities , the 
Circular No. 09/2007/TT-BTM providing guidance on  the Decree No. 23/2007/ND-CP, the Circular 
No. 05/2008/TT-BCT amending and supplementi ng the Circular No. 09/2007/TT-BTM. On 
22 April 2013, the Minister of Industry and Trade issued the Circular No. 08/2013/TT-BCT 
providing guidelines on the import, export, and distribution of goods by FIEs in Viet Nam. 
Accordingly, FIEs are allowed to exercise export and import rights, distribution rights, establish 
retail outlets, engage in the trading of goods an d related activities with an export processing 
enterprise, contribute capital to, or purchase shares in, Vietnamese enterprises that engage in the 
trading of goods and related activities. The Ci rcular No. 08/2013/TT-BCT, which replaced the 
Circular No. 09/2007/TT-BTM and Circular No. 05/2008/TT-BCT, took effect on 7 June 2013. Trading rights for foreign traders without commercial presence in Viet Nam is prescribed in the 
Decree No. 90/2007/ND-CP. According to this Decree, foreign traders without commercial 
presence in Viet Nam have import right and export right on goods which are allowed to import and export pursuant to domestic laws and market  access commitments of Viet Nam since the 
Certificate of import and export right registration is granted. Those foreign traders are also allowed 
to buy goods for exporting and sell imported goods to Vietnamese traders who have business registration on those goods pursuant to current do mestic laws. Procedures for granting, modifying, 
extending and revoking the Certificate of import and export right registration of foreign traders 
without commercial presence in Viet Nam are laid down in the Circular No. 28/2012/TT-BCT.   
2.41.  With respect to customs, Viet Nam has fully complied with WTO principles on customs fees 
and customs valuation determination pursuant to the WTO Customs Valuation Agreement; 
simplifying and harmonizing customs procedures to further facilitate trade.   
2.42.  With respect to price management, pursuant to the WTO commitments, the price 
management mechanism has been gradually improved in a way consistent with the movement of 
the market economy. The promulgation of Decr ee No. 75/2008/ND-CP of the Government which 
details the implementation of the Ordinance on Pr ices clearly reflected the changes in the price 
management in the areas of price valuation, stabilization, registration and declaration, whereby the State has gradually granted the price valuation rights to enterprises. More recently, since 
1 January 2013 the Ordinance on Prices has been replaced by the Law on Price 2012. With the 
issuance of the new Law, the scope and circumstances for application of price registration and declaration have significantly been narrowed down. WT/TPR/G/287 • Viet Nam 
 
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  2.2.2.3  Trade in Services 
2.43.  In its services Schedule, Viet Nam made specific commitments in 11 sectors covering more 
than 110 out of the 155 sub-sectors of the WTO cla ssification (as listed in document W/120). All 
Market Access and National Treatment commitments have been implemented.   
2.44.  For commitments which provided higher leve ls of Market Access or National Treatment to 
foreign services and service providers than the pre-existing regulations, the Government has issued new legal documents to implement the commitments. The sectors concerned are 
distribution
8, banking9, insurance10, and telecommunication11, and services relating to securities12 
(part of banking services in the WTO services cla ssification list). For the remaining services, the 
commitments have been implemented pursuant  to the Resolution No. 71/2006/QH11 dated 
29 November 2006 ratifying the WTO Protocol on Accession of the Viet Nam and the Law on 
Signatory of, Accession to and Implementation of International Treaties No. 41/2005/QH11 dated 
24 June 2005.   
2.45.  As a matter of fact, sectors that have been relatively quickly liberalized (i.e. with no or short 
transitional period) are banking services, distribution services, construction, healthcare, tourism, 
insurance, business services (legal, information technology, research and development).   
2.46.  With respect to the banking sector, by 2011, restrictions on deposit raising activities in VND 
of foreign bank branches were removed; foreign banks are allowed to establish banks with 100% 
foreign capital in Viet Nam and to carry out similar banking activities as domestic commercial banks. To date, all WTO commitments in the bankin g sector have been fully implemented. Foreign 
credit institutions can be present in Viet Nam in various forms, including subsidiaries, branches, 
joint ventures, representative offices and participation in join stock commercial banks. 
