G/SCM/N/253/VNM  
 
25 September 2015  
(15-4975)  Page: 1/10  
Committee on Subsidies and Countervailing Measures  Original: English  
 
SUBSIDIES 
NEW AND FULL NOTIFICATION PURSUANT TO ARTICLE XVI:1 OF THE GATT 1994 
AND ARTICLE 25 OF THE AGREEMENT ON SUBSIDIES 
AND COUNTERVAILING MEASURES 
VIET NAM 
The following communication, dated 22 September 2015, is being circulated at the request of the 
Delegation of Viet Nam. 
  G/SCM/N/253/VNM 
 
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  NOTIFICATION PERIOD: 2011-2013 
1  PREFERENTIAL IMPORT TARIFF RATES  1. Title of the program 
 
Preferential import tariffs granted for enterprise s investing in regions or sectors entitled to 
investment incentives.   
2. Objective of the program 
 
To encourage enterprises to invest in regions or sectors which need to be invested for development. 
 
3. Legal background and authority for the program 
 
a. Legal background  
-  Import and Export Tariffs Law 2005; 
-  Decree No.87/2010/ND-CP dated 13 August 2010 guiding the implementation of several 
articles of the Import and Export Tariffs Law. 
 
b. Authority 
The Ministry of Finance 
 
4. Form of the subsidy 
 
Import tariff incentives 
 5. To whom and how the subsidy is provided 
 
a. To whom the subsidy is provided 
Projects in sectors eligible for import tariff incentives which are listed in Annex 1 to the 
Decree No. 87/2010/ND-CP or in regions eligible for import tariff incentives which are listed 
in the Decree No.124/2008/ND-CP dated 11 December 2008 and the Decree 
No. 53/2010/ND-CP dated 19 May2010. 
 
b. How the subsidy is provided 
Import tariff incentives contingent upon investment-encouraged areas and sectors are set 
forth in Clauses 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, and 16 of Article 12 of the 
Decree No. 87/2010/ND-CP as follows: 
 
i. Goods imported to create fixed assets of investment projects in sectors entitled to 
import duty preferences listed in the Appendix  I to this Decree or in regions entitled 
to import duty incentives, and investment projects funded with official development 
assistance (ODA) which are exempted from import duty, include:  
-  Equipment and machinery; 
-  Special-use means of transport included in technological lines which cannot be 
domestically manufactured yet; worker-transporting vehicles including cars of 24 seats or more and waterway crafts; 
-  Components, details, knocked down parts, spare parts, fittings, molds and 
accessories accompanying machinery, equipment and special-use means of transport described at Points a and b of this Clause for assembly into complete units; 
 G/SCM/N/253/VNM 
 
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  -  Materials and supplies which cannot be domestically produced yet, to be used for 
manufacturing equipment and machinery included in technological lines or for manufacturing components, details, knocked down parts, spare parts, fittings, molds and accessories accompanying equipment and machinery stated at Point a of this 
Clause for assembly into complete units; 
-  Building materials which cannot be domestically produced yet. 
 
ii. Plant varieties and animal breeds permitted to be imported for the implementation of 
investment projects in the sectors of agriculture, forestry and fishery. 
iii. Exemption from import duty for imports specified in the Clauses 6 and 7 of the 
Article 8 of the Decree No. 87/2010/ND-CP is al so applied to projects with expanded 
scale and renewed or replaced technology.  
iv. Duty exemption upon the first-time importation is applied to imported equipment 
and devices listed in the Appendix II to this Decree to create fixed assets of projects 
entitled to import duty incentives and investment projects funded with official 
development assistance (ODA) capital on hotels, office buildings, apartments for lease, housing, trade and technical service centres, department stores, golf courses, 
tourist resorts, sports facilities, recreation and entertainment centres, medical 
examination and treatment, training, cultural, financial, banking, insurance, audit, and consultancy services.  
Projects with goods enjoying import duty exemption upon first-time importation 
specified in this Clause are not entitled to duty exemption provided in other clauses 
of this Article. 
v. Duty exemption is applied to goods imported in service of petroleum activities 
including: 
-  Equipment and machinery; special-use means of transport necessary for petroleum 
activities; worker-transporting vehicles, including cars of 24 or more seats and 
waterway crafts, including components, details, knocked down parts, spare parts, 
fittings, molds and accessories accompanying the aforesaid equipment, machinery, special-use means of transport or worker-transporting vehicles for assembly into complete units or for use; 
-  Supplies necessary for petroleum activities which cannot be domestically produced 
yet; -  Medical equipment and devices and first-aid medicines for use on drilling platforms 
and floating works which are certified by the Ministry of Health; 
-  Office equipment and facilities for petroleum activities; -  Other goods temporarily imported for re-export for petroleum activities.  
 
