RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/ACC/VNM/14/Rev.1 
6 October 2006 
 (06-4814) 
Working Party on the 
Accession of Viet Nam Original:   English 
 
 
 
ACCESSION OF VIET NAM 
 
Notification on State Trading Enterprises  
 
Revision  
  
 The following submission, dated 5 October 2006, is being circulated at the request of the Delegation of the Socialist Republic of Viet Nam. 
 
 
_______________ 
  
  WT/ACC/VNM/14/Rev.1 
Page 2 List of State Trading Enterprises of Viet Nam  
 
No Products HS Name of enterprise Functions of enterprise 
1 Crude oil 27090010 Viet Nam Oil and Gas Corporation (PETROV IETNAM) Searching, exploring, exploiting, processing and 
dealing in oil and gas products, providing oil and gas related services. 
2 Refined petrol and 
gasoline 271011 
271019 
271099 -  PETROLIMEX 
-  PETEC 
-  PETECHIM -  SAIGON PETRO 
-  PETROMEKONG 
-  Petroleum Processing and Trading Company; -  MARINESUPPLY 
-  Military Petroleum and Gas Corporation  
-  Dong Thap Petroleum Import-Export Company  -  Phu Yen General Supplies Company Authorised importers of gasoline and petrol for 
supplying to domestic consumption.  
  
3 Aircraft spare parts 
and aviation 
equipment, facility 8802, 8803 Airlines Import Export Corporation (AIRIMEX) -  Ensuring the supply of aircraft, equipment, 
facility and materials used in aviation;  
-  Sole importer of aircraft and aviation 
materials, spare parts. 
4 Film  8524 Viet Nam Films Import/Export and Distribution Company 
(FAFILM VIET NAM) Sole importer and wholesale distributor of feature 
films (video tape, VCD).  
5 Newspapers 4902 Books and Newspapers Import Export Company 
(XUNHASABA) Sole importer and wholesale distributor of 
newspapers. 
6.  Cigarettes and cigars 2402.10.00 
2402.20.10 
2402.20.90 2402.90.10 
2402.90.20 
2403.10.11 2403.10.19 
2403.91.00 
2403.99.10 2403.99.40 
2403.99.50 
2403.99.60 2403.99.90 Viet Nam National Tobacco Corporation (VINATABA) Sole importer of cigarettes and cigars  WT/ACC/VNM/14/Rev.1 
 Page 3 
 
 
  1.  STATE TRADING ENTERPRISES ON:  CRUDE OIL (EXPORT) 
I. Enumeration of State Trading Enterprises 
A. Identification of State trading enterprises  
 Viet Nam Oil and Gas Corporation (PETROVIETNAM) 
 Address: 22 Ngo Quyen, Hanoi, Viet Nam 
 Tel:  84 4 8252526 
 Fax:  84 4 8265942 
B. Description of products affected (includi ng tariff item number(s) encompassed in product 
description)  
 Crude oil (HS 27090010) II. Reason and Purpose 
A. Reason for establishing 
 
PETROVIETNAM was established to conduct research , exploration, exploitation, processing, 
stock, transportation of oil and gas and providi ng oil and gas related services, exportation and 
importation of petroleum materials, equipment, crude oil, petroleum products, distribution of 
petroleum products, carrying out other trading activities permitted by the law and performing 
other tasks assigned by the State. 
B. Summary of legal basis for granting the releva nt exclusive or special rights or privileges, 
including legal provisions and summary of statutory or constitutional powers  
- Petroleum Law ratified by Vietnamese National Assembly on 7 July 1993; 
- Decree No. 84/CP dated 17 December 1996 of the Government on detailed 
stipulation of implementati on of Petroleum Law; and 
- Decrees No. 37/CP dated 29 May 1995 Decree No. 38/CP dated 30 May 1995 of the 
Government. 
III. Description of the Functioning of the State Trading Enterprise 
A. Summary statement providing overview of operations of the State trading enterprise  
PETROVIETNAM operates in the field of doing researches, exploration, exploitation, 
processing, stock, transportation of oil and g as and providing oil and gas related services, 
exportation of crude oil allocated to Viet namese side and on behalf of tenders. 
B. Specification of exclusive or special right s or privileges enjoyed by the State trading 
enterprise  
PETROVIETNAM has the exclusive right of exporta tion of crude oil (which is a result from 
the exclusive rights in exploration and exploitation).  WT/ACC/VNM/14/Rev.1 
Page 4  
 
