RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/ACC/VNM/44 
9 June 2006 
 (06-2762) 
Working Party on the 
Accession of Viet Nam Original:   English 
 
 
    
ACCESSION OF VIET NAM 
Additional Questions and Replies
 
 
 The following submission, dated 29 May 2006, is  being circulated at the request of the 
Delegation of the Socialist Republic of Viet Nam.   WT/ACC/VNM/44 
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  TABLE OF CONTENTS 
II. ECONOMIC POLICIES..........................................................................................................1  
- Monetary and Fiscal Policy..................................................................................................... .1 
- Investment Regime.............................................................................................................. ......1  
- State-Owned, State trading en terprises / Privatization.......................................................14  
III. FRAMEWORK FOR MAKING AN D ENFORCING POLICIES ....................................22  
IV. POLICIES AFFECTING TRADE IN GOODS ...................................................................23  
- Trading Rights ................................................................................................................. .......23  
A. IMPORT REGULATIONS....................................................................................................28  
- Tariff rate quotas, tariff exemptions.....................................................................................28  
- Fees and charges for services rendered.................................................................................30  
- Application of internal taxes to imports ...............................................................................31  
- Quantitative import restrictions, includi ng prohibitions, quotas and licensing 
systems ........................................................................................................................ .............35  
- Customs valuation.............................................................................................................. .....43  
- Rules of origin ................................................................................................................ .........51  
- Other customs formalities ...................................................................................................... 51 
- Pre-shipment Inspection........................................................................................................ .52 
- Anti-dumping, countervailing duties, safeguard regimes ...................................................52  
B. EXPORT REGULATION......................................................................................................53  
- Customs tariffs, fees, and charges for s ervices rendered, application of internal 
taxes to export ................................................................................................................ .........54  
- Export rest rictions ............................................................................................................ ......55  
- Export subsidies ............................................................................................................... .......55  
C. INTERNAL POLICIES A FFECTING FOREIGN TRADE IN GOODS .........................55  
- Industrial policy, including subsidies....................................................................................55  
- Technical barriers to trade, standards and certification.....................................................59  
- Sanitary and phytosanitary measures...................................................................................62  
- Trade-related investment measures ......................................................................................64  
- Free zones, special economic areas........................................................................................65  
- Government procurement......................................................................................................66  
- Trade in transit ............................................................................................................... ........66  
- Agricultural policies.......................................................................................................... ......67  
- Trade in ci vil aircraft........................................................................................................ ......67  
- Textiles regime ................................................................................................................ ........67  
- Core labour standards.......................................................................................................... ..67 
V. TRADE-RELATED INTELLECTUAL  PROPERTY REGIME.......................................68  WT/ACC/VNM/44 
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  -
 General........................................................................................................................ .............68  
- Copyright and related rights..................................................................................................7 1 
- Patents and undisclosed information ....................................................................................75  
- Geographical indications, including appellations of origin.................................................78  
- Enforcement .................................................................................................................... ........79  
VI. POLICIES AFFECTING TRADE IN SERVICES..............................................................80  
VII.  TRANSPARENCY .................................................................................................................83  
ANNEX I........................................................................................................................ .......................84  
ANNEX II ....................................................................................................................... ......................86  
ANNEX III...................................................................................................................... ......................91  
 
   WT/ACC/VNM/44 
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  II. ECONOMIC POLICIES 
- Monetary and Fiscal Policy - Investment Regime Question 1 We thank the Vietnamese Delegation for its reply to Question No. 9 in WT/ACC/VNM/41 which 
induces two remarks: we request Viet Nam to make this new decree available to the 
Membership and to update the draft Working Party report in a detailed and appropriate 
manner. 
Answer
: 
The draft Decree guiding the implementation of the Commercial Law regarding enterprises with 
foreign-owned capital specializing in purchase and sale of goods and activities directly related to 
purchase and sale of goods in Viet Nam has been subm itted to the Government for consideration.  The 
Decree will be made available and its contents used to update the Working Party Report once 
approved by the Government.  
Question 2  
Investment Regime: This section needs to be subs tantially revised to reflect the changes brought 
about by the enactment of the Investment, Enterprise, and Commercial Laws as well as the implementing regulations that are being drafted.   
Answer
: 
Viet Nam has updated the section on Investment Regi me to reflect the recent legislative changes.  
Question 3  
New licensing system: Can Viet Nam confirm th at for investments under 300 billion dong and as 
long as they are not acting in conditional or prohibited sectors, enterprises will not have to 
reapply for an investment licence or business registration when modifying their business 
activities? 
Answer : 
Any changes to the investment/business activities i ndicated in the Investment Certificate and/or 
Business Registration Certificate have to be re-registered.  The purpose of this requirement is to ensure the legal basis and legitimate rights and bene fits of investors during operation in Viet Nam.  
Question 4 
What kind of administrative measures does Viet  Nam envisage to minimize the administrative 
burden, which now occurs for investments above 15 billion dong because they have to get both 
an investment licenses as well as register the bus iness? Will there be a harmonisation of the two 
application processes? WT/ACC/VNM/44 
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  Answer
: 
There is no burden in the investment/business regist ration procedures applicable to foreign investors. 
Under the Law on Investment and the Law on Enterprise, these two procedures have been harmonized (i.e. an Investment Certificate is also considered  and serves as a Business Registration Certificate). 
Question 5 
Conditional investments ask for both investment  evaluation as well as business registration.  
The explanatory note by Viet Nam on the thre e laws (investment, enterprises and commercial) 
explains that where legislation requires conditions,  the enterprises are only permitted to do 
business when they satisfy conditions as stipulated.  Then it is said that business conditions are set in the forms of Certificate of Business Registration, Certificate of Business Conditions, 
Certificate of Profession, etc. Are these Certificat es additional to the investment evaluation and 
the business registration and if yes is  there a separate application process? 
Answer
: 
The Certificate of Business Registration serves as  the legal basis for the establishment of an 
enterprise.  In case of doing business in any of th e conditional business sectors, an enterprise has to 
apply for the appropriate licenses/certificates.  The application for such licen ces/certificates will be 
subject to a separate application process. 
Question 6 
Paragraph 32 onwards (WT/ACC/SPEC/VNM/5/Rev.2 ), General comment: this section needs to 
be redrafted completely to reflect the contents of the new legislation – it now explains the system 
based on the old legislation, which is confusing. 
Answer : 
Viet Nam has updated this section to reflect the new le gislative developments of the Investment Law.  
Question 7  
Paragraph 35 (WT/ACC/SPEC/VNM/5/Rev.2), Question 17 of WT/ACC/VNM/41: We note 
Viet Nam's statement that it is currently rev ising its business licensing system.  We thank 
Viet Nam for the illustrative list of condition al business sectors provided in Table 2 (seven 
sectors only), and we would urge Viet Nam to comp lete this exercise as soon as possible in order 
to have an exclusive list comprising 1) the co nditional business sectors, 2) the conditions for 
licences in these sectors and 3) the authorities re sponsible for granting the licence.  We would 
also urge Viet Nam  to introduce a on e-stop-shop for investment matters.   
We stress the importance of this exercise, and would be happy if Viet Nam could indicate a 
timing for the completion of this task.  
Answer : 
Viet Nam is reviewing its business licensing system and the conditions for licenses, in particular to 
fully comply with the transparency obligation under GATS.  Informati on on conditional business 
sectors, the applicable conditions and the responsib le authorities have been frequently updated and 
made public in several websites of government and non-governmental agencies (see the answer to 
Question 13 of WT/ACC/VNM/41).   WT/ACC/VNM/44 
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  In practice, the one-stop-shop for investment ma tters has been set up in Ministries and local 
authorities. 
Question 8 
Paragraph 39 (WT/ACC/SPEC/VNM/5/Rev.2 ) and Question 9 of WT/ACC/VNM/41, 
Commercial law, Questions 18 and 19: We no te that Implementing Regulations for the 
Investment Law are under preparation.  These will indicate the percentages of shares that 
foreign enterprises are allowed to purchase in Vi etnamese enterprises and the list of conditional 
investment licences and their conditions.  
- Could Viet Nam indicate when they could submit the draft Regulations to the Working 
Party? 
- Could Viet Nam submit the latest version of the draft Implementing Decree to the 2005 
Commercial law to the Working Party?  
Answer : 
Draft Decrees guiding the implementation of the I nvestment Law will be made available to the 
Working Party at soon as the drafting is completed.  
As for the decrees guiding the implementation of the Commercial Law of 2005, the situation is as 
follows: 
(a) The Government has so far promulgated the following decrees:  - Decree No. 12/2006/ND-CP dated 23 Janua ry 2006 guiding the implementation of 
the Commercial Law on international trade activities and other importation, exportation, processing and transit of goods with foreign countries; 
 - Decree No. 19/2006/ND-CP dated 20 February 2006 guiding the implementation of 
the Commercial Law on rules of origin; 
 - Decree No. 20/2006/ND-CP dated 20 February 2006 guiding the implementation of 
the Commercial Law on goods inspection services; 
 - Decree No. 35/2006/ND-CP dated 31 March 2006 guiding the implementation of the 
Commercial Law on franchising; and 
 - Decree No. 37/2006/ND-CP dated 4 April 2006 guiding the implementation of the 
Commercial Law on trade promotion activities. 
(b)  The final drafts of the following Decrees ha ve been submitted to the Government (approval is 
expected soon): 
 - Draft Decree guiding the implementati on of the Commercial Law on the goods and 
services that are prohibited, restricted or conditional when conducting business; 
 - Draft Decree guiding the implementati on of the Commercial Law on representative 
offices, branches of foreign firms in Viet Nam; 
 - Draft Decree guiding the implementation of the Commercial Law on foreign invested 
enterprises specializing in trade in goods a nd other activities directly related to trade 
in goods in Viet Nam; and 
 - Draft Decree guiding the implementation of the Commercial Law on e-commerce.  
Viet Nam has provided some drafts to the Working Party. Once promulgated, Viet Nam will 
immediately provide the Working Party with the English translation of these Decrees. WT/ACC/VNM/44 
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  Question 9 
Paragraph 42 (WT/ACC/SPEC/VNM/5/Rev.2), Question 39 of WT/ACC/VNM/41: We would 
reiterate our concern as regards the possibility given in the Investment Law to grant ad hoc incentives to an important industry or a region.  However, we thank Viet Nam for the improvement of Article 39, which stated that any such proposal should be given to the National 
Assembly for consideration.  Could Viet Nam ex plain what will be the legal form of such 
resolution of the National Assembly and whethe r it will be published? Could Viet Nam also 
commit itself to notify all such decisions to grant ad hoc incentives to the WTO? 
Answer
: 
The decision of the National Assembly on this matter will be in the form of a Resolution - one of the 
forms of legal normative documents issued by the National Assembly.  Viet Nam will notify the WTO 
of its subsidy programs in accordance with the WTO's Agreement on Subsidies and Countervailing 
Measures. 
Question 10 
Paragraph 48, (WT/ACC/SPEC/VNM/5/Rev.2): The relevant Articles in the Investment Law 
are 45 to 49. 
Answer : 
Yes. 
Question 11  
Paragraph 49, (WT/ACC/SPEC/VNM/5/Rev.2): This  paragraph should be updated to describe 
the procedures set out in Articles 45 to 49 of the 2005 Investment Law.  
Answer : 
Viet Nam has updated this paragraph.  
Question 12 
Questions 21 and 36 (WT/ACC/VNM/41): We thank Vi et Nam  for the subsidy notification for 
the period of 2003-2004. We will comment on it in more detail when we discuss the relevant 
section of the Working Party Report.  
As regards the 2005 Investment Law, we note that it  stipulates in Article 32 that investments in 
export processing zones shall be entitled to the incentives under the law.  Because of this 
classification, all incentives listed under Section 2 "Investment Incentives" are also granted for 
export activities, and considered as prohibited  export subsidies under Article 3 of the WTO 
Agreement of Subsidies and Countervailing Measures.  This includes Article 43 concerning 
investment to infrastructure of industrial zones, export processing zones, high tech zones etc.  
We would like to repeat our previous position on this matter and urge Viet Nam to eliminate all 
prohibited subsidies upon accession.  We do not co nsider the seven years’ transition period to 
abolish export subsidies in the form of investme nt incentives appropriate, since the exemptions 
in the Agreement on Subsidies and Countervailing measures concerning prohibited subsidies do 
not apply to Viet Nam.  We therefore urge Vi et Nam to eliminate all prohibited subsidies 
contingent on export performance upon accession.  WT/ACC/VNM/44 
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  Answer : 
Viet Nam commits not to introduce new subsidies th at are prohibited under the SCM from the date of 
accession to the WTO.  With the exception of certa in prohibited export subsidies in the form of 
investment incentives granted to licensed project s of export production prior to the WTO accession 
for which Viet Nam is only seeking a very short trans itional period of five years in order to honour its 
commitments with the existing investors and stab ilize the business environment, Viet Nam commits 
to eliminate all remaining prohibite d subsidies upon accession to the WTO.  
Article 32 and Article 37 of the Investment Law s tipulate investment incentives for projects investing 
in export processing zones.  In the Implementing De cree of the Law, these investment incentives will 
be stipulated consistent with Viet Nam's co mmitments on subsidies (i.e. incentives will not be 
contingent upon export performance or local conten ts).  Specifically, enterprises in export processing 
zones shall not be required to export their produc ts and shall only be entitled to incentives in the 
forms of, inter alia , facilitation of procedures with respect to investment and rental of land and 
premises; facilitation in the supply and training of la bour, supply of water, power and other utilities. 
Question 13  
As regards prohibited subsidies in general, we  note that the 2005 Investment Law, Article 32, 
stipulates that investments in export processing zones shall be entitled to the incentives under 
the law.  Because of this classification, all incentives listed under Section 2 "Investment 
Incentives" are also granted for export activities, and considered as prohibited export subsidies 
under Article 3 of the WTO Agreement of Subs idies and Countervailing Measures (subsidies 
contingent on export performance).  
We welcome the commitment of Viet Nam to stop granting any new export subsidies upon 
accession, and would be happy if Viet Nam coul d explain its view on how Article 32 of the 
Investment Law can be considered compatible with  this commitment to stop granting export 
subsidies? 
Answer : 
Article 32 and 37 of the Law on Investment stipul ate investment incentives fo r investments in export 
processing zones.  However, in the implementing de crees of the law, these incentives shall conform to 
Viet Nam's commitments on subsidies (i.e. incentiv es will not be contingent upon export performance 
or local contents).  Specifically, enterprises in e xport processing zones are not required to export their 
products and are entitled to incentives in the form s, among others, of: facilitation of investment 
procedures, and rental of land and premises; support in the supply a nd training of labour, supply of 
water, power and other public utilities. 
Question 14   
Investment Law: We thank Viet Nam for its re plies to our questions and the clarifications 
provided.  We would  however still have the following question:  
Article 5.2 of Investment Law stipulates that in case of special investment activities which are 
regulated by other laws, the provisions of such other laws apply. 
Could Viet Nam  indicate what are these special investment activities subject to other laws, and 
what are the laws that apply to these sectors? WT/ACC/VNM/44 
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  Answer
: 
The provisions under Article 5.2 shall be interp reted as such: in case investment activities (for 
example in banking, insurance etc.) are regulated by other laws, those investment activities are subject 
to such other laws (for example, the Law on Credit  Institutions, the Law on Insurance etc.).  Please 
also refer to explanation of Article 29 below. 
Question 15  Investment Law, Article 29 – Conditional investme nt sectors: The Article lists some conditional 
sectors and indicates additional sectors "a numb er of other sectors in accordance with law".  
Could Viet Nam  confirm that this "law " will be the Implementing regulations to the Investment Law that should set out the conditi onal sectors and conditions for their licences?  
We stress that the list of conditional sectors incl uded in the implementing regulations should be 
exhaustive. Can Viet Nam  confirm that the list of the implementing Regulations will indeed be 
exhaustive and list all conditional sectors and their conditions? 
Answer
: 
The Law on Investment and its Implementing Decr ees cannot provide for an exhaustive list of 
conditional investment sectors.  Investment activ ities in certain sectors are subject to other laws, 
which are of higher legal validity than Government's  decrees and are subject to changes independently 
from the Law on Investment.  As a result, Article 5.2 makes reference to the application of other laws 
to certain investment activities su ch as banking, insurance etc.  
Question 16 
Article 31 of Investment Law gives the Government powers to amend and add to the lists of 
both prohibited and conditional investment sect ors.  We are concerned about these types of 
provisions as they make the system very vola tile and are not providing legal certainty to 
operators.  We consider that it should be possi ble to decide on prohibited and conditional 
sectors in an exclusive way, and that the lists should only be reduced, but not increased by adding further prohibited or conditional secto rs.  We would be happy if Viet Nam would 
explain the exact procedures that are to be fo llowed when the lists are changed, and how the 
transparency of such changes is ensured?   
Answer
: 
Viet Nam confirms that the amendment of or additi on to the above lists (if any) will be consistent 
with Viet Nam's WTO obligations.  Concerning the procedure, the Ministry of Planning and 
Investment in coordination with  the relevant agencies would, in case necessary, submit to the 
Government the proposed changes to the implemen ting Decree on this matter.  As for investment 
conditions provided for in other laws or decrees, relevant agencies w ill, in cooperation with Ministry 
of Planning and Investment, submit proposed changes (if any) to the competent authority for consideration.  Changes on this matter will be ma de public, even for comments at drafting stages, in 
accordance with the Law on the Promulga tion of Legal Normative Documents.  
Question 17 Investment Law, Article 37: Could Viet Nam  explain the purpose of this Article? Does this 
Article indicate that the Government can decide to grant other incentives than those listed in 
previous Articles 32 to 36 to these special zo nes, including export processing zones?   WT/ACC/VNM/44 
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  We have expressed our concerns about a possibility to grant ad hoc incentives that are not 
clearly provided by the law (lack of transpa rency) and would like to repeat these concerns in 
this context. 
Answer : 
Article 32 and 37 of the Law on Investment stipul ate investment incentives fo r investments in export 
processing zones.  However, in Implementing Decr ees of the law, these incentives shall conform to 
Viet Nam's commitments on subsidies (i.e. incentives will not be contingent on export performance or 
local contents).  Specifically, enterprises in e xport processing zones shall not be required to export 
their products and shall only be entitled to incentives in the forms of, inter alia , facilitation of 
procedures with respect to investment and rental of land and premises; fac ilitation in the supply and 
training of labour, supply of wa ter, power and other utilities. 
The provision of ad hoc investment incentives will be  provided for in the form of Resolution by the 
National Assembly in a transparent manner. 
Question 18  
Investment Law: Article 39: We would reiterate our concern as regards the possibility given in 
the Investment Law to grant ad hoc incentives to  an important industry or a region.  However, 
we thank Viet Nam for the improvement of Article 39, which stated that any such proposal should be given to the National Assembly for co nsideration.  Could Viet Nam explain what will 
be the legal form of such resolution of the National Assembly and whether it will be published? Could Viet Nam also commit itself to notify all such decisions to grant ad hoc incentives to the 
WTO? 
Answer
: 
The decision of the National Assembly on this matter will be in the form of a Resolution - one of the 
forms of legal normative documents issued by the National Assembly.  Viet Nam will notify the WTO 
of its subsidy programs in accordance with the WTO's Agreement on Subsidies and Countervailing 
Measures. 
Question 19  Investment Law, Article 45 to 49 – Investment pr ocedures.  We have the following comments to 
make on this section: 
Investment Law, Article 47:  As regards Article 47, we note that criteria as regards important 
national projects are still to be decided by th e National Assembly and the procedures, and the 
responsible State body by the Government.  Coul d Viet Nam  indicate when these regulations 
will be available and what is the definition of an "important national project".   
Article 47 provides that only projects with invested  capital of 300 billion dong or more, or which 
are in a conditional sector, are subject to evaluati on procedure.  However, Article 48 lays down 
the evaluation procedure for projects with invest ed capital of less than 300 billion dong.  Could 
Viet Nam  clarify the contradiction between Articles 47 and 48?  WT/ACC/VNM/44 
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  Answer
: 
Criteria for an "important national project" shall be decided by the National Assembly on case-by-
case basis.  Under Resolution No. 05/1997/QH10 dated 29 November 1997, a project shall be 
considered as an "important national project" when meeting one of the following criteria: 
(a) Projects having an invested capital of 10,000 billion VND or more (at 1997 price); 
(b) Projects having major impacts or potentially having major impacts on the environment; 
(c)  Projects leading to movement and resettlement  of 50,000 people or more in populous areas, or 
20,000 people or more in mountainous areas and areas of ethnic minorities; 
(d) Projects located in areas having special importance to national defence and security, having 
important historical and cultural relics, or having special natural resources; and 
(e) Projects requiring special mechanisms or polici es that need to be considered and decided by 
the National Assembly.  
Under Article 47.1, the evaluation procedures shall be  applicable to either two types of projects: 
(i) projects having invested capital of VND 300 billion or more; and (ii) projects in conditional investment sectors.  However, in reality, ther e are projects that have invested capital of VND 300 
billion or more, and fall into conditional investment s ectors at the same time.  Article 48 stipulates the 
evaluation procedure for these projects.  Therefore,  there is no contradiction between Article 47 and 
Article 48. 
Question 20 
Investment Law, Article 50: Can Viet Nam confirm that the investment certificate is a sufficient 
registration document for a foreign company having an investment project, and that it does not 
need to make a separate business registration  in accordance with the Enterprise Law? 
Answer
: 
Viet Nam confirms this understanding. 
Question 21  
Enterprise Law, Article 3.2: Article 3.2 stipulates that where there are other laws providing 
regulations on establishment because of their di stinctive nature, those laws shall prevail. 
Could Viet Nam  indicate what are these other laws that are relevant for establishment of 
enterprises? 
Answer : 
This provision should be interpreted as such: in  case other laws (for example, the Law on Credit 
Institutions, the Law on Insurance Business etc.) pr ovide for specific regulations on the establishment 
of an enterprise in these sectors, such other laws shall prevail. 
Question 22 
Enterprise Law, Article 7: Could Viet Nam  confir m that the legal instrument referred to in this 
Article will be the implementing Regulations to th e Investment Law that will list the conditional 
and prohibited business sectors, and that no other legal instrument is foreseen for this purpose?  WT/ACC/VNM/44 
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  Answer : 
No.  The documents mentioned in this Article include the implementing decrees of the Law on 
Enterprise and/or the Law on Investment.  These decrees only stipulate the prohibited investment/business sectors and the conditional inv estment/business sectors as governed by the two 
laws.  In addition, other existing laws, ordinances and other legal documents may also regulate this 
matter (for example, the Law on Credit Institu tions, the Law on Insurance Business etc.). 
Question 23 
Enterprise Law, Article 20: It is noted that the investment certificate is a sufficient registration 
document for a foreign company having an investment project, and that there is no need to make a separate business registration in accordance with the Enterprise Law. 
Answer
: 
We take note of the comment. 
Question 24 
Enterprise Law, Article 37 – Representative offi ces and branches: What is the foreseen time 
table for the Government to issue regulations  on procedures and formalities for opening 
branches and representative offices in Viet Nam ?  
Answer : 
The procedures and formalities for opening branches and representative offices are provided for in the 
Decree on Business Registration which takes effect on 1 July 2006. 
Question 25  
Commercial Law, Articles 25 and 76 - goods and serv ices that are banned, restricted or subject 
to conditional business. 
- Can Viet Nam  indicate the lists of ba nned and restricted goods and services referred to 
in these Articles? 
- Can Viet Nam  confirm that the list of goods and services subject to conditional business 
is the same or identical to the implementi ng regulations of the Investment Law which 
will define the conditional business sectors, or whether additional legal provisions are 
foreseen in this area? 
Answer : 
- The list will be promulgated in the Decree guiding the implementation of Commercial Law 
on goods and services that are banned, restrict ed and subject to conditional business.  
-  Concerning the approach in drafting the list of goods and services subject to conditional 
business, it is somewhat identical to the list of  conditional investment sectors stipulated in 
Viet Nam's Investment law.  Both are relate d to some areas that are sensible or easily 
detrimental to Viet Nam's socio-economic lif e such as those affecting national defence, 
security, culture, education and training, etc.  However, the differences between the two are as 
follows: WT/ACC/VNM/44 
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   The list of goods and services subject to 
conditional business stipulated by the 
2005 Commercial Law  The list of conditional investment sectors 
stipulated by the 2005 Investment Law  
1. Basic 
background This Law regulates commercial activities 
in Viet Nam. This Law regulates investment activities 
in Viet Nam. 
2.  Name  The list of goods and services subject to 
conditional business The list of conditional investment sectors 
3.  Implication Applied to commercial activities (i.e. for 
profit making purposes) comprising 
purchase and sale of goods, provision of services etc. (Article 3.1 of the 
Commercial law). Applied to investors who uses capital in 
the form of tangible or intangible assets 
for the purposes of forming assets with which to carry out investment activities in 
accordance with the pr ovisions of this 
Law and other relevant laws (Article 3.1 of the Investment law) 
-  The Commercial Law of 2005 does not regulate "conditional business sectors".  It only 
regulates "goods and services subject to conditional business".  Goods and services subject to conditional business shall only be  permitted to be purchased or provided after a number of 
pre-specified conditions stipulated by the legal documents guiding the Commercial Law and 
other legal documents are fully satisfied.  
Question 26 
We note the entire section needs updating to ref lect new Laws on Enterprises and Investment.  
We suggest Viet Nam remove ol d/redundant material that may conflict with provisions of most 
recent laws.  We also request copies of all rele vant implementing regulations (whether in draft 
or promulgated form) be circulated to WTO Members, and also their provisions incorporated, 
where relevant, into this section and other se ctions of the report as appropriate.  
Answer
: 
Viet Nam has updated the section to reflect the ne w Law on Investment and Law on Enterprise.  Draft 
implementing decrees will be circulated to the Working Party as soon as  they are completed. 
Question 27 We note Table 1 ("Prohibited Business Secto rs") has been updated and now states a range of 
sectors where "Conducting Business" is prohibited .  We would ask that Viet Nam confirm in 
this section of the report if a "prohibited business sector" implies a prohibition on domestic business activities, as well as the import and export of such items.  If this is the case, we suggest 
that Viet Nam ensure consistency between this section and the section of the report that covers 
import prohibitions (e.g. Tables 11 and 12).  Viet Nam should outline very clearly what HS tariff 
codes (i.e. which chemical products) are subjec t to such prohibitions and which are not. 
Answer
: 
Yes, a "prohibited business sector" implies a prohi bition on domestic business activities, as well as the 
import of such items. 
There is a translation error here. "Toxic chemicals" in Item 2 of the Table 1 are actually "toxic 
materials" that are in the same grouping with expl osives and radioactive substances, those that have 
fatal effect.  Those prohibited products mentioned in  Table 11 and 12 correspond to Item 6 of Table 1 
which refers to "chemical substances of high toxicity".   WT/ACC/VNM/44 
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  The administration of toxic chemicals in Viet Nam,  both in domestic circula tion and importation, is 
fully in accordance with international conventi ons (i.e. the Stockholm C onvention on Persistent 
Organic Pollutants and the Convention on the Prohibition of the Development, Production, 
Stockpiling and Use of Chemical Weap ons and on their Destruction).  
Question 28  
We note the reference to "conditional business sect ors" and Viet Nam's  statement that it would 
develop a detailed list of "conditional sectors a nd specific conditions for each sector" to guide 
implementation of the new Investment Law.   
We suggest Viet Nam summarise the relevant provi sions of its new Investment Law in this 
section which relate to conditional sectors.  
We request that Viet Nam provide the relevant im plementing regulations re lating to conditional 
licences to the Working Party for examination, and reflect key provisions in this section.   
We request that Viet Nam provide a full and fi nal (as opposed to "illustrative") list of all 
conditional sectors subject to licensing, the exac t nature of these conditions, as well as specify 
the Government agencies from which various "c onditions" or "approvals" need to be met? 
Answer : 
The Law on Investment provides for the following c onditional investment sectors: (i) sectors having 
impacts on national defence, national security and soci al order; (ii) banking and finance; (iii) sectors 
having an impact on public health; (iv) culture, info rmation, press and publication; (iv) recreational 
services; (v) real estate; (vi) survey, prospecting, exploration and mining of natural resources; (vi) education and training. Besides, foreign invest ors are also subject to other investment conditions 
in line with Viet Nam's commitments in interna tional treaties to which Viet Nam is a member.  
Viet Nam is reviewing its business licensing system and the conditions for licenses to fully comply 
with the transparency obligation under GATS.  Info rmation on this matter will be made available as 
soon as it is completed. 
Question 29  
We refer to Articles 52.2 (a) and 104.3 of th e new Enterprise Law, which suggest that a 
minimum of 65 per cent of voting capital will be required to make all decisions of the highest 
decision making body of a limited liability or shareholding company and investors cannot choose a lower threshold. 
We request that Viet Nam confirm if this is corre ct, and if so, reflect this provision in the section 
of the report relating to the Enterprise Law (2005). 
We ask if Viet Nam will consider grandfathering  provisions to protect the position of current 
joint ventures which have a 51 per cent/49 per cent structure – and which made such investments on the understanding that this consti tuted a sufficient majori ty for most decision-
making purposes. 
Answer
: 
Unless otherwise provided in the charter of the en terprise, decisions of the members' Council in 
limited liability companies on matters stipulated in Article 52.1 or of the Board of Management in 
shareholding companies on matters stipulated in Article 104.2 of the Law on Enterprise (2005) shall WT/ACC/VNM/44 
Page 12  
 