2.47.  In the insurance and security sectors, Viet Nam allows the establishment of wholly 
foreign-owned companies in joint-stock form and branches of foreign non-life and security 
companies, creating a transparent and equal enviro nment for foreign financial service providers.   
2.48.  In the telecommunication sector, right after the accession, foreign investors were allowed to 
establish joint ventures with registered teleco mmunication service providers in Viet Nam. For 
services with network infrastructure, the foreig n ownership in joint venture cannot exceed 49% 
                                               
8 Decree No. 23/2007/ND-CP dated 12 February 2007 on Guiding implementation of Commercial Law 
regarding purchase and sale of goods and activities directly related to the purchase and sale of goods by 
foreign invested ente rprises in Viet Nam ; Circular No. 09/2007/TT-BTM dated 17 July 2007 Guiding 
implementation of Decree No. 23/2007/ND-CP , amended and augmented by Circular No. 05/2008/TT-BCT 
dated 14 April 2008; Decision No. 10/2007/QD-BTM dated 21 May 2007 Promulgating roadmaps of WTO 
commitments on merchandise trade and directly related activities and Circular No. 08/2013/TT-BCT providing 
Guidelines on the Import, Export, and Distribution of  Goods by Foreign Invested Enterprise in Viet Nam , 
replacing the two aforementioned Circulars. 
9 Decree No. 22/2006/ND-CP dated 28 February 2006 on Organization and operation of foreign bank 
branches, joint-venture banks, banks with 100% foreign capital, and representative offices of foreign credit 
institutions in Viet Nam, partly replaced by  Decree No.57/2012/ND-CP dated 20 July 2012 on the financial 
regulations applicable to branches of foreign banks ; Circular No. 03/2007/TT-NHNN dated 5 June 2007 Guiding 
implementation of some articles of Decree No. 22/2006/ND-CP, replaced by Circular No. 40/2011/TT-NHNN 
dated 15 December 2011, regulating on licensing and organizations, operations of commercial banks, foreign 
bank branches, representative  offices of foreign credit institutions an d other foreign organizations with banking 
operations in Viet Nam ; Decree No. 69/2007/ND-CP dated 20 April 2007 on Foreign investors' purchase of 
shares of Vietnamese commercial banks ; Circular No. 07/2007/TT-NHNN dated 29 November 2007 Guiding 
implementation of Decree No. 69/2007/ND-CP.  
10 Decree No. 45/2007/ND-CP dated 27 March 2007 on detailed guidelines fo r implementation of a 
number of articles of Law Regulating  Businesses in Insurance Activity, replaced by Decree No. 123/2011/ND-
CP dated 28 December 2011 , detailing a number of articles of the Law amending and supplementing a number 
of articles of the Law on Insuranc e Business, and amending and suppleme nting a number of articles of the 
Government's Decree No. 45/2007/ND-CP of 27 March 2007, detailing a number of articles of the Law on Insurance. 
11 Law on Telecommunication  dated 23 November 2009; Decree No. 121/2008/ND-CP dated 
3 December 2008 on Investment activities in the postal and telecommunication sector, replaced by 
Decree No. 25/2011/ND-CP dated 6 April 2011 detailing and guiding the implementation of a number of 
articles of the Law on Telecommunications . 
12 Decision No. 55/2009/QD-TTg dated 15 April 2009 on  Participation rate of foreign investors' in 
Vietnamese secu rities market.  WT/TPR/G/287 • Viet Nam 
 
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  (for basic services) and 50% (for value-added services) of chartered capital of the joint-venture 
company; and ownership of 51% is considered as the party has controlling power over its governance. For services without network infrastr ucture, the foreign ownership in a joint venture 
cannot exceed 70% (for Virtual Private Network services) and 65% (for other services) of the 
chartered capital of the joint-venture company.   
