RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/ACC/VNM/36 
7 April 2005 
 (05-1445) 
Working Party on the  
Accession of Viet Nam Original:   English 
 
 
   
ACCESSION OF VIET NAM 
 
Additional Questions and Replies
 
  
 The following submission, dated 31 March 2005, is being circulated at the request of the 
Delegation of the Socialist Republic of Viet Nam.   
_______________ 
  WT/ACC/VNM/36 
 Page i 
 
 
TABLE OF CONTENTS 
 
II. ECONOMIC POLICIES..........................................................................................................1  
- Monetary and Fiscal Policy..................................................................................................... .1 
- Foreign Exchange and Payments ............................................................................................2  
- Investment Regime.............................................................................................................. ......3  
- State Ownership and Privatization .........................................................................................9  
- Pricing Policies ............................................................................................................... .........23  
- Competition Policy............................................................................................................. .....24  
III. FRAMEWORK FOR MAKING AN D ENFORCING POLICIES ....................................25  
IV. POLICIES AFFECTING TRADE IN GOODS ...................................................................33  
- Trading Rights ................................................................................................................. .......33  
A. IMPORT REGULATIONS....................................................................................................37  
- Ordinary cust oms duties ........................................................................................................ 37 
- Other duties and charges....................................................................................................... .41 
- Tariff rate quotas, tariff exemptions.....................................................................................41  
- Fees and charges for services rendered.................................................................................48  
- Application of internal taxes to imports ...............................................................................52  
- Quantitative import restrictions, includi ng prohibitions, quotas, and licensing 
systems ........................................................................................................................ .............56  
- Customs valuation.............................................................................................................. .....65  
- Rules of origin ................................................................................................................ .........67  
- Other customs formalities ...................................................................................................... 68 
- Preshipment inspection ......................................................................................................... .70 
- Anti-dumping, countervailing duties, safeguard regimes ...................................................70  
B. EXPORT REGULATIONS ...................................................................................................75  
- Export rest rictions ............................................................................................................ ......75  
- Export subsidies ............................................................................................................... .......79  
C. INTERNAL POLICIES A FFECTING FOREIGN TRADE IN GOODS .........................82  
- Industrial policy, including subsidies....................................................................................82  
- Technical barriers to trade .................................................................................................... 86 
- Sanitary and phytosanitary measures...................................................................................90  
- Trade-related investment measures ......................................................................................95  
- State-trading enterprises...................................................................................................... ..96 
- Free zones, special economic areas......................................................................................100  
- Government procurement....................................................................................................102  
- Agricultural policies.......................................................................................................... ....102  WT/ACC/VNM/36 
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 (a)
 Imports (description of the types of border protection maintained)................................102  
(b)  Exports........................................................................................................................ ...........103  
(c)  Internal policies – i.e. description of, and the budgetary expenditure and any 
revenue foregone involved in each of the domestic support measures in place...............104  
- Trade in ci vil aircraft........................................................................................................ ....106  
V. TRADE-RELATED INTELLECTUAL  PROPERTY RIGHTS......................................106  
- GENERAL........................................................................................................................ .....106  
- Participation in international intellectual property agreements ......................................106  
- SUBSTANTIVE STANDARDS OF PROTECTION, INCLUDING 
PROCEDURES FOR THE ACQUISITION AND MAINTENANCE OF 
INTELLECTUAL PROPERTY RIGHTS .........................................................................107  
- Copyright and related rights................................................................................................107  
- Trademarks and Geographical Indications........................................................................108  
- Patents........................................................................................................................ ............109  
- Requirements on undisclosed information, including trade secrets and test data..........109  
- Enforcement .................................................................................................................... ......109  
VI. POLICIES AFFECTING TRADE IN SERVICES............................................................113  
VII. TRANSPARENCY ...............................................................................................................118  
VIII.  TRADE AGREEMENTS .....................................................................................................118  
- Legislative Action Plan........................................................................................................ .119  WT/ACC/VNM/36 
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II. ECONOMIC POLICIES 
- Monetary and Fiscal Policy Question 1 Paragraph 13 of WT/ACC/SPEC/VNM/5 indicates that Viet Nam intends to enact a new Law 
on Personal Income Tax consistent with internat ional rules which would introduce a single tax 
system and provide for a clearer definition of residents and non-residents.  This new law does 
not appear on Viet Nam's Legislative Action Plan. When does Viet Nam envision bringing a draft to the National Assembly? 
Answer
: 
Up to now, Viet Nam has not yet applied a unifo rm personal income tax system for Vietnamese 
citizens and foreigners residing in Viet Nam. Ho wever, the discrimination between foreigners and 
Vietnamese is in favour of foreigners.  
Recently, the National Assembly's Standing Co mmittee promulgated the Ordinance No.14/2004/PL-
UBTVQH11 dated 24 March 2004 on amendments of and supplements to some Articles of the 
Ordinance on Income Tax of High-income earner s.  The revised Ordinance has been warmly 
welcome, and, therefore, no  further amendment is planned. 
In addition, as Viet Nam understands, personal in come tax is not subject to WTO's rules, no 
legislative plan is foreseen in the Legislative Ac tion Plan that Viet Nam submitted to the Working 
Party in this regard. 
Question 2 
In paragraph 13 of WT/ACC/SPEC/VNM/5 Viet Na m has provided details of changes to the tax 
system to remove the defects of the current system . Viet Nam states that in the long term the 
Ordinance on Income Tax of High Income Ea rners would be replaced by a Law on Personal 
Income Tax consistent with international rul es, which would introduce a single tax system, 
broaden the scope of application of the personal in come tax, and provide for a clearer definition 
of residents and non-residents. 
We would appreciate clarification on when it is  proposed that the Law on Personal Income Tax 
will be enacted. 
Answer : 
Recently, the National Assembly's Standing Co mmittee promulgated the Ordinance No.14/2004/PL-
UBTVQH11 dated 24 March 2004 on amendments of and supplements to some Articles of the 
Ordinance on Income Tax of High-income earner s.  The revised Ordinance has been warmly 
welcome, and, therefore, no  further amendment is planned. 
In addition, as Viet Nam understands, personal inco me tax is not subject to WTO's rules, no 
legislative plan is foreseen in the Legislative Action Plan that Viet Nam submitted to the Working 
Party in this regard. WT/ACC/VNM/36 
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 - Foreign Exchange and Payments 
Question 3  Paragraph 18 stated that the Decree providing  amendment of Decree No. 63/1998/ND-CP dated 
17 August 1998 on foreign exchange control is expected to be promulgated by the end of 2004. Please clarify if this amendment repeal all fo reign exchange controls or only surrender 
requirements?  Has it been promulgated?  When does Viet Nam plan to adopt Article VIII of 
the IMF Articles of Agreement which certifies that  Viet Nam maintains no restrictions on the 
making of payments for current account transactions? 
Answer
: 
The Ordinance on Foreign Exchange is being drafted.  This Ordinance is an important legal document 
which is formulated towards international economic  integration and compliance with Article VIII of 
the IMF Articles of Agreement on liberalizing current account transactions. The Ordinance on 
Foreign Exchange is scheduled to  be promulgated in accordance with Viet Nam's Legislation Action 
Plan already submitted to the Working Party. 
After meetings between the IMF team and the Stat e Bank of Viet Nam and relevant ministries and 
agencies from 21 to 25 February 2005, Viet Nam is completing necessary procedures to request the 
IMF's official announcement of Viet Nam's adoption of Article VIII of the IMF Articles of Agreement. 
Question 4  
Paragraph 18 states that all current account restri ctions have now been removed.  Is it now 
possible for importers to freely pu rchase the foreign exchange neces sary in Viet Nam to pay for 
imports?  What restrictions, if any, remain on th e repatriation of profits by foreign investors?  
Answer
: 
According to the Circular No. 08/2003/TT-NHNN of the State Bank of Viet Nam dated 21 May 2003 
providing guidelines for the implementation of oblig ations to sell and rights to purchase foreign 
currency with respect to current transactions by r esidents being organizations, importers in Viet Nam 
are entitled to purchase foreign currency at authorized  banks to conduct current transactions and other 
permitted transactions.  
Currently Viet Nam maintains no restriction on the re patriation of profits and other legal income of 
foreign investors, provided that they have fulfille d taxation and other financial obligations to the 
Government. 
Question 5  
We would appreciate if Viet Nam would confirm that after accession, it will not use foreign 
exchange surrender and balance requirements  
Answer : 
Pursuant to Article 1 of the Decision No. 46/20 03/QD-TTg of the Prime Minister dated 2 April 2003 
on percentage of foreign currency revenue from curre nt transactions that residents being economic or 
social Organizations are obliged to sell, the percen tage of current revenue in  foreign currency required 
to be sold to Vietnamese banks was set at 0 per cent.   WT/ACC/VNM/36 
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In accordance with the Article 12 of the Decree  No.27/2003/ND-CP of the Government dated 
19 March 2003 on amendments of and supplements  to some Articles of the Decree No.24/2000/ND-
CP on detailed provisions to implement the Law on Foreign Investment in Viet Nam, the foreign 
exchange self-balancing re quirement was abolished. 
Viet Nam confirms its intention that foreign invest ed enterprises shall not be required to self-balance 
their foreign exchange needs and th e percentage of current revenue in foreign currency obliged to be 
sold to Vietnamese banks shall be maintained  at 0 per cent after its accession to the WTO. 
Question 6  
Paragraph 22 of WT/ACC/VNM/5 indicates that  Viet Nam eliminated foreign exchange self-
balancing requirements in June 2000.  In para graph 23, subject document notes that the 
"Government was considering guaranteeing the ba lancing of foreign currency needs for foreign 
investors investing in important projects identi fied in government programmes, and supporting 
foreign currency balancing for infrastructure  projects and some other projects in case the 
authorized banks could not meet all foreign currency needs.  Please explain the apparent 
contradiction of the two statements. 
Answer : 
Viet Nam sees no contradiction in the paragraphs 22 and 23, because: 
Before 2000, the Law on Foreign Investment re quired enterprises to self-balance their foreign 
exchange needs. Paragraph 22 indicates Viet Nam' s efforts in abolishing the foreign exchange self-
balancing requirement so as to allow foreign-invest ed enterprises to have access to foreign exchange 
sources of commercial banks.  
Paragraph 23 continuously demonstrates Viet Nam' s above-mentioned effort.  In addition to allowing 
all foreign-invested enterprises to have access to foreign exchange sources of commercial banks, the 
Government also guarantees the bala ncing of foreign currency needs for foreign investors investing in 
important projects identified in government's progr ammes, and considers to provide its assistance in 
terms of foreign currency to balance for investors investing in infrastructures and some other projects 
in cases that commercial banks would not provide sufficient foreign exchange required by such 
investors. 
- Investment Regime 
Question 7  Paragraph 25 indicates that the Law on Enterp rises prohibits certain se ctors to investors for 
reasons of national security, public order, social  morals, human health, tradition, environment, 
etc. Please provide a definitive list of sectors prohibited for private investment with an 
explanation for the exclusion. 
Answer
: 
These sectors/lines of business are: a. Trading in weapons, ammunition, military equipm ent, military items a nd specialised military 
technical equipment of the armed forces; 
b. Trading in explosives, toxic chemi cals, and radioactive substances; 
c. Trading in drugs of addiction; 
d. Prostitution, organizing prostitution services and trading in women and children; WT/ACC/VNM/36 
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 e. Providing gambling services or operating gambling venues; 
f. Trading in chemical substances of high toxicity; 
g. Trading in any items which belong to th e historical, cultural or museum heritage; 
h. Trading in reactionary cultural products, porno graphic or superstitious items, or items which 
have an adverse effect on personal development; 
i. Trading in all types of firecrackers; 
j. Trading in wild plants and animals which ar e listed in international treaties to which 
Viet Nam is a signatory or a participant, and tr ading in other rare and precious species of flora 
and fauna which require protection; and 
k. Trading in toys which have an adverse effect on personal development or health of children or 
which have an adverse effect on social order, security and safety. 
Trading in those sectors/lines of business are proh ibited for the protection of national defence, 
national security, public order and safety, historical  and cultural traditions, morals, traditional custom 
and human health. 
Question 8  
Referring to paragraph 25's discussion of the La w on Enterprise's division of business sectors, 
please define "conditional business sectors." 
Answer
: 
"Conditional business sectors" are sectors that enterp rises are eligible to conduct business only if they 
have fully satisfied all requiremen ts specified in applicable laws, ordinances and decrees.  Conditional 
business sectors are categorized into sectors requiring business licenses and those not requiring 
business licenses. 
Regarding conditional business sectors where business licenses are required, enterprises are entitled to 
conduct business upon being granted business licenses.   For conditional business sectors where 
business licenses are not required, enterprises are entitled to conduct business upon having fully satisfied stipulated requirements. 
Question 9  Paragraph 25 notes that business registration for sector categories one through five is not 
automatic. For each category requiring a non- automatic business licence, please describe the 
registration process and the criteria by which g overnment officials grant the licence. Is the 
business licence granted by the Ministry of Trade or a local government office or both? 
Answer
: 
The sectors/lines of business which require practising certificates are: 
1. Legal services businesses; 
2. Medical examination and treatment bus inesses, trading in pharmaceutical products; 
3. Project design and architectural services businesses;  4. Auditing services businesses; 
5. Securities brokering services businesses; 
6.  Manufacturing, processing, bottling,  packaging and trading pesticides; 
7. Design for means of transport; and 8. Trading heritage, antiques, national secrets.  WT/ACC/VNM/36 
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Ministry of Justice, Ministry of Health, Ministry of Agriculture and Rural Development, Ministry of 
Construction, Ministry of Finance, Ministry of Transportation and Ministry of Culture and Information implement State administration to the respective practising licence and provide guidelines 
on procedures, conditions, criteria,  duration and authority of issuing such practising licence. 
In the case of those enterprises conducting the lines of business which require practising licence, at 
the time of business registration, the additional c onditions on practising certificates stipulated below 
must be satisfied: 
- In respect of limited liability companies and shar eholding companies, one of the managers of 
the enterprise must have a practising certificate, or in respect of partnerships, all unlimited liability partners must have practising certificates; in respect of private en terprises, the owner of 
the enterprise or the managing director of the enterprise must have a practising certificate. 
People who have practising certificates can only register in business registration documents of 
only one business. 
- In business registration documents, in addition to common documents for business registration, 
there must be legitimate copy of practising certificates of individuals respective to different 
types of business as mentioned above. 
Question 10  
In Paragraph 27, the draft report indicates that foreign investment projects are subject to 
minimum wage regulations. Are domestic investme nt projects also subject to minimum wage 
regulations? 
Answer
: 
All investment projects, regardless of their type of investment and business, have to comply with the 
regulations on minimum wage. 
Minimum wage regulations are also applicable  to enterprises operating under Law on State-owned 
Enterprises and the Law on Enterprises. 
Question 11  
We note that in paragraph 28 of document WT/ACC/SPEC/VNM/5 Viet Nam still indicates that 
foreign investment in some sectors is only al lowed in the form of joint venture or business 
cooperation contract.  In paragraph 29, Viet Nam states that the Government had abolished 
most regulations discriminating  between domestic and fore ign investment and there were 
generally no substantial differences between these two categories of investment.  Viet Nam notes 
that differences in the fees and charges rates app lied had been eliminated, except for electricity 
where dual pricing would be abolished by 31 December 2005.  Viet Nam also states that the 
scope of other discriminatory regulations, which concerned establishment procedures and 
management organisation, would be reduced progressively and eliminated under the unified 
Law on Investment and the Law on Enterprises, which were expected to be submitted to the 
National Assembly in 2006.  These two laws were  being drafted towards applying uniformly to 
domestic and foreign investors and to all enterpri ses irrespective of economic sector and form of 
ownership in compliance with WTO rules. 
We would be grateful for further advice on the new Law on Investment and the Law on 
Enterprises, and when a copy of the draft laws  will be made available to the Working Party. WT/ACC/VNM/36 
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 Answer
: 
A common Investment Law and a uniform Enterprise  Law are currently being drafted and scheduled 
to be submitted to the National Assembly's 8th Session in October 2005 for consideration in 
accordance with the National Assembly's Program  for Enacting Laws and Ordinances in 2005 
provided in the Resolution No.35/2004/QH11 da ted 25 November 2004 of the National Assembly. 
The Government of Viet Nam has requested the Nationa l Assembly to pass, instead of consider,  these 
two laws at its 8th Session in October 2005 (i.e. requested an earlier approval).  The draft Laws 
planned for submission to the National Assembly sh all be submitted to the Working Party as soon as 
they are ready. 
Question 12  
Paragraph 29 of document WT/ACC/SPEC/VNM/5 indicates that Viet Nam's new investment 
and enterprise laws should be sent to the National  Assembly in 2006.  In light of the discussion 
of Viet Nam's Legislative Action Plan during the ninth meeting of the Working Party, when does Viet Nam anticipate sending these laws to the National Assembly?  When does Viet Nam 
expect to provide translations of the draft laws to the Working Party? 
Answer
: 
A common Investment Law and a uniform Enterprise  Law are currently being drafted and scheduled 
to be submitted to the National Assembly's 8th Session in October 2005 for consideration in 
accordance with the National Assembly's Program  for Enacting Laws and Ordinances in 2005 
provided in the Resolution No.35/2004/QH11 da ted 25 November 2004 of the National Assembly. 
The Government of Viet Nam has requested the Nationa l Assembly to pass, instead of consider,  these 
two laws at its 8th Session in October 2005 (i.e. requested an earlier approval). The draft Laws 
planned for submission to the National Assembly sh all be submitted to the Working Party as soon as 
they are ready. 
Question 13  
Paragraph 30 identifies subsidy programs availabl e to foreign investors that export. Are the 
subsidies to which an investor is entitled, incl uding their duration, specifically identified in a 
company's investment licence?  Does the invest ment licence specifically link provision of 
subsidies to export performance or use of domestic inputs?  Does Viet Nam consider an 
investment licence to be a contractual obligation? 
Answer : 
Tax incentives to export enterprises or enterprises usi ng local materials, as well as applicable duration 
are specified in the investment li censes issued to the investors. 
The current Vietnamese laws have no detailed pr ovisions on the concept of contractual obligation 
between the Government and foreign investors.  As  the concept is not clear, Viet Nam would highly 
appreciate more clarification on this question.  
Question 14  
Since Viet Nam initiated its WTO accession, has it issued investment licenses that guarantee 
subsidies prohibited by the WTO's Agreement  on Subsidies and Countervailing Measures to 
foreign or domestic firms?   WT/ACC/VNM/36 
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Answer : 
Even prior to Viet Nam's WTO accession appli cation, Viet Nam has applied some prohibited 
subsidies in the form of investment ince ntives to domestic and foreign investors. 
Question 15  
Please confirm that the draft investment and en terprise laws will not contain incentives that 
operate as prohibited subsidies. 
Answer : 
Such provisions in the common Investment Law w ould be designed in accordance with Viet Nam's 
accession commitments with respect to the SCM Agreement.  
Question 16  
Please confirm that the new investment law will not require that personnel and financial 
decisions in joint-venture companies be unanimous. 
Answer : 
It is expected that such requirements would no t be introduced in the common Investment Law. 
Question 17  
In paragraph 30, the last line of this sectio n in document WT/ACC/SPEC/VNM/4/Rev.1 stated 
"The Government maintained additional me asures granting more favourable conditions for 
export-oriented enterprises." In SPEC/VNM/5, however this information has been removed. 
Why? 
Answer : 
The above-mentioned sentence is not clear.  In fact , Viet Nam has notified all subsidies and their 
detailed descriptions in its subsidies Notification. 
Question 18  
Specific problems in the mining sector are referred to in paragraph 33 of document 
WT/ACC/SPEC/VNM/5.  We note that, in para graph 38, responsibility for management of 
foreign investment in mineral exploration had be en transferred to local authorities to improve 
the effectiveness of FDI management in this sector. 
We note that the Mining Law has been revised and would appreciate clarification as to whether 
it provides for investment licenses to be granted at the exploration stage. 
Answer : 
The Mineral Law was passed by the National Assemb ly of the Socialist Republic of Viet Nam on 
20 March 1996 and is still in effect .  The Law on amendments of and supplements to some articles of 
the Mineral Law is planned to be  submitted for approval by the 11th National Assembly at its 7th 
Session in 2005. WT/ACC/VNM/36 
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 The related issues on the investment licence granted to  foreign organizations or  individuals and a joint 
venture with a foreign party are stipulated in Artic le 31.4 of the Mineral Law as follows:  "In the cases 
where a foreign organisation or individual or a joint venture with a foreign party applies for a mining licence, the mining licence shall be issued at the sam e time as, or subsequent to, the issuance of an 
investment licence in accordance with the Law on Fo reign Investment in Viet Nam".  Furthermore, 
Article 52.4 of the Decree No.76/2000/ND-CP dated 15 December 2000 of the Government on the 
implementation of the Mineral Law provides that:  "An investment licence granted to a foreign 
organisation, individual or a joint venture with fo reign party for the execution of a mining project may 
cover the mineral exploration, mining and processing activities." 
Therefore, as Viet Nam has repeatedly confirmed, investment licence could be issued at the stage of 
exploration. 
Question 19  
We thank Viet Nam for the reference in its reply to Question 3 of WT/ACC/VNM/33 to the five 
areas "(i), (ii), (iii), (iv) and (v)" which th e Decree No. 27/2003/ND-CP has been promulgated 
for. 
It would be helpful if further details could be provided on each of these five areas in its 
investment regime. 
Answer
: 
The Government Decree No. 27/2003/ND-CP h as introduced a number of new improvements, 
namely: 
(i) The scope of activities where foreign investment is encouraged has been expanded to include 
production of high-quality steel, alloy, non-ferrous metal, special metal, steel billet, sponge 
iron; iron metallurgy; manufacturing of machiner y, equipment and component packs for oil and 
gas exploitation, mining, and energy fields; manufacturing of large-scale lifting equipment; manufacturing machine tools for metal processing, metallurgy equipment; producing medical equipment for analytical and extractive technologies in medical sector; manufacturing 
equipment for testing toxicity in foodstuffs; manufacturing information technology products; 
etc. 
(ii) The scope of conditional investment projects has been narrowed by removing the following 
projects from lists of investment projects which will only be licensed in the form of a joint 
venture enterprise or business cooperation contracts: projects for printing of technical material, printing on packaging, printing of labels of goods , and printing on textiles and garments, leather 
and footwear; printing of computer graphics ont o animated films; entertainment and sports 
areas; 
(iii) The restrictions in terms of labour recrui tment have been eliminated:  The Decree 
No. 27/2003/ND-CP now permits foreign invested enterprises to recruit directly Vietnamese 
employees instead of recruiting via local labour agencies as previously required in the Decree 
No. 24/2000/ND-CP. 
(iv) The scope of investment projects subject to regi stration regime for obtaining investment licence 
has been expanded by including specially enc ouraged investment projects located in an 
industrial zone. 
(v) The limitation on technology transfer has b een eliminated:  The Decree No. 27/2003/ND-CP 
now provides that the value of technology to be contributed as capital in a joint venture 
enterprise is only subject to the agreement by the Parties, and is no longer subject to the value 
limit of 20 per cent of legal capital as previously required by the Decree No. 24/2000/ND-CP.  WT/ACC/VNM/36 
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Question 20  
We appreciate Viet Nam's undertaking in the reply to Question 7 of WT/ACC/VNM/33 to not 
subject additional products to the export ratio requirement. 
We would be grateful for a current list of the pr oducts that are subject to the export ratio 
requirement. 
We would also be grateful for details of Vi et Nam's plans to elim inate the export ratio 
requirement applied to those products. 
Answer : 
List of industrial products subject to at least 80 per cent export ratio requirement was provided in  
paragraph 218 of the doc ument WT/ACC/SPEC/VNM/5. 
Upon accession, Viet Nam will abolish the Decisi on No.718/2001/QD-BKH dated 7 December 2001 
stipulated the list of industrial products that are s ubject to at least 80 per cent export ratio and will not 
apply such requirement in investment licence,  including those are issued prior to accession. 
Question 21  
Decree No. 76/2000/ND-CP of 15 December 2000 referred to in the reply to Question 9 of 
WT/ACC/VNM/33 does not appear to be lis ted in Annex 1 of WT/ACC/SPEC/VNM/5. 
We would be grateful if a copy of the Decree could be submitted for consideration by the 
Working Party and included in Annex 1 of the report. 
Answer : 
Please see document WT/ACC/VNM/36/Add.2. 
- State Ownership and Privatization 
Question 22  
Paragraphs 39, 43 and 364:  The intention is to continue state ownership of national and 
international telecommunications gateways and netw orks (group 1, paragraph 43).  It is stated 
that different types of ownership are equal befo re the laws (paragraph 39).  Accordingly, the 
Ordinance on Posts and Telecommunications (as well as measures implementing it; 
paragraph 364) should apply also to state-owne d enterprises with gateways and networks. What 
does the Ordinance provide as regards the use of gateways and networks (for example, non-
discrimination of operators using leased lines)? 
Answer : 
Viet Nam has fully committed to the GATS Annex on Telecommunications, in which the Paragraph 5 
states that the access to and use of public telecommunications transport networks and services by 
operators of any Member be provided on the basi s of non-discrimination.  The Ordinance on Posts 
and Telecommunications (Article 43) and the Decree on detailed provisions to implement the 
Ordinance on Posts and Telecommunications (Cha pter IV and X) also provide details on the 
implementation of this issue. WT/ACC/VNM/36 
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 Question 23  
In paragraph 43 of WT/ACC/SPEC/VNM/5, we note that there is now no reference to 
enterprises that would remain state owned including:  those undertaking exploitation and protection of irrigation works; production of original plants and animals; publication and distribution of newsreels, documentary films, a nd films for children; the production and supply 
of salt; and the production and supply of oth er products and services in accordance with the 
State's social policies. 
We would be grateful for clarification as to whether it is still the intention of the Government 
that these enterprises will remain state-owned. 
Answer
: 
According to the Decision No.155/2004/QD-TTG dated 24 August 2004 of the Prime Minister, the 
State still holds 100 per cent of capital in film pr oduction including production of scientific films, 
newsreels, documentaries and films for children.  Other industries (such as management and operation 
of irrigation works; plant varieties/seeds and animal  breeding; salt production and distribution) will be 
equitized with the State retaining controlling equity.  
Question 24  Paragraphs 44-46:  The telecommunications services sector is mentioned as one in which the 
state would retain special interest or control sh ares (group 2, paragraph 44).  Further, foreign 
investors would not be allowed to particip ate in equitization process in this sector 
(paragraph 45).  While it appears that the latt er restriction is limited only to the initial 
privatization process, even further on foreign ow nership in a previously state-owned enterprise 
could not exceed 30 per cent.  Are there any inte ntions to increase this cap or phase it out? 
Answer
: 
According to the Decision No. 155/2004/QD-Ttg da ted 24 August 2004 of the Prime Minister on the 
criteria and classification lists of state-owne d companies and independent accounting member 
companies of state-owned general corporations, te lecommunication companies will be equitized with 
the State holding controlling shares. 
For a joint-stock company which was converted from a state-owned enterprise,  foreign investors are 
entitled to buy shares, including shares of tele communication services companies in which the 
Government maintains controlling shares or special shares.  However, in accordance with generally 
applicable regulation on limitations  of capital contribution and share holding by foreign investors in a 
Vietnamese company, the maximum amount of shares which could be held by foreign investors is 
30 per cent of the chartered capital of that company.  
Question 25  
Paragraph 50: Please provide further clarification on when the ongoing process of ensuring that 
Vietnamese state-owned enterprises will compete wi th other enterprises on an equal basis will 
be concluded? 
Answer : 
According to the Law on State-owned Enterpri ses (2003), provisions on establishment, business 
registration, rights and obligations in operating, cl osing and bankruptcy of the State-owned enterprises  WT/ACC/VNM/36 
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are based upon market principles, which are on th e same footing as those applicable to other 
enterprises. 
Question 26  
In paragraph 50 of WT/ACC/SPEC/VNM/5 Viet Nam said that a new Government Decree on 
Production and Provision of Public Services was being drafted, and there would be a definition 
of goods and services considered pub lic services.  We understand th e Decree was planned to be 
promulgated in January 2005 and once promulgated would be lodged with Secretariat without delay. 
We would be grateful if Viet Nam could provide more information on what is covered by 
"goods and services socially and economically essential for the country or a particular 
community". 
Answer
: 
Such products and services would include:  elec tricity supply and distribution in rural areas; 
management and operation of sm all and medium irrigation work s; production and preservation of 
plant varieties/seeds and animal breeds; protection of natural forests, etc.  
Question 27  We understand that the activities related to the pr ovision of goods and services that fall to the 
category of "public services" are restricted to certain enterprises. 
- We would be grateful if Viet Nam could indicate the rationale for restricting the 
enterprises that may provide "public services". 
- We would be grateful for details of the bi dding procedures that apply to suppliers of 
"public services". 
- We would be grateful for details of the state orders that apply to suppliers of "public 
services". 
Answer
: 
The Government's draft Decree on the production and distribution of public goods and services only 
provides restrictions to production and distribution in the field of national security and defence. 
However, in reality, private firms are not interest ed in or difficult to operate in some sectors. 
Therefore, state-owned enterprises have to provi de these goods and services (e.g. in the area of 
textbook publication.) 
After the promulgation of the Government's Decr ee on production and distribution of public goods 
and services, the Government will instruct the respons ible agencies to issue guiding circular providing 
detailed guidance on the application of bidding and ordering procedures in the procurement of public 
goods and services. 
Question 28  
Could Viet Nam clarify whether the production and sale of salt fall to "public services" 
category? 
Answer : 
Production and supply of salt may no longer be incl uded in the list of public goods and services.  WT/ACC/VNM/36 
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 Question 29  
We would be grateful if Viet Nam could provide  a comprehensive list of SOEs indicating those 
where the Government holds 100 per cent of the capital and those where the Government holds 
a majority share of the capital other than 100 per cent.  We would be grateful if the list could also indicate the main activities of those SOEs (by product or sector). 
Answer
: 
Currently, there are around 150,000 enterprises in Viet Nam, of which 3,364 are state-owned 
enterprises. 
The Decision No. 155/2004/QD-TTg dated 24 August 2004 of the Prime Minister on the criteria and 
classification lists of state-owned companies and independent accounting member companies of state-
owned general corporations provides for the sect ors where the State still maintains 100 per cent 
ownership or controlling shares in the equitized enterprises. 
The State shall hold 100 per cent of capital with respect to companies en gaged in the following 
industries and sectors: 
1. Companies engaged in a number of important sectors: 
- Production and supply of explosives; 
- Production and supply of toxic chemicals; 
- Production and supply of radioactive substances; 
- The national power transmission system; 
- International and national comm unication backbone networks; 
- Production of cigarettes; 
- Flight control; 
- Navigation direction; 
- Manufacture and repair of weapons, military equipment and specialized equipment used 
for national defence and security; equipment and technical documents and provision of 
services for keeping confidentiality of information by coding techniques; 
- Companies which are assigned to perform du ties of national defence or security, and 
companies located in strategic areas impor tant in both economic and national defence 
aspects as decided by the Prime Minister; 
- Printing of currency and valuable  papers; production of coins; 
- Construction lotteries; 
- Publishing houses; 
- Production of scientific films, newsreels,  documentaries and films for children; 
- Mapping; 
- Management and maintenance of the national ne twork of railways or airports and seaports 
of a large size in important locations as decided by the Prime Minister; 
- Management and operation of upstream irriga tion works or irrigation works of a large 
size; 
- Afforestation and protection of upstream forest s, protective forests or specialized forests; 
- Drainage in large urban areas; 
- Urban lighting; and 
- Other important sectors as decided by the Prime Minister. 
2. Companies ensuring essential needs for devel opment of production and improvement of the 
material and spiritual life of ethnic minorities living in mountainous, remote or distant areas.  WT/ACC/VNM/36 
 Page 13 
 
 
3. Companies satisfying all of the following c onditions: possessing 30 billion or more Dong of 
State owned capital; having made an average annual payment of three billion or more Dong to the State Budget in the last thr ee years; leading in the application of cutting edge technology or 
high-technology; making an important contribution to stabilization of the macroscopic economy and operations in the following industries and sectors: 
- Processing of petroleum; 
- Exploitation of ores containing radioactive substances; 
- Building and repair of means of transportation by air; 
- Printing of political books or newspapers; 
- Wholesale trade of medicines for disease prevention and treatment and pharmaceutical 
chemistry; 
- Wholesale trade of foods; 
- Wholesale trade of petrol and oil; 
- Transportation by air or rail. 
Companies in which the State holds more than 50 per cent of the total shares upon equitization. 
1. Companies possessing 20 billion Dong or more of State owned capital; having made an average 
annual payment of 2 billion Dong or more to the State Budget in the last three years; operating 
in the industries and sectors specified in clau se 3 of Section I mentioned above and in the 
following industries and sectors: 
- Generation of electricity; 
- Exploitation of important minerals: coal, baux ite, copper ores, iron ores, tin ores, gold and 
precious stones; 
- Manufacture of the following mechanical produc ts: electrical equipment and materials; 
specialized industrial machinery; machinery and equipment serving agriculture, forestry 
and fishery; building and repair of means of transportation by sea or rail; 
- Provision of infrastructure of telecommunications networks; 
- Manufacture of ferrous metals (cast iron and steel) with a capacity of more than 100,000 
tons per annum; 
- Manufacture of high-quality cement by a modern technology with a designed capacity of 
more than 1.5 million tons per annum; 
- Production of fertilizers and pesticides; 
- Production of the following consumer goods a nd foods: table salt; milk; beer with a 
capacity of more than 50 million litres per a nnum; alcohol and spirits with a capacity of 
more than 10 million litres per annum; 
- Exploitation, filtering and supply of clean water in large cities; 
- Maritime transportation; 
- Monetary or insurance business. 
2. Other companies: 
- Production of domestic animal breeding stock,  cultivated plant seeds and frozen sperm; 
- Services for deep-sea fishing; 
- 
Management and maintenance of networks  of important roads and waterways; 
- Management and operation of irrigation works; 
- Services for labour cooperation; 
- Operation of floors of fairs or exhibitions. 
Currently, ministries and local authorities have been  reviewing, classifying state-owned enterprises as 
regulated in the Decision No. 155/2004/QD-TTg to subm it to the Prime Minister, therefore the lists of 
enterprises which the State holds 100 per cent of capital and controlling share are not available. WT/ACC/VNM/36 
Page 14  
 
 Question 30  
Approximately what portion of Viet Nam's (1) output; (2) exports; and (3) imports are 
accounted for by state owned firms, e.g., firms where government equity ownership is 
50 per cent or above or firms in which the state may hold a minority stake in the company but 
retains effective management control? Please id entify which ministry or ministries own the 
shares of the companies.  Indicate in genera l terms in what sectors these firms are found.  
Answer
: 
Currently, there are around 150,000 enterprises in  Viet Nam, of which 3,364 are State-owned 
enterprises. However, detailed statistics on output, ex port and import value of State-owned enterprises 
by ratios of State equity ownership (i.e. sta tistics broken into SOEs where government equity 
ownership is 50 per cent or above or SOEs in which the State may hold a minority stake in the 
company but retains effective management control) are not available. 
Best available statistics of industrial production, import and export values of enterprises by forms of 
enterprises that could be obtained are presented in Annex 5 of this document. 
Presently, the State-owned shares in an enterprise ar e held by a line ministry or People's Committee 
mandated to be responsible for the management of the State equity in the enterprise, whether the 
enterprise is owned by the line ministry or th e provincial People's Committee respectively.   
Question 31  
Please identify ministries that have regulator y responsibilities for industries in which these 
ministries own state enterprises. 
Answer : 
Ministries and agencies that are owners of State-owned enterprises operating in sectors/lines of 
business under their State management authority include: Ministry of In dustry, Ministry of 
Construction, Ministry of Transportation, Ministry  of Agriculture and Rural Development, Ministry 
of Trade,  Ministry of Posts and Telecommunication, Ministry of Fishery, Ministry of Culture and Information, General Department of Tourism. 
However, State-owned enterprises operating in sect ors/lines of business under the State management 
authority of the above ministries and agencies have been and will be equitized.  In addition, policies 
applicable to enterprises are uniform and consiste nt, regardless they are State-owned enterprises or 
enterprises governed by the Law on Enterprises, mi nistries and People's Committees are enterprise 
owners but do not intervene in enterprises' business operation.  They only exer cise the supervision of 
the State capital in the SOEs. 
Question 32  What proportion of Viet Nam's textile and garme nt industry is wholly or partially state-owned 
or otherwise state-controlled (e.g., golden share, management responsibility, etc.)? 
Answer
: 
Detailed statistics as requested are currently not availa ble.  However, according to unofficial statistics, 
all garment companies have been equitized, except Viet Tien Garment Company that has now been 
transformed into the holding company and subsidiaries business model.  WT/ACC/VNM/36 
 Page 15 
 
