RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/ACC/VNM/38 
26 July 2005 
 (05-3369) 
Working Party on the 
Accession of Viet Nam Original:   English 
 
 
 
ACCESSION OF VIET NAM 
 
Additional Questions and Replies  
 
 
 The following submission, dated 15 July 2005, is being circulated at the request of the Delegation of the Socialist Republic of Viet Nam.   
_______________  WT/ACC/VNM/38 
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TABLE OF CONTENTS 
LEGISLATIVE DEVELOPMENTS....................................................................................................1  
II. ECONOMIC POLICIES..........................................................................................................1  
- Monetary and Fiscal Policy..................................................................................................... .1 
- Investment Regime.............................................................................................................. ......2  
- State Ownership and Privatization .......................................................................................11  
- Pricing Policies ............................................................................................................... .........20  
III. FRAMEWORK FOR MAKING AN D ENFORCING POLICIES ....................................23  
IV. POLICIES AFFECTING TRADE IN GOODS ...................................................................23  
- Trading Rights ................................................................................................................. .......23  
A. IMPORT REGULATIONS....................................................................................................26  
- Ordinary cust oms duties ........................................................................................................ 26 
- Other duties and charges....................................................................................................... .27 
- Tariff rate quotas, tariff exemptions.....................................................................................29  
- Fees and charges for services rendered.................................................................................36  
- Application of internal taxes to imports ...............................................................................37  
- Quantitative import restrictions, includi ng prohibitions, quotas and licensing 
systems ........................................................................................................................ .............39  
- Customs valuation.............................................................................................................. .....43  
- Anti-dumping, countervailing duties, safeguard regimes ...................................................46  
B. EXPORT REGULATIONS ...................................................................................................49  
- Export rest rictions ............................................................................................................ ......49  
- Export subsidies ............................................................................................................... .......50  
C. INTERNAL POLICIES A FFECTING FOREIGN TRADE IN GOODS .........................51  
- Industrial policy, including subsidies....................................................................................51  
- Technical barriers to trade, standards and certification.....................................................53  
- Sanitary and phytosanitary measures...................................................................................53  
- Trade-related investment measures ......................................................................................55  
- State-trading entities......................................................................................................... ......56  
- Free zones, special economic areas........................................................................................57  
- Agricultural policies.......................................................................................................... ......58  
V. TRADE-RELATED INTELLECTUAL  PROPERTY REGIME.......................................59  
- GENERAL........................................................................................................................ .......59  
- Copyright and related rights..................................................................................................5 9 
- Requirements on undisclosed information, including trade secrets and test data............60  
VI. POLICIES AFFECTING TRADE IN SERVICES..............................................................61  WT/ACC/VNM/38 
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ANNEX 1 ........................................................................................................................ ......................64
 
ANNEX 2 ........................................................................................................................ ......................68  WT/ACC/VNM/38 
Page 1 
 
 
 LEGISLATIVE DEVELOPMENTS 
Question 1 - The Working Party needs to review all le gislation for WTO conformity before the 
Working Party can complete its job. 
- We hope Viet Nam will be sending enac ted and draft legislation to the Secretariat 
throughout the summer. 
- The following laws and ordinances are listed on the National Assembly's 2005-06 plan of 
work: 
 - Pharmaceutical Law, Law on Banki ng Transferable Instruments, Law 
Amending and Supplementing Certain Articl es of the Mineral Law, Information 
Technology Law, Cinematographic Law, Ordinance on Investment and Capital 
Construction, Law on Technology Transfer, and Ordinance on High Technology. 
- Since laws on these subjects would appear to have some relevance to Viet Nam's WTO 
accession, please provide copies of the enacted and/or draft legislation for the Working 
Party's review and include them in the Legislative Action Plan.  
Answer
: 
Viet Nam shall make its best efforts to submit WTO-related normative legal documents enacted and 
planned to be enacted in 2005 to the Secretariat prior to the 10th Session of the Working Party on the 
Accession of Viet Nam to the WTO. 
II. ECONOMIC POLICIES 
- Monetary and Fiscal Policy 
Question 2 We refer to the reply to Question 2 of WT/ACC/ VNM/36.  The purpose of the Question was to 
seek information to improve the description of refo rm intentions in relation to policies in this 
area.  We would not necessarily agree that this  policy area is unrelated to the WTO:  for 
example, taxation provisions for residents and non-residents could affect the implementation of 
services commitments. 
- We would appreciate information on plans to replace the Ordinance on Income Tax of 
High Income Earners with a Law on Personal Income Tax consistent with international 
rules, which would introduce a single tax system, broaden the scope of application of the personal income tax, and provide for a clearer definition of residents and non-residents; 
and 
- We would appreciate clarification on when it is proposed that the Law on Personal 
Income Tax will be enacted. 
Answer
: 
Current regulations of Viet Nam on personal in come tax imposed on high-income earners do not 
entail any unfavourable discriminatory treatment toward foreigners in comparison with the 
Vietnamese. In fact, foreigners who have taxable incomes derived from Viet Nam are treated more favourably in comparison with the Vi etnamese regarding their personal income tax.  Therefore, purely WT/ACC/VNM/38 
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 from perspectives of personal income tax, Viet Na m's current regulations have been creating an 
enabling environment for the strict observation of any services commitments in its Schedule of 
Specific Commitments. In addition, Viet Nam would like to note that any issue relating to market 
access in services would be dealt with under bila teral market access negotiations in services. 
In previous Working Party meetings, Viet Nam has informed Members that in an attempt to further 
rationalize personal income tax system in accordance with overall tax reform program in Viet Nam, a 
Personal Income Tax Law will be submitted to the National Assembly in 2007 in order to replace the 
Ordinance on Income Tax of High Income Earners. Vi et Nam has also stated that the Personal Income 
Tax Law should follow general guiding principle of being compatible with relevant international 
standards and norms. The Government agency respons ible for drafting the Law is currently at the 
stage of studying and researching relevant issues but has already identified multiple issues of diverse 
opinions. In this context, though the Government fi rmly reiterates its intentio n to submit the draft Law 
to the National Assembly in 2007, it would be di fficult to confirm precisely as to when the Law can 
actually be promulgated. 
Question 3 
We particularly appreciated hearing that Viet Nam is nearing adoption of Article VIII of the 
IMF Articles of Agreement.  Recording in th e draft Working Party report the procedures 
Viet Nam is to adopt Article VIII would strengthe n the Report.  We invite Viet Nam to provide 
this information to the Working Party. 
Answer
: 
Viet Nam has been completing necessary documents a nd procedures to request the IMF to officially 
announce Viet Nam's adoption of Article VIII of the IMF Articles of Agreement.  In particular:  
- The Draft Decree on the Amendments of a nd Supplements to the Government Decree 
No. 63/1998/ND-CP dated 19 August 1998 on Forei gn Exchange Control has been submitted 
to the Government for approval and expected to  be issued in July 2005. The Decree will 
repeal all remaining foreign exchange restri ctions on payments and transfers for current 
account transactions and also provide a concept of international current account transactions 
in compliance with the IMF's definition.  
- After the issuance of the Decree, Viet Nam sha ll request the IMF's official announcement of 
Viet Nam's adoption of Article VIII of the IMF Articles of Agreement. 
- Investment Regime 
Question 4  We thank Viet Nam for the information provided in the reply to Question 7 of 
WT/ACC/VNM/36 in the form of a definitive list of sectors prohibited to private investment 
under the Law on Enterprises. 
- We request that this list be transposed to a table in the report, with an additional 
column listing the corresponding ex planation for the exclusion; and 
- We seek clarification as to whether this means that all sectors and activities in which 
fully state-owned and equitized (partially  privatized) enterprises currently operate, 
except the activities listed in the reply to Question 7 of WT/ACC/VNM/36, are open to 
private investment.  WT/ACC/VNM/38 
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 Answer : 
- Justification for the exclusion: 
Prohibited business sectors/li nes Justification/Rationale 
Trading in weapons, ammunition, military equipment, 
military items and specialized military technical equipment 
of the armed forces Justifiable on the grounds of security necessity.  
Trading in explosives, toxic chemicals, and radioactive 
substances Justifiable on the grounds of security and safety necessity: 
The use of these items needs to be restricted/regulated due to their high fatal risk. 
Trading in drugs of addiction Justifiable on th e grounds of human health and social order. 
Prostitution, organizing prostitution services and trading in 
women and children Justifiable on the grounds of cultural and moral necessity 
(such activities are considered as immoral and criminal).  
Providing gambling services or operat ing gambling venues Justifiable on the grounds of security, public order and 
cultural necessity. 
Trading in chemical substances of high toxici ty Justifiable on the grounds of human health.  
Trading in any items which belong to the historical, 
cultural or museum heritage Justifiable on the grounds of cultural preservation 
necessity. 
Trading in reactionary cultural products, pornographic or superstitious items, or items which have an adverse effect 
on personal development Justifiable on the grounds of security and cultural necessity.  
Trading in all types of firecr ackers Justifiable on the grounds of  human health: Firecrackers 
cause numerous accidents and injuries. 
Trading in wild plants and animals which are listed in international treaties to which Viet Nam is a signatory or a 
participant, and trading in ot her rare and precious species 
of flora and fauna which require protection Justifiable on the grounds of natural and environment 
protection. 
Trading in toys which have an adverse effect on personal 
development or health of ch ildren or which have an 
adverse effect on social order, security and safety Justifiable on the grounds of human health, safety, 
education, public order and security. 
 
Viet Nam is considering this issue within the contex t of the draft Investment Law and draft Enterprise 
Law. 
Question 5  
We note that trading in "reactionary cultural products" is included in the list of sectors 
prohibited to private investment under the Law on Enterprises. 
We would be grateful for advice on whether any criteria have been developed for determining 
the definition of "reactionary cultural products" (paragraph 127 of WT/ACC/SPEC/VNM/5 
refers). 
Answer : 
Paragraph 127 of WT/ACC/SPEC/VNM /5 has provided a general con cept for the determination of 
prohibited reactionary cultural products. 
"Reactionary cultural products" could be defined, inter alia , as products containing contents: 
1. To propagate against Viet Nam; to dest roy the solidarity of the Vietnamese ethnic 
community; 
2. To propagate and excite aggressive war; to  arouse hatred among the peoples and nations in 
the world; to excite violence; to communicate such thoughts and opinions; 
3. To leak national, military, security, and other secrets provided for in the laws and regulations; 
4. To distort historic truth; to hurt re putation of the nation, national heroes, etc . WT/ACC/VNM/38 
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 Question 6  
Regarding the reply to Question 8 of WT/ACC/VNM/36,  we would grateful if a definitive list of 
sectors where non-automatic business licenses are required could be included as a table in the report.  All business licence requirements to engage  in importation or exportation should be 
included as separate entries in this list if they are distinct from other business licence 
requirements.  The table should include columns fo r (1) the sector/activity, (2) the conditions of 
the licence, and (3) the government body or bodies involved in the issuance and the approval of licenses. 
Answer
: 
Conditional business sectors are categorized into (i ) sectors requiring busin ess licenses issued by the 
State competent authorities and (ii) sectors not requiring business licenses. Requirements on 
environmental and hygiene standards, food safety and hy giene, fire prevention and fight, social order, 
traffic safety and other requirements on business activities are inclusively referred to as the conditional business sectors not  requiring business licenses. 
Sectors/activities requiring business licenses, licensing conditions/requirements and procedures are 
prescribed in applicable legal documents issued by the State competent authorities at different levels. 
Currently, Viet Nam is reviewing its business licensi ng system inclusive of various types of licenses 
and their licensing procedures. A comprehensiv e list of business licenses as requested will be 
provided as soon as this review is co mpleted (probably prior to the 10
th Session of the Working Party 
on the Accession of Viet Nam to the WTO). 
Question 7  
We thank Viet Nam for the reply to Question 9 of WT/ACC/VNM/36. 
- We would be interested to see full descriptions of the registration process and the 
criteria for granting licenses in relation to  each of the five non-automatic business 
licence categories mentioned in paragraph 25 of WT/ACC/SPEC/VNM/5.  These details should be included in the report. 
- We note that that the reply to Question 9 of WT/ACC/VNM/36 only lists eight 
sectors/activities where practising certificates are required.  Do these eight sectors/activities correspond to the category, "(iv) sectors requiring professional licence", in paragraph 25 of WT/ACC/SPEC/VNM/5?  If there is a difference, please indicate what it is. 
Answer
: 
An unofficial English translation of the Govern ment Decree No. 109/2004/ND-CP dated 2 April 2004 
on Business Registration can be obtained through document WT/ACC/VNM/38/Add.1. 
Question 8  
We appreciate the advice (reply to Quest ion 11 of WT/ACC/VNM/36) that a common 
Investment Law and a uniform Enterprise La w are being drafted and scheduled to be 
submitted to the National Assembly's 8th Sessi on in October 2005 for consideration, and that 
they will be submitted to the Working Party as s oon as they are ready.  We look forward to 
seeing the copies of these Laws, if possibl e in draft form prior to enactment.  WT/ACC/VNM/38 
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 Answer : 
The draft (common) Investment Law has been subm itted to the Working Party before its Informal 
Meeting on 20 May 2005 (Please refer to document WT/ACC/VNM/37/Add.1). 
The draft (uniform) Enterprise Law shall be submitted  to the Working Party as an attachment to this 
document. 
Question 9  We would be grateful for an indication of or update on Viet Nam's plans to be incorporated in 
the report in respect of the following reforms:  
- the elimination of requirements for foreign investment in certain sectors only in the 
form of joint ventures or business coop eration contracts (paragraph 28 of 
WT/ACC/SPEC/VNM/5); 
- the elimination of remaining regulations discriminating between domestic and foreign 
investment, including inter alia  under the common Investment Law and the uniform 
Enterprise Law (paragraph 29 of WT/ACC/SPEC/VNM/5); 
- the elimination of dual pricing for electricity by 31 December 2005 (paragraph 29 of 
WT/ACC/SPEC/VNM/5). 
Answer
: 
The provisions on these issues of the draft (comm on) Investment Law and the draft (uniform) 
Enterprise Law are being designed in conformity  with the WTO's Agreements and Viet Nam's 
accession commitments. 
The elimination of dual pricing system discrimina ting between domestic and foreign investors has 
been included in the draft Investment Law. The discr iminatory dual pricing electricity tariff shall be 
abolished upon accession. 
Question 10  
The replies to Questions 13 and 14 of WT/ACC/ VNM/36 indicate that provisions relating to 
subsidies contingent on export performance or on the use of domestic goods are inscribed in 
certain investment licenses. 
We would be grateful if Viet Nam could include in the report advice of how it will cancel, no 
later than the date of its accession to the WTO,  all provisions in existing investment licenses 
relating to any subsidy contingent on export performance or on the use of domestic goods, 
without invalidating other provisions of those licenses. 
Answer : 
Corporate income tax incentives contingent on ex port performance are specified in the Investment 
Licenses.  Viet Nam would like to seek a transitiona l period to phase out these prohibited subsidies.   
No later than the expiry of the transitional peri od to be agreed with the WTO Members, Viet Nam 
shall nullify the provisions granting such prohibited s ubsidies without prejudice to other provisions of 
the issued Investment Licenses.     WT/ACC/VNM/38 
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 Question 11  
It is our expectation that Viet Nam will refrain, from the date of accession, from issuing any new 
investment licenses that contain such provisions. 
We request that Viet Nam include such a commitment in the report. 
Answer
: 
Corporate income tax incentives contingent on ex port performance are specified in the Investment 
Licenses.  Viet Nam would like to seek a transitiona l period to phase out these prohibited subsidies.   
No later than the expiry of the transitional peri od to be agreed with the WTO Members, Viet Nam 
shall nullify the provisions granting such prohibited s ubsidies without prejudice to other provisions of 
the issued Investment Licenses. 
Question 12  We refer to the reply to Question 15 of WT/ACC/VNM/36.  We hope that provisions in the 
common Investment Law and all other laws and legal acts in force in Viet Nam upon accession 
will facilitate full conformity with the provisions of Article 3 of the Agreement on Subsidies and Countervailing Measures. 
We request that Viet Nam indicate in the report how it will ensure this. Answer
: 
Viet Nam confirms that provisions in the (common) Investment Law as well as all other laws shall be 
brought into conformity with Viet Nam's WTO accession commitments regarding prohibited 
subsidies as defined by Article 3 of the Agre ement on Subsidies and Countervailing Measures. 
Question 13  
We thank Viet Nam for the reply provided to Question 18 of WT/ACC/VNM/36. 
- We look forward to seeing an English translation of the Law on amendments of and 
supplements to some articles of the Mineral Law, if possible in draft form prior to 
enactment in the coming months. 
- We would be grateful if details of the grounds for refusal of an investment licence at the 
exploration stage could be provided and included in the report. 
Answer : 
The Law on the Amendments of and Supplements to some Articles of the Mineral Law will be 
provided after the Order of Announcement is signed by  the President of the State (i.e. the time when 
the law is officially made public).  
No provision of the Mineral Law of 1996 as well as of the new Law on the Amendments of and 
Supplements to some Articles of the Mineral Law pr ovides for a refusal to grant investment licenses 
at the exploration stage.  WT/ACC/VNM/38 
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 Question 14  
We thank Viet Nam for the information given in the reply to Question 20 of WT/ACC/VNM/36 
that it will abolish Decision No. 718/2001/QD-BKH of 7 December 2001 stipulating the list of industrial products that are subject to the expo rt ratio requirement and would not apply such a 
requirement in investment licenses.  We  also appreciate the commitment given in 
paragraph 220 of WT/ACC/SPEC/VNM/5 to elimin ate the 80 per cent export ratio requirement 
upon accession. 
- We request that details on when the Decision would be abolished and the export ratio 
requirements eliminated be included in the report; 
- We would be grateful for full details of ex port ratio requirements other than those that 
Viet Nam has already agreed to eliminate upon accession; and 
- We would also be grateful for a commitment from Viet Nam to eliminate all export ratio 
requirements upon accession to be included in the report. 
Answer
: 
The mentioned Decision will be abolishe d upon Viet Nam's accession to WTO. 
Viet Nam is maintaining no mandatory export rati o requirements other than those it has already 
committed to eliminate upon accession. 
Question 15  
Regarding the reply to Question 21 of WT/ACC/VNM/36, we would be grateful if Decree 
No. 76/2000/ND-CP of 15 December 2000 could be listed in Annex 1 of the report. 
Answer : 
We agree with the suggestion (this Decree is available through WT/ACC/VNM/36/Add.2). 
Question 16  
Regarding the reply to Question 7 of WT/ACC/VNM/ 36, we would be happy to have Viet Nam's 
commitment that all future additions and deletion s to the list of prohibited business sectors will 
apply equally to domestic and foreign companies/investors. 
Answer : 
Viet Nam can confirm that all future additions a nd deletions to the list of prohibited business sectors 
will be in conformity with the WTO's Agre ements and Viet Nam's accession commitments. 
Question 17  
Regarding the reply to Question 11 of WT/ACC/VNM /36, could Viet Nam explain what is the 
current state of play as regards the adoption of the Enterprise Law and when the draft law 
would be available for the Working Party.   WT/ACC/VNM/38 
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 Answer
: 
The (uniform) Enterprise Law is scheduled to be  submitted for the National Assembly's discussion 
and approval at its October 2005 Session.  The new dr aft (uniform) Enterprise Law is provided as an 
attachment to this document. 
Question 18  
Regarding the reply to Question 20 of WT/ACC/VNM/36, we would like to see a commitment to 
eliminate export the ratio requirement to be added in the draft Working Party Report.  We 
propose the following text: 
 "The representative of Viet Nam confirmed that upon accession, Viet Nam will 
eliminate the export ratio requirement fo r all products and will not apply such 
requirement in investment licenses, including those which are issued prior to accession." 
In general: - Could Viet Nam explain the differences betw een the draft Law on Investment submitted 
to the Working Party and the dr aft Common Investment law? and 
- When will the draft Common Investment Law be submitted to the Working Party? 
Answer
: 
Viet Nam agrees to this co mmitment language as proposed. 
There is no difference between the draft "Investment  Law" and the draft "Common Investment Law". 
The previously title "Common Investment Law" simply clarifies the purpose of drafting the Law is to have it applicable to both domestic and foreign in vestors. The draft Law has currently reached the 
completion stage and its drafting purpose has also been fully aware of and duly satisfied. Thus, the 
title word "Common" is no longer necessary. 
Question 19  
We thank Viet Nam for submitting the draft La w on Investment to the Working Party.  We 
have the following comments to make on the draft law:  
(a) Article 21 – Prohibited investment sect ors. Article 21.3 foresees a possibility for 
supplementing the list of sectors where investment is prohibited. Could Viet Nam 
explain why they consider further additions to  the list to be necessary and why it has not 
already drafted an exclusive list of such sectors? 
 Could Viet Nam list the sectors that are envi saged to be added to the prohibited sectors 
in Appendix I in the future? 
(b) Article 22 – Restricted investment sectors. Article 22.2 stipulates that the Ministry of 
Planning and Investment must annually revise the list of sectors of restricted investment 
sectors. We would like to stress the doubtfulness  of such practice in view of the legal 
certainty and stability of the investment environment.  
 Could Viet Nam explain the rationale of su ch annual revision of the list of sectors of 
restricted investment? Why has Viet Nam not already drafted an exclusive list of such 
sectors?  WT/ACC/VNM/38 
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 (c) Article 24: Could Viet Nam clarify whether the maximum amount of foreign ownership 
of 30 per cent in the previous law has been replaced by 49 per cent in the new draft Law on Investment? 
 What are the special cases for which a maximum foreign ownership of 70 per cent is 
foreseen under condition of a special approval. 
(d) Articles 22 to 24: Could Viet Nam clarify the meaning of "foreign investors are 
restricted from making investments" in Article 22? We note Article 24 limits the maximum capital held by foreigners in the rest ricted sectors to 49 per cent.  We also 
note that Article 22 states that "if a foreign investor makes investment in any of these sectors, he/she must obtain approval from the Prime Minister." 
 Does the restriction in Article 22 only indi cate restriction of maximum shareholding by 
foreign investors or is the Prime Minister' approval required in addition in all cases 
when foreigner wants to invest in the restrict ed sector? If Articles 22 to 24 impose both a 
cap to a maximum shareholding and the re quirement for the Prim e Minister's approval 
for foreign investors in restricted secto rs, this does seem excessive and unnecessary 
double-restriction.  If this is the case, could Viet Nam explain why a separate Prime 
Minister's approval is necessary for foreign in vestors, if the shareholding is already 
limited to a minority of the shares?    
(f) Chapter V – Investment encouragements and incentives.  We note that several 
provisions under this chapter indicate provision of subsidies which are prohibited under the WTO Agreement on Subsidies and Countervailing Measures: 
 Article 25: Viet Nam encourages investors to  invest in the sector of production for 
exports (sector); and in the expo rt-processing zones (location).  
 Article  27:  "an investor making investme nts in a sector or location where investments 
are encouraged, shall be entitled to investment incentives".  
 Consequently, the combination of Article 25 and 27 the clearly indicates granting of 
prohibited export subsidies. 
 Article 29:  incentive certificate sets ou t specific incentives and conditions for such 
incentives, specifically: (c) quantity of domestic  raw materials to be used; (i) exportation 
of products or services respectively made or assembled. Consequently, (c) indicates 
granting of prohibited local content subsidies and (i) export subsidies.  
 We urge Viet Nam to eliminate all prohibited subsidies upon accession.  We would also 
request Viet Nam to provide an updated list of all subsidies/subsidy programmes 
granted.  The list should take into account the draft Law on Investment, and possible other updated legal provisions, ands indica te the approximate value of incentives 
provided under each scheme per annum.      
(g) Chapter VI – State administration of investment activities 
 Article 49.7:  State administration of in vestment comprise the following:  Inspect, 
examine and supervise investment activities. 
 Article 53.5:  Provincial people's committees shall carry out the function of state 
administration of investment activities in th eir respective localities within the scope of WT/ACC/VNM/38 
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 their function and authority: to examine and inspect investment activities in their 
location in accordance with the law. 
 Could Viet Nam explain the exact content of these provisions, what does it mean in 
practice? For which purposes and under which conditions is the inspection and examination of the investment activities foreseen? 
 Article 55:  Could Viet Nam define "investment project" in the meaning of the Law on 
Investment?   
Answer
: 
(a) Article 21.3 in the previous version of the draf t Investment Law has been  replaced by Article 
28 in the latest version of the draft Investment Law.  According to this Article 28, investment 
activities that are harmful to national defense, security, social order and safety, historical, 
cultural traditions, morality, Vietnamese fine customs and people's health or that exhaust 
natural resources and destroy the ecological envir onment, shall be prohibited.  The draft Law 
does not provide for amendments and supplem ents to the sectors where investments are 
prohibited.  The draft Law instead mandates the Government to specify such List in 
accordance with the provision of Article 28.   
(b) Article 22 in the previous version of the draft Investment Law has been replaced by Article 27 
in the latest version of the draft Investment Law.  According to Article 27, the amendments 
and supplements to the sectors where investment s are conditional shall be based on the socio-
economic development requirements and other co nditions and shall be in conformity with 
commitments made by Viet Nam in international treaties which Viet Nam has signed or 
acceded to.    
The List of sectors where inve stments are conditional may be am ended and/or supplemented as 
the Investment Law cannot forese e new developments in the futu re.  However, any amendments 
and supplements to such List must be based on the above principle. 
(c) The question may be referring to Article 22, not Ar ticle 24 of the previous version of the draft 
Investment Law.  Nevertheless, this Article 22 as well as List II regulating the Prime 
Minister's approval of foreign investors' purchases of shares in State owned enterprises no longer exists in the latest version of the draft Investment Law.  Please refer to Article 23 and 
Article 27 of the latest version of the draft Investment Law.  
(d) Articles from 22 to 24 in the latest version of the draft Investment Law have been revised and 
the question is no longer relevant.  Please refer to  Article 27 of the latest version of the draft 
Investment Law.  
(f) The latest version of the draft Investment Law has abolished regulations on conditions for 
granting investment incentives intended in previo us versions of the draft Investment Law. 
As mentioned in many Working Party's Sessions, apart from prohibited subsidies that 
Viet Nam has already committed to el iminate upon accession, Viet Nam seeks for a 
transitional period to phase out other prohibited subsidies.  
(g) According to the latest version of the draft Investment Law and in fact, inspection and 
examination of investment activities are aimed at assisting investors to comply with laws and 
regulations on environmental pr otection, labour safety, fire and explosion prevention and 
fight, etc.   WT/ACC/VNM/38 
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 The term "Investment Project" in the draft I nvestment Law is understood as the investors' 
proposal to make investment for a certain period of time.  
Question 20  
The replies to our Questions on investment helped clarify a number of issues, but we still need 
further strengthening of our understanding of the facts. 
In particular, we would like to explore more full y the scope and legal character of investment 
licenses. 
Answer : 
Investment licenses are issued by the Ministry of Planning and Investment or provincial People's 
Committees or provincial Industrial Zone Management Boards to investors to implement the foreign 
direct investment projects in Viet Nam.  The main  contents of an investment license are:  name, 
address of the investor(s); objectives and scope of investment; investment location (i.e. where the investment project is implemented); project's re gistered investment capital and legal capital, 
proportion of capital contribution of parties to Joint Venture (as applicable to joint venture projects); 
operation duration of investment project; rights and ob ligations of investor(s), etc.  An investment 
licence demonstrates rights and obligation of bo th the State authorities and investor(s) in 
implementing the project with the above mentioned elements. 
Viet Nam confirms that: - The provision on transfer of assets without comp ensation from foreign investor(s) to the State 
of Viet Nam after the termination of the project  is optional and at the investor's discretion. 
Vietnamese laws and regulations do not, in an y circumstances, oblige foreign investors to 
transfer, without compensation, their assets to th e State of Viet Nam at the termination of the 
project's duration.   
- Since 1 January 2004, the tax on transferring pr ofits abroad previously applied to foreign 
investors has no longer been stipulated in invest ment licenses as a result of the elimination of 
this kind of tax by amendments to the Law on Corporate Income Tax.  
- The obligation of environment protection stipul ated in investment licenses is applied non-
discriminatorily to both foreign and domestic investors. 
- State Ownership and Privatization 
Question 21  Regarding the reply to Question 22 of WT/ACC/VNM/36, we would be grateful if Viet Nam 
could indicate specifically what the Ordinance on Posts and Telecommunications (as well as 
measures implementing it) provides for as re gards the use of gateways and networks (for 
example, non-discrimination of operators usin g leased lines).  We would like to see this 
information included in the report. 
Answer
: 
Article 43 of the Ordinance on Posts and Telecommunications and Articles 27, 28, 29, 30, 31, 32, 33 
and 60 of the Decree on detailed im plementation of some provisions of the Ordinance on Posts and 
Telecommunications are designed to ensure the rights and obligations of telecommunications 
providers to access to and use of public teleco mmunications transport networks of each other. WT/ACC/VNM/38 
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 Question 22  
Viet Nam states in the reply to Question 23 of WT/ACC/VNM/36 that industries such as 
management and operation of irrigation works,  plant varieties/seeds and animal breeding, and 
salt production and distribution will be equitized with the State retaining controlling equity. 
We would be grateful if further details on plan s to equitize these industries could be provided 
and reflected in the report. 
Answer
: 
Equitization of State-owned enterprises (SOEs) opera ting in these industries is in accordance with the 
master plans of SOEs transformation and restructuri ng of respective ministries and local authorities. It 
is expected that the equitization plan of SOEs shal l be fundamentally completed by the end of 2006. It 
should be also noted that these industries have so fa r not attracted private inv estors since they remain 
facing a lot of difficulties and in most cases generate low or even no profits. 
Regarding the current state of play of equitization in these industries: - The Ministry of Agriculture and Rural Deve lopment has three enterprises operating in 
management and operation of irrigation works. All of them are public interest enterprises. 
Therefore, the State plans to retain 100 per cent ownership in these SOEs.  
- All SOEs which are producers and suppliers of plant varieties/seeds and animal breeding have 
been equitized. 
- Ministry of Agriculture and Rural Developmen t has ten enterprises producing and trading in 
salt.  Among them, five have so far been equiti zed. It is planned that the equitization of the 
remaining five enterprises shall be completed in 2005.  
- SOEs under the management of local authorities which produce and trade in salt will also be 
equitized. 
Some enterprises operating in these industries whic h are planned to be equitized includes:  
- Vinh Long Irrigation Works Exploitation Company 
- Plant varieties/seeds companies in Qu ang Binh and Thua Thien Hue provinces 
- Animal breeding companies (under the Genera l Corporation of Animal Breeding): Chau 
Thanh chicken breeding plant, Central Cow Breeding Plantation 
- Salt companies:  Central Salt Company, Bac Lieu Salt Company, Ninh Thuan Salt Company 
and Thai Nguyen Iodine Salt Company. 
Question 23  
Regarding the reply to Question 23 of WT/ACC/VNM /36, we note the social policy objective in 
relation to the production of salt. 
- We would be grateful if Viet Nam could clarify the rationale for state involvement in the 
distribution of salt, and reflect this clarification in the report. 
- We would appreciate clarification that there are no restrictions on private enterprises, 
including enterprises without state equity, to undertake the distribution of salt in 
Viet Nam, and would ask that such a clarification be reflected in the report. 
- We would appreciate an indication of the enterprises that distribute salt in which the 
state has equity, and the percentages of equity held by the state.  WT/ACC/VNM/38 
 Page 13 
 