vi. Shipbuilding establishments are exempt from export duty on exported seagoing 
vessels, and from import duty on machinery and equipment imported to create their fixed assets; means of transport included in technological lines imported to create 
fixed assets; and raw materials, supplies and semi-finished products to serve 
shipbuilding activities, which cannot be domestically produced yet. 
vii. Materials and supplies imported to directly serve the production of software 
products, which cannot be domestically produced yet, are exempted from import 
duty. 
viii. Goods imported for direct use in scientific research and technological development, 
including machinery, equipment, spare part s, supplies and means of transport which 
cannot be domestically produced yet, technologies which cannot be domestically produced yet; scientific documents, books and newspapers and journals and electronic sources on science and techno logy are exempted from import duty. 
ix. Materials, supplies and accessories which cannot be domestically produced yet and 
are imported for production activities of investment projects in sectors which G/SCM/N/253/VNM 
 
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  investment is specially encouraged promulgated in Appendix I to this Decree or in 
regions with extremely difficult socio-economic conditions (excluding projects to manufacture and assemble automobiles, motorcycles, air conditions, electric heaters, refrigerators, washing machines, electric fans, dish washers, disc players, audio 
systems, electric irons, water kettles, hair dryers, hand dryers and other articles as 
decided by the Prime Minister) are exempted  f r o m  i m p o r t  d u t y  f o r  5  ( f i v e )  y e a r s  
after the date of starting manufacture.  
x. Goods produced, processed, recycled and assembled in non-tariff zones without 
using imported raw materials and accessories  are exempted from import duty when 
they are imported into the domestic market; in case of using imported raw materials and accessories, these goods are only subject to import duty calculated based on 
imported raw materials and accessories constituting these goods when they are 
imported into the domestic market. 
xi. Machinery, equipment and means of transport (excluding under 24-seat cars and 
cars designed for passenger-cum-cargo transport equivalent to under 24-seat cars) 
temporarily imported for re-export by foreign contractors for the execution of ODA-funded projects in Vietnam are ex empted from import duty upon their 
temporary import and exempted from export duty upon their re-export.  
6. Subsidy per unit 
 
Specific statistics data are not available. 
 
7. Duration of the subsidy 
 
From 2011 to 2013. 
 8. Statistic data permitting an assessment of the trade effects of the subsidy 
 Unfeasible.   G/SCM/N/253/VNM 
 
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  2  INCENTIVES ON CORPORATE INCOME TAX  
1. Title of the program 
 
Incentives on corporate income tax rates for enterprises operating in regions or sectors entitled to 
incentives. 
 2. Objective of the program 
 To encourage enterprises to invest in regions or sectors which need for development.   3. Legal background and authority for the program 
 
a. Legal background  
Law on Corporate Income Tax No.14/2008/QH12 and guideline documents.  
 
b. Authority  
Ministry of Finance.  
 
4. Form of the subsidy 
 Preferential corporate income tax rates. 
 
5. To whom and how the subsidy is provided 
 
a. To whom the subsidy is provided 
-  Enterprises established under Viet Nam's laws;  
-  Enterprises established under foreign laws (h ereinafter referred to as foreign enterprise) 
with or without permanent residence entities in Viet Nam;  
-  Organisations established under the Law on Cooperatives;  -  Non-productive entities established under Viet Nam's laws; -  Productive entities.  
 