 
Question 33  
What proportion of Viet Nam's fertilizer industry is state-owned or otherwise state-controlled 
(e.g., golden share, management responsibility, etc.)? 
Answer : 
Since all economic sectors are entitled to engage in production and trading of fertilizers and no 
discrimination between economic sectors exists, deta iled statistics as requested are not available in 
Viet Nam.  However, so far only the State-owned enterprises are involved in the production of nitrogenous fertilizer because of the capital-inte nsive characteristics of this industry.  The 
Government of Viet Nam does not maintain any restri ction on the participation of private enterprises 
in fertilizer production. 
Question 34  What rules govern procurement by state-owned enterprises? 
Answer
: 
Capital investments by state-owned enterprises ar e normally conducted through competitive bidding 
(as regulated by the Decree No.52/1999/ND-CP da ted 8 July 1999; the Decree No. 88/1999/ND-CP 
dated 1 September 1999; the Decree No.07/2003/ND-CP 30 January 2003). 
Question 35  
Paragraph 48:  We believe it would be useful for Viet Nam to provide the chart requested, 
indicating major economic secto rs of the equitized firms, and demonstrating the progress of 
equitization over time. 
Answer : 
List of sectors, and lines of business which are e quitized, transferred or sold are governed by the 
Decision No. 155/2004/QD-TTg dated 24 August 2004 of  the Prime Minister on the criteria and 
classification lists of state-owned companies and independent accounting member companies of state-
owned general corporations. 
Up to 31 December 2004, 2,242 State-owned enterp rises have been equitized in Viet Nam. Among 
them, SOEs possessing less than 5 billion VND of  State-owned capital are 1,327 enterprises, 
accounting for 59.2 per cent and the majority of wh ich is in construction,  production of consumer 
goods, trade and services and agricultural processi ng industries; SOEs possessing from VND 5 to 
10 billion of State-owned capital are 500 enterprises, accounting for 22.3 per cent; and the remaining 415 enterprises are SOEs possessing more than VND 10 billion of State-owned capital, accounting for 
18.5 per cent.  Among those equitized enterprises, there are also big ones such as Viet Nam Dairy 
Products Company (VINAMILK - of which the value of enterprise is VND 2,500 billion and State-
owned capital is VND 1,500 billion), Song Hinh-Vinh S on Hydroelectric Plant (of which the value of 
enterprise is VND 2,114 billion and State-owned capital is VND 1,253 billion), Hochiminh City Insurance Company (BAO MINH – of which the valu e of enterprise is VND 1,311 billion and State-
owned capital is VND 650 billion), etc. On average,  the State holds 46.5 per cent of equitized 
enterprises' charter capital, employees hold 38.1 per cent and other shareholders altogether hold 
15.4 per cent.  The State holds controlling shares (i.e. of 50 per cent or over of enterprise's charter 
capital) in 661 enterprises, which account for 29 .5 per cent of numbers of already equitized 
enterprises. WT/ACC/VNM/36 
Page 16  
 
 So far 26 shareholding companies converted from SOEs through equitizatio n process have listed on 
Viet Nam's exchange market. 
From 2005 onward, 1,460 state-owned enterprises are planned to be equitized or otherwise 
transferred, sold, closed or subject to bankruptcy. 
More detailed information is provide d in Annex 6 of this document. 
Question 36  Paragraph 43:  WT/ACC/SPEC/VNM/4/Rev.1 described enterprises where 100 per cent 
government ownership was intended to remain, ci ting Decree No. 56 of 2 October 1996.  The 
description of its provisions has been excluded from WT/ACC/SPEC/VNM/5, and replaced by description referring to Decision No. 155/2004/QD-TTg, which outlines a somewhat different list 
of exempted sectors.  Does Decision No. 155 replace Decree No. 56?  What is the essential 
difference between the two pieces of legislation? 
Answer
: 
The Decision No. 155/2004/QD-TTg does not replace the Decree No. 56/CP dated 2 October 1996 of 
the Government on state-owned ente rprises operating in public services. 
According to the Decision No. 155, the scope of business lines/sectors where SOEs equitization will 
not take place or the State will retain its contro lling shares has been narrowed down considerably. In 
particular, the State only holds 100 per cent of capital of enterprises enga ged in:  production of 
explosives, toxic chemicals, radioactive substances; the national power transmission system; manufacture of weapons, military e quipment and specialized equipmen t used for national defence and 
security; international and national communication backbone networks; flight control; printing of 
currency and valuable papers; c onstruction lotteries; publishing houses;  urban lighting; drainage in 
large urban areas; etc. SOEs ensuring essential n eeds for development of production and improvement 
of the social life of ethnic minorities living in m ountainous, remote or distant areas are also included 
in the list of 100 per cent state-owned enterprises. 
Question 37  
Please clarify whether there are any Group 2 enterprises that have been equitized, and list 
them. What portion of equitized enterpri ses to date has been moved to Group 3?  
Answer
: 
Up to 31 December 2004, there remain 3,364 State-owned enterprises in Viet Nam after the 
equitization of 2,242 State-owned enterprises.  A ll equitized SOEs belong to Group 2.  None of 
equitized enterprises has been moved to Group 3. 
Question 38  How many of the firms equitized to date have had foreign investor participation?  Have any 
equitized firms to date been transformed into FDI joint ventures?  Please answer in as much 
detail as possible and provide examples.  WT/ACC/VNM/36 
 Page 17 
 
 
Answer : 
There are 18 equitized enterprises which have foreign investors' participation in Viet Nam. None of 
equitized enterprises has been transfor med into FDI joint ventures so far. 
Question 39  
Describe the management structure of equitized firms.  What roles does the state continue to 
play?  Is any part of the board of directors or the management of these firms appointed by the 
government?  In equitized firms in which employees own shares, who represents employee 
owners?  How is that representative chosen? Pl ease answer in as much detail as possible and 
provide examples. 
Answer : 
State-owned enterprise equitization are carried out in  line with market principles. Shares are widely 
sold to public.  Enterprises are converted to joint-stock enterprises which are governed by the 
Enterprise Law as all other joint-stock enterprises.  The management structure includes the General 
Meeting of Shareholders; Board of  Management voted by the Genera l Meeting of Shareholders and 
Director (General Director) assigned by the Board of Management. 
The relation between the State and shar eholding enterprises are as follows: 
- To shareholding enterprise without the State's capital, the State only acts as regulator, does 
not intervene in the affa irs of the enterprise. 
- Relation between the State (as a shareholder) to shareholding enterprise only exists in case the 
enterprise is partially or wholly owned by the St ate. The State, as other shareholders, has the 
rights and obligations corresponding to the their capital contribution in the enterprise's charter 
capital. The State (as a shareholder) does not directly assign the management of shareholding 
enterprises. Such assignment is the responsibilit y of the General Meeting of Shareholders, 
Board of Management or Director/General Di rector, regardless the States holds controlling 
share or not. 
- In case the State holds more than 10 per cent of  the popular shares, the State as a shareholder 
nominates representative for the approval of the General Meeting of Shareholders to be a 
member of Board of Management. In case of the General Meeti ng of Shareholders' 
disapproval, the State would not have representative in Board of Management. 
Concerning representative of the employees in equiti zed enterprises:  In e quitized enterprises in 
which the employees hold enterprises' shares, th ese employees are the owners of the shares 
without any representative.  These employees im plement their rights and obligations as 
shareholders.  To implement the rights of a group of shareholders, they can organise the group 
and assign their representative.  The current legi slation does not have detailed provisions on 
shares of group of employees in equitized enterp rise.  Hence, representative of a group of 
employees' shares are not addressed by laws in Viet  Nam.  In some big shareholding companies, 
there have been cases where employees or their re presentative are involved in the management of 
the companies. 
Question 40  
In those equitized firms where the state main tains a controlling interest, does it appoint 
management?  Does the top management of such firms report to a Ministry? WT/ACC/VNM/36 
Page 18  
 
 Answer
: 
The State (as a shareholder) does not appoint ma nagement in shareholding companies.  Such 
appointment is the responsibility of the General Me eting of Shareholders, Bo ard of Management or 
Director/General Director, regardless of the State holding controlling shares or not.  Similarly, current 
legislation does not provide that the management of  the shareholding companies has to report to an 
administrative ministry.  Shareholding companie s are only obliged to report as other companies. 
In case the State holds controlling shares, the State w ould nominate its representative to be elected to 
the Board of Management.  The representative is not automatically a member of the Board of Management, but is subject to the approval of th e General Meeting of Shareholders.  In case the 
representative is elected to the Board of Manage ment and then assigned to be the Chairman, the 
General Director (Director) or ot her management titles, he/she has to report company operation to 
those he/she represents, not to any other agencies. 
Question 41  
We understand Viet Nam is considering raising th e foreign ownership cap on equitized firms. 
Please advise the share percentages Viet Nam is co nsidering allowing foreigners to buy?  Is the 
government considering allowing foreign investor purchase of 100 per cent equity of equitizing 
firms in the future? What mechanism(s) will the government use to transfer /sell shares in a firm 
under equitization?  
Answer
: 
According to the current regulations on the lim itation applicable to shares purchased by foreign 
investors in a Vietnamese company, the maximum le vel is 30 per cent of the chartered capital of the 
company.  This regulation is also applied to equ itized enterprises.  The List of business lines that 
foreign investors are entitle to purchase shares is i ssued by the Prime Minister. Raising the maximum 
level of shares purchased by foreign investors in so me particular business lines could be considered in 
the future. 
Mechanism for share sales to foreig n investors applicable to equiti zed enterprises is stipulated in 
Regulation on capital contribution, share purchase of foreign investors in Vietnamese companies is 
attached to the Prime Minister's Decision No. 36/2003/QD-TTg dated 11 March 2003. 
Question 42  
Press reports on the issue indicate the government  is considering discounting the price of shares 
of equitizing firms for "strategic investors" and "workers."  Please define these terms. Please 
describe the transparency provisions the government  is considering to insure that all potential 
investors have a fair chance to purcha se shares in an equitizing company? 
Answer : 
The Decree No.187/2004/ND-CP dated 16 November  2004 of the Government on Transformation of 
State-owned enterprises into shareholding companies states that: 
- Strategic investors are domestic investors such  as: manufacturers and frequent suppliers of 
inputs to the enterprise; persons committed to purchase the enterprise's product over long term; 
persons who have long-term stra tegic interest closely related to the enterprise's products; 
persons who have long-te rm strategic interest closely related to the enterprise's business  WT/ACC/VNM/36 
 Page 19 
 
 
operation and possess financial potentials a nd management competence (Article 26.2, 
Article 27.3 and Article 28.2). 
- Employees in an equitized enterprise are those w hose names are on the list of the enterprise's 
frequent employees at the time when the decision on its equitization is made. 
- Strategic investors and employees are both eligib le to purchase shares at discount in a newly-
equitized SOEs subject to certain terms and conditions. Specifically, employees are entitled to 
purchase up to 100 shares (the par value of one share is set at VND 10,000) for each year of employment in the State sector at discount of 40 per cent of average auction price, and strategic domestic investors are entitled to purchase up to 20 per cent of number of shares for sale at discount of 20 per cent of average auction price. 
- All the remaining shares after deducting the shares  held by the State and the shares sold at 
discount to enterprise's employees and strategic domestic investors must be publicly auctioned to investors.  These remaining shares must be e quivalent to minimum of 20 per cent of charter 
capital according to Article 27.4.  Accordingly, all other investors enjoy equal opportunity in purchasing shares. 
Question 43  Are the shares of already equitized firms available fo r sale or resale? If so, when, and where?  If 
the Government wishes to sell more of its sha res in equitized firms, how does it do this? 
Answer
: 
Shareholders of shareholding companies, including equitized enterprises, are free to transfer their 
shares to other investors, w ith the following exceptions: 
- Strategic shareholders are not allowed to transfer their shares that have been purchased at 
discount within three years from the date when business registration is granted to the shareholding company.  In special cases, these sh ares could be transferred prior to that date 
only upon the approval of the Board of Ma nagement (Article 38.2.b of the Decree 
No.187/2004/ND-CP). Shares transfer must be carri ed out at the shareholding company or at 
intermediate financial institu tions via public auction.  
- Shareholders who possess preferential voting shares (if any) are not allowed to transfer such 
shares to other investors. 
- In the first three years from the date when bus iness registration is granted to the shareholding 
company, common stocks of founding shareholde rs could be transferred to non-shareholders 
upon the approval of the General Meeting of  Shareholders.  The General Meeting of 
Shareholders makes decision on these transfers of  shares without the votes of the shareholders 
who intend to sell their shares. 
Share offers and transfers are subject  to the current Law on Enterprises. 
Regarding the State's shares in equitized enterp rises, the State can transfer its shares as founding 
shareholders in the first three years; and after that as other common shareholders.  Share transfers 
made by the State is subject to th e above-mentioned general regulations. 
If the shareholders being the State or SOEs want to sell more of their shares, the sales will be taken 
place in form of public auction at intermediate fi nancial institutions or securities exchange.  The 
Government of Viet Nam encourage eligible equiti zed enterprises of which the State holds controlling 
shares to list in the securities exchange. WT/ACC/VNM/36 
Page 20  
 
 Question 44  
Paragraph 44 of WT/ACC/SPEC/VNM/5 identifi es telecommunications as a sector where the 
state "should retain special interest or controllin g shares when equitizing".  Does this policy 
extend to value-added telecommunications firms?  Please provide a list of state-owned operators 
subject to this policy, the level of equitization achieved to date among these operators, and 
future equitization plans for these operators. 
Answer
: 
The Prime Minister's Decision No. 155/2004/Q Đ-TTg also applies to the equitization of State-owned 
existing facilities-based telecommunications providers. 
As the above-mentioned Decision has just been recently promulgated (the end of August 2004), 
Viet Nam is now in the process of classification and assessment of all telecommunications providers 
for equitization. The detailed informatio n will be provided as soon as available. 
Question 45  
Paragraph 50 of WT/ACC/SPEC/VNM/5 that 20 03 Law on State-owned Enterprises provides 
for the "progressive elimination of subsidies gr anted to State-owned Enterprises (freezing and 
elimination of debts and preferential credits) and limited the involvement of the State in asset 
evaluation and approval in the mobilization of capital."  Please list and describe the subsidies the 2003 law specifies for "progressive eliminatio n."  Please provide the timetable for subsidy 
elimination set by the law. 
Answer
: 
- Paragraph 50 of the document WT/ACC/SPEC/VNM /5 merely presents illustrative examples 
for legal principles concerning business operation of State-owned enterprises as stated in the 
Law on State-owned Enterprises of 2003. Current ly, there is no longer any subsidy that only 
restricted to SOEs.  The Law on SOEs does not include any detailed provisions for that 
principle regarding subsidies to SOEs.  Hence,  the revised law does not provide for concrete 
actions relating to the progressive elimination of subsidies granted to State-owned Enterprises.  
- Asset valuation:  according to current regulati ons, the Government does not intervene in asset 
valuation process.  The value of an asset is determined by the market and asset purchases and sales are required to be conducted through co mpetitive tendering and are decided by the 
enterprises themselves.  Asset valuation is provi ded by consultancy orga nizations and valuation 
centres subject to market mechanism and via auction. 
- The Law on State-owned Enterprises of 2003 decen tralizes decision-making power in regard of 
capital mobilization in SOEs as follows:  the Bo ard of Management (if applicable) or the 
representative of the owner of the State equity makes decision on capital mobilization if the value of proposed project's capital is greater than  the enterprise's chartered capital, while other 
projects are decided by the General Director or  the Director of the enterprise (in accordance 
with the Decree No. 199/2004/ND-CP on Regulati on on Financial Manageme nt of State-owned 
enterprises and Management of State equity in other enterprises). 
Question 46  
What "limits" does the law place on the State's involvement in asset evaluation and approval of 
capital mobilization? How does the law allow the State to intervene in the management of state-
owned enterprises?  WT/ACC/VNM/36 
 Page 21 
 
 
Answer : 
With respect to "limits" placed by the law on the State's involvement in asset evaluation and approval 
of capital mobilization: 
- Asset valuation:  according to current regulati ons, the Government does not intervene in asset 
valuation process.  The value of an asset is determined by the market and asset purchases and 
sales are required to be conducted through co mpetitive tendering and are decided by the 
enterprises themselves.  Asset valuation is provided by consultanc y organizations and 
valuation centres subject to market mechanism and via auction. 
- The Law on State-owned Enterprises of 2003 decentralizes decision-making power in regard 
of capital mobilization in SOEs as follows:  the Board of Management (if applicable) or the 
representative of the owner of the State equity makes decision on capital mobilization if the 
value of proposed project's capital is greater than  the enterprise's chartered capital, while other 
projects are decided by the General Director or the Director of the en terprise.  (in accordance 
with the Decree No. 199/2004/ND-CP on Regulation on Financial Management of State-owned enterprises and Management of State equity in other enterprises). 
- The Law on State-owned Enterprises of 2003 stat es that the Government is the representative 
of the State ownership, and the Board of Manage ment is the direct representative of the State 
ownership in SOEs.  The Government does not directly intervene in enterprises' business 
operation but confines its role to managing the State equity in enterprises, supervising and 
evaluating the efficiency of the State capital employment in SOEs in accordance with uniform 
and consistent criteria. 
- The State is responsible to assure enterprises ' autonomy and self-accountability in conducting 
business.  It does not intervene in issues under the authority of the Board of Management, the General Director, the Director and the management bodies of SOEs.  Only certain organisations and individuals w ho are mandated to represent the State ownership in SOEs are 
entitled to make decisions on certain issues re lating to the SOEs in the same manner as 
shareholders in joint-stock companies, capital contributors in limited liability companies and 
sole owner in private companies.  The decision-making power of these organisations and individuals are stipulated as follows: 
- Director of state-owned enterprise which do es not have Board of Management is entitled 
to make decisions on investment projects of values less than 30 per cent of the total 
remaining asset value in the accounting book of  the enterprise or of values in smaller 
proportion than that specified in the ente rprise's Charter and on borrowing, lending, 
leasing and other economic contracts of values less than the enterprise's charter capital.  
- Board of Management in State-owned ente rprise is entitled to make decisions on 
investment projects of values less than 50 per cent of the total remaining asset value in the 
accounting book of the enterprise or of values in smaller proportion than that specified in 
the enterprise's Charter and on borrowing, le nding, leasing and other economic contracts 
of values greater than the enterprise's charter capital. 
- Investment projects or economic contracts of  values over the above-mentioned levels are 
also signed by the legal representative of the enterprise upon the approval of the State 
owner. 
- The decision-making authority in an equitized SOE rests upon its Board of Management. 
Question 47  In paragraph 50, WT/ACC/SPEC/VNM/5 foresees the restructuring of "public-interest 
enterprise" through a new "Government Decree on Production and provision of Public Services."  What changes are under considerat ion?  What government agency or agencies 
would determine if goods and services are "soc ially and economically essential, or their WT/ACC/VNM/36 
Page 22  
 
 production was not viable under market conditi ons?" What criteria would be used to make 
such determinations? 
Answer
: 
The most important change foreseen in the draft Decree which is under consid eration is to expand the 
number of enterprises participating in the production and distribution of public goods and services. In 
order to do so, the State will procure these goods and services through orders and bidding. 
Criteria for identifying public goods and services are as follows: - Goods and services which are essential to economic-s ocial life of the whole population or of a 
community of a region, or to the national security and defence (these criteria would be 
detailed in the draft Decree and would c over sectors such as production of weapons, 
explosives, chemicals for the national security and defence; electricity supply and distribution 
in rural areas, in mountainous and remote area s, in islands or borderlands; management and 
operation of small and medium irrigation works; production and preservation of plant 
varieties/seeds and animal breeds, protection of natural forests, etc.) 
- Goods and services that may not be  profitable to produce and distribute. 
- Goods and services that are ordered or put up in a tender at the price or fee that is regulated 
by the State. 
Upon these criteria, Provincial People's Committee, ministries, agencies would propose the list of 
particular goods and services to the Ministry of Pl anning and Investment to submit to Government for 
the official list of public goods and services. 
Question 48  
When will this decree be provided to the Working Party? Answer
: 
The Decree shall be submitted to the Working Party as soon as it is promulgated and the translation is 
completed.  
Question 49  
We recommend that in the interest of transparency and clarity, the section on State-Owned 
Enterprises be combined with the section on State Trading Enterprises with a separate section on Privatization (equitization). 
Answer
: 
As it is a technical matter, Viet Nam would like the Secretariat to consider this suggestion in 
accordance with the practice in other accessions.  
Question 50  We will request a commitment for a combined se ction on SOEs and STEs  and will provide draft 
language for Viet Nam's consideration.  WT/ACC/VNM/36 
 Page 23 
 
 
Answer:  
Viet Nam looks forward to receiving the draft language as soon as possible. 
- Pricing Policies 
Question 51  Paragraph 51:  There are price controls on tele communications services. In this context, how 
will services provided cross-border (Mode 1) be treated? 
Answer
: 
In principle, Viet Nam respects the autonomy of businesses to set prices as well as the competition in 
terms of prices among telecom providers in a fair manne r (i.e. consistent with the applicable laws and 
regulations).  
Price controls only apply to local subscription charge, charge for using local fix subscription line, 
universal service charge, and services charge imposed by those providers with dominant market share, 
regardless the modes of supply.  The service charges then must be submitted to the Ministry of Posts and Telematics for consideration a nd approval on the basis of appropr iate costs and in consistency 
with general regulations on financ ial controls (details are provided in the Prime Minister's Decision 
No. 217/2003/Q Đ-TTg dated 27 October 2003) 
Question 52  
We would be grateful for the inclusion of the following text after paragraph 52 of 
WT/ACC/SPEC/VNM/5: 
52A.  The representative of Viet Nam said that cotton and sugar processing 
plants were required to purchase dom estic raw cotton and sugar cane at 
minimum prices and that selected trading enterprises received interest rate 
subsidies to encourage purchases from domestic producers at times of price weakness aimed at supporting the internal prices of pork, sugar and rice. 
Answer
: 
The request of inclusion of the above text after pa ragraph 52 should be addressed to the Secretariat for 
consideration.  Viet Nam does not oppose to the incl usion of the mentioned text if it deems necessary 
to do so.  We, however, would note that this issue would be more appropriately included in the section 
on agricultural policies to avoid confusion.  
Question 53  
We are pleased to see that in paragraph 56 of WT/ACC/SPEC/VNM/5 the square brackets have 
been removed from the commitment to apply any price controls in a WTO-consistent fashion. 
We would wish to see the square brackets removed from the commitment to publish any 
changes to the list of goods and services subject to State price control in the Official gazette. 
Answer : 
Viet Nam agrees to remove the brackets. WT/ACC/VNM/36 
Page 24  
 
 - Competition Policy 
Question 54  Do the provisions of the new Competition Law ex plicitly address whether wholly or partially 
State-owned firms retain under law competitive privileges compared to other enterprises? 
Answer
: 
The Competition Law applies to enterprises of all forms of ownership.  There is no provision of this 
Law addressing that wholly or partially State-ow ned firms retain under law competitive privileges 
compared to other enterprises 
Question 55  
Paragraph 58 of WT/ACC/SPEC/VNM/5 indicates the new Competition Law can be 
downloaded from the Ministry of Trade websit e.   Please provide the URL for the English-
language version. 
Answer : 
An English-language version of the new Compe tition Law can be downloaded from the following 
address:  http://www.mot.gov.vn/en/Files/1727D5D2C1F.PDF  
Question 56  What is the process outlined in the new competit ion law by which private and/or equitized firms 
can seek redress for anti-competitive behaviour by state enterprises? 
Answer:
 
Private and/or equitized firms can, under Article 58(1), file a complaint directly to Competition 
Administration Agency when they believe that thei r legitimate rights and interest are being violated 
by anti-competitive behaviours of state-owned enterprises.  
The Competition Administration Agency is respons ible for initiating a preliminary investigation 
(Article 59 and 86).  The Competition Administration Agency will make a decision on an official investigation if there is an evidence on the violati on of the Competition Law or otherwise suspend the 
investigation (Article 87). 
After finishing the official investigation, the Competition Administration Agency will transfer the 
investigation report and file to the Competition Council (Article 93). 
The Competition Council will set up a Tribunal for handling the competition case and the Tribunal 
will decide either to open an hearing, or to retu rn the file to the Competition Administration Agency 
for supplementary investigation, or suspend the handling of that specific competition case 
(Article 99). 
Upon the decision on opening a hearing, a hearing w ill be held openly and the Tribunal will discuss 
and cast secret ballots and make a decision by majority after having heard the parties at the hearing presenting their opinions and arguments (Article 104).  WT/ACC/VNM/36 
 Page 25 
 
 
Decision on resolution of competition case will take lega l effects in 30 days after the signing date if 
during that period of time no complaint has been lodged against it in accordance with Article 107 
(Article 106). 
If any parties do not agree with the decision on resolution of competition case in whole or in parts, 
they can lodge a complaint with the Competition Council (Article 107). 
If the complainants do not agree with the decisi on on resolution of complaint by the Competition 
Council, they can initiate an administrative law su it to the competent provincial-level people's courts 
against one part of or the whole decision on resolution of complaint (Article 115).  
Question 57  
We reserve the right to seek commitment language for this section. 
Answer : 
Viet Nam takes note of the above comment and would also like to note that the WTO has not 
developed rules governing competition policy. 
III. FRAMEWORK FOR MAKING AND ENFORCING POLICIES 
Question 58  
In paragraph 62, the draft Report states that "It (the central Government) exercised 
administrative power at all levels of the ad ministrative system, i.e. central government, 
provinces and cities directly under the central government, districts, precincts and ward communes."  In addition to this, it also st ates that "The Government ensured uniform 
nationwide implementation of the legal system."  We would like to seek clarification on the concrete mechanism of ensuring such unifo rm implementation of the legal system. 
Answer
: 
According to Article 18(2) of the Law on Governme nt Organization, the government exercises tasks 
and power in deciding direction measures, in exam ining the implementation of the constitution, laws 
and governmental decisions of State agencies, ec onomic organizations, social organizations and 
people's armed forces and citizens; in organizi ng and guiding propagation and education of the 
Constitution and laws and in reporting to the National Assembly on prevention against legal 
infringement and crime.  Furthermore, the lega l enforcement mechanism for local authorities is 
stipulated in the Law on People's Council and Peopl e's Committee Organization and the issuance of 
legal documents to implement th e documents of the National Asse mbly and the National Assembly 
Standing Committee (central authorities) is laid  down in the Law on the Promulgation of Legal 
Normative Documents and the Law on the Promulga tion of Legal Normative Documents of People's 
Councils and People's Committees.  None of admi nistrative authorities from the provincial level 
downwards is permitted to issue provi sions contrary to those issued by the Central Government.  The 
People's Procuracies of all levels are responsible for supervising the promulgation and implementation 
of legal documents of local administrative agenci es to ensure the uniform enforcement of laws. 
Question 59  
In paragraph 65, the draft Report states that "V iet Nam's legislation neither provided for direct 
application of international treaties in the nati onal legal system nor did it ban the direct 
application of such treaties.… many (but no t all) Vietnamese legal documents included a 
general provision that "in case that treaties to which Viet Nam is a party stipulate otherwise, the WT/ACC/VNM/36 
Page 26  
 
 provisions of those treaties shall prevail".… th e new Law on Treaties would clarify further the 
hierarchical order of treaties in the legal system  of Viet Nam." Furthermore, in paragraph 76, 
Viet Nam made a commitment that "Viet Nam would ensure uniform application of its commitments upon accession to the WTO.  Hi s Government would implement measures as 
necessary to carry out its obli gations required by the WTO and the obligation of Viet Nam 
stipulated in its accession Protocol." Since how the WTO Agreements are to be adopted in the 
domestic legal regime does not seem to be clea r by these explanations, we would like to seek 
clarification on this point and it should be reflected in the Report. 
Answer
: 
Viet Nam will strictly observes the WTO Ag reements through the following mechanisms: 
1. Viet Nam's legislation on international treaties (Articles 23 and 24 of the Ordinance on 
Conclusion and Implementation of Internati onal Treaties of 20 August 1998) provides for 
Viet Nam's commitments to implement internati onal treaties to which Viet Nam is a party. 
Furthermore, as a party to the 1969 Vienna Convention on the Law of Treaties, Viet Nam is liable to observe this Convention and obligated to ensure the implementation of international 
commitments made by Viet Nam, includi ng commitments within the WTO framework. 
2. WTO Agreements shall prevail in case of c onflicts between the provisions of domestic legal 
documents and the provisions of WTO Agreem ents to which Viet Nam is a party (in 
accordance with the provisions of many La ws, Ordinances and Decrees concerning the 
prevailing of international treaties). 
3. Amendment, supplement, annulment or prom ulgation of national legal documents as required 
for the implementation of WTO Agreements shall be carried out (in accordance with 
Paragraph 5 Article 24 of the Ordinance on C onclusion and Implementation of International 
Treaties of 1998). 
The draft Law on Conclusion, Accession and Implemen tation of International Treaties, scheduled to 
be submitted to the National Assembly for approval in May 2005, stipulates measures to ensure the 
implementation of international treaties in the following directions: 
- International treaties shall prevail in case of c onflicts between the provisions of national legal 
documents and the provisions of internationa l treaties on the same subjects (it will not be 
necessary to repeat this provision in every sp ecialized legal documents to be promulgated 
after the entry into force of this draft law). 
- International treaties in force with respect to Viet Nam shall be directly applied in accordance 
with the decisions of competent authorities. 
- The competent authorities shall make decisions or recommendations on the promulgation of 
such legal documents as required for the im plementation of international treaties. 
Question 60  
Paragraph 65:  Has the Law on Treaties been su bmitted to the National Assembly (planned for 
end 2004)?  What will be the status of the WTO Agreements in the domestic legal order? 
Answer
: 
The draft Law on Conclusion, Accession and Implem entation of International Treaties was submitted 
to the National Assembly for comments during its 6th session in November 2004 and is currently 
being completed for submission to the National Assembly for approval at its 7th session scheduled to 
be held in May 2005.  WT/ACC/VNM/36 
 Page 27 
 
 
Regarding the status of WTO Agreements in the Vietnamese legal system: 
Existing provisions and present practices: - In most of Laws and Ordinances enacted in Viet Nam governing various issues, the provision 
of giving priority to the application of international treaties is common wherein it is stated that in case  that treaties to which Viet Nam is  a party stipulate otherwise, the provisions of 
those treaties shall prevail. 
- Article 23 and 24 of the Ordinance on Conclu sion and Implementati on of International 
Treaties of 20 August 1998 guarantee the implem entation of international treaties with the 
key provisions as follows: 
- Viet Nam shall strictly observes internationa l treaties it has concluded or participated. 
- The agencies that have made recommendation on the conclusion of international treaties 
shall have to submit to the Government pl ans on the implementation of the concluded 
international treaties. 
- The concerned ministries or branches shall, within their functions, tasks and powers, have 
to implement the international treaties alread y concluded by the Socialist Republic of 
Viet Nam. 
- In cases where an international treaty is  breached, the agency that has made 
recommendation on the conclusion of such tr eaty or the concerned State agency shall 
coordinate with the Ministry of Foreign Affairs in recommending to the Government necessary measures to protect the legitimate ri ghts and interests of the Socialist Republic 
of Viet Nam. 
- Annually and when requested, the agencies that have made recommendation on the 
conclusion of international treaties and the relevant State agencies shall submit to the 
Government and the State President reports  on the implementation of the concluded 
international treaties. 
- In cases where the implementation of an international treaty requires that legal 
document(s) of the Socialist Republic of Vi et Nam be amended, supplemented, annulled 
or promulgated, the agency that has made recommendation on the conclusion of such international treaty and the relevant State agen cies shall by themselves have to or propose 
the competent State agencies to  promptly amend, supplement, annul or promulgate such 
legal document(s). 
- The draft Law on Conclusion, Accession and Impl ementation of International Treaties has the 
key provisions as follows: 
- In the event of conflicts between provisions of  an international treaty to which Viet Nam 
is a party and those of domestic legal documen ts regarding the same subject, the provision 
of the international treaty shall prevail (this pr ovision shall not be repeated in individual 
specialized legal documents enacted after the date of effect of this Law); 
- Viet Nam shall strictly observes internat ional treaties to which it is a party. 
- Direct applicability of some provisions of in ternational treaties is possible in accordance 
with decisions made by the State authorities and if it is impossible,  the relevant authority 
when deciding to sign, ratify or accede to t hose international treaties must enact legal 
documents to implement such treaties. 
In short, the common spirit of the existing legisl ation, present practices as well as the draft Law on 
Conclusion, Accession and Implementation of Interna tional Treaties is that Viet Nam shall strictly 
observes the WTO Agreements which Viet Nam a ccedes to and agrees to be bound by and in the 
event of a conflict between a provision of any of these WTO Agreements and that of domestic legislation, the provision of that WTO Agreement shall prevail.  WT/ACC/VNM/36 
Page 28  
 
 Question 61  
Paragraphs 66 and 67 of SPEC/VNM/5 describe a court system that is subordinate to the 
executive and legislative branches of government.  Does Viet Nam's law require that all judges 
be members of the Communist Party of Viet Nam? 
Answer
: 
According to Article 2 of the Constitution of 1992 that was amended and supplemented in 2001, the 
power of the Socialist Republic of Viet Nam is uniform, and the State bodies are assigned and coordinate with one another in exercising th e legislative, executive and judicial rights. 
According to Article 5(1) of the Ordinanc e on Judges and People's Jurors (Ordinance 
No. 02/2002/PL-UBTVQH11 dated 4 Oc tober 2002), "Viet Nam's citizens who are faithful to the 
fatherland and the Constitution of the Socialist Rep ublic of Viet Nam, good in moral sense, upright, 
honest, determined to protect the socialist legal sy stem, having legal Bachelor's degree, being trained 
about judging, experienced, capable of doing judg ement in accordance with the Ordinance, good in 
health to fulfil tasks assigned can be selected and designated as judges". 
Question 62  
Since the courts are subordinate to Viet Nam's po litical leadership, what guarantees exist that a 
private company in an economic dispute with a government entity or a state-owned enterprise would receive an impartial hearing? 
Answer
: 
Viet Nam's legal system has various provisions to  ensure impartial hearing in economic cases as 
follows: 
Article 132 of the Constitution states: 
"The defending right of the accused is assured. The accused can defend by 
himself/herself or request a nother person to defend him. 
The lawyer organizations are set up to help the accused and the persons concerned to 
protect their legitimate rights and inter ests and help protect the socialist legal 
system." 
The Civil Procedures Code promulgated in 2004 provi des for the principle on the equality in rights 
and obligations in civil procedures, by which all of  agencies and organizations are equal, regardless of 
the form of organization, the form  of ownership and other issues (Ar ticle 8).  The principle on judging 
independence and only abiding by the laws of judges a nd the People's Jurors is set forth in Article 12 
of the Civil Procedures Code and Article 4 of the Ordinance on Judges and People's Jurors.  In order 
to ensure impartial judgment made by judges and Pe ople's jurors, the Civil Procedures Code provides 
that they are not allowed to judge if valid reasons are found to show that they might be prejudiced to 
fulfil their tasks and authority (Article 16).  Artic les 46 and 47 of the Civil Procedures Code explicitly 
lay down the cases where judges and People's jurors  have to refuse judgement or are changed to 
assure impartial hearing. Related persons are allowe d to ask for changing judges and People's jurors if 
proof is found to show that they might not be impa rtial to judge (Article 58).  The Civil Procedures 
Code also clearly stipulates the supervision on le gal compliance in civil procedure, by which  the 
People's Procuracies execute the requesting, appea ling and petition rights in accordance with the laws 
to ensure that civil cases are settled timely and in co nsistency with the laws.  Furthermore, the Civil  WT/ACC/VNM/36 
 Page 29 
 
 
Procedures Code provides for the complaint and denouncement mechanism in civil procedure in 
which individuals, agencies and organizations can  complain and denounce ille gal acts of persons who 
carry out civil proceedings. 
Question 63  
According to Paragraph 70 of WT/ACC/SPEC/VNM/5, a court of first instance hearing is 
conducted by a "council of trial comprising two judges and one juror, deciding by majority 
vote."  How is the "council of trial" selected?  Do plaintiff and defendant have any role in the 
process? 
Answer : 
According to the Law on the Organization of People's Courts, the tribunal presidents of courts at all 
levels are entitled to organize trial activities in thei r courts.  The power  to assign judges and people's 
jurors for specific cases rests upon the tribunal pr esidents. Related persons are not allowed to 
participate in the process of forming the Council of Trial.  They are, however, allowed to request for 
changing judges and People's jurors if having evidence to show that the latter might not be impartial 
in performing their duties (Articles 46, 47, 58, 213 and 214 of the Civil Procedures Code.) 
In addition, Article 172 of the Civil Procedures Code provides that: 
"The tribunal president must assign one j udge for the case within three working days 
from the date of handling the case. 
During the process of settling the case, if th e judge assigned is not able to continue 
his/her duties, the tribunal president must assign another judge to perform such duties. If the stand-in judge  is not availabl e while the case is be ing settled, the case 
must be settled again from the beginning"  
Question 64  
Paragraph 70 of SPEC/VNM/5 indicates that the loser of a court of first instance decision has 
only 10 days from the date of the court's declarat ion to file an appeal.  Does Viet Nam intend to 
provide a longer period for the loser of a court of  first instance decision to file an appeal? 
Answer
: 
According to the Civil Procedures Code promulga ted in 2004, the duration for appeal against 
judgement made by the court of first instance is 15 days from the date of giving the judgement.  For 
related who are absent from the trial, the duration is counted from the date when the judgement is 
given to them or listed. In cases where the appeal is  sent via post, the duration for appeal is counted 
from the date when the sending post stamps on the envelop (Article 245). 
Question 65  Paragraph 71 states that Article 11 of the Ordinance on Procedures of Settlement of 
Administrative Cases issues relating to customs, taxes, licensing fees and charges were all under 
the purview of administrative courts.  What courts are available for appeals from administrative decisions in other areas covered by WTO provisions, e.g., trade remedy rulings, 
actions dealing with quota administration, licensi ng (other than fees) and including the granting 
of activity licensing, TBT and SPS rulings on co nformity with technical regulations, corporate 
registration, actions of state trading enterprises, intellectual property rights, etc.? WT/ACC/VNM/36 
Page 30  
 