 
 Answer : 
Salt is considered an important agricultural commod ity in Viet Nam.  Salt production is concentrated 
in the coastal areas with the total acreage of above 20,000 ha.  It generates main income for above 
100,000 households of farmers.  However, these farmer households' income is very low since the 
transformation of land of salt production to more  productive agricultural cultivation is almost 
impractical. In order to improve the income for fa rmers producing salt, the Government of Viet Nam 
is, on the one hand, pursuing the programme of modern ization of the salt industry.  On the other hand, 
the Government applies tariff rate quota on importe d salt with a view to securing employment and 
ensuring income stability for those farmers produci ng salt.  Since salt production in Viet Nam is 
facing a lot of difficulties: the profitability is low,  weather conditions are unstable, therefore, even 
though there is no restriction on entry, private enterprises tend not to invest in such industry. 
Consequently, all investments to improve land of salt production are made by the Government. 
Salt distribution is not limited to the State owned enterprises only.  The State involvement in 
distribution of salt is to ensure that the social  needs, especially the needs of inhabitants in 
disadvantaged socio-economic areas where private enterprises could not satisfy, are sufficiently 
served.  This does not mean that the private sector ar e restricted from participating in salt distribution. 
All enterprises, irrespective of their ownership, ar e free to engage in the production and distribution of 
salt. 
Presently, there are 10 enterprises under the Ministry of Agriculture and Rural Development, a 
number of enterprises under the local authoriti es and numerous private enterprises that are 
participating in trading in salt in Viet Nam. 
The General Corporation of Salt is responsible to buy salt pro duced by salt farmers. Annual salt 
production (raw salt) of Viet Nam is approximately  900,000 tons, of which about 350,000 tons are 
purchased by the General Corporation of Salt to satisfy the domestic demand and to store as the National Stock (public stockholding to satisfy salt demand during times of low production or bad 
harvest). Most of the salt purchased by the Genera l Corporation of Salt from salt farmers are supplied 
as material to its 32 salt producing mills (many of  them have been equitized) and to mountainous 
provinces for producing iodized salt for human c onsumption under the framework of the National 
Priority Programme (for providing iodized salt to all segments of the population). 
At present, the distribution of salt to consumers within the country is mainly undertaken by private 
enterprises and small retailers. 
Question 24  
We would appreciate more information on the "p roduction and supply of other products and 
services in accordance with the State's social policies" where state ownership will continue 
(reply to Question 23 of WT/ACC/VNM/36), and woul d ask that this information be reflected in 
the report.  We seek: 
- detailed advice on what these products and services are; 
- the state-owned or equitized enterprises operating in these areas; 
- the specific social objectives that are advan ced by state equity in relation to these 
activities; and 
- advice of whether or not enterprises without state equity may undertake these activities. WT/ACC/VNM/38 
Page 14  
 
 Answer
: 
The definition of public goods and services and crite ria for identifying public goods and services have 
been provided in the reply to Question 47 of docu ment WT/ACC/VNM/36.  Please refer also to reply 
to Question 26 of this document for further information. 
The Law on State-owned Enterprises of 1995 containe d provisions relating to public interest State 
owned enterprises.  However, in order to improve the efficiency of public interest activities and 
diversify the types of public interest providers,  the Law on State-owned Enterprises of 2003 removed 
provisions of public interest State owned enterp rises so as to permit enterprises of all economic 
sectors to participate in providing public goods a nd services through orders placed or tenders put up 
by the State.  Accordingly, all en terprises, irrespective of their ownership, are entitled to participate in 
producing and supplying pub lic goods and services.  
Question 25  
The reply to Question 29 of WT/ACC/VNM/36 indicates that, under Decision 
No. 155/2004/QD-TTg of 24 August 2004, the state is  required to hold 100 per cent of capital in 
enterprises in "Other important sectors as decided by the Prime Minister". 
- We would be grateful for details of the sectors/activities decided by the Prime Minister 
where the state is required to hold 100 per cent of capital in enterprises. 
- We request that information on the sectors/ac tivities where the state is required to hold 
100 per cent, or 50 per cent of capital, including those decided by the Prime Minister, be provided and tabulated in the report. 
Answer
: 
The current list of sectors and industries where th e State shall retain 100 per cent ownership or 
controlling equity of enterprises has been provided in details in the reply to Question 29 of document 
WT/ACC/VNM/36. 
It is possible that during the process of econom ic development, there may emerge some other 
sectors/activities affecting the stability and common interest of the society where entities of other 
economic sectors are not interested in or difficu lt to operate.  In these limited cases, the Prime 
Minister shall consider and ma ke the appropriate decisions. 
Question 26  
The reply to Question 29 of WT/ACC/VNM/36 indicates that, under Decision 
No. 155/2004/QD-TTg of 24 August 2004, the state is  required to hold 100 per cent of capital in 
enterprises "ensuring essential needs for deve lopment of production and improvement of 
spiritual life of ethnic minorities living in mountainous, remote or distant areas". 
We would be grateful for details of the sectors/activities relating to "essential needs for 
development of production". 
Answer : 
Sectors/activities relating to essential needs for development of production and improvement of 
spiritual life of ethnic minorities living in mountainous, remote or distant areas include: supply of text 
book, cultural products; supply of salt for huma n consumption and other essential commodities; 
supply of materials for agriculture and forest development.  WT/ACC/VNM/38 
 Page 15 
 
 
 Question 27  
We thank Viet Nam for the information provide d on State Owned Enterprises.  The reply to 
Question 29 of WT/ACC/VNM/36 indicates that, under Decision No. 155/2004/QD-TTg of 24 August 2004, the State is required to hold 100 per cent, or 50 per cent or more, of capital in enterprises engaged in the following activities:  mapping; petroleum processing; exploitation of 
ores containing radioactive substances; building a nd repair of means of transportation by air; 
printing of political books or newspapers; wholesale trade of medicines, pharmaceutical 
products, foods, petrol and oil; air or rail transp ortation; electricity generation; exploitation of 
minerals; manufacture of mechanical pr oducts; provision of telecommunications 
infrastructure; production of ferrous metals, cement, fertilizers, pesticides, table salt, milk, beer 
and alcohol; maritime transportation; banking and insurance; domestic animal breeding and 
seed cultivation; deep sea fishing services; r oad and waterway management and maintenance; 
and operation of fairs or exhibitions. 
We would be interested in advice as to wheth er Viet Nam is intending to review the ownership 
arrangements for enterprises which are 100 per cent Government owned and where the 
Government has a controlling share.  We would as k that such advice be reflected in the report. 
Answer
: 
The List of sectors/activities that  the State would retain 100 per cen t ownership or controlling equity 
is reconsidered for the purpo se of narrowing down further. 
Question 28  
The reply to Question 33 of WT/ACC/VNM/36 states: "The Government of Viet Nam does not 
maintain any restriction on the participation of private enterprises in fertilizer production."  
However, the reply to Question 29 states that the st ate is required to hold 50 per cent or more of 
the shares in certain fertilizer production. 
We would appreciate clarification of the situation. 
Answer : 
Viet Nam does not have any restriction on the participation of non-State-owned enterprises in 
fertilizer production.  
The reply to Question 29 in document WT/ACC/VNM/ 36 needs to be understood in the context of 
classification of existing State-owned enterprises according to criteria set out in the Decision 
No. 155/2004/QD-TTg for the purpose of their restructuring and/or equitization.  Accordingly, this reply should be read as the State will hold more than 50 per cent of the total shares upon equitization 
of companies engaged in production of fertilizers a nd pesticides. It is only applicable to those 
enterprises previously wholly owned by the State and planned to be equitized.  It is not applied to 
other forms of enterprises.  As a result, the fertili zer production in Viet Nam is not restricted to only 
companies in which the State holds a controlling (over 50 per cent) equity.  That the State is required to retain more than 50 per cent of the shares of  the State-owned enterprises operating in fertilizer 
production upon their equitization is to ensure that th e social needs, especially needs of inhabitants in 
disadvantaged socio-economic areas where Vietnam ese private enterprises could hardly satisfy, are 
sufficiently served.  This does not mean that privat e enterprises are restricted from participating in 
fertilizer production. WT/ACC/VNM/38 
Page 16  
 