  C. Type of entities other than the State trad ing enterprise that are allowed to engage in 
exportation and conditions  for participation  
Foreign contractors have the right to export cr ude oil that have been allocated to them 
according to the production sharing contracts.  
D. How export levels are established by the State trading enterprise  
In accordance with the approved production and ex portation plan. 
E. How export prices are determined  
 Export prices are determined on the basis of market price. F. How the resale prices of imported products are determined 
 
 Not applicable. 
G. Whether long-term contracts are negotiated by the State trading enterprise.  Whether the State 
trading enterprise is used to fulfil contractua l obligations entered into by the Government  
The enterprise is allowed to negotiate long-term  contracts.  However, the Government has not 
used PETROVIETNAM to fulfil its contractual obligations. 
H. Brief description of market structure  
 Information not available. 
IV. Statistical Information 
 Viet Nam's crude oil export over the past three years1: 
- 2003:  17.14 million tons; 
- 2004:  19.50 million tons; and 
- 2005:  17.97 million tons. 
V. Reason why no foreign trade has taken place 
 Not applicable. 
VI. Additional Information 
No. 
                                                      
 1 Source: The General Statistics Office of Vietnam ( www.gso.gov.vn ). The figure in 2005 is an 
estimate.  WT/ACC/VNM/14/Rev.1 
 Page 5 
 
 
  2.  STATE TRADING ENTERPRISES ON:  PETROLEUM AND GASOLINE (IMPORT) 
I. Enumeration of State Trading Enterprises 
A. Identification of State trading enterprises  
 Viet Nam National Petroleum Corporation (PETROLIMEX) 
 Address:  1 Kham Thien, Hanoi, Viet Nam 
 Tel:   84 4 8512603/512898 
 Fax:   84 4 8519203  Telex:   411241 
B. Description of products affected (includi ng tariff item number(s) encompassed in product 
description)  
- Mogas, Diesel, Kerosene, Mazut (HS 271011, HS 271019, HS 271099) 
II. Reason and Purpose 
A. Reason or purpose for establishing and/or maintaining State trading enterprise  
PETROLIMEX is established to ensure the stable  and efficient supply of fuels for production 
and consumption in order to meet socio-economic development objectives. 
Petroleum products, like other fuels, are consider ed as strategic commodities.  Therefore, the 
Government needs to regulate the sector to en sure energy security as well as efficient prices 
for consumers.  As there is almost no domestic re finery capacity in Viet Nam, an efficient and 
secured import mechanism is required to be established through the operation of the State-
trading enterprises. 
B. Summary of legal basis for granting the releva nt exclusive or special rights or privileges, 
including legal provisions and summary of statutory or constitutional powers  
Decision No. 187/2003/QD-TTg dated 15 September of the Prime Minister promulgating the 
Regulation on the management of petroleum and gasoline trade. 
III. Description of the Functioning of the State Trading Enterprise 
A. Summary statement providing overview of operations of the State trading enterprise  
PETROLIMEX's function is to import petrol a nd gasoline for domestic consumption, supply 
to foreign liners operating in Viet Nam's waters, provide for i ndustrial zones, export 
processing zones in Viet Nam and re-export.  PETROLIMEX is also a distributor of petroleum products through its wholesale, re tail and agent network in Viet Nam.  
Petrolimex's activities cover direct importation, domestic trading in the form of wholesaling, 
retailing and selling through a system of agents , re-exportation and transhipment.  It has a 
system of nearly 1,500 retail stations and a ch ain of 6,000 agents nationwide.  Two joint 
ventures have been set up by Petrolimex in the production and blending of lubricants (BP-
Petco, a joint venture with BP) and the produc tion of detergent (PTN, a joint venture with 
Sojitz and Tayca groups of Japan). WT/ACC/VNM/14/Rev.1 
Page 6  
 