 Answer
: 
According to the current provisions of Viet Nam's laws, both administrative decisions and acts can be 
challenged through legal proceedings with administ rative courts (belong to Viet Nam's system of 
People's courts) after the petition has been filed for the first time to agencies and individuals having 
administrative decisions or acts which are being co mplained.  Therefore, administrative decisions 
concerning the contents mentioned in the questi on can be challenged at administrative courts. 
Question 66  
Referring to paragraph 72 of WT/ACC/SPEC/VNM/5 , is Viet Nam planning legislative changes 
to allow full use of administrative appeals prior to recourse to the courts?  Would any such new 
law ensure that participation in one pro cess would not preclude recourse to the other? 
Answer : 
The draft Law on Complaint and Denunciation (amended)  has recently been added to the Program for 
Enacting Laws and Ordinances in 2005 of the Na tional Assembly Legislature XI (2002-2007) in 
accordance with the Resolution of the National Assembly No. 35/2004/QH11 dated 25 November 2004.  The Government has requested the National Assembly to consider and pass the 
Law on Complaint and Denouncement (amended) at its 8
th Session in October 2005.  The National 
Assembly will make its decision in its 7th Session in May 2005.  
Question 67  
We would appreciate advice from Viet Nam on it s consideration of allowing recourse to both 
administrative and legal appeals referred to in paragraph 72 of WT/ACC/SPEC/VNM/5. 
Answer : 
Viet Nam is currently in the process of studying to improve laws so as to allow parties involved in 
administrative disputes to bring administrative disput es before the court to be settled at any stage of 
the process of settling administrative complaints. 
Question 68  
Paragraph 73 indicates that "judgments or decisi ons of the People's court" are "enforced in 
accordance with the Ordinance on implementation  of civil judgments."  How would Viet Nam 
deal with the situation in which the loser of a ci vil economic case failed to comply with a court's 
judgment? 
Answer : 
According to the Ordinance on Civil Judgmen t Execution (Ordinance No.13/2004/PC-UBTVQH11 
dated 25 December 2001), judgment creditor (the part y in whose favour the judgment was made) is 
entitled to ask the judgment execution authority to issue a writ of judgment execution if judgment 
debtor (the party against whom judgment executio n is sought) did not voluntarily pay the judgment. 
The judgment execution authority is entitled to take  compulsory measures against judgment debtors 
who are able to pay the judgment but not voluntary  to do so within the stipulated time-limit. 
Stipulated compulsory measures consist of account deducting; money deducting; withdrawing 
valuable documents of the judgment debtor; judgm ent debtor's income deducting; property seizing; 
forcing obligations of transferring property, m oving houses and transferring the land use right and 
forcing to do or not to do certain activities as stat ed in the verdict or in the court's decision. The  WT/ACC/VNM/36 
 Page 31 
 
 
judgment execution staff are allowed to take com pulsory measures timely as set fourth in the 
Ordinance on Civil Judgment Execution in cases wh ere they are necessary to prevent judgment 
debtors from dispersing or destroying property or not implement the judgement.  In particular, the 
Criminal Code provides for crime against implemen tation of the verdict according to which those who 
do not implement the Court's effective verdict or decision will, in addition to having been taken 
necessary compulsory measu res against, be sentenced three years' non-imprisonment punishment for 
re-education or sentenced six months to three years' imprisonment. 
Question 69  
Paragraph 74 of WT/ACC/SPEC/VNM/5 summarizes arbitration procedures in Viet Nam.   
Can a private company seek arbitration to resolv e an economic dispute with the government or 
state-owned enterprise?  Has the government or state-owned enterprises consented to 
arbitration to solve a dispute?  Has an arbitration panel ever ruled against a government entity or state-owned enterprise? 
Answer
: 
According to Article 1 of the Ordinance on Co mmercial Arbitration, the Ordinance provides 
regulations on the organisation of arbitration and the conduct of arbitration proceedings to resolve 
disputes arising from commercial activities upon agreemen t of the parties involved.  Both private and 
state-owned enterprises can be the parties to the process of settling disputes at domestic and foreign 
arbitration tribunals.  In addition, the Ordinance has no discriminatory treatment in handling at the 
arbitration tribunals. 
As stipulated by laws, arbitration proceedings are not open.  Therefore, statistics as requested are not 
available. 
Question 70  
According to paragraph 74 of WT/ACC/SPEC/VNM/5, "domestic and international arbitration 
judgments had immediate effect in Viet Nam."  Wh at is the basis in law for this statement?  
How are arbitral judgments enforced?  Since creati on of the domestic arbitration system, have 
arbitration decisions been enforced?  Have arbitration decisions against the government or 
state-owned enterprises been enforced?  If so, please provide case examples. 
Answer : 
Please revise the paragraph as follows: As for awards made by domestic arbitrators, Ar ticle 5 of the Ordinance on Commercial Arbitration 
states "In circumstances where the agreement on arbitr ation has been made, if a party initiates legal 
proceedings with the court, then the court must refuse to handle the case, except for the cases where 
the agreement on arbitration is void." According to Article 44.4, arbitration awards take effect from 
the date of announcement. Article 45(1) of the Ordinance on Commercial Arbitration provides that 
"Arbitration awards can be announced at the final se ssion or afterwards, but within 60 days from the 
date of closing the final session at the latest.  The complete arbitration awards in writing must be sent 
to the parties immediately after the date of anno uncement."  The party that requests the enforcement 
of arbitration awards must file a request for aw ard enforcement in writing to a provincial judgment 
execution agency if the awards made by domestic arbitrators are not voluntarily carried out within 
30 days from the date of announcement. The detaile d procedures are set forth in the Ordinance on 
Civil Judgment Execution.  Since the establishment of the domestic arbitration system, a number of 
arbitration awards have been carried out. WT/ACC/VNM/36 
Page 32  
 
 Question 71  
Paragraph 74 of WT/ACC/SPEC/VNM/5 notes that if a party to an arbitration proceeding did 
not accept the decisions of the arbitrators, it co uld request an authorized People's Court to try 
the case.  Could the People's Court decline to try the case? 
Answer
: 
Please revise the paragraph as follows: 
According to the Ordinance on Commercial Arbitrati on, awards made by domestic arbitrators can be 
nullified by the Court in certain cases which are lis ted in the reply to Question 72.  In cases where  
arbitration awards are nullified and the parties invol ved have no other agreement, the dispute can be 
brought to the court. 
Question 72  Paragraph 74 also indicates that Ordinance No. 08/2003/PL-UBTVQH on Commercial 
Arbitration stipulated that decisions of an arbitrator would be final and binding, unless 
nullified by a court according to the provision s of this Ordinance.  Please identify the 
circumstances under which a court could nullify the decisions of an arbitrator. 
Answer
: 
According to Article 54 of the Ordinance on Co mmercial Arbitration, a court could nullify the 
arbitration awards in the following cases: 
- An agreement on arbitration does not exist; 
- The agreement on arbitration is void under the Ordinance; 
- The members of the arbitration tribunal and ar bitration proceedings ar e not in consistency 
with the agreement of the parties accordi ng to the provisions of the Ordinance; 
- The dispute does not fall under the authority of the arbitration tribunal. In cases where the 
arbitration award is partly not under the aut hority of the arbitration tribunal, it will be 
nullified; 
- The requesting party proves that there is an arbitrator violating the obligations of the 
arbitrator as laid down in the Ordinance; and 
- The arbitration award is contrary to the public in terests of the Socialist Republic of Viet Nam. 
Question 73  
Does Viet Nam intend to become a party to the Washington Convention on the Settlement of 
Investment Disputes?  If so, When? 
Answer : 
With technical assistance from some Working Party Me mbers, Viet Nam is considering to become a 
party to the Convention. 
Question 74 
We would like to propose the following commitment  language for this section.  We reserve the 
right to propose further modifications to commitment language for this section.    WT/ACC/VNM/36 
 Page 33 
 
 
"The representative of Viet Nam confirmed that the provisions of the WTO Agreement would 
be applied uniformly throughout its customs terr itory, including in SEZs and other areas where 
special regimes for tariffs, taxes and regulatio ns were established and at all levels of 
government.  The Working Party took note of this commitment." 
"The representative of Viet Nam further confirmed that it would revise its relevant laws and 
regulations so that its relevant domestic laws and regulations would be consistent with the 
requirements of the WTO Agreement on proce dures for judicial review of administrative 
actions.  He further stated that the tribunals  responsible for such reviews would be impartial 
and independent of the agency entrusted with ad ministrative enforcement, and would not have 
any substantial interest in the outcome of the ma tter.  The Working Party took note of these 
commitments." 
Answer : 
As the proposed language is not final, Viet Nam is willing to discuss in details the commitment 
language for this section. 
Question 75  
Paragraph 77:  Could a commitment paragraph be added to this section?  We suggest: 
"The representative of Viet Nam confirmed that  the provisions of the WTO Agreement should 
be applied uniformly throughout the Vietna mese customs territory, including in regions 
engaging in border trade or frontier traffic, special economic zones, and other areas where 
special regimes for tariffs, taxes and regulations were established. 
He added that, when informed of a situation where WTO provisions were not being applied or 
were applied in a non-uniform manner, centr al authorities would act to enforce WTO 
provisions without requiring affected part ies to petition through the courts." 
Answer : 
Viet Nam agrees with paragraph 1 of the commitment  proposal that:  "The representative of Viet Nam 
confirmed that the provisions of the WTO Agreem ent should be applied uniformly throughout the 
Vietnamese customs territory, including in regions e ngaging in border trade or frontier traffic, special 
economic zones, and other areas where special re gimes for tariffs, taxes and regulations were 
established." 
However, Viet Nam does not agree with paragraph 2 of the commitment proposal since in the WTO, 
only the Dispute Settlement Body is entitled to deci de whether a Member is in violation of the WTO 
Agreements. 
IV. POLICIES AFFECTING TRADE IN GOODS 
- Trading Rights  
Question 76  We thank Viet Nam for the improvements in its proposed commitments on trading rights, set 
out in Annex 2 of Table 1 of WT/ACC/SPEC/VNM/5.  We are pleased to see that Viet Nam now 
proposes trading rights from accession for meat, dairy products, citrus fruits, maize, wheat and 
plant oils.  However, we are disappointed to no te that there are still a number of areas that 
would be unbound (including: rice; tobacco; petrol eum; motion picture film; printed books, WT/ACC/VNM/36 
Page 34  
 
 newspapers, brochures and leafle ts; printing machines; records, tapes and other recorded 
media), while trading rights for certain goods (i ncluding wine, sugar and motor vehicles) would 
not commence until 2010.  We note that Viet Na m makes commitments on joint ventures, but 
that it is only from 1 January  2009, that 100 per cent foreign directly invested enterprises will 
be allowed to engage in import and export activities. 
- We urge Viet Nam to reconsider the time frames proposed and make commitments so 
that, from the date of accession, any natura l or legal person, domestic or foreign, will 
have the right to be the importer or expo rter 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, domestic or 
foreign, who has the right to distribute them. 
Answer
: 
Viet Nam has adjusted its commitments on trading rights as detailed in the Schedule of Commitments 
on import and export trading rights in Annex 2 of this document. 
Question 77  
With regard to equipment for mineral exploitation  and processing of agricultural products and 
aquatic products mentioned in the sixth line from  the bottom of paragraph 82, we would like to 
clarify the detail of such equipment. 
Answer : 
The followings are some examples of such equipment: 1. All kind of soil and stone borer; excavator; bulldozer; gas compressor, truck for carrying ore; 
ore feeder, crusher (jaw crusher, hammer crusher,  rotor crusher, cone crusher, roll crusher); 
slurry pump; flotation machine; magnetic separator ; electric separator; filter; thickener; feeder; 
mill; spiral separator, centringal separator; flo cculant dosing; autoclave digester; acid pump; 
metallurgical furnaces; ore analyse equipmen t; combined cutter; dense media separator; 
gasproff transformation station; other kind of excavators; electric locomotive TY7H; locomotive of a power exceeding 1,000 CV; 
2. Excavator (for multipurpose using and specialized  in agriculture and forestry) of a power 
exceeding 35 CV; internal combustion engin es of a power exceeding 150 CV including  
hydraulic machine for fishing boat; agricultu ral processing line (milk, coffee, meat, fruit and 
vegetable), high speed separated equipment (e xceeding 4,000 v/minute); cattle-feed tablet 
machine exceeding 6 T/hour.      
Question 78  
Many Members raise the issue pertaining to tradin g rights. In particular, the right to import 
does not seem to be recognized as "autonomous righ t" and it has a meaning only in relation to 
the right to distribution.  Many Members take is sue with the Vietnamese side on such treatment 
of trading rights by Viet Nam from the point of its consistency with Articles 3 and 11 of 
GATT 1994.  We would like to seek once again a detailed explanation by the Vietnamese side on this point from the legal point of views.  WT/ACC/VNM/36 
 Page 35 
 
 
Answer : 
Viet Nam has adjusted its commitments on trading rights as detailed in Annex 2 of this document, 
whereby the trading rights have been addressed towards being recognised as an "autonomous right". 
Question 79  
With regard to paragraphs 85 and 86, it is indi spensable that upon the Vietnamese accession to 
the WTO, foreign enterprises as well as Vietna mese Joint Venture companies with foreign 
enterprises are entitled to engage in commercial activities in Viet Nam with the same rights as 
Vietnamese companies enjoy.  In light of th is, we fully shares the concerns expressed in 
paragraph 88 and would like to request the Vietname se side to rectify, prior to its accession the 
WTO, the current situation where foreign compan ies are only allowed to engage in export 
activities. 
Answer : 
Viet Nam has adjusted its commitments on trading rights as detailed in Annex 2 of this document, 
whereby the trading rights have been opened to  foreign enterprises under a schedule contained 
therein.  
Question 80  Paragraph 88:  We again take note of Viet Nam's responses to the questions regarding this issue 
in WT/ACC/VNM/32, WT/ACC/VNM/33 and WT/ACC/SPEC/VNM/5 and the offer in Annex 1 to gradually implement Articles III and XI and grant trading rights to firms and individuals 
through 2011.  We think this can be done in  a manner that addresses Viet Nam's concerns to 
safeguard its economy, in ways applied by other Members of the WTO. 
Answer
: 
Viet Nam has adjusted its commitments on trading rights as detailed in Annex 2 of this document, 
whereby no items are excluded (i.e., unbound). 
Question 81  
While we note Viet Nam has requested transiti ons, our preference remains for Viet Nam to 
commit that from the date of accession, any natura l or legal person, domestic or foreign, will 
have the right to be the importer of record of any product allowed to be imported into Viet Nam, whether it is all types of media or autos, for example, and to make those products 
available for purchase and distribution by any le gal or natural person, domestic or foreign, 
having the right to engage in di stribution in Viet Nam's market.  
Answer
: 
Viet Nam has adjusted its commitments on trading rights as detailed in Annex 2 of this document. 
Question 82  
We again reinforce our concerns that Viet Nam places WTO inconsistent restrictions on 
imports by limiting a foreign company's right to import solely to goods needed for their own 
consumption or production activities, whereas no such restrictions are in place for purchases of 
domestic manufactures by these firms.  This is a clear violation of Article XI and Article III of 
the GATT 1994.  WT/ACC/VNM/36 
Page 36  
 
 Answer
: 
Viet Nam has adjusted its commitments on trading rights as detailed in Annex 2 of this document. 
Question 83  
We acknowledge that the right to import is distin ct from the right to distribute and seek only to 
achieve for imported goods access to  Viet Nam's channels of distribution on the same terms as 
domestic goods. 
Answer : 
Viet Nam has adjusted its commitments on trading rights as detailed in Annex 2 of this document. 
Question 84  
Can Viet Nam confirm that, after the completion of  the action plan to provide trading rights in 
the identified sectors, any individual or firm will be able to be the importer of record without 
further requirement to be invested in Viet Nam?  What other requirements, if any, will there be 
for firms and individuals seeking to import, i.e., to be the importer of record? 
Answer : 
Viet Nam has adjusted our commitments on trading rights as detailed in Annex 2 of this document. 
Question 85  Paragraph 89 We take note of Viet Nam's intentio n to request a transitional period for granting 
full national treatment for trading rights.  From  table 1, we understand that for some products, 
this period is envisaged until 2010.  We reserve our right to take a position on this request at a 
later stage; a priori, granting a transitional period will be difficult, and the proposed end in 2010 is definitely too long. 
In terms of commitment language, we agree to th e suggestion of another Member as referred to 
in paragraph 88. 
Answer
: 
Viet Nam has adjusted its commitments on trading rights as detailed in Annex 2 of this document. 
Question 86  
In paragraph 89, the draft Report states that "time was required to merge the import trading 
rights systems for foreign and domestic legal persons, promulgate the necessary regulations, 
and strengthen the management/administrative capa city of the Government's agency involved." 
This statement seems to be rather abstract.  Th erefore, we would like to request the Vietnamese 
side to provide detailed explanations concerning each respective restriction on trading rights in 
each individual field.  In any event, sin ce there still remain many unclear points concerning 
trading rights issue, we need to seek further clar ification from the Vietnamese side on this issue 
by holding plurilateral meetings of the Working Party.  WT/ACC/VNM/36 
 Page 37 
 
 
Answer : 
Regarding the issue of phasing out the restrictions on trading rights applicable to foreign invested 
enterprises, please refer to the Schedule of Commitments on import and export trading rights in Annex 2 of this document. 
Viet Nam is willing to explain in detail the a bove commitments as well as its difficulties in the 
Working Party meetings. 
Question 87  
In addition to the points mentioned above, wi th regard to trading rights concerning each 
respective item, we noticed certain improvements in schedules for abolishing regulations on 
items subject to import restriction set out in Table 1 of WT/ACC/SPEC/VNM/5, comparing 
with previous schedules set out in Table-A of WT/ACC/VNM/32, for which we appreciate the 
Vietnamese efforts.  However, transition periods fo r each of these items seem to be still long in 
light of ensuring conformity with the basic articles such as Articles 3 and 11 of GATT 1994.  We would therefore like to request the Government of  Viet Nam to make further efforts in this 
regard and would like to seek information on how the Government of Viet Nam has been 
working for this issue.  In particular, as me ntioned in Question 23 in WT/ACC/VNM/32, we 
would like to request the Government of Viet Na m to abolish, upon accession, any restriction on 
trading rights pertaining to automobile , motorcycles and moto rcycles' spare parts . 
Answer
: 
Viet Nam has adjusted its commitments on trading rights as detailed in Annex 2 of this document. 
The adjustments have shown Viet Nam's efforts in  meeting Working Party Members' interests while 
taking into account our situation. 
A. IMPORT REGULATIONS 
- Ordinary customs duties 
Question 88  
We request that Viet Nam provide its latest trade data at the HS 8-digit level. 
Answer : 
Due to technical and infrastructure difficulties in information and statistical system at Customs 
offices, Viet Nam is not able to gather and compile trade data at HS 8-digit level.  
Question 89  
Paragraph 91:  Could Viet Nam please update the statistic in paragraph 91 on its current trade-
weighted average?   
Answer : 
The current trade-weighted average tariff of Viet Nam is 15.2 per cent (as of 2003).  WT/ACC/VNM/36 
Page 38  
 
 Question 90 
Could Viet Nam provide some additional detail  on the tariff structure recommended by the 
IMF? 
Answer
: 
Recommendations by IMF on customs reform in Viet Nam (primarily for period prior to 2000) were 
as follows: 
- SAC/ESAF programs (concluded in 1997): Viet Nam and the IMF agreed to a reform 
program which implemented important trade refo rms such as: removal of non-tariff barriers; 
reduction of the number of tariff rates; reduction of the maximum tariff rate (specifically the 
maximum tariff rate was reduced to 60 per cent by 1996, with exceptions for some sensitive 
products); the IMF recommended a reduction of  maximum tariff rate to be coupled with 
upward adjustments to tariff rates of agricultural import inputs which were previously subject 
to the lowest tariff rate.  
- PRGF program (Viet Nam and the IMF agreed upon the program in 4/2001): worked out a 
specific roadmap to remove non-tariff barriers and convert those non-tariff barriers into 
tariffs; in addition, in this program, structural  reform measures did not focus mainly on trade 
liberalization, but rather, it emphasized on Statebudget transparency, state-owned enterprises and banking system reform.  
Question 91  
In each of the last three years, how much re venue did Viet Nam collect through tariffs?  How 
much did it collect from taxes collected at  the border (e.g. VAT, Special Consumption Tax 
(SCT), and excise taxes)?  
Answer
: 
In regards of latest three year averag e, Viet Nam collected taxes as follows: 
Average of period 1999-2001: 
- Import tax:  VND 12,583 billion. 
- VAT on imports collected at border:  VND 4,020 billion. 
- Excise tax on imports collected at border:  VND 1,126 billion. 
Average of period 2002-2004: 
- Import tax:  VND 17,826 billion. 
- VAT on imports collected at border:  VND 12,266 billion. 
- Excise tax on imports collected at border:  VND 2,017 billion. 
US$/VND exchange rate: approximately 15 ,000 and 15,500 for 1999- 2001 and 2002-2004 
respectively.  
Question 92  
Paragraph 93:  The relationship between Viet Nam's current statutory rates of duty and its 
commitments as part of its accession are uncle ar.  Please clarify how these current statutory 
rates of duty will relate to Viet Nam's final package of binding tariff commitments.  WT/ACC/VNM/36 
 Page 39 
 
 
Answer : 
According to the current Law on Import and Expo rt Duties, the Standing Committee of the National 
Assembly promulgates the statutory Most-Favoured -Nation tariff ceilings. On the basis of these 
ceilings, the Government decides on the specific MF N as well as the non-MFN tariff rate applicable 
to a particular product (non-MFN tariff rate would not in any case higher than MFN rate by more than 
70 per cent).  
After the accession to WTO, in conducting its tariff policy, the Government of Viet Nam will abide 
by Viet Nam's commitments and the rules of the WTO, including its tariff commitments and rules 
applicable to application of import duties in special  cases. In addition, the ceilings set by the National 
Assembly's Standing Committee will continue to serv e as domestic legal basis and would not be in 
conflict with WTO's rules. 
Question 93  
In paragraph 93, the draft Report explains that frequent changes in the tariff rates are due to 
the fact that Vietnamese economy is undergoing  transition and restructuring and provides its 
assurance that it will make best efforts to publish the tariff rates prior to application.  We are of 
the view that frequent changes in the tariff rate s place the exports to Vi et Nam in a very risky 
position and therefore that a system under which notice to other countries will be given well in 
advance of actual changes in the tariff rates shou ld be establish with a view to avoiding  such 
risk. 
Answer : 
Since the promulgation of new tariff schedul e which followed the ASEAN Harmonized Tariff 
Nomenclature (AHTN) in September 2003 and af ter the process of conversion of a number of non-
tariff measures into tariff in 2000, Viet Nam has re strained itself from frequent changes to its import 
tariff schedule, gradually incorporated import surcharg es into tariff with a view to eliminating import 
surcharges and published decisions on tariffs on th e Official Gazette and other mass media (e.g., 
financial magazines and journals, websites…) in or der to improve the transparency of policies. 
Question 94  
We note that, in paragraph 93 of WT/ACC/SPEC/VNM/5, Viet Nam states that "… Viet Nam 
would make best efforts to publish th e rates prior to application and …". 
Bearing in mind the obligatory character of Article X:2 of GATT 1994, we would urge 
Viet Nam to amend its assurance to read "… Viet Nam would make best efforts to  publish the 
rates prior to application and … ". 
Answer : 
In accordance with the Law on the Promulgation of Legal Normative Documents of Viet Nam, all 
legal documents are subject to publication in the Official Gazette and would generally come into 
effect 15 days from the date of publication.  
Question 95  We note that, in paragraph 94 of WT/ACC/SPE C/VNM/5, Viet Nam still wishes to have the 
option of applying specific or compound duties in the future, even though proposing ad valorem  
tariff bindings.  We appreciate the concerns that  Viet Nam has relating to customs fraud, but 
our concerns remain at the possibility of GATT Article XXVIII negotiations in the future. WT/ACC/VNM/36 
Page 40  
 
 We would urge Viet Nam to bind its tariffs in the form that it intends to apply them, but in 
doing so keep specific, compound or mixed tari ff bindings to the smallest possible number of 
products. 
Answer
: 
Viet Nam would like to express high appreciation of the recommendation.  Viet Nam is negotiating 
specific duty rates for these tariff lines with inte rested Members under bilateral market access 
negotiation framework and attempting to lim it the number of tariff lines subject to 
compound/combined specific duties.  
Question 96  
Paragraph 94 discusses Viet Na m's plans for conversion of bound ad valorem rates to specific 
rates after accession.  Please list the 100 or so ta riff lines where Viet Nam does not expect to be 
able to maintain the ad valorem  rates negotiated during its accession process. 
Answer : 
Viet Nam has indicated its intention to apply speci fic duties on some products with an aim to counter 
trade frauds. The tariff lines were indicated clearly (at HS 8-digit level) in the fourth Tariff Offer that 
Viet Nam submitted to the Working Party in April 2004. 
Viet Nam is negotiating specific duty rates for th ese tariff lines with in terested Members under 
bilateral market access negotiation framework.  
Question 97  
In paragraph 94, the draft Report states that specific or compound duty rates on certain items 
are required to counter customs fraud. We would like to seek information on the current status 
of specific and compound duty (e.g. number of ta riff lines applicable to such duty, detail of 
items subject to such duty). Such information should be reflected in the Report in a concise 
manner. 
Answer : 
Viet Nam has indicated its intention to apply speci fic duties on some products with an aim to counter 
trade frauds. The tariff lines were indicated clearly (at HS 8-digit level) in the fourth Tariff Offer that 
Viet Nam submitted to the Working Party in April 2004. 
Viet Nam is negotiating specific duty rates for th ese tariff lines with interested Members under 
bilateral market access negotiation framework.  
Question 98  
Paragraph 95 discusses the application of "speci al preferential" (preferential), "preferential" 
(MFN), and "standard" tariff rates to imported  goods.  Please list all current and prospective 
WTO members (i.e., that have applied for acces sion) where Viet Nam now applies standard 
rates of duty, i.e., rates at 150 per cent of th e MFN rate.  Please confirm that Viet Nam will 
apply MFN rates to WTO members after accessi on, and will extend MFN without need for 
further agreements.  WT/ACC/VNM/36 
 Page 41 
 
 
Answer : 
Please see the List of countries and territories to  which Viet Nam has extended MFN treatment in 
trade relation in Annex 3 and the List of countries and territories with which Viet Nam has had special 
preferential agreements in trade relation in Annex 4.  Viet Nam will accord the MFN status to WTO 
Members in accordance with its  WTO obligations without requi ring further agreements after 
accession. 
- Other duties and charges 
Question 99  Paragraph 101:  Please include a statement in this section committing to bind all other duties 
and charges at zero upon accession.  We would suggest the following language: 
"The representative of Viet Nam confirmed that Viet Nam had agreed to bind at zero other 
duties and charges in its Schedule of Concession s and Commitments, pursuant to Article II:1(b) 
of the GATT 1994.  The Working Party took note of this commitment." 
Answer
: 
Viet Nam accepts the language as recommended. Question 100  We would encourage Viet Nam to accept the square bracketed commitments in paragraph 101 
of WT/ACC/SPEC/VNM/5, and bind other duties and charges in its schedule of commitments at zero. 
Answer
: 
Viet Nam commits to bind all other duties and charges (ODC) at zero upon accession. - Tariff rate quotas, tariff exemptions Question 101  We thank Viet Nam for the information on TRQ administration provided in Annex 4 of 
WT/ACC/VNM/33.  It should be updated (e.g., to eliminate reference to cotton and corn, where the TRQs were reported eliminated in paragr aph 103) and appended to the draft Working 
Party report. 
Answer
: 
Annex 4 of WT/ACC/VNM/33 just mentions to the quota allocation mechanism in accordance with 
Circular 09/2003/TT-BTM dated 15 December 2003 gui ding the implementation of the Decision 
No. 91/2003/QD-TTg dated 9 May 2003 of the Prime Minister on application of TRQ on imports in Viet Nam in 2004.  At that time, mai ze and cotton were still subject to TRQs. 
Viet Nam agrees to update information on Viet Nam' s current list of commodities subject to TRQ as 
follows:  On 3 March 2005, the Prime Minist er issued the Decision No. 46/2005/QD-TTg on 
adjusting the List of imports subject to TRQs, which abolishes TRQ on dairy products, maize and 
cotton from 1 April 2005. WT/ACC/VNM/36 
Page 42  
 
 Question 102  
Paragraph 103:  Could Viet Nam please explain th e rationale for its TRQ provisions on salt and 
whether or not it intends to phase this out as part of its accession?  Could some of the TRQs currently being applied be replaced by  non-automatic import licensing? 
Answer
: 
Salt is considered an important commodity in Viet  Nam since it is the main source of income for 
hundreds of thousands of poor farmers living in co astal areas where the transformation of land to 
agricultural cultivation is almost impractical.  Viet Nam applies tariff rate quota to salt with a view to 
securing employment and ensuring income stability for those farmers producing salt. Furthermore, tariff rate quotas appears to be the most efficient m easure to satisfy this objective in comparison with 
other import restrictions including non-automatic import licensing.  
Question 103  
We would suggest that this sub-section of the report be divided into separate sub-sections for 
Tariff Rate Quotas and for Tariff Exemptions. 
We note that the role (if any) of tariff rate quo tas (TRQs) in Viet Nam's accession package is yet 
to be finalized and, given that this area can only be discussed provisionally at this stage, we 
reserve our rights in relation to this sub-section.  Notwithstanding this, we seek the insertion of 
the following sentence after the final sente nce of paragraph 102 of WT/ACC/SPEC/VNM/5: 
"Viet Nam accordingly would be requested to adopt detailed commitments relating to the 
allocation of tariff quota and other aspects of tariff rate quota administration."   
Answer
: 
Viet Nam agrees that th e issue of tariff rate quotas remains under negotiations and will be completed 
subject to the negotiations' outcome.  Viet Nam comm its to allocate and administer tariff rate quotas 
in full conformity with the WTO applicable rules.  
Question 104  
We thank Viet Nam for the indications provided of  its preparedness to review its earlier plans, 
and we would like to take stock of where ma tters stand on the product scope of currently 
applied and proposed bound TRQs.  We are pleased that paragraph 103 of WT/ACC/SPEC/VNM/5 confirms that the TRQs on  cotton and maize have been eliminated, and 
welcome that Viet Nam has removed the proposal  from its tariff offer to apply and bind TRQs 
on dairy products. 
We would be grateful for confirmation from Viet Nam that TRQs for these products are no 
longer applied and there will be no bound TRQs  for these products in its goods schedule. 
Answer
: 
The Prime Minister issued the Decision No. 46/ 2005/QD-TTg dated 3 March 2005 on revisions of the 
List of imported goods subject to tariff rate quotas wherein the tariff rate quotas on dairy products, 
maize and cotton will be eliminated from 1 April 2005.   The TRQ Offer of Viet Nam has also been 
revised accordingly.  WT/ACC/VNM/36 
 Page 43 
 
 
Question 105  
We would encourage Viet Nam to consider elimin ating the applied TRQs on tobacco materials 
and salt and to not bind TRQs for these produc ts under the WTO.  While we are pleased that 
Viet Nam proposes to remove discretionary licen sing for imports of sugar, we would encourage 
Viet Nam to consider a tariff-only approach, ra ther than for a TRQ to be put in place upon 
accession. 
Answer : 
Viet Nam has limited its application of tariff rate quotas to the minimum extent and demonstrated its 
goodwill by considerably narrowing the coverage of products subject to tariff rate quotas.  Viet Nam 
looks forward to the reciprocal approach from Work ing Party's Members in the bilateral negotiations 
with Viet Nam. 
Question 106  
We also thank Viet Nam for the information pr ovided on the allocation mechanism of TRQs 
provided in Annex 4 of WT/ACC/VNM/33. 
- We seek reconfirmation of the products to which TRQs are currently applied, as 
Annex 4 includes dairy products, cotto n and maize but paragraph 103 of 
WT/ACC/SPEC/VNM/5 states that TRQs on cotton and maize have been eliminated, and, on dairy, it has been our understa nding that TRQs would not be applied. 
- We would also be grateful if Viet Nam co uld provide details of the TRQ arrangements 
currently in place, including the products ac tually subject to tariff quotas, the annual 
quota volumes, the in-quota and out-of-quota  rates, and the methods for allocating 
quota and administering the arrangements. 
Answer
: 
Annex 4 of the document WT/ACC/VNM/33 has incl uded the detailed description of the mechanism 
of tariff rate quota allocation in accordan ce with the Decision No. 91/2003/QD-TTg dated 
9 May 2003. 
With respect to the coverage of products currently  subject to tariff rate quotas, the Prime Minister 
issued the Decision No. 46/2005/QD-TTg dated 3 March 2005 on revisions of the List of imported goods subject to tariff rate quotas wherein the tariff rate quotas on dairy products, maize and cotton will be eliminated from 1 April 2005. 
TRQ volumes, in-quota and out-of-quota rates, TR Q allocation methods and other information have 
been included in Viet Nam's Offer on Tariff rate quotas (document 
WT/ACC/SPEC/VNM/1/Rev.3/Add.1). 
Question 107  
In Annex 4 of WT/ACC/VNM/33, Viet Nam notes that the current discretionary licensing 
scheme applied to sugar would be converted to a TRQ. 
We seek advice on when Viet Nam plans to intr oduce a TRQ on sugar.  We also seek details of 
administrative arrangements it woul d intend to apply to the sugar TRQ. WT/ACC/VNM/36 
Page 44  
 
 Answer
: 
The discretionary import licensing regime app lied to sugar shall be converted to TRQ upon 
Viet Nam's accession to the WTO in accorda nce with Viet Nam's WTO commitments. 
Viet Nam wishes to apply TRQ on sugar since suga rcanes are grown in disadvantaged areas with 
adverse natural conditions and dive rsification from growing sugarcanes into other crops is often very 
difficult for farmers. 
Question 108  
In the case of salt, Annex 4 of WT/ACC/VNM/33 indicates the tariff quota is allocated to 
companies that use salt in their production an d that general corporations are the designated 
focal points to receive quotas for subsidiaries.  We would appreciate Viet Nam providing details 
of how it allocates quota to companies and genera l corporations.  What criteria are used in the 
allocation of quota?  Can salt for human consum ption be imported directly by companies that 
do not use salt in their production? 
Answer : 
Tariff rate quota allocation mechanism has be en described in Annex 4 of the document 
WT/ACC/VNM/33: 
- Salt quota is allocated to traders who have de mand for imported salt to use in their production 
as certified by the line-ministry administering the industry (demand for salt corresponds to production capacity).  On that basis and in acco rdance with the TRQ allocation criteria, the 
Ministry of Trade considers to grant import licenses. Traders are required to present the 
import licenses issued by the Ministry of Trad e to the customs when importing salt to enjoy 
the in-quota import tariff rates (Circula r No.09/2003/TT-BTM dated 15 December 2003). 
- TRQ allocation criteria: Quotas are allocated on the basis of import performance. 
- Salt can be imported directly by enterprises that  do not use salt in their production but it is 
subject to out-of-quota import tariff rates.  
.Question 109  
We would be grateful for information on the ro les that (a) the Ministry of Agriculture and 
Rural Development (MARD), and (b) the Viet Nam Salt Corporation, play in the TRQ for salt 
in respect of government policy, the determination of quota volumes, decision-making on tariff quota allocation, and tariff quota administrati on.  Also is MARD one of the line ministries 
referred to in Section II of Annex 4 of WT/ACC/VNM/33?  Would the Viet Nam Salt 
Corporation import salt under the tariff quota?  Does the Viet Nam Salt Corporation have any 
special rights or privileges in relation to the in ternal purchase, internal sale, importation or 
exportation of salt? 
Answer
: 
Import tariff rate quotas are allocated to all en terprises having demand for salt to use in their 
production. 
The Ministry of Trade is responsible for general management, supervision and administration of TRQ, 
including TRQ on salt.  WT/ACC/VNM/36 
 Page 45 
 