  be adopted by voting during meetings of the member s' Council or of the Board of Management.  The 
minimum percentage of votes required to adopt such  decisions is provided for in Article 52.2 and 
Article 104.3 of the Law on Enterprise (2005), and in  a few cases more than simple majority is 
required for the vote to be passed.  
The issue of grandfathering has not been addresse d in the Law on Investment and could only be 
considered, if possible, in the implementing Decree of the Law on Investment. 
Question 30  
With references to paragraph 39 (WT/ACC/SPEC/VNM/5/Rev.2) and Viet Nam's new 
Investment Law, it appears there remain diff erences in treatment of foreign and domestic 
investors for registration purposes. 
In relation to paragraph 39, we ask that Viet Na m provide an explanation in this section as to 
how its commitment to eliminate discriminatory  provisions is consistent with the requirement 
that foreign investors undertake investment regi stration for any project, regardless of size, 
whereas local investors are only required to register projects if they exceed approximately 
US$ 1 million in size.   
Answer
: 
It is not relevant to compare the Investment Regi strations of Vietnamese i nvestors who have already 
possessed a Business Registration Certificate with t hose of foreign investors who have not yet a 
presence in Viet Nam.  Under the Law on Investme nt, foreign investors have to apply for an 
Investment Registration, and such a registration is  concurrently considered  as a Business Registration 
Certificate.  Thus, even though there is a differen ce in the investment registration procedures, the Law 
on Investment does not lead to a substantive di fference between domestic and foreign investors. 
Moreover, the evaluation procedures for the issuance of Investment Registration Certificates are uniformly applicable to both domestic and fore ign investors with investments in conditional 
investment sectors and having invested capital of VND 300 billion or more. 
Question 31  
With reference to paragraph 44 of WT/ACC/SPEC/VNM/5/Rev.2, we request Viet Nam clarify 
and list in the report, where unanimity is still required for decisions concerning joint-venture 
enterprises’ operations, under the new Enterp rise Law and other applicable Laws.   
Could Viet Nam confirm in the report that  there no longer exist any requirements for 
existing/future joint-venture partners or wholly foreign-owned enterprise s to sell compulsorily 
or otherwise transfer part or their entire share of a venture to a domestic or third party. 
Answer
: 
Viet Nam confirms as follows: - Under the Law on Investment and the Law on Enterprise, unanimity is not required for 
decisions of joint-venture enterprises; and 
- There no longer exists any requirements in th e above-mentioned laws for  existing/future 
joint-venture partners or wholly foreign-owne d enterprises to sell compulsorily or otherwise 
transfer part or their entire share of a venture to a domestic or third party.  WT/ACC/VNM/44 
 Page 13 
 
 
  Question 32  
On mining investment and with reference to paragraph 50 of WT/ACC/SPEC/VNM/5/Rev.2 of 
21 February 2006 and the recently amended Mining Law, we request that Viet Nam indicate in the report an explanation of the following issues: 
- What grounds exist for refusal of an investme nt licence if they are considered on a "case 
by case basis"? 
- What authority oversees investment projects in mining on such a basis? - What are the criteria for a decision? - What avenues for appeal exist if a licence is refused? - Are domestic firms also subject  to case-by-case consideration? 
Answer
: 
The approval or refusal of an investment licence in such case will be based on, among others, criteria 
as follows: (i) compliance with master planning /zoning for technical infrastructure, master 
planning/zoning for land use, master planning for construction, master planning for utilization of 
minerals and other natural resources; (ii) land use requirements; (iii) project implementation schedule; 
(iv) environmental solutions.  These regulations ar e uniformly applicable to both domestic and foreign 
investors.  The appeal process is in accordance with  Viet Nam's applicable laws (see the section on 
"Framework for making and enforcing policies"). 
Question 33  
We note that Article 40 of Decree No. 160/2005/ND-C P states that the "evaluation of investment 
projects for mining minerals in the case of FD I projects shall be implemented in accordance 
with the Law on Foreign Investment in Viet Nam".   
We request Viet Nam explain in the report how this evaluation will take place once the new 
Investment Law takes effect (and replaces the La w on Foreign Investment), and how this new 
Law will interact with the Mining Law 2005? 
Answer : 
The Law on Investment provides for the conditions and procedures for the issuance of Investment 
Registration, including investments in mining, wh ile the Mineral Law stipulates the mining activities 
of minerals and State management on this matte r.  Under the Law on Investment, the mining of 
minerals is a conditional investment sector.  Th e same procedures for evaluation and issuance of 
Investment Certificates apply to investments in this sector and investments in other conditional 
investment sectors.  
Question 34 We note that Article 46 of Decree No. 160/2005/ND-CP states that "prior to issuing an 
investment licence for mineral activities, the competent investment licence issuing body must 
obtain the written opinion of the competent mineral licence-issuing body". 
Can Viet Nam clarify in the report what issues such an opinion will cover? 
Answer
: 
The above mentioned regulation  aims to ensure th e close coordination between investment licensing 
agency and  the mining licensing agency and the mi ning licensing agency in appraising applications WT/ACC/VNM/44 
Page 14  
 
  for foreign investment licenses in the field of mi neral activities in Viet Nam, and to accelerate the 
process of issuing investment licenses and mineral licenses.  
The opinions in writing of the competent authority in  charge of issuing mineral licenses will have the 
aim to clarify whether the application for investme nt licence meet  the requirements for issuing the 
mineral licence according to the legislation on minerals.  
In particular, the competent in vestment licence issuing body gives opinion on, among other things, 
major issues as follows: (i) compliance with mast er planning/zoning for technical infrastructure, 
master planning/zoning for land use, master planni ng for construction, master planning for utilization 
of minerals and other natural resources; (ii) land use requirements; (iii) project implementation 
schedule; (iv) environmental solutions. These regulations are uniformly applicable to both domestic 
and foreign investors. 
- State-Owned, State trading enterprises / Privatization 
Question 35  This is another section that will need broad revis ion to reflect the changes that have been made 
by the same laws and implementing regulations me ntioned above.  In addition, we request that 
the title of this section be revised to clarify the section’s coverage.  In light of the extensive 
amount of State ownership that will remain in Viet Nam's  economy, we believe we will need 
strong commitment language addressing how State-owned and state-controlled firms will 
operate. 
Answer
: 
Viet Nam has updated the relevant section in th e Draft Working Party Report, including the number 
of SOEs equitized in different time periods (Table 6).  
The title of this section has already been revised  in accordance with th e comments from some 
Members of the Working Party. 
Question 36  
We propose the following commitment paragrap h to replace paragraphs 69 through 71 of the 
current draft: 
 70. The representative of Viet Nam confirmed that Viet Nam would ensure that all 
enterprises that were State-owned or state-controlled, including equitized enterprises in which the State had control, and enterprises with special or exclusive privileges would make purchases,  not for governmental use, and sales 
in international trade, based solely on  commercial considerations, e.g., price, 
quality, marketability, and availability, a nd that the enterpri ses of other WTO 
Members would have an adequate oppo rtunity in accordance with customary 
business practice to compete for participat ion in sales to and purchases from 
these enterprises on non-discriminatory term s and conditions.  In addition, the 
Government of Viet Nam would not influe nce, directly or indirectly, commercial 
decisions on the part of enterprises that are state-owned, state-controlled, or that 
have special and exclusive privileges, in cluding decisions on the quantity, value 
or country of origin of any goods purchased or sold, except in a manner consistent with the WTO Agreement and the rights accorded to non-
governmental enterprise owners or shareh olders.  The Working Party took note 
of these commitments.  WT/ACC/VNM/44 
 Page 15 
 
 
   71. The representative of Viet Nam confirmed that, without prejudice to Viet Nam’s 
rights with respect to government procu rement, all laws, regulations and other 
measures relating to the purchase or sale  of goods and services, by enterprises 
that are state-owned, state-controlled, or that have special or exclusive privileges, that are for commercial sa le, production of goods or supply of 
services for commercial sale, or for non-governmental purposes would not be 
considered to be laws, regulations and measures relating to government 
procurement.  Thus, such purchases and sales would be subject to the provisions of Articles II, XVI, XVII of the GATS and Article III of the GATT 1994.  The Working Party took note of these commitments. 
We will also need to review the factual portion of  the text to ensure its coherence, in particular 
with the section on privatization. 
Answer
: 
We can agree with the following text:  70. The representative of Viet Nam confirmed that Viet Nam would ensure that all 
enterprises that were State-owned or stat e-controlled, including equitized enterprises 
in which the State had control, and enterp rises with special or exclusive privileges 
would make purchases, not for governmental u se, and sales in international trade, 
based solely on commercial considerations , e.g., price, quality, marketability, and 
availability, and that the enterprises of ot her WTO Members would have an adequate 
opportunity in accordance with customary business practice to compete for 
participation in sales to and purchases from these enterprises on non-discriminatory 
terms and conditions.  In addition, the Gove rnment of Viet Nam would not influence, 
directly or indirectly, commercial decisions  on the part of enterprises that are state-
owned, state-controlled, or that have sp ecial and exclusive privileges, including 
decisions on the quantity, value or country of origin of any goods purchased or sold, 
except in a manner consistent with the WTO Agreement and the rights accorded to 
non-governmental enterprise owners or sh areholders.  The Working Party took note 
of these commitments. 
 71. The representative of Viet Nam confir med that, without prejudice to Viet Nam’s 
rights with respect to government procur ement, all laws, regulations and other 
measures relating to the purchase or sale of goods and services, by enterprises that are 
state-owned, state-controlled, or that have special or exclusive privileges, that are for 
commercial sale, production of goods or supply of services for commercial sale, or for 
non-governmental purposes would not be cons idered to be laws, regulations and 
measures relating to government procurem ent.  Thus, such purchases and sales would 
be subject to the provisions of Articles II, XVI, XVII of the GATS and Article III of 
GATT 1994.  The Working Party took note of these commitments.  
Question 37  
Privatization: This section needs to be revised to reflect changes in the same laws mentioned 
above and other relevant factors.  We have the following questions. 
- Of the three classifications of State-owned enterprises, what is the percentage of the 
total represented by each group, i.e., wh at percentage of enterprises will remain 
100 per cent State-owned and will not be eq uitized?  (Prime Minister's Directive 
No. 20/1998/CT-TTg of 21 April 1998 and paragraph 75, WT/ACC/SPEC/VNM/5/Rev.2) WT/ACC/VNM/44 
Page 16  
 