 Therefore, information provided in the reply to  Question 29 and that to Question 33 of document 
WT/ACC/VNM/36 is not inconsistent. 
Question 29  
The reply to Question 47 of WT/ACC/VNM/36 seems to suggest that there is no limit on what 
may be listed and no clear criteria for deciding what  is or is not a public good or service.  For 
example, it is not clear what goods or services would not be considered "essential" to the 
"economic-social life of the whole po pulation, a community or a region". 
How would Viet Nam define the scope for what  could be considered to be a public good or 
service?  What limits would be placed on what could be considered by the state to be a public 
good or service? 
Answer
: 
The Government's Decree No. 31/2005/ND- CP dated 11 March 2005 on the production and 
distribution of public goods and services sets out three criteria for identif ying public goods and 
services as indicated in the reply to Question 47 of document WT/ACC/VNM/36 .   
The scope for what could be considered to be p ublic goods and services has been clearly specified in 
the List attached to the above mentioned Decree.  Accordingly, any goods and services not entered 
into the List shall not be deemed public goods and services.  
Goods and services which are "essential to economi c-social life of the whole population or of a 
community of a region, or to the national security  and defence" have also been detailed in the 
mentioned List. 
Question 30  
Regarding the reply to Question 25 of WT/ACC/VNM/36, will the new Law on Enterprises also 
apply to State owned companies? 
Answer : 
The draft Enterprise Law governs four legal form s of companies: limited liability company, 
shareholding company, partnership and private enterp rise.  This Law is also applied to State-owned 
enterprises if they are established in the form of limited liability companies, shareholding companies 
or partnerships. 
Question 31  
Regarding the reply to Question 29 of WT/ACC/VNM/36: (i) Could Viet Nam explain the rationale of requiring 100 per cent State ownership as 
regards publishing houses (list 1), production of scientific films, newsreels, 
documentaries and films for children. 
(ii) Could Viet Nam explain what further sectors for 100 per cent State ownership are 
anticipated under the last item in the list "other important sectors as decided by the Prime Minister"? Why has Viet Nam not prepared a comprehensive list of all activities with 100 per cent State ownership requirement but left it open?   
(iii) Could Viet Nam explain what is the rational of requiring 100 per cent state ownership of 
companies in certain sectors on the basis of a criteria "leading in the application of  WT/ACC/VNM/38 
 Page 17 
 
 
 cutting edge technology or high-technology" (list 3).  Why should ownership of such 
companies only be reserved to State?   
(iv) Could Viet Nam explain the rationale of requiring 100 per cent State ownership as 
regards processing of petroleum, building and repair of means of transportation by air, 
transportation by air or rail (list 3). 
(v) Could Viet Nam explain the rationale of requiring more than 50 per cent State 
ownership as regards manufacturing of electrical equipment and materials, specialised industrial machinery, machinery and equipm ent for agriculture, forestry and fishery, 
building and repair of means of transport by  sea or rail, manufacture of cement by a 
modern technology, production of fertilizers  and pesticides, production of salt, milk, 
beer with a capacity of more than 50 million litres per annum, alcohol and spirits with a 
capacity of more than 10 million litres per a nnum, maritime transportation, monetary 
or insurance business and operation of  floors of fairs and exhibitions? 
Answer
: 
(i) Scientific films, documentaries and films fo r children are public goods and not included in the 
List of prohibited and restricted sectors/lines of business.  However, since Vietnamese private 
producers of these types of films face difficulti es in recovering their costs, they are not 
interested in or unable to participate in provi ding such public goods.  Consequently, the State 
is required to retain 100 per cent ownership in the State-owned enterprises producing these 
types of films in order to ensure the social needs are sufficiently satisfied.  
(ii)  The current general policy of the Government  of Viet Nam is to refrain from establishing new 
State-owned enterprises and at the same time, narrow the scope of enterprises in which the 
State is maintaining 100 per cent ownership or holding a controlling equity.  Nevertheless, it 
is possible that during the process of economic development, there may emerge some other sectors/activities affecting the stability and comm on interest of the society where entities of 
other economic sectors are not interested in or  difficult to operate. In these limited number of 
cases, the Prime Minister shall consider  and make the appropriate decisions. 
(iii-v) The mentioned sectors/industries are not restricted to only State-owned enterprises. 
Vietnamese private sector is permitted to par ticipate in these sectors/activities.  Foreign 
investors are also allowed to invest in  these sector/activities in  accordance with the 
international commitments made by Viet Nam.  
The State retains 100 per cent ownership or controlling equity in companies engaged in such 
sectors/industries because these are vital economic and technological sectors and industries of 
the national economy which are high risk, require large investments and long pay-back time. Thus that the State-owned enterprises engaged in  these sectors and industries are retained with 
100 per cent State's ownership or equitized with the State's controlling equity is intended to 
generate impetus for speedy and strong development of other sectors and industries as well as 
other economic sectors. 
Question 32  
Regarding the reply to Question 33 of WT/ACC /VNM/36, we note a contradiction between 
information given under Question 29, which states that production of fertilizers is reserved to companies with more than 50 per cent State ownership, and Question 33, which states that all economic sectors are entitled to engage in pro duction and trading of fertilizers and that there 
are no restrictions to the participation of private companies in fertilizer production. 
Could Viet Nam clarify whether there are restrict ions to private companies' share of ownership 
in the fertilizer producing companies.    WT/ACC/VNM/38 
Page 18  
 
 Answer
: 
Viet Nam does not have any restriction on the participation of non-State-owned enterprises in 
fertilizer production.   
The reply to Question 29 in document WT/ACC/VNM/ 36 needs to be understood in the context of 
classification of existing State-owned enterprises according to criteria set out in the Decision 
No. 155/2004/QD-TTg for the purpose of their restructuring and/or equitization.  Accordingly, this 
reply should be read as the State will hold more than 50 per cent of the total shares upon equitization of companies engaged in production of fertilizers a nd pesticides. It is only applicable to those 
enterprises previously wholly owned by the State and planned to be equitized.  It is not applied to 
other forms of enterprises.  As a result, the fertili zer production in Viet Nam is not restricted to only 
companies in which the State holds a controlling (over 50 per cent) equity.  That the State is required 
to retain more than 50 per cent of the shares of  the State-owned enterprises operating in fertilizer 
production upon their equitization is to ensure that th e social needs, especially needs of inhabitants in 
disadvantaged socio-economic areas where Vietnam ese private enterprises could hardly satisfy, are 
sufficiently served.  This does not mean that privat e enterprises are restricted from participating in 
fertilizer production. 
Therefore, information provided in the reply to  Question 29 and that to Question 33 of document 
WT/ACC/VNM/36 is not inconsistent. 
Question 33  
Regarding the reply to Question 41 of WT/ACC/VNM/36, could Viet Nam clarify whether the 
maximum level of foreign ownership has been ra ised from 30 per cent to 49 per cent in the new 
investment law?  
Could Viet Nam explain the rational of the expl anation "The list of business sectors that foreign 
investors are entitled to purchase shares is issu ed by the Prime Minister"? Does this mean that 
foreign enterprises are not free to by shares  in all other companies but those subject to 
100 per cent State ownership requirement? 
Could Viet Nam provide a comprehensive list of  business sectors where foreign investors are 
entitled to buy shares. 
Answer
: 
Viet Nam is currently considering revising the List  of business sectors/lines that foreign investors are 
entitled to purchase shares and the limitation applicable  to shares purchased by foreign investors in a 
Vietnamese company.  However, the new Investment  Law shall not be able to provide for detailed 
regulations.  Instead, the Prime Minister shall be  mandated to issue such detailed regulations.   
Question 34  
On State Enterprises, we very much app reciate the data provided in Annex 5 of 
WT/ACC/VNM/36.  We hope Viet Nam will use th e summer to augment the information in this 
Annex. 
However, clarity is still needed on important fa ctual matters related to Viet Nam's state sector; 
in particular, the role of the state in the management of these enterprises remains obscure.  WT/ACC/VNM/38 
 Page 19 
 
 
 We reiterate our preference that this section and the section on state-trading be combined to 
reduce confusion and provide th e best factual foundation. 
We would appreciate receiving a copy of the State Enterprise Law of 2003 and copies of the 
laws listed in the answer to Question 34 of WT/ACC/VNM/36. 
We would strongly recommend that the section on privatization stand alone. 
The answer to Question 43 of WT/ACC/VNM/36 was very helpful, to follow up, would foreign 
owners be able to increase their holdings above 30 per cent after the initial distribution of shares? 
Answer
: 
Regarding Annex 5 of document WT/ACC/VNM/36, we  look forward to more specific questions so 
that Viet Nam could continue to augment its  information of State-owned enterprises.   
According to the provisions of the Law on SOEs of 2003, SOEs have legal status like limited liability 
companies and their operations are on an equal footi ng with private enterprises.  The State, with the 
role of an investor, is only responsible within the limit of the capital invested in an enterprise without 
interfering in the business operations of the enterp rise; SOEs can make their own decisions on 
business operations and are self-responsible for thei r operations.  The Ministers and Chairmen of 
provincial People's Committees have the obligati ons to ensure the business autonomy and self-
responsibility of the enterprises; do not interfere in the tasks within the authority of the Board of 
Management, the General Director, Director and ma nagerial apparatus of the enterprises.  The 
General Directors and Directors of large-sized SOEs are selected by the Board of Management for appointment or signing employment contracts, foreigners  can also be hired to be directors.  Directors 
of small-sized enterprises are selected by the Ministers and Chairmen of provincial People's 
Committees for appointment or signing employment contracts; these enterprises will gradually be equitized or converted into companies and the owne rship of state capital (if any) of which will be 
transferred to corporations conducting investment  and business with State capital; state bodies will no 
longer administer these enterprises.  
The current regulation that the amount of shares equi valent to the maximum of 30 per cent of charter 
capital of a Vietnamese enterprise that foreign inve stors are allowed to purchase is applied to both 
initial sales of equity and listed equity.  Revising  the regulations on maximum level of equity 
purchased by foreign investors is being considered.  
Viet Nam would consider the combination of the section on State Trading Enterprises and the section 
on State-owned Enterprises with a separate part on equitization, in accordance with the practice in 
other accessions.  
Viet Nam would like to submit as attachments to this  document the following legislation:  the Law on 
State-owned Enterprises of 2003; the G overnment Decree No. 88/1999/ND-CP dated 
1 September 1999 Issuing Regulations on Tendering (as amended on 15 May 2000 and 
12 June 2003); the Government Decree No. 109/2004/ND-CP dated 2 April 2004 on Business 
Registration. WT/ACC/VNM/38 
Page 20  
 
 - Pricing Policies 
Question 35  We are pleased to see that Viet Nam does not o ppose the inclusion of our suggested text in the 
draft report (reply to Question 52 of WT/ACC/ VNM/36), and we would hope to see this text 
duly included in the forthcoming redrafted report.  We would comment that there is, however, 
no confusion involved in the inclusion of this text in this part of the report.  The maintenance of 
support prices is a significant area of pricing policy in Viet Nam, and we are interested in 
whether minimum price measures will be applie d in conformity with the requirements of 
Article III:4 of GATT 1994 and other WTO provi sions.  The application of any mandatory 
internal minimum price requirement to import ed goods would not satisfy the requirements of 
Article III:4 of GATT 1994.  We would be grateful for clarification of the following issues, and 
for their reflection in the report: 
- whether processing plants are required to  purchase imported cotton at the minimum 
prices applied to domestic cotton; 
- whether the selected trading enterprises which receive interest rate subsidies to 
encourage purchases from domestic pro ducers are required or are encouraged to 
purchase imported pork, sugar and rice at th e same prices at which they are encouraged 
to purchase domestic like products; 
- confirmation that sugar refineries are not required to purchase domestic raw sugar at a 
minimum price; and if there is such a mi nimum price requirement, clarification of 
whether sugar refineries are required to pu rchase imported raw sugar at the same 
minimum price; 
- confirmation that purchasers of refined su gar are not required to purchase domestic 
sugar at a minimum price; and if there is such a minimum price requirement, clarification of whether such purchasers of refined sugar are required to purchase imported sugar at the same minimum price; 
- confirmation that industrial users of salt are not required to submit information about 
their actual or proposed purchase prices for domestic or imported salt with their applications for tariff quota allocations; 
- confirmation that the purchase price of dom estic or imported salt is not a factor in 
determining the allocation of tariff quot a to an industrial user of salt; and 
- whether recipients of allocations of tariff quota are expected to conform to price norms 
of any kind in relation to imported salt, domestic salt or both. 
Answer
: 
Pursuant to the existing regulations in the Ordina nce on Prices, buying and selling prices of almost all 
products are set by businesses themselves.  Busin esses are responsible for their own trade activities 
and outcomes.  Accordingly, there is no legal doc ument obliging traders to sell, purchase, import or 
export cotton, sugar and salt at any minimum prices.  Minimum prices in this context should not be 
deemed as prices imposed by the State.  They ar e the pre-committed minimum price by the State to 
carry out product-specific price-support program that are implemented through agreement on 
contractual basis. Currently, Viet Nam's cotton and sugar processing plants are not purchasing domestic 
raw cotton and sugar cane at minimum prices but at a contractual price mutually agreed by the plants 
and farmers.  The product-specific price support program has been notified to Members in the 
Notification on Domestic Support and Export Subsidi es in Agriculture.  As such, the substance and 
form of the measures would be more appropriately  put in the area of agricultural domestic support 
under the section on agricultural policy.  WT/ACC/VNM/38 
 Page 21 
 
 
 - The minimum prices apply only to purchases of domestically produced cotton and not to 
imported cotton.  
- No.  Viet Nam's trading enterprises which recei ve interest rate subsidies to encourage 
purchases from domestic producers are neither re quired nor encouraged to purchase imported 
pork, sugar and rice at the same price at whic h they are encouraged to purchase domestic like 
products. 
- The minimum prices apply only to purchases of domestic sugarcane for which refineries have 
signed contracts with farmers in order to protect the latter's interests.  Sugar refineries are not 
required to purchase either domestic or imported raw sugar at a minimum price. 
- Purchasers of refined sugar are not required to  purchase either domestic or imported refined 
sugar at a minimum price. 
- Questions concerning tariff rate quota on importe d salt:  No, industrial users of salt are not 
required to submit information about their act ual or proposed purchase prices for domestic or 
imported salt with their applications for tari ff quota allocations.  The decisive factor in 
determining the allocation of tariff quota of salt to an enterprise is the demand for industrial 
salt to be used in the enterprise's production. 
Question 36  
We are also interested in clarification of any minimum prices applied to imported products or 
exported products, and the reflection of in formation on such measure in the report. 
- We refer to the system of import and ex port surcharges under the Price Stabilization 
Fund that was carried over into the Export Promotion Fund pursuant to Decision 
No. 195/1999/QD-TTg of 27 September 1999 (paragraph 97 of WT/ACC/SPEC/VNM/5).  
We would be grateful for details of the products subject to import and export 
surcharges, the levels of the surcharges curren tly applied and details of the internal or 
external target or reference price levels or ra nges that are used to determine the level of 
the surcharge applied in each case. 
- Could Viet Nam indicate whether minimu m prices of any kind are applied to any 
imported products?  If any are applied, we would appreciate details of all of the products subject to such prices, of the level of the minimum prices and of the manner in which they are applied. 
- Could Viet Nam indicate whether minimum export sale price requirements are applied 
to any exported product?  If any are applie d, we would appreciate details of all of the 
products subject to such prices, of the level of the minimum prices and of the manner in 
which they are applied. 
Answer
: 
Currently, no administrative price in the form of minimum price is applied on any import or export. Regarding import surcharge, Viet Nam would like to  confirm that all import surcharges have been 
completely eliminated since December 2004 and Viet Nam comm its to bind ODCs at zero upon 
accession. 
Regarding export surcharge, Viet Nam now mainta ins only export surcharges on rubber latex and raw 
cashew nuts at 10 per cent.  The rates of 10 per cent have been maintained since their introduction. WT/ACC/VNM/38 
Page 22  
 
 Question 37  
We would appreciate details of the input price considerations involved in deciding the amount 
of freight subsidy provided to offset the cost of transportation of production inputs to low-
income or resource poor producers in mountainous and remote regions. 
We would appreciate information on the inputs that benefit from the freight subsidy; whether 
the level of freight subsidy for an input depends on its price prior to transportation; whether it 
is designed to achieve a target purchase price for the final user of the input; and who receives 
the subsidy. 
Is the provision of a freight subsidy for an input dependent on whether the input is domestically 
produced or imported? 
Answer
: 
The level of freight subsidy for certain agricultu ral inputs and materials (mainly fertilizer) does not 
depend on their prices prior to transportation. 
The objective of the freight subsidy programme is to o ffset the differential in costs of transportation of 
agricultural inputs and material s from lowlands to mountai nous and remote areas where 
underdeveloped infrastructures make transportation very  difficult and costly.  In addition, incomes of 
farmers living in such disadvantaged regions  are rather low and production conditions are 
unfavourable. 
Direct beneficiaries of freight subsidies are trad ing enterprises that are mandated to trade in the 
subsidized goods. 
The provision of a freight subsidy for an input is not dependent on whether the input is domestically 
produced or imported. 
Question 38  
We thank Viet Nam for its agreement to remove  the square brackets from the commitment to 
publish any changes to the list of goods and services subject to State price control in the Official 
Gazette (reply to Question 53 of WT/ACC/V NM/36).  We request that the commitment 
paragraph (paragraph 56 of WT/ACC/SPEC/VNM /5) be provisionally amended to read: 
 The representative of Viet Nam confirmed that, from the date of accession, Viet Nam 
would apply price controls in a WTO-cons istent fashion and take account of the 
interests of exporting WTO Members as provided for in Article III:9 of GATT 1994 and in Article VIII of the General Agreement on Trade in Services (GATS).  He also confirmed that Viet Nam had published the list of goods and services subject to State 
price control and changes thereto in its Offi cial Gazette and would continue to do so 
after accession.  He confirmed moreover that  pricing policy in Viet Nam would be 
applied in compliance with the provisions of Article III:4 and XI:1 of GATT 1994 and Article 4 of the Agriculture Agreement.  The Working Party took note of these commitments.  WT/ACC/VNM/38 
 Page 23 
 
 
 Answer : 
Viet Nam agrees to commit that price control measures would be consistent with WTO rules and any 
changes to the list of goods and services subject to  State price control will be published on Official 
Gazette. 
Viet Nam is willing to discuss commitment langua ge on this issue with the Working Party. 
III. FRAMEWORK FOR MAKING AND ENFORCING POLICIES Question 39  Further to the reply to Question 67 of WT/ACC /VNM/36, we would appreciate further advice 
from Viet Nam on its consideration of allowi ng recourse to both administrative and legal 
appeals referred to in paragraph 72 of WT/ACC/SPEC/VNM/5. 
Answer
: 
Viet Nam is currently revising its legal system in  order to allow parties involved in administrative 
disputes to bring the administrative disputes before  the court in case the settlement of the disputes 
through administrative proceedings has been unsatisfactory.  The Law on Complaint and 
Denunciation (amended) and the Ordinance on the Amen dments of and Supplements to some Articles 
of the Ordinance on Procedures for Settlement of  Administrative Disputes are scheduled to be 
adopted in 2005. 
Question 40  
We would encourage Viet Nam to agree to the second paragraph of the proposed commitment 
set out in Question 75 of WT/ACC/VNM/36.  We consider the implication of the reply to that question, that Viet Nam would only take action  to abide by its future WTO obligations in the 
event of Dispute Settlement proceedings being taken against it, to be of concern. 
We ask Viet Nam to reconsider its position in relation to this matter. 
Answer
: 
Viet Nam does not imply that Viet Nam would only take action to abide by its future WTO 
obligations in the event of Dispute Settlement proc eedings being taken against it.  In our view, the 
first sentence of Viet Nam's reply to Question 75 of WT/ACC/VNM/36 has been adequate in ensuring 
the uniform application of WTO provisions throughout the Vietnamese customs territories.   
IV. POLICIES AFFECTING TRADE IN GOODS 
- Trading Rights Question 41  We appreciate the further evolution that has ta ken place in Viet Nam's position on trading 
rights, apparent in Annex 2 of WT/ACC/VNM/36/Add.1.  We are pleased to see that Viet Nam 
now does not include items that are unbound.  We note that some tobacc o products; petroleum; 
motion picture film; printed books, newspape rs, brochures and leaflets; printing machines; 
records, tapes and other recorded media, are to  be subject to State Trading Enterprises. WT/ACC/VNM/38 
Page 24  
 
 We would appreciate clarification that this means that trading rights will  only be available to 
State Trading Enterprises in these areas. 
Answer
: 
Viet Nam's adjusted commitments on trading rights ar e listed in Annex 1.  For the products subject to 
State Trading Enterprises, exclusive rights are grante d or designated to certain enterprises to serve the 
purpose of the State Trading mechanism. 
Question 42  
We would consider the trading rights reservations  proposed by Viet Nam in relation to State 
Trading Enterprises and the Tariff Rate Quota administration method in Table 1 of Annex 2 to be inconsistent with paragraph 6 of Annex 2. 
Could Viet Nam confirm that reservations prop osed in Table 1 in relation to State Trading 
Enterprises and the Tariff Rate Quota ad ministration method would preclude: 
(a) the maintenance of any State Trading Enterp rise in relation to any product, other than 
the products in Table 1 against which the term "STR" is inscribed? 
(b) the application of any Tariff Rate Quota ad ministration method that would restrict the 
eligibility of any particular legal or natu ral person, domestic or foreign, to receive 
import licenses for allocations, except in rel ation to the product in the Table 1 against 
which the term "TRQ" is inscribed? 
If Viet Nam wishes to pursue its scheduling approach that would include reservations for 
trading rights restrictions in relation to State Trading Enterprises and/or Tariff Rate Quota administration methods, then we would expect that paragraph 6 of Annex 2 would be deleted. 
Answer
: 
Viet Nam's adjusted commitments on trading rights are listed in Annex 1.   
Question 43  
We note with particular interest that Annex 2 of WT/ACC/VNM/36/Add.1 includes a 
reservation on the right to trade in relation to the TRQ administration method for only one 
TRQ product, un-manufactured tobacco of Heading 24.01. 
Does this mean that tariff quota under the propos ed bound tariff rate quotas for sugar and salt 
would be allocated to any legal or natural person,  domestic or foreign, that seeks an allocation 
within the bounds of the tariff quota volume, and only through the first-come-first-served 
method (including through the issuance of impo rt licenses on a first-come-first-served basis)? 
Answer : 
Viet Nam's adjusted commitments on trading rights are listed in Annex 1.  
For products that are subject to TRQs, no further trading rights reservations are made as long as the 
respective TRQ administration mechanism is accepted. 
Viet Nam shall only apply TRQ on sugar as from the date of accession in accordance with Viet Nam's 
Offer on TRQs.  WT/ACC/VNM/38 
 Page 25 
 