 
Pursuant to the Decree No. 86/2003/ND-CP dated 18 Ju ly 2003, the Ministry of Agriculture and Rural 
Development is mandated to be responsible for li ne management of salt.  It accordingly plays a 
decisive role in formulating the general policies for this commodity as well as in determining the annual import TRQ volumes of salt and providing regul ations on allocation and administration of the 
TRQ on salt. 
In the domestic market, the General Corporation of  Salt operates on the basis of market mechanism. 
Traders of all economic sectors are non-discriminator ily encouraged to export and distribute salt. 
Viet Nam General Corporation of Salt does not have  any role in either determining the TRQ volume 
or allocating or administering TRQ.  With respect  to the importation of salt in general and the 
fulfilment of TRQ in particular, the General Corporati on of Salt is merely an enterprise trading in salt. 
It imports salt in accordance with regulations on TRQ and is not granted any preference or privilege 
relating to the purchase, sale, importation or exportation of salt. 
Question 110  
We are concerned that Viet Nam states that additional quotas may be considered where they 
are used to manufacture for export (paragraph 5 of Section III on the administration of TRQs, 
in Annex 4).  This suggests that more quota wo uld be available if the products were used in 
exports and were not destined for the domestic ma rket.  We would have concerns with such an 
approach, and with its consistency with WTO obligations. 
While final commitments on the allocation and ot her administration of TRQs will need to await 
a number of clarifications (as well as the fina lization of all market access negotiations for 
goods), we nevertheless welcome Viet Nam's expressi on of its preparedness in paragraph 103 of 
WT/ACC/SPEC/VNM/5 to apply and administer tariff rate quotas in conformity with 
applicable WTO rules and regulations, including the MFN and national treatment provisions of 
the GATT.  We would suggest at this stage th e inclusion of some preliminary new language 
(after paragraph 103) that would be developed furt her in the light of clarification of current 
policies and planned future policies in this area: 
103A. A Member raised concerns over a proposal by Viet Nam to use 
auctioning as a method of allocating tariff quota.  In the view of this Member, auctioning of tariff quota would be inconsistent with a number of WTO provisions including Articles II, X and XI of GATT 1994 and Article 4 of the Agriculture Agreement, as bindings for in -quota rates could be breached by 
additional imposts, auction prices wo uld represent minimum prices payable by 
purchasers of imports, appropriate standa rds of transparency and predictability 
with respect to the terms of importation would not be met, and any starting prices would themselves represent minimum import prices.  The Member concerned also raised concerns over any no n-automatic licensing associated with 
the allocation or other administration of tariff quotas that would have trade-
restrictive or -distortive effects on import s additional to those occasioned by the 
quantity-limited in-quota rate and th e out-of-quota rate, contrary to the 
provisions of the Agreement on Import Licensing Procedures. 
103B. The Member raised further co ncerns over certain requirements 
proposed by Viet Nam:  to relate amo unts of tariff quota allocated to each 
importer's levels of domestic production  and export, inconsistently with the 
WTO's prohibitions on such measures under Article XI of GATT 1994, Article 4 
of the Agriculture Agreement and Articl e 2 of the Agreement on Trade-related 
Investment Measures;  to allocate tari ff quota contingent upon the approval of 
import plans by the government, inconsistently with Article XI of GATT 1994 WT/ACC/VNM/36 
Page 46  
 
 and Article 4 of the Agriculture Agreeme nt;  to allocate tariff quota on the 
conditions that the importer uses amounts imported only for its own production, 
inconsistently with Articles III and XI of GATT 1994 and Article 4 of the Agriculture Agreement, and that the importer refrains from internal resale of product imported under the quota, inconsistently with Article III of 
GATT 1994;  to deprive intending traders th at do not have a particular kind of 
business registration of the right to be importers of record in relation to the amounts imported under the quota and of  the right to become quota holders, 
inconsistently with Articles III and XI of GATT 1994;  to require that a quota holder must send quarterly reports on tariff quota usage to the Ministry of 
Trade (when such data would be readily  available to the government through 
official customs statistics), inconsistently with Article XI of GATT 1994 and Article 4 of the Agriculture Agreement;  and to prohibit the sale, purchase and 
transfer of allocated quota quantities to  other parties, inconsistently with 
Article XI of GATT 1994 and Article 4 of the Agriculture Agreement.  The 
Member called upon Viet Nam to alloca te tariff quota consistently with the 
WTO from the date of accession. 
103C. The representative of Viet Nam sa id that from the date of accession 
Viet Nam would allocate tariff quota, ad minister tariff rate quota arrangements 
and apply internal measures to products that have entered its territory under such arrangements only in conformity  with the WTO Agreement, including 
Articles I, II, III, VIII, X, XI and XIII of GATT 1994, Article 4 of the 
Agriculture Agreement, Article 2 of the Agreement on Trade-related Investment 
Measures, the Agreement on Import Licensing Procedures and other WTO provisions.  The Working Party took note of these commitments
. 
[To be completed] 
Answer : 
Vietnam would like to clarify that TRQ is rather a two-tier tariff scheme than a quota system per se  
whereby imports cannot be allowed over some certain amount. 
In accordance with guidelines specified in th e Circulars No. 09/2003/TT-BTM and No.10/2004/TT-
BTM, traders having demand for imported commodities specified in the List of import goods subject to tariff rate quotas to use in their production for ex port are also considered to be allocated TRQ. As 
importers of inputs for production of  export would be in effect exempted all import duties for their 
inputs through duty drawback scheme anyway, this is  merely an administrative arrangement rather 
than a preferential arrangement in terms of the duties paid.  
Viet Nam commits to apply TRQs on imported goods in  conformity with its WTO obligations and the 
WTO applicable rules and regulations. With a view to further affirming its commitments to comply 
with the WTO applicable rules and regulations, Viet Nam accepts to add the paragraph 103.C as 
proposed. 
The provision that TRQs are only allocated to  enterprises which import goods to use in their 
production is only applicable to salt and un-manufactured tobacco.  In essence, this provision means 
the allocation of TRQs to end-users and is not inconsistent with the WTO rules and regulations. 
The provision that TRQs are allocated to enterp rises having trading activities is in compliance with 
Viet Nam's current import management policies.  This provision does not in breach of any WTO rule 
and regulation since enterprises are free to regi ster their own business lines and activities.    WT/ACC/VNM/36 
 Page 47 
 
 
The provision that enterprises are required to se nd a report on import performance of TRQs to the 
Ministry of Trade by each quarter-end is aimed at guaranteeing the up-to-date and accurate source of information so as to enable the authority to adju st the TRQs when enterp rises need so.  Due to 
capacity restraints, the source of information consol idated by the General Department of Customs is 
often not up-to-date. 
Viet Nam does not hold the view that its provis ions of TRQ allocation and administration are 
inconsistent with the WTO rules and regulations. 
Question 111  
With respect to the import duty exemptions identified in paragraph 104 of 
WT/ACC/SPEC/VNM/5, how much money does the Government refund each year?  What 
proportion of total duties collected is this?  What percentage of this amount is refunded to state 
enterprises?  How much is refunded to foreign in vested firms?  How much to non-state-owned 
domestic companies?   
Answer
: 
Due to technical difficulties and resources restraints, Viet Nam is not able to provide detailed data 
about import duty refund by categories of importers.  However, it should be noted that all importers 
satisfying criteria set for refunding import duties ar e eligible to receive import duty refund, regardless 
of their forms of ownership. 
Question 112  
Are the import duty exemptions identified in paragraph 104 subject to export requirements, 
export ratios, or local content requirements? 
Answer : 
Import duty exemptions and reductions mentioned in paragraph 104 are not contingent on export 
performance, export ratio requirement or local content requirement.     
Question 113  
Paragraph 104 states that "in regions where invest ment was especially encouraged, the import 
duty exemption for raw materials, equipment,  and components was valid for five years 
following the commencement of production."  Are their duration limits for the import duty 
exemptions authorized under Article 11 of the Law amending and supplementing the Law on Import-Export Duties, Article 47 of the Law on Foreign Investment, and Article 25 of the Law 
on Promoting Domestic Investment? 
Answer
: 
Yes.  Import duty exemptions for raw materials, eq uipment, and components for five years following 
the commencement of production are provided for in accordance with the Article 11 of the Law on 
amendments of and supplements to some Articles of the Law on Export and Import Duties, Article 47 
of the Law on Foreign Investment and Article 25 of the Law on Promotion of Domestic Investment. 
Question 114  
We would like to propose the following commi tment language for this section:  "The 
representative of Viet Nam confirmed that upon accession, Viet Nam would adopt and apply WT/ACC/VNM/36 
Page 48  
 
 tariff reductions and exemptions so as to en sure MFN treatment for imported goods.  The 
Working Party took note of this commitment." 
Answer
: 
Viet Nam agrees to the commitment language for this section as proposed. 
- Fees and charges for services rendered 
Question 115  
We appreciate Viet Nam's assura nces concerning the relationship of the fee for the importation 
of foreign exchange to the cost of the service rendered and its reduced level of application.  
However, we do not see how a fee so clearly struct ured to be based on the value of the foreign 
exchange imported can, except by accident, be related to the cost of the service.   
Answer : 
Currently, Viet Nam collects "customs clearance fe es" which are applicable to all goods ranging from 
normal goods to gold, precious gems and foreign curr encies, to cover the costs of services rendered to 
imports and exports. With regard to the importation and exportation of  foreign currencies, the customs 
clearance fee should not be deemed as import or export tax; rather, it is merely a fee collected to cover 
services rendered in exchange monitoring when th ere occurs the movements of the physical foreign 
currencies (i.e., foreign currency notes) across th e border and in preventing counterfeit currencies. 
Specifically, for services rendered in exchange monito ring when there occurs either the importation or 
the exportation of foreign currencies, the payable fee is VND 100,000 (equivalent to US$ 6.3) for the 
first US$ 100,000 that goes through customs.  In  case that the value of foreign currencies exceeds 
US$ 100,000 in each clearance case,  additional fee of VND 80,000 (equivalent to US$ 5) shall be 
collected for every extra US$ 100,000.  However, the maximum amount of fees (or the cap) payable 
on an individual case shall in no case exceed VND 1.5 million (equivalent to roughly US$ 100). 
In essence, the fee is set at a very low level, if not  negligible.  Hence, it should be seen neither as a 
protection nor revenue measure.  It is in full compliance with Article VIII of GATT 1994.  The 
stipulation of the ceiling limit of VND 1.5 million (US$  100) in each clearance case shows that the fee 
payable is generally US$ 100 for each individual case.  Additional fees are provided for only to lessen 
the amount of fees payable by those persons havi ng small value of foreign currencies brought across 
the border, i.e. persons having lesser value of fo reign currencies would be subject to lower fees. 
Question 116  
Please clarify why such a fee is necessary in any case.  Why would Viet Nam want to tax the 
importation of foreign exchange?  Is such a fee applied to foreign exchange exports? 
Answer : 
As mentioned in the answer to Question 115, this customs fee is merely for the purpose of exchange 
monitoring and preventing counterfeit currencies.  It is not a tax on the importation of foreign 
exchange and is applicable to all physical movement s of foreign currencies into or out of the country 
through customs. 
Please see also the answer to Question 115.  WT/ACC/VNM/36 
 Page 49 
 
 
Question 117  
This fee does not meet the requirements of Article VIII of the GATT.  It should be eliminated or 
revised to meet the criteria for Article VIII. 
Answer : 
In our view, the fee is not in violation of the requirements of the GATT.  Please see also the answer to 
Question 115. 
Question 118  
Appropriate revision could be a flat fee for the pr ocessing of each applicat ion to import foreign 
exchange would be a more WTO-compatible method. 
Answer : 
In our view, the fee is not in violation of the requirements of the GATT.  Please see also the answer to 
Question 115. 
Question 119  
We appreciate the tables attached to the dra ft report laying out Viet Nam's charges and fees 
applied at the border, and we note that cust oms processing fees are based on the quantity of 
imports, by weight and form of transportation.  
Answer : 
In general, fees including customs fees (customs sealing fees, customs warehouse fees; customs 
clearance fees; customs escorting fees) are formulated  based on the principles stated in the Ordinance 
on Fees and Charges that "fees are the amount of mone y that individuals or organizations are required 
to pay for the State administration services rendered by governmental agencies or bodies  entrusted by 
governmental agencies".  These fees are not aimed at  either protection or generation of revenue for 
the State budget.  
With regard to customs fees, specific fees are determ ined so as to ensure to cover costs and expenses 
incurred by customs authority in rendering servi ces related to the impor tation and exportation of 
cargos and vehicles (for example, inspection, superv ision, document-related costs, office expenses, 
etc.).  Inspection and supervision may directly rela te to forms of transportation, quantities of cargos, 
hence customs fees are categorized into fees applicab le to different forms of transportation, volumes 
of imports or exports respectively and not applied on an ad valorem  basis.  The stipulation that fees 
are levied in proportion to volumes of imports or exports is aimed at lessening the fees payable by those persons having small quantities of imports or e xports, i.e. importers or exporters having smaller 
volumes of imports or exports shall be subject to lower fees.  It is noteworthy that those persons 
having significant quantities or volume of imports or  exports shall however be subject to the same 
level of fees thanks to the stipulation of the ceili ng limits on fees payable for each form of customs 
fees. 
Question 120  
We would appreciate Viet Nam's explanation of  how customs processing, which mostly involves 
checking of customs documents, can be related to the volume of imports and mode of 
transportation. WT/ACC/VNM/36 
Page 50  
 
 Answer
: 
Please see the answer to Question 119. 
Question 121  
Paragraph 106 notes that "administrative fees fo r re-certification of customs documents" are 
fees collected.  What sort of certification of customs documents is necessary?  Who performs 
that certification?  The re-certification?  Are thes e fees collected prior to export by consulates in 
the exporting country?  What is the fee struct ure?  Why can't customs officials certify the 
documents at the time of import entry? 
Answer : 
- The re-certification of customs documents in this  regulation occurs in cases that the original 
documents are lost or importers request  the re-certification for other reasons. 
- Customs documents which could be re-certif ied include documents related to customs 
procedures, documents or invoices related to im port or export duties, documents related to 
imported or exported goods. 
- Customs authority is assigned to be responsible  for the re-certification of customs documents. 
Fees for re-certification is currently set at 12,000 VND (equivalent to US$ 0.8) for a re-
certification request. 
Question 122  
In paragraph 106, the draft Report states that "The fee had been adjusted for inflation to 
ensure that they were maintained at a level approximate to the cost of the customs services 
rendered." We would like to clarify the detail of  the fees for customs services rendered and like 
to include them in the Report for the purpose of  increasing transparency. We would also like to 
request the Government of Viet Nam to maintain the fees at an appropriate level. 
Answer : 
With regard to customs fees,  Viet Nam has submitted the Inter-ministerial Circular 
No. 71/2000/TTLT/BTC-TCHQ dated 19 July 2000 of the Ministry of Finance and the General 
Department of Customs providing for regulations on forms of customs fees and specific levels of 
customs fees.  This Circular has been incorporated in th e document WT/ACC/SPEC/VNM/5 as 
Table 2 in Annex 2. 
Fundamental direction in formulating policies of fees and charges of Viet Nam is to ensure that fees 
are charged at an appropriate level, approximate the cost of services rendered and are not aimed at 
generating revenue for the State budget.  
Question 123  
Paragraph 107: We agree with those Members who consider port fees to be too high, and 
encourage further reductions. 
Answer : 
With regard to sea port fees, the Government of Viet Nam has worked out a roadmap to reduce sea 
port fees starting from 2003.  Specifically, from 2003 to 31 December 2004, the levels of maritime  WT/ACC/VNM/36 
 Page 51 
 
 
fees and charges was reduced by from 30 per cent to 50 per cent (according to the Decisions No. 61/2003/QD-BTC and No. 62/2003/QD-BTC dated 25 April 2003).  
Taking into account recommendations of some Members of the Working Party, Viet Nam has 
conducted an comparative study across a number of countries in the region, of which the coverage 
includes geographical location features, infrastructur al investments, specific levels of sea port fees 
with the aim to aligning Viet Nam's sea port fees at appropriate levels.  On th e one hand, the levels of 
fees need to be based on geographical location featur es and infrastructural investments so as to ensure 
to cover investment costs.  On the other hand, the levels of fees should also be comparable to those 
levied by other countries in the region so as to facilitate and promote importation and exportation. 
Guiding by this direction, Viet Nam issu ed the Decision No. 88/2004/QD-BTC dated 
19 November 2004 to replace the above me ntioned Decisions No. 61/2003/QD-BTC and 
No. 62/2003/QD-BTC and continue reducing the levels of sea port fees.  According to this Decision, 
from 1 January 2005, weight fees would be further reduced by 45 per cent, marine assurance fees by 
52 per cent; navigation fees by between 12 per cen t and 30 per cent, quay fees by 10 per cent and 
from 1 January 2006, marine assurance fees would be  collected as of 75 per cent of the applied level 
in 2005. 
By the virtue of the Decision No. 88/2004/QD-BTC, the levels of sea port fees in Viet Nam has been 
made generally comparable to those in Thailand,  which has similar characteristics with Viet Nam 
such as a great number of sea ports (contrary to cases of some other countries in the region which have a small number of sea or entré ports located almost right on sea paths, hence very low sea port 
fees).  
Question 124  Paragraph 109:  Viet Nam applies a customs fee for the purchase or sale of foreign exchange 
which varies according to the value of the transf er.  This fee does not meet the requirements of 
Article VIII of the GATT 1994 and should be eliminated or revised to meet the criteria of Article VIII.  The answer of the Vietnamese auth orities seems not sufficient since the fee still 
remains in function of the value. 
Answer
: 
Currently, Viet Nam collects "customs clearance fe es" which are applicable to all goods ranging from 
normal goods to gold, precious gems and foreign curr encies, to cover the costs of services rendered to 
imports and exports.  With regard  to the importation and exporta tion of foreign currencies, the 
customs clearance fee should not be deemed as import or  export tax; rather, it is merely a fee collected 
to cover services rendered in exchange monitoring wh en there occurs the movements of the physical 
foreign currencies (i.e., foreign currency notes) across the border and in preventing counterfeit 
currencies. 
Specifically, for services rendered in exchange monito ring when there occurs either the importation or 
the exportation of foreign currencies, the payable fee  is VND 100,000 (equivalent to US$ 6.3) for the 
first US$ 100,000 that goes through customs. In c ase that the value of foreign currencies exceeds 
US$ 100,000 in each clearance case,  additional fee of VND 80,000 (equivalent to US$ 5) shall be 
collected for every extra US$ 100,000.  However, the maximum amount of fees (or the cap) payable 
on an individual case shall in no case exceed VND 1.5 million (equivalent to roughly US$ 100). 
In essence, the fee is set at a very low level, if not negligible. Hence, it should be seen neither as a 
protection nor revenue measure.  It is in full compliance with Article VIII of GATT 1994.  The 
stipulation of the ceiling limit of VND 1.5 million (US$  100) in each clearance case shows that the fee 
payable is generally US$ 100 for each individual case.  Additional fees are provided for only to lessen WT/ACC/VNM/36 
Page 52  
 
 the amount of fees payable by those persons having small value of foreign currencies  brought across 
the border, i.e. persons having lesser value of fo reign currencies would be subject to lower fees. 
Viet Nam agrees to commit that all fees and ch arges for services rendered shall be applied in 
conformity with Article VIII of the GATT 1994 from the date of accession. 
Question 125  
A commitment paragraph should be added after this section, covering fees and charges for 
services rendered.  
Answer
: 
Viet Nam agrees to commit that all fees and ch arges for services rendered shall be applied in 
conformity with Article VIII of the GATT 1994 from the date of accession. 
Question 126  We would like to propose the followi ng language for this section:  
"Members of the Working Party sought a commitment from Viet Nam to undertake a 
commitment to ensure conformity of customs fees and charges with Article VIII of the 
GATT 1994.   
The representative of Viet Nam confirmed that from the date of accession all fees and charges 
for services rendered, including those discussed in paras xx – yy above,  would be applied to imports in accordance with Articl e VIII of GATT 1994.  In partic ular, fees that vary based on 
the value or volume of imports or applied for revenue purposes would be eliminated upon 
accession or revised to conform with the provisi ons of Article VIII.  The Working Party took 
note of this commitment." 
 Answer
: 
Viet Nam agrees to commit that all fees and ch arges for services rendered shall be applied in 
conformity with Article VIII of the GATT 1994 from the date of accession. 
Viet Nam takes the view that it is not necessary to  mention specific fees as suggested in the proposed 
commitment language by a Working Party's Member since the mentioned fees have been in 
compliance with Article VIII of the GATT 1994. 
- Application of internal taxes to imports 
Question 127  Paragraph115:  We note the commitment by Vi et Nam to phase-out the discriminatory excise 
tax on automobiles in WT/ACC/VNM/5 and WT/ACC /VNM/33 to bring it into conformity with 
Article III of GATT 94.  However, we request that Viet Nam commit to eliminate the 
discriminatory excise tax on automo biles by the date of accession. 
Answer
: 
With regard to excise tax on domestically manufact ured or assembled automobiles, Viet Nam expects 
Members' consent to a transition period until 1 January 2007 for Viet Nam on the basis of  WT/ACC/VNM/36 
 Page 53 
 
 
understanding of the factual situation of the automob ile industry in Viet Nam. Automobile industry in 
Viet Nam is an infant industry, into which signifi cant investments have just been injected during 
recent years  (roughly ten years).  In order to enc ourage and promote development of the industry, the 
Government has granted investors (most of them ar e foreign investors) certain tax incentives (namely, 
import duties and some internal indirect taxes) upon the commencement of the investment projects. 
The incentive scheme has been gradua lly phased out, and by now, incentiv es are mainly in the form of 
excise tax reductions.  Viet Nam has informed th e Working Party that these excise tax incentives are 
intended to be phased out by 1 January 2007 in accordance with the amended Law on Excise Tax of 
2003. Given the fact that tariff for automobil es is under negotiation between Viet Nam and WTO 
Members for gradual reductions, and with the aim to avoid abrupt changes which might adversely 
affected the domestic automobile industry, Viet  Nam would like to seek for the Working Party's 
consent to the transition period requested by Viet Nam of which the remaining time is not long until 
1 January 2007. 
Question 128  
In paragraph 118, the draft Report states th at imported unprocess ed and semi-processed 
agricultural and aquatic products are placed in a discriminatory position with respect to VAT, 
comparing with those products sold by individua ls and organizations in Viet Nam.  Uniform 
treatment on VAT between domestic unprocessed and semi-processed agricultural and aquatic 
products and imported ones and also between pro ducts sold by individuals and those sold by 
organizations need to be accomplished by the time  of the Vietnamese accession to the WTO.  We 
would also like to seek information on  VAT imposed on agricultural products. 
Answer : 
Viet Nam is of the view that the treatment on unprocessed and raw agricultural products provided for 
in its Law on Value-Added Tax does not violate the principle of National Treatment.  Although these 
agricultural products are not subject to VAT at the first stage, they would be subject to VAT at the 
subsequent stage of processing/trading chain over the total value added. Viet Nam is currently facing 
difficulties in VAT administration in agricultural sector where small-scaled farmers account for a 
predominant proportion of the population participa ting in agricultural production.  Hence, it is 
infeasible and impossible to employ accounting invo ice system for taxation management purpose.  In 
addition, there is no discrimination between do mestic and foreign producers as well as between 
individuals and organizations under the Law on VAT. 
Question 129  Paragraph 118 deals with Viet Nam's VAT exem ption for domestic farm production.  We 
remain concerned that, if not extended to imports as  well, it is a violation of Article III of the 
GATT 1994. 
Answer
: 
Viet Nam is of the view that the treatment on unprocessed and raw agricultural products provided for 
in its Law on Value-Added Tax does not violate the principle of National Treatment.  Although these 
agricultural products are not subject to VAT at the first stage, they would be subject to VAT at the subsequent stage of processing/trading chain over the total value added.  
Question 130  
We also note that Viet Nam's application of di scriminatory excise taxes on imported beer is a 
violation of Article III of GATT 1994.  When a nd how does Viet Nam intend to equalize excise 
taxes applied to domestic and imported beer? WT/ACC/VNM/36 
Page 54  
 
 Answer
: 
In fact, draft beer and draught beer are different typ es of beer in Viet Nam, he nce, they are subject to 
different excise tax rates respectively.  Accordingly,  there is no different excise tax treatment between 
domestically produced and imported beers.  The excise tax measure should not be deemed as a 
discrimination inconsistent with  Article III of the GATT 1994. 
Question 131  We note that Table 3 (Goods and services subject to excise taxes) on page 39 of 
WT/ACC/SPEC/VNM/5 shows different rates for "draught beer" and "draft beer", and that 
there is some reference to the differences in paragraph 115. 
- We would appreciate further details as the explanations provided do not show that 
"draft beer" and "draught beer" are not in a competitive relationship to each other 
and therefore do not show that the exci se rates satisfy the non-discrimination 
requirements of GATT Article III. 
- But we would welcome a commitment to e qualize the rates of excise for beer upon 
accession and advice of the steps that will be taken to achieve this. 
Answer
: 
Currently, Viet Nam imposes different excise tax rat es on draft beer and draught beer respectively. 
Both types of beer can be produced domestically.  However, imports of draft beer has not been 
present due to the fact that this type of beer is only good for consumption within a very short period of 
time and is not popularly brew in other countries.  Import value of draught beer in Viet Nam is 
insignificant (available import statistics do not break down by types of beers, but total value of all 
types of beer imported was around US$ 0.7 milli on in 2004, of which canned and bottled beer 
accounts for the major share).  In Viet Nam, draught a nd draft beer are two different types of beer that 
have distinctive features of quality, alcoholic c ontent (approximately 5 per cent in case of draught 
beer and 3 per cent in case draft beer), production costs, selling price, and consumer preferences. Draught beer has higher quality, higher alcoholic content, significantly higher production costs and 
selling price in comparison with draft beer.  Hence,  its consumption is usua lly confined to a small 
segment of high-income population; whereas draft beer, which is cheap and popularly consumed, is 
often opted for by most of consumers, including low- income earners.  From the perspectives of Excise 
tax, higher tax rate on draught beer in comparison  with draft beer intends to direct consumption 
pattern, as the draught beer is luxurious and hi gh-class product taking into account average level of 
income of the population.  The taxation does not inte nd to discriminate between a type of beer thought 
to be produced domestically and a type of beer as sumed to be mainly imported.  Consequently, as a 
luxury commodity in comparison with the average leve l of income of the population, draught beer is 
imposed higher excise tax rate than draft beer for th e purpose of guiding consumption.  It is not aimed 
at discriminating between domesti cally produced and imported beer. 
Question 132  
WT/ACC/VNM/33, Question 47:  As regards beer, Viet Nam confirms that it applies a different 
duty rate for "draft" and "draught" beer.  The information provided by Viet Nam is still not 
sufficient to rule out a possible discriminatory treatment under Article III.  In fact, it is 
mentioned that draft beer (taxed at 30 per cent) needs to be consumed within one day, which 
makes it likely that it is produced locally  by Vietnamese producers, whereas draught beer 
(taxed at 75 per cent) can be consumed over a longer period of time, which allows for 
transportation and importation.  These two produc ts seem highly substitutable and competitors, 
regardless of the argued different production pr ocess.  No information is provided as to  WT/ACC/VNM/36 
 Page 55 
 
 
production/import pattern of the two products:  therefore, it is not possible to determine 
(although it seems likely) whether the different tax rate results in a de facto discrimination 
vis-à-vis  imported beer.  
Answer : 
Currently, Viet Nam imposes different excise tax rat es on draft beer and draught beer respectively. 
Both types of beer can be produced domestically.  However, imports of draft beer has not been 
present due to the fact that this type of beer is only good for consumption within a very short period of 
time and is not popularly brew in other countries.  Import value of draught beer in Viet Nam is 
insignificant (available import statistics do not break down by types of beers, but total value of all 
types of beer imported was around US$ 0.7 milli on in 2004, of which canned and bottled beer 
accounts for the major share).  In Viet Nam, draught a nd draft beer are two different types of beer that 
have distinctive features of quality, alcoholic c ontent (approximately 5 per cent in case of draught 
beer and 3 per cent in case draft beer), production costs, selling price, and consumer preferences. Draught beer has higher quality, higher alcoholic content, significantly higher production costs and 
selling price in comparison with draft beer.  Hence,  its consumption is usua lly confined to a small 
segment of high-income population; whereas draft beer, which is cheap and popularly consumed, is 
often opted for by most of consumers, including low- income earners.  From the perspectives of Excise 
tax, higher tax rate on draught beer in comparison  with draft beer intends to direct consumption 
pattern, as the draught beer is luxurious and hi gh-class product taking into account average level of 
income of the population.  The taxation does not inte nd to discriminate between a type of beer thought 
to be produced domestically and a type of beer as sumed to be mainly imported.  Consequently, as a 
luxury commodity in comparison with the average leve l of income of the population, draught beer is 
imposed higher excise tax rate than draft beer for th e purpose of guiding consumption.  It is not aimed 
at discriminating between domesti cally produced and imported beer. 
Question 133  
As regards the duty rate applied on "herbal and medicinal alcohol", the information available 
is still not sufficient to assess whether this result s in discrimination under Article III.  In fact, it 
is not clear whether this product is an alcoholic  drink of the same type as liquors, etc, or 
whether (as Viet Nam states in its reply to Questio n 47) it is used for "medical" purposes.  If the 
latter is the case, the reduced excise rate might be justified, as not being in direct competition 
with other alcoholic products.  This aspect needs further clarifications from Viet Nam. 
Answer
: 
Medicinal alcohol is a type of alcohol made by traditional processing methods peculiar to Asian 
countries, including Viet Nam, and used for medication purposes rather than as an ordinary alcoholic beverage.  Medicinal alcohol is generally made by immersing speci al plants, herbs and/or animal 
ingredients in alcohol to get a highly concentrated  solution known as tinctures.  It is used as an 
effective traditional medicine to treat or cure illness.  The amount of medicinal alcohol produced and 
consumed is insignificant.  The excise tax rate appli cable to medicinal alcohol is set low since its sole 
usage is for medication and it is not in dir ect competition with other alcoholic products.  
Question 134  
Paragraph 120:  A commitment paragraph should be added after this section, covering other 
excise taxes and VAT.  
We take note of Viet Nam's intention to request  a transitional period for automobiles/excise tax 
until 2007 and reserve our right to take a position on this request at a later stage. WT/ACC/VNM/36 
Page 56  
 
 Answer
: 
Viet Nam agrees to add a commitment paragraph after this section covering internal taxes, after a 
common understanding and agreement on specific contents are achieved. 
Question 135  
We would like to propose the following commi tment language for this section:  "The 
representative of Viet Nam confirmed that from the date of accession, Viet Nam would ensure 
that its laws, regulations and other measures rela ting to internal taxes and charges levied on 
imports would be in full conformity with its WTO obligations, in particular Article III of GATT 1994, and that it would implement such la ws, regulations and other measures in full 
conformity with those obligations.  The Work ing Party took note of this commitment." 
Answer
: 
Viet Nam agrees to add a commitment paragraph after this section covering internal taxes, after a 
common understanding and agreement on specific contents are achieved. 
- Quantitative import restrictions, including prohibitions, quotas, and licensing systems 
Question 136  
We thank Viet Nam for the efforts it has made to provide further information on quantitative 
import restrictions. 
- We would, however, appreciate more information concerning line management 
measures, including the measures to be retained after accession, and the WTO justification for the retention of the measure. 
- We would also be grateful if Viet Nam could provide details of the licensing used, 
including whether the licenses are non-automa tic, or are automatic within the meaning 
of the relevant provisions of Articles 1 and 2 of the Agreement on Import Licensing Procedures. 
Answer
: 
The Prime Minister issued the Decision No. 41 /2005/QD-TTg dated 2 March 2005 on promulgation 
of the Import Licensing Regulation that is strictly  based on the WTO rules and regulations.  This 
Decision shall take effect from 1 September 2005.   Pursuant to Viet Nam's regulations, line-
management measures are not allowed to constitu te quantitative import restrictions and is in 
compliance with the Agreement on Import Licensing Procedures.  
Question 137  
Paragraph 121:  We would like to seek clarific ation on payment method restrictions on 
products listed in Table 4(c).  Are these restrictio ns still applied? If yes, does Viet Nam have any 
plans for their elimination?  
Answer : 
According to the Decision No. 254/1998/QD-TTg dated 30 December 1998 of the Prime Minister, 
enterprises that import consumer goods listed in Table 4(c) of the document WT/ACC/SPEC/VNM/5 
were required to self-balance its foreign exchange needs and not to use deferred payment method to  WT/ACC/VNM/36 
 Page 57 
 
 
pay for their imports.  This provision was abolished as from 1 May 2001 by the Decision No. 46/2001/QD-TTg dated 4 April 2001 of the Prim e Minister on import-export management for the 
period 2001-2005. 
Question 138  
Paragraph 124:  The application of import prohib itions is too trade-restrictive of a measure to 
apply to commercially-traded goods such as toys and motorcycles.  We recommend Viet Nam 
consider using an import-licensing regime rather than an import prohibition to regulate trade 
in these products, if there are safety or health concerns. 
Answer
: 
The responsibility of providing children with prot ection and care with a view to ensuring their 
development in a sound environment without violence rests upon the government of every nation in 
the world.  Therefore, it is a noble task to keep  children away from games that might adversely 
affected their education, morality and dignity de velopment process.  Viet Nam only prohibits the 
importation of toys that have negative impacts on di gnity education and social order. All other toys 
are freely imported upon demand without any restriction. 
Motorcycles with engine capacity exceeding 175cc is subject to regulations on eligible users (i.e., 
only for special and no-commercial purposes  including the police, armed forces and for sport 
competition).  The so-called de facto import pr ohibition of motorcycles with engine capacity 
exceeding 175 cm3  results from the restricted domestic  registration and is applied on a non-
discriminatory basis. Viet Nam neither has domes tic production nor permits trading of motorcycles 
with engine capacity exceeding 175 cm3  in the domestic market. All other kinds of motorcycle are 
freely imported upon demand without any restriction. 
Question 139  
In paragraphs 125 and 126, the draft Report refe rs to the prohibition of import of motorcycles 
with engine capacity exceeding 175 cm3 as well as import of second-hand clothing which are of 
special interest to some Members.  The Vietna mese side explains that the reason for subjecting 
such motorcycles to import prohibition is to ensure traffic safety and that their domestic 
registration is not permitted. We are of the view that such import prohibition measure may 
causes a problem from the point of its consistency with Article 11 of GATT 1994 and may also damage the interests of the Vietnamese consumer s.  Therefore, we would like to request the 
Government of Viet Nam to abolish such measure, upon its accession to the WTO. 
Answer
: 
Motorcycles with engine capacity exceeding 175cc is subject to regulations on eligible users (i.e., 
only for special and no-commercial purposes includi ng the police, armed forces and for sport 
competition).  The so-called de facto import pr ohibition of motorcycles with engine capacity 
exceeding 175 cm3  results from the restricted domestic  registration and is applied on a non-
discriminatory basis. Viet Nam neither has domes tic production nor permits trading of motorcycles 
with engine capacity exceeding 175 cm3  in the domestic market. All other kinds of motorcycle are 
freely imported upon demand without any restriction. 
Import prohibition of second-hand clothing is targ eted at the protection of public health and 
environment against epidemics. WT/ACC/VNM/36 
Page 58  
 
 Question 140  
Paragraph 128 states that quantitative restrictions are applied to imports of cotton and maize.  
Are these restrictions in place of the TRQs that Viet Nam reported were eliminated in 
paragraph 103? 
Answer
: 
The Prime Minister issued the Decision No. 46/ 2005/QD-TTg dated 3 March 2005 on revisions of the 
List of imported goods subject to tariff rate quotas wherein the tariff rate quotas on dairy products, 
maize and cotton would be eliminated from 1 April 2005.  
Viet Nam has committed to eliminate all discretionary licensing as mentioned in paragraph 128 upon 
accession.  
Question 141  
Table 4(a):  The prohibition of used articles, such as listed in table 4(a) is not justifiable under 
WTO provisions.  Similar domestic articles are trad ed in Viet Nam without any such restriction.  
If there are concerns for health or safety, less restrictive, technical requirements applicable to 
both domestic and imported pro ducts should be developed.   
Answer : 
Viet Nam takes note of the above comments. Viet Nam commits to eliminate its import prohi bition on used motor-vehicles from the date of 
accession (detailed commitment is presented in Anne x 1 of this document) and to apply technical 
measures to used motor-vehicles in compliance with the TBT Agreement. 
Viet Nam is developing a system of quality sta ndards for traffic, environment and human health 
safety applicable to means of transportation and sha ll promptly issue these regulations to ensure that 
this commitment is enforced. 
However, due to the low level of its management  capability, import prohi bition on other second-hand 
goods appears to be the only effective alternative to  protect health, environment and safety.  Viet Nam 
seeks for the understanding of the Working Party's Me mbers on its factual situation, especially when 
some WTO Members with much higher level of development still maintain import prohibition on 
certain used items. 
Question 142  
Please provide HS numbers for the second-hand goods on this list.  Is this list of banned second-
hand goods comprehensive?  
Answer
: 
The list of used consumer goods subject to import prohi bition by HS codes is attached to the Circular 
No. 11/2001/TT-BTM dated 18 April 2001 in Annex 1B and has been submitted to the Working Party 
as an Annex to the document WT/ACC/VNM/33.  WT/ACC/VNM/36 
 Page 59 
 