2.49.  In the distribution sector, the establ ishment of 100% foreign-owned enterprises was 
allowed as from 1 January 2009. Recent significant de velopment in the retail sub-sector is the fact 
that, for the first time, FIEs are exempted from the economic needs test process when opening a 
retail outlet beyond the first one if the outlet is of less than 500 square meters in size and is located in designated areas for trading activities. In addition a clearer licensing process and new guidelines regarding the establishment of an Economic Needs Assessment Committee will help to 
improve transparency in the overall licensing proc ess. The new regulation also establishes simpler 
procedures to obtain licenses for existing retail outlets, and provides for rules to permit FIEs to 
export goods that have been imported into Viet Nam. These new regulations create rights to 
foreign retailers and distributors that go  beyond Viet Nam's scheduled commitments. 
2.2.2.4  Trade-Related Intellectual Property Rights 2.50.  In the area of trade-related intellectual pr operty rights, Viet Nam undertook to fully comply 
with all of the provisions of the TRIPS Agreement from the date of accession to the WTO, without 
recourse to any transitional period. In 2008, the year following WTO accession, Viet Nam's IP legislation was reviewed by the TRIPS Council. As taking IPR more seriously, in June 2009, the National Assembly of Viet Nam adopted the amendments to the Intellectual Property Law as well 
as to the Criminal Code with a view to completing its IPR legal framework. All laws and regulations 
relating to intellectual property rights have been notified to WTO and WIPO. 
2.2.3  Trade Policy Developments since WTO Accession 
2.2.3.1  Multilateral Trading System 
2.51.  After joining the WTO in January 2007, Viet Nam pursued renewed efforts to further 
integrate into the global trading system as a means to achieve sustained and pro-poor economic 
growth. Viet Nam, whose economy has been increasingly oriented towards international trade 
since the launch of the Doi Moi  policy, is a strong supporter of an open, transparent and 
predictable, rules-based multilateral trading system. As a lower middle-income developing country with an economy in transition, we have a great stake in a credible and strengthened multilateral 
trading system under the WTO to provide us extern al support to our further reforms. Therefore, 
our attachment to the multilateral trading system was and remains a central piece of our trade policy. Viet Nam is convinced that the WTO has a natural central role to play in international trade 
rule-making, ensuring the stability and openness of global trade system thereby contributing to 
the growth of the world economy, and in  the settlement of trade disputes.   
2.52.  Viet Nam supports, and is committed to play its part in the efforts to reinforce the role of 
WTO by bringing the Doha Round  to a conclusion, the single most pressing issue currently facing 
the multilateral trading system. As a newly acceded WTO Member, Viet Nam has been disappointed since its accession to see the successive attempts to conclude the round fail one after the other which inevitably eroded the confidence in the multilateral trading system. Therefore we 
strongly support the idea that a consensus should emerge through renewed negotiating efforts on 
or around the mini-package to be brought to the Bali Ministerial Conference. We are confident that 
WTO Members could successfully converge to a cons ensus on the proposals in the mini-package of 
Agriculture, Trade Facilitation, and Trade and Deve lopment, provided there is a firm commitment 
of all to undertake an appropriate post-Bali work to address other outstanding issues of the round.  
2.53.  We consider the Dispute Settlement System as a cornerstone of the WTO, which has proven 
that it benefits all WTO Members, provided that panel rulings and/or Appellate Body decisions are 
complied with in good faith. Unfortunately this is not always the case and therefore we consider that it is essential to improve the efficiency of  the mechanism. During less than seven years of 
membership, Viet Nam had initiated recourse to the DSU provisions to protect its interests in 
two cases as complainant and in 16 cases as third party. Viet Nam attached great interest to the 
Doha negotiations on the revision of the Dispute Settlement Understanding with a view to WT/TPR/G/287 • Viet Nam 
 
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  reinforce the compliance with WTO obligations and reinforce the integrity of the multilateral 
trading system. 