 
 As for salt, according to the Circular No. 10/2 004/TT-BTM dated 27 December 2004 and the Circular 
No. 04/2005/TT-BTM dated 24 March 2005 of the Minist ry of Trade, traders having demand for salt 
to use in their production are allocated TRQ by th e Ministry of Trade upon submitting certification by 
line-management ministries.  In principle, the allocation of TRQ on salt is through first-come-first-
served method.  
Question 44  We note that trading rights for certain good s (including wine and sugar) are still not to 
commence until 2010, and that it is still only from 1 January 2009, that 100 per cent foreign 
directly invested enterprises will be allowed to engage in import and export activities.  The 
restrictions to the right to trade are inco nsistent with WTO requirements, including 
Articles XI:1 and III:4 of GATT 1994. 
We urge Viet Nam to reconsider the timeframes proposed and make commitments so that, from 
the date of accession, any natural or legal person,  domestic or foreign, will have the right to be 
the importer or exporter of record in relation to  any product allowed to be imported into or 
exported from Viet Nam, and in the case of importation, will have the right to sell those 
products to any legal or natural person, domest ic or foreign, who has the right to distribute 
them. 
Answer
: 
Viet Nam's adjusted commitments on trading rights are listed in Annex 1.  
Question 45  
We note Viet Nam's adjusted commitments on trading rights set out in Annex 2 to 
WT/ACC/VNM/36.  However, these do not change the situation as regards the concerns 
expressed in Question 76:  trading rights in a g reat number of products will only be liberalised 
in 2010, and 100 per cent foreign directly invested  enterprises will only be granted full trading 
rights on 1 January 2009.  
We welcome Viet Nam's announcement in the informal meeting of the Working Party of 
20 May 2005 to continue to expand trading rights  for foreign enterprises and individuals.  We 
urge Viet Nam to equalise the treatment of forei gn and domestic enterprises as regards trading 
right upon accession as regards all products allo wed to be imported to or exported from 
Viet Nam.  In terms of commitment language, we agree to the suggestion of another Member as 
referred to in Question 76. 
Answer : 
Viet Nam's adjusted commitments on trading rights are listed in Annex 1.  
Question 46  
On trading rights, we wish to reiterate our positi on that Viet Nam commit that from the date of 
Accession, any natural or legal person, domestic or foreign, will have the right to be the importer of record of any product allowed to be im ported into Viet Nam, whether it is all types 
of media or autos, for example, and to ma ke those products available for purchase and 
distribution by an legal or natural person, dome stic or foreign, having the right to engage in 
distribution in Viet Nam's market. WT/ACC/VNM/38 
Page 26  
 
 Answer
: 
Viet Nam's adjusted commitments on trading rights are listed in Annex 1.  
Question 47  
We request that Viet Nam use the summer to gather and compile its trade data at the HS 8-digit 
level.  We hope Viet Nam could present the Wo rking Party this information prior to the next 
Working Party. 
Answer : 
Due to the weakness of the data collection and codi ng system of Viet Nam's Customs prior to 2004, 
trade data at HS 8 digit of Viet Nam was insufficient and inaccurate.  
Viet Nam has made its best efforts to compile th e import-export data of the year 2003 (which is the 
latest trade data available) at the HS 6-digit level to submit to the Working Party (document 
WT/ACC/SPEC/VNM/1/Rev.3/Add.3). Nevertheless, due  to its time and resource restraints, the 
section of commodity description is only availa ble in Vietnamese. Viet Nam seeks for the 
understanding of the Working Party's Members rega rding technical and infrastructure difficulties in 
information and statistical system at its Customs o ffices and looks forward to the latter's assistance to 
be able to overcome these difficulties in a near future. 
A. IMPORT REGULATIONS 
- Ordinary customs duties Question 48  We appreciate the explanation on statutory MFN tariff ceilings given in response to Question 93 
of WT/ACC/VNM/36. 
Is Viet Nam willing to align its statutory MFN ta riff ceilings with the bound MFN rates of duty 
in its Schedule of Concessions and Commitm ents for Goods upon accession to the WTO? 
Answer
: 
On the basis of explanation in the answer to Question 93 of WT/ACC/VNM/36 on statutory ceiling 
rates, after the accession to WTO, in conducting its  tariff policy, the Government of Viet Nam will 
abide by its commitments and rules of WTO, includi ng its tariff commitments and rules applicable to 
application of import duties in special cases.  In a ddition, the statutory ceiling rates set by the National 
Assembly's Standing Committee continues to serve as domestic legal basis and would not be in 
conflict with WTO's rules.  Therefore, Viet Nam does not intend to align its statutory tariff ceiling 
with the bound rates of duty in its Schedule of  Concessions and Commitments in Goods upon 
accession. 
Question 49  We note Viet Nam's response to Question 94 of WT/ACC/VNM/36 that all legal documents are 
subject to publication in the Official Gazette and would generally come into effect 15 days from publication.  We hope this means Viet Nam will be in a position to undertake the commitment to 
publish rates prior to application.  WT/ACC/VNM/38 
 Page 27 
 
 
 We would appreciate confirmation of this po int, and the inclusion in the report of the 
amendment to paragraph of WT/ACC/SPEC/VNM/5 proposed in Question 94 of WT/ACC/VNM/36. 
Answer
: 
Viet Nam commits to implement fully the obligations under Article X.2 of GATT 1994 on the basis 
of the implementation of the Law on Promulgation of Legal Normative Documents which requires all 
legal enactments, including those on tariff rate cha nges, to be published on the Official Gazette and 
would generally take effect in 15 days from th e date of publication. Viet Nam reaffirms its 
commitment to make such tariff changes public prio r to application in accordance with Article X.2 of 
GATT 1994. Accordingly, paragraph 93 of WT/A CC/SPEC/VNM/5 should be rewritten "...Viet Nam 
would officially publish any tariff changes requi red by the provision of Article X.2 GATT 1994 and 
..."  
Question 50  
We are encouraged that Viet Nam is intending to limit the number of tariff lines subject to 
compound/combined specific duties (reply to Question 95 of WT/ACC/VNM/36).   
We continue to urge Viet Nam to ensure that it bi nds its tariffs in the form in which it intends to 
apply them.  We would have considerable difficulty with claims to any procedure that could necessitate frequent recourse to GATT Article XXVIII procedures, and even greater difficulty 
with claims to a post-accession arrangement that  would by-pass GATT Article XXVIII entirely.  
Viet Nam should adopt and implement its tariff commitments with a view ensuring predictable and secure access to its markets. 
Answer
: 
Viet Nam takes note of this proposal and reaffirms th at Viet Nam, on the one hand, tries to limit the 
number of tariff lines subject to specific or co mbined/compound duties, while, on the other hand, 
taking into consideration fuller perspectives of the implementation of tariff commitments with a view 
to better ensuring the form of application would be co nsistent with the form at the time of binding. 
Question 51  We would propose that the following text  be added at the end of this section: 
 Viet Nam's commitments on bound tariffs are contained in the Schedule of Concessions 
and Commitments on Goods (document WT/ACC/VNM/[…]) annexed to Viet Nam's draft Protocol of Accession to the WTO. 
Answer
: 
Viet Nam agrees to put the proposed paragraph in the Draft Report. 
- Other duties and charges  
Question 52  We note that, upon the elimination of the Price Stabilization Fund, the import and export 
surcharges applied under the Price Stabilization Fund had been carried over into the Export WT/ACC/VNM/38 
Page 28  
 
 Promotion Fund pursuant to Decision No . 195/1999/QD-TTg of 27 September 1999 
(paragraph 97 of WT/ACC/SPEC/VNM/5). 
We would be grateful if Viet Nam could provide  details of all import and export surcharges, 
charges, levies or fees (other than ordinary cust oms duties) that are currently applied, whether 
pursuant to Decision No. 195/1999/QD-TTg of 27 September 1999 or any other legal instrument, 
and whether applied under the Export Promot ion Fund or any other government program.  
Such details should indicate the tariff lines to which the products fall, the nature of the 
measures, the purpose of the measures and their legal basis. 
We would be grateful if Viet Nam could indicate  the steps that it will take to eliminate these 
measures and the programs under which they are applied (including the Export Promotion 
Fund and any other program) by the date of its accession to the WTO. 
Answer
: 
Regarding import surcharge, Viet Nam confirms that  all import surcharges have been eliminated since 
December 2004 and Viet Nam commits to bind its ODCs at zero upon accession. 
Regarding export surcharges, Viet Nam now mainta in only export surcharges on rubber latex and raw 
cashew nuts at 10 per cent.  In Viet Nam's view, this is not inconsistent  with WTO regulation. 
Regarding fees and charges for services rendered, Viet Nam has listed in the same section in 
paragraph 106 of WT/ACC/SPEC/VNM /5 and levels of specific fees and charges appeared in 
Tables 14(a) and (b). 
Regarding the Export Promotion Fund, Viet Nam has committed to eliminate all prohibited export 
subsidies in the form of direct payments for exports upon accession. 
Question 53  We refer to measures described in paragraphs 98 and 99 of WT/ACC/SPEC/VNM/5. We would be grateful for details of the program under which these measures are applied and 
their legal basis. 
We would be grateful if Viet Nam could indicate  the steps that will be taken to eliminate these 
measures and the programs under which they are a pplied by the date of its accession to the 
WTO. 
Answer
: 
ODCs mentioned in paragraph 98 and 99 of WT/ACC/ SPEC/VNM/5 have been eliminated.  The last 
2 ODCs on welded steel and PVC were removed in December 2004.  Viet Nam would like to update 
these developments at the end of paragraph 99 of WT/ACC/SPEC/VNM/5. In addition, Viet Nam 
commits to bind ODCs at zero upon accession.  WT/ACC/VNM/38 
 Page 29 
 
 
 Question 54  
We welcome the indications that Viet Nam has provided of its willingness to bind at zero other 
duties and charges within the meaning of Article II:1(b) of GATT 1994 (replies to Questions 99 and 100 of WT/ACC/VNM/36 refer).  We seek Viet Nam's agreement to the following commitment language to replace para graph 101 of WT/ACC/SPEC/VNM/5: 
 The representative of Viet Nam recalled that Viet Nam had bound all tariffs in its 
Schedule of Concessions and Commitments for Goods.  He confirmed that Viet Nam would from the date of its accession to the WTO not apply other duties and charges 
within the meaning of Article II:1(b) of GATT 1994 and would bind such other duties and charges at zero in relation to all pro ducts included in its Schedule of Concessions 
and Commitments for Goods.  He confirmed th at all measures and programs of the kind 
described in paragraphs [97] to [99] above woul d be eliminated no later than the date of 
Viet Nam's accession and that after accessi on measures of this kind would not be 
reapplied or introduced.   The Working Party took note of these commitments. 
Answer
: 
Viet Nam appreciates the proposed commitment language  on this issue.  Viet Nam has agreed with 
the same commitment language in response to Question 99 of WT/ACC/VNM/36:  
"The representative of Viet Nam confirmed th at Viet Nam had agreed to bind at zero 
other duties and charges in its Schedule of Concessions and Commitments, pursuant 
to Article II:1(b) of the GATT 1994.  The Working Party took note of this commitment." 
Question 55  We appreciate Viet Nam's acceptance of the prop osed commitment language for the section on 
Other Duties and Charges. 
Answer
: 
We thank you for the comment. - Tariff rate quotas, tariff exemptions Question 56  We are pleased that Viet Nam is prepared to  make a commitment to allocate and administer 
tariff rate quotas in full conformity with  WTO rules (reply to Question 103 of 
WT/ACC/VNM/36).  Pursuant to outcomes of mark et access negotiations, we will be seeking to 
link such a general commitment to commitments  on a range of specific matters relating to 
allocation and other tariff quota administration, and remain interested in further discussions of 
paragraphs 103A, 103B and 103C proposed in  Question 110 of WT/ACC/VNM/36.  Such 
commitments will be required to make effect ive access under any commitments that may be 
included in Part I Section IB of Viet Nam' s Schedule of Concessions and Commitments for 
Goods. 
As a prelude to further work, we reiterate ou r requests for the insertion into the report of 
(1) the additional sentence to paragraph 102 of WT/ACC/SPEC/VNM/5 proposed in Question WT/ACC/VNM/38 
Page 30  
 
 103 of WT/ACC/VNM/36, and (2) of paragraphs 103A, 103B and 103C proposed in Question 
110 of WT/ACC/VNM/36. 
Answer
: 
Concerning paragraph 102, Viet Nam commits that the allocation and administration of tariff rate 
quotas will be in full conformity with the WTO applicable rules and agrees to make detailed 
commitment on tariff rate quotas administratio n according to the outcomes of its accession 
negotiations.  
Concerning paragraph 103, Viet Nam already accepte d to add sub-paragraph 103.C.  As for the 
remaining sub-paragraphs 103.A and 103.B, Viet Nam also explained in details  the consistency of the 
applied TRQ with WTO provisions.   
Question 57  In-quota and out-of-quota tariffs are concession s made by the parties to the WTO Agreement, 
as specified in GATT 1994 Article II.  
Tariffs are "conceded" by a Contracting Party to  the other Contracting Parties.  Therefore, 
they are obligations for the Cont racting Party to which the Schedule belongs and rights for the 
other Parties that integrate the system. TRQ allocation or administration systems should not 
alter the rights and obligations set out in the WTO context.  Those sy stems should meet the 
following requisites:  
(i) To preserve the Contracting Parties' rights;  
(ii) To be oriented towards the market rules and laws; (iii) Not to be discriminatory; 
(iv) Not to be arbitrary; and 
(v) Not to distort the market rules. 
The Auctioning System:  It is inconsistent with  the WTO Agreements since they determine that 
the parties should give up the profit margin th at correspond to them as a right and that their 
products should be valued at prices inferior to  those offered by a market not distorted by the 
auctioning method.  In fact, the actual access pr ice is not the one offered for the entry but the 
one resulting from the corresponding in-quota ta riff plus the profit margin given up by the 
offering party.  
The auctioning system causes an income displa cement towards importers, distorting the real 
exercise of the freedom to contract and of the free  market that exporters enjoy in entering into 
contracts with importers.  
The "Obliged Party" Administration System:  No  matter how arbitrary the system is, the party 
that concedes the tariff cannot b ecome the party that decides ho w many or to whom tariff 
quotas should be assigned.  As the right correspo nds to the rest of the contracting parties and 
not to the party offering the concession, if th e system is administered and conditioned in a 
different way to the way in which the obliged part y does so in the market, the system diminishes 
or undermines the rights of the members.  
The parties that bound themselves to set a tariff  should refrain as much as possible from 
influencing the use of market access entitlements.  WT/ACC/VNM/38 
 Page 31 
 
 
 Answer : 
Viet Nam has submitted its revised Offer on TRQs, through WT/ACC/SPEC/VNM/1/Rev.3/Add.4, 
where the administration of TRQs for certain items has been revised. 
The commitments in Viet Nam's Offer on TRQs, after the conclusion of Viet Nam's accession 
negotiations, will be part of the commitment p ackage.  With regard to the allocation and 
administration of tariff rate quotas, Viet Nam alre ady committed to abide by all WTO applicable 
rules. 
Question 58  
We appreciate the replies to Questio ns 104 and 106 of WT/ACC/VNM/36. 
The factual information in the section of the repor t on Tariff Quotas will need to be updated to 
take account of Decision No. 46/2005/QD-TTg of 3 March 2005 and any other recent laws and 
legal acts in this area. 
We would ask Viet Nam to indicate in the rep ort the tariff quotas that are now (i) currently 
applied and (ii) currently proposed to be bound under the WTO. 
We would also be grateful if Viet Nam could provide details of the annual quota volumes, the 
in-quota and out-of-quota rates, and the method s for allocating quota and administering the 
arrangements currently applied. 
Answer : 
Viet Nam takes note of the above comments and wi ll work with the Members of the Working Party 
and the Secretariat to revise the Draft Re port of the Working Party accordingly.  
For detailed information relating to tariff rate quotas (quota volume, in-quota and out-quota rates, 
allocation and administration methods), please re fer to the revised Offer on TRQs through 
WT/ACC/SPEC/VNM/1/Rev.3/Add.4. 
Question 59  
We appreciate the response provided to Ques tion 105 of WT/ACC/VNM/36.  However, we 
would note that Viet Nam had started its accessi on negotiations without any tariff rate quotas 
and had begun to apply such arrangements on a trial basis only last year, some time after 
market access negotiations had commenced. 
Answer : 
Since starting its accession, Viet Nam has made its best efforts to eliminate the import quantitative 
restrictions.  Viet Nam has committed to elimin ate all quantitative restrictions upon accession and to 
limit the number of items subject to the proposed tariff rate quotas.  Therefore, Viet Nam looks 
forward to WTO Members' reciprocal flexib ilities on this matter in the negotiation process. 
Question 60  
In the reply provided to Question 107 of WT/ACC/VNM/36, Viet Nam states that the 
discretionary import licensing regime applying  to sugar will be converted to a TRQ upon 
accession to the WTO. WT/ACC/VNM/38 
Page 32  
 
 We seek further information on the administra tive arrangements that Viet Nam intends to 
apply to a TRQ on sugar. 
Answer
: 
The administrative arrangements for tariff rate quota on sugar shall be in accordance with Viet Nam's 
Offer on TRQs.  Viet Nam has also committed that su ch arrangements will be in full conformity with 
the WTO applicable rules. 
Question 61  
We refer to Viet Nam's proposals for the use of additional quotas where they are used to 
manufacture for export, and understand that it s intention may be to create duty drawback 
arrangements.  We would have no objection to Viet Nam using duty drawback in relation to any 
product.  However, the volumes of products that enter its territory under a duty drawback 
arrangement should not be considered as part  of, or be linked to, any tariff rate quota 
arrangement. 
We would be interested in details of Viet Nam's plans in relation to duty drawback. 
Answer : 
Regulations on duty drawback for imported material s used to manufacture for exports had been in 
place well before the introduction of tariff rate quotas regime.  The use of additional tariff rate quotas 
for imported materials used for export manufacture does not make any changes to the previous duty drawback system.  It allows duty drawback on the amount of imported materials used for export 
manufacture when traders apply for an allocation of additional tariff rate quota volume.  
As a result, this regulation on additional quotas fo r imported materials used for export manufacture 
only has only administrative nature per se .  Traders may choose either to apply for allocation of 
additional tariff rate quotas or simply proceed to im port without seeking for an allocation of additional 
tariff rate quotas and enjoy drawback as normal in either options according to existing regulations. 
Viet Nam has not planned any changes to the current duty drawback regime.  
Question 62  
We thank Viet Nam for the information provided in the reply to Question 108 of 
WT/ACC/VNM/36 on the TRQ allocation mechanis m for salt.  There are some details of the 
information that is fed into the allocation pro cess.  However, we are unclear as to how this 
information is used to determine allocations. 
We would appreciate details of the criteria the line-ministry uses when assessing an application 
made by traders to import salt for use in production.  
We would also be grateful for clarification: 
- on whether tariff quota alloca tions are made to intending in dustrial users of salt for 
human consumption, and whether this will also be the case under the proposed bound 
tariff rate quota for this product; 
- on whether salt for human consumption ca n enter Viet Nam only under the tariff rate 
quota for salt.  WT/ACC/VNM/38 
 Page 33 
 