 
Question 143  
The ban on imports of large motorcycl es should be lifted upon accession.   
Answer : 
Motorcycles with engine capacity exceeding 175cc is subject to regulations on eligible users (i.e., 
only for special and no-commercial purposes includi ng the police, armed forces and for sport 
competition).  The so-called de facto import pr ohibition of motorcycles with engine capacity 
exceeding 175 cm3 results from the restricted domestic registration and is applied on a non-
discriminatory basis.  Viet Nam neither has domest ic production nor permits trading of motorcycles 
with engine capacity exceeding 175 cm3  in the domestic market.  All other kinds of motorcycle are 
freely imported upon demand without any restriction. 
Question 144  
In paragraph 128 of the draft Report, there is reference to the Vietnamese import licensing 
system.  For the purpose of confirming the consis tency of such import licensing system with the 
WTO Agreements, we would like to seek the deta iled information concerning the import licence 
on each agricultural and fishery product. 
Answer : 
The List of imported goods subject to restrictive import licenses together with a phasing-out schedule 
has been submitted to the Working Party as Annex 2 of the document WT/ACC/VNM/33.  Viet Nam 
commits to eliminate all quantitative import restrictions upon accession and to apply import licenses in conformity with the WTO rules and regula tions, including the Agreement on Import Licensing 
Procedures, from the date of accession. 
Question 145  
In paragraph 129, the draft Report states that the Vietnamese Government would eliminate all 
quantitative import restrictions in the form of quotas or restrictive licenses upon accession. 
With regard to importation of SKD and CKD fo r assembly of automo biles and motorbikes, 
there is a description in Annex 3 of WT/ACC/VNM/3/Add.1 that they are exception to such elimination, which seems to indicate the possi bility of imposing quantitative restriction on 
importation of such SKD and CKD.  On the other hand, there is a description in Table 2 (List of 
goods Subject to Quantitative Restriction and Phasing out Schedule) of WT/ACC/VNM/33 that SKD and CKD for assembly of automobiles will excluded from the restriction from 1 May 2005, 
and those of motorbikes will be excluded from 1 January 2003 respectively.  We need to seek 
clarification from the Vietnamese side on the poin ts mentioned above.  In any event, we are of 
the view that production quantity of automob iles and motorbikes should be freely determined 
according to demand in the Vietnamese market, wh ich would be indispensable to facilitate the 
enterprises' sound production activities.  Therefore we would like to request the Government of 
Viet Nam to ensure that SKD and CKD for asse mbly of automobiles and motorbikes should not 
be subject to quantitative import restriction. 
Answer
: 
Please refer  to Table 2 (List of Imported Goods S ubject to Quantitative Restrictions and Phasing-out 
Schedule) in Annex 2 of the document WT/ACC/VN M/33, wherein import prohibition on automobile 
components in the form of SKD and CKD1 was abolished from 1 May 2001 and on two-wheel and 
three-wheel motorcycle components in form of SKD and CKD was abolished from 1 January 2003.  WT/ACC/VNM/36 
Page 60  
 
 Enterprises manufacturing and assembling automobil es and motorcycles are no longer required to 
apply for quotas or licenses to import automobile a nd motorcycle components in the form of SKD and 
CKD or to import automobiles and motorcycles.  Manufacturers can import automobiles, motorcycles 
and their components in the form of SKD and CKD upon demand for these products without any quantitative import restriction. 
Question 146  Paragraph 129:  Have the QRs listed in Table 4( b) been eliminated according to the schedule 
given? 
Answer
: 
Most of the items listed in Table 4(b) have been  removed from the List of imported goods subject to 
quantitative restrictions of Viet Nam and the rem oval time as well as legislation providing for the 
removal has been explicitly stated. 
With respect to a very few remaining items, Viet  Nam shall eliminate quantitative restrictions upon 
accession in full compliance with its WTO commitments.  
Question 147  We note that in paragraph 130 of WT/ACC/SPEC/ VNM/5 Viet Nam states the products subject 
to line management for the period 2001-2005 are listed in Table 6.  However, the list was not 
definitive and could be revised when needed. 
- We would be grateful for advice on whether there are other products subject to line 
management that have not been included on the list, and the criteria for revising the list.  
We would also be grateful if Viet Nam coul d provide a definitive list of products that 
would be subject to line management after accession. 
- Could Viet Nam clarify the relationship between the line management measures 
scheduled for phase out in section C of Table 4b (List of goods subject to quantitative 
restrictions and phase-out schedule) and those listed in Table 6 (Products subject to line 
management by line Ministry)? 
- We would appreciate advice on the purpose of line management measures for 
agricultural products, if they are not intended to restrict the quantity of imports. 
- Could Viet Nam advise whether licenses are automatically issued by line Ministries? 
Answer
: 
Please refer to Annex 3 of the document WT/ACC/ VNM/33 providing the Current List of imported 
goods subject to line management for the period 2001-2005 and management methods and 
management principles applicable to these goods.  Th is Annex includes all relevant information such 
as full list of products, rationale for line manageme nt and management methods, etc.  During the 
period 2001-2005, the regime of line management of imports and exports has in fact changed towards 
further elimination of items subject to licenses without  any new addition to the list.  The lists of goods 
subject to line management issued by line minist ries are fundamentally developed on the basis of the 
multilateral arrangements that Viet Nam is a par ticipant such as Wildlife Protection Fund, Treaty on 
Ammunition Ban, internationally recognized list of  endangered and extinct species of animals and 
plants, etc. 
As a principle, line import and export licenses do not impose quantitative restrictions on imports and 
exports.   WT/ACC/VNM/36 
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Goods subject to line management are those peculia r to environment protection, human health, labour 
safety, national security, food safety and hygiene.  Line ministries issue licenses to import for the 
purpose of testing/experiments new items not yet perm itted to use in Viet Nam, to ensure compliance 
with standards and conformity with regulations .  These goods are imported upon importers' demand. 
Viet Nam commits to apply its line management measures in conformity with the WTO rules and 
regulations from the date of accession. 
Question 148  
Table 4c contains a list of products subject to payment method restrictions. 
- Could Viet Nam provide advice on the nature and purpose of these restrictions? 
- We would appreciate clarification as to whether all of these restrictions have been 
eliminated. 
Answer : 
Restriction in payment method mentioned in Ta ble 4(c) of the document WT/ACC/VNM/5 means 
importers of goods listed in this Table are not allowe d to pay by deferred L/C for their imports.  As 
stated in Section D of Table 4(b) of the document WT/ACC/VNM/5, the restriction in terms of payment method was already abolished on 1 May 2001. 
Question 149  
We note that Viet Nam prohibits the import of  used materials and equipment, including used 
machines, tyres and engines (table 4a), on the gro unds of traffic safety.  It also has import 
restrictions on a range of second-hand consum er goods, including textiles and clothing, 
electrical goods and furniture.  We would strong ly encourage Viet Nam to look to less trade-
restrictive ways of addressing its legitimate pro duct safety concerns.  Safety-related regulations 
in respect of, for example, engines, tyres, electric al goods or clothing, applied to both domestic 
and imported goods alike, would be a more WTO consistent approach than import bans.  We 
note that Viet Nam is developing a system of safety certification for consumer products, which 
could equally be applied to ensure the safety of used goods and equipment.  We would also urge 
Viet Nam to reconsider its ban on the import ation of motor cycles with engine capacity 
exceeding 175 cm
3.  Safety concerns would be more appr opriately addressed through technical 
regulation and certification. 
Answer : 
Viet Nam commits to eliminate its import prohi bition on used motor-vehicles from the date of 
accession (detailed commitment is presented in Anne x 1 of this document) and to apply technical 
measures to used motor-vehicles in compliance with the TBT Agreement. 
Viet Nam is developing a system of quality sta ndards for traffic, environment and human health 
safety applicable to means of transportation and sh all promptly issue these regulation to ensure that 
this commitment is enforced. 
However, due to the low level of its management  capability, import prohi bition on other second-hand 
goods appears to be the only effective alternative to  protect health, environment and safety. Viet Nam 
seeks for the understanding of the Working Party's Me mbers on its factual situation, especially when 
some WTO Members with much higher level of development still maintain import prohibition on 
certain used items. WT/ACC/VNM/36 
Page 62  
 
 Question 150  
We note that Table 4b (List of goods subject to quantitative restrictions and phase-out schedule) 
indicates that quantitative restrictions on a num ber of agricultural products were to be phased 
out (by May 2001 in the case of livestock, oil seeds and cereals; by January 2002 for vegetable 
oils) or replaced by TRQs (from May 2003 in th e case of sugar, dairy products and eggs).  
However, comments in paragraph 128 suggest that discretionary licensing may still be used. 
- We would be grateful for clarification concerning quantitative restrictions and 
discretionary licensing measures affecting agricultural products. 
Answer
: 
Paragraph 128 quotes the comments from one Member, not a statement from Viet Nam. 
Viet Nam commits to eliminate quantitative import r estrictions on agricultural products from the date 
of accession.  
Question 151  
A number of measures notified in Annex 4 of WT/ACC/VNM/33 may have been applied. 
We would be grateful if the following measures  notified there be listed appropriately as non-
tariff measures:  (1) any measures relating amounts of tariff quota allocated to importers' levels 
of domestic production; (2) any measures rela ting amounts of tariff quota allocated to 
importers' levels of exports; (3) any measur es allocating tariff quota contingent upon the 
approval of import plans by the government; (4) any measures allocating tariff quota on the conditions that the importer uses amounts imported only for its own production; (5) any 
measures requiring that the importer refrains from  internal resale of product imported under 
the quota; (6) any measures depriving intending tr aders that do not have a particular kind of 
business registration of the right to be importers of record in relation to the amounts imported 
under the quota and of the right to become quo ta holders; (7) any requirements that a quota 
holder must send quarterly reports on tariff quota usage to the Ministry of Trade (when such 
data would be readily available to the governme nt through official customs statistics); and 
(8) any requirements prohibiting the sale, purch ase and transfer of allocated tariff quota 
quantities to other parties. 
Answer
: 
For the purpose of clarification, the discussion on these points would be more appropriately presented 
in the section on TRQs.  Please see also the answer to  Question 110 where the same issues have been 
raised and responded. 
Question 152  
Please confirm that the planned timetable for enacting a WTO consistent import licensing 
system by 1 January 2005 is still on course.  Please provide a copy of the implementing 
legislation for the new system as soon as possible for WP review. 
Answer : 
The Prime Minister issued the Decision No. 41 /2005/QD-TTg dated 2 March 2005 on promulgation 
of the Import Licensing Regulation that is strictly  based on the WTO rules and regulations.  This  WT/ACC/VNM/36 
 Page 63 
 
 
Decision will take effect from 1 September 2005.  A detailed comparison between the provisions of 
this Decision and the WTO's Agreement on Import Licensing Procedures will be sent to the Working 
Party as soon as possible.  
Question 153  
We will need more specific information on the fees charged for import licenses, prior to 
finalization of this section. 
Answer : 
Viet Nam does not collect a licensing fee on all imports, but rather, it collects licensing fee on 
particular products involved in importation a nd exportation for which a written permission is 
requested for the importation or exportation.  For instance:  import/export licensing fee for goods 
deemed as cultural publication/particle is VND 50, 000 (approximately US$ 3.2) for a licence in case 
of formal trade; VND 2,000 (approximately US$ 0.13)  for a licence in case of informal trade (the 
Decision No. 203/2000/QD-BTC dated 12 December 2000). 
Question 154  
We take note of the commitment in paragraph 135. Answer
: 
We thank you for the comment. 
Question 155  
Paragraph 135:  The commitment paragraph sh ould also cover other existing import 
prohibitions in addition to cigarettes and cigars. 
Answer : 
In addition to cigarettes and cigars, Viet Nam co mmits to eliminate the import prohibition on used 
motor-vehicles from the date of accession to the WTO as detailed in Annex 1 of this document and to 
apply technical regulations in conformity  with the TBT Agreement on these products. 
Question 156  
We note that the commitment in paragraph 135 of WT/ACC/SPEC/VNM/5 on fully complying 
with the Agreement on Import Licensing is in square brackets.  We would encourage Viet Nam 
to accept this commitment. 
Answer : 
Viet Nam agrees to delete the brackets. Question 157  We would suggest a single comprehensive list of  non-tariff measures applicable to imports be 
tabulated for inclusion in the report, and that th e Secretariat assist Viet Nam in compiling such 
a list for inclusion in the forthcoming draft.  Such a list would assist Members' understanding of 
the measures applied by Viet Nam and the Working Party's evaluation and discussion of NTMs.  
Under such a comprehensive list: WT/ACC/VNM/36 
Page 64  
 
 - The listing of non-tariff measures would be  complete and permanent.  All non-tariff 
measures of all kinds applicable to im ports from 2001 onwards would be listed, 
including all such measures that have since been eliminated or reformed (so Members 
will know what has happened), that currentl y remain in place with an appropriate 
justification (so Members will know where matters stand) and that will be eliminated or reformed in the future (so Members will know what Viet Nam intends to do).  All 
products, including agricultural products, subject to non-tariff measures would be 
listed. 
- The list would have separate columns for:  1. tariff line; 2. product description; 
3. description of the measure (giving a brief description of the nature of the measure, e.g., import ban, quota, tariff quota, discretio nary licensing requirement, non-automatic 
licensing requirement, approval requirement, line management requirement, trading 
rights restriction, local content requiremen t, mixing regulation, minimum customs 
value, etc.) and the rationale; 4. the entity  (or entities) responsible for applying the 
measure; 5. the legal basis for the measure; 6. WTO justification for the measure or date 
of elimination.  
- All products concerned would be listed in the numerical order of their HS-based code. 
- There would, subject to the above, be a cons olidation into such a single list of:  all 
information already supplied in Tables 1, 4a, 4b, 4c, 5a, 5b, 6, 7, 11 of Annex 2 of WT/ACC/SPEC/VNM/5 and in Annex 4 of WT/ACC/VNM/33; all additional 
information needed to be provided by Viet  Nam to complete the tabulation of such 
measures under the six columns; and all addi tional information sought by Members in 
connection with any other non-tari ff measures applied by Viet Nam. 
- We would however support the retention of some separate lists for as long as this is 
considered appropriate (even if the inform ation was duplicated), provided that all 
information in those lists is, and will remain , fully consistent with information in the 
consolidated list. 
Answer
: 
Viet Nam has provided detailed lists of all non-ta riff measures that had been applied and their 
phasing-out schedules in Tables 4(a), (b), (c), 5(a), 5(b), 6 and 7 of Annex 2, 
WT/ACC/SPEC/VNM/5.  Viet Nam considers that th ese lists have fully provided the information 
required. In addition, Viet Nam has committed to elim inate all quantitative import restrictions that are 
inconsistent with the WTO's regulations  from the date of accession to the WTO. 
Question 158  
We would note that there is no Table 3 in Annex 2 of WT/ACC/SPEC/VNM/5.  Is there a 
missing table? 
Answer : 
The WTO Secretariat will consider this comment. Question 159  In paragraph 268 of the draft Report, the Viet namese side states that import prohibition of 
second-hand consumer products including second-ha nd clothing is required to protect human 
health.  We are also of the view that unless the re is a convincing scientific basis for imposing 
such import prohibition measure, such measur e may cause a problem from the point of its 
consistency with Article 11 of GATT 1994.  In this regard, we need to seek  clarification from the 
Vietnamese side on how such second-hand clothing is treated in Viet Nam (e.g. whether or not  WT/ACC/VNM/36 
 Page 65 
 
 
its resale as well as distribution in Viet Nam is prohibited).  The Vietnamese side explains that 
there is no enforceable internal mechanism concernin g such clothing.  If that is the case, the 
Government of Viet Nam should develop such internal mechanism in an expeditious manner 
and make its best efforts to abolish the import  prohibition measure. We would like to seek an 
explanation on the Vietnamese efforts in this regard. 
Answer : 
Viet Nam takes note of the above-mentioned comme nts.  However, while none of processing and 
quarantine facilities for used clothing has been se t up in Viet Nam and due to the low level of 
management capability, import prohib ition on second-hand clothing app ears to be the only effective 
alternative to protect public health and environm ent against epidemics.  Viet Nam seeks for the 
understanding from the Working Party's Members on its situation, especially when some WTO 
Members with much higher level of developmen t still maintain import prohibition on certain used 
items. 
- Customs valuation 
Question 160  Paragraph 137: We note the statement by Viet Nam regarding "measures to combat 
commercial fraud and transfer pricing ".  We have  to assume that Viet Nam does not mean to 
refer to a need to "combat" transfer pricing. 
Answer
: 
In reality, regarding the tax administration at border gates as well as in domestic markets, the capacity 
of Viet Nam in applying measures against trade fr auds and transfer pricing is still weak and need 
further improvement.  This is one of the areas th at Viet Nam expects developed Members to extend 
their technical assistance.  
Question 161  
We thank Viet Nam for the additional information provided on customs valuation, and on the 
commitment in the update note to fully implem ent the Customs Valuation Agreement at the 
date of accession.   We also note in paragraph 139 of WT/ACC/SPEC/VNM/5 Viet Nam says 
that it will phase out minimum import values by the date of accession and that in paragraph 143 
further states that the minimum values affecting imports of goods in Annex 7 have been eliminated.  However, we note that Viet Nam' s action plan for the implementation of the 
Customs Valuation Agreement (WT/ACC/VNM/20/ Rev.1) provides for the progressive phase-
out of minimum values up to 1 July 2007.  We also note that, in the Circular providing Guidelines on Decree No. 60-2002-ND-CP on Determ ining Dutiable Value of Imported Goods, 
in Chapter 1.III (methods for determining dutiable value of imported goods and order of 
applicability), there is a reference to the calcul ated price and deductible price not temporarily 
applying, and not setting any timeframe for their application. 
- We would appreciate clarification on the timetable for the elimination of minimum 
values. 
- We would be grateful for advice as to wh ether Viet Nam is still seeking transition 
periods for the implementation of  the Customs Valuation Agreement. 
- We hope that Viet Nam will be in a position to agree to accept the commitment in the 
first square bracketed text in paragra ph 144 of WT/ACC/SPEC/VNM/5 to fully apply 
the provisions of the Customs Valuation Agreement from the date of accession. WT/ACC/VNM/36 
Page 66  
 
 Answer
: 
Regarding presentation, there was a typing error in paragraph 143 of the WT/ACC/SPEC/VNM/5 at 
the 9th Working Party meeting, which specifically men tioned that minimum price list applicable to 
import, appeared as Annex 7, has been eliminated, wh ile this content was already reflected originally 
at paragraph 139 that Viet Nam will abolish the minimum price list from the date of accession.  
However, Viet Nam, in fact, had abolished the mi nimum price list since September 2004 (by virtue of 
Circular No.87/2004/TT-BTC dated 31 August 2004).  Th erefore, this content in the Draft Report of 
the Working Party will be updated accordingly. 
According to the Circular No. 118/2003/TT-BTC guiding the implementation of the Decree 
No. 60/2002/ND-CP, two methods of customs valuation,  which are  part of deducted value in case of 
further processing and computed value, temporar ily have not been applied (as mentioned in 
paragraph 143 of the WT/ACC/SPEC/VNM/5) due to cer tain technical difficulties.  However, in the 
updated action plan to implement the Customs Valuation Agreement (WT/ACC/VNM/20/Rev.2), 
Viet Nam committed to implement fully these two methods upon accession. 
Thus, basically, Viet Nam will fully comply with th e Customs Valuation Agreement from the date of  
accession.  Detailed commitment language will be  discussed to reflect this compliance. 
Question 162  
Paragraph 140:  We note that Viet Nam, in or der to comply fully with Article 11 of the 
Agreement on Customs Valuation, has dra fted new amendments to the Ordinance on 
Procedures for Settlement of Administrative Disp utes, which were expected to be adopted by 
the National Assembly during the fourth qua rter of 2004.  Have these amendments been 
adopted and when will they come into force? 
Answer : 
Viet Nam's existing legislation permits importers or any other person responsible for paying import 
duty to bring a case regarding the decisions made by the customs authority before the Administrative 
Court after having appealed the disputed decision to the customs authorit y issuing the decision. 
It is proposed that the Ordinance on amendment of and supplement to some Articles of the Ordinance 
on Procedures for Settlement of Administrative Dis putes, which is expected to be adopted by the 
National Assembly in 2005, will permit an appeal against an administrative decision before the court 
even after this decision had been appealed to the highest level of administrative authority. 
Question 163  
We note the assurances in paragraph 143 of th e draft report "that the minimum customs values 
stipulated in accordance with Decision s No. 164/2000/QD-BTC of 10 October 2000, 
No. 136/2001/QD-BTC of 18 December 2001 and No. 164/2002/QD-BTC of 27 December 2002, 
affecting imports of goods enumerated in Table 7, had been eliminated and that the new 
customs valuation system would appl y to all imports upon accession." 
Answer : 
In fact, the minimum price list had been abolis hed since September 2004 according to the Circular 
No. 87/2004/TT-BTC dated 31 August 2004 and Viet Nam will fully comply with the Customs 
Valuation Agreement from the date of  accession.   WT/ACC/VNM/36 
 Page 67 
 
 
Question 164  
We are reviewing the information in WT/ACC /VNM/34 and WT/ACC/VNM/35 on Viet Nam's 
implementation of the Agreement on Customs Va luation.  We will have additional comments 
and questions when that review is completed. 
Answer : 
Viet Nam is willing to answer questions to clarify th e issues that are interested  by the Members of the 
Working Party. 
Question 165  We would like to see evidence of the actual im plementation of these assurances prior to the 
approval of Viet Nam's accession package by th e Working Party.  We seek to review the 
provisions with a view to making useful comments, as necessary. 
Answer
: 
Viet Nam has abolished the minimum price list according to the Circular No. 87/2004/TT-BTC dated 
31 August 2004.  
Question 166  
We note the duelling commitment language in par agraph 144.  The language in the second set of 
brackets is more acceptable, but may need further revision. 
Answer : 
Viet Nam agrees to discuss appropriate commitment language. - Rules of origin Question 167   Paragraph 147:  Please add "The Working Party t ook note of this commitment" at the end of 
the paragraph. 
Answer
: 
Viet Nam agrees with this suggestion. 
Question 168  
We take note of the assurance in paragraph 14 7 of the draft report that Viet Nam will fully 
implement the Agreement upon accession, but look for specific evidence prior to accession of 
legislation addressing both broader implementati on of the agreement and the provisions of 
Article 2(h) and paragraph 3(d) of Annex II of the WTO Agreement on Rules of Origin, i.e.:  
(a) that for both non-preferential and preferen tial trade, upon the request of an exporter, 
importer or any person with a justifiable cause,  assessments of the origin that would be 
accorded  to a good are issued as soon as possible but no later than 150 days after the 
request; 
(b) that requests for such assessments shall be  accepted before trade in the good concerned 
begins and may be accepted at any later point in time; and WT/ACC/VNM/36 
Page 68  
 
 (c) that such assessments shall remain valid for three years provided that the facts and 
conditions, including the rules of origin, under which they have been made remain 
comparable. 
Answer
: 
The Decree on Rules of Origin in accordance with  the Commercial Law which is scheduled to be 
passed by the National Assembly at its 8th Session in May 2005 is being drafted and expected to be 
finalized by the end of 2005.  Ministry of Trade is  responsible for the drafting in co-ordination with 
relevant Ministries and agencies.  In principl e, the draft Decree shall be based on the WTO's 
Agreement on Rules of Origin and Agreement on Customs Valuation.  
Question 169  
We would like to see the draft law that will estab lish or confirm the existence of this service 
prior to finalization of Viet Nam's accession documents. 
Answer : 
The Decree on Rules of Origin in accordance with  the Commercial Law which is scheduled to be 
passed by the National Assembly at its 8th Session in May 2005 is being drafted and expected to be 
finalized by the end of 2005.  Ministry of Trade is  responsible for the drafting in co-ordination with 
relevant Ministries and agencies.  In principl e, the draft Decree shall be based on the WTO's 
Agreement on Rules of Origin and Agreement on Customs Valuation.  
Question 170  
We look forward to Viet Nam's enactment of its new Commercial Law and to an opportunity to 
review its provisions for conformity with appr opriate WTO rules and disciplines, including 
those found in the Agreement on Rules of Origin. 
Answer : 
According to the Program for Enacting Laws and Ordinances in 2005 of the National Assembly, the 
Commercial Law (amended) is scheduled to be passed at the National Assembly's 7th session in 
May 2005.  One of the guiding principles in drafti ng the revised Commercial Law is to ensure its 
compliance with international treaties to which Viet  Nam is a party, to be in line with the WTO 
principles and international trade rules and practices so  as to facilitate Viet Nam's participation in the 
world trade system.  During the drafting process, the draft Law has taken into account comments from 
international experts thanks to the technical pr ograms funded by Members of the Working Party. 
An unofficial English version of the draft revised  Commercial Law shall be submitted to the Working 
Party as soon as the translation is completed. 
- Other customs formalities Question 171  Does Viet Nam intend to become a member of  the International Convention on the 
Simplification and Harmonization of Customs Procedures?   WT/ACC/VNM/36 
 Page 69 
 
 
Answer : 
The General Department of Customs is putting ever y effort to prepare all necessary conditions in 
order to participate in the International Conve ntion on the Simplification and Harmonization of 
Customs Procedures. 
Question 172  
With regard to paragraphs 148 and 149, we are of  the view that since customs procedures which 
are not transparent would severely damage the smooth exportation, the effective measures for 
ensuring transparent customs procedures by the Government of Viet Nam is required.  The 
issues pertaining to customs procedures are of great importance and therefore the Vietnamese 
commitment to the effect that they will be a pplied in a uniform and impartial manner and in 
conformity with the WTO Agreements is required. 
Answer : 
The Customs Law (in Chapter III) clearly stipulates rights and obligations of importers, as well as 
rights and obligations of customs officers in im plementing the Customs Law.  Generally, provisions 
of the Customs Law are consistent with common set of rules and procedures recommended by the 
Revised Kyoto Convention of 1999 on harmonizati on and simplification of customs procedures. 
Customs procedures in Viet Nam have been reformed to be more facilitative to trade, investment and 
to ensure full compliance with internatio nal obligations committed by Viet Nam. 
To that end, the Customs Law of Viet Nam is currently under process of amendments and 
supplements before it would be submitted to the National Assembly  for approval (tentatively in 
May 2005).  Specifically, the ame ndments and supplements would in clude: transparency of customs 
procedures, compliance and standardization of cu stoms procedures in accord ance with the Revised 
Kyoto Convention; simplification and harmonizati on of customs procedures to reduce number of 
documents required; application of electronic custom s declaration and clearance (expected to begin in 
2005); application of risk manageme nt and post-clearance audit system. 
Question 173  
In paragraph 149, the draft Report provides th at customs procedures are publicly known and 
transparent.  We would like to seek clarificatio n on how such publication and transparency will 
be implemented and ensured.  Also we would like to seek the detailed information on "hot line" 
communication system mentioned in the same paragraph.  
Answer : 
Regarding reform on legal document formulation process:  Viet Nam consults opinions of 
stakeholders in the process of legal document formul ation to check and ensure the feasibility.  Legal 
documents once accomplished would be subject to pub lication in the Official Gazette to all interested 
individuals and entities.  There is a reasonable time frame for stakeholders to understand the 
regulation before it actually takes e ffect (a legal document would take effect in 15 days after the date 
of publication in the Official Gazette). 
Customs procedures, regulations and policies rela ting to importation and exportation are disclosed 
officially through mass media devices:  Customs news, Customs Journal, website of the General 
Department of Customs ( www.customs.gov.vn ).  At every provincial and city customs departments, 
there is a grievance settlement team which could be contacted through telephone hotlines. WT/ACC/VNM/36 
Page 70  
 
 - Preshipment inspection 
Question 174  We renew our request that Viet Nam accept the proposed commitment language contained in 
paragraph 152 of the draft report. 
Answer
: 
Viet Nam agrees with the commitment written in th e first sentence of paragraph 152 of the Draft 
Report with certain adjustment.  We would like to propose the detailed language as follows:  "The 
representative of Viet Nam stated that if preship ment inspection requirements were introduced, they 
would be in conformity with the requirements of  the Agreement on Preshipment Inspection and other 
WTO relevant agreements." 
- Anti-dumping, countervailing duties, safeguard regimes  
Question 175  
Paragraph 156 of WT/ACC/SPEC/VNM/5, which is in square brackets, co ntains a commitment 
to apply safeguards, anti-dumping and counterva iling measures in conformity with the relevant 
WTO agreements upon accession.  Alternatively, in the absence of any legislative authority at 
the time of accession, Viet Nam would not apply such measures until legislation in conformity 
with the provisions of these WTO Agreements was implemented. 
- We hope Viet Nam will be in a position to accept this commitment. 
Answer : 
Viet Nam commits to apply safeguards, anti-dumpi ng and countervailing measures in conformity with 
WTO rules upon accession.  
Question 176  We have conducted a preliminary examinatio n of Viet Nam's new anti-dumping and 
countervailing duty legislation and has prepared the following written questions and comments 
for Viet Nam's review and response.   
Answer
: 
Viet Nam welcomes the comments on our Ordinance Against Dumping of Imported Goods into 
Viet Nam  and the Ordinance Against Subsidized Imported Goods into Viet Nam and is willing to 
provide necessary clarification.  
Question 177  
We look forward to Viet Nam's responses, and suggest that additional legislation may be 
necessary to address the deficiencies identified.  WT/ACC/VNM/36 
 Page 71 
 
 
Answer : 
The Ordinance Against Dumping of Imported Goods into Viet Nam  was drafted in compliance with 
WTO's regulations on anti-dumping and is not inconsistent with the WTO Agreement on Anti-
Dumping. 
Viet Nam commits to apply safeguards, anti-dumpi ng and countervailing measures in conformity with 
WTO rules.  
Question 178  
The following comments and questions refer to  Viet Nam's Ordinance Against Dumping of 
Imported Goods into Viet Nam and are provided for written submission only. 
In general, the Ordinance attempts to follow the provisions of the WTO Antidumping 
Agreement (AD Agreement).  However, the la nguage used in many of the Ordinance's 
provisions is confusing and/or ambiguous and requires clarification (although some of the 
confusion may be due to poor translation).  For in stance, in its initial explanation of terms used 
throughout the ordinance, Viet Nam defines " dumping margin" as the "difference calculable 
between the normal market price of goods imported into Viet Nam and the cost of exporting  
such goods to Viet Nam" (italics added).  Fur ther, several provisions of the AD Agreement are 
not reflected in the Ordinance.   A preliminary list of concerns is presented below. 
- Viet Nam's Ordinance makes no provision fo r determining individual AD rates for each 
known exporter or producer, nor does it discu ss methodology for ‘sampling' in cases of 
large numbers of exporters or producers,  as called for in AD Article 6.10. 
- In Article 7 of the Ordinance, it should be made clear whether the council determining 
injury reports to the Minister of Trade or whether it is an independent entity. 
- Articles 8 and 9, which outline requirements for petitions, omit the requirement of AD 
Agreement Article 5.2 (ii) to include a list of known persons importing the product to be investigated. 
- Article 13 of the Ordinance does not comp letely address AD Agreement Article 6.1 
which requires that all interested parties shall be given notice of the information which 
the authorities require and ample opportuni ty to provide written evidence.  The 
Ordinance merely states that parties sh all be responsible to provide authentic 
information and data on request of the investigating agency.  No detail is provided on the amount of time that exporters or foreign producers will have to respond.  
Furthermore nowhere in the ordinance is it confirmed that parties concerned with the 
investigative process, as outlined in Article 11, will be able to present information orally, 
in addition to submitting such information in  writing, in accordance with Article 6 of the 
AD Agreement. 
- The Ordinance does not specify the amount of time that parties have to register as a 
"person concerned with the investigation" in  a proceeding.  Nor does it specify the 
consequences for not registering – if an exporter or manufacturer does not register as a 
concerned party and is not contacted by the administering authority, how will that party 
be treated once final measures are put in place (i.e. what dumping margins will be 
effective for products from that entity)?  Fur thermore, there is no indication of how new 
entrants to the market will be t reated per AD Agreement Article 9.5. 
- There is no provision in the Ordinance that  requires parties submitting confidential 
information to submit non-confidential summaries thereof, in accordance with 
Article 6.5 of the AD Agreement.  Viet Nam should be urged to establish rules for the dissemination to interested parties of ade quate non-confidential summaries of all 
information submitted to the administering authority.  WT/ACC/VNM/36 
Page 72  
 
 - Viet Nam needs a more detailed explanation of how it will make a fair comparison 
between normal value and export prices as envisioned by Article 2 of the AD Agreement. 
- Viet Nam's regulations do not provide any indication of how the administering authority 
will verify information consistent with Article 6.6 and 6.7 of the AD Agreement. 
- Viet Nam needs to specify more clearly conditions under which they will use facts 
available, consistent with Annex 2 of the Agreement. 
Other Specific Areas of Concern:
 
- Chapter I, Article 3, No. 3:  Viet Nam should confirm whether it will have a preference 
for using third country export prices or co nstructed value if there is not a viable 
domestic market upon which to base normal value. 
- Chapter I, Article 3, No. 3:  Viet Nam should confirm how the authorities will determine 
a product's country of origin, particularly  when the merchandise is shipped through 
third countries. 
- Chapter I, Article 4, No. 2:  This article suggests that price undertakings may be 
negotiated directly between the exporting co mpanies and the Vietnamese petitioners, a 
situation not condoned under Article 8 of the AD Agreement.  
- Chapter II, Article  8:  It is not clear from this article whether injury determinations 
will be announced at the same time as dumping determinations or whether the investigations will run on different timetables. 
- Chapter II, Article 15:  We urge Viet Nam to institute clearly defined procedures for 
ensuring the confidentiality of informatio n submitted by parties in the course of a 
countervailing proceeding. 
- Chapter II, Article 18, No. 2:  We urge Viet Nam to issue clear rules on when parties will 
receive the essential facts under consideration as well as clear rules regarding opportunities for parties to submit in formation and make arguments to the 
administering authority. 
- Chapter II, Article 19:  This article makes no mention of causal link between dumped 
imports and injury, a requirement to bein g able to apply antidumping measures. 
Answer
: 
In the unofficial English version of this Ordinan ce, which was provided to the WTO Secretariat prior 
to the 9th Session, some technical terms were not translated precisely.  Viet Nam would like to provide 
another unofficial English version of the Ordi nance Against Dumping of Imported Goods into 
Viet Nam  (please see document WT/ACC/VNM/36/Add.2).    
Like many other WTO Members, Viet Nam's Ordinance would not incorporate all provisions of the 
AD Agreement. Detailed regulations on specific is sues such as determination of individual anti-
dumping duty rates for each exporter or producer , procedures for conducting investigation and 
application of anti-dumping measures, comparison be tween normal value and export price, etc. will 
be stipulated in the documents guiding the implementation of the Ordinance. 
According to the Article 7 of the Ordinance,  the Anti-Dumping Council shall operate as an 
independent entity in considering the reports made by investigation authority, determine, based on 
majority vote, whether exists dumped imports into Viet Nam and  such dumping causes or threatens to cause a material injury to the domestic industry.  This Council is entitled to recommend the Minister 
of Trade to issue his decision on whether to impose anti-dumping duty. 
Articles 14 and 15 of the Ordinance clearly stipulate the rights of related parties to an anti-dumping 
case to have access to information during the investigation process, to present and provide  WT/ACC/VNM/36 
 Page 73 
 
 
information and evidence for the defence of their in terests. Detailed regulations on the procedures for 
conducting investigation and application of anti-dump ing measures etc.  will be stipulated in the 
documents guiding the implementation of the Ordinance. 
Article 10 of the Ordinance stipulates the public notice of the decision to initiate an anti-dumping 
investigation.  At the same time, this decision w ill be sent to organisations and individuals producing 
and exporting goods subject to investigation, relevant  authorities of the country or territory exporting 
the goods subject to investigation.  Exporters are therefore known of all the information and have to 
prepare actively for participation to the investigation in order to defend their interests.  In addition, 
they shall automatically become related parties according to the provisions of Article 11 of the 
Ordinance and have the same rights and obliga tions as those of other related parties.  
The Ordinance also stipulates the review as re quested by exporters or related parties and 
determinations may be issued based on the result of this review.  This issue would be stipulated in 
further details in the documents guiding the implementation of the Ordinance.  
Article 15 of the Ordinance stipulates the submission of confidential information. Paragraph 1 of this 
Article stipulates that related parties shall have  to provide the investigation authority with non-
confidential summaries of confidential information (according to paragraph 2) for dissemination to 
related parties.  
Related parties may choose any of the two methods of determination.  However, they are obliged to  
provide information to defend their view and argu ments during the consultation process as stipulated 
in Article 14.   
It would be confirmed that Article 4 of the Ordina nce does not permit exporters to negotiate directly 
with domestic producers for price undertakings co mmitments for avoiding anti-dumping duty. Price 
undertakings must be made voluntarily by expor ters and submitted to competent authority for 
consideration.  This undertaking will be announced publicly, and related parties are entitled to present 
their comments to the competent au thority (either in written form or in consultation meeting) on 
whether they support or request an adjustment to the price undertakings made by exporters, to submit 
evidence proving the possibility of existence or termination of injury when the undertaking 
implemented.  The competent authority shall cons ider and decide whether or not to accept price 
undertakings made by exporters.   
The determination of injury will be announced at th e same time with the de termination of dumping. 
Please refer to Articles 12, 17 and 18 of the Ordinance for more details.  
Article 15 stipulates that related parties have the righ t to require the competent investigation authority  
to ensure the confidentiality of the informati on submitted by them.  Keeping confidentiality is an 
obligation of the investigation authority.  
The regulation on when parties will receive the e ssential facts under consideration and opportunities 
for parties to submit information and make argument s to the competent administering authority would 
be further stipulated in the documents guiding the implementation of the Ordinance. 
During the investigation process, the competent authority is responsible for verifying the factors 
subject to investigation according to the Article 12 of the Ordinance and may conclude that a causal 
link does not exist.  This determination is very co mplicated and should be considered carefully due to 
the fact that the existence of both dumping and ma terial injury may be determined. Therefore, 
According to the Article 7 of the Ordinance, onl y the Anti-Dumping Council is entitled to the above 
determination and to recommend the Minister of Trad e to decide whether to apply an anti-dumping 
measure or not.   WT/ACC/VNM/36 
Page 74  
 