  B. Specification of exclusive or special right s or privileges enjoyed by the State trading 
enterprise  
PETROLIMEX is one of several2 authorized importers and re-exporters of petrol and 
gasoline.  The Corporation accounts for about 60 per cent of annual import volume of petrol and gasoline. 
 C. Type of entities other than the State trad ing enterprise that are allowed to engage in 
importation/exportation and c onditions for participation  
 In addition to PETROLIMEX, the following companies also act as importer and distributor of 
petrol and gasoline: 
 -  PETEC; 
 -  PETECHIM; 
 -  SAIGON PETRO;  -  PETROMEKONG;  -  Petroleum Processing and Trading Company;  -  MARINESUPPLY; 
 -  Military Petroleum and Gas Corporation; 
 -  Dong Thap Petroleum Import-Export Company;  -  Phu Yen General Supplies Company. 
Note:  The list of the above enterprises ar e subject to changes according to the annual 
petroleum import administration mechanism. 
D. How import levels are established by the State trading enterprise
 
- Based on the previous year's demand; 
- Based on the overall demand of the domestic market; and 
- Based on commercial considerations. 
E. How export prices are determined  
 Not applicable.  
F. How the resale prices of imported products are determined  
Resale price is determined by enterprises b ased on a guiding price stipulated by the 
Government. 
G. Whether long-term contracts are negotiated by the State trading enterprise. Whether the State 
trading enterprise is used to fulfil contractua l obligations entered into by the Government  
The Corporation is allowed to negotiate long- term contracts.  The Government has used 
PETROLIMEX to fulfil its contractual obligations. 
H. Brief description of market structure  
 The Corporation accounts for approximately 60 per cent market share in Viet Nam. 
                                                      
2 The number may change from to time in accordance with the criteri a for doing business in petroleum 
products, as defined in Decision No. 187/2003/QD-TTg.   WT/ACC/VNM/14/Rev.1 
 Page 7 
 
 
  IV. Statistical Information 
 No. 
V. Reason why no foreign trade has taken place 
 Not applicable. 
VI. Additional Information 
No. WT/ACC/VNM/14/Rev.1 
Page 8  
 
  3.  STATE TRADING ENTERPRISES ON:  AIRCRAFT AND PARTS OF AERO-
PLANES OR HELICOPTERS (IMPORT) 
I. Enumeration of State Trading Enterprises 
A. Identification of State trading enterprises
 
 Name:  Airlines Import-Export Company (AIRIMEX) 
 Address:  100 Nguyen Van Cu, Gialam, Hanoi, Viet Nam 
 Tel:  84 4 8271351/8271939  Fax:  84 4 8271925 
B. Description of products affected (includi ng tariff item number(s) encompassed in product 
description)  
 1.  Aircraft (HS 8802); and 
 2.  Parts of aero-planes or helicopters (HS 8803). 
II. Reason and Purpose 
A. Reason or purpose for establishing and/or maintaining State trading enterprise  
Airplanes, spare parts of airplanes and relate d equipment are products which are required to 
meet highly exact and specialized standards, and not readily available or popular.  Therefore, 
trading in these products has to be handled by an enterprise with relevant expertise so as to 
meet the necessary quality and technical requirements. 
B. Summary of legal basis for granting the releva nt exclusive or special rights or privileges, 
including legal provisions and summary of statutory or constitutional powers  
AIRIMEX was established under the Deci sion No. 197/TCHK dated 21 March 1989 of 
Viet Nam Civil Aviation General Department. 
The company has recently been equitized and transformed into the General Aviation Import 
Export Joint Stock Company, t hough its major functions are largely unchanged, in accordance 
with Decision No. 3892/QD - BGTVT dated 17 October 2005 by the Ministry of 
Transportation.  
III. Description of the Functioning of the State Trading Enterprise 
A. Summary statement providing overview of operations of the State trading enterprise  
Following are scope of activities of AIRIMEX: - Import and export of airplanes, equipment, materials, spare-parts for aviation industry 
and other materials; and 
- Providing cargo forwarding services, air-ticket booking and ticket agency services. 
B. Specification of exclusive or special right s or privileges enjoyed by the State trading 
enterprise  
The Company is the exclusive importer and distributor of spare parts of airplanes and most of 
other equipment in the aviation industry.  WT/ACC/VNM/14/Rev.1 
 Page 9 
 