2.2.3.2  Bilateral and Regional Agreements 2.54.  Bilateral and regional trade agreements have played a growing role in Viet Nam's recent 
trade policy. Viet Nam considers the trade li beralization achieved by regional FTAs as 
complementary to the liberalization efforts pursued in the WTO in a global framework. The rationale for more active use of preferential trade liberalization by Viet Nam lies in the need to 
accelerate the liberalization of trade and investment with our most important trading partners. In 
addition, a bilateral or regional setting seems more conducive to results as compared with the growing complexity of the moving forward with multilateral trade negotiations, as seen in the Doha Round. However, we would also like to stress that the regional trade agreements that the 
Government of Viet Nam has negotiated or is negotiating are not meant to be trade fortresses. We 
are convinced that by creating more trade, these preferential arrangements also create opportunities for traders of non-members. Furthermore, as these new generation trade 
agreements provide for "deep integration" by removing beyond-the-border trade barriers, they 
directly benefit all WTO Members. 
Chart 3: Viet Nam's tariff reduct ion plans under selected FTAs 
17.4
14.1614.16 1413.4 13.4 13.4 13.4 13.4
14 1413.513
4.41
3.3 2.55 2.556.7
4.2
2.8 2.8 2.76 2.69 2.63 2.63 2.63
02468101214161820
2005 2006 2007 2008 2010 2015 2018 2021 2023MFN
ACFTA
AKFTA
AJECP
AFTA
 
Source: Central Institute for Economic Management (CIEM). 
 
2.55.  With respect to FTAs, it is also a requirement that the participation in a FTA must be in line 
with our overall multilateral, regional and bilateral economic integration process; must be 
supportive of trade liberalization in the WTO framework; and strengthen our links within ASEAN. From 2001 to date, Viet Nam has concluded a grow ing number of regional and bilateral FTAs. To 
date, we have established FTAs with 16 countries within the framework of six regional FTAs, i.e. 
the ASEAN Free Trade Agreement (AFTA), ASEAN–China Free Trade Agreement (ACFTA), the 
ASEAN-Korea Free Trade Agreement (AKFTA), th e ASEAN-Japan Free Trade Agreement (AJFTA), 
the ASEAN-Australia and New Zealand Free Trade Agreement (AANZFTA), the ASEAN - India Free 
Trade Agreement (AIFTA); and two bilateral FTAs, namely the Viet Nam-Japan Economic 
Partnership Agreement (VJEPA) and the Viet Na m-Chile Free Trade Agreement (VCFTA), with 
different scopes of liberalization. The proportion of two-way trade between Viet Nam and other FTA 
partners have accounted for nearly 60% of total international trade value of Viet Nam, for nearly 
50% of exports and nearly 70% of imports. Currently, Viet Nam is participating in the negotiations on the Trans-Pacific Partnership (TPP) Agreement, and is also conducting negotiations with the European Union, the European Free Trade Associat ion, the Customs Union of Belarus, Kazakhstan 
and Russian Federation, the Republic of Korea and with ASEAN members and China, Japan, 
Republic of Korea, India, Australia, New Zeal and (under a Regional Comprehensive Economic 
Partnership Agreement). WT/TPR/G/287 • Viet Nam 
 
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  2.2.3.3  Recent Trade and Trad e Related Policy Developments 
2.2.3.3.1  Trade Strategy 2.56.  The Government has adopted in 2011 the "Import-Export Strategy for the Period 2011-20 
with a Vision towards 2030" which specifies the country's trade targets by 2020. Accordingly, it is 
expected that Viet Nam will achieve a balance of trade by 2020 and that the total export turnover 
in that year will be three times higher than in  2010 with a per capita average of over US$2,000. In 
order to attain this goal the Strategy foresees th at the average growth rate of exports should be 
11-12% per year in 2011-2020, or 12% in 2011- 2015 and 11% in 2016-2020. This figure should 
be kept at 10% in 2021-2030. Another prerequisite to realize is that the growth rate of imports be lower than that of exports, standing at 10-11% on average per year in 2011-2020, or below 11% in 2011-2015 and below 10% in 2016-2020.   