  - What is the process or procedure the Prime Minister or Chairmen of the People's 
committees must undertake to decide whether to equitize State-owned enterprises listed 
in Group 1? (Enterprise Law and par agraph 75, WT/ACC/SPEC/VNM/5/Rev.2) 
- Who determines, and how is it decided, that an enterprise should be in Group 2 
(enterprises in which the State would retain cont rolling shares) because it is "vital to the 
economy?"  What is the definition for an en terprise that is "vital to the economy?"  
(Directive No. 20/1998/CT-TTg of 21 April 1998 and Paragraph 75, WT/ACC/SPEC/VNM/5/Rev.2) 
- Of the 2,242 equitized firms, what proportion  have experienced changes in their boards 
of management since equitization? (paragraph 77, WT/ACC/SPEC/VNM/5/Rev.2). 
Answer
: 
Viet Nam has updated this section in the Working Party Report.  -  Directive No. 20/1998/CT-TTg was replaced with Decision No.155/2004/QD-TTg dated 
24 August 2004 of the Prime Minister. Therefore, all the provisions of Directive No. 20/1998/CT-TTg had been repealed.  As for the number of enterprises which the State 
holds 100 per cent capital: 
 - As of the end of 2006, the num ber will be around 1,800 enterprises; 
 - In accordance with the provisions of Decision No.155/2004/QD-TTg and the plans on 
restructuring SOEs of ministries, localities and corporations up to the year of 2007, the number of enterprises which the State holds 100 per cent capital will be around 1,500.  It will be further reduced in the following years and will be restricted only to 
the areas of national security and some large corporations. 
-  Based on the provisions as set out in Decision No. 155/2004/QD-TTg, Ministries and 
provincial-level people's committees will work out  the plan to restructure enterprises under 
their authority in which they will make the d ecision concerning whether the enterprise fall 
under Group 1 or 2.  After completion, they would submit their plans to the Prime Minister 
for approval.  As for SOEs which establishment decisions were made by the Prime Minister, 
its equitization will be decided by the Prime Mi nister based on the proposals by their Boards 
of Directors. 
- "Enterprises that are vital to the economy" are (1) those which have large scale, make large 
contribution to the State budget, leading in a pplication of high technology and play the 
important role in stabilizing the economy; an d (2) enterprises which ensure essential demand 
for development of production and improvement of lives of ru ral, mountainous and ethnic 
minority areas. 
-  Currently, there is no data on the changes in the boards of management of equitized 
companies since equitization.  However, most equitized firms have experienced changes in 
their boards.  
Question 38   Who are the members of the steering co mmittee for equitization? (Paragraph 79 
WT/ACC/SPEC/VNM/5/Rev.2, Circular No. 126/2004/ TT-BTC of the Ministry of Finance of 
24 December 2004 on the implementati on of Decree No. 187/2004/ND-CP).  WT/ACC/VNM/44 
 Page 17 
 
 
  Answer : 
A steering committee for equitization has up to 5 members, including:  -  The leader of the agency which issued the d ecision on equitization or an authorized person 
(i.e. the leaders of ministries, people’s committees of provinces and cities); and 
-  Representatives of leaders of relevant units  of the agency deciding the equitization;  
-  Directors of the equitized company.  
In case of equitization of a general corporation, a lead er of Ministry of Finance will also be included. 
Question 39 
The current model allows "strategic domestic  investors" and employees to purchase up to 
80 per cent of an equitizing firm at a discount price.  They are then required to hold these 
shares for a minimum of three years from the date of the initial auction.  In establishing this 
system, has Viet Nam considered the possibilit y that expectations could evolve among 
shareholders?  For instance, at year 2.5 there coul d be a fear that a massive sell-off will occur at 
the three year mark.  Those with the ability to se ll would all want to do so, driving the share 
price towards zero.  What are Viet Nam's  views on this scenario? 
Answer
: 
The requirement for strategic shareholders and employees to hold shares for a minimum of 3 years is 
to ensure that such persons perform the obligations  of founding shareholders and it is linked with the 
purchase of shares at a discount price during equitizati on.  At the three year mark, there might be the 
transfer of shares among shareholders or between sh areholders and stock investors.  However, there 
have been no massive sell-off which drives sh are price towards zero, because after equitized 
enterprises are expected to perform better after eq uitisation.  Another reason is strategic investors 
normally have long-term targets a nd would be engaged with the long -term development of the firm. 
Question 40 
(Paragraph 80 WT/ACC/SPEC/VNM/5/Rev.2) In the process of identifying domestic agents who 
are eligible for "strategic domestic investor " are there specific, non-qualitative criteria for 
determining who is eligible?  Is there a limit on th e percentage of shares that can be awarded to 
any single strategic investor?  
Answer : 
There are general criteria to demonstr ate that such investors have long-te rm interests in the enterprise.  
For example, they include: manufacturers and frequent  suppliers of inputs to the enterprise, those 
committed to purchase the enterprise's product over a long period; those who had long-term strategic 
interest in the enterprise's products; and those who ha d a long-term strategic interest in the enterprise's 
business operation and possessed financial potential and management expertise.  There is no 
requirement on the minimum percentage of shares  held by a strategic domestic investor. Such 
percentage is to be decided by each enterprise.  
Question 41 
We take note of the brackets in paragraph 88 of the draft Working Party Report, and renew 
our request that Viet Nam accept commitment la nguage for this section that will provide 
transparency on an ongoing basis to its equitization process. WT/ACC/VNM/44 
Page 18  
 
  Answer
: 
Viet Nam accepts the substance of the commitmen t language as referred to paragraph 88 and would 
like to propose the language as follows:  
"The representative of Viet Nam confirmed that from the date of accession, Viet Nam would provide 
WTO Members with annual reports on the status of its programme on equ itization and reform of 
equitised enterprises that the Stat e maintains a majority equity as long as the programme would be in 
existence.  The Working Party took note of this commitment." 
Question 42 
In this regard, we draw attention to the pr ovisions of the Enterprise Law that mandate a 
four-year window during which most State-owned firms are expected to be equitized and the 
fact that the State can maintain a majority equi ty share in an "equitized" firm.  Under these 
circumstances, it is important that Viet Nam re port on both equitization and privatization. 
Answer : 
Viet Nam would report both the equitisation and the reform of equitised enterprises that the State 
maintains a majority equity. 
Question 43  We welcome additional material in paragra ph 59 of WT/ACC/SPEC/VNM/5/Rev.2 on public 
goods and services.  We would recommend that th e word "services" be added in the sentence 
that reads "Enterprises supplying public goods a nd services could import goods and services to 
produce such public goods and services."   
We request that Viet Nam reflect in the report the key principles of detailed procedures being 
developed in relation to the supply of such public goods and services. 
Answer
: 
Viet Nam is agreeable to the pr oposal to add the word "services". 
Investments in the production and supply of public  services are subject to  the Law on Investment, 
thus, the same procedures apply to such investment projects and other investment projects.  
Detailed procedures will be provided when they are completed. 
Question 44  
We request that Viet Nam confirm in this sectio n of the report whether the evaluation process 
of Vietcombank has been completed as scheduled (31 December 2005), and provide an update on the equitisation process of Vietcombank includ ing intended timing and volume of share sales.  
We also request the same information in rel ation to the Mekong Housing Bank process. 
Answer
: 
- Equitization program for State-owned Commerc ial Banks (SOCBs) in Viet Nam has been 
initiated since 2004.  WT/ACC/VNM/44 
 Page 19 
 
 
  -  The Bank for Foreign Trade of Viet Nam (Vietcombank) and Mekong Delta Housing Bank so 
far have completed the preparation works fo r stock-taking and checking assets, outstanding 
debts and resolving financial issues before  making bank valuation.  Vietcombank and 
Mekong Delta Housing Bank have recruited international consulting agencies to conduct the 
valuation and provide consultancy on the Initia l Public Offers (Intellectual Property O).  
Question 45  With reference to paragraphs 80-82, Decision No . 36/2003/QD-TTg permits a foreign investor to 
purchase up to 30 per cent of the charter capital of a Vietnamese enterprise in permitted sectors 
of industries and trades.  The list of permitted sectors was to be decided jointly between the 
Prime Minister and the Minister of Planning and Investment and published from time to time. 
Since the issuance of Decision No. 36 in 2003,  we understand no such list of permitted sectors 
has been published.    
We would request Viet Nam indicate in the repo rt the permitted sectors under Decision No. 36 
and indicate whether Decision No. 36 will remain valid after 1 July 2006. 
We request that Viet Nam indicate in the report if  foreign investors will have the right to invest 
in existing local companies up to 30 per cent (a s per Decision No. 36), or whether the regime will 
be abolished so that entry will be regulated via the licensing system introduced as part of the 
new Investment Law? 
Answer
: 
The list of sectors in which foreign investors are permitted to purchase shares of Vietnamese 
enterprises under Decision No. 36 has not been prom ulgated.  Thus, the permitted list mentioned in 
paragraph 81 of WT/ACC/SPEC/VNM/5/Rev.2 is still in effect.  
Decision No. 36 will terminate its effect as from 1 Ju ly 2006.  The purchase of shares of Vietnamese 
enterprises by foreign investors will be subject to the Law on Investment and its implementing regal 
documents.  
Question 46   
Also with reference to paragraphs 80-82, th e Decree No. 187/2004/ND-CP "On Equitization" 
treats domestic and foreign investors differentl y.  Domestic investors are allowed to be 
"strategic investors", where foreign investo rs are not.  We would request that this 
differentiation between domestic and foreign inv estors with regard to the purchase of strategic 
ownership stakes be replaced with equal treatment. 
Answer : 
Viet Nam confirms that any rules on "strategic i nvestors" it may have would be in accordance with 
Viet Nam's WTO obligations. 
Question 47  Article 6 refers to the sectors in which new State companies may be established, including 
"industries and sectors which have a high co mpetitive advantage, " as defined by the 
government in its plans for restructuring and deve loping State companies.  Further, Article 87 
(2) refers to the Government’s role in the form ulation of master plans and strategies for the 
development of State companies.  These provisions appear to envision an expansionist role for WT/ACC/VNM/44 
Page 20  
 
  SOEs in Viet Nam's  economy, beyond that which is needed to develop Viet Nam's capabilities 
in areas or markets where private enterprises are unwilling to invest.  
- Please reconcile this policy to cultivate a nd expand the State-owned sector with the 
general principle that the government intends to  allow the market to allocate Viet Nam's  
scarce resources.  
- Please elaborate on the policy tools, such as tax or investment incentives that Viet Nam 
intends to implement to ensure that SOEs are competitive. 
Answer
: 
-  The purpose of Article 6 of the Law on State-owned Enterprises is to restrict the 
establishment of new SOEs, not to enlarge the SOE sector in Viet Nam.  It does not conflict 
with Article 87.2 of the law.  The definition "master plans and strategies for the development 
of State companies" should be understood to be the restructuring of the SOE sector and alignment of SOEs into sectors provided for in Article 6 of the Law "On State-owned 
Enterprises".  It does not aim to develop or expand the SOE sector.  This is also in line with 
the reform process of enterprises currently undert aken in Viet Nam, which has resulted in a 
narrower SOE sector, and in the meantime, a larger number of private and foreign invested 
enterprises. 
-  That intention is demonstrated by the fact that currently, tax policies, investment incentives 
and labour, credit, import and export policies ar e uniformly applicable to both State-owned 
and private enterprises.  From 1 July 2006, St ate companies must be transformed into limited 
liability or shareholding companies operating under the Law on Enterprise.  After four years, 
from 1 July 2010, SOEs will no longer be subj ect to the Law on State-owned Enterprises. 
Question 48  
Article 12 (3) states that the Government shall provide guidelines on the valuation of land-use 
rights for use asset valuation for the State companies as a whole.  
- On what basis will the Government measure land-use rights’ value?  
- Will these standards also apply to private enterprises? Answer
: 
The valuation of land-use rights for use in asset va luation of enterprises is subject to the Land Law 
and the Government’s regulations on a price bands that  are constructed according to the type of land,  
the region, the period, and the land-use purpose.  Based on such price bands, local authorities will 
stipulate land prices in detail.  This procedure has onl y been used in the calculation of land rental of 
enterprises and is uniformly applicable to both State-owned and private enterprises.  
Question 49 
Article 15 allows State-owned companies to make independent decisions on investment projects 
as well as prices for sales and purchases.  We also note that Article 64 states that the State owner shall "ensure the business autonomy and no t directly interfere in the business operations 
of the company."  However, State-owned comp anies are nevertheless subject to "supervision 
and inspection" by the State owner, including decisions regarding certain investment projects 
(Article 65).    WT/ACC/VNM/44 
 Page 21 
 
 
  - What specific safeguards are being implem ented to ensure that the State does not 
interfere directly in the business operations of the State company (in ways other than available to a normal shareholder), such that it could influence a State-owned company to make decisions on production or sales on a non-commercial basis?  
- What happens if the State owner influences the decisions on  the company’s business 
operations in a manner not authorized under the law?  Will sanctions be applied if a 
State-appointed board member  or membe rs take actions for political or corrupt 
reasons rather than based on commercial considerations? 
Answer
: 
The phrase "supervision and inspection" by the Stat e over State-owned companies might have been 
misinterpreted.  The supervision and inspec tion under Article 65 of the Law on State-owned 
Enterprise means the supervision of enterprises in the performance of their objectives (for example, 
the production and supply of public goods and services, the compliance with the laws, the effective 
use of investment capital and so on).  The in spection aims at classifying enterprises, based on 
operational effectiveness, for the purpose of awards or penalties, in particular for the enterprises' 
management.  
State agencies are required to ensure business au tonomy and self-responsibility of the enterprises.  
Question 50  
Article 15 states that State companies shall have th e right to "formulate and apply labour rates, 
material rates and wage unit prices" independently.   
Aside from a minimum wage, will State-owned comp anies be subject to any administratively-set 
wage scale? 
Answer : 
On the basis of the minimum wage regulations, cont ributions of employees, and the companies’ wage 
and allowance regime, State-owned companies de cide on their own the wage payment to each 
employee.  The Government does not interfere in the wage payment of enterprises.  The wage and 
allowance regime are decided by enterprises independ ently in line with the Labour Code and are used 
by enterprises as the basis for wage decisions in labour contracts, wa ge unit prices, wage promotions 
of employees. 
Question 51 
Article 26 states that directors’ salaries shall "c orrespond to the operational effectiveness of the 
company."  However, Article 64 also provides th at the State owner shall "provide regulations 
on the regime on wages to the chairman and members of the board of management, and the 
general director or director of State companies."   
Will management wages be administratively-set or depend on the profitability of the company? 
Answer : 
The salaries of directors are also subject to the above-mentioned principles, i.e. based on the 
minimum wage regulations, contributions of the managers in the form of profitability of the 
enterprises, and the wage scale and allowance regi me of the company which are in line with the WT/ACC/VNM/44 
Page 22  
 
  Labour Code and used by the enterprises as the ba sis for wage decisions and wage promotions of 
managers.  
III. FRAMEWORK FOR MAKING AND ENFORCING POLICIES 
Question 52 This section also needs some revision to refle ct enactment of the new Law on Complaint and 
Denunciation and the anticipated enactment of the Ordinance on Procedures for Settlement of 
Administrative Disputes.  These new laws have significantly changed and improved the 
circumstance of Viet Nam's  policy-making framework. 
Answer
: 
The Law on Amendments of and Additions to so me provisions of the Law on Complaints and 
Denunciation was passed by the National Assembly  of the Socialist Republic of Viet Nam on 
29 November 2005 and is going into fo rce on 1 June 2006. The Ordinance 
No. 29/2006/PL-UBTVQH11 on the Amendments of and Additions to some provisions of the 
Ordinance on Procedure for Resolving Administ rative Disputes was passed by the National 
Assembly's Standing Committee on 5 April 2006 and is  going into force on 1 June 2006.  These new 
legislations have added and am ended many provisions on complain t, denunciation of administrative 
decisions, administrative conducts by administ rative bodies and commencement of court action 
against administrative decisions and conducts. 
Those amendments and additions are protecting the people’s right, increasing State administrative 
bodies’ accountability, clarifying procedures for resolving complaints, extending the right to bring 
action against administrative decisions and bodi es in court and strengthening public awareness and 
transparency in the course of r esolving complaints and administra tive proceedings, and at the same 
time meeting requirements by WTO concerning complaints and appeals.  
The corresponding section of the Draft Report has been updated of these changes. 
Question 53 
We welcome Viet Nam's  adoption of the Law on Complaint and Denunciations in 
December 2005, and an ordinance on procedures for settlement of administrative disputes has 
now been submitted to the National Assembly for approval.  We seek an indication in the Working Party report of the details of this ordinance once adopted. 
Answer
: 
The Ordinance No. 29/2006/PL-UBTVQH11 on the Amendments of and Additions to some 
provisions of the Ordinance on Procedure for Re solving Administrative Disputes (the Amended 
Ordinance) had been approved by the Standing Committee of  the National Assembly on 
5 April 2006, ratified by the president on 27 Ap ril 2006 and come into force on 1 June 2006. 
This revised ordinance has widen ranges of case with in the jurisdiction of the Court (Article 11 of the 
Amended Ordinance is in accordance with WTO rules) . Under which, the Court has the authority to 
settle disputes concerning issues such as: 
(i) Cases on administrative decisions, administ rative actions on issuance or withdrawal of 
licenses for capital construction, production, business; or professional and business registrations or other administrative decisions , actions concerning ope rational and financial 
activities of businesses;  WT/ACC/VNM/44 
 Page 23 
 
 
  (ii) Cases on administrative decisions, administrativ e actions relate to international or domestic 
trade in goods; 
(iii) Cases on administrative decisions, administ rative actions on requisition, compulsory buy, 
appropriation; 
(iv) Cases on administrative decisions, administ rative actions on taxation, tax collection, tax 
recovering; 
(v) Cases on administrative decisions, administra tive actions on application of charges, fees; 
collection of land using fees; 
(vi) Cases on administrative decisions, administ rative actions on governmental management of 
intellectual property rights and technology transfer; 
(vii) Cases on administrative decisions, administ rative actions on governmental management of 
investment; 
(viii) Cases appeal against d ecisions on competitive activities; 
(ix) Cases on administrative decisions, administ rative actions of customs organizations and 
authorities; and 
(x) Other cases as stipulated in Viet Nam's laws a nd in international treaties to which Viet Nam is 
a member. 
Besides, the Ordinance had provided concrete ru les concerning procedures, sequences and proceeding 
to settle administrative cases at the Court in  straightforward and transparent manners. 
In general, amendments to the Ordinance are in  conformity with revised Law on Complaint and 
Denouncement 2005  and relating rules of WTO. 
An unofficial English translation of the Am ended Ordinance is available through document 
WT/ACC/VNM/44/Add.1. 
IV. POLICIES AFFECTING TRADE IN GOODS 
- Trading Rights Question 54 
We note the positive changes to this section and in Table 8.   Answer
: 
We thank the Member for the comment. 
Question 55 
This section should be revised to reflect ch anges in the same laws mentioned above and 
implementing decrees that are currently being drafted. 
Answer : 
Viet Nam has updated this section.  
Question 56 
Paragraph 128 onwards. General comment: this section needs to be redrafted completely to 
reflect the contents of the new legislation – it now explains the system based on the old 
legislation, which is confusing. WT/ACC/VNM/44 
Page 24  
 
  Answer
: 
We have updated the section in accordance with the Commercial Law.  
Question 57 
We note as well our continuing concern that the right to import requires investment in 
Viet Nam.  We believe that such a requireme nt creates unjustified barriers to trade that are 
inconsistent with the requirements of GATT 1994.   
Answer : 
The right to import only requires a minimal investme nt in Viet Nam, mainly for the purpose of 
administration (for example, to make sure that importers comply with generally applied rules on 
import and tax obligations).  They are no t intended to create a barrier to trade. 
Question 58 We are willing to discuss requirements to engage in  activity limited to importation, such as 
registering as an importer of record and complia nce with SPS, TBT, import licensing and other 
requirements, that are short of a requirem ent to establish/invest in Vietnam. 
Answer
: 
As indicated, we are mainly concerned with en suring the importer's compliance with Vietnamese 
laws.  Therefore, we are willing to discuss in orde r to find a solution that meets both the interest of 
WP Members and our concern.  
Question 59 
We appreciate the consolidation of Table 8(a), but would appreciate a further reduction in the 
number of items covered by the transition peri od.  We remain concerned about trade in goods 
reserved to State trading and would welcome hearing Viet Nam's  intentions concerning 
reduced use of State trading and its eventual elimination, over time.   
Answer : 
Viet Nam has further reduced the items covered by  the transitional period as shown in the revised 
Table 8.  
Viet Nam only maintains State trading for a few products as listed in Table 8(c) - 
WT/ACC/SPEC/VMN/5/Rev.2 and has committed to ensure that the activities of State trading 
enterprises will comply with WTO rules, in cluding Article XVII of GATT 1994 and the 
Understanding on the interpre tation of this Article.  
Question 60 
If Viet Nam does intend to reduce and/or elimin ate State trading in its economy, please describe 
the processes Viet Nam would use to achieve this goal.  
Answer : 
Viet Nam only maintains State trading for a few products as listed in Table 8(c) - 
WT/ACC/SPEC/VMN/5/Rev.2 and has committed to ensure that the activities of State trading  WT/ACC/VNM/44 
 Page 25 
 
 
  enterprises will comply with WTO rules, in cluding Article XVII of GATT 1994 and the 
Understanding on the interpre tation of this Article.  
Question 61 
In its answer to Question 94 (WT/ACC/VNM/41), Viet Nam quotes the forms of enterprises 
allowed to operate in Viet Nam.  Why do es the Law on Enterpri ses contain 100 per cent 
foreign-owned capital as one of the possible forms while another Article in the same law 
stipulates that enterprises with foreign owned capi tal shall be deemed to be Vietnamese business 
entities? Moreover, we did not recognise any Arti cle in this law which clearly explains how a 
previously "foreign-owned enterpri se" becomes a Vietnamese company. 
Answer : 
The Law on Enterprise only expands its governin g scope to contain 100 per cent foreign owned 
enterprise as one of the possible form s of enterprises allowed to register and operate in Viet Nam.  
There is no specific provision in the Law which sti pulates that 100 per cent foreign owned enterprises 
shall be deemed as Vietnamese business entities. 
Question 62 
Viet Nam provided an answer to our Question 95.  We unfortunately have to  say that we are not 
satisfied with the answer.  The answer "these rules will be developed so as to envision 
Viet Nam’s commitments under the WTO."  You mention that decrees providing for detailed 
rules on trading rights are being drafted. We wo uld like to either request Viet Nam to provide a 
summary of these decrees or provide for a detailed answer to Question No. 95.  In addition, we wish to see a detailed commitment covering the i ssues raised in this question in the Working 
Party Report. 
Answer
: 
The draft Decree has been provided to the Working Pa rty for reference.  Once the Working Party had 
agreed on the commitment language for trading right s, Viet Nam will officially promulgate the 
Decree to that effect.   
Question 63 Paragraph 142 WT/ACC/SPEC/VNM/5/Rev.2 and Question 100 of  WT/ACC/VNM/41. We welcome Viet Nam's proposal to grant all en terprises with foreign direct investment full 
trading rights no later than 1 January 2007, except for products subject to State trading.  We also welcome the reduction of the list of products were trading rights are granted only later, in 
2009.  We consider these as important steps in th e rights direction.  We, however, note that 
trading rights for pharmaceutical products, print machinery and TV and video camera 
recorders will only be granted as of 2009. 
We would therefore urge Viet Nam to equalise t reatment of foreign and domestic enterprises as 
regards trading rights upon accession and as regards  all products allowed to be exported from 
and imported to Viet Nam.  WT/ACC/VNM/44 
Page 26  
 