 
  C. Type of entities other than the State trad ing enterprise that are allowed to engage in 
importation/exportation and c onditions for participation  
Other organisations are only permitted to export and import similar products upon the 
approval and assignment of Viet Nam Civil Avia tion General Department or the Government. 
D. How import/export levels are established by the State trading enterprise  
Based on the consumption demand for products in the aviation industry. 
E. How export prices are determined  
 Not applicable. F. How the resale prices of imported products are determined
  
 Based on commercial consideration. 
G. Whether long-term contracts are negotiated by the State trading enterprise.  Whether the State  
trading enterprise is used to fulfil contractua l obligations entered into by the Government  
 The Corporation is allowed to ne gotiate and sign long-term contract. 
H. Brief description of market structure  
AIRIMEX covers 100 per cent of domestic market share of aviation specialised materials and 
equipment. 
IV. Statistical Information 
Year Total import turnover 
(US$) 
2000 10,181,685 
2001 20,847,536 
2002 26,405,911 
   
V. Reason why no foreign trade has taken place 
 There are no exporting activities.  Viet Nam has virtually no aviation industry.  Therefore, 
there is no product for export.   
VI. Additional Information 
 Not available. WT/ACC/VNM/14/Rev.1 
Page 10  
 
  4.  STATE TRADING ENTERPRISES ON:  VIDEO TAPES AND VIDEO COMPACT 
DISCS OF FEATURE FILMS (IMPORT) 
I. Enumeration of State Trading Enterprises 
A. Identification of State trading enterprises
 
 Name: Viet Nam Film Import Export and Distribution Company (FAFILM 
VIET NAM) 
 Address:  19 Nguyen Trai, Thanh Xuan District, Hanoi, Viet Nam  Tel:  84 4 8533374/8534566  Fax:  84 4 8531611 
B. Description of products affected (includi ng tariff item number(s) encompassed in product 
description)  
Video tapes and video compact discs of all kinds (HS 8524). 
II. Reason and Purpose 
A. Reason or purpose for establishing and/or maintaining State trading enterprise  
The Company was established under the De cision on establishment No. 801/QD dated 
24 June 1993 of Ministry of Culture and Info rmation to distribute products of domestic film 
producers, to import feature films of all kinds for supply to all localities in the country. 
 The reason for maintaining State trading enterprise: 
- Culture, including cinematography, is a very sensitive aspect that requires 
administration to maintain national identities. 
B. Summary of legal basis for granting the releva nt exclusive or special rights or privileges, 
including legal provisions and summary of statutory or constitutional powers  
- Decree No.48/CP dated 17 July 1995 of the Government; and 
- Decision No. 474/TC-QD dated 20 April 1992. 
 Legal basis for granting the exclusive rights of enterprise: 
- Under Article 15, Decree No. 48/CP date d 17 July 1995 of the Government, the 
importation of feature films for commercial purpose in any form is carried out by 
FAFILM Viet Nam; 
- According to Decree No. 26/CP date d 3 August 2000 of the Government and 
Article 3, Circular No. 28/2000/TT-BVHTT date d 31 October 2000 of the Ministry of 
Culture and Information, FAFILM has the exclusive right to import video tape, video compact disc of feature films of all kinds.  WT/ACC/VNM/14/Rev.1 
 Page 11 
 