2.57.  The strategy focuses on four commodity gr oups: fuel and minerals, agricultural and seafood 
products, processing and manufacturing items,  and other products. Regarding the commodity 
composition of trade, the proportion of fuels and minerals in the structure of exports is expected to 
fall from 11.2% in 2010 to 4.4% in 2020, and the share of agricultural and seafood products in 
exports is also likely to be cut from 21.2% in 2010 to 13.5% in 2020. Processing and manufacturing industries producing hi-tech and high-intelligence products should see their 
proportion in exports raise from 55.6% in 2010 to 62.9% in 2020. Similarly, the share of new 
products in exports should be increased from 12% in 2010 to 19.2% in 2020. 
2.2.3.3.2  Customs Modernization 2.58.  As a major step towards enhanced trade facilitation, the Government adopted in 2011 the 
ambitious "Strategy for Customs development through 2020" which sets the overall objectives for 
Viet Nam Customs to become by the year 2020 a modern customs administration that meets the standards equivalent to those of the customs admi nistrations of the developed countries of ASEAN. 
The Strategy is established by the requiremen ts of economic development and the trend of 
international economic integration. Moreover, the strategy is also based on experiences of Viet Nam Customs in implementing the Plan of customs reform and modernization from 
2004-2006; 2008-2010 combining with the experien ces from other Customs Administrations to 
reach international standards set up by the World Customs Organization. The 2011 Strategy sets specific objectives as follows:  
 build and complete the necessary institutional, organizational and legal frameworks that are 
in conformity with Viet Nam’s administration re form objectives and comply with international 
standards and commitments;  
 by 2020, customs techniques and procedures must be simplified, effective, and harmonized 
with international standards and best practices; as from 2020, process of centralization of 
customs clearance in a Customs database need to be operational; a national customs single window needs to be implemented and the ASEAN Single Window integrated; adopt post 
clearance audit techniques and effective risk management methods using IT applications;  
 set up modern customs administration in accordance with centralization rules, and build a 
professional customs workforce meeting the criter ia of transparency, integrity, and effective 
performance;  
 set up modern IT customs systems based on centralized data processing, and using 
e-documents, e-manifest, e-payment, e-certificate;  
 specific targets: 
 by 2015, all Customs Departments and all key Customs Branches must apply electronic 
customs procedure and e-customs procedures; 
 by 2015, the time of customs clearance must be as short as the average of developed 
countries in the ASEAN region was in 2010, and by to 2020 the time of customs 
clearance shall be the same as in developed countries. WT/TPR/G/287 • Viet Nam 
 
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  2.59.  To reach the objectives of the "Strategy for Customs development through 2020", Viet Nam 
Customs has established and implemented the shor t-term customs reform and modernization plan 
2011-2015 with the targets on institutional reform, customs procedures and technique, organization and human resources, equipment and infrastructure, and information technology. 
2.2.3.3.3  Energy, in Particular Electric Power Sector 
2.60.  In order to attain the objectives of the na tional socio-economic development strategy and in 
particular to help the process of national industrialization and modernization under market 
economy conditions, the Government has adopted in 2007 the "National Energy Development 
Strategy up to 2020 with 2050 Vision". The strate gy provides that the national energy system 
should be developed in line with the trend of international integration, by efficiently using domestic energy sources and rationally exploiting and usin g foreign resources, while effectively creating 
regional and global energy cooperation and developing an independent and self-reliant economy. 
It requires the creation of an energy market conducive to fair competition, the promotion of new and renewable energies, bio-energy and nuclear power in order to meet the requirements of 
socio-economic development. It also requires accelerating the removal of energy subsidies and 
energy monopoly striving to end the pursuit of social policies through energy prices.   