  Answer
: 
Viet Nam has further reduced the items covered by  the transitional period as shown in the revised 
Table  8 (see Annex III).  The remaining trans itional period are genera lly very short (until 
1 January 2009). 
Question 64 
Given changes in legislation in this area, we re quest a thorough update of this section in relation 
to procedures required for a foreign company to  obtain an investment/business licence for the 
purposes of engaging in import and export.  In particular, we understand the draft implementing regulations of both the Comme rcial Law 2005 and Investment Law 2005 will 
regulate applications for business in this sector. 
We request details about the process, and confir mation they are no more restrictive than those 
required for domestic enterprises. 
Answer
: 
We have updated the section in accordance with the Commercial Law.  The procedures for the establishment of foreign inv ested companies which specialize in trade in goods 
and other activities directly related to trade in goods  in Viet Nam are not more restrictive than those 
applicable to wholly domestic enterprises in acco rdance with Viet Nam's commitments on trading 
rights. 
Question 65 
With regard to paragraph 142 of WT/ACC/SPEC/VNM/5/Rev.2, we request Viet Nam adopt 
commitment language in the report as follows: 
"Viet Nam agreed that any foreign individual or  foreign-invested enterprise that obtains a 
licence to engage in import activities will be free to select a distributor or distributors of their choice for the internal distribution of imports.  Viet Nam will not apply any restrictions on the choice of distributor or distributors, including in relation to the type of enterprise or nationality 
of the distributor.  The Working Party took note of this commitment." 
Answer
: 
The draft Decree guiding the implementation of the Commercial Law on foreign invested enterprises 
specializing in trade in goods and other activities di rectly related to trade in goods in Viet Nam 
provides that "The right to import is the right to import goods from foreign countries into Viet Nam for the purpose of selling to dealers who have the rights to distribute the goods in Viet Nam …". 
Therefore, Viet Nam does not intend to impo se any restrictions on the rights to choose the 
distributors, provided that the distributors are allowed to distribute the goods in Viet Nam.  
Question 66 
We welcome Viet Nam's improvements in proposed commitments, but continue to seek full 
trading rights applied upon accession to any legal or natural person.  WT/ACC/VNM/44 
 Page 27 
 
 
  Answer : 
We take note of this comment and are willing to di scuss with the interested  Members of the Working 
Party. 
Question 67 
We note that paragraph 134 of WT/ACC/SPEC/VNM /5/Rev.2 continues to  make reference to a 
number of trading rights limitations (on both ex port and import) which are given effect through 
conditions of investment licences.  We request  Viet Nam update this section to reflect the 
current legislative situation – in particular, the removal of foreign exchange balancing TRIMs within licences. 
Answer
: 
The Law on the Amendment of and Addition to some Articles of the Law on Foreign Investment 2000 
already abolished the foreign exchange balanci ng requirement.  Investment licenses granted after 
2000 are not subject to this requirement.  In a ddition, Viet Nam is going to issue the Decree on 
guiding the implementation of the Commercial La w concerning representative offices and foreign 
traders' branches in Viet Nam, in which there is  no foreign exchange balancing requirement for 
exports and imports of foreign traders' branches. 
Question 68 
We also note paragraph 134 of WT/ACC/SPEC/ VNM/5/Rev.2 continues to refer to export 
limitations on foreign-invested enterprises includi ng in relation to "certain exports specified by 
the Ministry of Trade for particular periods".  We seek an explanation from Viet Nam in the report on how these export limitations have been addressed within Decree No. 24/2000/ND-CP 
or new legislation? 
Answer
: 
Paragraph 134 refers to the old re gime which will be replaced by the provisions of the implementing 
Decrees of the Commercial Law that would be in  accordance with Viet Nam's commitments on 
trading rights. 
Question 69 We still have concerns with paragraph 136 of WT/ACC/SPEC/VNM/5/Rev.2 and the fact that 
foreign-invested firms can not import goods of  the same kind they produced under their 
investment licence.  We request that Viet Nam update this paragraph by indicating how new 
legislation has removed such limitations. 
Answer
: 
The concern raised in paragraph 136 would be  addressed by Viet Nam's commitments on trading 
rights. 
Question 70 
We note Viet Nam's explanation in the recent Working Party that where it has reserved rights 
for STEs (i.e., Table 8(c)), wholly-invested Viet namese enterprises that are not considered STEs 
will not enjoy trading rights in relation to those products subject to STEs.  The current draft of 
Table 8 does not make this clear.  Point 1,  for example, suggests that wholly-invested WT/ACC/VNM/44 
Page 28  
 
  Vietnamese companies enjoy unlimited trading rights, regardless of the existence of STEs.  We 
suggest that Table 1 be amended under Point 1 to read: 
 "Viet Nam confirms that wholly Vietnamese-invested enterprises have been granted full 
right to trade since 1 January 2002, except in relation to those products subject to State 
trading enterprises (as listed in the attached Table 8(c))." 
Answer
: 
We agree with the amended text.  We would also like to note that Point 7 of Table 8 has already 
provided that the trading rights shall not affect the rights of Viet Nam to adopt, inter alia , regulations 
in accordance with Viet Nam's commitments on State trading. 
Question 71  
In relation to Table 8 more generally, we ask Viet  Nam to ensure that references to "Tables 1, 2 
and 3" in this Table remain correct.  In partic ular, "Table 3" in this version of the report 
concerns "Statistics" and not "STEs". 
Answer : 
We take note of the comment. A. IMPORT REGULATIONS - Tariff rate quotas, tariff exemptions Question 72 Please provide further information in the text on Viet Nam's intensions to use TRQs and 
information on how they will be administered.   
- For example, will licensing be used?   
- How will the provisions on transparency  and timelines in the WTO Agreement on 
Import Licensing Procedures be observed? 
- How will in-quota quantities be allocated?   
Answer
: 
Regulations on TRQ administration on imported salt, unmanufactured cigarette and eggs are provided 
for in Circular No. 04/2006/TT-BTM dated 6 April 2006 of the Ministry of Trade guiding Decree 
No. 12/2006/ND-CP dated 23 January 2006 of the Government. 
For sugar, the Ministry of Trade continues appl ying the import licensing regime in accordance with 
Decision No. 19/2006/QD-BTM dated 20 Apr il 2006 until the date of accession.  
All licensing applied within the TRQ regime will observe WTO's rules, including the WTO 
Agreement on Import Licensing Procedures. 
The quota quantities are allocat ed in accordance with Viet Nam's Offer on TRQs.  WT/ACC/VNM/44 
 Page 29 
 
 
  Question 73 
Paragraphs 167-168 of WT /ACC/SPEC/VNM/5/Rev.2:  This text should be updated in light of 
the new Investment Law.  In particular, have the tariff exemptions described in this paragraph 
continued under the new Law? 
We support the commitment in paragraph 170. 
Answer : 
Viet Nam has updated these paragraphs in  light of the new Law on Investment.  
Viet Nam agrees with the commitment in paragraph 170. 
Question 74 
We note that paragraphs 162-163 of WT/ACC/SPEC/VNM/5/Rev.2 still contain some 
fundamental concerns to us which have not been  addressed.  In relation to these paragraphs we 
suggest the following additional commitment language: 
 x. "The representative of Viet Nam confirmed that from the date of accession, it 
would refrain from using auctioning as a method of TRQ allocation, would not determine TRQ allocations with reference to their form of business registration, 
levels of domestic product or export, or  on the condition that the importer limit 
use of such imports for use in its own production.  Viet Nam confirmed it would not limit an importer’s rights in relat ion to the internal sale, purchase or 
transfer of allocated quantities to other parties.  The Working Party took note of this commitment." 
Answer
: 
According to Viet Nam's latest Offer on TRQ,  Viet Nam would apply three methods of TRQ 
administration.  As such, auctioning is no t referred to a method that would be used.  
Viet Nam has committed to observe all WTO's applicable  rules in the allocation of TRQ.  In addition, 
Viet Nam will observe its commitments provided in  its TRQ Offer, as supplemented by the bilateral 
agreements with all the interested Members of the Working Party, as from the date of accession. 
Question 75 In relation to the TRQ applied on sugar, we seek  further information in relation to the quota 
mechanism to be utilised and administrative arrangements upon accession.  
Answer
: 
Concerning sugar (HS 1701), the Ministry of Trad e continues applying the import licensing regime in 
accordance with Decision No. 19/2006/QD-BTM date d 20 April 2006 until the date of Viet Nam's 
accession. As from the date of accession, Viet Nam would apply the TRQ on sugar in accordance with 
its Offer on TRQ, as supplemented by the bilateral ag reements with all the interested Members of the 
Working Party. 
Question 76 
As to the administration of quotas, we wish to see Viet Nam make the following declarations: WT/ACC/VNM/44 
Page 30  
 
  (a) That the administration of tariff quotas  will be carried out in accordance with WTO 
rules, specifically excluding the auction method , as it is contrary to the principles of 
transparency and interferes with th e bound tariffs in the Schedules. 
(b) Clarification is also in order concerning Government quota allocation method B 
(paragraph 164 of document WT/ACC/SPEC/VNM/5/Rev.2).  The allocation of quotas 
by the State is inconsistent with the requi red transparency and predictability in quota 
administration.  Viet Nam states that it do es not agree that the allocation of quotas by 
the Government is inconsistent.  Quota administration must be transparent and predictable, and there are methods that guarantee this, for instance the more widely-accepted methods based on commercial considera tions, such as first-come first-served or 
the historical average.  We believe that the acceptance of quotas seriously undermines 
the principles of transparency and predictability. 
Answer
: 
According to Viet Nam's latest Offer on TRQ,  Viet Nam would apply three methods of TRQ 
administration.  As such, auctioning is no t referred to a method that would be used.  
Viet Nam has committed to observe all WTO's applicab le rules in the allocation of TRQ. In addition, 
Viet Nam will observe its commitments provided in  its TRQ Offer, as supplemented by the bilateral 
agreements with all the interested Members of the Working Party, as from the date of accession. 
- Fees and charges for services rendered 
Question 77 Paragraphs 173 and 176 of WT/ACC/SPEC/VNM/ 5/Rev.2:  These paragraphs appear to 
indicate that Viet Nam is developing new legislation to ensure that its customs fees are 
established in a manner to approximate the cost of services rendered. 
- Is there legislation in development to amend the current laws on customs fees?  If so, 
what sort of fee is under consideration?  Please indicate the status of this legislation, the 
next steps in its consideration and when we could see a draft? 
- Paragraph 176 is a good basis for development of a commitment.  Viet Nam's  
acceptance of this commitment will be facilit ated if Viet Nam has indeed developed a 
new fee structure.   
Answer
: 
-  Yes, Viet Nam is studying the current appli cation of WTO’s Members with regard to customs 
fees, WTO compliance and the applicability to Vi et Nam case.  In this context, we would 
appreciate the cooperation of Member in providi ng their current laws/regulations on customs 
fees and helping Viet Nam to develop the suitabl e schedule of customs fees in order to ensure 
to compensate the service costs and ensure WTO compliance.  
-  Viet Nam in principle agrees with the pr oposed commitment language provided that the 
phrase "[that such fees and charges would be based  on unified criteria that would ensure]" be 
deleted. We would like correct Paragraph 176 as follows: 
  "176.  The representative of Viet Nam confirmed that from the date of accession 
Viet Nam would apply all fees and charg es for services rendered applied on or in 
connection with importation or exportation,  including those discussed in paragraphs  WT/ACC/VNM/44 
 Page 31 
 
 
  [... and ...] above, in conformity with rele vant provisions of the WTO Agreements, in 
particular Articles VIII and X of the GATT 1994.  He further confirmed that they were limited to the approximate cost of ser vices rendered.  He added that the practice 
of higher special fees for some imports would be eliminated and that fees that varied based on the value or volume of imports or applied for revenue purposes would be 
eliminated upon accession or revised to conform with the provisions of Article VIII.  
He further confirmed that information regard ing the application and level of any such 
fees, revenues collected and their use would be provided to WTO Members upon request.  The Working Party to ok note of these commitments." 
Question 78 
Paragraph 173 of WT/ACC/SPEC/VNM/5/Rev.2 and Question 142 of WT/ACC/VNM/41. We 
note Viet Nam's confirmation that it is reviewing its customs processing fees and will adjust them to conform with the WTO rules upon accession. 
Answer
: 
Viet Nam confirms this understanding. - Application of internal taxes to imports Question 79 Excise Taxes: We believe progress is being ma de towards WTO consistency in Viet Nam's  
excise tax regime.  However, th ere is still work to be done. 
Answer
: 
We take note of the comment. Question 80 We note the discrepancy in the SCT schedule for tax rates on spirits between Ministry of 
Finance Circular No. 115-2005-TT-BTC and Table 10 of WT/SPEC/VNM/5/Rev.2.  Circular No. 115 specifies that the 30 per cent tax rate is  applied to spirits from 20 per cent to below 
40 per cent alcohol content by volume and the 65 p er cent tax rate is applied to spirits with 
alcohol content from 40 per cent and above by volume.  Table 10 indicates that the 65 per cent 
rate is applied to spirits with alcohol conten t above 40 per cent by volume while the 30 per cent 
rate is applied to spirits containing alcohol co ntent from 20 per cent by volume to 40 per cent.  
We understand that Viet Nam is applying th e tax rates according to the schedule in 
Circular 115.   
Please explain the discrepancy between Circular 115 and Table 10. 
Answer
: 
Yes, there were typing errors in Table 10.  The correct excise tax rates are as described in 
Circular 115: 
- Spirits from 40 per cent alcohol content and above: 65 per cent; and 
- Spirits from 20 per cent to below 40 per cent  alcohol  content: 30 per cent. WT/ACC/VNM/44 
Page 32  
 
  Question 81 
We note that Viet Nam's  domestic spirits industries produce vodkas and whiskeys at 
39 per cent alcohol content by volume.  In several  WTO dispute settlement cases, excise tax rate 
schedules like Viet Nam's  three bands for sp irits (see Table 10 of WT/SPEC/VNM/5/Rev.2) 
have been found to be inconsistent with GATT Ar ticle III.  We welcome Viet Nam's  proposals 
as to how it intends to apply excise taxes to  spirits in a manner that complies with WTO 
requirements.  For a proposal to be acceptable, it  will have to apply tax rates that are equivalent 
across major categories of distilled spirits and insure that domestic production is taxed at an equivalent rate with competitive imports.  On e methodology that the WTO has found consistent 
with Article III is the application of an excise tax rate based on the percentage of alcohol in the 
beverage.   
Answer
: 
Viet Nam is willing to discuss with the interested  Members of the Working Party on this issue to 
arrive to a mutually agreeable solution. 
Question 82 
Paragraph 183 of WT/ACC/SPEC/VNM/5/Rev.2 st ates that excise taxes on beer will be 
equalized, but Table 10 shows that this has not occurred as a result of the latest law.  Viet Nam is still applying excise tax rates to beer, one fo r bottled and canned beer, and one for draft and 
draught beer.  While we appreciate the unificati on of rates for the latter two categories, we 
would like to know when Viet Nam will equalize the excise tax for all beer. 
Answer
: 
Prior to the 11th Working Party Meeting, the Members of th e Working Party only raised the question 
on unifying the excise duties between draught beer and draft beer.  As a result, we have submitted to 
the National Assembly to amend the Law on Excise Tax to  this effect. It is unfortunate that only later 
this issue was raised, after Viet Nam's National Assembly has already adopted the Law on Excise Tax 
to meet with Viet Nam's WTO obligations.  Howeve r, with regard to this newly raised issue, 
Viet Nam is willing to discuss with the interested Me mbers of the Working Party in order to arrive to 
a mutually agreeable solution. 
Question 83 
Paragraph 189 of WT/ACC/SPEC/VNM/5/Rev.2:  We reserve comment on this text, until we 
have a clearer idea of what Viet Nam is prepared  to do to implement Article III of the GATT 
with respect to these products. 
Answer : 
Viet Nam is willing to discuss with the interested Me mbers of the Working Party in order to arrive to 
a mutually agreeable solution. Paragraph 189 will then be restructured accordingly. 
Question 84 
Paragraph 184 and Table 10: We note the cons iderable raise of excise duty rate as regards 
spirits of 40 per cent and 41 per cent of alcohol.  The increase of the tax is from 30 per cent to 
65 per cent, even if there is only 1 per cent difference in the alcohol rate.  WT/ACC/VNM/44 
 Page 33 
 
 
  We have information indicating that the excise tax treatment of spirits constitutes a de facto 
discrimination of imported products vis-à-vis  directly substitutable domestically produced 
spirits (which have an alcohol percentage of 39 per cent). We would therefore urge Viet Nam  to 
consider an excise tax that would take more in to account the real difference of the rate of 
alcohol (like amount per percentage of alcohol) , or device a rate for sprits of more than 
40 per cent alcohol that is less drastic and more proportional than the current sharp increase 
from 30 to 65 per cent.  
Answer : 
Viet Nam is willing to discuss with the interested Me mbers of the Working Party in order to arrive to 
a mutually agreeable solution. 
Question 85 Paragraph 189 of WT/ACC/SPEC/VNM/5/Rev.2: Spiri ts should also be added to the products 
listed in this paragraph. 
Answer
: 
Viet Nam is willing to discuss with the interested Me mbers of the Working Party in order to arrive to 
a mutually agreeable solution. 
Question 86 
We note major concerns with differential excise ra tes on alcoholic beverages.  In particular, the 
excise tax applied to spirits with 40 per cent alcohol content is 65 per cent – more than double that applying to spirits of 20-40 per cent alcohol content.  This threshold of 40 per cent corresponds to the ceiling on most local spirits pr oduction, while imported spirits are generally 
above 40 per cent in alcohol content.  This is a violation of non-discriminatory treatment of like 
product under Article III and a de facto  import restriction.  We request Viet Nam to come 
forward with a proposal to address this concern – in particular, a proposal in relation to a uniform rate of excise across all spirits.  In doing so, we would request that Viet Nam consider 
the use of a specific excise duty and not an ad valorem  duty, as this would be have advantageous 
for it in ensuring appropriate levels of revenue and preventing under-invoicing. 
Answer
: 
Viet Nam is willing to discuss with the interested Me mbers of the Working Party in order to arrive to 
a mutually agreeable solution. 
Question 87 
We note outstanding differences in excise taxes applied to bottled beer and other kinds of beer 
in Table 10.  We ask that Viet Nam indicate in  the report when it will equalise excise rates on 
these like products to ensure consistency with Article III of GATT1994. 
Answer : 
Prior to the 11th Working Party Meeting, the Members of th e Working Party only raised the question 
on unifying the excise duties between draught beer and draft beer.  As a result, we have submitted to 
the National Assembly to amend the Law on Excise Tax to  this effect.  It is unfortunate that only later 
that this issue was raised, after Viet Nam's Nationa l Assembly has already a dopted the Law on Excise 
Tax to meet with Viet Nam's WTO obligations.  Howe ver, with regard to this newly raised issue, WT/ACC/VNM/44 
Page 34  
 