 Question 179  
The following questions refer to the Ordinan ce on measures against subsidized products 
imported into Viet Nam (no. 22-2004-pl-ubtv qh11) and are provided for written submission 
only. 
General Provisions
 
- Page 1, Article 2, Interpretation of Terms , paragraph 4 - Under this provision, "material 
injury to a domestic industry" is defined as, inter alia , "a situation leading to difficulty 
for the formation of a domestic industry."  Please explain how Viet Nam will assess this 
difficulty. 
- Chapter 1, Article 2, No. 8 - When considering whether a subsidy is specific, will the 
governing body take into consid eration the specificity of the subsidy as it relates to the 
granting authority's jurisdiction in accordance with Article 2 of the SCM Agreement? 
- Chapter 1, Article 12 - Will parties concerned with the investigative process, as outlined 
in Article 11, be able to present informatio n orally, in addition to submitting such 
information in writing, in accordance with Article 12 of the SCM Agreement? 
- Article 13 of the Ordinance does not comp letely address AD Agreement Article 6.1 
which requires that all interested parties shall be given notice of the information which the authorities require and ample opportunity to provide written evidence.  The Article merely states that parties shall be responsib le to provide authentic information and data 
on request of the investigating agency.  No detail is provided on the amount of time that exporters or foreign producers will have to respond.  
- Page 2, Article 3, Forms of Subsidy, paragraph 5 - Under this provision, "other forms of 
subsidy" outside the categories enumerated are to be determined "in a way which is fair, reasonable and not contrary to intern ational practice."  We urge Viet Nam to 
provide an illustrative list of these other form s of subsidy in an annex to the Ordinance 
or in an implementing regulation. 
Investigation Into the Imposition of Countervailing Measures
 
- Page 5, Article 11, Parties concerned with investigative process, paragraph 11 - Among 
those defined as parties to a countervailin g proceeding under this provision are "any 
other organizations or individuals with rights and interests involved in the investigative process."  How are these rights and interests determined by the investigative agency?  
We suggest that Viet Nam provide an illustrative list of these rights and interests, or of 
the organizations or individuals with such rights and interests, in an annex to the 
Ordinance or in an implementing regulation. 
- Page 6, Article 14,  Determination of subsid y, paragraph 2(b), (c), (d) - In determining 
the subsidy amount where the subsidy is a l oan, loan guarantee or government purchase 
of goods and services, how is the benchmark, or comparable market price, determined 
by the investigative agency?   
- Page 7, Article 17, Confidentiality of informat ion - We urge Viet Nam to institute clearly 
defined procedures for ensuring the confidenti ality of information submitted by parties 
in the course of a countervailing proceeding. 
Imposition of Countervailing Measures
 
- Page 8, Article 22, Temporary imposition of countervailing tax, paragraph 1 - This 
provision stipulates that a decision temporarily imposing countervailing tax may be 
issued within 60 days from the date of the decision to conduct an investigation, "based on the preliminary conclusion."  However, we note that, under Article 19, the  WT/ACC/VNM/36 
 Page 75 
 
 
preliminary conclusion may not be announced for up to 90 or 150 days from the date of 
the decision to conduct an investigation.  Can Viet Nam explain how the timelines in 
these two provisions are not inconsistent with each other? 
- Page 9, Article 25, Imposition of counterva iling tax with retrospective effect, Paragraph 
4-5 - With regard to the refund of any taxes not owed following the final conclusion of a 
countervailing proceeding, does Viet Nam co ntemplate returning those taxes with 
interest? 
- General Comment:  With regard to various provisions of the Ordinance where the 
competent governmental body is required to  publicly announce relevant information or 
decisions, or notify the parties concerned regarding relevant information or decisions, 
we urge Viet Nam to identify clear ave nues and provide clear procedures for such 
announcements and notifications in any related implementing regulations. 
Answer : 
The Ordinance Against Subsidized Imported Goods into Viet Nam was promulgated in compliance 
with the WTO's regulations. However, like in many other countries, the highest effective legislation 
on countervailing measures only stipulates genera l principles and norms in accordance with the 
WTO's regulations. Viet Nam is now drafting documents  guiding in details the implementation of this 
Ordinance.   
B. EXPORT REGULATIONS 
- Export restrictions Question 180  
Paragraph 158:  We remain concerned about the export duties imposed on ferrous and non-
ferrous scrap exports.  Export taxes on scrap metal distort the free flow of raw materials and 
put pressures on prices to increase.  We request  that Viet Nam eliminate the export duties 
imposed on ferrous and non-ferrous scra p exports by the date of 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; and 
- Viet Nam believes that imposition of export duty on ferrous and non-ferrous 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 incr ease. Viet Nam also believes that the export 
duty imposition would not incur any violation of WTO rules.  A number of WTO Members 
have raised their export duties, hence, the prices of ferrous materials and scraps. Obviously, it is not fair to require Viet Nam to elimin ate its export duties imposed on ferrous and non-
ferrous scrap exports. 
Question 181  
Paragraph 158: Does Viet Nam intend to phase out its export duties ? WT/ACC/VNM/36 
Page 76  
 
 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 182  
We note that in paragraph 166 of WT/ACC /SPEC/VNM/5 Viet Nam states that under the 
flexible control mechanism for rice, the Gov ernment would announce an "indicative" export 
volume to all enterprises, based on annual prod uction forecasts.  Viet Nam also states that 
enterprises would be free to sign rice export contracts. 
- We would appreciate further details on how the annual production forecasts on rice are 
calculated and the export volumes are determined. 
- Could Viet Nam advise on whether there are criteria governing enterprises entering into 
rice export contracts? 
Answer : 
Viet Nam is a major rice consuming country. Viet Nam only exports an surplus quantity of rice after 
balancing its food security.  Every year, the Ministry of Agriculture and Rural Development checks 
the total area of rice fields, estimates total rice  productivity based on cultivated area and productivity 
of each harvest.  According to the production cap ability and domestic demand on rice, taking into 
account the food security needs, the Government will announce an indicative export volume of rice. 
This announcement is merely an guidance, not a rest riction, to domestic enterprises for their reference 
so that they can decide their bus iness plans in a most effective manner.  Therefore, it is not necessary 
to allocate the indicative export volume of rice to each enterprise.   
Since the elimination of export quota and authori zed importers of rice, Viet Nam has not been 
applying any restriction on rice export.  Traders w ho have registered their business scopes are entitled 
to export and sign contracts for exporting rice.  No enterprises are gran ted exclusive rights and 
privileges in exporting rice.   
Question 183  
We understand that exports of rice, textiles and garments in quota-regulated markets are 
subject to ad hoc quotas (e.g., see the IMF A nnual Report on Exchange Arrangements and 
Exchange Restrictions – 2004, page 1046, based  on information current at  31 January 2004). 
We appreciate that some policy changes have occurred in the last year.  However, we would be 
grateful for details of any such restrictions that may currently be in place. 
Answer : 
All enterprises are entitled to export rice without obtaining licence or quota.  
Viet Nam encourages the exportation of textiles a nd garments.  The reason why Viet Nam allocates 
export quota to domestic enterprises exporting these pr oducts is that some countries are still imposing 
quotas on Vietnamese exports of textiles and garments .  We would also very much like to see these 
countries abolishing all quotas on Vietnamese produc ts so that our Government can remove this 
restriction accordingly.   WT/ACC/VNM/36 
 Page 77 
 
 
Question 184  
In the reply to Question 93 of WT/ACC/VNM/33 it is  stated that the rice export quota and focal 
point exporting enterprises for rice have been elim inated, the right to export rice is now open to 
all enterprises, and Viet Nam each year w ill announce indicative export volumes to all 
enterprises.   Given that the "flexible control me chanism" has not been introduced, we would be 
interested in details of the export regime for ri ce since the elimination of the quota.  Have any 
other export quotas or other expo rt restrictions been introduced since that time?  Are there now 
any enterprises that have exclusive or special righ ts and privileges that may affect the level and 
direction of exports of rice?  
Answer : 
According to the production capability and domestic  demand on rice, the Government will announce 
an indicative export volume of rice.  This announce ment is merely an indicative guidance, not a 
restriction, to domestic enterprises for their referenc e so that they can deci de their business plans at 
their discretion in a most effec tive manner.  Since the elimination of export quota and authorized 
importers of rice, Viet Nam has not been applying any restriction on rice export.  Traders who have 
registered their business scopes are entitled to expor t and sign contracts for exporting rice.  No 
enterprises are granted exclusive rights and privileges in exporting rice.   
Question 185  
We note that the reply to Question 93 of WT/ACC /VNM/33 states that at the beginning of each 
year the government will announce the indicative ex port volume in that year to all enterprises.  
How would an enterprise identify itself to the government as an intending exporter of rice so 
that an indicative export volume may be issued?  How is the indicative export volume 
determined for each enterprise? 
Answer : 
As the indicative export volume of rice is only an indication of domestic food security, this volume is 
not based on individual export capability of enterpris es, but on aggregate data  on annual productivity, 
consumption and reserved volume (mostly based on previous years' data).  The Government's 
announcement on indicative export volume of rice is merely an indicative guidance to domestic 
enterprises for their reference so th at they can decide their business pl ans at their discretion in a most 
effective manner. Traders will find their export mark ets and partners by themselves to determine their 
own export capability.   
The indicative export volume applies to the economy as a whole and not to each enterprise separately. 
The Government does not allocate indicative export vol ume of rice to each enterprise.  Traders who 
have registered their business scopes are entitled to export and sign contracts for exporting rice.  As 
we have answered very clearly in Question 93, WT/ACC/VNM/33, enterprises are entitled to sign rice 
export contracts at their own discretion. The Government would only otherwise act when food security is endangered. 
Question 186  We would be grateful for clarification of the usage of indicative export volumes by exporters of 
rice.  Can an enterprise export rice without an i ndicative export volume being issued to it?  Are 
there any obligations an enterprise must fulfil in relation to its indicative export volume?  May an enterprise export an amount that exceeds it s indicative export volume?  What would be the 
consequences (e.g., for future indicative export volumes) if an enterprise's rice exports exceeded 
its indicative export volume for a particular year? WT/ACC/VNM/36 
Page 78  
 
 Answer
: 
Every year, the Government announces an indicative volume of rice that Viet Nam may export based 
on annual productivity and consumption as an indica tive guidance to domestic enterprises for their 
reference so that they can decide their business plan s at their discretion in a most effective manner.  
The indicative export volume applies to the economy as a whole and not to each enterprise separately.  
The Government does not allocate indicative e xport volume of rice to each enterprise and no 
obligations are imposed on enterprises.  
Enterprises are entitled to sign rice export contracts at their own discretion and but they need to notify 
these contracts to the Viet Nam Food Association.  This Association is responsible for informing 
enterprises the updated data on accumulated contracted export volume. 
Question 187  We would be grateful if further details of the Viet Nam Food Association could be provided.  
We would be interested to know whether it is a private association, a government body, or a 
private body entrusted to carry out government po licies.  If it carries out government policies, 
we would be interested in details of the policies is it entrusted to carry out. 
Answer
: 
According to the Charter of the Viet Nam Foods As sociation, "the Viet Nam Foods Association is a 
social organisation of the enterprises under a ll forms of ownership operating in production, 
processing, trading foods, agricultural products and products processed from foods; this Association 
was established voluntarily by these en terprises in order to protect legitimate interests of its members, 
to take part in ensuring foods security to meet domestic demand and to import, export foods from and 
to the world's market in accordan ce with the State's regulations.  The Association also promotes the 
production development, the building of infrastructur e of foods industry in order to improve quality  
and business effectiveness of this industry." 
Thus, the Viet Nam Foods Association is a soci al – professional organisation (or non-governmental 
organisation) operating under the principles of vo luntary participation, self administration, self 
finance and self responsibility before the laws.  The Association's scope of activ ities, as stated in its 
Charter, were agreed unanimously by its member s in accordance with the Vietnamese laws.  The 
Association is not a governmental body, does not fu nction as a State administration nor are authorised 
to implement the State's policy.  The Association proposes to the Government, on behalf of its members, policies relating to foods production and tr ade. The Association set up the best policies to 
ensure interests of its members in different peri ods, including encouraging the alignment of members 
and non-members, supervising the implementation of the Association's resolution by its members.   
Question 188  
We would hope Viet Nam would be in a position  to accept the commitment in paragraph 167 of 
WT/ACC/SPEC/VNM/5, currently in square brackets , to apply any export restrictions in a 
manner fully consistent with WTO provisions. 
Answer
: 
Viet Nam is willing to commit as requested.  The te xt would reads as follows: "The representative of 
Viet Nam confirmed that, upon accession, any remaining export restrictions and management measures would be applied in a manner fully consistent with WTO provisions."   WT/ACC/VNM/36 
 Page 79 
 
 
- Export subsidies 
Question 189  We are of the view that export subsidies are the most trade distortional measure in the 
agricultural, fishery and forestry field and that  all forms of export promotion measures which 
have the same effect with export credits, export  state trade and export subsidies. Furthermore, 
Viet Nam is classified neither as "developing countries Members" nor as "Net food importing 
developing country" stipulated in Article 27 of the Agreement on Subsidies and Countervailing 
Measures.  Therefore, although the draft Report  states in paragraph 174 that "Viet Nam would 
abolish subsidies in the form of direct payments contingent on export performance within three years from the date of accession the WTO", we  would like to invite the Government of 
Viet Nam to completely abolish export subsidies upon accession. In this connection, we note that 
the representative of Viet Nam made a commi tment in the last Working Party meeting in 
December 2004 that it would abolish export subs idies upon its accession to the WTO, which we 
would like to welcome. We would like to request  that such commitment should be duly included 
in the Report. 
Answer
: 
Viet Nam is a low-income developing country at a very low level of development and would like to 
seek the recognition by Members of th e Working Party of this fact.  
Viet Nam has committed to eliminate export subsid ies on agricultural products, with the exception of 
forms of agricultural export subsidies that developing  countries are eligible to  maintain, from the date 
of accession.  It means that all existing agricu ltural export subsidies as notified in Viet Nam's 
Notification on domestic support and export subsidies in agriculture will be eliminated from the date 
of accession to the WTO.  
With respect to export subsidies that are prohibite d under the SCM Agreement, Viet Nam commits:   
- to eliminate subsidies contingent upon lo calization ratios and the use of domestic over 
imported goods upon accession to the WTO;  
- to eliminate subsidies in the form of direct payment from the State budget contingent upon 
export performance within three years from the date of accession to the WTO; and 
- to eliminate the remaining prohibited subsidies (mainly subsidies in the form of investment 
incentives) within nine years from the date of accession to the WTO.  These subsidies are 
conducive to the national economic development and contribute to create employment. Many 
WTO Members at even higher level of developmen t than Viet Nam are also maintaining these 
subsidies. 
Question 190  
Paragraph 32 of WT/ACC/SPEC/VNM/5:  We remai n interested in receiving information about 
how subsidies contingent upon export performan ce will be eliminated, e.g., will the government 
introduce legislation in the near term?  Can these measures be eliminated by administrative 
decree? 
Answer : 
As answered in the 9th Session of the Working Party, the export subsidies in the form of direct 
payment contingent upon export performance are mainly  regulated on a yearly basis.  Therefore, they 
will be eliminated when governmental competent authorities cease to issue legal document providing 
for these kinds of subsidies for the year.   WT/ACC/VNM/36 
Page 80  
 
 Question 191  
Does Viet Nam consider the granting of these subsidies to be a contractual obligation? 
Answer
: 
The current Vietnamese laws have no detailed pr ovisions on the concept of contractual obligation 
between the Government and foreign investors.  As  the concept is not clear, Viet Nam would highly 
appreciate more clarification on this question.  
Question 192  
Referring to paragraph 168 of WT/ACC/SPEC/VNM /5, what are the total amounts disbursed 
under the Export Promotion Fund for the years 2001- 2004?  Please provide a table indicating 
amounts disbursed by industry. 
Answer : 
Please find all the available data in Viet Nam's Notification on Subsidies according to the SCM 
Agreement  (WT/ACC/VNM/13/Add.2).  
Question 193  
What is the total amount disbursed on an annual basis through the Export Awards Program 
discussed in Paragraph 169?  Please provide a ta ble indicating amounts disbursed by industry. 
Answer : 
Please find all the available data in Viet Nam's Notification on Subsidies according to the SCM 
Agreement  (WT/ACC/VNM/13/Add.2).  
Question 194  
What terms and conditions apply to loans provided through the Development Assistance Funds 
Export Credit Programme mentioned in paragraph 171 of WT/ACC/SPEC/VNM/5? 
Answer : 
Please find all the available data in Viet Nam's Notification on Subsidies according to the SCM 
Agreement  (WT/ACC/VNM/13/Add.2).  
Question 195  
Page 59, paragraph 174 - With regard to the proposition that Viet Nam abolish subsidies 
contingent on export performance within three ye ars from the date of accession to the WTO, we 
restate our position that, upon accession, Viet Nam is under obligation to adhere to all the provisions of the SCM Agreement, which includes the prohibition of subsidies contingent on export performance, as set forth under Article 3.1(a). 
Answer
: 
With respect to export subsidies that are prohibite d under the SCM Agreement, Viet Nam commits:    WT/ACC/VNM/36 
 Page 81 
 
 
- to eliminate subsidies contingent upon lo calization ratios and the use of domestic over 
imported goods upon accession to the WTO;  
- to eliminate subsidies in the form of direct payment from the State budget contingent upon 
export performance within three years from the date of accession to the WTO; and 
- to eliminate the remaining prohibited subsidies (mainly subsidies in the form of investment 
incentives) within nine years from the date of  accession to the WTO. These subsidies are 
conducive to the national economic development and contribute to create employment. Many 
WTO Members at even higher level of developmen t than Viet Nam are also maintaining these 
subsidies. 
Question 196  
Paragraph 174: We applaud Viet Nam's commitment  to eliminate prohibited export subsidies.  
We would like to see all such measures eliminated upon accession.  We request that Viet Nam modify its commitment language to specify exactly which programs it will terminate by 
accession. 
Answer
: 
With respect to export subsidies that are prohibite d under the SCM Agreement, Viet Nam commits:   
- to eliminate subsidies contingent upon lo calization ratios and the use of domestic over 
imported goods upon accession to the WTO;  
- to eliminate subsidies in the form of direct payment from the State budget contingent upon 
export performance within three years fro m the date of accession to the WTO; 
- to eliminate the remaining prohibited subsidies (mainly subsidies in the form of investment 
incentives) within nine years from the date of accession to the WTO.  These subsidies are 
conducive to the national economic development and contribute to create employment. Many 
WTO Members at even higher level of developmen t than Viet Nam are also maintaining these 
subsidies. 
Question 197  
Paragraph 174: Viet Nam seems to seek a three-ye ar transitional period to abolish export 
subsidies in the form of direct payments contingent  on export performance. A priori, this is not 
acceptable, as the provisions of Article 27 of the ASCM that Viet Nam refers to do not apply to 
Viet Nam. 
Answer : 
With respect to export subsidies that are prohibite d under the SCM Agreement, Viet Nam commits:   
- to eliminate subsidies contingent upon lo calization ratios and the use of domestic over 
imported goods upon accession to the WTO;  
- to eliminate subsidies in the form of direct payment from the State budget contingent upon 
export performance within three years from the date of accession to the WTO; and 
- to eliminate the remaining prohibited subsidies (mainly subsidies in the form of investment 
incentives) within nine years from the date of  accession to the WTO. These subsidies are 
conducive to the national economic development and contribute to create employment. Many 
WTO Members at even higher level of developmen t than Viet Nam are also maintaining these 
subsidies. WT/ACC/VNM/36 
Page 82  
 
 Question 198  
We note in paragraph 175 of WT/ACC/SPEC/VNM/5 that Viet Nam has agreed to the 
elimination of the export ratio requirement and s ubsidies contingent on localization ratios and 
the use of domestic over imported goods upon accession, and we welcome this commitment.  Viet Nam, however, is seeking a three year transition period to abolish subsidies in the form of 
direct payments contingent on export perfor mance.  We would wish to see these subsidies 
eliminated upon accession. 
Answer
: 
With respect to export subsidies that are prohibite d under the SCM Agreement, Viet Nam commits:   
- to eliminate subsidies contingent upon lo calization ratios and the use of domestic over 
imported goods upon accession to the WTO;  
- to eliminate subsidies in the form of direct payment from the State budget contingent upon 
export performance within three years fro m the date of accession to the WTO; 
- to eliminate the remaining prohibited subsidies (mainly subsidies in the form of investment 
incentives) within nine years from the date of  accession to the WTO. These subsidies are 
conducive to the national economic development and contribute to create employment. Many 
WTO Members at even higher level of developmen t than Viet Nam are also maintaining these 
subsidies. 
Question 199  
Page 64, paragraph 189 - Concerning Viet Nam's request to maintain incentives applied to 
export-oriented production, based on the special  and differential treatment provisions of the 
WTO, we reiterate our view that the prohibition exemptions provided under Article 27 of the 
SCM Agreement have either expired or do not apply to Viet Nam.  We seek Viet Nam's 
commitment to eliminate these subsidies upon accession. 
Answer : 
With respect to export subsidies that are prohibite d under the SCM Agreement, Viet Nam commits:   
- to eliminate subsidies contingent upon lo calization ratios and the use of domestic over 
imported goods upon accession to the WTO;  
- to eliminate subsidies in the form of direct payment from the State budget contingent upon 
export performance within three years fro m the date of accession to the WTO; 
- to eliminate the remaining prohibited subsidies (mainly subsidies in the form of investment 
incentives) within nine years from the date of  accession to the WTO. These subsidies are 
conducive to the national economic development and contribute to create employment. Many 
WTO Members at even higher level of developmen t than Viet Nam are also maintaining these 
subsidies. 
C. INTERNAL POLICIES AFFECTING FOREIGN TRADE IN GOODS 
- Industrial policy, including subsidies  
Question 200  
In each paragraph of the present section, the dr aft Report includes incentive measures in each 
individual area and item of the Vietnamese industr ies. We would like to seek clarification from  WT/ACC/VNM/36 
 Page 83 
 
 
the Vietnamese side on these measures' consistency with the WTO Agreements.  At present, the 
relationship between these measures and the WTO Agreements are mentioned only in 
paragraphs 189 and 190, much clear and detailed description should be provided in the Report, 
for example by clarifying each item's  consistency with the WTO Agreements. 
Answer : 
Viet Nam is of the view that except for the subsid ies that Viet Nam has committed to eliminate, the 
application of the investment incentives stated in these paragraphs is not inconsistent with the WTO 
Agreement on SCM.  
Question 201  
Paragraph 178 on page 58 of WT/ACC/SPEC/VNM/5  indicates that labour-intensive domestic 
enterprises are eligible for "exemption or reducti on of land rental and land use tax."  Are these 
two separate taxes?  How does a company qualif y for exemption?  How does it qualify for 
reduction?  Please estimate the value of the subsid y.  Please identify the number companies that 
qualify for this subsidy by sector. 
Answer : 
Land use tax and land rental are two different type of collectibles on land:  land use tax  is a tax that 
the Government collects annually on the use of land which has been allocated by the Government to 
entities or individuals on a long term basis for th e purpose of agricultural production, residence, 
construction or doing business; meanwhile, land rental  is an annual collectible on the use of land 
which is allocated on the basis of termed land rent  contract.  As such, there are differences between 
the land  use tax and land rental in terms of payers , rates, land use right, and right to decide on land 
and property on the land.  
The criteria for land rental and land use tax exempt ion and reduction were stated in the Notification 
on Industrial Subsidies (WT/ACC/VNM/13/Add.2) .  According to legal documents governing 
domestic investment promotion, in order to be entitled for exemption from or reduction of land use 
tax or land rental, an investor should have a project satisfying requirements on the number of 
employees or the location or region of investment should fall under the list of prioritized areas for 
investment. 
Regarding the requirement on number of employees that  a project in any sector should meet in order 
to be entitled for exemption from or reduction of land  use tax or land rental, specific regulation is as 
follows: 
- Urban areas of grades 1 and 2:  100 employees; 
- Regions under List B or C:  20 employees; and 
- Other areas:  50 employees. 
With respect to the estimation of the incentive valu e and the number of companies that qualify for this 
subsidy by sector, Viet Nam still cannot provide these data and figures due to the difficulties in 
statistical works.  
Question 202  The same paragraph indicates that labour-int ensive domestic enterprises are eligible for 
extended corporate income tax exemption and reduction.  What is "extended corporate income tax?"  How do companies qualify for an exemptio n?  How do companies qualify for reduction?  WT/ACC/VNM/36 
Page 84  
 
 What is the value of the subsidy?  Please identify by sector the number of companies that 
benefit from this subsidy.  
Answer
: 
"Extended Corporate Tax" is an additional incentive for labour-intensive enterprises. According to the 
current Law on Corporate Income Tax, labour-intensi ve factor is one of the criteria for corporate 
income tax exemption and reduction (two year exemption and 50 per cent reduction in three 
subsequent years).  An enterprise shall be eligib le for extended corporate income tax exemption and 
reduction if it satisfies both requirements on th e number of employees and sectors, location of 
investment.  
Please refer to the Notification on Industrial S ubsidies (WT/ACC/VNM/13/Add.2) for detailed 
criteria. Regarding the requirement on number of employees that a project in any sector should meet 
in order to be entitled for corporate income  tax exemption and reduction is as follows: 
- Urban areas of grades 1 and 2:  100 employees; 
- Regions under List B or C:  20 employees; 
- Other areas:  50 employees. 
With respect to the estimation of the incentive valu e and the number of companies that qualify for this 
subsidy by sector, Viet Nam cannot provide the data and figures due to the difficulties in statistical 
works.  
Question 203  
Paragraph 178 also indicates that domestic la bour-intensive enterprises could also deduct 
expenses related to the employment of female wo rkers from taxable income.  What is the value 
of this subsidy?  Please identify by sector the number of companies that benefit from this 
subsidy. 
Answer : 
Enterprises using large number of female employees are entitled to the deduction of costs related to 
these employees in determining the taxable income; in  addition, these enterprises are also entitled for 
corporate income tax reduction on the amount of income  equivalent to the actual costs paid to female 
employees.  This is an uniform policy applicable to  all enterprises, regardless of domestic or foreign 
ownership, sector and location of the project. 
With respect to the estimation of the incentive valu e and the number of companies that qualify for this 
subsidy by sector, Viet Nam cannot provide the data and figures due to the difficulties in statistical 
works. 
Question 204  The following questions refer to paragraph 180 on page 59 ofWT/ACC/SPEC/VNM/5.  For each 
subsidy program – exemption or reduction of la nd use payment, land rental, and land use tax; 
preferential corporate income tax rates; extended corporate income tax exemption and 
reduction; exemption or reduction of corporate in come tax payable on the income attributable 
to expansion and/or enhancement investment s; exemption from supplementary corporate 
income tax; import duty exemption on equipmen t and machinery constituting the enterprise's 
fixed assets; and additional preferential treatmen t with respect to corporate income tax – please 
provide:  WT/ACC/VNM/36 
 Page 85 
 
 
- the estimated total value of the subsidy; and 
- the number of companies by sector that benefit from the subsidy. 
Answer : 
With regard to estimated total of the subsidy and the number of companies by sector that benefit from 
the subsidy, Viet Nam could not provide the data a nd figures due to limitations in statistical capacity. 
Question 205  Does Viet Nam consider the granting of these subsidies to be a contractual obligation? 
Answer
: 
The current legal system of Viet Nam does not ha ve any concrete provisions or definitions on 
contractual obligations between the Government and investors.  Therefore, Viet Nam hopes to receive 
clearer explanation of the question.  
Question 206  
Please confirm that all direct subsidies available to  state-owned enterprises are also available to 
private companies. 
Answer : 
Viet Nam confirms that there is no discrimination between state-owned enterprises and other types of 
enterprises in the implementation of all above direct subsidies. 
Question 207  
With respect to page 60-64, paragraph 176-188,  we appreciate the information provided by 
Viet Nam on its industrial development subsidy programs as enumerated in the Notification on 
Industrial Subsidies and discussed in several paragr aphs of the report.  We join with other 
Members in raising concerns about these programs to the extent these programs may be 
contingent upon export performance and, theref ore, prohibited under Article 3.1 of the SCM 
Agreement.  We will seek Viet Nam's commitment , consistent with its accession obligation to 
honour the prohibitions under Article 3.1 of the SCM Agreement, to eliminate upon accession 
any direct subsidies dependent upon export perfor mance.  We reserve the right to ask further 
questions and/or seek further commitments. 
Answer : 
With respect to export subsidies that are prohibite d under the SCM Agreement, Viet Nam commits:   
- to eliminate subsidies contingent upon lo calization ratios and the use of domestic over 
imported goods upon accession to the WTO;  
- to eliminate subsidies in the form of direct payment from the State budget contingent upon 
export performance within three years fro m the date of accession to the WTO; 
- to eliminate the remaining prohibited subsidies (mainly subsidies in the form of investment 
incentives) within nine years from the date of  accession to the WTO. These subsidies are 
conducive to the national economic development and contribute to create employment. Many 
WTO Members at even higher level of developmen t than Viet Nam are also maintaining these 
subsidies. WT/ACC/VNM/36 
Page 86  
 
 Question 208  
Paragraph 190:  Viet Nam seems to seek two tr ansitional periods in relation to industrial 
subsidies: three years to abolish subsidies in the form of direct payments contingent upon export performance and nine years for subsidies in  the form of investment incentives. A priori, 
this is not acceptable. 
Answer
: 
With respect to export subsidies that are prohibite d under the SCM Agreement, Viet Nam commits:   
- to eliminate subsidies contingent upon lo calization ratios and the use of domestic over 
imported goods upon accession to the WTO;  
- to eliminate subsidies in the form of direct payment from the State budget contingent upon 
export performance within three years fro m the date of accession to the WTO; 
- to eliminate the remaining prohibited subsidies (mainly subsidies in the form of investment 
incentives) within nine years from the date of accession to the WTO.  These subsidies are 
conducive to the national economic development and contribute to create employment. Many 
WTO Members at even higher level of developmen t than Viet Nam are also maintaining these 
subsidies. 
- Technical barriers to trade 
Question 209  Viet Nam's adapting its TBT system to meet WTO requirements by accession is an essential 
requirement. 
We seek a Vietnamese TBT system that is transparent and non-discriminatory, possesses a 
known focal point for coordinating the system, and has basic institutions in place enforcing 
legislation that meets WTO requirements. 
Mandatory technical regulations must be brough t into conformity with WTO principles by the 
date of accession. 
The system in place cannot require MRAs as the sole vehicle for conformity assessment; 
Viet Nam needs to implement transparent a nd non-discriminatory conformity assessment 
procedures that allow acceptance of test resu lts from recognized foreign laboratories. 
Answer
: 
- The focal point for coordinating Viet Nam's TBT system is the Ministry of Science and 
Technology. As an authorized body of this Ministry, the Directorate for Standards and Quality is responsible for such coordination. 
- Conformity assessment procedures that allowed the acceptance of test results from recognized 
foreign laboratories were considered and in cluded in the system of export-import quality 
inspection and system of safety certification as mentioned in paragraph 197 and 198 of the 
document WT/ACC/SPEC/VNM/5. 
Question 210  
The Ministry of Science and Technology (which includes STAMEQ–the national standards 
body) is identified as the "focal point" in th e Action Plan, while the Ministry of Trade, and  WT/ACC/VNM/36 
 Page 87 
 
 
other concerned ministries, "to coordinate."  What does this mean?  Does MOST/STAMEQ 
have a policy role, or is it a technical one?   Does STAMEQ develop regulations (mandatory 
standards)?  What is MOST/STAMEQ's role in  regulatory policy, if any? MOT's?   
Answer : 
As the focal point for TBT issue in Viet Nam, Mi nistry of Science and Technology (MOST) is also 
functioning as a focal point to carry out Viet Nam's Action Plan on the implementation of TBT 
Agreement.  Other ministries, including the Minist ry of Trade (MOT), has responsibility to cooperate 
with the MOST to develop, revise and implemen t the Action Plan in their concerned areas. 
As the government bodies, MOST and STAMEQ have the policy-making role. Under the Law on the 
Promulgation of Legal Normative Documents, however, MOST has the power to issue legal 
documents while STAMEQ does not. STAMEQ studies TBT policies and submits them to MOST or 
the Government for approval.  Apart from the policy-making role, STAMEQ has technical role (for 
example testing, certification, inspection, etc.).  Before the TBT policies are promulgated, all the 
relevant issues are consulted with parti es concerned, including line ministries.  
Question 211  
What is its relationship to the Department of Just ice which is also identified as a focal point (in 
the WP report)?  Is there one agency with central oversight responsibility? 
Answer : 
The Ministry of Justice is an ag ency with central oversight responsibility to appraise the drafts of 
legal documents submitted by the authorized bodies before these drafts are submitted to the 
Government and the National Assembly for approval.    
Question 212  How will STAMEQ fulfil the TBT responsibilities for notification and publication prior to 
implementation for comment?    The U.S. notifi cation authority reviews the Federal Register on 
a daily basis to identify relevant proposals for no tification to the WTO S ecretariat.  It appears 
that Viet Nam, in contrast, does not have a single publication to rely upon –in addition to 
STAMEQ's Bulletin, there are also publications of ministries and branches, and local 
governments.  Is this correct?  Are there plans to require publication of notices of proposals in a 
single publication? 
Answer
: 
To fulfil the TBT Agreement's obligation of notifyi ng proposals of technical regulations prior to 
implementation for comment, STAMEQ will rely on its  Bulletin and other publications of ministries 
and local authorities.  To facilitate this work, a network of TBT notification bodies and enquiry points 
is under the consideration to be set up in the con cerned ministries and local authorities.  They will 
support the central TBT notification body and enquiry point (Viet Nam TBT Office) to fulfil this function timely as required by the WTO TBT Agreement.  Publication of notices of proposed technical regulations in a single publication may be considered in the future.     
Question 213  
Is there a law, regulation, decree or other admi nistrative guidance which requires agencies (and 
local authorities) to publish notice of proposed standards, technical regulations and conformity 
assessment procedures and to give due considera tion to comments received?  If so, please WT/ACC/VNM/36 
Page 88  
 
 identify.  (In our country we have the Admi nistrative Procedures Act).  Comment: The WP 
report (paragraph 188) indicates Viet Nam is "c onsidering the issue of publication of draft 
standards and technical regulations." 
Answer
: 
Publication of notices of the proposed legal documen ts including technical regulations and conformity 
assessment procedures is stipulated in the Law on the Promulgation of Legal Normative Documents.  
Publication of notices of the proposed standards (o r the work program for these) is available on the 
website of Viet Nam Standards Centre ( www.vsc.org.vn ), STAMEQ.  Under this program, the title of 
each standard, the name of technical committee and the form of adoption are provided.  The schedule 
of development will be considered  and added to this program.   
Question 214  Is there a law, regulation, decree or other ad ministrative guidance to ensure quality and 
integrity in the development of regulations an d conformity assessment procedures generally?  
For example, in our country  we have a Presidential Executive Order on regulatory planning and review which sets out common expectations ab out when and how to regulate applicable to 
all federal agencies, including, for example, preference for performance-based regulation, 
regulatory impact analysis, etc.  Are these ty pes of issues addressed in the Law on the 
Enactment of Legal Documents?  [Could we obtain a copy of this Law, as well as the Ordinance on Goods Quality.] 
Answer
: 
The issue of ensuring the quality and integrity in the development of legal document, including 
technical regulations and conformity assessment procedures, is provided for in the Law on the 
Promulgation of Legal Normative Documents.  An English version of this Law has already been 
submitted to the Working Party. 
Question 215  
The Working Party Report indicates a new Ordi nance on Standardization will be developed 
and introduced in 2007.  What is the anticipated need for the new Ordinance? What deficiencies 
will be addressed? 
Answer : 
The proposed Ordinance on Standardization will focus on such issues as the development and 
application of standards, conformity assessment pr ocedures as well as technical regulations.  It will be 
a framework legal document on standardization to c over all related issues currently contained in the 
different legal documents such as the Ordinances on Measurement, Goods Quality, Food Safety and 
Hygiene, Plant Protection, Veterinary, Consumer Protection, etc.  
Question 216  
The Working Party Report (paragraph 187) in dicates STAMEQ posts an annual standards 
preparation program on the internet and in terested parties can request copies of draft 
standards for consideration and comment.  What  plans does STAMEQ have to publish its work 
program every six months, as foreseen in the WTO TBT Agreement's Code of Good Practice?   WT/ACC/VNM/36 
 Page 89 
 