 
  III. Description of the Functioning of the State Trading Enterprise 
A. Summary statement providing overview of operations of the State trading enterprise  
The Company has trading capital of VND 41,773 million, of which budgeted capital and self-
financed capital is VND 23,093 million. 
Functions of the Company: import and export video tapes and video compact discs of all 
kinds to supply for cinema and home ente rtainment network.  Imported items can be 
distributed by FAFILM or sold to other distributors that are belonging to different forms of ownership. 
B. Specification of exclusive or special right s or privileges enjoyed by the State trading 
enterprise  
Exclusive importer and distributor of feature films in video tapes and video compact discs. 
C. Type of entities other than the State trad ing enterprise that are allowed to engage in 
importation/exportation and c onditions for participation  
None. 
D. How import/export levels are established by the State trading enterprise  
 Based on the company's commercial decisions. 
E. How export prices are determined  
Not applicable. 
F. How the resale prices of imported products are determined   
 According to commercial considerations. G. Whether long-term contracts are negotiated by the State trading enterprise.  Whether the State
 
trading enterprise is used to fulfil contractua l obligations entered into by the Government  
 The Company is allowed to negotia te and sign long-term contracts.  
H. Brief description of market structure  
The Company covers 100 per cent market shar e of imported video tapes and video compact 
discs in Viet Nam. 
IV. Statistical Information 
 Not available.  WT/ACC/VNM/14/Rev.1 
Page 12  
 
  V. Reason why no foreign trade has taken place 
 Not applicable. 
VI. Additional Information 
No.  WT/ACC/VNM/14/Rev.1 
 Page 13 
 
 
  5.  STATE TRADING ENTERPRISES ON:  NEWSPAPERS, PERIODICALS (IMPORT) 
I. Enumeration of State Trading Enterprises 
A. Identification of State trading enterprises  
 Name:   The Books and Newspa pers Export Import Corporation  
(XUNHASABA) 
 Address:  32 Hai Ba Trung, Hanoi, Viet Nam 
 Tel:  84 4 8247330/8262989  Fax:  84 4 8252860 
B. Description of products affected (includi ng tariff item number(s) encompassed in product 
description)  
Newspapers, magazines and periodicals with or without illustrative pictures or with 
advertising contents (HS 4902). 
II. Reason and Purpose 
A. Reason or purpose for establishing and/or maintaining State trading enterprise  
Culture (including newspapers, magazines et c.) is a sensitive aspect that requires 
administration to maintain national identities. 
B. Summary of legal basis for granting the releva nt exclusive or special rights or privileges, 
including legal provisions and summary of statutory or constitutional powers  
- The 1993 Law on Publication; 
- Decision No. 2501/QD-CXB dated 15 August 1997 issuing the regulations on the 
organization and operation of  publication entities; and 
- Import and Export licence issued by the Ministry of Culture and Information. 
III. Description of the Functioning of the State Trading Enterprise 
A. Summary statement providing overview of operations of the State trading enterprise  
XUNHASABA was established in 1957 with main functions of exporting and importing of 
books, newspapers, magazines, stamps for collec tion and other kinds of publications.  In 
addition, the Company was assigned to introduce and publicize Vietnamese and foreign 
books, newspapers, magazines, and import books  and newspapers, magazines, etc. for 
domestic consumption.  
At present, XUNHASABA has exclusive right only to import newspapers and periodicals of 
all kinds.  It can import according to orders placed by customers of import directly for distribution in its own network or for reselling to other distributors. 
B. Specification of exclusive or special right s or privileges enjoyed by the State trading 
enterprise  
XUNHASABA is currently Viet Nam's exclusive importer of newspapers and magazines. WT/ACC/VNM/14/Rev.1 
Page 14  
 
  C. Type of entities other than the State trad ing enterprise that are allowed to engage in 
importation/exportation and c onditions for participation  
 None. D. How import/export levels are established by the State trading enterprise
 
- Based on the clients' orders; 
- Based on the plan implementation of the previous years; and 
- Based on the domestic market demand. 
E. How export prices are determined  
 Based on the market price. F. How the resale prices of imported products are determined 
 
 CIF price plus the Corporation's pre-determined profit margin. 
G. Whether long-term contracts are negotiated by the State trading enterprise.  Whether the State  
trading enterprise is used to fulfil contractua l obligations entered into by the Government  
No. 
H. Brief description of market structure  
XUNHASABA is not an exclusive distributor of  newspapers and magazines.  Newspapers 
imported by the Corporation are retailed thr ough the Corporation's outlets or through a 
domestic distribution system consisting of both State and non-state-owned enterprises.  
IV. Statistical Information 
 Approximately US$ 2,500,000 annually. 
V. Reason why no foreign trade has taken place 
 Not applicable. 
VI. Additional Information 
 No.  WT/ACC/VNM/14/Rev.1 
 Page 15 
 