  Viet Nam is willing to discuss with the interested Me mbers of the Working Party in order to arrive to 
a mutually agreeable solution. 
Question 88 
We appreciate Viet Nam's  statement in pa ragraph 186 of WT/ACC/SPEC/VNM/5/Rev.2, that it 
had exempted imported products from VAT to en sure consistency with Article III.  We request 
that Viet Nam provide a list of products by six-digi t HS code that is subject to this exemption.   
Answer
: 
Pursuant to the Law on the Amendment of and Add ition to Some Articles of the Law on VAT in 2003 
and the Law on the Amendment of and Addition to So me Articles of the Law on VAT and the Law on 
Excise Tax in 2005, the following goods and servi ces shall not be subject to value added tax: 
1. Products of cultivation, husbandry or aquacu lture which have not yet been processed into 
other products or which have only been semi -processed by organizations or individuals 
producing and selling such  products and imports; 
2.  Animal breeds and plant breeds; 3.  Salt products; 
4.  Specialized machinery, equipment or means of transportation which form part of a 
technological process or construction materials which are not yet able to be produced 
domestically and are required to be imported to form the fixed assets of enterprises; aircraft, drilling platforms or watercraft leased from fore ign parties which are not yet able to be 
produced domestically used fo r production or busin ess; equipment, machinery, replacement 
parts, specialized means of transportation and supplies which are required to be imported in 
service of prospecting, exploration and developm ent of petroleum fields and which are not yet 
able to be produced domestically; 
5.  Sales of State-owned houses by the State to existing tenants; 6.  Transfers of land use rights; 7.  Credit services, investment f unds and securities trading activities; 
8.  Life insurance; student insurance; insura nce of animals and plants and non-profit-making 
insurance activities; 
9.  Medical services; 10.  Non-profit-making cultural, exhibition and sports activities; artistic performances, film 
production; import, publication and screening of  film footage and documentary videos; 
11.  Education and vocational training; 
12.  Radio and television broadcasting  accord ing to programmes funded by the State Budget; 
13.  Printing, publication, import and distri bution of newspapers, magazines, specialized 
newsletters, political books, textbooks, teaching mate rials, books on legislation, books printed 
in languages of ethnic minorities, propaganda pi ctures, photos and posters; Printing of money; 
14.  Public services of cleaning and water drainage in urban areas and residential areas, 
maintenance of zoos, flower ga rdens, parks, trees in streets, public lighting systems and 
funeral services; 
15.  Repair, renovation and construction of cultura l and artistic works, public works, infrastructure 
and welfare housing funded by public contribution and humanitarian aid; 
16.  Public passenger transportation by bus; electrical bus; 17.  Geological surveys, exploration, measur ing and formulation of maps, which can be 
characterized as basic su rveys of the State; 
18.  Water supply and drainage serving agri cultural production; clean water produced by 
organizations and individuals for consumpti on in rural, mountainous and island areas and 
remote and distant regions; 
19.  Specialized arms and weaponry requi red for national defence and security;  WT/ACC/VNM/44 
 Page 35 
 
 
  20.  Imported goods in the following cases: humanita rian aid, non-refundable aid; gifts to State 
bodies, political organizations, socio-political organizations, social organizations, socio-professional organizations; units of the peopl e's armed forces; donations and gifts to 
individuals in Viet Nam within the limits sti pulated by the Government, personal effects of 
foreign organizations and individuals under di plomatic immunity regulations; hand luggage 
within duty-free limits; goods to be sold to inte rnational organizations and foreign individuals 
for humanitarian and non-refundable aid to Viet Nam; 
21.  Goods in transit or transhipment or cr ossing Vietnamese borders; goods temporarily imported 
and re-exported and goods temporar ily exported and re-imported; 
22.  International transportation, goods and services provided directly for international 
transportation and re-insurance to abroad; 
23.  Technology transfers; software; 24.  Post and Telecommunication services and uni versal internet program in accordance with 
Government's plan; 
25.  Gold imported in bars and foils which are not yet processed into fine art articles, jewellery or 
other products; 
26.  Certain exported unprocessed minerals to be stipulated in detail by the Government; 
27.  Products that are man-made substitute fo r human parts of patients; crutches and other 
specialized equipments for invalid people; and 
28.  Goods and services of business individuals ha ving low income levels. Low income levels 
shall be stipulated by the Government. 
The list of products not subject to value added ta x by six-digit HS code is not available.  
- Quantitative import restrictions, including  prohibitions, quotas and licensing systems 
Question 89 We are concerned about several quantitative restrict ions being applied in relation to alcohol: 
(i) In particular, we understand authorised importers may only import US$ 300,000 of 
distilled spirits per annum which does not a pply to other alcohol.  Viet Nam has 
indicated that this is not the case.  We therefore suggest the following paragraph be 
added to the report. 
 x. A Member raised a concern that Viet Nam was restricting the importation of 
distilled spirits by authorised importers to only US$ 300,000 per annum.  This, 
in the Member’s view, did not apply to other alcohol.  In response, the 
representative of Viet Nam indicated that  such a restriction did not apply, and 
agreed that it would refrain from applying any quantitative restriction on imports of distilled spirits.  The Working Party took note of this commitment. 
(ii) We are concerned that Ho Chi Minh Ci ty has banned the sale and consumption of 
liquor over 30 per cent within its city limits,  which again effectively prohibits imported 
spirits (which are generally above 40 per cent alcohol content), while allowing 
considerable local production (ie within the 20-30 per cent alcohol limit) to be traded.  
Such a ban on sale of alcohol above 30 per cent alcohol content also undermines the value of bound concessions Viet Nam has provi ded in relation to market access for such 
produce into Viet Nam as a whole.  We request that Viet Nam repeal these provisions 
within Ho Chi Minh City. 
Answer
: 
(i)  Viet Nam does not maintain any quantitativ e restriction on the import of distilled spirits. WT/ACC/VNM/44 
Page 36  
 
  (ii)  Alcohol is strictly regulated and is not en couraged in Viet Nam.  The Vietnamese government 
may, according to the actual situation in a locality during a certain period, set up various appropriate measures, including the limitation on the number of the liquor selling licenses. 
 According to Decision No. 93/2005/QD-UBND of  Ho Chi Minh City People's Committee 
dated 9 June 2005 regulating a number of business sectors and services that are sensitive in 
the sense that they may give rise to the so cial evils, Ho Chi Minh City authority has 
temporarily ceased the allocation of new liquor sellin g licenses within District 1 (applicable to 
all drinks with over 30 per cent alcohol content, regardless of imported or domestic origins). 
The reason was that there had been too many liquor  sellers within the area of District 1.  
Other sellers who have been granted the liquor  selling licenses are still allowed to continue 
with their business as normal.  
 We consider any request to remove this me asure as unreasonable as it is detrimental to the 
social development. 
Question 90 
Paragraph 195 of WT/ACC/SPEC/VNM/5/Rev.2: As regards import prohibition of motorcycles 
with engine capacity exceeding 175cm
3, we welcome Viet Nam's proposal to consider non-
automatic licensing instead of import prohibitio n.  We would urge Viet Nam to proceed in 
replacing the import prohibition with a licensi ng system and would be happy to hear from 
Viet Nam what is the current situation in this respect.  – the proposal to consider non-automatic 
licensing is not reflected in the text of the Working Party Report. 
Answer : 
Viet Nam has already replaced the import ban on  motorcycles with engine capacity exceeding 175cc 
by a automatic licensing regime to help screen ing users and buyers of these motorcycles in 
accordance with Viet Nam's domestic regulations. 
Question 91 
Paragraph 196 of WT/ACC/SPEC/VNM/5/Rev.2 and Questions 167 and 168 of 
WT/ACC/VNM/41: As regards the replacing the im port prohibition of used motor vehicles with 
an import quota, we thank Viet Nam for submi tting information on the domestic registrations 
and production, and the explanation given on  the tariff schedules as regards used motor 
vehicles.  We will submit our comments on these points at a later stage.  
Answer : 
Used motor cars have been allowed to be importe d into Viet Nam as from 1 May 2006.  We are 
looking forward to receiving the comments as soon as possible. 
Question 92 
We note inconsistencies between this section in re lation to chemical imports and the section on 
investment.  In particular, there is a list of chemicals in Table 12(a) that are prohibited and a list in 12(b) that are allowed to be imported on  certain conditions.  Table 1 in Annex 2 of the 
report, by contrast, indicates that business in either "toxic chemicals (second row)" or 
"chemical substances of high toxicity (fifth row)" is prohibited.  We suggest Viet Nam clarify in 
the Investment section exactly which kinds of chemicals are considered prohibited and which 
can be traded subject to conditions established in  the quantitative import restrictions section.  WT/ACC/VNM/44 
 Page 37 
 
 
  Answer : 
There is a translation error here. "Toxic chemicals" in Item 2 of Table 1 are actually "toxic materials" 
that are in the same grouping with explosives and radi oactive substances, those that have fatal or very 
serious effect.  Those prohibited mentioned in Ta ble 11 and 12 correspond to Item 6 of Table 1 which 
refers to "chemical substances of high toxicity". 
Table 12(a) correspond to Item 6 of Table 1. Table 12(b) are chemicals that are toxic but not 
considered as "of high toxicity". Therefore, c onducting business, including importation, is allowed, 
though with certain conditions such as having adequate handling facilities.  
Question 93 
We understand that Viet Nam intends to extend im port licensing to additional products, e.g. 
some that are now banned.  We would appreciat e updated information, in the format of the 
questionnaire, on the licensing program for these products, when that information is available. 
Answer : 
Motorcycles with engines exceeding 175cc has been added to the list of products subject to licensing. 
The procedures are automatic (i.e. no limitation on the quantity or value of the imports), based on 
criteria specified by the Ministry of Public Secur ity in order to screen the prospective buyers/users. 
However, detailed criteria are still in progress. 
Question 94 
Viet Nam has come a long way in addressing Wo rking Party members’ concerns over its system 
of import bans and other restrictions.  We belie ve that these efforts are ongoing and that the 
current text should be updated to reflect the most recent changes and proposals. 
- In particular, we understand that the regime with regard to motorcycles 
(paragraph 195), goods with encryption (paragraph 199), and dangerous chemicals (paragraph 201) is changing. 
- The definition of superstitious and de praved goods provided in paragraph 198 is 
unclear.  We would appreciate a more precise, legal definition of both words as they 
apply to the goods identified in this paragr aph.  We would also appreciate information 
in the report on how this provision has been applied in practice.  What goods have been permitted entry and what goods have been prohibited from entering Viet Nam. 
Answer
: 
- Motorcycles with engines exceeding 175cc has b een added to the list of products subject to 
licensing.  The procedures are automatic (i.e. no limitation on the quantity or value of the 
imports), based on criteria specified by the Minist ry of Public Security in order to screen the 
prospective buyers/users.  However, detailed criteria are still in progress.  As for specialised encryption machines and encryption software subj ect to State secret and chemicals, Tables 11 
and 12 had been revised to reflect the regulati ng regime.  Viet Nam is willing to work with 
the Members of the Working Party to better reflect these changes into the Draft Report.  WT/ACC/VNM/44 
Page 38  
 
  -  Concerning the definition of "superstitious cultural products" and "pornographic cultural 
products":  
 - "Superstitious cultural products" are cultu ral products (includi ng books, newspapers, 
documents, paintings, photographs, posters, work s of art, audio tapes, records, CDs, 
video tapes, VCDs, DVDs, floppy disks, hard  disks, photo disks with information in 
writing, sounds, and pictures) which show pictures or sounds or contents that cause 
paranoia, go against nature, or enchant ot her people to commit crimes or go against 
the law; 
 - "Pornographic cultural products" are cultura l products that contain contents, pictures 
or sounds describing in detail sex acts or nudes with explicit intentions of sexual 
arousal or erotic stimulation, for instance intercourses or masturbations between sex 
organs, between sex organ(s) and mouth(s) , between mouth(s) and anus(es), between 
human and animal sex organs, or acts of forced sex, rapes, child sex, sex orgies, 
incest (such as between a parent and his or her child).  
- Concerning the application in practice of the regulations: 
 - Cultural products that violate regula tions concerning prohibited circulation and 
popularization in Viet Nam shall not be allowe d to be imported into Viet Nam.  Such 
products include superstitious, pornographic and reactionary cultural products. These 
regulations have been detailed in the lega l documents such as the Law on Publishing, 
the Law on the Press, the Ordinance on Advertising, the Decree No. 88/2002/ND-CP of 7 November 2002 on the management of the import and export of cultural products 
for non-profit purposes, and Circular No . 48/2006/TT-BVHTT of 28 April 2006 by 
the Ministry of Culture and Information guiding the implementation of Decree No. 12/2006/ND-CP. (Please find enclosed the list of legal documents with stipulations on cultural products prohibi ted from popularization, production or import 
in Viet Nam in Annex I); 
 - State culture and information management  agencies shall base themselves on the 
specific provisions of the legal documents in  the above-mentioned list to evaluate the 
cultural content of a cultural product and de termine whether it is to be prohibited 
from popularization, production in Viet Nam or importation into Viet Nam.  Written confirmation from those State management ag encies can be produced to this effect. 
This regulation applies generally and presen ts no prejudice against any organization, 
individual and economic sector at home and abroad.  
Question 95 
We thank the delegation of Viet Nam for its submission of replies in response to the WTO 
Import Licensing Questionnaire.  We would app reciate additional substantive information on 
how the Viet Nam's  import licensing system op erates, including the role of line-management 
agencies in granting the import licenses.   
Answer
: 
Viet Nam issued Decision No. 41/2005/QD-TTg dated 2 March 2005 promul gating the Regulations 
on import licensing regime, including general provision and forms of import licensing.  It has taken 
effect since 1 September 2005.  
Information on line management has been provided in Table 13 of the Draft Report.  It is noted that 
not all line-management measures involve import li censing procedures.  For measures that involve 
automatic licensing, the agency in charge, as specif ied in Table 13, is responsible for issuing the 
licence.  WT/ACC/VNM/44 
 Page 39 
 
 
  Question 96 
In regards to the line management licensi ng, in the answer to Question 1(a) under 
"IV. Eligibility of Importers to Apply for Li cence," the answer for non-TRQ goods states, 
"licenses are given to all traders who have been  registered as traders of the corresponding 
goods."  Is there a registration fee?  Is there a lis t of authorized traders? Are all importers 
applying to register as traders automatically approved? 
Answer : 
As for the list of authorized traders, according to Article 2 of Decision No. 41/2005/QD-TTg dated 
2 March 2005 of the Prime Minister, any organizati ons and individuals entitled to import goods in 
accordance with laws are eligible to apply for an import licence, provided that they have completed 
their appropriate business registration (which is simple  and transparent).  As it is "registration", no 
"approval" is involved. 
Question 97 
In regards to the line management licensi ng, in the answer to Question 1(a) under 
"VI. Documentation and Other Requirements for Application for License," the answer states  
"the type of information required in an applic ation form and the necessary documents to be 
attached to it varies among different sectors. "  For every Item under the line management 
licensing system, please specify the ty pe of information that is required. 
Answer : 
As it has been indicated, the type of information varies according to the particular type of product 
under management.  The information required is c ontained in the legal documents issued by the 
responsible agencies and is published in the Official Gazette. 
Question 98 
In regards to the line management licensing, in the answer to Question 3 under 
"VI. Documentation and Other Requirements fo r Application for License," the answer states, 
"Currently, there is no licensing fee or administra tive charge."  Is it expected that there will be 
a fee or administrative charge in the near future?  If so, please identify the fee and the date the 
fee, if any, will come into effect.  
Answer : 
Licensing fees are regulated in the forms of a specific amount in order to compensate services 
rendered: 
-  Licensing fees for import and export of cultural products pursuant to Decision 
No. 03/2000/QD-BTC dated 21 December 2000  are 50,000 VND/licence for commercial 
transactions and 20,000 VND/licence for non-co mmercial products (regardless of value and 
volume of imports); 
-  Import licensing fee for imported plant prot ection medicine and materials making it is 
200,000 VND/licence in accordance with Circular No. 110/2003/TT-BTC dated 
17 November 2003; and 
-  Fee for granting the quarantine certificate for animals and animal products imported, 
exported, transited, temporary import for expor t and temporary export for import (regardless 
of quantity and kinds) is 50,000 VND/time in accordance with Decision No. 08/2005/QD-BTC dated 20 January 2005. WT/ACC/VNM/44 
Page 40  
 
  Question 99 
In regards to Question 1 under "VII. Conditions of Licensing," the answer states "there is no 
concrete provision on the validity period of a licence from the date of the issue."  Does this mean that the conditions depend on the product or th e trader applying for the import license?  The 
answer also states "they are normally given upon the demand of the applicants" and that "the 
validity period of a licence can be extended in justifiable cases."  Please clarify this information 
and identify situations that are "normal" and "justifiable."   
Answer
: 
The validity period of a licence is normally for one y ear.  Application for extension can be lodged and 
accepted if the reasons for extension as provided by the trader is appropriate.  However, as the 
procedures are automatic, extension is not sought by traders in practice.  They can instead apply for a 
new licence without difficulty.  As a result, Viet Nam does not have regulations on such extension. 
Question 100 
We note that Table 13V identifies the Ministry  of Culture and Information as responsible for 
Line Management and issuance of automatic im port licenses for printed material.  Please 
describe the process and fees for issuance of auto matic import licenses by the Ministry of 
Culture and Information.   
Answer : 
Pursuant to the Law on Publishing, Law on the Pr ess, Decree No. 12/2006/ND-CP of 23 January 2006 
by the government, Circular No. 48/2006/TT-BVHTT of 28 April 2006 by the Ministry of Culture and Information guiding the implementati on of Decree No. 12/2006/ND-CP, Decision 
No. 41/2005/QD-TTg of 2 March 2005 by the Prime Mi nister on regulations for licensing the import 
of goods, and other related legal documents, printed materials are specialized culture-information 
products subject to line management by the Ministry  of Culture and Information. Traders may apply 
to the local Department of Culture and Informati on who will assess if the printed materials are in 
accordance with the above-mentioned legal documents.  
Licensing fees for import and export of cultural products pursuant to Decision No. 03/2000/QD-BTC 
dated 21 December 2000 are 50,000 VND/licence (about  US$ 3) for commercial transactions and 
20,000 VND/licence (about US$ 1.2) for non-commercial products, regardless of  value and volume of 
imports. 
Question 101 
The final sentence of paragraph 198 (WT/ACC/SPEC/VNM/5/Rev.2) states that "Competent 
State management agencies …assessed whether a cultural product was superstitious, 
reactionary, or depraved…"  Please identify  State management agencies other than the 
Ministry of Culture and Information that particip ate in this evaluation.  What laws other than 
the Commercial Law, the Law on the Press, a nd the Law on publication apply to imports of 
these products? 
Answer
: 
The Ministry of Culture and Information has sp ecialized management bodies under the Minister of 
Culture and Information to carry out State manage ment over the areas of the press, publishing, the 
cinema, fine arts, photography, and performi ng arts, among others. Such bodies include the  WT/ACC/VNM/44 
 Page 41 
 