 
 Answer : 
The line ministries certify if the trader applying for TRQs on salt is the genuine user of industrial salt. 
The criteria that line ministries use in assessing an a pplication made by traders to import salt for use 
in production include production capac ity and type of materials used. 
The Ministry of Trade does not allocate tariff rate quotas on salt to manufacturer of salt for human 
consumption.  Traders receiving allocations of ta riff rate quotas on salt are obliged to use such 
allocations for the industrial purpose as specified.  
Salt for human consumption can be freely imported in to Viet Nam to meet the domestic demand and 
is subject to out of quota rate. 
Question 63  
If tariff quota allocations are not available to intending industrial users of salt for human 
consumption, then we would expect that all sa lt for human consumption will be excluded from 
the proposed bound tariff quota for salt and be  subject to a separate tariff-only commitment. 
Answer : 
We look forward to working with Members of the Working Party to revise the TRQ on salt so that it 
can best reflect our intention in applying  this TRQ as well as Members' interests. 
Question 64  
Bearing in mind that salt was not included in  Table 1 of Annex 2 of WT/ACC/VNM/36/Add.1, 
we would appreciate confirmation from Viet Nam that there will be no restrictions on the right 
of any legal or natural person, domestic or foreign , to import or export salt, whether or not for 
human consumption, and that any importer of this  product will have the right to freely sell the 
quantities that it imports to any domestic user or distributor. 
Answer : 
The administration is only applied to in-quota importati on of salt.  Otherwise, appropriately registered 
traders can import and export salt.   
Question 65  
We thank Viet Nam for the information provided in the reply to Question 109 of 
WT/ACC/VNM/36.  We would appreciate information on the role played by the customs authorities (constituted, we understand, under the Ministry of Finance) in administering the tariff rate quota for salt. 
Do the customs authorities, for example, provide  import data, including for imports that enter 
under the tariff rate quota, in relation to this pro duct to the Ministry of Trade and the Ministry 
of Agriculture and Rural Development (MARD)? 
If such data is not provided by the customs auth orities to other parts of the government, or if 
there are lengthy delays in its provision, ho w will tariff quota fill be monitored so that 
reallocation of unused licenses m ay occur in a timely manner? WT/ACC/VNM/38 
Page 34  
 
 Answer
: 
The General Department of Cust oms is responsible for providing the Ministry of Trade and the 
Ministry of Agriculture and Rural Development with  statistics on the importation of salt.  However, 
there are delays in the provision of such statistics.  As a result, the Ministry of Trade would also use 
the data from enterprises' reports. 
Question 66  Further to the reply to Question 109 of  WT/ACC/VNM/36, we would appreciate information on 
how MARD determines the annual import TRQ volumes for salt. 
What measures will MARD, the Ministry of Trad e and the customs authorities take to ensure 
that any TRQ volumes will be filled in any year? 
We have seen recent reports of plans by MARD for Vi et Nam to be fully self-sufficient in salt by 
2010, when imports of this product are expected to  be reduced to zero.   We seek clarification as 
to whether these reports are correct. 
Answer
: 
Based on the domestic demand for salt and production cap acity, the Ministry of Trade, the Ministry of 
Agriculture and Rural Development, and the Minist ry of Industry jointly decide the total annual 
volume of tariff rate quota for salt.  This decisi on is taken on the basis of production output, demand 
for salt as material for manufacturing or processing industries, production capacity of manufacturing 
or processing businesses, and the fulfilment of tariff rate quota on salt in the preceding year. 
Enterprises having demand for industrial salt to use in their production lodge their applications for 
allocations of tariff rate quota on salt to the Ministry of Trade.  The Ministry of Trade shall be 
responsible for TRQ allocations. 
The Vietnamese Government has approved the master  plan for development of salt industry to 2010 
which laid out forecast for the industry.  Salt produc tion, however, is also dependent on other factors 
such as the weather conditions for the year. 
Question 67  
Further to the reply to Question 109 of WT/ACC/VNM/36, we appreciate the information 
provided on the role of the Viet Nam Salt Corporation in the distribution of salt in Viet Nam.  However, we would also appreciate information on the role of the Viet Nam Salt Corporation in 
the production of salt in Viet Nam. 
We have seen reports that the Viet Nam Salt Corporation – a state-owned enterprise – accounts 
for most of the salt produced in Viet Nam.  What  percentage of the salt produced in Viet Nam is 
produced by the Viet Nam Salt Corporation? 
What percentages of the salt produced and th e salt distributed by the Viet Nam Salt 
Corporation are accounted for by  salt for human consumption? 
We would appreciate clarification as to whether the Viet Nam Salt Corporation will continue to 
receive, after accession, allocation s of tariff quota for salt.  WT/ACC/VNM/38 
 Page 35 
 
 
 Answer : 
The function of the Viet Nam General Corporatio n include:  (1) purchasing salt from salt farmers; 
(2) producing different types of sa lts (purified salt, refined salt, iodized salt); (3) ensuring the National 
Stock (public stockholding) of salt.  The General Corporation of Salt has ten member enterprises 
specialized in salt production and trade.  
Most of salt production is undertaken by farmers. Annual salt output of the General Corporation of 
Salt as a whole, inclusive of its member ente rprises' own production and joint production, accounts 
for about 15-20 per cent of the domestic salt production.   
The General Corporation of Salt annually purchases be tween 30-40 per cent of the national output. Its 
annual production is about 30 per cent of refined salt and iodized salt to satisfy the demand of 
domestic market, and also the quantities to ensure th e National Stock.  The rest of domestic salt output 
is purchased by other non-State-owned entities and a small portion is consumed by salt farmers (salt 
producers) themselves.  
Most of the salt volume purchased by the General Corporation of Salt from salt farmers are supplied 
as material to its 32 salt producing mills (many of  them have been equitized) and to mountainous 
provinces for producing iodized salt for human cons umption within the framework of the National 
Priority Programme.  
The Viet Nam General Corporation of Salt and its member enterprises also possess some capacity to 
produce salt as materials for other industries.  Therefore, it is also eligible for applying salt quota allocations to use in its production. 
Question 68  
We appreciate advice provided that the Viet Nam Salt Corporation is a recipient of tariff quota 
allocations as a distributor of salt. 
We note that Viet Nam proposes that tariff quota  allocations will be available only to industrial 
users of salt, and seek clarification as to whether th e Viet  Nam Salt Corporation is classified as 
an industrial user of salt. 
Answer
: 
The function of the Viet Nam General Corporatio n include:  (1) purchasing salt from salt farmers; 
(2) producing different types of sa lts (purified salt, refined salt, iodized salt); (3) ensuring the National 
Stock (public stockholding) of salt.  The General Corporation of Salt has ten member enterprises 
specialized in salt production and trade.  
Most of salt production is undertaken by farmers. Annual salt output of the General Corporation of 
Salt as a whole, inclusive of its member ente rprises' own production and joint production, accounts 
for about 15-20 per cent of the domestic salt production.   
The General Corporation of Salt annually purchases be tween 30-40 per cent of the national output.  Its 
annual production is about 30 per cent of refined salt and iodized salt to satisfy the demand of 
domestic market, and also the quantities to ensure th e National Stock.  The rest of domestic salt output 
is purchased by other non-State-owned entities and a small portion is consumed by salt farmers (salt 
producers) themselves.  WT/ACC/VNM/38 
Page 36  
 
 Most of the salt volume purchased by the General Corporation of Salt from salt farmers are supplied 
as material to its 32 salt producing mills (many of  them have been equitized) and to mountainous 
provinces for producing iodized salt for human cons umption within the framework of the National 
Priority Programme.  
The Viet Nam General Corporation of Salt and its member enterprises also possess some capacity to 
produce salt as materials for other industries.  Therefore, it is also eligible for applying salt quota 
allocations to use in its production. 
- Fees and charges for services rendered  
Question 69  
We would support the inclusion of the language  for this section of the report proposed in 
Question 126 of WT/ACC/VNM/36, and we would encourage Viet Nam to accept the proposed 
commitment and adjust its fees accordingly. 
Answer
: 
Regarding customs fees, Viet Nam have ceiling rates for each import clearance and Viet Nam is now 
in consideration of further reduction to customs fees.   Thus, Viet Nam believes that its regulations on 
customs fees are not inconsistent with Article V III of GATT.  Viet Nam is willing to discuss with 
interested Members to clarify on this and willi ng to work on the detailed commitment language. 
Question 70  
Viet Nam applies a customs fee for the purcha se or sale of foreign exchange which varies 
according to the value of the transfer.  We app reciate the clarifications given by Viet Nam, but 
note that they do not alleviate our concerns as regards the compatibility of the fee with 
Article VIII GATT since the level of the fee depend s on the value of the transfer.  The fee should 
be eliminated or revised to meet the criteria of Article VIII.  
Answer : 
Regarding customs fees, Viet Nam have ceiling rates for each import clearance and Viet Nam is now 
in consideration of further reduction to customs fees.   Thus, Viet Nam believes that its regulations on 
customs fees are not inconsistent with Article V III of GATT.  Viet Nam is willing to discuss with 
interested Members to clarify on this and willi ng to work on the detailed commitment language. 
Question 71  
We note that customs processing fees are based on  the quantity of imports, by weight and form 
of transportation.  We appreciate the clarifications  given by Viet Nam, but note that they do not 
alleviate our concerns as regards the compatibility of the fees with Article VIII GATT.  The fees 
should be modified to correspond to the cost of services rendered.  
A commitment paragraph should be added after this section, covering fees and charges for 
services rendered.  We agree with the lang uage proposed by another Member under 
Question 126 of WT/ACC/VNM/36.  WT/ACC/VNM/38 
 Page 37 
 
 
 Answer : 
Regarding customs fees, Viet Nam have ceiling rates for each import clearance and Viet Nam is now 
in consideration of further reduction to customs fees.   Thus, Viet Nam believes that its regulations on 
customs fees are not inconsistent with Article V III of GATT.  Viet Nam is willing to discuss with 
interested Members to clarify on this and willi ng to work on the detailed commitment language. 
Question 72  With respect to the section on Fees and Charg es for Services Rendered, we reiterate our 
position that Viet Nam's fee for the importatio n of foreign exchange is inconsistent with 
Article VIII of the GATT.  It should be eliminated or revised to meet the criteria in Article VIII. 
Answer
: 
Regarding customs fees, Viet Nam have ceiling rates for each import clearance and Viet Nam is now 
in consideration of further reduction to customs fees.   Thus, Viet Nam believes that its regulations on 
customs fees are not inconsistent with Article V III of GATT.  Viet Nam is willing to discuss with 
interested Members to clarify on this and willi ng to work on the detailed commitment language. 
- Application of internal taxes to imports 
Question 73  
We would encourage Viet Nam to indicate the st eps that it will take to integrate producers of 
unprocessed and raw agricultural products into  its VAT system (reply to Question 128 of 
WT/ACC/VNM/36 and paragraph 118 of WT/ACC/SPEC/VNM/5 refer).  The VAT exemption involved would not seem to meet WTO national  treatment requirements in relation to 
competing imported products that are subject to VAT.  We appreciate the problem in relation 
to small scale producers and recognise that such steps may take time. 
Answer
: 
The VAT law of Viet Nam provides that domestic  unprocessed and semi-process ed agri-products are 
not subject to VAT.  This provision results from th e fact that a lot of small scale households doing 
farm work sell their products without invoices and the administrative capacity of Viet Nam in this 
area is still weak and incapable of the inclusion of  these products into VAT scope.  This provision is 
not to discriminate between domestics products a nd imports which would be  inconsistent with 
Article III of GATT 1994.  In addition, unprocessed a nd semi-processed agri-products will be subject 
to VAT on the whole values in the next phase of VAT taxation.  Thus, the prod ucts are actually taxed 
by VAT. 
Viet Nam highly appreciates the WTO Members' understanding on its current difficulties in including 
this group of products into VAT scope.  Viet Nam w ould like to receive technical assistance from the 
Working Party in this issue. 
Question 74  
We would be grateful for an indication of whether VAT is rebated on the purchases made by 
producers of unprocessed and raw agricultural products. WT/ACC/VNM/38 
Page 38  
 
 Answer
: 
Article 16 of the Law on VAT provided that VAT re fund would be made to only producers subject to 
VAT.  Because unprocessed and semi-p rocess agricultural products are not subject to VAT, their 
producers would not be refunded for VAT on their inputs. 
Question 75  
We appreciate the recent announcement of plans to  equalise rates of excise for "draught beer" 
and "draft beer" by the date of accession. 
We ask that relevant details of this we lcome step be included in the report. 
Answer : 
Viet Nam commits to have a uniform rate of excise tax on draught and draft beer upon accession and 
agrees to put this into commitment language in the Draft Report. 
Question 76  
Regarding to Question 127 of WT/ACC/VNM/36, we  welcome the announcement of Viet Nam at 
the informal meeting of the Working Party of 20 May 2005, that Viet Nam will apply uniform tax rates for imported and domestical ly produced automobiles upon accession. 
Answer
: 
We thank you for the comment. 
Question 77  
Regarding to Question 132 of WT/ACC/VNM/36, we  welcome the announcement of Viet Nam at 
the informal meeting of the Working Party of 20 May 2005, that Viet Nam will apply uniform tax rates for draft and draught beer upon accession.  
A commitment paragraph should be added aft er this section, covering excise taxes and VAT. 
We agree with the language proposed by another Member under Question 135. 
Answer
: 
Viet Nam commits to have a uniform rate of excise tax on draught and draft beer upon accession and 
agrees to put this into commitment language in the Draft Report. 
Question 78  We again request that Viet Nam commit to e liminate its discriminatory excise taxes on 
automobiles and beer by the date of accession. 
Answer
: 
Viet Nam commits to have uniform rates of excise tax on automobiles and beer upon accession.  WT/ACC/VNM/38 
 Page 39 
 
 
 - Quantitative import restrictions, including prohibitions, quotas and licensing systems  
Question 79  We would suggest that the provision of the si ngle comprehensive list of non-tariff measures 
requested in Question 157 of WT/ACC/VNM/36 would fa cilitate work in this area of Viet Nam's 
foreign trade regime.  The replies provided to Questions 136 to 159 of WT/ACC/VNM/36 are 
appreciated; however, further information would be helpful. 
We would encourage Viet Nam to clarify and notify in a comprehensive listing, inter alia : 
- the specific measures used under line management referred to in Table 6 of 
WT/ACC/SPEC/VNM/5 (as requested in Questions 136 and 147), with additional relevant details to complete the tabulation; 
- all discretionary licensing used (e.g., Questions 140 and 150); 
- import licensing requirements to be notified as measures (as requested in Question 144), 
whether automatic within the meaning of Ar ticles 1 and 2 of the Agreement on Import 
Licensing Procedures or non-automatic; 
- all quantitative restrictions listed in Table 4(b) of WT/ACC/SPEC/VNM/5 (referred to 
in Question 146) and other tables in WT/ACC/SPEC/VNM/5, with appropriate 
information on status of elimination and other details to complete the tabulation; 
- all non-tariff measures of the kind applied in conjunction with the administration of 
tariff quotas (referred to in Question 151); 
- all non-tariff measures referred to in Questions 136 to 159 in respect of which 
information is needed to clarify product coverage, nature and rationale, legal basis and 
WTO justification or date of elimination; and 
- all measures notified in tables referr ed to in the tirets under Question 157 of 
WT/ACC/VNM/36. 
Answer
: 
Concerning the import quantitative restrictions:  Table 4(b) of document WT/ACC/SPEC/VNM/5 has 
provided comprehensive information as requested.  Ho wever, it should be noted that except for sugar, 
all other import restrictions have been eliminat ed.  Viet Nam has also committed to eliminate all 
import quantitative restrictions from the date of acce ssion.  As such, the only quantitative restriction 
being used for sugar shall be eliminated (a TR Q for sugar would instead be used) upon accession. 
Concerning line-management:  Please refer to Anne x 2 attached herewith that provides further 
information about the existing line-managemen t regime.  Viet Nam commits to apply line-
management in a WTO-consistent manner.  Sp ecifically, line-management shall not amount to 
quantitative restriction on imports. 
Question 80  
We appreciate the information that Decisi on No. 41/2005/QD-TTg of 2 March 2005 on 
promulgation of the Import Licensing Regulation is based on WTO rules and regulations, and 
that the Decisions will take effect from 1 September 2005 (reply to Question 136 of 
WT/ACC/VNM/36).  We would appreciate more information on line management measures, particularly those to be retained after accession and the WTO justification for the retention of 
the measures.  We would also appreciate more de tails on the licensing used, and whether the 
licenses are automatic or non-automatic with in the meaning of the Agreement on Import 
Licensing. WT/ACC/VNM/38 
Page 40  
 
 Answer
: 
Please refer to Annex 2 attached herewith that provides further information about the existing line-
management regime.  Viet Nam commits to apply line-managemen t in a WTO-consistent manner. 
Specifically, line-management shall not amount to quantitative restriction on imports. 
Question 81  
We thank Viet Nam for its commitment to appl y its line management measures in conformity 
with WTO rules and regulations from the date of accession and understand that Annex 3 of WT/ACC/VNM/33 contains the list of goods subject to line management for the period 2001-2005 (reply to Question 147 of WT/ACC/VNM /36).  As the list runs from 2001-2005, we 
would be interested to know whether there are pl ans for any changes to the list for the period 
from 2006 and the criteria for making changes to the list. 
Answer
: 
Currently, Viet Nam is in preparation of a new line-management mechanism for post-2005 period.  
Such new mechanism is based on the principle that line management measures would not be quantitative restrictions on imports.  
Question 82  We appreciate Viet Nam's commitment to el iminate the import prohibition on used 
motor-vehicles from the date of accession and to apply technical measures to used motor 
vehicles in compliance with the TBT Agreement. 
Answer
: 
We thank you for the comment. Question 83  We thank Viet Nam for its commitment to fu lly comply with the Agreement on Import 
Licensing.  We look forward to seeing Viet Nam' s detailed comparison between the provisions of 
Decision No. 41/2005/QD-TTg of 2 March 2005 on promulgation of the Import Licensing Regulation and the WTO Agreement on Import Licensing. 
Answer
: 
The document on detailed comparison between the provisions of Decision No. 41/2005/QD-TTg of 
2 March 2005 on promulgation of the Import Li censing Regulation and the WTO Agreement on 
Import Licensing Procedures was provided to the Worki ng Party in the form of non-paper prior to the 
Informal Meeting on 20 May 2005.  An uno fficial English translation of the Decision 
No. 41/2005/QD-TTg is submitted to th e Working Party through the document 
WT/ACC/VNM/38/Add.1. 
Question 84  
Regarding the replies to Questions 138, 139 and 141 of WT/ACC/VNM/36, we appreciate the 
explanations given by Viet Nam, but consider that  application of export prohibitions as regards 
motor cycles of a cylinder capacity exceeding 175 cc, second hand consumer goods, used 
materials and equipment and children's toys is too restrictive of a measure to comply with WTO  WT/ACC/VNM/38 
 Page 41 
 
 
 provisions. Several of these articles are traded by domestic companies without restrictions.  If 
there are concerns of health and safety, less rest rictive technical requirements applicable to 
both domestic and imported pro ducts should be developed.   
Answer : 
Motorcycles with engine capacity exceeding 175cc:   Viet Nam has regulations on eligible users 
(i.e. only to serve the police, armed forces and fo r sport competition).  Viet Nam is prepared to 
discuss the conversion of import prohibition into non-automatic import licensing (licenses are only given to imports for use by the police, armed fo rces and for sport competition).  No quantitative 
restrictions shall be applied to  importation for such purposes. 
While none of processing and disinfection facilities fo r used clothing before use has been set up in 
Viet Nam, import prohibition on second-hand clothi ng is considered the effective and necessary 
measure to protect public health against epidemics a nd the environment.  Due to the low level of its 
management capability, import prohibition on second- hand consumer goods appears to be the only 
effective alternative to protect health, environmen t and safety.  Viet Nam seeks for the understanding 
of the Working Party's Members on its factual situ ation, especially when some WTO Members with 
much higher level of development still mainta in import prohibition on certain used items. 
Viet Nam does not prohibit the importation of childr en's toys except for those having adverse effects 
on moral education and social security.  Both the domestic production and trade of children's toys that 
have negative impacts on dignity education and social  order and security are prohibited in Viet Nam. 
Question 85  
Regarding the reply to Question 141 of WT/ACC/VNM/36. we welcome Viet Nam's 
commitment to eliminate its import prohib ition of used motor vehicles upon accession. 
However, we note that the quotas indicate d in Annex 1 for three years are so small 
(progressively from 1,000 to 2,000 units), that their practical effect is not much greater than that 
of an export prohibition. We therefore urge Vi et Nam to eliminate the import prohibition of 
used motor vehicles upon accession.   
We propose that the commitment paragraph to th is chapter should also cover other existing 
import prohibitions in addition to cigarettes and cigars. 
Answer
: 
This quota is not small given the Viet Nam's current market size for passenger cars.  More 
importantly, it is necessary in a very limited time so that Vietnamese authorities can develop and experience the use of technical standards and regula tions on used motor vehicles for traffic safety and 
environment protection in compliance with WTO rules. 
Question 86  
We welcome the Non-Paper, distributed in the informal Working Party of 20 May 2005, setting 
out the main obligations of the WTO Agreement on Import Licensing Procedures and corresponding provisions in the new Prime Minister' s Decision No. 41/2005.  However, we have 
the following comments to make on the comparison: 
- Point 5 of the comparison Table WT/ACC/VNM/38 
Page 42  
 