 
In addition to the annual program, are notices pu blished when a draft of a specific standard is 
available? 
Answer : 
Publication of notices of proposed standards work program is available on the website of Viet Nam 
Standards Centre ( www.vsc.org.vn ), STAMEQ.  This program is announced at the beginning of the 
year; and revised and re-announced in the second pa rt (in the 3rd quarter, generally) of the year. 
Under this program, the title of each standard, the name of technical committee and the international 
standard(s) and/or other standard(s) to be used are provided. The schedule of standards development 
will be considered and adde d to this program.    
Question 217  
Viet Nam appears to have done a lot of work to develop a comprehensive website on standards 
and regulations, which includes the information in English, and we welcome this effort.  
Currently, however, it is not clear what docume nts are voluntary, and which are mandatory.  In 
Viet Nam, are all STAMEQ documents (standard s) voluntary unless specifically referenced in a 
regulation? 
Answer : 
In fact, a standard (the whole or some parts) will become mandatory if it is specified in a regulation 
issued by the authorized bodies. 
Question 218  
The website foresees the availability of the fo llowing documents under the general category 
"laws and regulations": circular, decision, direct ive, decree, ordinance, regulation, official 
document, law, order, rule, resolution, guide and notice.  It would be helpful to have a clear 
understanding of the differences between these docume nts, their status (i.e., are they all legally 
binding?), and whether any particular category is more likely to fall within the WTO TBT definitions for standard, technical regulatio n and conformity assessment procedure (e.g., 
Decisions?).   [Is there a general ex planation elsewhere in the WP report?] 
Comment:  The website indicates it now has 746 docu ments, clearly more work needs to be done 
for this to be a comprehensive data base –rep ortedly STAMEQ has 5,600 national standards, 
231 of which are mandatory, and about 8 other ministries appear to have authority to establish technical regulations. 
Answer
: 
As defined in the Agreement on TBT, "technical regul ations" is a part of the legal document (laws and 
regulations) system of the country.  According to  the Law on the Promulgation of Legal Normative 
Documents, the different types of legal documents ar e issued by the different authorized bodies.  And 
as part of laws and regulations system, technical regulations including the procedure for assessment of 
conformity to technical regulations will be issued  by the authorized bodies as defined in this Law. 
Question 219  
The Action Plan indicates Viet Nam regularly re views existing regulations to ensure compliance 
with WTO obligations.  Please explain how this is done and whether any regulations have been amended and/or rescinded as a result. WT/ACC/VNM/36 
Page 90  
 
 Answer
: 
In principle, the review of regulations is carried  out under an annual plan.  Each government agency 
has its own annual plan to do this.  Besides, for an y arising specific or urgent needs, the Government 
develops and implements a spec ific legal document reviewing program involving all relevant 
ministries and local authorities.  As a result, th e regulations that do not meet the socio-economic 
requirements, including those to fulfil the WTO oblig ations, will be amended or  rescinded.  Technical 
regulations are also reviewed in such manner.   
Question 220  
In response to questions raised, Viet Nam has in dicated there is a low level of harmonization of 
Viet Nam standards with intern ational standards in certain sectors (e.g., garments).  Are there 
plans to harmonize in those sectors? 
Answer : 
A low level of harmonization with international sta ndards in certain sectors (e.g., garments, etc.) is 
explained by some reasons.  For example, for the garments sector, re asons may be unpredicted 
consumers' needs, changeable fashion market.  Th erefore, harmonization of garments standards is 
focusing on materials and auxiliary parts of garmen ts.  In this context, Viet Nam harmonizes the 
materials and auxiliary parts of garments standards supporting garments industry.   
Question 221  
We welcome the commitment by Viet Nam to a pply the Agreement on Technical Barriers to 
Trade fully from the date of accession without any transition periods. 
We welcome the moves to simplify conformity as sessment procedures, notably the increased use 
of type-testing and acceptance of supplier's declaration of conformity.  We look forward to the 
provision by Viet Nam of the revised list of  goods subject to mandatory quality inspection 
(referred to in paragraph 198 of WT/ACC/SPEC/VNM/5).  
- We would be grateful if Viet Nam could pr ovide a list of products subject to mandatory 
safety certification (paragraph 197). 
Answer : 
- The list of goods subject to mandatory quality inspection (referred to in paragraph 198 of the 
document WT/ACC/SPEC/VNM/5) is still under revi sion and will be provided as soon as it is 
promulgated. 
- The list of products subject to mandatory saf ety certification (paragraph 197) was postponed 
in the year of 2001 for revision.  It w ill be provided as soon as it is promulgated. 
- Sanitary and phytosanitary measures Question 222  We greatly appreciate receiving Viet Nam's list of 64 SPS measures and 897 national standards.  
This is a major step forward in transparency.  WT/ACC/VNM/36 
 Page 91 
 
 
As both sides will need a considerable amount of  time to translate and review these standards, 
we hope that we can both complete this rev iew and resolution of SPS concerns that may be 
contained in these regulations by the end of calendar year 2005. 
We also welcome Viet Nam's clarification of its intention to harmonize its level of protection 
with international standards. 
We are concerned, however, of the lengthy time period that Viet Nam is requesting with respect 
to harmonization, equivalence, and control vis- a-vis Codex, IPPC, and OIE in particular and 
the SPS Agreement in general.  We  feel that with the translation of the measures and standards 
that Viet Nam has submitted, this process could be greatly expedited. 
We also congratulate Viet Nam on establis hing web sites for tracking SPS regulatory 
developments.   
We are concerned, however, that Viet Nam's Official Gazette, will publish only final rules 
rather than proposed regulations.  In par agraph 213 of WT/ACC/SPEC/VNM/5, we find that 
Viet Nam's "Law on the Promulgation of Legal Documents" sets a minimum of only 15 days before entry into force upon publication.  What provision does Viet Nam to make to legally 
ensure that draft and interim regulations are also  published in its Official Gazette for comment 
and review prior to adoption and enforcement?   How will Viet Nam harmonize its current 
15 day limitation with the normative 60-day comment periods that WTO Members grant to their trade partners? 
Answer
: 
Viet Nam needs technical assistance from WTO members to translate and review these standards.  
The measures and standards of Veterinary and Plant protection services will be found in DAH's 
Website ( www.mard.gov.vn/dah ) and PPD's Website ( www.ppd.gov.vn ). 
Viet Nam shall define the time for comments and re view of drafts and inte rim regulations in the 
Government Decision which announce the establis hment of the Office for SPS Notification and 
Enquiry Point. 
According to Article 3 of the Law on the Promul gation of Legal Normative Documents (revised in 
2002), in the process of preparation of new legal normative documents, the drafting body is required 
obtain opinions from all relevant bodies, organizat ions and individuals, and in particular, from 
subjects directly affected by the legal instrument.  This process is to be conducted in a suitable form 
and to a reasonable extent. 
Article 75 of this Law also provides that legal normative documents of the Government, the Prime 
Minister, Ministers, Heads of ministerial equivale nt bodies, the Supreme Court, the People's Supreme 
Procuracy and joint legal documents will be effec tive after 15 days from the date on which they are 
published in the official Gazette unless a later effectiv e date is stipulated in the legal instrument.  In 
the case of a legal instrument of the Government  or of the Prime Minister which provides for 
implementing measures in an emergency situation, the legal instrument may provide for an earlier 
effective date. 
Question 223  
We recognize Viet Nam's request for technical assistance.  We are already in discussion with 
your SPS National Notification Authority and Enquiry Point concerning training needs.   WT/ACC/VNM/36 
Page 92  
 
 We feel, that again with the translation and review of the nearly 1,000 SPS relevant measures, 
we can more quickly identify Viet Nam's specific technical assistance needs with respect to risk 
analysis, sampling, inspection, labelling, risk  analysis, information systems and control 
procedures.  It is in this regard we hope that  to expedite Viet Nam's accession and compliance 
with SPS measures to early 2006 in lieu of the requested 2008 commitment. 
Answer
: 
Viet Nam has committed to fully implement th e SPS Agreement upon accession.  Still, it needs the 
technical assistance from WTO Members to implement its obligations. 
Question 224  
Paragraph 205 - You have indicated that Viet  Nam and other ASEAN members are developing 
a harmonization framework for phytosanitary pro cedures comprising ten agricultural products 
at the outset and applicable to ASEAN members only.  
Answer : 
The harmonization process in ASEAN framework should not be contrary to na tional and international 
standards. 
Question 225  Could you explicitly clarify the relationship between Viet Nam's national phytosanitary 
standards and the ASEAN harmonization fram ework on the one hand, and international 
phytosanitary standards and the harmonization fr amework on the other?  You state that this 
framework will be notified to the WTO. 
Answer
: 
The harmonization process in ASEAN framework should be in line with national and international 
standards.  We understand that ASEAN Members w ho are WTO Members are fully committed to the 
notification obligation. 
Question 226  
Who will notify the framework exactly, and how? 
Answer : 
We understand that ASEAN Members who are WTO Me mbers are fully committed to the notification 
obligation. 
Question 227  
In paragraph 209, the draft Report explains that  poultry meat importers are required to obtain 
a sanitary certificate issued by the authority of  the exporting countries, certifying that (i) the 
meat originated from healthy poultry slaughtered in disease free zones, (ii) the poultry has been 
examined anti-mortem and post-mortem and found f ree from every infectious disease, etc.  We 
would like to clarify whether these anti-mor tem and post-mortem examination are also 
applicable in Viet Nam.  WT/ACC/VNM/36 
 Page 93 
 
 
Answer : 
It is confirmed that the ante-mortem and post-mortem  examinations are also applicable in Viet Nam. 
Question 228  
In paragraph 211, the draft Report explains that Viet Nam would gradually improve the 
techniques and procedures for conducting risk assessment in cooperation with international 
organizations and WTO Members and that Viet Nam would be expected to comply with 
Articles 22.2, 5.1, 5.2 and 5.3 of the SPS Agreement upon its accession to the WTO.  In this connection, Action Plan (WT/ACC/VNM/11/Rev.5) also provides that although Viet Nam has difficulties in this field under the Vietnamese exis ting system, the timeframe for completion of 
the SPS Agreement's conformity will be upon a ccession.  We would like to seek the detailed 
information concerning the Vietnamese work plan s on how it will overcome these difficulties 
and accomplish conformity with Arti cles 5.1 to 5.3 of the SPS Agreement. 
Answer
: 
Viet Nam has the following wo rk plan on risk assessment: 
- Training two staff in risk assessment (2005); 
- Equipping computers  to Animal Quarantin e and Inspection Divisions, six Regional 
Veterinary centres and five Quarantine Stations at major border gates, set up or purchase a risk assessment software; 
- Setting up a data base for risk assessment; and 
- Establishing a risk assessment unit in Head Quarter of Department of Animal Health. 
 In recent years, Viet Nam has set up a national pest analysis group comprising of 14 staff from the 
Plant Protection Department (8 of them have been  trained on pest risk assessment (PRA) in Australia, 
Malaysia, etc.).  It has established a Vietnamese standa rd in pest risk analysis guideline (in line with 
the international standard No. 2), and collected gui deline documents and pest risk analysis reports 
from New Zealand, Australia, US, EU and websites as  reference and information input for pest risk 
assessment in Viet Nam.  It is also conducting a prog ram to set up a database of plant health control 
for pest risk analysis purpose, and in particul ar, lists of pests on each plant in accordance with 
international standards.  This program has been  financed by NZAID with a computer system 
(National Phytosanitary  Database Management). 
In addition, Viet Nam has started to conduct pest  risk assessment on a number of imported plants, 
establish a network of specialists in plant protectio n to support PAR and collaborate with institutes, 
universities to conduct surveys and collect informati on about plant pests in the field and in stores. 
However, the outcomes of these activities are still limited. 
We have found the following difficulties in PRA area: 
- Lack of experts in PRA 
- Inadequate database for PAR  
- Difficulty in collecting information from exporting countries. 
- Different approaches to PRA in various countries. 
- Lack of legal basis on PRA field 
In order to overcome these difficu lties in accordance with Article 5.1 to 5.3 of the SPS Agreement, we 
need more technical assistance from international or ganizations and develope d countries to carry out 
the following activities: WT/ACC/VNM/36 
Page 94  
 
 - Continuing to seek internal and external res ources to strengthen the capacity in pests risk 
analysis, particularly staff training. 
- Promoting staff training in this field in other countries. 
- Organizing domestic training courses on PRA with  the assistance from international experts. 
- Continuing to survey and update the plant epidemic  lists to complete the plant health database 
for PRA and make it consistent with international standards. 
- Continuing to establish PRA standards with  regard to quarantine pests, etc. 
- Supplementing some vital articles concerning to PRA field to the existing legal system. 
- Completing the system of phytosanitary certificate management. 
Question 229  
In paragraph 214, the draft Report states that  "His Government would therefore require a 
transitional period [until 1 July 2008] to complete work to comply with the provisions of the SPS Agreement in respect of harmonization (Article 3.1, 3.3 and 3.4), equivalence (Article 4) and control, inspection and approval procedures (Art icle 8 and Annex C)." In addition to these, 
with regard to standstill, Action Plan (WT/ACC/VNM/11/Rev.5) provides that Ordinance on 
Standization will be submitted to the standing Committee of the National Assembly in the first 
quarter of 2007.  On the other hand, the represent ative of Viet Nam confirmed in the Working 
Party in December 2004 that Viet Nam woul d comply with the SPS Agreement upon its 
accession to the WTO.  We would like to seek th e detailed information on the concrete schedules 
for accomplishing measures to implement all the obligations of the SPS Agreement by the time 
of its accession to the WTO. 
Answer
: 
Viet Nam has committed to comply with th e SPS Agreement upon its accession to the WTO. 
Regarding the concrete schedules to implement a ll the obligations of the SPS Agreement by the time 
of its accession to the WTO, please refer to the Progress Report on implementing the SPS Agreement 
at Plurilateral session on SPS in October 2004, which has been circulated to the Working Party's 
Members. 
Question 230  
Paragraph 214 - You have indicated that your go vernment requires a transitional period until 
1 July 2008, to come into full co mpliance with the SPS Agreement.   
Answer : 
Viet Nam has committed to comp ly with the SPS Agreement upon its accession to the WTO.  The 
needs for technical assistance have been develope d for each area (please refer to the Progress Report 
on implementing the SPS Agreement at Plurilatera l session on SPS in October 2004, which has been 
circulated to the Working Party's Members).  
Question 231  
Assume that a transition period is not possible.   Please identify the exact types of technical 
assistance your government would need in orde r to implement its SPS obligations fully upon 
accession into the WTO.  In other words, can you designate technical benchmarks accompanied 
by a timeline to come into full comp liance with the SPS agreement upon accession?  WT/ACC/VNM/36 
 Page 95 
 
 
Answer : 
Viet Nam has committed to comp ly with the SPS Agreement upon its accession to the WTO.  The 
needs for technical assistance have been develope d for each area (please refer to the Progress Report 
on implementing the SPS Agreement at Plurilatera l session on SPS in October 2004, which has been 
circulated to the Working Party's Members).  
Question 232  We note in paragraph 214 of WT/ACC/SPEC/VNM/5 that Viet Nam states it would need a 
transition period until 1 July 2008 to fully implement provisions of the SPS Agreement in 
respect of harmonisation, equivalence, and co ntrol, inspection and approval procedures. 
We hope that Viet Nam can confirm the indicati on it has provided to fully apply the Agreement 
on Sanitary and Phytosanitary Me asures from the date of accession. 
Answer
: 
Viet Nam confirms to comply with the SPS Agre ement from the date of accession to the WTO. 
Question 233  
We thank Viet Nam for the information provided concerning the use of international standards 
and note the references to an ASEAN harmonis ation framework for phytosanitary procedures. 
 
We would be grateful for further informatio n on the ASEAN harmonisation framework for 
phytosanitary procedures and whether it seeks to  develop regional standards as an alternative 
to international standards. 
Answer : 
Viet Nam is participating in harmonization fra mework of phytosanitary procedures among ASEAN 
countries.  In fact, the progress in developing regional standard is limited and not effective, therefore 
this standard could not be an alte rnative to international standards 
Question 234  
We would appreciate a status report on Viet Na m's efforts to join the International Plant 
Protection Convention (IPPC). 
Answer : 
Viet Nam has completed all domestic procedures and addressed the official letter to Director General 
of FAO to join the IPPC. 
- Trade-related investment measures 
Question 235  
In paragraph 215, the draft Report states that "Furthermore, Viet Nam was asked to abolish 
the regulations restricting the maximum level of  motorcycle production for foreign-invested 
enterprises." We would like to seek information on  the efforts by the Government of Viet Nam 
to meet this request.  If the Vietnamese side st ands ready to make a commitment that it will not WT/ACC/VNM/36 
Page 96  
 
 impose any restriction on motorcycle production in the future, it should be duly included in the 
Report. 
Answer
: 
The restriction on the maximum level of motorcyc le production was applied in parallel with the 
quantitative restriction on imported motorcycles.  This  restriction, however, was no longer maintained 
when the quantitative restriction on imported motorcycl es was removed.  However, Viet Nam is of the 
view that this restriction is not a TRIMs measure, and therefore, not covered by the WTO Agreements. 
Question 236  
We would like to see Viet Nam accept the comm itment in square brackets in paragraph 223 of 
WT/ACC/SPEC/VNM/5, that until the date of accession, Viet Nam would not introduce any 
new measures inconsistent with the provisions of the TRIMs Agreement or re-introduce phased-
out TRIMs, and that it would fully comp ly with the TRIMs Agreement upon accession. 
Answer
: 
Viet Nam would accept the commitment in square  brackets in paragraph 233 of the document 
WT/ACC/SPEC/VNM/5 provided that the commitment  would only take effect from the date of 
accession (the language in the paragraph is ambiguous as it refers also to the time prior to accession). 
- State-trading enterprises 
Question 237  We would like to clarify the difference between State Trading Entities (STEs) and Non-STEs in 
Viet Nam and also like to know the definition of STEs. 
Answer
: 
Viet Nam has no definition of State trading enterp rises on its own.  Such definition is understood 
exactly as specified in Article XVII of GATT and the Understanding on the Interpretation of this 
Article. 
Question 238  
In paragraph 228, the draft Report notes that a Member enquires the relationship between the 
right to trade and STEs.  The response by the Vi etnamese side to this enquiry in the same 
paragraph does not seem to clarify the point we ll.  Therefore, we would like to seek a clear 
response from the Vietnamese side on the relatio nship between the restriction imposed on the 
right to trade in Viet Nam and operation or activities of STEs in the country. 
Answer : 
These are two different concepts.  Trading right me ans the right to import and export. Regulations on 
trading rights in Viet Nam focus on the management over the importation activities of domestic and foreign invested enterprises.  Meanwhile, the con cept of State trading enterprises is clearly defined 
under GATT, and accordingly, differs fr om the concept of trading right.   WT/ACC/VNM/36 
 Page 97 
 
 
Question 239  
In the draft report, Viet Nam provided a list of it s state trading enterprises for 2002 in Table 13.  
The enterprises in the table deal with only five  products, as compared to 13 products for which 
state trading enterprises were notified in WT/ACC/VNM/14.  Products, such as rice and fertilizer, as well as state trading enterprises en gaged in selling them, are not listed in Table 13.  
Viet Nam has previously stated that this is b ecause state trading activities are no longer present 
in those products.  For enterprises trading in ea ch of the eight products notified for state 
trading in WT/ACC/VNM/14, but not in Table 13 of  the draft report, please describe in detail, 
the process and reforms undertaken to eliminate stat e trading activities, such as equitization of 
state-owned enterprises, revocation of special trad ing privileges, etc.  Please provide examples.  
Answer
: 
The updated list of State trading enterprises was provided in the document WT/ACC/VNM/14/Add.1. 
Compared to its previous list, there are 8 areas that  have been moved out of the list.  For these areas, 
the Government has removed all privileges that ha d been granted to them such as eliminating the 
designation for the exportation of rice and importation of fertilizer. 
Question 240  
Please provide data regarding the state owned co mpanies' current market share in trading of 
each of the eight products removed from the state trading list, including export share.  For 
equitized companies trading in these eight products, please describe what level of involvement and control, if any, does the Government of Viet  Nam or any of its agencies and officials, retain 
in their commercial decisions, management, and voting power. 
Answer
: 
At present, Viet Nam does not have updated inform ation on these enterprises.  Please refer to the 
information already provided in the document WT/ACC/VNM/14.  The Government of Viet Nam 
does not have any intervention in the trading activ ities of enterprises in these eight product areas.  
Question 241  
Please describe what legal recourse a private or equitized firm has to appeal against a state 
trading enterprise operating on a non-commercial basis or engaged in anti-competitive 
behaviour.  Provide examples of such actions, if any. 
Answer : 
- According to Article 15(2) of the newly prom ulgated Competition Law, enterprises (including 
both state-owned and private enterprises) opera ting in the public sector are under control of 
the State by ways of placing orders or bidding under the prices or fees specified by the State. Therefore, these enterprises would not have  a chance to perform any anti-competitive 
behaviours or violate the rights and interests of other enterprises, because there will be no 
other enterprises that can supply goods and services in the public sector without close 
supervision by the State. 
- If there is anti-competitive behaviours engaged by these State trading enterprises, such 
behaviours can only occur in the fields outsi de the public goods or services. All these 
behaviours will be subject to other provisions  of the Competition Law (Article 15(3)). In 
other words, private and/or equitized firms can seek the redress in according to the process 
analyzed in the answer to Question 56 above. WT/ACC/VNM/36 
Page 98  
 
 - Apart from the process under the Competition Law,  private and/or equitized enterprises can 
seek redress according to Chapter V of the Civi l Code 1996 (Article 609 to 633). They can 
initiate a civil law suit against these State owne d enterprises for compensation of non-contract 
damages. Until now, there has been no such actions in Viet Nam. 
Question 242  
Please describe the current process and regulations  governing the importation, and distribution, 
and sale of fertilizer in Viet Nam, including any involvement by state-owned or state-controlled terms. 
Answer
: 
Pursuant to the Decision No.46/2001/QD-TTg date d 4 April 2001, Viet Nam abolished the quota 
allocation mechanism for fertilizer importation and enterprises who have registered to trade in 
fertilizer are permitted to import fertilizer and responsible for their own business.  
According to current regulations, trading fertilizer is  not subject to conditional business.  Therefore,  
this item is freely circulated in the market.  Fer tilizer trading companies only have to register their 
business and then organize their own production, importation and trade accordingly.  
At present, the only one state-owned fertilizer trader is the Agricultural Materials Corporation (under 
Ministry of Agriculture and Rural Development). There are about 4 to 5 other companies under the 
provinces.  Beside that, all the fertilizer importation and distribution activities are conducted by private enterprises. 
Question 243  
It appears from information provided by Viet  Nam in document WT/ACC/VNM/14 that several 
state trading enterprises in Viet Nam, such as those involved in importation of fertilizer, 
printing equipment, printed material, and cine matographic works, are not operating on the 
basis of commercial consideration s.  Please discuss steps that Viet  Nam will take to deal with 
this situation 
Answer
: 
These enterprises operate on the basis of commercial considerations. 
Question 244  
Some of Viet Nam's enterprises, such as Petrovietna m, appear to be involved in trade as well as 
industry regulation, thus playing the role of both competitor and regulator vis-à-vis other enterprises.  We look forward to discussing measures necessary to en sure non-discriminatory 
treatment.  
Answer
: 
The Ministry of Industry is the State-authorized body,  or the regulator, of the industry.  PetroVietnam 
does not have functions of either formula ting policies or regulating other enterprises.  WT/ACC/VNM/36 
 Page 99 
 
 
Question 245  
Please provide assurances that no state tradin g enterprises are exercising regulatory functions 
in the industry in which they operate. 
Answer : 
Viet Nam would like to confirm that there is no St ate-trading enterprise in Viet Nam that has the 
regulatory functions in the industry in which it operates.  The regulatory functions are under the 
authority of the Government agencies. 
Question 246  
What rules govern procurement by state trading enterprises?   
Answer : 
Viet Nam has no rules governing the procurement ac tivities of State trading enterprises.  All their 
decisions to purchase or import are based on their actual demand and are made on commercial considerations and via a bidding process. 
Question 247  
We thank Viet Nam for the information provide d on state trading entities in WT/ACC/VNM/33. 
 
- We would appreciate clarification from Viet Nam on whether VINACAFE and 
VINATEA, which we note are still owned by the State, have their commercial operations underwritten by the State. 
- Could Viet Nam provide further advice on the role of companies such as VINACAFE, 
VINATEA, VINAMILK and the Viet Nam Salt Corporation in fulfilling the policies of 
the State, such as through import  purchases and/or export sales. 
Answer
: 
VINAMILK has been equitized. VINACAFE, VINA TEA and the Salt General Corporation of 
Viet Nam are State-owned ente rprises.  However, equitization is under way among member 
enterprises of each of these corporations. Additiona lly, their production and trade activities are on 
equal terms with others and are not subject to an y particular intervention from the Government.  As 
Viet Nam has notified earlier, these enterprises are not State-trading enterprises.  Neither do they have any commercial operations underwritten by the State. 
Question 248  
Paragraph 229:  The alternative commitment su ggested in the second set of brackets is not 
adequate.  We believe the first formulation is a better first draft as it provides a commitment to 
apply the WTO to all state-owned as well as st ate trading enterprises.  However, given our 
recommendation that the sections on state-owned enterprises and state trading enterprises be combined, we reserve the right to suggest further changes to the commitment language for such 
a combined section. 
Answer
: 
Viet Nam wishes to receive the suggested  commitment language for such section. WT/ACC/VNM/36 
Page 100  
 
 Question 249  
We note that commitment language on state trading entities in paragraph 229 of 
WT/ACC/SPEC/VNM/5 is still in square brackets.  Ho wever, we also note that in the answer to 
Question 132 of WT/ACC/VNM/33 Viet Nam "commits that the operation of state trading enterprises in Viet Nam will comply with WTO's provisions, including Article XVII of the 
GATT and the Understanding on the interpretation of this Article.  Viet Nam also commits to 
the obligation on notifying state trading enterp rises in accordance with the regulations of the 
WTO". 
We would therefore request that Viet Nam agree to the removal of the square brackets around 
the commitment language in paragraph 229. 
Answer
: 
Viet Nam commits that the operation of State trad ing enterprises in Viet Nam shall comply with 
WTO's provisions, including Article XVII of the GATT and the Understandi ng on the interpretation 
of this Article.  Viet Nam also commits to the obligation on notifying State trading enterprises in accordance with the regulations of the WTO.   
- Free zones, special economic areas Question 250  What proportion of firms in the export pro cessing zones and industrial zones are privately 
owned, if any, as opposed to firms owned and operated by the state? 
Answer
: 
By the end of 2004, export processing zones and industrial zones have attracted a total of 3,612 
investment projects (of which, 1,773 are foreign investment and 1,839 are domestic investment). 
Ninety-two per cent of these projects are from privat e investment source (both foreign and domestic 
investors), only 8 per cent of these projects ar e invested by State-owned enterprises.   
Question 251  
Does the investment licence granting a company the right to operate in a free zone or special 
economic area specifically identify  the subsidies to which the company will be entitled and the 
duration of those subsidies?  Do the investme nt licenses specifically make qualification for 
subsidies dependent on export performance and/ or use of domestic inputs?  Does Viet Nam 
consider its investment licence and the subsidi es provided to be a contractual obligation? 
Answer : 
Investment licenses specify the type of invest ment incentives as well as the duration for such 
incentives to be granted to projects in export proc essing zones, industrial zones and other special 
economic areas, regardless of the export performance  or the use of domestic inputs.  (According to 
international practices, projects operating in export processing zones are required to export 
100 per cent of their production output). 
Viet Nam currently has no specific legal provision on the concept of contractual obligation arising 
between the Government and the investors.  Viet  Nam expects to receive clarification on this 
question.  WT/ACC/VNM/36 
 Page 101 
 
 
Question 252  
Since Viet Nam began its WTO accession, has Vi et Nam issued investment licenses granting 
companies subsidies prohibited by the Agree ment on Subsidies and Countervailing Measures? 
Answer : 
Even prior to Viet Nam's WTO accession appli cation, Viet Nam has applied some prohibited 
subsidies in the form of investment ince ntives to domestic and foreign investors. 
Question 253  
We note the duelling commitments in this section a nd the need to work to reach consensus.  We 
reserve our rights to provide additional and/or alternate material. 
Answer : 
Viet Nam will consider this issue in line with  our proposal on the transitional period for the 
elimination of prohibited subsidies under the Agre ement on Subsidies and Countervailing Measures.  
Question 254  
Paragraph 235: We understand that Viet Nam is considering requesting a nine-year transitional 
period to phase out WTO-inconsistent measures in export processing zones. A priori, this is not 
acceptable. 
Answer : 
With respect to export subsidies that are prohibite d under the SCM Agreement, Viet Nam commits:   
- to eliminate subsidies contingent upon lo calization ratios and the use of domestic over 
imported goods upon accession to the WTO;  
- to eliminate subsidies in the form of direct payment from the State budget contingent upon 
export performance within three years fro m the date of accession to the WTO; 
- to eliminate the remaining prohibited subsidies (mainly subsidies in the form of investment 
incentives) within nine years from the date of accession to the WTO.  These subsidies are 
conducive to the national economic development and contribute to create employment. Many 
WTO Members at even higher level of developmen t than Viet Nam are also maintaining these 
subsidies. 
Question 255  
We hope that Viet Nam would be in a position to accept proposed commitment language, 
currently in square brackets in paragraph 235 of  WT/ACC/SPEC/VNM/5, that from the date of 
accession Viet Nam would ensure enforcement of  its WTO obligations in export processing 
zones and industrial zones, and that any require ments for establishment in such zones being 
contingent on the use of local goods or export performance had been eliminated. 
We would not find acceptable the square bracketed text that provided that subsidies in the form 
of incentives for domestic and foreign investment s would only be eliminated within nine years 
from the date of accession. WT/ACC/VNM/36 
Page 102  
 
 Answer
: 
With respect to export subsidies that are prohibite d under the SCM Agreement, Viet Nam commits:   
- to eliminate subsidies contingent upon lo calization ratios and the use of domestic over 
imported goods upon accession to the WTO;  
- to eliminate subsidies in the form of direct payment from the State budget contingent upon 
export performance within three years fro m the date of accession to the WTO; 
- to eliminate the remaining prohibited subsidies (mainly subsidies in the form of investment 
incentives) within nine years from the date of accession to the WTO.  These subsidies are 
conducive to the national economic development and contribute to create employment. Many 
WTO Members at even higher level of developmen t than Viet Nam are also maintaining these 
subsidies. 
Requirement for establishment in such zones is not contingent on export ratio requirements and use of 
domestic inputs (under the intern ational practices, enterprises esta blished in export processing zones 
automatically export 100 per cent of their output). 
- Government procurement 
Question 256  
We renew our request that Viet Nam cons ider joining the Government Procurement 
Agreement. 
Answer : 
Viet Nam will consider joining the Agreement on Government Procurement after WTO accession. 
Viet Nam expects the assistance fro m the Members to improve Viet Nam's understanding of the GPA 
Agreement. 
Question 257  
Paragraph 242:  We support the position of other Members ex pressed in this paragraph, 
namely that accession to the GPA would be d esirable and a commitment could be made before 
accession to the WTO.  
Answer : 
Viet Nam will consider joining the Agreement on Government Procurement after WTO accession. 
Viet Nam expects the assistance fro m the Members to improve Viet Nam's understanding of the GPA 
Agreement. 
- Agricultural policies 
(a) Imports (description of the typ es of border protection maintained) 
Question 258  
In paragraph 253, the draft Report states that  "The simple average tariff on imports of 
agricultural products was 17.7 per cent (document WT/ACC/SPEC/VNM/3), and had been increased to 27.1 per cent in 2004."  We woul d like to know the reason for such increase.  WT/ACC/VNM/36 
 Page 103 
 
 
Answer : 
The simple average tariff on impor ts of agricultural products was 17.7 per cent in 1996 and had been 
increased to 27.1 per cent (in 2004) due to:  
- Technical reason:  In 2003, Viet Nam changed its tariff schedule to be in conformity with the 
ASEAN Harmonized Tariff Nomenclature (AHTN).  As a result, the total number of tariff 
lines increased from 6,512 to more than 10,000, out of which number of tariff lines of 
agricultural products increased from 572 to 1,219 lin es.  The increase in the number of tariff 
lines was mainly due to separation of a single original HS product into more than one new AHTN products at 8-digit level. The average tariff also increased because there was an 
addition of high-tariff products subject to sep aration into more AHTN products at 8-digit 
level.   
- Policy reason:  Since 2000, Viet Nam has carried out important program to convert non-tariff 
barriers in to tariff, and incorporating ODC s into tariff and abolishing ODCs under the 
Miyazawa Program.  Therefore, some tariff lines were changed with higher tariff, leading to a higher average tariff rate. 
Question 259  We would like to seek information on require ments for imports of rice to Viet Nam.  
Answer
: 
Viet Nam commits to eliminate import quantitative restrictions upon the date of accession to WTO. 
Therefore, there would be no import quantitative rest rictions on rice.  Requirements for imports of 
rice would be in conformity with Viet Nam commi tments on Trading Rights (Please refer to Annex 2 
of this document). 
(b)  Exports 
Question 260  In paragraph 255, the draft Report states that the Export Promotion Fund have superseded the 
Price Stabilization Fund in October 1999.  We would like to seek the detailed information on the 
Price Stabilization Fund such as its mechanism a nd operation as well as the difference from the 
Export Promotion Fund. 
Answer
: 
Details on Price Stabilization Fund:  was established by virtue of the Decision No. 151/TTg in 1993. 
The Fund aimed to stabilize prices for smooth inter action of supply and demand relationship, and 
therefore stabilizing the State budget. 
Resources of the Fund had been mobilized from: - For imports, a part to the difference between external price and domestic price when the 
external price is higher than the domestic price. 
- For exports, a part to the difference between external price and domestic price when the 
external price is higher than the domestic buying price. 
- For product manufactured and consumed domestical ly, a part of extra profit of the producers 
which were operating with adva ntageous conditions in comparison with other producers of 
the same product. WT/ACC/VNM/36 
Page 104  
 
 Price Stabilization Fund had been utilized to: 
- Support important product lines reserves in order to  ensure sufficient and stable supply of and 
demand for the product for a smooth operation of distribution system. 
- Enhance financial capacity of businesses to  acquire products of which production and 
consumption were mainly seasonal . 
- Support businesses with additional financial assistan ce in cases of abrupt price fluctuation. 
- Extend spending on behalf of the State budget whenever directed by an Order of the Prime 
Minister. 
Differences between the Price Stabilizat ion Fund and Export Promotion Fund: 
- In terms of purposes for establishment: the Price Stabilization Fund was established to 
regulate and stabilize domestic prices, while th e Export Promotion Fund was established to 
support, encourage export, expand markets and strengthen competitiveness of products 
- In terms of mobilized resources:  
- Price Stabilization Fund mobilizes funds not only from exports and imports arising 
price differences due to the objective reasons  being in the import-export enterprises 
favour, but also from extra profit that a dvantageous business could earn higher than 
the average profit prevailed in the industry.   
- Export Promotion Fund mobilizes funds from surcharges of imports and exports 
(however, recently, as the Government has el iminated most of surcharges, this fund 
has been decreasing gradually); additional  resources granted from the State budget 
annually.  
- Regarding the use of the Fund: 
- Price Stabilization Fund was established for domestic price stabilization, therefore the 
Fund aims to provide assistance's in order to achieve this objective. 
- Export Promotion Fund has been used  to support and encourage businesses in 
exporting and enhancing quality of export products through trade promotion and 
export performance awards, etc. 
(c) Internal policies – i.e. description of, and the budgetary expenditure and any revenue 
foregone involved in each of the domestic support measures in place 
Question 261  
We note this section of the report will need  to be updated once Working Party members and 
Viet Nam have resolved outstanding issues in relation to this area of work. 
We nevertheless welcome the information that Viet Nam has provided that it is committed to 
eliminating export subsidies upon accession.  We would hope that Viet Nam would therefore be 
in a position to a make a commitment on eliminating export subsidies in paragraph 264 of 
WT/ACC/SPEC/VNM/5. 
Answer
: 
Viet Nam has committed to eliminate export subsid ies on agricultural products, with the exception of 
forms of agricultural export subsidies that developing  countries are eligible to  maintain, from the date 
of accession.  It means that all existing agricu ltural export subsidies as notified in Viet Nam's  WT/ACC/VNM/36 
 Page 105 
 