 
  Department of the Press, Department of Publishing , Department of the Cinema, and Department of 
Performing Arts.  
The Ministry of Culture and Information authori zes the departments of culture and information under 
the provincial or municipal people's committees to carry out State management of the press, publishing, the cinema, etc. to eval uate the content of some types of  cultural products (such as music, 
theatre or fashion videos or records, or audio or visual products of types other than cinematic works) 
and determine whether such products subject to pr ohibition of popularization, production or import in 
Viet Nam.   
The main legal documents are: the Law on Publis hing, Law on the Press, Decree No. 12/2006/ND-CP 
of 23 January 2006 by the government, Circular No. 48/2006/TT-BVHTT of 28 April 2006 by the 
Ministry of Culture and Information guiding the implementation of Decree No. 12/2006/ND-CP, 
Decision No. 41/2005/QD-TTg of 2 March 2005. 
Question 102 
What are the specific criteria used by these agencies to reach a determination that a product is 
"superstitious, depraved, or reactionary?" 
Answer
: 
Cultural products that violate regulations concerning prohibited circulation products and 
popularization in Viet Nam shall not be allowed to be  imported into Viet Nam.  Such products include 
superstitious, pornographic a nd reactionary cultural products.  These regulations have been detailed in 
the legal documents such as the Law on Publishing, the Law on the Press, the Ordinance on Advertising, the Decree No. 88/2002/ND-CP of 7 November 2002 on the management of the import 
and export of cultural products for non-profit purposes, and Circular No. 48/2006/TT-BVHTT of 
28 April 2006 by the Ministry of Culture and Information guiding the implementation of Decree No. 12/2006/ND-CP. (Please find enclosed the list of legal documents with stipulations on cultural 
products prohibited from popularization, production or import in Viet Nam in Annex II). 
State culture and information management agenci es shall base themselves on the specific provisions 
of the legal documents in the above-mentioned list to evaluate the cultural content of a cultural 
product and determine whether it is to be prohibite d from popularization, production in Viet Nam or 
importation into Viet Nam.  Written confirmation from those State management agencies can be produced to this effect.  This regulation appli es generally and presents no prejudice against any 
organization, individual and economic  sector at home and abroad.   
Question 103 
Concerning Viet Nam's  import licensing regime,  we appreciate the additional information 
provided in WT/ACC/VNM/40, and would like to see it updated to include any new licensing requirements provided for in new legislation. 
Answer
: 
Motorcycles with engines exceeding 175cc has been added to the list of products subject to licensing. 
The procedures are automatic (i.e. no limitation on the quantity or value of the imports), based on 
criteria specified by the Ministry of Public Secur ity in order to screen the prospective buyers/users. 
However, detailed criteria are still in progress. WT/ACC/VNM/44 
Page 42  
 
  Question 104 
We would appreciate information on the fees ch arged for licenses and the new line management 
system noted in paragraphs 203 and 206 (WT/ACC/SPEC/VNM/5/Rev.2). 
Answer
: 
Licensing fees are regulated in the form of a specific amount in order to compensate services 
rendered: 
-  Licensing fees for import and export of cultural products pursuant to Decision 
No. 03/2000/QD-BTC dated 21 December 2000  are 50,000 VND/licence for commercial 
transactions and 20,000 VND/licence for non-co mmercial products (regardless of value and 
volume of imports); 
-  Import licensing fee for imported plant prot ection medicine and materials making it is 
200,000 VND/licence in accordance with Circular No. 110/2003/TT-BTC dated 17 November 2003. 
-  Fee for granting the quarantine certificate for animals and animal products imported, 
exported, transited, temporary import for expor t and temporary export for import (regardless 
of quantity and kinds) is 50,000 VND/time in accordance with Decision 
No. 08/2005/QD-BTC dated 20 January 2005. 
Question 105 
We suggest a review of WT/ACC/VNM/40 to revise it  in light of impending additional licensing 
requirements, e.g. for motorcycles. 
Answer
: 
Motorcycles with engines exceeding 175cc has been added to the list of products subject to licensing. 
The procedures are automatic (i.e. no limitation on the quantity or value of the imports), based on 
criteria specified by the Ministry of Public Secur ity in order to screen the prospective buyers/users. 
However, detailed criteria are still in progress. 
Question 106 
The descriptive text of this section needs revision. Answer
: 
We take note of this comment. 
Question 107 
We note that reform of the line management is still pending and seek details on when that will 
occur.  We suggest Viet Nam provide additional material on these reforms. 
Answer : 
We will provide additional inform ation when it is available.   WT/ACC/VNM/44 
 Page 43 
 
 
  Question 108 
We note that investment licence conditions cont ain quasi-limitations on ability to export or 
import.  We request Viet Nam to provide implem enting regulations in relation to investment 
licences in order to complete this section of the report. 
Answer : 
Under the Law on Investment, the provisions for inv estment licenses have been replaced by those for 
investment certificates.  Viet Nam confirms to  apply conditions for investment certificates in a 
consistent manner with its commitments on trading rights.  
Question 109 
We also note that in the introductory paper, Viet Nam notes that it will "regularly review, 
reassess all or part of the business conditions, revoke or suggest revoking the inappropriate 
conditions, amending or suggesting amending the irrational conditions".  We seek additional 
information on the procedure underpinning su ch reviews and criteria for any changes. 
Answer : 
This procedure is stipulated in Article 7.4 of th e Law on Enterprise.  Accordingly, the Government 
will review, reassess this provision of the Law and Implementing Decrees with other laws, ordinances 
and decrees relating to the business conditions to identify conditions which are overlapping, 
conflicting or hindering the operation of enterpri ses.  Based on results of such review, the 
Government either revokes, amends or suggest s the National Assembly/the Standing Committee of 
the National Assembly to revoke or amend inappr opriate conditions.  The amendment and revocation 
of the business conditions provided in the above-m entioned documents will be compliant with the 
procedures provided in the Law on the Prom ulgation of Legal Normative Documents. 
- Customs valuation 
Question 110 We have reviewed "Decision No. 192/TCHQ/KTTH on promulgating regulations on application 
of dutiable value of goods for import and export tax" (promulgated in 1995), "Decision 
No. 590A/QD/BCT on the promulgation of the Table of Dutiable Values" (promulgated in 
1998), and "Decision No. 155/1998/QD-TTg on issuing regulations on determination of dutiable value of imports and exports" (promulgated in 1998) .  We initially note that the laws repeatedly 
refer to "minimum dutiable values" and "minim um prices" for customs valuation purposes.  
However, it is our understanding that mini mum prices were eliminated by Circular No. 87 
(August 2004).   
Please confirm that minimum prices have, in fact, been eliminated in accordance with Article 7 
of the Agreement. 
Answer
: 
Customs Valuation Determination under Minimu m Price has been abolished by Circular 
No. 87/2004/TT-BTC of Ministry of Finance dated 31 August 2004. WT/ACC/VNM/44 
Page 44  
 
  Question 111 
We have reviewed "Law No. 45/2005/QH11 am ending Law No. 29/2001/QH10" promulgated 
during November 2005 and designated as complying with Article 13 of the Agreement.  Article 13 of the Agreement provides that if, in the course of determining the customs value of imported goods, it becomes necessary to delay the final determination of such customs value, the 
importer of the goods shall nevertheless be able to withdraw them from customs if, where so 
required, the importer provides sufficient guarantee in the form of a surety, a deposit or some 
other appropriate instrument, covering the ultimate payment of customs duties for which the goods may be liable.  The legislation of each Member shall make provisions for such circumstances.   
What portion of Law No. 45/2005/QH11 addresses this requirement?   Answer
: 
Article 13 set fourth in Agreement on Customs Valua tion has been prescribed in detail in Article 16 of 
Decree No. 155 (Delay on tax valuation). 
Question 112 
We have reviewed "Ordinance on Procedures fo r Settlement of Administrative Cases" to be 
promulgated during March of 2006.  The law pr escribes procedures for administrative cases 
and purports to comply with Article 11 of the Agree ment.  It provides that: (1) the legislation of 
each Member shall provide in regard to a dete rmination of customs value for the right of 
appeal, without penalty, by the importer or any other person liable for the payment of the duty; 
(2) an initial right of appeal without penalty may be to an authority within the customs 
administration or to an independent body, but the legislation of each Member shall provide for 
the right of appeal without appeal to a judicial authority; and (3) notice of the decision on appeal shall be given to the appellant and the reasons for such decision shall be provided in writing.  The appellant shall also be informed of any rights of further appeal. 
We note that Article 17 of the Ordinance gr ants assurance of a "two-level adjudication 
principle" (i.e. a right to appeal) in administrative cases.  Article 24, paragraph 12 gives the 
appellate authority jurisdiction over "compl aints against administrative decisions or 
administrative actions of customs agencies and customs officers."   
(a) Please confirm that the importer or oth er person liable for the payment of duty in 
customs valuation cases may appeal initial determinations without penalty?   
(b) Please also confirm that the notice of decisi on on appeal shall be given to the appellant 
and the reasons for such decision will be provided in writing? 
Answer
: 
In compliance with Article 11 of the Customs Valu ation Agreement, the contents of complaint and 
appeal have been stipulated in the Law on Comp laint and Denunciation (last amended in 2005) and 
the Ordinance on the Procedures for the Settlement  of the Administrative Cases (last amended in 
2006).  The importer or other person liable for the payment of duty in customs valuation cases may 
appeal initial determinations without penalty. 
According to laws in force in Viet Nam, deci sion on the cases shall be sent to the defendant. 
Article 17.d of the Law on Complaint and Denouncemen t stipulates that the complainant has the right:  WT/ACC/VNM/44 
 Page 45 
 
 
  "to receive acknowledgement note that confirms a handling of the case; to know information, to 
obtain document, document on handling of the case...". 
Question 113 
To complete our legislative review, we would a ppreciate receiving English language translations 
of the following documentation on Customs Valuation: 
- Circular No. 118-2003-TT-BTC providing guidelines on Decree No. 60-2002-ND-CP on 
determination of dutiable price of imported goods subject to import duties in conformity 
with principle of the Agreement on implementation of Article 7 of the GATT (2003); and 
- Decision No. 1361-QD-TCHQ-KTTT on regul ations on review of dutiable prices in 
accordance with WTO Customs Valuation Methods. 
Answer
: 
Circular No. 118/2003 and Circular No. 87/2004 by Ministry of Finance were no longer in effect. 
They were replaced by Circular No. 113/2005/TT-BTC dated 15 December 2005. 
Unofficial English translations of the above Circ ular and the following legislations have been 
submitted to the Secretariat (document WT/ACC/VNM/44/Add.1): 
-  Circular No. 87/2004/TT-BTC of 31 August 2004 guiding implementation of the Law "On 
Export and Import Tariffs"; 
-  Circular No. 118/2003/TT-BTC on guiding implementation of Decree No. 60/2002/ND-CP 
dated 6 June 2002 providing valuation on im ports in accordance with the Agreement on 
implementation of Article 7 of GATT 1994; 
-  Circular No. 113/2004/TT-BTC of 15 Decemb er 2005 on guiding implementation of the Law 
on Export and Import Tariffs; 
-  Decree No. 154/2005/ND-CP dated 15 December 2005 by the Government guiding 
implementation of some articles of the Customs Law relating to customs procedures, customs inspection and supervision; 
-  Circular No. 114/2005/TT-BTC dated 15 Decemb er 2005 by Ministry of Finance on guiding 
imports-exports post customs clearance audit. 
Question 114 
Decree on Customs Valuation of Import and Ex port Goods (No. 155/2005/ND-CP), Chapter II – 
Methods of Determining Customs Values for duty Assessment of Imported Goods  
Article 7 – Customs Valuation Based on Transaction Value of Imported Goods 
Article 7, paragraph 2, of Viet Nam's  legislat ion generally seems to track the requirements of 
Article 1, paragraph 1, of the WTO Agreement  (hereinafter, the "Agreement").  However, 
could Viet Nam clarify whether, under subparagr aph (c), no part of the proceeds of any 
subsequent resale, disposal or use of the goods by the buyer will accrue directly or indirectly to 
the seller for purposes of transaction value unless an appropriate adjustment is made? 
Answer
: 
Item 2, Article 7, Decree No. 155/2005/ND-CP stipulates conditions to apply Customs valuation 
determination based on transaction valuation of import and export goods.  Point c) of this Item can be WT/ACC/VNM/44 
Page 46  
 
  understood that any payment directly or indirectly  from the process of disposal or reuse of goods, 
except from appropriate adjustments. 
Question 115 
Decree on Customs Valuation of Import and Ex port Goods (No. 155/2005/ND-CP), Chapter II – 
Methods of Determining Customs Values for duty Assessment of Imported Goods.  
Article 8 – Customs Valuation Based on the Tran saction Value of Identical Imported Goods. 
Could Viet Nam confirm which portion of its legi slation relates to Article 2, paragraph 1(b), of 
the Agreement which requires, in part, that "[w] here no such sale is found, the transaction 
value of identical goods sold at a different commercial level and/or in different quantities, adjusted to take account of differences attributab le to commercial level and/or to quantity, shall 
be used, provided that such adjustments can be made on the basis of demonstrated evidence 
which clearly establishes the reasonableness and accuracy of the adjustment, whether the 
adjustment leads to an increase or decrease in value"? 
Answer
: 
Items 1 to 3 , Provision III, Annex 1, Circular No . 113 specifying in details  Item 2, Article 8 and 
Article 9 of the Decree No. 155 (stipulates the difference of imports). 
Question 116 
Decree on Customs Valuation of Import and Ex port Goods (No. 155/2005/ND-CP), Chapter II – 
Methods of Determining Customs Values for duty Assessment of Imported Goods  
Article 10  – Customs Valuation Based on the Deductive Value  Could Viet Nam clarify this Article and explain how it relates to Article 5 of the Agreement?  
For example, Article 5(1)(a) of the Agreement provides for certain deductions from deductive 
value.  Are such amounts to be deductions from (or additions to) deductive value under 
Viet Nam's  provision? 
Answer
: 
Article 10, Decree No. 155 prescribes the customs va luation based on deductive value, in accordance 
with Article 5 of the Customs Valuation Agreement.   Item 3, Article 10, Decree No. 155 prescribes 
deductions from deductive value provide d in Article 5.1 (a) from (i) to (iv) of the Customs Valuation 
Agreement. 
Question 117 
Decree on Customs Valuation of Import and Ex port Goods (No. 155/2005/ND-CP), Chapter II – 
Methods of Determining Customs Values for duty Assessment of Imported Goods.  
Article 11 – Customs Valuation Based on the Computed Value. 
Where in Viet Nam's  legislation is the requirement set forth in Article 6(2) of the Agreement 
that "[n]o member may require or compel any person not resident in its own territory to produce for examination or to allow access to, any account or other record for the purposes of 
determining a computed value"?  WT/ACC/VNM/44 
 Page 47 
 
 
  Answer : 
The content of the question has not yet been prescribed in Viet Nam's laws. 
Question 118 
Decree "On Customs Valuation of Import and Export Goods" (No. 155/2005/ND-CP), 
Chapter II – Methods of Determining Customs Va lues for duty Assessment of Imported Goods. 
CHAPTER IV – Appeal and Offence Treatment, Article 17 – Appeal and Appeal Settlement: 
This Article provides that a party may appeal a customs decision in accordance with the "Law on Appealing."   
Is this reference to the draft Ordinance on Proced ures for Settlement of Administrative Cases, 
or some other legal document?   
Answer
: 
Article 17 of the Decree No. 155/2005/ND-CP stipulates "In case the declarant does not agree with a 
customs decision of value for duty assessment, he sha ll comply with that decision, but simultaneously 
have the right to appeal according to the legislation on appealing". 
According to Article 1 of the Law on Compla int and Denunciation, citizens, agencies and 
organizations have the right to appeal administra tive decisions and actions by State administrative 
agencies and authorized persons working for the State administra tive agencies when they have 
evidence to believe that the decision and action is cont rary to the law, violating to the right and legal 
benefit of the person impacted by the  administra tive decision and administrative action has the right: 
-  To appeal against the decision if the impact ed person does not agree to the administrative 
decision or administrative action; 
-  To raise the legal proceedings to the administ rative court after the first appeal settlement of  
the customs authorities or after lodging the first appeal 30 days if impacted person has not received the reply from the issuing authorities of that administrative decision or administrative action. 
-  To raise the legal proceedings to the admi nistrative court after the second appeal settlement 
by administrative authorities if the impacted pe rson  does not agree to that appeal settlement. 
The procedure to publicize the customs rulings is as follows: Importing organi zations and individuals 
are informed in writing about the customs rulings re lated to their interests and responsibilities in the 
importation process. (Articles 38 and 45 of  the Law on Complaint and Denunciation). 
Therefore, Article 17 of Decree 155 refers to the legal system on complaint and denunciation, not the 
Ordinance on Procedures for Settlement of Administrative Cases. 
Question 119 Laws, regulations, judicial decisions and administ rative rulings of general application giving 
effect to the Agreement shall be publishe d.  See Article 12 of the Agreement.   
Where is this in Viet Nam's  legislation? WT/ACC/VNM/44 
Page 48  
 
  Answer
: 
Article 10 of the  Law on Promulgation of the Legal Normative Documents of Viet Nam specifies that 
the legal documents should be pub lished in the Official Gazette. 
Question 120 
Article 14 of the Agreement provides that "the notes at Annex I to this Agreement form an 
integral part of this Agreement and the Articles of this Agreement are to be read and applied in 
conjunction with their respective notes."   
Where are the interpretive notes in Viet Nam's legislation? 
Answer : 
Provisions of Article 14 of the Customs Valuation  Agreement: Such as notes, explanatory notes in 
Annex I have been stipulated in the Degree No. 155/2005/ND–CP dated 15 December 2005 
concerning to the customs valuation assessm ent on imported or exported goods and the 
Circular No. 113/2005/TT-BTC guiding the im plementation of import or export duties. 
Question 121 
Referring to paragraph 210 (WT/ACC/SPEC/VNM/5 /Rev.2), please provide the Working Party 
as soon as possible with English language translations of the text of Circular 
No. 87/2004/TT-BTC of 31 August 2004 and Circular No. 118/2003/TT-BTC.  Review of these documents is essential to establish Viet Nam's  full implementation of the Customs Valuation 
Agreement. 
Answer
: 
We would like to confirm that Circular No. 113/2004/TT-BTC of 15 December 2005 has replaced 
Circular No. 87/2004/TT-BTC of 31 August 20 04 and Circular No. 118/2003/TT-BTC dated 
8 December 2003.  The unofficial English translati on of the following documents is available through 
WT/ACC/VNM/44/Add.1: 
-  Circular No. 87/2004/TT-BTC of 31 August 2004; 
-  Circular No. 118/2003/TT-BTC of 6 June 2002; and 
-  Circular No. 113/2004/TT-BTC of 15 December 2005. 
Question 122 
Paragraph 212 (WT/ACC/SPEC/VNM/5/Rev.2) noted that Customs Valuation Agreement 
transparency obligations were incorporated into  Viet Nam's  the proposed amendments to the 
law via Decree No. 60/2002/ND-CP of 6 June 2002.  However, paragraph 210 advised that this 
decree had been superseded by Decree No. 155/2005/ ND-CP issued in December 2005.  Please 
describe the transparency provisions found in Decree No. 155/2005/ND-CP.  Specifically, for 
review: 
1. Do Viet Nam's  new customs rules require making available to importers written advice 
on valuation and classification rulings?  If so , how is this information communicated?  If 
not, when will Viet Nam implement such procedures? 
2. Does Viet Nam make public customs ruling provided to an individual importer?  If so, 
how is this done?  If not, when will Viet Nam implement such procedures?  WT/ACC/VNM/44 
 Page 49 
 
 
  3. Are general customs rulings available to the public?  If so, how?  If not, when will 
customs implement a system to accomplish this? 
4. To what extent does Customs consult with  importers prior to implementing significant 
changes to the system?  What process do es Customs use to obtain importer views? 
5. Has Customs established a post entry audit regime with transparent rules? 
Answer : 
Transparency obligations in th e Customs Valuation Agreement were stipulated in the Decree 
No. 155/2005/ND-CP dated December 2005 as follows: 
- Item d), paragraph 2, Article 7; 
- Paragraph 2 Article 15; 
- Paragraph 3 Article 15.  
- Paragraph 3 Article 1 of this Decree regulates that in case the provisions of the international 
agreements of which Viet Nam is the Contracti ng Party are in conflict with this Decree, the 
provisions of the international ag reements shall be complied.  
1. Regarding classification, according to provision in Item IV, Section B of Circular 
No. 85/2003/TT-BTC of 29 August 2003 guidi ng classification upon the import and export 
nomenclature, importers are informed in written forms of classification decision made by the Customs authority. 
 Regarding valuation, Decree No. 155/2005/ND-CP of 15 December 2005 by the Government 
provides for the rights and responsibilities of the customs, including informing declarant in written  form on method of valuation and the customs shall be responsible for guiding 
declarant about valuation. 
2. Viet Nam makes public customs rulings to   importer, regardless of individuals or 
organizations as follows: 
 -  Importing organizations and individuals are informed in writing about the customs 
rulings related to their interests and responsibilities in the importation process. 
(Articles 38 and 45 of the Law on Appealing); and 
 -  Organizations and individuals have the right to appeal a customs rulings.  
3. Provisions on customs procedures and  customs rulings of general application are available in 
Customs Newspaper, other news papers and customs website. 
4. The Customs have always consulted with re levant ministries and agencies, including the 
Viet Nam Chamber of Commerce and Industry wh enever it changed the customs procedures 
and general customs rulings. The Viet Nam Ch amber of Commerce and Industry will collect 
comments from business community and send the results to the Customs. Enterprises’  
concerns are also heard through annual meeting between enterprises and the Prime Minister and the customs-business dialogues. 
5.  Viet Nam's Customs have recently established a PCA system with transparent regulations. 
Accordingly, Article 32 of the Revised Cust oms law No. 42/2005/QH11 dated 14 June 2005, 
has been revised in line with the international standards as follows: 
 - Post clearance audit is the Customs procedures in order to: WT/ACC/VNM/44 
Page 50  
 