 
  5.  STATE TRADING ENTERPRISES ON:  CIGARETTES AND CIGARS (IMPORT, 
TO BE EFFECTIVE AS FROM THE DATE OF ACCESSION) 
I. Enumeration of State Trading Enterprises 
A. Identification of State trading enterprises  
 Name:   Viet Nam National Tobacco Corporation (VINATABA) 
 Address:  25A Ly Thuong Kiet Street, Hanoi, Viet Nam 
 Tel:  84 4 8265778/8251381  Fax:  84 4 8265777 
B. Description of products affected (includi ng tariff item number(s) encompassed in product 
description)  
 HS Commodity 
1 2402.10.00 Cigars, cheroots and cigarillo s, containing tobacco 
2 2402.20.10 Beedies 
3 2402.20.90 Other 
4 2402.90.10 Cigars, cheroots an d cigarillos of tobacco substitutes 
5 2402.90.20 Cigarettes of tobacco substitutes 
6 2403.10.11 Blended tobacco 
7 2403.10.19 Other 
8 2403.91.00 "Homogenised" or "reconstituted" tobacco 
9 2403.99.10 Tobacco ex tracts and essences 
10 2403.99.40 Snuff 
11 2403.99.50 Smokeless tobacco, incl uding chewing and sucking tobacco 
12 2403.99.60 Ang Hoon 
13 2403.99.90 Other 
 
II. Reason and Purpose 
A. Reason or purpose for establishing and/or maintaining State trading enterprise  
As cigarettes are harmful to consumer hea lth, Viet Nam does not encourage cigarettes 
consumption in order to protect public heath.  Viet Nam has acceded to the Framework Convention on Tobacco Control (FCTC).  Now the Government of Viet Nam is drafting a 
plan to implement the FCTC with more stringent policies on cigarette control, including measures to control and limit toward reduction of cigarettes supplies.  
In accordance with the national policies on ciga rette control, VINATABA will be appointed 
as the sole importer of cigarettes/cigars with a view to facilitating the efficient control on 
imported cigarettes/cigars and preven ting the rise in cigarette demand. 
VINATABA is currently a State-owned enterprise licensed to conduct business in 
cigarettes/cigars.  
VINATABA plays a key role in Viet Nam's tobacco  industry with the largest market share in 
Viet Nam, both in terms of production and distribution. 
VINATABA has the largest nationwide formal chan nel of cigarettes distribution.  Therefore, 
using this system for distributing imported ciga rettes will facilitate the circulation of imported WT/ACC/VNM/14/Rev.1 
Page 16  
 
  cigarettes in the Vietnamese market and the ma nagement of the State for the national health 
purposes. 
B. Summary of legal basis for granting the releva nt exclusive or special rights or privileges, 
including legal provisions and summary of statutory or constitutional powers  
- The Framework Convention on Tobacco Control (FCTC) of the World Health 
Organization, to which Viet Nam has acceded; 
- Directive No. 13/1999/CT-TTg dated 12 Ma y 1999 of the Prime Minister on re-
arranging the production and tradi ng of the tobacco industry; 
- Resolution No. 12/2000/ND-CP dated 14 August 2000 of the Prime Minister on 
"National Policy on Prevention against Ci garettes Effects in the 2000-2010 period"; 
and 
- Decree No. 76/2001/ND-CP dated 22 October 2001 on the manufacture and trading 
of cigarettes.  (Article 2 of Decree No. 76/2001/ND-CP stipulates that "the 
consumption of cigarettes is not encour aged.  The State implements a uniform 
management over the tobacco industry and has the exclusive right to manufacture cigarettes. VINATABA plays the major ro le in implementing this guideline".) 
 Viet Nam has committed to abolish cigarettes import prohibition upon accession to the WTO. 
Legal documents assigning VINATABA as the sole importer of cigarettes will be issued as soon as the import prohibition is abolished. 
III. Description of the Functioning of the State Trading Enterprise 
A. Summary statement providing overview of operations of the State trading enterprise
 