2.61.  For the electric power industry, the Strategy has clearly set radical measures towards a 
more market economy friendly system. It required  the development of the sector by diversifying 
the ownership forms. The Strategy requires the separation of public utility activities from production and business activities. The Viet Nam Electricity Group (EVN) would be responsible for 
developing electricity sources and operating the na tional transmission system, while the electricity 
generation and distribution would be open for domestic and foreign economic operators. The 
strategy also provides for the continued application on a trial basis of the equitization of power plants and distribution units.  
2.62.  The "National Master Plan for Power Development in the 2011-2020 Period, with 
Considerations to 2030" adopted in 2011 requires that electricity sales prices will be defined in accordance with market mechanisms, aiming to encourage investment in the development of the 
electricity sector while encouraging electricity conservation. Regarding the market structure of the 
electric power sector, the Master Plan goes beyo nd the stated objective of the 2007 Strategy by 
envisioning the progressive development of a competitive electricity market in which the State has only a monopoly in the electricity transmission grid in order to ensure security of the national 
energy system.  
2.63.  To promote the use of environmentally frie ndly energy resources in power generation, the 
Government is encouraging the development of re newable electric power plants. On 29 June 2011, 
the Government promulgated the Decision No. 37/2011/QD-TTg which has set up an incentive 
mechanism for wind energy project developments th at obliges distributors to buy electric power 
generated from wind energy and introduces feed-in tariffs for grid-connected wind power projects.  
2.2.3.3.4  Telecommunications 
2.64.  The telecommunication sector went through a gradual reform since the early steps of 
market opening for foreign investors in 1988 in the form of Business Cooperation Contract (BCC), which allowed foreigners to provide infrastructure deployment and financing while the state-owned 
partner provided services, with the revenue shar ed among them. The telecommunication services 
market has experienced substantial liberalization with the Viet Nam – US BTA of 2001, under which Viet Nam undertook to allow US investments in joint ventures with an equity cap of 49%, 
and to adopt the pro-competitive regulatory prin ciples of the GATS Reference Paper on Basic 
Telecommunications. The major milestone in the sector's reforms was achieved with Viet Nam's WTO accession. Viet Nam committed to provide on an erga omnes  basis to all WTO Members 
better market access conditions than under Viet Nam-US BTA. Accordingly, joint ventures with 
foreign participation can provide telecommunications services related to network infrastructure such as telephone services, packet-switched data transmission services, circuit-switched data transmission services, telex services, telegraph services, facsimile services and private leased 
circuit services. Viet Nam's specific commitments required maximum equity caps on foreign 
participation, which vary between 49% and 70% depending on the services and the time of 
implementation. Viet Nam has implemented all of its specific commitments in due time.   WT/TPR/G/287 • Viet Nam 
 
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  2.65.  Since its accession to the WTO, Viet Nam has introduced a number of regulatory changes, 
which were either directly linked to the implemen tation of accession commitments or went beyond 
those commitments to establish even better regulatory conditions for operators. The Law on Telecommunications, the Law on Radio Frequency and Decree No. 25/2011/ND-CP detailing and 
guiding the implementation of a number of arti cles of the Law on Telecommunications, which 
made radical changes in the regulatory framewor k of the telecommunications sector, have been 
adopted to promote investment and to implement Viet Nam's accession commitments. Article 18 
Law on Telecommunications provides that the forms and conditions for investment in 
telecommunications services applicable to foreig n investors must comply with Vietnamese laws 
and Viet Nam's WTO commitments. The Law also incorporates the GATS' pro-competition regulatory regime. It provides for obligations to provide access and interconnection to essential 
network facilities, lessens restrictions on private ownership in facilities-based service providers, 
introduces an open and transparent licensing regime, and establishes a new regulatory body, the Viet Nam Telecommunications Authority (VNTA), to comply with the GATS requirement with 
respect to regulators.  
2.66.  While the State holds ownership directly or indirectly in all telecom operators, the market 
structure is that of a competitive market. For ex ample, while the State has ownership in each of 
the 6 licensed mobile businesses, competition is fierce among them, especially in terms of prices. 