 
Notification on domestic support and export subsidies in agriculture will be eliminated from the date 
of accession to the WTO. 
Question 262  
The content of this section will be developed on ce work on the WT/ACC/4 tables is completed. 
Answer : 
Viet Nam agrees with this suggestion. 
Question 263  
With regard to rice, we would like to know whether Viet Nam adopts rice production 
adjustment policy.  If so, we would like to know the detail of its methods. 
Answer : 
Viet Nam promulgated rice production adjustment policy.  It includes:  
- Investing in irrigation for high pr oductivity rice cultivating areas.  
- Supporting in irrigation for low-productivity an d uncertain rice cultivating areas to encourage 
shifting to producing aquatic pr oducts or growing fruit crops.  
- Providing extension services to farmers for implementing the above transformation.  
Question 264  In paragraph 264, there is a description that "[with the exception of several kinds of 
agricultural export subsidies that developing coun tries were eligible to maintain]".  We would 
like to see such description to be deleted. 
Answer
: 
Viet Nam has committed to eliminate export subsid ies on agricultural products, with the exception of 
forms of agricultural export subsidies that developing  countries are eligible to  maintain, from the date 
of accession.  It means that all existing agricu ltural export subsidies as notified in Viet Nam's 
Notification on domestic support and export subsidies in agriculture will be eliminated from the date 
of accession to the WTO. 
Core Labour Standards 
Question 265  
We note the brackets on this text and wish to clarify that this information contains no 
commitment language.  It only relates factual material.  We believe including it enhances the quality of the report and believe it should be retained. 
We would entertain suggestions on renaming the section or relocating it to another section of 
the report. 
Answer
: 
Referring to the Singapore Ministerial Conference Declaration in 1996, the International Labour 
Organization is suitable body to advise upon issues related to international labour standards.  It is also WT/ACC/VNM/36 
Page 106  
 
 noted that the section on Core Labour Standards is  not included in the Working Party Report of any 
acceding countries.  
In addition, questions from the Members in this section were mainly rela ting to the relationship 
between the ILO and Viet Nam rather than addressi ng trade, investment and commercial activities.  
- Trade in civil aircraft  
Question 266  
Paragraph 245:  We note the commitment made by Viet Nam in WT/ACC/SPEC/VNM/5 to 
consider joining the Agreement on Civil Aircra ft after accession.  However, we would again 
request that Viet Nam consider join ing the Agreement upon accession.  
Answer
: 
Viet Nam will consider joining the Agreement on Civil Aircraft after WTO accession as Viet Nam 
has been focusing resources to implement full y the multilateral agreements of the WTO.  
V. TRADE-RELATED INTELLECTUAL PROPERTY RIGHTS 
- GENERAL - Participation in international intellectual property agreements 
Question 267  
In paragraph 279, the draft Report notes that Viet Nam was planned to join the Geneva 
Convention, the Rome Convention, the Internatio nal Union for the Protection of New Varieties 
of Plants (UPOV) Convention and the Brussels  Convention in 2004.  We would like to seek 
information on the current state of play co ncerning joining in these four Conventions. 
Answer
: 
The accession to the Berne Convention was completed on 26 October 2004.  
The President of Viet Nam issued the Decision No. 492/2004/QD-CTN of 30 July 2004 on the 
accession to the Rome Convention.  The diplom atic procedure for the accession to the Rome 
Convention is now underway.  
The accession to the Rome Convention shall be followed by the accession to the Geneva Convention. 
Regarding the International Union for the Protection of New Varieties of Plants (UPOV) Convention, 
Viet Nam has so far issued the List of 15 plant sp ecies subject to this Convention's protection and the 
necessary procedures for the accession to this Convent ion in the early half of 2005 is under way.  WT/ACC/VNM/36 
 Page 107 
 
 
- SUBSTANTIVE STANDARDS OF PROTECTION, INCLUDING PROCEDURES 
FOR THE ACQUISITION AN D MAINTENANCE OF INTELLECTUAL PROPERTY 
RIGHTS 
- Copyright and related rights  Question 268  
In paragraph 290, the draft Report states that  protection of pre-programme and encrypted 
signals will be considered in the preparation of the appropriate legal documents.  As these are 
not required in the TRIPS Agreement, please tell us whether this consideration is intended to 
meet the contents of the draft Treaty on the Protection of Broadcasting Organizations which are now under preparation within the framework of WIPO or it is intended to establish its own 
regime concerning protection of pre-programme a nd encrypted signals.  If the answer is the 
latter, please explain the detail of the Government's consideration.   
Answer
: 
The protection of pre-programme and encrypted sign als is to be studied for appropriate solution.   
Question 269  
In paragraph 301, the draft Report states that  "Amendments required to implement the TRIPS 
Agreement properly were in preparation, but the timeframe had not yet to be determined."  We 
would like to seek information on the current state of play concerning the preparation of such amendments. 
Answer
: 
The amendments of the Copyrights Law as requi red by TRIPS are now under preparation in the 
process of drafting the Law on Intellectual Property.  
Question 270  
Paragraph 301 and preceding paragraphs of WT/ACC/SPEC/VNM/5 recognize that Viet Nam's 
copyright laws are not TRIPS compliant in sever al respects.  Please describe Viet Nam's plans 
for implementing the TRIPS Agreement in th e area of Copyright and Related Rights. 
Answer : 
Viet Nam's plans for implementing the TRIPS Agreem ent in the area of copyrights and related rights 
are now under preparation in the process of drafting the Law on Intellectual Property.  
Question 271  
We congratulate Viet Nam on joining the B erne Convention.  Viet Nam's copyright laws, 
however, still contain provisions that are in vi olation of the Berne Convention.  Please describe 
the steps that Viet Nam will take to implement relevant sections of the Berne Convention, as 
required by TRIPS.  
Answer : 
The amendments of the Copyrights Law to be in  line with the Berne Convention, as required by 
TRIPS, are now under preparation in the process of drafting the Law on Intellectual Property.  WT/ACC/VNM/36 
Page 108  
 
 Question 272  
Please provide a timeline for completion of the unf inished items from the 1996 Action Plan with 
respect to the protection of Copyright and Related Rights.  
Answer
: 
Regarding the protection of Copyrights and Rela ted Rights under the 1996 Action Plan, Viet Nam has 
been making efforts in order to implement the obligations under the TRIPS Agreement upon its 
accession to the WTO.  
- Trademarks and Geographical Indications 
Question 273  With regard to trademarks referred to the para graphs starting from 302, we understand that 
Articles 8 and 9 of the Vietnamese Commercial La w prohibits; (i) acts infringing trademarks 
and industrial property rights of other persons engaged in commercial activities, (ii) acts of 
fraudulence of a person who has commercial transa ctions and/or acts confusing such person, 
(iii) acts of sailing counterfeiting goods, and (iv)  acts of displaying false advertisement. We 
would like to clarify the above elements conc erning the Vietnamese Commercial Law. The 
clarified points should be included in the Repo rt as they seem to be fundamental elements 
concerning protection of trademarks in Viet Nam. 
Answer
: 
Article 8 of the Commercial Law of 1997 prohibit s acts of infringing trademarks and industrial 
property rights of other traders; and Article 9 of the Law prohibits traders from acts of (i) deceiving 
and confusing customers; (ii) selling counterfeiting goods; (iii) di splaying false advertisements.  
Provisions in the Commercial Law concerning trademar ks in particular, and industrial property in 
general, only show the principle that commercial act ivities shall not violate laws and regulations on 
the protection of industrial property rights including rights in trademarks.  Viet Nam agrees that those 
points be included in the Paragraph 302 of the Draft Report.  
Question 274  
In following upon on Viet Nam's responses to Question 156 (WT/ACC/WNM/33), by what 
means does Viet Nam protect, as required by TRI PS Article 24(5), pre-existing trademarks that 
are similar or identical to geographical indications? 
Answer : 
According to Article 785 of Civil Code and Article  6.1.f of the Decree No. 63/CP (as amended and 
supplemented by the Decree No. 06/2001/ND-CP), a trademark shall be protected only if it is not 
identical with, or confusingly similar to, geographi cal indications (including appellations of origin) 
being protected in Viet Nam.  The time to be taken into consideration of the protection of 
geographical indications is the priority date of th e trademark application, or the date of requesting 
recognition of well-known trademark.  Pursuant to th e said provision, a trademark, which is identical 
with or similar to a geographical indication, h as been filed or granted prior to the date the 
geographical indication obtained protection in Viet  Nam, the rights derived from the trademark shall 
not be affected by the protection of the geographical  indication or appellation of origin, because of the 
purpose and nature of protection with respect to th ese subjects matters are different.  The trademark 
owner has the rights to exclude other persons from using any signs, include geographical indications,  WT/ACC/VNM/36 
 Page 109 
 
 
if such use would cause confusion as to commercial or igin of goods or services. Meanwhile the nature 
of geographical indications protection is that, th at prevent using signs, which would cause confusion 
as to geographical origin of goods and the distinct  characteristics of goods, which originate from the 
territory pertaining to that geographical indication.  Furthermore, if a trademark, that is identical with 
or similar to a geographical indication, becomes distinguishable through the process of use of 
trademark, the trademark will be able to be prot ected (registered).  Thus, the prevailing law and 
regulations of Viet Nam are consistent with the provisions under Article 24.5 of the TRIPS 
Agreement.   
- Patents 
Question 275  
Paragraph 329:  Has the Joint Circular, which contains provisions to shift the burden of proof 
from the plaintiff to the defendant, been  promulgated in late 2004 as planned? 
Answer : 
The Law on Intellectual Property has recently been added to the National Assembly's Program for  
Enacting Laws and Ordinances in 2005 in accord ance with the Resolution No. 35/2004-QH1 dated 
25 November 2004.  Consequently, the Joint Circul ar of the Supreme People's Court, the Supreme 
People's Procuracy and the Ministry of Science a nd Technology guiding the settlement of disputes 
relating to industrial property rights at the Supreme People's Court w ill not be promulgated. 
Provisions on shifting burden of proof from the plaintiff to the defendant will accordingly be 
introduced in the Law on Intellectual Property which is scheduled to be considered at the National 
Assembly's 7th Session in May 2005 and passed at its 8th Session in October 2005.  
- Requirements on undisclosed information,  including trade secrets and test data 
Question 276  Paragraph 335:  Has the Joint Circular, which contains provisions on the principles of non-
disclosure and non-reliance, been promulgated in late 2004 as planned? 
Answer
: 
The Law on Competition (Law No. 27/2004/QH 11) passed by the National Assembly on 
3 December 2004 contains provisions for the prot ection against industrial property related unfair 
competition (Article 39) and the protection of undisclo sed tests and other data (Article 41.4) in its 
Chapter 5 - Unfair Competitive Acts.  Consequen tly, the plan to issue a Circular guiding the 
implementation of the Decree No. 54/2000/ND-CP has been cancelled.  
- Enforcement  
Question 277  
In relation to "Enforcement" section of the dr aft Report, we understand that the Ministry of 
Justice of Viet Nam is now preparing a draft Law on Enforcement of Judgments.  We would 
like to seek information concerning the preparatio n of the draft Law and if appropriate such 
information should be included in the Report. WT/ACC/VNM/36 
Page 110  
 
 Answer
: 
So far the revised Ordinance on Civil Judgment Execu tion of 2004 remains the highest legislation in 
the field of enforcement of civil judgements.  However, a Code on Judgement Execution is being 
drafted and expected to be submitted to the Gove rnment in May 2005 and then to the National 
Assembly for consideration at the end of 2005.  The draft Code has no specific provisions on the 
intellectual property enforcement.  
Question 278  
On the burden of proof in patent infringement actions, we understand that the Draft joint 
Circular between People's Supreme Court, Pe ople's Supreme Prosecution Institute and 
Ministry of Science and Technology guiding th e judgment of cases relating to industrial 
property rights will be promulgated at the end of  2004.  Please let us know if a copy is available 
for our review, and if not, when it  is expected to become available. 
Answer : 
The Law on Intellectual Property has recently been  added to the National Assembly's Enactment 
Program for Laws and Ordinances in 2005 in accord ance with the Resolution No. 35/2004-QH1 dated 
25 November 2004.  Consequently, the joint Circ ular of Supreme People's Court, the Supreme 
People's Prosecution Institute and the Ministry of Science and Technology guiding the judgment of cases relating to industrial property rights at th e Supreme People's Court will not be promulgated. 
Provisions on shifting burden of proof from the plai ntiff to the defendant will be introduced in the 
Law on Intellectual Property which will be promulgated in 2005.  
Question 279  
From Viet Nam's updated Legislative Action Plan (WT/ACC/VNM/31/Rev.2), we understand 
that a number of legislative acts to achieve compliance with the TRIPS Agreement are planned for submission to the Parliament only in 2006.  We expect Viet Nam's legislation to be fully in 
line with the TRIPS Agreement upon accession to the WTO. 
How does this legislative scheduling fit with Vi et Nam's commitment in paragraph 359 of the 
Working Party Report to fully apply the TRIPS Agreement upon accession? 
Answer
: 
The Law on Intellectual Property, which has been included in the National Assembly's Program for 
Enacting  Laws and Ordinances in 2005 and is schedul ed to be considered for approval at the Session 
in the end of 2005.  The provisions of major interna tional treaties in the field of intellectual property 
including the TRIPS Agreement shall be incorporat ed into the draft Law.  Accordingly, it is 
confirmed that Viet Nam's legislative schedule be in  line with its commitment in the paragraph 359 in 
the Working Party Report to fully apply th e TRIPS Agreement upon accession to the WTO.  
Question 280  
In paragraph 346 of the section of "Administrat ive procedures and remedi es", the draft Report 
refers to market control organization. We unders tand that market control organizations in the 
Ministry of Commerce in Viet Nam has the comp etence of monitoring compliance of trade laws 
by traders, of discovering smuggling of goods as  well as prohibited goods and counterfeiting 
goods distributed in the market, and of imposing administrative penalty on those who are violating laws.  We would like to clarify those points and the clarified points should be included  WT/ACC/VNM/36 
 Page 111 
 
 
in the Report.  Likewise, we understand that the Economic Police (and officials of the Economic 
Police) is in a superior position to other Gov ernment Ministries with respect to handling of IPR 
infringement because it has the competence of; (i) searching or investigating the houses of those who deem to be violating laws under certain circ umstances, and (ii) suspending the business 
licenses of those who are violating laws under c ertain circumstances.  We would like to clarify 
those points and they should be included in the Report. 
Answer
: 
In respect of the enforcement of intellectual prope rty rights in administrative procedures, market 
control forces have the competence of handling act s infringing intellectual property rights which are 
considered administrative violations in productio n, trade and service in the domestic market. The 
Economic Police has the competence of investigation and handling acts of infringing intellectual 
property rights which are considered administrative violations in all fi elds of production and business. 
The Economic Police has competence of:  (i) sear ching the houses of those who hide violating 
instruments and evidences in case they have grounds to affirm that; (ii) suspending business licenses 
in case of serious violation of provisions on the use of such business licenses. Viet Nam agrees that 
those points should be included in the Draft Report.  
However, in the process of preparing the Intellectual Property Law and amending the Decree on 
administrative measures against violation in the field of industrial property, issues related to 
administrative measures and competence of handling vi olations in the industrial property field with 
such administrative measures have been reconsider ed to avoid the overlap of competence and abuse 
of public (administrative) interven tion into the civil relationship.  
Question 281  In relation to the section of "Special border meas ures" starting from paragraph 352, we would 
like to clarify whether the Customs Code and its related laws and regulations contain the 
definition of "Counterfeit of trademarks" and "Piratical Acts". 
Answer
: 
The issues of "Counterfeit of trademarks" and "Pir atical Acts" are included in: the Law on Customs 
(Article 57, 58, 59), relevant  Interministerial Circulars No. 58/TTLT-BVHTT-BTC dated 
17 October 2003 of Ministry of Culture and Info rmation and Ministry of Finance giving the 
guidelines for copyrights protection, No. 129/TTLT/BTC-BKHCN dated 29 December 2004 of Ministry of Finance and Ministry of Science a nd Technology on protection of  industrial intellectual 
property rights at border do provide for specific cu stoms procedures (such as provision for temporary 
halt of customs procedures and othe r relevant provisions) to deal w ith imports or exports for which 
there are request to protect involved copyright or intellectual property rights. 
The Circular No. 129/2004/TTLT-BTC-BKHCN of the Ministry of Finance and the Ministry of 
Science and Technology of 29 December 2004 on the bor der control measures in respect of industrial 
property rights over imported a nd exported goods defines that "c ounterfeit trademark goods" are 
imported and exported goods, including packaging, labels, decals that bear a trademark which is 
identical with or which cannot be distinguished in  its essential aspects from the protected trademarks 
for identical goods and services without the authorization of the trademark's owner.    
The joint Circular No. 58/2003/TTLT-BVHTT-BTC on 17 October 2003 guiding the protection of 
copyright at customs agencies for imported and expo rted goods has no definition of "piratical acts" 
but defines "copyright infringing imported and exported goods" as imported and exported goods 
infringing moral rights, economic rights of the author, the owner of the work, including imported and WT/ACC/VNM/36 
Page 112  
 
 exported goods are (i) copies of work of which the production and/or the circulation is not authorized 
by the owner of the work; (ii) copies of the work which include infringing contents of copyright.  
Question 282  
In relation to the section of "Criminal procedur es" starting from paragraph 354, there is no 
description explaining a flow of criminal procee ding procedures in Viet Nam. Therefore, a 
description of a flow of such procedures starting  from initiating criminal proceeding should be 
included in the Report. Also the facts that the pr ovincial People's Court has the jurisdiction as 
the first instance over the offences of not mo re than seven years imprisonment except those 
harmful to national security should be concisely included in the Report. 
Answer
: 
According to the Criminal Procedures Code (a mended in 2003), criminal procedure including the 
following stages:  (i) initiation of legal proceedings ; (ii) investigation; (iii) prosecution; (iv) 
judgement and execution.    
Under the Article 170, please revise the jurisdiction as the first instance of the provincial People's 
Court as follows:   
"1. The district People's Courts and the Local Military Courts have 
jurisdiction as the first instance over  not very serious, serious and very serious offences  excluding: 
a) Violation of national security; 
b) Offences against the peace, crime against humanity and war 
crime; 
c) Offences under the Article 93, 95, 96, 172, 216, 218, 219, 
221, 222, 223, 224, 225, 226, 263, 293, 294, 295, 296, 322 and 323 of the Criminal Code. 
In sum, the district People's Courts have jurisdiction as the first 
instance over offences in respect of intellectual property rights. 
Criminal proceeding procedures for intellectual property 
infringement cases are the same as for other criminal cases, which includes the denouncement of crime before the competent police, investigation, transfer of file to the prosecution agency (Supreme 
People's Prosecution Institute), initiating criminal proceeding at the competent courts, judgment and enforcement of the judgment.  
2. The Provincial People's Courts and the Regional Military Courts 
have jurisdiction as the first inst ance over criminal cases beyond the 
authority of the district People's Courts and the Local Military Courts or those cases under the authority of its lower-level courts." 
Viet Nam agrees to include the above content in the Draft Report.  WT/ACC/VNM/36 
 Page 113 
 
 
VI. POLICIES AFFECTING TRADE IN SERVICES 
Question 283  The text of this section will need to be adjusted to conform to final schedules and should be used 
to provide explanations for certain measures adopted in the schedules. 
Paragraph 361 - Please explain why Representati ve offices are allowed establishment, but may 
not "engage in any direct profit-making ac tivities."  Are representative offices ever a 
mandatory requirement for investment? 
Answer
: 
In our view, the text of this section mainly reflects the current regime in some sectors and sub-sectors, 
not the commitments in these service s.  As such, it seems to be unnecessary to adjust this section to 
conform to the final Schedule.  
This regulation is currently under horizontal co mmitment reservation in Viet Nam's Schedule of 
Specific Commitments.  The establishment of a repre sentative office is not compulsory to investors. 
Representative offices are only permitted to carry out market research and survey and certain trade 
promotion activities.  
Question 284  Please clarify when branching is permitted by foreign and by domestic investors Viet Nam's 
horizontal schedule indicates branching is unb ound, but permitted for foreign suppliers in 
individual sectors.  Which sectors?  
Answer
: 
This regulation is now stipulated in Viet Nam's Schedule of Specific Commitments.  Therefore, 
Viet Nam understands that this issue should be dealt with in the framework of the bilateral 
negotiations.  
Question 285  
Paragraph 362 - Please explain why professional services companies are limited to a maximum 
of two branches:  Is there a geographic limitation for branching as well?  Can both branches be 
in the same city? 
Answer : 
This regulation is now stipulated in Viet Nam's Schedule of Specific Commitments.  Therefore, 
Viet Nam understands that this issue should be dealt with in the framework of the bilateral 
negotiations.  
Question 286  
We would appreciate further explanation of the requirements for legal professionals to become 
licensed or permitted to practice in Viet Nam. The term "lawyers practising organization" needs to be changed or defined in the WP report. WT/ACC/VNM/36 
Page 114  
 
 Answer
: 
The requirements for establishment, operation,  rights and obligations of legal professionals  practising 
in Viet Nam are specified in the 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.   
"Lawyers practising organizations" are all forms of practising organi zations of lawyers.  Thus, under 
the Decree No. 87/2003/ND-CP, foreign lawyers an d foreign lawyer organizations are permitted to 
practice in Viet Nam in the following forms: 
- Branch of foreign lawyer organizations;  
- Foreign law firm; and 
- Foreign-Vietnamese law partnership. 
Regarding to Vietnamese lawyers, under the Ordi nance on Lawyers, practising forms are Lawyers 
Office and Law partnership 
The practising conditions of the foreign lawyer organi zations were regulated und er the Article 7 of the 
Decree No. 87/2003/ND-CP, "a foreign lawyer or ganization lawfully established and currently 
operating overseas may be permitted to operate in Viet  Nam subject to the sole condition that it "has 
goodwill towards the State of Viet Nam" 
Legal practising conditions of the foreign lawyers in  Viet Nam (specified under the Article 41 of the 
Decree No. 87/2003/ND-CP): 
(i)  Has a current practising certificate issued by a competent foreign agency or organization;  
(ii)  Has goodwill towards the State of Viet Nam; and (iii)  Is employed by a foreign law practice in Viet Nam or a Vietnamese lawyer organization.  
Question 287  Paragraph 363 - What is meant by "projects within a list of registered design works?" 
Answer
: 
Viet Nam would like to correct this sentence to en sure the accuracy of translating the Vietnamese 
content into English as well as to update the provisi ons on conditions to grant Architectural Practising 
Certificate/Engineering Practising Certificate in  accordance with the Decree No. 16/2005/ND-CP 
dated 7 February 2005 on "Management of invest ment projects to construct works" as follows: 
"Architects/Engineers, who are granted Architectural Practising Certificate/Engineering Practising 
Certificate, have to possess a Bachelor Degree or higher of Architectural/Planning (for Architects) or Engineering disciplines in accordance with registered  scope of work (for Engineers), and should have 
at least five years experience in the field registered, and have participated in architectural design of at 
least five projects or construction planning of at least  five projects (for Architects), in design or survey 
work of at least five projects (for Engineers) within registered scope of work." 
Question 288  
We request elaboration from Viet Nam on the criteria used to determine whether a wholesale 
and retail establishment may establish a commercial presence.  WT/ACC/VNM/36 
 Page 115 
 
 
Answer : 
This regulation is now stipulated in Viet Nam's Schedule of Specific Commitments.  Therefore, 
Viet Nam understands that this issue should be dealt with in the framework of the bilateral 
negotiations.  
Question 289  
Paragraph 365 - Please remove the reference to the economic needs test. Viet Nam's economic 
needs test was removed from the schedule of commitments and the Working Party report should reflect this change. 
Answer
: 
Viet Nam understands that the measures specified  in the Schedule of Specific Commitments reflects 
the commitments Viet Nam must take after accession to the WTO, not the present policy of Viet Nam. 
Therefore, we do not think it is essential to adjust  the Draft Report to conform to the Schedule. 
Question 290  
Information regarding subsidies related to trade in  services is needed in the WP report part on 
trade-related services regime.  
Answer : 
Viet Nam understands that subsidies are not clearly  specified in the GATS and are now under services 
negotiations in the New  Round of the WTO.  Therefor e, we are not able to provide information about 
subsidies related to trade in services.  We woul d appreciate the technical assistance from the Members 
of the Working Party in this regard.  
Question 291  
Could Viet Nam describe the general framework of  the privatisation process. Some specification 
of this regime is needed in the part concerning trade-related services regime. 
Could Viet Nam specify the limitations imposed  on foreign service suppliers as regards the 
privatisation of companies engaging in trade in services? 
In particular, could Viet Nam clarify which is  the definition of "Viet Nam's enterprises" 
(Horizontal section, Mode 3 , Market access, 30 per cent foreign-ownership cap) ?  
Answer : 
Viet Nam is implementing equitization, assignment and sale of State-owned enterprises in order to 
transform these enterprises from 100 per cent State- owned enterprises into joint-stock companies, 
limited liability companies and private enterprise s, in which the State may or may not retain 
controlling shares. 
The total value of shares sold to the foreign investors should in no case exceed 30 per cent of 
registered capital of the equiti zed enterprises in service sectors 
"Viet Nam's enterprises" in the Horizontal secti on are all kinds of enterprises registering and 
operating under the Law on Enterprises and Law on State-owned Enterprises and other legal entities 
wholly owned and/or controlled by the Vi etnamese individuals and/or organizations. WT/ACC/VNM/36 
Page 116  
 
 Question 292  
Urban planning services:  What is the definition of "social stability" referred to? Does it 
correspond to the public order exception of GATS Article XIV?  
Answer
: 
The phrase "social stability" in Viet Nam's Schedule of Commitments should be corrected as "social 
safety and order" for precise meaning in translation.   It correspond to the public order exception of 
GATS Article XIV. 
Question 293  
Recreational services:  What is the definition of "electronic games business" ? 
Answer : 
The Circular No. 08/2000/TT-BVHTT dated 28 April 2000 of the Ministry of Culture and 
Information and other relevant legal documents defi ne "Electronic games business is the provision of 
services by an organization, enterprise or private individual, household to conduct electronic games 
between human and machines used for the game  with a built-in electronic games programme, 
inclusive of: 
1. Machines with preinstalled electronic games or entertainment games based on electronic 
technology. 
2. Tapes, disks or accessories containing electronic games content/software. 
3. Transmitters, equipment displaying electronic games. 
4. Computers, computer networks with the content of electronic games. 
Individuals and organizations using or commerciali zing electronic games services are only allowed to 
use machines, tapes, disks or accessories with th e content of healthy entertainment games to 
contribute to physical human development and improving people's aesthetic awareness.  The 
organization of electronic games with prizes in cash or kind of a gambling nature is strictly prohibited." 
However, in order to attract foreign tourists a nd create entertainment activities for foreigners in 
Viet Nam with a view to improving Viet Nam's fore ign investment environment, the Prime Minister 
issued the Decision No. 32/2003/QD-TTg of 27 February 2003 on the Regulation on conducting business of electronic games with prizes restricted to  foreigner players, wherein it is stated that 
"Electronic games business with prizes is the provis ion of services by an enterprise to conduct games 
between human and electronic machinery used for th e game with a built-in automatic prize payment 
programme.  The business of electronic games with prizes is very sensitive and of conditional 
business sector.  Its development is not encouraged  and it is only additional to the main business 
activities of the enterprise.  For all these reasons , the number of licensed enterprises to conduct the 
business of electronic games with prizes should be limited and any application for a licence to conduct such a business should be submitted by the Mini stry of Planning and Investment to the Prime 
Minister for consideration and decision onl y after being evaluated by the former." 
Question 294  Licensing: We request Viet Nam to guarantee transparency of licensing requirements and 
procedures, qualification requirements and pro cedures as well as of other authorisation 
requirements, in particular with respect to obtaining, extending, renewing, denying and  WT/ACC/VNM/36 
 Page 117 
 
 
terminating licenses and other approvals required to  provide services in Viet Nam's market and 
appeals of such actions. Viet Nam's licensi ng procedures and conditions should not in 
themselves act as a barrier to market access an d should not be more trade restrictive than 
necessary.  
Viet Nam should publish (1) a list of authorit ies responsible for authorising, approving or 
regulating those service sectors in which Vi et Nam makes specific commitments and 
(2) Viet Nam's licensing procedures and condi tions. Viet Nam should ensure that these 
procedures and conditions are:  
- pre-established, publicly available, and based on objective criteria; 
- identify activities, terms and conditions; 
- include all critical information for valid completion of applications; 
- include relevant timeframe and critical deadlines (at least indicative ones); - identify the competent authority. 
More specifically, we request that for those servic es included in Viet Nam's Schedule of Specific 
Commitments, Viet Nam will ensure that:  
- Viet Nam's licensing procedures and condi tions will be published prior to becoming 
effective;  
- In that publication, Viet Nam will specify reasonable time frames for review and 
decision by all relevant authorities in Viet Nam's licensing procedures and conditions;  
- Applicants will be able to request licensing without individual invitation;  
- Any fees charged, which are not deemed to in clude fees determined through auction or a 
tendering process, will be commensurate with the administrative cost of processing an 
application; 
- The competent authorities of Viet Nam will, after receipt of an application, inform the 
applicant whether the application is consid ered complete under Viet Nam's domestic 
laws and regulations and in the case of incomplete applications, will identify the 
additional information that is required to complete the application and provide the 
opportunity to cure deficiencies;  
- Decisions will be taken promptly on all applications;  
- If an application is terminated or denied, the applicant will be informed in writing and 
without delay the reasons for such action. The applicant will have the possibility of resubmitting, at its discretion, a new app lication that addressed the reasons for 
termination or denial; 
- Where Viet Nam requires an examination to licence professionals, such examinations 
will be scheduled at reasonable intervals.   
Answer
: 
Please refer to paragraph 361 of Draft Report (document WT/ACC/SPEC/VNM/5) for the list of 
Ministries and Agencies responsible for sectors and sub-sectors specified in the Schedule of Specific 
Commitments. 
Regarding the transparency in licensing procedures,  Viet Nam understands that this issue are clearly 
stipulated in Article III and VI of the GATS. Ther efore, without prejudice to the conditions specified 
in the Schedule of Specific Commitments, Viet Nam shall fully comply with the obligations indicated 
in these Articles of the GATS.  WT/ACC/VNM/36 
Page 118  
 
 Question 295  
Independence of the regulator: We would ask Viet Nam to guarantee that for those services that 
will be included in Viet Nam's Schedule of Specific Commitments, relevant regulatory authorities will be separate from, and not accoun table to any service suppliers they regulate.  
Answer
: 
Regarding services specified in the Schedule of Sp ecific Commitments, Viet Nam ensures to fully 
comply with GATS rules in regulating services activities.  
Question 296  
Choice of Partner:  We would ask Viet Nam to guarantee that the foreign suppliers remain free 
to choose their partners.  
Answer : 
Regarding the committed services sectors, Viet Na m has no limitation on choosing partners of the 
foreign suppliers, unless it is otherwise specifi ed in the Schedule of Specific Commitments.  
VII. TRANSPARENCY 
Question 297  
This section will require extensive work as we get closer to completing the negotiations. 
Viet Nam should consider adoption of a co mprehensive regulatory review mechanism that 
would guarantee transparency in the developmen t of laws and regulations governing trade in 
goods and services, and intellectual property.  
Answer : 
In order to guarantee transparency of the legal sy stem, Viet Nam has so far promulgated the Law on 
the Promulgation of Legal Normative Documents, ac cordingly all legal documents shall be appraised 
before enacting.  The appraisal is undertaken with a view to securing uniformity and synchronism of the legal system and its conformity with Viet Nam's international commitments.  In addition, 
according to the Law and the Decree No. 104/2004/N Đ-CP dated 23 March 2004 on Official Gazette 
of the Socialist Republic of Viet Nam, all legal normative documents and inte rnational treaties that 
already entering in to effect for Viet Nam shall be published on this Gazette. 
VIII. TRADE AGREEMENTS 
Question 298  In the interest of transparency, we would appreciate Viet Nam's description in the text of the 
Working Party report of the goods market access and services commitments it  has made as part 
of the ASEAN – China Free Trade Agreement. 
Answer
: 
The specific commitments on goods and services mark et access in the framework of ASEAN – China 
Free Trade Agreement are currently finalized so Viet  Nam is not yet able to notify these commitments  WT/ACC/VNM/36 
 Page 119 
 
 
to the Working Party.  Viet Nam would make an  arrangement with other ASEAN members and China 
regarding the notification of the agreement in conformity with WTO rules. 
- Legislative Action Plan 
Question 299  We applaud Viet Nam's acceleration of its Legisl ative Action Plan; however, we note that the 
Working Party will need to review all new trade legislation for conformity with WTO rules and 
disciplines prior to completion of negotiations. 
WT/ACC/VNM/31/Rev.2 indicates that Viet Nam should have enacted the following laws in 
November:  Law on Competition, Law on Enac ting Normative Legal Documents of the Local 
Government, Ordinance on Tender, the Law on Electricity, the Law on Publication, and the 
Ordinance on Procedures for Settlement of Administ rative Cases.  Have they been enacted?  If 
so, when do you expect to provide the Working Party with copies? 
Answer
: 
Viet Nam would take note of the above comment. Up to date, Viet Nam has enacted the followi ng laws: Law on Competition (No. 27/2004/QH11 dated 
14 December 2004); Law on Electricity (No. 28 /2004/QH11 dated 14 December 2004); Law on 
Publication (No. 30/2004/QH11 dated 14 Decemb er 2004); Law on the Promulgation of Legal 
Normative Documents of Local Government  (No. 31/2004/QH11 dated 14 December 2004).  
The Ordinance on Procedures for Settlement of Admini strative Cases  has also  been enacted and its 
amendment in 2005 is currently taken into consideration by the National Assembly.  
The Ordinance on Tendering is scheduled for co nsideration by the Standing Committee of the 
National Assembly to be enacted in 2005. 
Question 300  
WT/ACC/VNM/31/Rev.2 indicates that Article 8 of the Law on VAT and Articles 7 and 16 of 
the Law on Excise Tax are scheduled for action in  2005.  However, they do not appear on the 
2005 National Assembly Program.  The LAP indi cates these amendments to these laws are 
necessary to bring the two laws into conformi ty with WTO requirements.  When does Viet Nam 
plan to enact them? 
Answer
: 
The amendments to the Law on VAT and Law on Exci se Tax are currently studied by relevant bodies 
of Viet Nam so as to have adjustments for conform ity with WTO rules prior to Viet Nam's accession 
to the WTO. 
Question 301  We also note that the Ordinance on Foreign Exchange and the Ordinance on Standardization 
are placed in the "Preparatory" section of th e 2005 Law Program.  Most of the Ordinances 
scheduled for action in 2005 appear to have no relation to WTO accession.  Will these two 
ordinances be enacted as scheduled on the LAP?  Can they be made a higher priority? WT/ACC/VNM/36 
Page 120  
 
 Answer
: 
The Ordinance on Foreign Exchange and Ordinance on Standardization have been placed in the 
"Preparatory" section of the 2005 LP by the National Assembly. At present, Viet Nam is making the 
best effort to accelerate the schedule of drafting and promulgating these two ordinances.   
Specifically, the draft Ordinance on Standardization is being actively establis hed to be submitted for 
consideration by the Standing Committee of the Nati onal Assembly in July or August of year 2005 
due to its imperativeness.  
Also, the Ordinance on Foreign Exchange is being ac tively drafted.  The content of this Ordinance 
shall be developed towards Viet Nam's interna tional economic integration wherein the compliance 
with Article VIII on liberalizing current account transactions is guaranteed.  The Ordinance on 
Foreign Exchange is scheduled to  be promulgated in accordance with Viet Nam's Legislation Action 
Plan already submitted to the WTO Secretariat. 
Question 302  
We note that seven of the eleven items the National Assembly program for the November 2005 
session do not appear to be related to WTO access ion.  If necessary, would Viet Nam be able to 
move laws necessary for WTO accessi on onto the November 2005 calendar? 
Answer : 
In Viet Nam's National Assembly Legislation Progr am, there are included legal documents of various 
sectors  with a view to accommodating the needs of  socio-economic, cultural development, of security 
and defence, etc., in particular the requirements of international economic integr ation.  In the National 
Assembly Legislation Program of the past years, mo st particularly the 2005 Legislation Program, the 
National Assembly has given and will continue to give a priority to considering and adopting draft 
laws proposed for the WTO accession.  Whenever th e case is necessary, the National Assembly would 
be able to consider adding to the program draft la ws and ordinances to be enacted in 2005.  Relevant 
bodies of Viet Nam are seeking measures to further accelerate the enactment of  those relating to WTO 
rules. 
In reference with Viet Nam's National Assembly  Legislation Program which it transmitted to the 
Working Party, in the Session of November 2005, the National Assembly will give a priority to taking 
some draft laws into consideration and adoption su ch as those on intellectual property, on electronic 
transaction.  
The common Investment Law and uniform Enterprise  Law are currently being drafted and scheduled 
to be submitted to the National Assembly's 8th Session in October 2005 for consideration in 
accordance with the National Assembly's Program  for Enacting Laws and Ordinances in 2005 
provided in the Resolution No. 35/2004/QH11 date d 25 November 2004 of the National Assembly. 
The Government of Viet Nam has requested the Nati onal Assembly to pass, instead,  these two laws 
at its 8th Session in October 2005 (i.e. requested an ear lier approval).  The National Assembly will 
make the decision in its 7th Session in May 2005.  The draft Laws planned for submission to the 
National Assembly shall be submitted to the Working Party as soon as they are completed. 
In addition to these laws, the Standing Committee w ill consider and adopt draft ordinances proposed 
for the above requirements.  WT/ACC/VNM/36 
 Page 121 
 
 
Question 303  
In reviewing the complete history of Viet Nam's LAP's, we discovered an item in 
WT/ACC/VNM/15/Add.3, the Law on Enterprise Income Tax that disappeared in WT/ACC/VNM/31 and has not reappeared in Viet Nam's documentation since.  Please explain 
the fate of this law. 
Answer
: 
The revised Law on Corporate Income Tax was adopted in 1 January 2004.  The current provision of 
enterprise income tax are not inconsistent to th e WTO provisions.  Consequently, it is not necessarily 
to indicate them in Viet Nam's Legislation Action Plan submitted to the Working Party. 
 
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