b. How the subsidy is provided (From 2011 to the end of 2013) 
- Preferential tax rate of 10% in 15 years, tax exemption in 4 years, and 50% reduction of 
the tax amount payable in 9 succeeding years are applied to: (i) newly-established 
enterprise from a project carried out in the regions with especially difficult socio-economic conditions, economic zones, and high-technology parks; (ii) newly-established enterprises 
from a project in the sectors including high technology as prescribed by laws; scientific 
research and technology development; water plants, power plants, and water supply and drainage system; bridges, roads, and railroads; airports, seaports, and river ports; terminals, train stations, and other particularly important infrastructure decided by the 
Prime Minister; and software production.  
 For newly-established enterprises from a project in the above sectors with large scale, high 
technology or need of investment attraction, duration of applying preferential tax may be 
prolonged but the total time of applying prefer ential tax of 10% does not excess 30 years. 
The Prime Minister will decide the extension of applying preferential tax of 10% as described 
in this Law based on the proposal of the Minister of Finance.  
 -  Corporate tax rate of 10% is applied to revenues of enterprises in the sectors of education and training, vocational training, healthcare, culture, sports and environment (hereinafter 
referred to as socialized sector) for the whole operation duration. Tax exemption in 4 years 
and 50% reduction of the tax amount payable in the next 5 years are applied to newly-established enterprises in the socialized sector operating in a region which is not in the list 
of regions with difficult and especially difficult socio-economic conditions. G/SCM/N/253/VNM 
 
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  -  Preferential tax rate of 20% in 10 years, tax exemption in 2 years, and 50% reduction of 
the tax amount payable in the next 4 years are applied to newly-established enterprises from a project operating in a region with difficult socio-economic conditions. -  Preferential tax rate of 20% is applied to agricultural services cooperatives, people credit 
funds and micro-finance organizations for the whole operation time.  
 
For agricultural services cooperatives, people credit funds and micro-finance organizations is 
entitled to the corporate tax rate of 20% after expiring the period of applying the corporate 
tax rate of 10% as described in the Article 15.1.a of the Decree No.124/2008/ND-CP.  
 
The micro-finance organization as described in this Article is the entity established and 
operated under the Law on Credit organizations. 
 6. Subsidy per unit 
 Specific statistics data are not available.  
7. Duration of the subsidy 
 
From 2011 to 2013.  
8. Statistic data permitting an assessment of the trade effects of the subsidy 
 
Unfeasible. G/SCM/N/253/VNM 
 
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  3  INCENTIVES ON NON-AGRI CULTURAL LAND USE TAX  
1. Title of the program 
 
Exemption and reduction of non-agricultural land  use tax for a project in a sector and region 
entitled to investment incentives under investment laws.  
 2. Objective of the program 
 To encourage enterprise to invest in the sectors and regions which need for development.   3. Legal background and authority for the program 
 
a. Legal background  
-  Law on Non-agricultural land use tax No.48/2010/QH12 effective from 01 January 2012; 
-  Decree No.53/2011/ND-CP dated 01 July 2011 of the Government. 
 
b. Authority 
Ministry of Finance. 
 4. Form of the subsidy 
 
Preferential non-agricultural land use tax.  
 5. To whom and how the subsidy is provided 
 
a. To whom the subsidy is provided 
Projects in the sectors entitled to investment incentives; and projects in the regions entitled 
to investment incentives in the list attached with the Decree No.108/2006/ND-CP of the 
Government promulgating details and providing gu idelines to implement some articles of the 
Investment Law.  
 
b. How the subsidy is provided 
Incentives on non-agricultural land use tax are regulated in the Article 9 and 10 of the Law 
on Non-agricultural land use tax No.48/2010/QH12 effective from 01 January 2012 as 
below:  
 
-  Exemption from non-agricultural land use tax for projects in the sectors which investment 
is especially encouraged; projects in the regions with especially difficult socio-economic 
conditions; and projects in the sectors which investment is encouraged operating in the regions with difficult socio-economic conditions; -  50% reduction of tax amount payable for projects in sectors which investment is 
encouraged; and projects in the regions with difficult socio-economic conditions;  
-  Projects in the sectors and regions eligible for investment incentives are promulgated in the list attached with the Decree No.108/2006/ND -CP of the Government regulating details 
and providing guidelines to implement some articles of the Law on Investment. 
 6. Subsidy per unit 
 Specific statistics data are not available.  7. Duration of the subsidy 
 From 2012 to 2013.  G/SCM/N/253/VNM 
 
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  8. Statistic data permitting an assessment of the trade effects of the subsidy 
 
Unfeasible.  G/SCM/N/253/VNM 
 
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  4  CREDIT PROGRAM FOR TRADERS DOING BUSINESS IN DISADVANTAGED REGIONS  
1. Title of the program 
 
Credit program for traders doing business in disadvantaged regions.  
 