VINATABA is the major State-owned cigarettes en terprise with the largest market share in 
the country.  VINATABA has good reputation and experience in the tobacco industry.  
B. Specification of exclusive or special right s or privileges enjoyed by the State trading 
enterprise  
VINATABA will be the sole importer of tobacco products in Viet Nam. 
C. Type of entities other than the State trad ing enterprise that are allowed to engage in 
importation and conditions  for participation  
 None. D. How import levels are established by the State trading enterprise
 
 Annual import volume of VINATABA is determin ed based on the balance between domestic 
production, the importation of foreign cigarettes and the domestic demand.  WT/ACC/VNM/14/Rev.1 
 Page 17 
 
 
  E. How import prices are determined  
 The import prices are determined by VINATABA on commercial considerations.  They are 
normally calculated as follows: 
 Import price = {[(C&F or CIF price + import duty) + excise tax] + VAT tax} + other 
costs  
 Other costs include inspection fee, local transportation etc. 
F. How the resale prices of imported products are determined  
 The resale prices of imported products are determined on commercial considerations of 
VINATABA.  The retail price of imports in the domestic market is calculated based on the wholesale price of domestic cigarettes and reta iler's profit. The terms and conditions for 
distribution of imported cigarettes are similar to those applied to domestic cigarettes. 
G. Whether long-term contracts are negotiated by the State trading enterprise.  Whether the State
 
trading enterprise is used to fulfil contractua l obligations entered into by the Government  
The negotiation and signing of long-term contracts for importing cigarettes will be 
implemented by VINATABA at its own discretion.  It is not obliged to fulfil the Government's contracts. 
H. Brief description of market structure
 
VINATABA will not be an exclusive distributor of imported tobacco products, its distributor 
system consists of both State and non stat e-owned enterprises, which have their own 
distributors. 
IV. Statistical Information 
1.  Table I:   Import information by product:  Not available as Viet Nam is still prohibiting 
import of cigarettes and cigars. 
2.  Table II:   Export information by product: Information is not available. 
3.  Table III:  Domestic activities  
Commodity (HS) Domestic purchase 
cost Domestic 
production 
(mil. of packs of 20 
cigarettes/pack) Turnover from 
selling in the 
domestic market 
(bil. VND) Domestic 
consumption 
(mil. of packs of 20 
cigarettes/pack) 
Cigarettes 
(2402.20.90) 0 2.423 6.220 4.5 
Notes: 
- The above statistics is of 2004; 
- Domestic purchase cost is 0 as VINATABA directly produces cigarettes. - Domestic consumption figures are estimates. 
 WT/ACC/VNM/14/Rev.1 
Page 18  
 
  Year Commodity Domestic 
production 
(mil. of packs of 20 
cigarettes/pack) Imports by State 
trading enterprise Imports by other 
organizations 
2004 Cigarettes 4.130 0 0 
Note:  
- Data on imports: none, as it is being prohibited from importing; and 
- Other tobacco products ( excluding cigarettes ) stated in Part B.I " Description of products affected" are 
now not being manufactured domestically: data on imports of these commodities is not available as they are being prohibited from importing. 
V. Reason why no foreign trade has taken place 
 There have so far been several large tobacco groups in Viet Nam such as BAT, Philip Morris, 
Japan Tobacco, Imperial etc.  Production of  cigarettes under foreign brands has been 
implemented under licensing contracts and the contracts for processing and cooperating in 
selling products in Viet Nam through Viet Na m-based international tobacco branches e.g. 
BAT (Viet Nam), Philip Morris (Viet Nam) a nd Japan Tobacco International (Viet Nam). 
 VINATABA is the local enterprise which large international tobacco firms have established 
business with and is the focal point of inte rnational cooperation of Viet Nam's tobacco 
industry.  Therefore, appointing VINATABA to be the sole importer of tobacco products also 
helps to stabilize the investment environment for international tobacco groups licensed to do 
business in Viet Nam. 
VI. Additional Information 
 None. 
__________