  Article 1.5 of the AILP requires that app lication forms should only require necessary 
information to be given. This requirement is  not reflected in Article 3.2.b of the Prime 
Minister's decision. 
- Point 8 of the comparison Table  Article 2.2.a of the AILP requires that au tomatic licensing procedures shall not be 
administered in such way as to have restrictive effects on imports. This requirement is 
not reflected in Article 3.1.a of the Prime Minister's decision. 
- Point 11 of the comparison Table  Article 3.5 of the AILP requires that all nece ssary information on quotas, when existing, 
shall be given. This requirement is not reflected in Article 3.1.b of the Prime Minister's 
decision, which seems to refer only to procedural matters. 
- Point 14 of the comparison Table  Article 3.5.i of the AILP requires that licen ses are to be issued in "economic quantities". 
The wording "reasonable quantities and in  accordance with business practices" in 
Article 5.8 of the Prime Minister's Decisi on does not correspond to this obligation. 
We would request Viet Nam to bring the above mentioned points in compliance with the WTO 
Agreement on Import Licensing Procedures.   
Answer
: 
The non-paper Comparison Table provided at the Informal Meeting of the Working Party on 
20 May 2005 focused only on studying the comparabi lity of main obligations of the WTO Agreement 
on Import Licensing Procedures (AILP) and corresponding provisions in the new Prime Minister's 
Decision No. 41/2005/QD-TTg.  For further clarification, Viet Nam would like to address the 
Member's specific concerns as follows: 
-  Point 5 of the Comparison Table: 
That "the application forms should only require  necessary information to be given" can be 
understood as an echoing the wording "as simple as possible" in Article 1.5 of AILP.  
In a spirit of "simplicity and explicitness", li censing authorities shall set forth the application 
forms for import licenses areas on the principl e of maximum facilitation for businesses. 
- Point 8 of the comparison Table: 
The requirement "not aim to restrict import" has been prescribed in Article 2.4 (General 
Provisions). Please refer to the unofficial English translation of the Decision No. 
41/2005/QD-TTg provided as an attachment to this document. 
- Point 11 of the comparison Table:  
Necessary information on quotas has been speci fied in Article 5.3 of the Decision 
No.41/2005/QD-TTg. Please refer to the unofficial English translation of the Decision No.41/2005/QD-TTg provided as an attachment to this document.  WT/ACC/VNM/38 
 Page 43 
 
 
 - Point 14 of the comparison Table: 
This is merely a wording issue where th e phrase "reasonable quantities and in accordance 
with business practices" stated in the Decision No. 41/2005/QD-TTg of Viet Nam corresponds to the "economic quantities" notion st ated in the AILP and is to facilitate its 
internal implementation (as it is the closest Viet namese translation for such English term).  
Question 87  On import prohibitions, we appreciate Viet Na m's safety concerns, but prohibitions are too 
restrictive a measure for commonly traded goods like  motorcycles, toys, and used articles listed 
in table 4(a) of the draft report.  We reiterate  our recommendation that Viet Nam adopt import 
licensing to regulate trade in these products, if there are health or safety concerns. 
Answer
: 
Motorcycles with engine capacity exceeding 175cc:   Viet Nam has regulations on eligible users 
(i.e. only to serve the police, armed forces and fo r sport competition).  Viet Nam is prepared to 
discuss the conversion of import prohibition into non-automatic import licensing (licenses are only given to imports for use by the police, armed fo rces and for sport competition).  No quantitative 
restrictions shall be applied to  importation for such purposes. 
While none of processing and disinfection facilities fo r used clothing before use has been set up in 
Viet Nam, import prohibition on second-hand clothi ng is considered the effective and necessary 
measure to protect public health against epidemics a nd the environment.  Due to the low level of its 
management capability, import prohibition on second- hand consumer goods appears to be the only 
effective alternative to protect health, environmen t and safety.  Viet Nam seeks for the understanding 
of the Working Party's Members on its factual situ ation, especially when some WTO Members with 
much higher level of development still mainta in import prohibition on certain used items. 
Viet Nam does not prohibit the importation of childr en's toys except for those having adverse effects 
on moral education and social security.  Both the domestic production and trade of children's toys that 
have negative impacts on dignity education and social  order and security are prohibited in Viet Nam. 
Question 88  We reiterate our request that Viet Nam lift it s ban on large motorcycle imports by accession. 
Answer
: 
Motorcycles with engine capacity exceeding 175cc:   Viet Nam has regulations on eligible users 
(i.e. only to serve the police, armed forces and fo r sport competition).  Viet Nam is prepared to 
discuss the conversion of import prohibition into non-automatic import licensing (licenses are only 
given to imports for use by the police, armed fo rces and for sport competition).  No quantitative 
restrictions shall be applied to  importation for such purposes. 
- Customs valuation 
Question 89  We thank Viet Nam for its commitment to fully  comply with the Customs Valuation Agreement 
from the date of accession, and look forw ard to discussing commitment language. WT/ACC/VNM/38 
Page 44  
 
 Answer
: 
Viet Nam commits to fully apply the Customs Va luation Agreement upon accession and Viet Nam is 
willing to discuss on the detailed commitment language. 
Question 90  
An analysis of WT/ACC/SPEC/VNM/5 and WT/A CC/VNM/36 raises the following Question for 
consideration: 
Minimum prices (officially established minimum values) Article 7.2(f) of the Customs Valuation Agreemen t stipulates that no customs value shall be 
determined on the basis of minimum customs values. 
However, paragraph 2 of Annex III provides the possibility for developing countries which 
currently value goods on the basis of offici ally established minimum values to make a 
reservation to enable them to retain such values on a limited and transitional basis under such terms and conditions as may be agreed to by the Members. 
Additionally, in the context of special and diff erential treatment, Article 20.1 of the Agreement 
allows developing country Members to make a res ervation to delay application of its provisions 
for a period not exceeding five years from the date  of entry into force of the Agreement for such 
Members. 
Paragraph 136 of document WT/ACC/SPEC/VNM /5 of 22 November 2004 ("Draft Report of 
the Working Party on the Accession of Viet Na m") reads as follows:  "[The representative of 
Viet Nam] acknowledged that several of the pr ovisions of the Agreement had not yet been 
implemented in Viet Nam.  However, Viet Nam' s customs valuation system was being reformed 
to be brought into conformity with  the Customs Valuation Agreement". 
The following emerges from a comparative readi ng of the legislation and documents cited 
above: 
According to the Customs Valuation Agreement, goods may not be valued on the basis of 
minimum prices, except where the reservation referred to in Article 7.2(f) cited above has been 
made, or, obviously, if the maximum period of five years since the developing country Member 
became eligible for special and differential treatment under Article 20.1 has not yet elapsed. 
Answer
: 
Viet Nam commits to fully apply the Customs Valu ation Agreement upon accession.  This means that 
Viet Nam will not apply valuation by minimum prices upon accession.  In addition, minimum prices have been abolished from September 2004.  
Question 91  According to the WT/ACC/SPEC/VNM/5 and WT/ACC/VNM/36, Viet Nam would appear not 
to apply the deductive method regulated by Arti cle 5 of the Agreement (whilst the last part of 
paragraph 143 of document WT/ACC/SPEC/VNM/5  apparently refers to the Article 5.1 
method, i.e. the deductive method, the respon se to Question 161 in document WT/ACC/VNM/36 
mentions the Article 5.2 method, i.e. the super deductive method).  Nothing in the Agreement 
permits a developing country Member to cease applying this method;  on the other hand,  WT/ACC/VNM/38 
 Page 45 
 
 
 application of the Article 6 method (computed value) may be delayed for a further period of 
three years following the application of all oth er provisions of the Agreement.  Consequently, 
Viet Nam would be derogating from its oblig ations established under the Agreement if the 
period requested under the terms of Article 20.1 had already expired. 
Answer : 
Paragraph 43 of WT/ACC/SPEC/VNM/5 noted "Viet Na m had not been able to apply the computed 
value and deductive method (except for imported goods  for processing)" which is a typo error.  The 
paragraph should be read as follows:  "Viet Nam ha d not been able to apply the computed value 
method (Article 6) and deductive method for imported goods for processing (Article 5.2)". 
However, in the updated action plan to im plement the Customs Valuation Agreement 
(WT/ACC/VNM/20/Rev.2) submitted to the 8th Working Party meeting, Viet Nam committed to 
implement these two methods in compliance with th e Agreement at accession and Viet Nam will fully 
comply with the Customs Valuation Agreement upon accession. 
Question 92  
Option of appeal to a judicial authority 
Article 11.2 lays down the obligation for the legislation of each Member to provide for a right of 
appeal to a judicial authority in regard to a value determination. 
The response by the representative of Vi et Nam to Question 162 in document 
WT/ACC/VNM/36 of 7 April 2005 ("Additional Quest ions and Replies") is that the National 
Assembly is expected in the course of 2005 to  adopt new amendments to the Ordinance on 
Procedures for the Settlement of Administrative  Disputes (their adoption by the National 
Assembly was scheduled for the fourth quarter of 2004, according to document 
WT/ACC/SPEC/VNM/5 of 22 November 2004 ("Draft Report of the Working Party on the Accession of Viet Nam")). 
In this connection it should be noted that acco rding to the aforementioned provision no Member 
implementing the Agreement may renege on the undertaking to ensure that its legislation 
provides for the party concerned to have right of appeal to a judicial authority. 
Answer
: 
Viet Nam is revising and improving its legal documents, among which the Law on Complaint and 
Denunciation and the Ordinance on Procedures for Se ttlement of Administrative Disputes are planned 
to be amended in Quarter IV/2005 in order to allo w parties to an administrative dispute, including 
disputes involved customs valuation in accordance with WTO Agreement on Customs Valuation, to 
bring their administrative disputes before the court to  be settled in cases the settlement of the disputes 
through administrative proceedings has been unsatisfactory. 
Question 93  
Regarding Question 160 of WT/ACC/VNM/36, could Viet Nam explain the current state of play 
as regards the adoption of amendments to th e Ordinance on Procedures for Settlement of 
Administrative Disputes? WT/ACC/VNM/38 
Page 46  
 
 Answer
: 
The 7th Draft of the Ordinance on the Amendments of and supplements to some Articles of the 
Ordinance on Procedures for Settlement of Admini strative Disputes was submitted by the Supreme 
People's Court to the National Assembly Standing Committee for comments and recommendation on 28 June 2005.  The Supreme People's Court and rela ted agencies are now continuing to revise and 
finalize the Draft Ordinance on Procedures for Settle ment of Administrative Disputes (amended) to 
submit it to the National Assembly Standing Committee for adoption in August 2005.  
Question 94  
Regarding the Question 13 of WT/ACC/VNM/35, could Viet Nam explain when will all the 
Interpretative Notes be incorporated in the legislation of Viet Nam. 
Answer
: 
In fact, all Interpretative Notes have been incorp orated into current relevant legal documents of 
Viet Nam. 
- Anti-dumping, countervailing duties, safeguard regimes 
Question 95  
We are pleased that Viet Nam is prepared to  make a commitment to apply safeguards, anti-
dumping and countervailing measures in conformity with WTO rules upon accession. 
Answer : 
Viet Nam commits to apply safeguards, anti-dumpi ng and countervailing measures in conformity with 
WTO rules upon accession. 
Question 96  
Since the Ordinance only contains the main pr inciples and basic concepts of anti-dumping 
procedures, we are at this stage not in a po sition to make detaile d comments.  Presumably 
further details will be laid down in implementing  regulations and guidelines, in accordance with 
Article 29 of the Ordinance.  We would therefore invite Viet Nam to provide us with these texts, when they are being drafted, and offer to provi de more detailed comments in that context.  
Furthermore, we would strongly suggest that substantive and procedural provisions of any 
implementing rules be defined along the lines of the WTO ADA. 
Important aspects of anti-dumping procedures which currently appear to be lacking in the 
Ordinance or would need to be further elabor ated are, in particular: the rules on the 
determination of dumping (Articles 2.2.1 to 2. 5 of the Anti-Dumping Agreement (‘ADA')) and 
injury (Article 3.3 to 3.8 of the ADA); most of the rules on evidence (Article 6 ADA); some of the 
provisions on undertakings (parts of Articles 8.2, 8.4 and 8.5 ADA), on the imposition and 
collection of anti-dumping duties (most of Article 9 ADA), on retroactivity (parts of Articles 10.2 and 10.4 to 10.8 ADA); on reviews (Article 11.3 and part of Article 11.2 ADA), and on public notices (Article 12.1.1 to 12.3 ADA). 
Regarding the basic concepts, as currently laid down in the Ordinance, s o m e  o f  t h e m  d o  n o t  
seem to be fully in line, or might even be in conflict with the ADA.  Unless this is due to a 
translation problem, this would appear to be the case for, in particular the concepts of dumping  WT/ACC/VNM/38 
 Page 47 
 
 
 (Article 2.1 of the Ordinance), like product (Article  2.6 of the Ordinance) and injury (Article 2.7 
of the Ordinance).  Such concepts would need to  be aligned with the ADA in order to ensure 
WTO compatibility. 
Answer : 
Viet Nam commits to apply anti-dumping measures in conformity with WTO rules upon accession.  
Pursuant to provisions set out in Article 29 of the Ordinance No. 20/2004/PL-UBTVQH11 dated 
29 April 2004 Against Dumping of Imported Goods into Viet Nam (hereafter "the Ordinance on Anti-
dumping"), the Decree providing Detailed Regulati ons and guidelines for the implementation of a 
Number of Provisions of the Ordinance on Antid umping ("the draft Decree") on the investigating 
Authority on Antidumping, and the Council for hand ling antidumping cases; procedures, matters to be 
investigated and the imposition of antidumping m easures are being drafted so as to ensure the 
publicity, transparency in antidumping pro cedures and the compatibility to ADA rules. 
Some aspects mentioned above are provided for in the draft Decree.  In addition, it should be 
highlighted that Article 27 of the Ordinance on Antidumping provides that in instance of conflict 
between Vietnamese and relevant regulations set out in agreements or treaties that Viet Nam has 
signed or acceded, such agreements or treaties shall prevail. 
Regarding the comment that some of the basic c oncepts, as currently laid down in the Ordinance on 
Antidumping, do not seem to be fully in line, or mi ght even be in conflict with the ADA, it should be 
noted that for Viet Nam, antidumping issue is quite new and complicated, which covers numerous 
technical terms, therefore translated version mi ght not necessarily be correct.  The translation of 
provisions in question may be revised as follow: 
"Article 2. Interpretation of terms  
1. Anti-dumping duty shall be interpreted as an additional import duty imposed 
in instances where dumped goods imported in to Viet Nam causes or threatens to 
cause material injury to domestic industry.  
6.   Like product shall be interpreted as a product is identical to the product being 
requested for imposition of antidumping measure s in all respects, or in the absence of 
such a product, another product which has se veral characteristics closely resembling 
those of the product being requested fo r imposition of antidumping measures.  
7.   Material injury to domestic industr y shall be interpreted as a situation of 
material depression or suppression with respect to output, price, sales, profits, production growth rate; employment, investment and other criteria of the domestic 
industry or a situation resulting in a retard ation of the establishment of an industry." 
Question 97  
(i) Article 2.4, 2.5 and 8.1: the definition of negligibility does not only refer to volumes but 
also to value of imported goods, which is co ntrary to the ADA.  The same applies with 
regard to the definition of domestic industry in Art. 2.5 and 8.1 of the Ordinance. 
(ii) Article 13: It should be clarified that facts available can only be used in the 
circumstances and under the conditions forese en in Article 6.8 and Annex II ADA. 
(iii) Article 17.2 and 18.2: The preliminary and final conclusion of an investigation should 
not only be announced to the parties concern ed, but a public notice should also be made 
available in accordance with Article 12.2 ADA. WT/ACC/VNM/38 
Page 48  
 
 (iv) Article 23.2: the conditions for the retroac tive application of duties should be aligned 
with Article 10.6 ADA. 
Answer
: 
Viet Nam commits to apply anti-dumping measures in conformity with WTO rules upon accession.  
In addition, it should be highlighted that Article  27 of the Ordinance on Antidumping provides that in 
instance of conflict between Vietname se and relevant regulations set out  in agreements or treaties that 
Viet Nam signed or acceded, such agr eements or treaties shall prevail. 
(i) Concerning terms provided in Article 2.5 if the Ordinance on Antidumping, Viet Nam 
believes that the conflict mentioned might ha ve arisen from translation mistakes. Such 
translation should be revised as follow: 
"Article 2. Interpretation of terms  
5.   The term "domestic industry" refe rs to the domestic producers as a whole or 
to those of them whose collective output, quantity or value of the like products constitutes a major proportion of the total dom estic output, quantity or value of those 
products, provided that such producers ha ve not imported or have no directly 
associated relationship to individuals, [or]  organization exporting, [or] importing the 
product being requested for imposition of antidumping measures." 
Article 8.1 of the Ordinance on Antidumping stipulates one of the two bases for initiating an 
investigation.  This provision is in consistency with those of th e ADA.  However, in instance of 
conflict between Vietnamese and relevant regulations set out in agreements or treaties that Viet Nam 
has signed or acceded, such agreements or treaties shall prevail (Article 27 of the Ordinance on 
Antidumping).  
(ii) The draft Decree (Art. 22.5) specifies instan ces where facts available shall be used. The 
provision is elaborated with reference to Article  6.8 and the Annex II of the ADA, thus shall 
be interpreted in consistency with ADA rules. 
(iii) In addition to the obligation to notify parti es concerned of the preliminary conclusion and 
final conclusion as provided in Article 17.2 and 18.2 of the Ordinance on Antidumping, the 
draft Decree specifies an obligation to public ize such conclusions (Article 31 and 33). 
Furthermore, public notification of other rele vant information is em phasized throughout the 
draft Decree as to ensure the publicity, transparency in antidumping proceedings. 
(iv) Article 27 of the Ordinance on Antidumping provi des that in instance of conflict between 
Vietnamese and relevant regulations set out in  agreements or treaties that Viet Nam has 
signed or acceded, such agreements or treaties shall prevail. 
Question 98 
We appreciate your responses to our comments on  your anti-dumping, countervailing duty, and 
safeguards ordinances.  We look forward to rev iewing the implementing regulations that we 
understand are being drafted. 
Answer
: 
An unofficial English translation of the Decree No. 150/2003/ND-CP dated 8 December 2003 
providing detailed guidelines for the implementa tion of the Ordinance No. 42/2002/PL-UBTVQH10 
on Safeguards in Import of Foreign Goods into Vi et Nam is provided with this document.  The  WT/ACC/VNM/38 
 Page 49 
 