    (a) Re-examine the accuracy, reliability of the documents declared and submitted 
to the customs department by the owne rs, authorized persons, organizations, 
individuals whose import and export goods already cleared; and 
  (b) Re-examine compliance with the PCA process of export and import goods. 
 - PCA is implemented in cases of: 
  (a)  There is a sign of tax and trade fraud, violence of regulations on import and 
export activities management; and 
  (b)  In consideration of import and expor t goods that do not belong to point (a), 
Item 2, the post clearance audit implementation will be based on collected information from data base, custom s searchers, domestic and foreign 
organizations and individuals,  other customs administrations. 
Question 123 
Paragraph 214 is a good basis for a commitment text.  We will provide additional specific 
comments. 
Answer
: 
We are looking forward to the comments. 
Question 124 
Paragraph 209 of WT/ACC/SPEC/VNM/Rev.2: We wo uld like to bring to Viet Nam's attention 
the fact that according to our information, Viet Nam's customs authorities are still using 
minimum import prices in customs valuation, in particular as regards wines and spirits.  We 
would urge Viet Nam to ensure that not only th e provisions on customs valuation, but also the 
practical implementation of them will be ca rried out in compliance with the WTO Customs 
Valuation Agreement. 
Answer : 
Viet Nam confirms that Customs Valuation determination based on Minimum Price List was 
abolished according to Circular No. 87/2004/TT-BTC of Ministry of Finance dated 31 August 2004. 
Regarding the case mentioned in the question, Viet  Nam is willing to discuss, investigate and find the 
appropriate solution if more de tailed information is provided. 
Question 125 
Could Viet Nam please state whether it has und ertaken the reforms necessary for compliance 
with Article 11.2 of the Agreement on Implementa tion of Article VII of the General Agreement 
on Tariffs and Trade 1994 (Agreement on Custom s Valuation), obliging the Members to ensure 
that their legislation provides for the right of appeal to a judicial authority?  
Answer : 
In compliance with Article 11 of the Customs Valu ation Agreement, the contents of complaint and 
appeal have been stipulated in the Law on Comp laint and Denunciation (last amended in 2005) and 
the Ordinance on the Procedures for the Settlement  of the Administrative Cases (last amended in 
2006).  WT/ACC/VNM/44 
 Page 51 
 
 
  - Rules of origin 
Question 126 We understand that Viet Nam is in the process of drafting a decree to establish its rules of 
origin regime for customs purposes.  What  is the timetable for promulgation and 
implementation of this decree?  If possible, we would appreciate reviewing the decree in draft 
and providing comments. 
Answer
: 
An unofficial English translation of the Govern ment’s Decree No. 19/2006/ND-CP providing detailed 
provisions for implementation of the Commercial Law with respect to origin of goods was issued on 
20 February 2006 and is available th rough document WT/ACC/VNM/44/Add.1. 
Question 127 Please provide the Working Party with an Englis h translation of the draft decree mentioned in 
paragraph 219 of WT/ACC/SPEC/VNM/5/Rev.2. 
Answer
: 
An unofficial English translation of the Govern ment’s Decree No. 19/2006/ND-CP providing detailed 
provisions for implementation of the Commercial Law with respect to origin of goods was issued on 
20 February 2006 and is available th rough document WT/ACC/VNM/44/Add.1. 
Question 128 
Paragraph 220 of WT/ACC/SPEC/VNM/5/Rev.2 is a good basis for a commitment text.  We will 
provide additional specific comments. 
Answer : 
We are looking forward to receiving these comments. 
- Other customs formalities 
Question 129 We welcome the announcement in paragraph 222 of WT/SPEC/VNM/5/Rev.2 that Viet Nam 
has implemented electronic customs declaratio n and clearance procedures.  For further 
clarification: 
- Does this new system allow Electronic Data Interchange (EDI) transfer of data between 
overseas suppliers and the Customs service? 
- Does this new system enable EDI transfer of entry data between customs brokers and 
the Customs service? 
Answer
: 
Viet Nam has implemented the pilot system of  electronic customs declaration and clearance 
procedures in several big cities.  This pilot syst em has not yet allowed Electronic Data Interchange 
(EDI) transfer of data between overseas suppliers and the Customs service.  However, the system has initially enabled EDI transfer of entry data betw een customs brokers and the Customs service for the WT/ACC/VNM/44 
Page 52  
 
  purposes of customs declaration; customs regulati ons (e.g. tariff nomenclature, commodities policy, 
customs legal documents, etc.). 
- Pre-shipment Inspection 
Question 130 We support the commitment in paragr aph 226 of WT/ACC/SPEC/VNM/5/Rev.2. 
Answer
: 
We would like to thank for the comment. - Anti-dumping, countervailing duties, safeguard regimes 
Question 131 
We have reviewed the texts of Viet Nam's  ne w legislation and we will be submitting a few 
questions on them.   
Answer
: 
We take note of the comment. 
Question 132 
We support the commitment in paragraph 229. 
Answer : 
We take note of the comment. 
Question 133 
In addition, we note that Viet Nam continu es its process of transition towards a market 
economy.  Under these circumstances, special diffi culties could exist in determining cost and 
price comparability in the context of anti-dumping investigations and countervailing duty 
investigations.  In such cases, the importing WT O Member might find it necessary to take into 
account the possibility that a strict comparison  with domestic costs and prices in Viet Nam 
might not always be appropriate.   
We would like to propose the following text to  address this situation.  It should follow 
paragraph 230 in WT/ACC/SPEC/VNM/5/Rev.2. 
Price Comparability in Determining Subsidies and Dumping 
Article VI of the GATT 1994, the Agreement on Implementation of Article VI of the General 
Agreement on Tariffs and Trade 1994 ("Anti-D umping Agreement") and the SCM Agreement 
shall apply in proceedings involving exports from Viet Nam into a WTO Member consistent 
with the following: 
(a) In determining price comparability under Article VI of the GATT 1994 and the Anti-
Dumping Agreement, the importing WTO Member shall use either Vietnamese prices 
or costs for the industry under investigation or a methodology that is not based on a  WT/ACC/VNM/44 
 Page 53 
 
 
  strict comparison with domestic prices or costs in Viet Nam based on the following 
rules: 
(i) If the producers under investigation can clearly show that market economy 
conditions prevail in the industry producing the like product with regard to the manufacture, production and sale of that product, the importing WTO Member 
shall use Vietnamese prices or costs for the industry under investigation in 
determining price comparability; 
(ii) The importing WTO Member may use a methodology that is not based on a 
strict comparison with domestic prices or costs in Viet Nam if the producers 
under investigation cannot clearly show that market economy conditions prevail 
in the industry producing the like product with regard to manufacture, 
production and sale of that product. 
(b) In proceedings under Parts II, III and V of the SCM Agreement, when addressing 
subsidies, the relevant provisions of the SCM Agreement shall apply; however, if there are special difficulties in that applicatio n, the importing WTO Member may then use 
alternative methodologies for identifying and measuring the subsidy benefit which take 
into account the possibility that prevailing t erms and conditions in Viet Nam may not be 
available as appropriate benchmarks.   
(c) The importing WTO Member shall notify  methodologies used in accordance with 
subparagraph (a) to the Committee on An ti-Dumping Practices and shall notify 
methodologies used in accordance with subparagraph (b) to the Committee on Subsidies 
and Countervailing Measures. 
Once Viet Nam has established, under the national  law of the importing WTO Member, that it 
is a market economy, the provisions of subparagr aph (a) shall be terminated provided that the 
importing Member's national law contains market  economy criteria as of the date of accession.  
In any event, the provisions of subparagraph (a)(ii) shall expire 15 years after the date of 
accession.  In addition, should Viet Nam establish,  pursuant to the national law of the importing 
WTO Member, that market economy conditions pre vail in a particular industry or sector, the 
non-market economy provisions of subparagraph (a) shall no longer apply to that industry or sector. 
Answer
: 
We take note of the comment. B. EXPORT REGULATION Question 134 With reference to paragraph 242 (WT/ACC/SPEC/VNM/5/Rev.2), we request that Viet Nam 
incorporate into the report an explanation of the provisions of Article 5.4 of the Law on Changing and Amending Several Clauses of Mine ral Law (Law No. 46/2005/QH11) which states 
that "the State is to limit the export of minera ls in form of raw materials and concentrates".  
We also request Viet Nam provide an explanatio n of the WTO consistency of this measure, and 
request information on all minerals affected by this Article, and the process by which Viet Nam determines such limitations. WT/ACC/VNM/44 
Page 54  
 
  Answer
: 
In implementing the Mineral Law, minerals mee ting the quality requirements and criteria and the 
conditions stipulated in Circular No. 04 dated 2 August 2005 of the Mini stry of Industry in the period  
2005 – 2010 will be a llowed for export.  
These criteria and conditions are aimed to prevent the illegal exploitation of minerals, normally for 
exports. 
Question 135 
Paragraph 232 (WT/ACC/SPEC/VNM/5/Rev.2) – Ex port Duties on Scrap: We appreciate the 
explanations of Viet Nam on the rationale of  the export duties imposed on ferrous and non-
ferrous scrap.  However, we remain concerned as regards the effect of these measures and 
request that Viet Nam considerably reduces the current duties imposed on ferrous and non-
ferrous scrap upon accession.  
We agree with the commitment language propo sed for paragraph 234 and would like to see the 
brackets removed from it.  
Answer : 
Viet Nam is willing to discuss with interested Me mbers of the Working Party on this issue.  
The proposed language in paragraph 234 is not consistent with the proposals of some Members in the 
Working Party. In addition, this pro posed language is beyond WTO requirements. 
- Customs tariffs, fees, and charges for services  rendered, application of internal taxes to 
export 
Question 136 
As stated at the meeting of the Working Pa rty on 27 March of this year, paragraph 234 
(WT/ACC/SPEC/VNM/5/Rev.2) is unacceptable.   Should it prove necessary to include a 
paragraph on this issue, the Member will only support paragraph 235. 
Answer : 
We thank for the comment. Question 137 We do not seek the elimination of all of Viet  Nam's  export duties.  We have requested 
elimination of only some of these measures. 
Answer
: 
Viet Nam is willing to discuss with interested Me mbers of the Working Party on this issue.  
The proposed language in paragraph 234 is not consistent with the proposals of some Members in the 
Working Party.  In addition, this propos ed language is beyond WTO requirements.  WT/ACC/VNM/44 
 Page 55 
 
 
  Question 138 
Concerning the commitment language in pa ragraph 234 (WT/ACC/SPEC/VNM/5/Rev.2), we 
believe that this paragraph requires revision  and we need to determine how to reflect 
Viet Nam's commitments in regard to export duties. 
Answer : 
Viet Nam is willing to discuss with interested Me mbers of the Working Party on this issue.  
The proposed language in paragraph 234 is not consistent with the proposals of some Members in the 
Working Party. In addition, this pro posed language is beyond WTO requirements. 
- Export restrictions 
Question 139 
We support the commitment in paragr aph 243 of WT/ACC/SPEC/VNM/5/Rev.2. 
Answer : 
We would like to thank for the comment. 
- Export subsidies 
Question 140 
Question: for those subsidies eliminated upon accession, does Viet Nam envisage any other 
measure in replacement of these subsidies? 
Answer : 
After accession, Viet Nam will contin ue to provide certain subsidies, but only in a manner consistent 
with its WTO obligations. 
C. INTERNAL POLICIES AFFECTING FOREIGN TRADE IN GOODS 
- Industrial policy, including subsidies 
Question 141 We thank Viet Nam for submitting the subsidy notification concerning period 2003-2004. We 
have the following comments to make:  
1. Subsidy notification in regard to progra mmes IV. Investment In centives contingent 
upon export performance for domestic business and VI. Investment Incentives 
contingent upon export performance for forei gn-owned enterprises Viet Nam explains 
that Viet Nam will apply a transitional phasing out period of five years. 
 This can also not be considered acceptable .  The export requirement should be phased 
out upon accession as provided in the programmes VIII and IX. 
2. In regard to programme XV support for shipbuilding can Viet Nam please explain 
whether the incentives provided are only fo r exported vessels or also for vessels WT/ACC/VNM/44 
Page 56  
 
  registered domestically and provide data on  how many of the financed vessels in 2003 
and 2004 were exported and how many registered domestically? 
3. Regarding programme XVII - assistance to  enterprises facing difficulties due to 
objective reasons - can Viet Nam please explain what is meant by "fees for using State budget capital"? Does this also concern reim bursements of loans provided by the State 
or State-owned banks? 
4. As regards prohibited subsidies in gen eral, we note that the 2005 Investment Law, 
Article 32, stipulates that investments in expo rt processing zones shall be entitled to the 
incentives under the law.  Because of this  classification, all incentives listed under 
Section 2 "Investment Incentives" are also gr anted for export activities, and considered 
as prohibited export subsidies under Article 3 of the WTO Agreement of Subsidies and 
Countervailing Measures (subsidies contingent on export performance).  
 We welcome the commitment of Viet Nam to  stop granting any new export subsidies 
upon accession, and would be happy if Vi et Nam could explain its view on how 
Article 32 of the Investment Law can be considered compatible with this commitment to 
stop granting export subsidies? 
Answer
: 
1.  Viet Nam would like the Members of the WP  to accept its commitments on subsidies as these 
commitments have been exceeding the level of obligations for WTO Members with the same development level as Viet Nam.  
2.  Support for shipbuilding as mentioned in Pr ogram XV is provided regardless of whether the 
vessels are exported or not.  The data are as follows: 
 Year 2003 Year 2004 
Exported vessels 04 0 
Domestically registered vessels 12 21 
Unit: vessel 
3.  The provisions on fees for using State budget have  been repealed (this fee is similar to a tax 
on capital used by State-owned enterprises for the capital that was contributed by the State).  
4.  Article 32 of the Investment Law stipulat e investment incentives for projects investing in 
export processing zones.  In the Implementing D ecree of the Law, these investment incentives 
will be stipulated consistent with Viet Nam' s commitments on subsidies (i.e. incentives will 
not be contingent upon export performance or local contents).  Specifically, enterprises in 
export processing zones shall not be required to export their products and shall only be 
entitled to incentives in the forms of, inter alia , facilitation of procedures with respect to 
investment and rental of land and premises; fac ilitation in the supply and training of labour, 
supply of water, power and other utilities. 
Question 142 
We appreciate the hard work Viet Nam put into WT/ACC/VNM/42, its updated subsidies 
notification.  It has helped clarify a number of important issues directly relevant to the shaping 
of an appropriate commitment.  
This information, and the major changes that will occur with the implementation of the new 
Laws on Commerce, Enterprise, and Investment, will make it necessary to revise this text  WT/ACC/VNM/44 
 Page 57 
 
 
  substantially.  Additional information is necessary , however, on Viet Nam's  subsidy practices, 
including information on which sectors and firm s benefit from particular subsidy programs and 
data on the value of the subsidies remaining. 
Answer : 
We agree that the section on Industrial Policy incl uding subsidies of the Draft Working Party Report 
should be updated and revised subs tantially and shall work with the Working Party Members and the 
Secretariat to reflect fully new information, le gislative changes and improvements in commitment 
language.  At the same time, in order to facilitate th is process, Viet Nam is also revising its subsidies 
notification and will submit it to the Working Party in the near future.  
Question 143 
With respect to paragraph 257 of WT/A CC/SPEC/VNM/5/Rev.2 and the response to 
Question 222 of WT/ACC/VNM/41, which was not incorporated into the draft Working Party 
Report, we note that machinery and equipment do not qualify as inputs for duty drawback as stated in Annex II of the Agreement on Subsidies and Countervailing Measures (ASCM).  
Annex II states that " … drawback schemes can a llow for the remission … of import charges 
levied on inputs that are consumed in the pro duction of the exported product …"  Machinery 
and equipment are not consumed in the producti on process.  What steps does Viet Nam intend 
to take to bring its duty drawback sch eme into conformity with the ASCM? 
Answer
: 
We apologize for the mistake in explanation of Question No. 222 for mentioning drawback in the 2nd 
paragraph of the answer.  We would like to confir m that drawback is not applicable to imported 
machinery equipments but only applicable to impor ted inputs for producing exports.  The provisions 
on tariff exemption for machinery and equipment imported for fixed asset purposes by FDI enterprises are an incentive to attract  and encourage FDI, not related to exports. This is not customs 
duty drawback for imported inputs for producing expo rts and does not fall into the prohibited subsidy 
category under the SCM. 
Question 144 We would appreciate the insertion into the next  revision of the draft Working Party Report a 
paragraph reflecting Question and Answer 222 fr om WT/ACC/VNM/41 and the response to the 
previous question. 
Answer
: 
We apologize for the mistake in explanation of Question No. 222 for mentioning drawback in the 2nd 
paragraph of the answer.  We would like to confir m that drawback is not applicable to imported 
machinery equipments but only applicable to impor ted inputs for producing exports.  The provisions 
on tariff exemption for machinery and equipment imported for fixed asset purposes by FDI enterprises are an incentive to attract  and encourage FDI, not related to  exports.  This is not customs 
duty drawback for imported inputs for producing expo rts and does not fall into the prohibited subsidy 
category under the SCM. 
Question 145 
We would like to propose the following sen tence for inclusion in paragraph 258 of 
WT/ACC/SPEC/VNM/5/Rev.2.   WT/ACC/VNM/44 
Page 58  
 
   258. Some Members noted that a number of programmes notified in Viet Nam's 
notification on industrial subsidies appea red to be contingent upon local content 
or export performance.  In particular , the import duty reduction programme for 
products and parts of two-wheel mo torbike and mechanical-electric and 
electronic industries, the export reward programme, and the support 
programme for investment projects in manufacturing engines of two-wheel 
motorbikes seemed to provide incentives contingent upon the use of domestic 
over imported goods.  As for the investment incentive programme for domestic enterprises operating in Viet Nam, th e investment incentives programme for 
foreign-owned enterprises, the progra mme on incentives in development 
investment loan, the support programme for the development of the textiles and 
clothing industry, the export promotion programme, the trade promotion support programme, the assistance programme  to enterprises facing difficulties 
due to objective reasons, and the invest ment incentives programme for science 
and technology projects, these programmes seemed to be contingent upon export 
performance (see document WT/ACC/Viet Nam/13/Add.2).  Aspects of the Price 
Stabilization Fund which had been maintained in the Export Promotion Fund, i.e. surcharges assessed based on differen ce between national and world market 
prices, appeared to be a price band.  Th e use of these funds for export promotion 
could be an export subsidy.  A Member noted that for purposes of applying 
Articles 1.2 and 2 of the SCM Agreement,  subsidies provided to State-owned and 
state-controlled enterprises (SOEs) will be  viewed as specific if, inter alia, SOEs 
are the predominant recipients of such subsidies or SOEs receive 
disproportionately large am ounts of such subsidies.   These Members asked 
Viet Nam to revise these programmes and amend its legislation prior to 
accession to remove all prohibited elements  and ensure that investors would only 
be entitled to previously enjoyed incentives that were WTO-consistent.  
Members noted, in this respect, that Vi et Nam's draft Investment Law continued 
to incorporate export-contingent subsidi es.  Viet Nam was urged to revise the 
draft and ensure that the new Law woul d conform fully to WTO rules.  A 
Member sought a commitment from Viet Nam that, from the date of accession, 
Viet Nam would refrain from issuing any new investment licenses providing for 
prohibited subsidies.  In addition, noting that Viet Nam administered two 
separate investment incentive schemes fo r export-oriented foreign-invested and 
domestic enterprises, a Member observed that a unification of the schemes would be - economically, financially, and from a transparency point of view - preferable, and enquired about Viet Nam's plans to reform its system.   
Answer
: 
We would not accept this language as many measures mentioned here are not export subsidies with 
the meaning of the SCM. 
In addition, the interpretation of Articles 1.2 and 2 of the SCM is falling outside the scope of this 
Working Party and should be referred to other bodies of the WTO.  
Question 146 
We note that paragraph 260 of the draft Workin g Party Report contains proposed commitment 
language that is not in brackets.  We request that the Secretariat replace the brackets; we do not have enough information to agree to this language.    WT/ACC/VNM/44 
 Page 59 
 