Though the telecommunications sector is still prot ected by equity caps on foreign ownership and 
the State’s involvement in the form of capital cont ribution in a number of enterprises operating in 
the telecom sector remains significant, Viet Nam is committed to grant full national treatment to 
FIEs in all market segments. 
3  OUTLOOK 3.1.  The Government of Viet Nam is determined to successfully pursue the economic restructuring 
process as stated in the Master Plan on Econom ic Restructuring attached to change of growth 
model towards improvement of quality, efficiency and competitiveness for the period 2013-2020, in which structural reforms in the financial sector, SOEs and public investment remain top priorities 
in the short run, in order to create better conditions for efficient resource allocations, level playing 
field for market players and reinvigorated econom ic growth. The successful implementation of the 
Master Plan is vital for Viet Nam in attaining economic growth in a new, efficient, productive and internationally competitive paradigm by 2020, and achieving the goal of becoming a modern 
industrialized country by that time.   
3.2.  The Government of Viet Nam remains resolved in successfully implementing the public 
administration reform, which is a central element in Viet Nam's policy of transition towards a 
socialist market economy. Reforming the public administration is also a vital pre-condition for the 
achievement of economic growth and poverty reduction targets, and for Viet Nam's further regional and global economic integration. Foll owing on the Master Program 2001-2010, the new 
Program aims to further build a robust and effective public administrative system operating 
according to the principles of a State of rule-of- law. Among the objectives of the Program include 
building and perfecting the institutions of the socialist-oriented market economy; creating an equal, open, favorable, transparent and business friendly environment for entrepreneurs, building 
a modern system of effective and efficient Stat e administration; promoting the rule of law in 
executive activities of the Government and state administrative agencies; and building a pool of 
cadres, civil servants and public employees with ad equate qualities, capabilities and qualifications 
meeting the requirements of serving the pe ople and the national development.    
3.3.  The Government of Viet Nam continues to further economic and trade integration through 
liberalization on the multilateral, regional and bilateral levels. In the WTO framework, despite the 
deadlocks of the Doha negotiations, we remain committed to continue to work towards success in 
all negotiating groups, including on Agriculture, NAMA, Rules and Services, as we wish to achieve commercially-meaningful global improvements in market access conditions to which we are willing to contribute. Whilst firmly committed to strength ening the multilateral trading system and further 
liberalizing trade through multilateral negotiations under the WTO, the Government of Viet Nam is 
also actively pursuing regional and bilateral trade policies to achieve additional trade liberalization through Free Trade Agreements with its main trading partners. The Government of Viet Nam's 
view about regional (preferential) trade agreements is that they should be complementary to the 
multilateral trading system and fully compatible with relevant WTO provisions. WT/TPR/G/287 • Viet Nam 
 
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  3.4.  The Government of Viet Nam attaches itself  to the regional trade policy principle whereby its 
participation in FTAs is determined in a selective manner and is guided by the contribution of the prospective FTA to Viet Nam's sustainable development, economic advantages and opportunities offered, considerable increase in the country's comparative advantages, and the forecasted 
contribution to the implementation of the stra tegic objectives of socio-economic development 
during 2011-2020 and beyond. Our participation in FTAs must be consistent with the integration capacity of the country, the level of developm ent and the competitiveness of the Vietnamese 
economy.  
3.5.  The Government of Viet Nam will further enhance our regional integration, especially through 
ASEAN and ASEAN+ agreements on trade in goods and trade in services, as well as other FTAs 
that have been signed, which Viet Nam is firmly committed to fully implement the liberalization 
commitments according to the agreed schedules and time frames. For those bilateral and regional 
F T A s  t h a t  a r e  u n d e r  n e g o t i a t i o n s ,  w e  w i l l  m a k e  b e s t  e f f o r t  t o  c o n c l u d e  t h e m  i n  d u e  c o u r s e  a s  targeted by all parties. 
 
 
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