 
 English versions of the Decree providing detailed guidelines for the implementation of the Ordinance 
No. 22/2004/PL-UBTVQH11 date d 20 August 2004 on Measures Against Subsidized Goods 
imported into Viet Nam and of the Decree providing  detailed guidelines for the implementation of the 
Ordinance No. 20/2004/PL-UBTVQH11 dated 29 Ap ril 2004 Against Dumping of Imported Goods 
into Viet Nam shall be submitted to the Wo rking Party as soon as they are completed. 
B. EXPORT REGULATIONS - Export restrictions Question 99  We would encourage Viet Nam to phase out its export duties. 
Answer
: 
Viet Nam believes that imposition of export duty at  a reasonable level will not create a stumbling 
block to trade nor it would incur any violation of WTO rules. 
Question 100  
We seek clarification concerning reports that unp rocessed minerals export contracts have been 
suspended.  If this is the case, we would appreci ate an explanation of the reasons for such a step. 
Answer : 
In the recent period, there has been an increase in the widespr ead illegal exploitation of solid 
minerals, causing serious mining accidents as safety measu res are not applied. In order to cope with 
this situation, the Prime Minister has issued an Instruction. Item 2 of the Prime Minister's Instruction 
No. 10/2005/CT-TTg dated 5 April 2005 states as follows:  "...Regarding the exportation of minerals: 
Mineral export contracts that have been legally si gned and are being enforced in full compliance with 
the laws shall be permitted to continue exporting mi nerals in accordance with the provisions of the 
contracts. Signing new contracts to export raw so lid minerals is temporarily suspended until new 
regulations are issued (except for special cases as decided by the Prime Minister)." Pursuant to the 
above Instruction, the signing of new contracts to  export raw solid minerals is only temporarily 
suspended until the issuance of new regulations on conditions to export mine rals to supersede the 
Circular No. 02/2001/TT-BCN dated 27 April 2001 gui ding the export of minerals during the period 
of 2001-2005 in order to reorganize mineral exploitation activities for mining safety and environmental protection. New regulations are being prepared for issuance by the competent authorities. Enterprises that have signed mineral ex port contracts with lawfully exploited mineral 
sources are allowed to continue exporting as normal. 
Question 101  We thank Viet Nam for information on rice exports,  and would be grateful for clarification as to 
whether there are certain domestic volumes that  have to be fulfilled before any rice can be 
exported. 
Answer
: 
Viet Nam is a major rice-consuming country in the world. National food security is one of Viet Nam's 
most important targets to ensure socio-economic  stability.  Thus the Government of Viet Nam 
normally establishes the annual food target taking into account of domestic demand and food security WT/ACC/VNM/38 
Page 50  
 
 needs and then announces an indicative export volume  of rice which is merely guidance, not a 
restriction, to rice exporters so that they can d ecide their business plans to find their export markets 
and sign the export contract.  
Question 102  
We note that traders who have registered their bu sinesses are entitled to export, and would be 
interested in information on whether there are any cri teria traders have to meet to be eligible to 
export rice. 
Answer
: 
Export of rice is generally encouraged by the Govern ment of Viet Nam to assi st farmers to sell their 
agricultural production.  As a result, traders who ha ve legitimately registered their trading business 
are entitled to export rice (except for special periods when food security is threatened). 
Question 103  
We are pleased that Viet Nam is willing to ma ke a commitment to apply any export restrictions 
in a manner fully consistent with WTO provisions. 
Answer : 
We thank you for the comment. 
Question 104  
Regarding Question 180 of WT/ACC/VNM36, we appr eciate the explanations of Viet Nam on 
the rationale of the export duties imposed on ferrous and non-ferrous scrap.  However, we 
remain concerned as regards the effect of these measures and request that Viet Nam eliminates the export duties imposed on ferrous  and non-ferrous scrap upon accession.  
Answer
: 
Rationales behind the fact that an export duty is imposed on this product include: - This is an important material input for manufact uring of metal to meet the demand of various 
industries in Viet Nam; 
- Domestic market is currently running short of the product and it is also difficult to import the 
product. 
- Viet Nam believes that imposition of export duty on ferrous and nonferrous scrap (with 
negligible incidence of the tax) would not affect  the trade flow of the raw material in general 
and would not cause any pressure on price to in crease. In Viet Nam's view, the export duty 
would not incur any violation of WTO's rules.   
- Export subsidies 
Question 105  
We welcome Viet Nam's commitment to eliminate subsidies contingent upon localization ratios 
and the use of domestic over imported goods upon accession to the WTO.  WT/ACC/VNM/38 
 Page 51 
 
 
 We note that Viet Nam proposes to eliminate subsidies contingent upon export performance 
within three years from the date of accession , and to eliminate the remaining prohibited 
subsidies within nine years from the date of  accession.  We are concerned at the proposed 
timeframes and would wish to see such subsidies eliminated upon accession. 
Answer : 
With respect to export subsidies that are prohibite d under the SCM Agreement, Viet Nam commits:   
(i) to eliminate subsidies contingent upon localization ratios and the use of domestic over 
imported goods upon accession to the WTO;  
(ii) to eliminate subsidies in the form of direct payment from the State budget contingent upon 
export performance upon of accession to the WTO; and 
(iii) to eliminate the remaining prohibited subsidi es (mainly subsidies in the form of investment 
incentives) within seven years from the date of accession to the WTO. 
Question 106  
Regarding Question 189 of WT/ACC/VNM36, we welcome the announcement of Viet Nam at 
the informal meeting of the Working Party of 20 May 2005, that Viet Nam will eliminate upon 
accession subsidies in the form of direct paym ents contingent on export performance.  
Viet Nam seeks a transitional period of nine years to eliminate remaining prohibited subsidies 
(mainly subsidies in the form of investment in centives).  This is not acceptable, since the 
exemptions in the Agreement on Subsidies and Countervailing measures concerning prohibited 
subsidies do not apply to Viet Nam.  We theref ore urge Viet Nam to eliminate all prohibited 
subsidies contingent on export performance upon accession. 
Answer : 
With respect to export subsidies that are prohibite d under the SCM Agreement, Viet Nam commits:   
(i) to eliminate subsidies contingent upon localization ratios and the use of domestic over 
imported goods upon accession to the WTO;  
(ii) to eliminate subsidies in the form of direct payment from the State budget contingent upon 
export performance upon of accession to the WTO; and 
(iii) to eliminate the remaining prohibited subsidi es (mainly subsidies in the form of investment 
incentives) within seven years from the date of accession to the WTO. 
C. INTERNAL POLICIES AFFECTING FOREIGN TRADE IN GOODS 
- Industrial policy, including subsidies Question 107  
We reiterate that we would like to see Viet Nam eliminate by accession all subsidies prohibited 
by the Agreement on Subsidies and Countervailing Du ties.  We note that the exemptions found 
in Article 27 of the ASCM have either ex pired or do not apply to Viet Nam. 
Answer
: 
With respect to export subsidies that are prohibite d under the SCM Agreement, Viet Nam commits:   WT/ACC/VNM/38 
Page 52  
 
 (i) to eliminate subsidies contingent upon localization ratios and the use of domestic over 
imported goods upon accession to the WTO;  
(ii) to eliminate subsidies in the form of direct payment from the State budget contingent upon 
export performance upon of accession to the WTO; and 
(iii) to eliminate the remaining prohibited subsidi es (mainly subsidies in the form of investment 
incentives) within seven years from the date of accession to the WTO. 
Question 108  
We appreciate the answers Viet Nam provided on it s industrial policy, including subsidies.   We 
regret that the statistical information we request ed could not provided.  We hope Viet Nam can 
use the summer to work on these statistics and provide the data requested before the next 
Working Party meeting. 
Answer
: 
The collection and processing of such data take a grea t deal of time and resources.  In addition, given 
the current undeveloped statistical network of Viet  Nam, the calculation of the value of corporate 
income tax incentives granted to domestic and fore ign invested enterprises is very difficult.  
Therefore, Viet Nam would like to provide here under the general statistical information on the 
number of domestic enterprises which are granted in centives in the fields of investment. We shall 
make our best efforts to gather further informati on/data on the number of foreign invested enterprises 
which are being accorded with the incentives.      
Table 1 - The structure of investment in centives according to the types of enterprises  
granted by local authorities from 1996-2003  
Number of projects Types of Enterprises Number Percentage (%) 
State-owned Enterprises 2,584 22.8 
Limited Liabilities Companies (Co., Ltd) 3,992 35.2 
Joint-stock Companies 903 8.0 
Sole proprietor Enterprise 2,776 24.4 
Co-operatives 481 4.2 
Private Individuals, Households 598 5.3 
Overseas Vietnamese  23 0.2 
Total 11,357 100 
 
Table 2 - The number of investment projects a ccording to the areas of investment incentives  
in the period of 2001-2003  
Areas of investment incen tives Number of projects 
Areas with difficult socio-economic conditions (List B) 1,863 
Areas with specially socio-economic conditions (List C) 550 
Total 2,413 
 
Table 3 - The structure of investment fields according to the list of sectors with  
investment  incentives in the period of 2001-2003  
The investment fields Number of projects 
I. Afforestation or forest regeneration zones; planting of perennial trees on 
unused land or barren hills; land r eclamation, salt-making, cultivation of 
marine products in unexploited waters 188  WT/ACC/VNM/38 
 Page 53 
 
 
 The investment fields Number of projects 
II. Construction of infrastructure; development of public transportation; 
development of education, training, healthcare and ethnic cultures 371 
III. Production and trading of exported goods 862 
IV. Offshore fishing of marine wildlife; processing of agricultural, forestry, and 
marine products; provision of technical  services which directly cater for 
agriculture, forestry and fishing activities 1,050 
V. Scientific and technology resear ch and development; scientific and  
technology services; legal consultancy, investment consultancy; business 
consultancy, management consultancy, protection of intellectual property 
rights and technology transfer 161 
VI. Investment in construction of new production lines, investment in expansion 
of scale, investment in technology renovation, investment in environmental 
and ecological improvement and urban sanitation improvement; relocation of 
production establishments to non-urban areas; diversification of industries, trades and products 2,415 
VII. Other industries  1,449 
Total 6,496 
 
- Technical barriers to trade, standards and certification 
Question 109  
We look forward to receiving the list of goods subject to mandatory quality inspection, and the 
list of products subject to mandatory safety certification. 
Answer : 
The list of goods subject to mandatory inspection an d the list of products subject to mandatory safety 
certification are currently subject to revision.  Once published, the revised lists  will be provided to the 
Working Party. 
Question 110  
We also look forward to details of line management measures within the purview of the 
TBT Agreement to be incorporated into the sing le comprehensive list of non-tariff measures in 
the format requested in Question 157 of WT/ACC/VNM/36. 
Answer : 
Concerning line-management:  Please refer to Anne x 2 attached herewith that provides further 
information about the existing line-management regime (in which line management measures are 
classified by import licence, SPS and TBT measures). 
- Sanitary and phytosanitary measures 
Question 111  
We are pleased that Viet Nam has confirmed that  it intends to comply with the SPS Agreement 
from the date of accession. 
Answer : 
We thank you for the comment. WT/ACC/VNM/38 
Page 54  
 
 Question 112  
We would be interested in further informat ion on the ASEAN harmonisation framework for 
phytosanitary procedures. 
Answer
: 
The framework of ASEAN harmonization for phytosan itary measures are in line with rules of the 
SPS Agreement.  In the recent years, ASEAN c ountries mainly concentrated on exchanging legal 
normative documents, results of scientific studi es relating to phytosanitary area and developed 
together pest list on some major crops for conducti ng risk assessment.  In general, results obtained 
from the process of ASEAN harmonization for phytosanitary measures are still limited. 
Question 113  
We also look forward to details of line management measures within the purview of the 
SPS Agreement to be incorporated into the single  comprehensive list of non-tariff measures in 
the format requested in Question 157 of WT/ACC/VNM/36. 
Answer : 
Concerning line-management: Please refer to Anne x 2 attached herewith that provides further 
information about the existing line-management regime (in which line management measures are 
classified by import licence, SPS and TBT measures). 
Question 114  
(i) Paragraph 204 of WT/ACC/SPEC/VNM/5.  The comments on S&DT and Technical 
Assistance made by Argentina when Viet Nam required deferring the date of application of the SPS Agreement for its WTO accession should be taken into account.  
It should also be highlighted that the WT O case law has recognized that the Agreement 
doesn't force Members to conduct their own ri sk assessment, instead, they may use the 
ones conducted by other Members or intern ational organizations when technically 
viable. 
(ii) Paragraph 205 of WT/ACC/SPEC/VNM/5.  The SPS obligation is to harmonize "on the 
basis of" international standards (Codex Alim entarius, OIE, IPPC), which should not be 
confused with the ones adopted in the co ntext of a regional integration scheme (e.g. 
ASEAN). 
 Paragraph 208 of WT/ACC/SPEC/VNM/5. Please provide more information. (iii) Paragraph 209 of WT/ACC/SPEC/VNM/5.  In relation to Viet Nam's mention that its 
meat import requirements are "generally" based  on OIE standards, it should make it 
clear whether, in the remaining cases, it s standards are stricter than the ones 
internationally established or not. If so, th e obligation of the required scientific evidence 
should be taken into account, particularly in light of Viet Nam's difficulties to conduct its own assessments.  
Answer
: 
(i) Yes, the comment is correct.  WT/ACC/VNM/38 
 Page 55 
 
 
 (ii) Yes, the comment is correct. 
 Regarding GMO labelling mentioned in pa ragraph 208 of document WT/ACC/SPEC/VNM/5, 
this is a relatively new subject in Viet Nam and that no national standards for GMO products 
have been developed yet.  A Regulation on  biological safety for genetically modified 
organisms and their products is being drafted.   During the preparation of this Regulation, 
Viet Nam has consulted to a number of biological safety regulations issued by WTO 
Members.  
(iii) Viet Nam confirms that its meat import requi rements are generally based on OIE standards. In 
the remaining cases, its standards are not stricter than the ones internationally established standards. 
Question 115  Work on the TBT and SPS sections of the Workin g Party Report will be critical to sustaining 
momentum towards Viet Nam's accession.  We will be add ressing these issues in writing. 
Answer
: 
Viet Nam is willing to take note of the comments and suggestions of the Working Party's Members. 
- Trade-related investment measures  
Question 116  
We thank Viet Nam for its commitment to fully comply with the TRIMs Agreement upon 
accession. 
Answer : 
We thank for the comment. Question 117  We welcome the commitment to eliminate the ex port ratio requirement and fully agree that its 
elimination would improve the business climate in Viet Nam (paragraph 220 of 
WT/ACC/SPEC/VNM/5).  However, we would quest ion the view that compulsory export ratio 
requirements are not covered by provisions of the TRIMs Agreement.  Measures of this kind 
fall within the purview of paragraph 2(c) of the Annex to the TRIMs Agreement, and are also 
prohibited under Article XI:1 of GATT 1994. 
We ask that Viet Nam reconsider its stat ement on this issue at paragraph 220 of 
WT/ACC/SPEC/VNM/5. 
Answer
: 
In Viet Nam's view, it may be unnecessary to disc uss further about this issue as Viet Nam has 
committed to abolish the export ratio requirement upon accession to the WTO. WT/ACC/VNM/38 
Page 56  
 
 - State-trading entities 
Question 118  We note that, in Viet Nam's revised Table 1 in Annex 2 of WT/ACC/VNM/36/Add.1 on the 
Schedule of Commitments on Import Trading Ri ghts, some products will now be subject to 
State Trading Enterprises from the date of accession.  We would appreciate clarification of 
what this means and whether the enterprises invol ved have been, or will be, notified as State 
Trading Enterprises. 
Answer
: 
Almost all of the enterprises corresponding to the pr oducts subject to State Trading Enterprises stated 
in Table 1, Annex 2 of WT/ACC/ VNM/36/Add.1 have been notified in Viet Nam's Notification of 
State Trading Enterprises (WT/ACC/VNM/14 a nd WT/ACC/VNM/14/Add.1), the main exception 
being cigarettes and cigars.  Cigare ttes and cigars shall be subject to state trading from the date of 
accession (as the import prohibition shall be removed from the date of accession).  Viet Nam will provide additional notification for these items upon accession. 
Question 119  
Viet Nam states that equitization is under way among enterprises of VINACAFE, VINATEA 
and the Salt General Corporation, and we woul d appreciate information on the enterprises that 
are being equitized. 
Answer
: 
These enterprises are being re-structured to ope rate under the scheme of parent company and 
subsidiary. According to the plan, from now to 2006, the Corporations shall be equitized when all of 
their subsidiaries have been equitized.  
Concerning VINACAFE: the plan of restructuri ng and equitization of VINACAFE is now under the 
consideration and approval by the Government.  
VINATEA consisting 11 tea producing enterprises.  By  the end of 2004, eight enterprises have been 
equitized.  The remaining three shall complete their equitization in 2005.  
The ten salt companies under the Ministry of Agri culture and Rural Development:  Up to now, five 
enterprises have been equitized.  There will be furthe r five enterprises going into equitization in 2005.   
Other salt production and business enterprises under the management of local authorities shall also be 
equitized. 
Question 120  
We thank Viet Nam for its commitment that th e operation of State Trading Enterprises will 
comply with WTO provisions. 
Answer : 
Viet Nam would like to thank for this comment.  WT/ACC/VNM/38 
 Page 57 
 
 
 Question 121  
In Viet Nam's revisions to Annex 2 of Table 1 in the draft report, Viet Nam reserved certain 
products to state trading.  We would appreciate if Viet Nam could confirm that its state trading 
notification, WT/ACC/VNM/14, is consistent with  Annex 2 of Table 1 or that it will update 
WT/ACCC/VNM/14 to reflect the changes.  We  would also appreciate if Viet Nam could 
provide in HS 8-digit format the list of goods it wishes to reserve to state trading. 
We would also argue that once this reconcilia tion has occurred, the goods reserved to state 
trading should be removed from Annex 2 of Table 1 in the draft report. 
Answer : 
Please refer to Annex 1 (Table 3) at the end of this document for the consolidated list of products that 
Viet Nam reserves State Trading Enterprises.  
- Free zones, special economic areas 
Question 122  We remain concerned that subsidies in the form of incentives for domestic and foreign 
investments would only be eliminated within  nine years from the date of accession.   
Answer
: 
With respect to export subsidies that are prohibite d under the SCM Agreement, Viet Nam commits:   
(i) to eliminate subsidies contingent upon localization ratios and the use of domestic over 
imported goods upon accession to the WTO;  
(ii) to eliminate subsidies in the form of direct payment from the State budget contingent upon 
export performance upon of accession to the WTO; and 
(iii) to eliminate the remaining prohibited subsidi es (mainly subsidies in the form of investment 
incentives) within seven years from the date of accession to the WTO. 
Question 123  
Regarding Questions 254 and 255 of WT/ACC/VNM36, we understand that Viet Nam is 
considering requesting a nine-year transitional pe riod to phase out prohibited export subsidies 
in the form of investment incentives.  We do  not find this acceptable and urge Viet Nam to 
abolish all prohibited subsidies upon accession. 
Answer : 
With respect to export subsidies that are prohibite d under the SCM Agreement, Viet Nam commits:   
(i) to eliminate subsidies contingent upon localization ratios and the use of domestic over 
imported goods upon accession to the WTO;  
(ii) to eliminate subsidies in the form of direct payment from the State budget contingent upon 
export performance upon of accession to the WTO; and 
(iii) to eliminate the remaining prohibited subsidi es (mainly subsidies in the form of investment 
incentives) within seven years from the date of accession to the WTO. WT/ACC/VNM/38 
Page 58  
 
 - Agricultural policies 
Question 124  We note this section of the report will need  to be updated once Working Party members and 
Viet Nam have resolved outstanding issues in relati on to this area of work in the plurilateral 
process on agriculture. 
Answer
: 
We agree with this suggestion. 
Question 125  
We nevertheless welcome the information that Viet Nam has provided that it is committed to 
eliminating export subsidies upon accession and its preparedness to bind its agricultural export 
subsidies at zero.  We would hope that Viet Nam would therefore be in a position to make 
appropriate commitments in relation to these matters.  We would propose the following 
language to replace paragraph 264 of WT/ACC/SPEC/VNM/5: 
The representative of Viet Nam confirmed that agricultural export subsidies would be bound at 
zero in Viet Nam's Schedule of Concessions and Commitments for Goods.  He also confirmed 
that export subsidies applied to agricultural pr oducts would accordingly be eliminated by the 
date of accession.  The Working Pa rty took note of these commitments. 
Answer : 
Viet Nam commits to bind its agricultural export su bsidies at zero in its Schedule of Concessions and 
Commitments on Goods.  Viet Nam ha s also committed previously that export subsidies applied to 
agricultural products would be eliminated upon accession.  These commitments, however, are without 
prejudice to Viet Nam's rights and obligations arising from WTO's existing and future rules. 
Question 126  
Paragraph 264: The following wording is proposed:   "The Representative of Viet Nam agreed that, upon Viet Nam's accession, his country 
would bind its agricultural export subsidies at zero in its Schedule of Concessions and 
Commitments on Goods, and not maintain or apply any export subsidies for 
agricultural products, without prejudice to WTO existing rules." 
Schedules of commitments for export subsidies would need to be adapted appropriately.  
Answer
: 
Viet Nam commits to bind its agricultural export su bsidies at zero in its Schedule of Concessions and 
Commitments on Goods.  Viet Nam ha s also committed previously that export subsidies applied to 
agricultural products would be eliminated upon accession.  These commitments, however, are without 
prejudice to Viet Nam's rights and obligations arising from WTO's existing and future rules.  WT/ACC/VNM/38 
 Page 59 
 