2. Objective of the program 
 
The Bank for Social Policies lends money to traders doing business in disadvantaged regions 
(mountains, islands and ethnic minority areas) to meet the investment needs. The program is implemented in order to stimulate investment an d prevent economic slowdown in the context of 
the economy is facing difficulties. 
 
3. Legal background and authority for the program 
 
a. Legal background 
-  Decision No.92/2009/QD-TTg dated 8 July  2009 of the Prime Minister on credits for 
traders doing business in disadvantaged regions; 
-  Decision No.1049/QD-TTg dated 26 June 2014 of the Prime Minister promulgating the list 
of administrative units in the disadvantaged regions.  
 
b. Authority 
-  Ministry of Finance; 
 
-  The Bank for Social Policies. 
 
4. Form of the subsidy 
 
Direct support (in the form of loans).  
 5. To whom and how the subsidy is provided 
 
a. To whom the subsidy is provided 
Traders doing business in the commune, ward or town specified in the List attached to 
Decision No.1049/QD-TTg dated 26 June 2014 of th e Prime Minister promulgating the List of 
administrative units in the disadvantaged regions. 
 
b. How the subsidy is provided 
-  For individual traders who do not open bookkeeping and pay presumptive taxes in 
accordance with the law: the maximum loan is VND 30 million; -  For individual traders who open bookkeepin g and declare tax payment in accordance with 
the law: the maximum loan is VND 100 million;  
-  For traders who are economical organizations legally established: the maximum loan is 
VND 500 million.  
 
6. Subsidy per unit 
 
Specific statistics data are not available. 
 
7. Duration of the subsidy 
 From 2011 to 2013. 
 
8. Statistic data permitting an assessment of the trade effects of the subsidy 
 
Unfeasible. 
 G/SCM/N/253/VNM 
 
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  5  CREDIT PROGRAM FOR HOUSEHOLDS MANUFACTURING OR DOING BUSINESS IN 
DISADVATAGED REGIONS  
1. Title of the program 
 
Credit program for households manufacturing or  doing business in disadvantaged regions.  
 2. Objective of the program 
 The Bank for Social Policies lends money to households manufacturing or doing business in disadvantaged regions (mountains, islands and ethnic minority areas) in order to develop 
production and business, contributing to the implementation of the agriculture and rural 
development program and equally economic growth across all regions of the country. 
 3. Legal background and authority for the program 
 
a. Legal background 
-  Decision No. 31/2007/QD-TTg dated 5 March 2007 of the Prime Minister on credits for 
households manufacturing or doing business in disadvantaged regions; 
-  Decision No. 1049/QD-TTg dated 26 June 2014 of the Prime Minister promulgating the List of administrative units in the disadvantaged regions.  
 
b. Authority 
-  Ministry of Finance; 
-  The Bank for Social Policies. 
 
4. Form of the subsidy 
 
Direct support (in the form of loans).  
 5. To whom and how the subsidy is provided 
 
a. To whom the subsidy is provided 
Households as promulgated in the Civil Code (including households doing farm business) not 
in the kinds of poor households. These households have production or do business in 
disadvantaged regions in sectors that are not prohibited by law.  
 
b. How the subsidy is provided 
-  Procurement of materials, equipment, facilities for production; crops and livestock; repair 
and building of factories, building and impr ovement of fields and farms; demands for 
environment sanitation; payment of labour and services for production;  -  Capital contribution to projects or plans on production and business cooperation;  
-  Assistance to partly resolve the demands for housing, lighting and training of skilled 
labours that are closely related to projects or plans on production and business.  
 
6. Subsidy per unit 
 
Specific statistics data are not available. 
 
7. Duration of the subsidy 
 From 2011 to 2013. 
 
8. Statistic data permitting an assessment of the trade effects of the subsidy 
 
Unfeasible. 
 
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