 
 Question 127  
We reiterate our view that Viet Nam's VAT ex emption for domestic farm production, if not 
extended to imports, remains inconsistent with Article III of the GATT 1994. 
Answer : 
The VAT law of Viet Nam provides that domestic  unprocessed and semi-process ed agri-products are 
not subject to VAT.  This provision results from th e fact that a lot of small scale households doing 
farm work sell their products without invoices and the administrative capacity of Viet Nam in this 
area is still weak and incapable of the inclusion of these products in to VAT scope.  This provision is 
not to discriminate between domestics products a nd imports which would be  inconsistent with 
Article III of GATT 1994.  In addition, unprocessed a nd semi-processed agri-products will be subject 
to VAT on the whole values in the next phase of VAT taxation.  Thus, the prod ucts are actually taxed 
by VAT. 
Viet Nam highly appreciates the WTO members' unders tanding on its current difficulties in including 
this group of products into VAT scope.  Viet Nam w ould like to receive technical assistance from the 
Working Party in this issue. 
V. TRADE-RELATED INTELLECTUAL PROPERTY REGIME - GENERAL Question 128  We look forward to reviewing Viet Nam's draft Intellectual Property Law. 
Answer
: 
An unofficial English translation of the Draft Intellectual Property Law (the fourth Draft) was 
provided to the Working Party prior to the Informal Meeting on 20 May 2005 and made public on the 
website of the National Office of Intellectual Pr operty of Viet Nam (http://www.noip.gov.vn).  We 
appreciate your goodwill in reviewing and giving  comments on it.  Any such comments would be 
taken into thorough and serious considera tion in order to complete the Draft. 
- Copyright and related rights 
Question 129  
Concerning the conditions for granting compul sory licenses, you mention in your answer to 
Question relating to paragraph 324 of WT/ACC/SPEC/VNM/5, that Section 51 of Decree No. 63/CP of 24 October 1996 would be amended to include provisions on conditions for granting compulsory licenses in  compliance with Articles 31(f), (k), and (l) of the TRIPS 
Agreement.  
- What is the state of play of the amendment of Section 51 of Decree No. 63/CP of 
24 October 1996? What progress has been made in  the legislative process since the last 
meeting of the Working Party? 
- We would like to ask Viet Nam to make an English copy of the draft amendment 
available to the Working Party. WT/ACC/VNM/38 
Page 60  
 
 Answer
: 
The plan to amend Section 51 of Decree No. 63/CP of 24 October 1996 was cancelled in 
November 2004 (as the National Assembly officially  included the Intellectual Property Law in the 
Legislative Plan of 2005).  Provisions on conditio ns for granting compulsory licenses in compliance 
with Articles 31(f), (k), and (l) of the TRIPS Agreement have been introduced into the Draft 
Intellectual Property Law (the fourth Draft - Ar ticle 187).  The Draft Law was debated by the 
National Assembly in May 20 05 and is expected to be passed in November 2005. 
An unofficial English translation of the forth Dr aft Intellectual Property Law has been submitted to 
the Working Party prior to the Informal Meeting on 20 May 2005.  
- Requirements on undisclosed information,  including trade secrets and test data 
Question 130  
In WT/ACC/VNM/36, in response to Question 276 concerning the requirements on undisclosed 
information, including trade secrets and test da ta, you mention that the Law on Competition 
(Law No. 27/2004/QH11) passed by the National Assembly on 3 December 2004 contains provisions for the protection against industrial pr operty related unfair competition (Article 39) 
and the protection of undisclosed tests and other da ta (Article 41.4) in its Chapter 5 - Unfair 
Competitive Acts and that consequently, the plan to issue a Circular guiding the implementation of the Decree No. 54/2000/ND-CP has been cancelled.  
In your answer to  Question relating to paragraph 335 of WT/ACC/SPEC/VNM/5, you mention 
that the Circular guiding the implementation of the Decree No. 54/2000/ND-CP was foreseeing 
protection of undisclosed tests and data submi tted for marketing approval of pharmaceutical 
and agricultural chemical products and incl uded the principles of non-disclosure and non-
reliance. 
- Can you confirm that the relevant provisions of the Law on Competition provide for 
protection of undisclosed tests and data  submitted for marketing approval of 
pharmaceutical and agricultural chemical pr oducts and include the principles of non-
disclosure and non-reliance?  
- We would like to ask Viet Nam to make an English copy of the relevant provisions of the 
Law on Competition available to the Working Party. 
Answer
: 
1.  The Law on Competition (Chapter III - Unfair Competition Acts) contains provisions on 
prohibited acts of unfair competition, includi ng acts of infringing business secrets (accessing, 
acquiring, using without authorization of ow ners of business secrets, including using for 
marketing approval of product, test data and other undisclosed  data and other data submitted 
for marketing approval of products. However, such provisions just govern the relationship 
between competitors. More detailed and comple te provisions, including obligations of 
regulatory agencies of marketing approval, have b een introduced into the draft of Intellectual 
Property Law (the fourth Draft - Article 174).   
 An unofficial English translation of the fourth Draft Intellectual Property Law has been 
furnished to the Working Party prior to the Informal Meeting on 20 May 2005.   WT/ACC/VNM/38 
 Page 61 
 
 
 2.  Viet Nam would like to provide an unoffi cial English translation of the business secret - 
related provisions of the Law on Competition (A rticle 41:  Infringement of business secrets) 
to the Working Party: 
"Article 41: Infringement of business secrets: Enterprises are prohibited from carrying-out the following acts: 
- Accessing or acquiring information on business secrets by 
taking acts against secret-keeping measures of lawful owners of such business secrets;  
- Disclosing or using information on business secrets without 
authorization of owners of such business secrets;  
- Breaching secret-keeping contracts or deceiving or abusing 
the trust of persons in charge of secret-keeping, to access, acquire or disclose information on such business secrets;  
- Accessing or acquiring information on business secrets of 
others, when the later, as required by law, submit such 
business secrets under business-related procedures, such as 
procedures for marketing appr oval of products, or by taking 
acts against secret-keeping measures of State agencies; or using such information for business purposes, or for obtaining business-related licenses or marketing approval of products." 
VI. POLICIES AFFECTING TRADE IN SERVICES Question 131  Regarding Question 283 of WT/ACC/VNM/36, we welc ome the statement of Viet Nam that "the 
establishment of a representative office is not com pulsory to investors". We would like to have 
this statement inserted in the Working Party Report. 
Answer
: 
As indicated in our latest Offer on Trade in Services to the WTO (WT/ACC/SPEC/VNM/2/Rev.4), 
representative offices of foreign services suppliers ar e permitted to be established in Viet Nam in 
order to seek, promote trade and tourism opportuniti es.  This is not a condition imposed on foreign 
services suppliers in providing services  in Viet Nam but is included in our Offer just for the meaning 
of clarification.  In our opinion, therefore, it ma y not be necessary to inser t sentence in the Working 
Party Report.  
Question 132  
We welcome the replies of Viet Nam to Questio ns 284 to 286.  We would like to have them 
inserted in the Working Party Report. 
Answer : 
Regarding replies to Question 286, this is just th e extracted content of Decree No. 87/2003/ND-CP of 
the Government dated 22 July 2003 on Practice by Foreign Lawyer Organizations and Foreign 
Lawyers in Viet Nam.   This Decree has been provided to the WT O Secretariat to circulate to all WTO 
Members.  WT/ACC/VNM/38 
Page 62  
 
 We propose that the section on services be revised af ter the conclusion of the bilateral market access 
negotiations on services. 
Question 133  
Regarding Question 286 of WT/ACC/VNM/36, could Viet Nam explain the meaning of 
"goodwill towards the State of Viet Nam"? 
Answer
: 
"Goodwill towards the State of Viet Na m" could be understood as follows: 
- Not to propagate against Viet Nam; not to destroy the solidarity of the Vietnamese ethnic 
community; 
- Not to propagate and excite aggressive war; not to arouse the hatred among the peoples and 
nations in the world; not to excite violence; not to communicated reactionary thought and 
opinions; 
- Not to leak national, military, security, and other secrets provided for in the laws and 
regulations; 
- Not to distort historic truth; to hurt reputation of the nation, national heroes, etc . 
Question 134  We do not agree with Viet Nam's reply to Question 289 of WT/ACC/VNM/36. The Working 
Party Draft Report needs to clarify Viet Na m's commitments and explain how trade will 
develop after accession.  Hence we would insist on the reference to economic needs test to be 
removed. 
Answer
: 
We propose that the section on services be revised af ter the conclusion of the bilateral market access 
negotiations on services. 
Question 135  
We would like to stress that the fact that GATS  Article XV negotiations are ongoing is not an 
excuse for not providing info on subsidies related  to trade in services, namely when a country 
has scheduled National Treatment limitations on subsidies.  Viet Nam is requested to provide 
information on subsidies related to trade in services,  based on the definition that they have used 
for scheduling those National Treatment limitations. 
Answer : 
Viet Nam would like to take note of these comments. As there have been no specific criteria to define 
what types of subsidies to be provided to th e WTO Members (as opposed to the goods area where 
there have been well-defined format for notifi cation), we do need technical assistance from WTO 
Members in this regard. 
Question 136  
We welcome the replies of Viet Nam to Questions 291 to 293 and 296.  We would like to have 
them inserted in the Working Party Report.  WT/ACC/VNM/38 
 Page 63 
 
 
 Answer : 
We propose that the section on services be revised af ter the conclusion of the bilateral market access 
negotiations on services. WT/ACC/VNM/38 
Page 64  
 
 ANNEX 1 
Commitments On Trading Rights
 
1. Viet Nam confirms that wholly Vietnamese-i nvested enterprises have been granted full right 
to trade since 1 January 2002. 
2.  Not later than 1 January 2007, all foreign i nvested capital enterprises sh all be allowed to be 
importers of record and shall: 
- be entitled to import and export all kinds of goods, except for those subject to  state 
trading enterprises (as listed in the attached Table 3) and th e restrictions listed in the 
attached Tables 1 and 2; and 
- shall register their business lines with the relevant State's registration agencies. 
3. Foreign individuals shall be granted similar trading rights as Vietnamese individuals. 
4. The trading rights referred herein shall not automatically grant the importers the right to 
distribute goods in Viet Nam. The distribution of goods and the provision of distribution services shall be subject to Viet Nam's Speci fic Schedule of Commitments in Services. 
5. The trading rights referred herein shall in no case affect the rights of the Government of 
Viet Nam to: 
- adopt or enforce requirements fo r customs and fiscal purposes; and 
- adopt or enforce regulations with respect to the importation, exportation, re-importation, 
re-exportation, and transit of goods in consis tence with relevant provisions of the WTO 
Agreements and with Viet Nam's commitmen ts upon accession to the WTO, such as those 
relating to import licensing, state trading, TBT and SPS.    WT/ACC/VNM/38 
 Page 65 
 
 
 Table 1:  Schedule of Commitments On Import Trading Rights  
Description HS 
No. Pharmaceutical products Schedule Rationale 
3003 Medicaments nesoi of mixtures, not dosage etc.  2009 
3004 Medicaments nesoi, mixed or not, in dosage etc.  2009 
3006 Pharmaceutical goods in note 4 to chapter 30 
Cinematographic film 2009 
3706 Motion-picture film, exposed and developed 2009 
  Unused postage, printed cards, calendars  
4907 Unused postage, check form s, banknotes, stock, etc. 2009 
4909 Printed or illustrated post cards, greeting cards, etc. 2009 
4910 Calendars, calendar blocks of any kind, printed 2009 
4911 
  Printed matter nesoi, incl print pictures & photos 
Industrial printers 2009 
8442 Machinery etc nesoi for type-setting, making printing 
plates etc. 2009 
8443 
  Print machinery excluding ink-jet printers (HS 
84435100), machinery for used ancillary to printing nesoi.  
Other machinery 2009 
8525 Transmission apparatus fo r radio-telephony etc; TV 
camera & other video camera recorders excluding mobile 
phones (HS 852520) and consumer cameras (HS 
85254010) 2009 
8526 Radar apparatus, radio naviga tional aid apparatus & radio 
remote control apparatus 2009 Viet Nam needs time to draft 
transparent and non-discriminatory 
criteria 
 
Notes: For the purpose of this Table, schedule  starts from 1 January of the specified year. WT/ACC/VNM/38 
Page 66  
 
 Table 2:  Schedule of Commitments On Export Trading Rights
 
Description HS 
No. Cereals Schedule Rationale 
1006 Rice 2011 Viet Nam needs time to draft transparent and 
non-discriminatory criteria  
 
Notes: For the purpose of this Table:  Schedule  starts from 1 January of the specified year.  WT/ACC/VNM/38 
 Page 67 
 
 
 Table 3:  List of Goods Subject to State Trading Enterprises  
HS Description 
2402 Cigars, cheroots, cigarillos and cigarettes 
2403 Other manufactured tobacco and manufactured tobacco 
2709 Crude oil from petroleum and bituminous minerals 
2710 Oil (not crude) from petrol & bitum mineral etc. 
4901 Books, brochures & similar printed matter 
4902 Newspapers, journals & periodicals 
4903 Children's picture, drawing or colouring books 
8524 Records, tapes and other recorded medi a for sound or ... excluding 852410, 852431, 852432, 85243910, 
85244000, 852491, 85249920 
8802 Aircraft 
8803 Parts of goods of heading 8801 or 8802 
 WT/ACC/VNM/38 
Page 68  
 
 ANNEX 2 
Current List of Imported Goods  Subject to Line Management
 
(issued in conjunction with Decision No. 46/2001/QD-TTg of the Prime Minister dated 4 April 2001 
on the management of exports and imports in the 2001-2005 period)  
Note: All line-management measures shall not limit the importation of  the products involved in terms 
of value or quantity. 
I. LIST OF GOODS SUBJECT THE LINE MANAGEMENT OF THE MINISTRY OF 
AGRICULTURE AND RURAL DEVELOPMENT 
Automatic import licence 
No. Goods HS WTO Justification 
1. Plants and animal gene sources; micro-organisms for scientific and 
technical research and exchange purposes N.A GATT Article XX.b 
 
TBT/SPS requirement 
No. Goods HS WTO Justification 
1. Veterinary medicines and materials for making 
veterinary medicines ex 3004, 30062000 
2. Biological products fo r veterinary use N.A 
3. Pesticides and materials for making pesticides ex 3808 
4. Plants and animal strains, and various types of insects ex 0106, 06, 07, 08, 09, 12 
5. Animal feeds and materials for producing animal feeds ex 23 
6. Fertilisers newly used in Viet Nam  3101, 3102, 3103, 3104, 
3105 TBT/SPS Agreement 
 
 
II. LIST OF GOODS SUBJECT TO LINE MANAGEMENT OF THE MINISTRY OF 
FISHERIES (FOR SPS PURPOSES) 
1. The Ministry of Fisheries is to carry out its line management by issuing the following lists of 
goods:  
- The list of aquatic breeds allowed to be imported ordinarily. 
- The list of feeds for aquaculture farmi ng and materials for producing feeds for 
aquaculture farming allowed to be imported ordinarily. 
- The list of drugs, chemicals and materials fo r producing drugs and chemicals used in 
aquaculture farming allowed to be imported ordinarily. 
2. Any kind of breeds, feeds and materials for producing feeds, drugs, chemicals and materials 
for producing drugs and chemicals not contained in  the list of ordinary imports are allowed to 
be imported into Viet Nam after obtaining testing certificates issued by the Ministry of Fisheries.  After the testing period, the Ministry of Fisheries is to decide whether or not to add 
the items in question to the list of ordinary im ports.  If the Ministry of Fisheries has added 
certain goods to the list of ordinary impor ts, these goods are allowed to be imported upon 
demand, without any quantitative limitations and no import licences shall be required. 
III. LIST OF GOODS SUBJECT TO LINE MANAGEMENT OF THE STATE BANK (i.e. 
THE CENTRAL BANK) OF VIET NAM 
Automatic import licence  WT/ACC/VNM/38 
 Page 69 
 
 
 No. Goods HS WTO Justification 
1. Specialized cars for carrying money ex 8704 
2. Multi-functional devices for co unting, classifying, bundling and 
shredding money ex 8472 
3. Treasury doors ex 7308 
4. Papers for printing money ex 4802 
5. Inks for printing money ex 3215 
6. Machines for printing hard-to -forge money, payment vouchers, 
certificates and other valuable pape rs to be issued and managed by 
the banking industry N.A 
7. Money printers (technical spec ifications announced by the State 
Bank) ex 8443 
8. Machines for molding and pressing metal m oney (technical 
specifications announced by the State Bank) ex 8462 Government procurement and 
monetary security1. 
 
Management principles: 
The State Bank of Viet Nam will designate eligible enterprises to import items indicated in this list, 
and be responsible for managing their use properly. 
IV. LIST OF GOODS SUBJECT TO LINE MANAGEMENT OF THE GENERAL 
DEPARTMENT OF POSTS AND TELECOMMUNICATIONS2 
Automatic import licence 
No. Goods HS WTO Justification 
1. Postage stamps, stamp publications  and items of postage stamps 49070020 
9704 Natural monopoly 
2. Radio transceivers of 9 KHz- 400 KHz frequency band and 60 mW or 
more capacity ex 8525 GATT Article 
XXI.b.(ii) 
3. Radar equipment, radio support e quipment and radio remote control 
equipment  ex 8526 GATT Article 
XXI.b.(ii) 
 
                                                      
1 According to GATS - Annex on Financial Servi ces, paragraph 1.b(i), importation for the activities 
solely conducted by the State Bank in pursuit of monetary security policy, wh ich are not considered as services 
governed by GATS. 
2 The formerly "General Department of Posts and Telecommunications" is now the "Ministry of Posts 
and Telecommunications". WT/ACC/VNM/38 
Page 70  
 
 TBT requirement/Technical standards conformity test 
No. Goods HS WTO 
Justification 
1. Large and small capacity switchboards, net accessing equipment using V 5.1 
and V 5.2 interface 851730 
2. PABX switchboards 851730 
3. Transmission equipment ex 8525 
4. Optic-fibre cables 854470 
5. Metal communica tions cables 7413, 7614 
6. Wireless telephony equipment ex 8517 
7. Terminals for connecting with  PSTN and ISDN networks ex 8471 
ex 8525 
11. Telex machines 8517 
12. Fax machines 8517 
13. Pagers 8527 
14. Mobile phones 8525 
15. Low speed picture telephones 8525 TBT Agreement 
 
V. LIST OF GOODS SUBJECT TO LINE MANAGEMENT OF THE MINISTRY OF 
CULTURE AND INFORMATION  
Automatic import licence 
No. Goods HS WTO Justification 
1. Publications of different types (books , newspapers, magazine s, pictures, photos, 
calendars etc.) 4901 
4902 
2. Cinematic works and other audio-visu al products recorded on any materials 8524 
3. Specialized print proof making systems and type setting systems used in printing 
industry (specialized scanne rs, colour analysers, film  developing and enlarging 
machines, sample making devices) 8442 
4. Offset printers, flexo printers, bronze dr um printers, heat processing printers, ink 
pad printers and colour laser printers 8443 GATT Article XX.a 
 
 
VI. LIST OF GOODS SUBJECT TO LINE MANAGEMENT OF THE MINISTRY OF 
HEALTH 
Automatic import licence 
No. Goods HS WTO Justification 
1 Addictive substances, sedative  substances, pre-substances 
(including final medicines). 3004 
2 Finally tested medicines for human beings, which have not 
been registered 3004 
3 Vaccines and vaccination-related biological products 3002 
4 Medical equipment which may directly affect the health of 
human beings ex 9019, ex 9020 GATT Article XX.b 
  WT/ACC/VNM/38 
 Page 71 
 
 
 TBT requirement/Technical standards conformity 
No. Goods HS WTO Justification 
1. Finally tested medicines for human  beings, which have been already 
registered 3004 
2. Materials for producing medici nes, pharmaceutical materials, 
excipients, capsules and packaging which are in direct contact with 
medicines 19059060, 
ex 29, 9602  
3. Cosmetics which may directly aff ect the health of  human beings 3304 
4. Chemicals and products for killing insects and for sterilisation to be 
used for household and health purposes 3004, 3804 TBT Agreement 
 
VII. LIST OF GOODS SUBJECT TO SPE CIAL MANAGEMENT OF THE MINISTRY OF 
INDUSTRY  
Automatic import licence3 
No. Goods HS WTO Justification 
1. Toxic chemicals and products containing to xic chemicals ex 28, ex 29 GATT Article XX.b 
 
TBT requirement 
No. Goods HS WTO Justification 
1. Sodium hydroxide (liquid) 28151200 
2. Hydrochloric acid 2806 
3. Technical sulphuric acid 2807 
4. Pure sulphuric acid 2807 
5. Technical phosphoric acid 2809 
6. Mono-alum from aluminium hydroxide 2833 TBT Agreement 
 
 
__________ 
 
 
                                                      
3 The list of toxic chemicals subject to import prohibition will be issued by the Ministry of Industry. 
Other toxic chemicals and products containing toxic chemicals will be subject to automatic import licensing.