 
  Answer : 
We take note of the comment. 
- Technical barriers to trade, standards and certification 
Question 147 We note that the Working Party draft will need to be updated in the light of developments in 
Viet Nam (e.g. passage of the framework Law on Standardization (e.g. paragraph 263) and 
revisions to the list of goods subject to mandatory inspection (paragraph 270)). 
Answer
: 
The draft Law on Standardization (now the name has been changed into "Law on Standards and 
Technical Regulations")  was submitted to the Nati onal  Assembly for consid eration and approval at 
the May Session this year (2006). 
The Decision No. 50/2006/QD-TTg of 10 March 2006 by the Prime Minister, issuing the List of 
products, goods subject to quality inspectio n.  This Decision replaced the Decision 
No. 117/2000/QD-BKHCNMT of 26 January 2000 by the Minister of Science Technology and Environment.  
An unofficial English translation of the D ecision is available for reference through 
WT/ACC/VNM/44/Add.1. 
Question 148 
We would point out particular difficulties r econciling the information in paragraph 270 and 
Table 13.  Paragraph 270 indicates the most re cent list of goods subject to mandatory quality 
inspection was published 26 January 2000, pursuan t to Decision No. 117/2000/ QD-BKHCNMT, 
but this list was subject to revision.  This is di fficult to reconcile with the next statement which 
identifies Table 13 as containing the curren t quality inspection and mandatory safety 
certification "line management" measures.  The Decision referenced in Table 13 is Decision No. 46/2001/QD-TTg of 4 April 2001.  It is not clear what the purpose and rationale is for the "line management measures’ (mandatory inspectio n/certification) contained in Table 13.  And, 
we understand the information in Table 13 has been superseded by Decision No. 41/2005. 
Answer
: 
Decision No. 50/2006/QD-TTg of 10 March 2006 by the Prime Minister issuing the List of products, 
goods subject to quality inspection. Th is Decision replaced the Decision 
No. 117/2000/QD-BKHCNMT of 26 January 2000 by the Minister of Science Technology and Environment. Therefore, the correct reference in  paragraph 270 is to Decision No. 50/2006/QD-TTg. 
Line management measures mentioned in Table 13 of the Report were based on the Decision 
No. 46/2001/QD-TTg of the prime Minister da ted 4 April 2001 and the implementing legal 
documents as issued by the line agencies. Decision No. 46/2 001/QD-TTg was repealed by Decree 
No. 12/2006/ND-CP of the Government dated 23 Ja nuary 2006 as from 1 May 2006.  We will update 
the information when all line agencies have is sued their implementing documents for Decree 
No. 12/2006/ND-CP. Table 13 only covers line manage ment, not all TBT measures.  Therefore, we 
propose to delete the sentence "Current quality inspection and mandatory safety certification line 
management measures applied in Viet Nam are liste d in Table 13." in the 6th line from the top of 
paragraph 270. WT/ACC/VNM/44 
Page 60  
 
  Question 149 
Where could reference to the following articl es of the TBT Agreement (neither in the 
Ordinance, nor in the Working Party Report) be found in the legislation? 
TBT Art. 2.3, TBT Art. 2.7, TBT Art. 2.8, TBT Art. 5.1.1, TBT Art. 5.2.2, 5.2.3, 5.2.4, 5.2.5, 
5.2.6, 5.2.7 
Answer
: 
The basic principles of the TBT Agreement's Articl es mentioned in this Question have been referred 
in the different articles, especially Articles 5, 6 of the draft Law on Standards and Technical Regulations, which is expected to be passed by Viet  Nam's National Assembly in this year.  The draft 
Law is available through document WT/ACC/VNM/44/Add.1. 
Question 150 Could Viet Nam submit to the Working Party a copy of Law No. 26-2004-QH11 on 
Amendments of and Additions to Law on Complaints and Denunciations? 
Answer
: 
Viet Nam has provided the unofficial English transl ation of the Law "On Amendment of and Addition 
to Some Articles of the Law on Complaint and Denouncement prior to the 12th meeting of the 
Working Party on Viet Nam's accession to the WTO". 
Question 151 
Question on the Working Party Report, Paragraph 261: What is the composition of STAMEQ? 
Answer : 
Directorate for Standards and Quality (STAMEQ) cons ists of organizations functioning in such main 
areas as standardization, metrology, quality mana gement, conformity assessments and productivity. 
For more information, please visit the website of STAMEQ at www.tcvn.gov.vn and  find STAMEQ/organization structure. 
Question 152 
Paragraph 262 of WT/ACC/SPEC/VNM/5/Rev.2: Could you give an update on the 
establishment of the National Accreditation Council?  On which legal basis will it operate, what 
rules will it apply? Could we see a draft text? 
Answer
: 
To date, this Council has not been established. The delay was caused by the development of Law on 
Standardization (now the Law on Standards and Tec hnical Regulations).  The establishment would be 
undertaken after the promulgation of Law on Standards and Technical Regulations. 
Question 153 Paragraph 265 of WT/ACC/SPEC/VNM/5/Rev.2: Coul d you give examples of sectors that have 
geographical, cultural and custom specificities?  WT/ACC/VNM/44 
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  Answer : 
The examples may be as follows: - Electrical and electronic appliances: Based on IEC Standards, one can choose the climate 
tests dependently on geographical condition of th e country (for example, if the country is 
located in tropical zone, humidity test and hot-humidity test may be chosen).  
- Foods and food products, garmen ts, toys may be dependent on cultural, custom specificities. 
Question 154 
Paragraph 267 of WT/ACC/SPEC/VNM/5/Rev.2: Are stakeholders also part of the drafting 
committees? 
Answer
: 
The representatives of stakeholders may participate in  the process of drafting technical regulations in 
two ways: part of drafting committees or giving  comments on proposed technical regulations when 
they appeared in the media for th is purpose.  These procedures are also contained in the draft Law on 
Standards and Technical Regulations. 
Question 155 
Paragraph 270 of WT/ACC/SPEC/VNM/5/Rev.2: We  would be interesting to get more 
information on the "proven track record of quality" 
Answer : 
"Proven track record of quality" mentioned in this pa ragraph means that for the lots of the same goods 
and after some times of importation, the results of testing/certification shows their conformity with the 
relevant standard(s) and/or technical regulation(s) on  a stable basis.  This good may be considered to 
be loosen quality inspection regime for the next imported lots. 
Question 156 
Paragraph 271 of WT/ACC/SPEC/VNM/5/Rev.2: Could you explain the delay between arrival 
at port and customs clearance? 
Answer : 
The delay between arrival at port and customs clearance, inter alias, may be caused by quality 
testing/certification (as usual these times were spec ified in the procedures set by Quality Inspection 
Bodies).  The importers always request their goods passed customs clearance as fast as possible.  So in order to meet this request of importers and the State quality control over the quality of certain 
goods (under the Control List) before their usage, quality inspection at post- customs clearance method 
is applied. Under this method, im ports arriving at the port after the compliance with other regulations 
(such as tax payment...) may have customs clearance without waiting for quality test report/certificate. 
Quality inspection may be carried out after customs clearance at places other than port of entry (such 
as the inside the warehouse or even in the store of the importer).  This facilitates clearance of goods at 
port of entry and the importers do not need to pay th e fee for detention at port of entry while awaiting 
quality test report/certificate. WT/ACC/VNM/44 
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  Question 157 
Question on the Ordinance on Standardization, Article 3: unclear definitions concerning 
standardization, includes also technica l regulations, Conformity assessment?  
Answer
: 
One objective of this Law is to present as much as possible the main principles of the TBT Agreement 
as well as of ISO recommendations, guidance, especially  in aspect of the transparency obligations and 
involvement of all impacted parties in processes of  standards and technical regulations development 
for the purpose to make these documents effective and efficient.  
Question 158 
Questions on the Ordinance on Standardization:   
- Article 4.2: Could that be elaborated further? To whom is this applied, under which 
circumstances etc; 
- Article 4.4: Reference to regional standards (what is their definition, also Article 11); 
- Article 4.5: Could the word adequately be explained? - Article 5.3: Stronger commitment would be appreciated 
- Article 7.2, 7.3 and 7.4: how is the work between the Ministries Coordinated? 
- Article 11: Could you define regional standards? (Article 4.4) - Article 17: What is the relation between organization standards and national standards? 
What about the participation in the standardization process of organization standards and the possibility to comment, and their subsequent publication? 
- Article 17.3: This Article should state at least that these standards should be based on 
international standards; 
- Article 20.1: Could you provide with a definition of foreign standards, when would they 
be applicable? 
- Article 26: Could you explain why words are in brackets? - Article 27: International standards should co me first and not at the same level as the 
others; 
- Article 28.3: "Urgent problems" wordings are too broad, use for example wordings as in 
Article 29.2; 
- Article 31: What is the delay foreseen betw een the approval of the technical regulation 
and its publication? Could there be a wording that this should be done promptly? (Article 2.11); 
- Article 40.3: Could you explain the functioning of the Registry? What about the 
requirements for foreign enterprises? 
- Article 41.1: Could we get a list of these products?  
Answer
: 
Please refer to the new draft of Law on Standards and Technical Regulations 
(WT/ACC/VNM/44/Add.1). 
- Sanitary and phytosanitary measures 
Question 159 We welcome the progress Viet Nam is making  towards implementing the SPS Agreement.    WT/ACC/VNM/44 
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  In particular, we appreciate Viet Nam's  a ssurance in paragraph 294 of the draft Working 
Party Report that the new SPS enquiry point "would provide for a suitable timeframe for public comment on all draft SPS standards and regulations of no less than 60 days, …" 
Answer
: 
As mentioned at Decision No. 117/QD-BNN-TCCB da ted 18 April 2006 of Minister of Agriculture 
and Rural Development issuing Regulation on orga nization and operational ordination of Viet Nam 
SPS National Office: "Viet Nam SPS National Offi ce will inform all draft SPS standards and 
regulations to WTO Secretary with suitable time of no less than 60 days for public comment". 
Question 160 
Concerning the labelling of GMOs, we note that Vi et Nam agreed to delete mention of this from 
paragraph 296 of document WT/ACC/SPEC/VNM/5 /Rev.2.  Would Viet Nam clarify whether 
this entails the repeal of Decision No. 212/2005/QD -TTt establishing regulations for the trade in 
and use of GMOs?  Whatever the case, Viet Nam should also clarify whether products 
containing GMOs will be treated in an identi cal manner to products not containing GMOs.  
Does Viet Nam specifically undert ake to comply with WTO rules and the DSB rulings on the 
treatment of GMOs? 
Answer : 
We agree to remove paragraph 196.  As indicated , labelling in Viet Nam is regulated by Decision 
No. 178/1999/QD-TTg of 30 August 1999.  Decisi on No. 178 is going to be repealed by a 
Government's Decree which will contain the labelli ng provisions in accordance with international 
practice and based on scientific evidence.  Those provisions on labelling contained in  Decision 
No. 212/2005/QD-TTg and other legal documents issu ed by the Government agencies that are 
inconsistent with this De cree would be ineffective. 
Viet Nam has committed to implement the SPS Agreemen t, including rules that may be applicable to 
treatment of GMOs, from the date of accession. 
Question 161 
As to Decision No. 212/2005/QD-TTt by which Viet Nam established a regulatory framework 
for the trade, use and release into the envi ronment of genetically modified organisms: 
(a) What is the status of the implementation of the National Biosecurity Framework? (b) Could Viet Nam clarify whether its reg ulatory framework provides for differential 
treatment with regard to approval for GMOs to be released into the environment in Viet Nam, as opposed to GMOs brought into the country for food, feed and/or 
processing — taking into account, above all, that other Members are looking at the two 
situations with a view to ensuring a reliable supply without creating unnecessary barriers to trade? 
(c) Given that Viet Nam has historically imported a number of products from GMO-
producing countries, we would like to know the scope of the new mandatory labelling 
requirements according to method of pro duction.  Could you please provide further 
information on the consistency of these requirements with the relevant WTO obligations? WT/ACC/VNM/44 
Page 64  
 
  Answer
: 
Viet Nam has committed to implement the SPS Agreemen t, including rules that may be applicable to 
treatment of GMOs, from the date of accession. 
As indicated, labelling in Viet Nam is regulated by Decision No. 178/1999/QD-TTg of 
30 August 1999.  Decision No. 178 is going to be repealed by a Government's Decree which will 
contain the labelling provisions in accordance with  international practice and based on scientific 
evidence.  Those provisions on labelling containe d in  Decision No. 212/2005/QD-TTg or any legal 
documents issued by the Government agencies that  are inconsistent with this Decree would be 
ineffective. 
Question 162 
We note concerns with Viet Nam's  restrictions on the entry of products to no more than two-
thirds of their expiration date.  Viet Nam has ex plained in paragraph 286 that this relates only 
to "raw materials and food additives".  We reque st that Viet Nam provide more information in 
this paragraph (and by reference to a table) abou t the products covered by this limitation and 
their HS codes.  Viet Nam also explains later in the paragraph that in relation to "pre-packaged 
food", it only required food labels to indicate  either the manufacture date, expiration date or 
shelf-life.  Hence, we seek clarification as to which products the "shelf-life" limitation 
mentioned at the top of the paragraph applies and whether Viet Nam will take steps to remove this unnecessary and trade-restrictive re quirement in relation to these products. 
Answer
: 
This measure only applies to raw materials and fo od additives that will later be used for producing 
food products.  There is no list of specific commoditi es.  The reason, as explained, is only to combat 
trade frauds. 
Concerning regulations on labelling of pre-packaged  food: in Paragraph 2, Article 11.a of Decision 
No. 178/1999/QD-TTg dated 30 August 1999 of the Pr ime Minister issuing Regulation of Labelling 
for locally produced, imported and exported produc ts state that: "Some pr oducts such as food, 
cosmetics and pharmaceutical products sha ll be labelled with expiration date". 
- Trade-related investment measures 
Question 163 This section will require substantial updating a nd redrafting based on the new regime on 
incentives established by the new Investment Law.   
Answer
: 
Viet Nam has updated the section on TRIMs to refl ect new regulations in the Law on Investment.  
Question 164 
Paragraphs 302-305 list various programs.  We will be looking for information on their 
elimination or alteration to comply with TRIM s obligations, so that the draft commitment in 
paragraph 308 can be considered accurate.  WT/ACC/VNM/44 
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  Answer : 
Measures that have been and will be taken to fu lly comply with the obligations of the TRIMs 
Agreement include:  
-  Measures mentioned in paragraphs 305 and 307 of WT/ACC/SPEC/VNM/5/Rev.2; 
-  The Law on the Amendment of and Additi on to some Articles of the Law on Foreign 
Investment 2000 removed the foreign ex change balancing requirement; and 
-  The Law on Investment and its Implementing Decrees have removed all measures indicated 
in the Illustrative List of the TRIMs Agreemen t, which were formerly conditions for granting 
investment licences or for receiving investment incentives.  
Question 165 
We note this section requires complete re-draftin g to remove old material that is no longer 
valid.  Viet Nam is requested to provide a full description of measures it has taken in recent legislation and any implementing regulatio ns to remove prohibited TRIMs.   
Answer
: 
Viet Nam has updated the section. Measures that have been and will be taken to fully comply with the 
obligations of the TRIMs Agreement include:  
-  Measures mentioned in paragraph 305 and 307 of WT/ACC/SPEC/VNM/5/Rev.2; 
-  The Law on the Amendment of and Additi on to some Articles of the Law on Foreign 
Investment 2000 removed the foreign ex change balancing requirement; and 
-  The Law on Investment and its Implementing Decrees have removed all measures indicated 
in the Illustrative List of the TRIMs Agreemen t, which were formerly conditions for granting 
investment licences or for receiving investment incentives.  
- Free zones, special economic areas 
Question 166 We understand that the legislativ e basis for Viet Nam's SEZs will soon change, i.e. that the 
implementing Decree (regulations) to the new In vestment Law will replace the legislative basis 
noted in paragraph 309.   
We also note that the programs that provide the incentives in the SEZs are being eliminated or 
altered, as will be discussed in the Subsidies sectio n of the report.  So we expect broad changes 
to this section. 
Answer
: 
Viet Nam shall update paragraph 309 and other paragr aphs to reflect new regul ations in Implementing 
Decree of the Law on Investment.  
Question 167 
We support the draft commitment language  we proposed in paragraph 316 of 
WT/ACC/SPEC/VNM/5/Rev.2 and will work with Viet Nam and other Working Party members 
to craft agreed language. WT/ACC/VNM/44 
Page 66  
 
  Answer
: 
We take note of the comment. 
Question 168 
Paragraph 316 of WT/ACC/SPEC/VNM/5/Rev.2: Viet Nam is requesting a seven-year 
transitional period to phase out prohibited export subsidies in the form of investment incentives.  
We do not find this acceptable and urge Viet  Nam to abolish all prohibited subsidies upon 
accession. 
Answer : 
Viet Nam would like the Members of the Work ing Party to accept its commitments on export 
subsidies as these commitments have been exceedi ng the level of obligations for WTO Members with 
the same development level as Viet Nam.  The period  referred to in the question has been reduced to 
five years.  
- Government procurement 
Question 169 We renew our invitation to Viet Nam to beco me an observer to the Committee on Government 
Procurement upon accession as a first step to wards joining the Agreement on Government 
Procurement. 
Answer
: 
We thank for the suggestion and w ill consider it after WTO accession.  
- Trade in transit 
Question 170 
We note that this section needs to be updated to  reflect changes in Viet Nam's  new Commercial 
Law. 
Answer : 
The Commercial Law of 2005 sets forth provisions on trade in transit as follows: 
Article 242: The right of transit of goods 
 1.  All commodities owned by foreign organizations and individuals are permitted to transit in 
Viet Nam’s territory and have to clear the customs procedures at the import and export border gates in accordance with the pr ovision of the law, except: 
 a) Commodities which are arms and ammunition, explosive and other commodities of high 
danger, except cases permitted by the Prime Minister; 
 b)  Commodities subject to business prohibition, import and export prohibition may only 
transit in Viet Nam territory under th e permission of Minister of Trade. 
 2.  Transit goods when export and transpor tation means for transit goods exiting Viet Nam 
territory shall be the imported goods and tran sportation means entering Viet Nam territory.  WT/ACC/VNM/44 
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   3.  Foreign organization and individuals transit in Viet Nam’s territory shall hire Vietnamese 
business persons doing transit business, except the case stipulated in Part 4 of this Article. 
 4.  The transit of goods in Viet Nam’s territory of foreign organizations and individuals by hiring 
foreign business persons shall be conducted in accordance with in ternational treaties to which 
the Socialist Republic of Viet Nam is a signatory and shall abide by the provisions of Vietnamese law on exit, entry and transportation. 
- Agricultural policies 
Question 171 We note the dueling commitment language in paragraph 343 of the draft Working Party 
Report.  We can support the second brackete d text as the basis for a commitment. 
Answer
: 
Viet Nam can only accept the first bracketed text.  It is noted that Viet Nam's commitment in this area 
has exceeded the level agreed upon by all WTO Members in the Doha Round. 
- Trade in civil aircraft 
Question 172 We renew our invitation to Viet Nam to become  a Member of the Agreement on Trade in Civil 
Aircraft after accession. 
Answer
: 
We thank for the suggestion and w ill consider it after WTO accession.  
- Textiles regime 
Question 173 
We would like to see the further development of  this section with reference to Viet Nam's  
subsidies and other supports for textile goods production and export.   
From our perspective, it is information importan t for the completion of the factual portion of 
this section. 
Answer : 
We take note of the comment and would also like to take note of the fact that the WTO Agreement  on 
Textiles and Clothing has expired. 
- Core labour standards 
Question 174 We again request that the brackets be removed on  this section; it provides information that is 
important. WT/ACC/VNM/44 
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  Answer
: 
We agree with the suggestion by several Members of the Working Party that this section be deleted. 
We have not seen a labour section in any Working Party Report and would like the Working Party to 
maintain what has been the practice. 
V. TRADE-RELATED INTELLECTUAL PROPERTY REGIME 
- General 
Question 175 This section needs to be revised in light of the passage of the new Civil Code amendments (entry 
into force 1 January 2006) and the new Intellectua l Property Law (entry into force 1 July 2006). 
Answer
: 
At the time being, Viet Nam is updating the Draf t Report in accordance with the Civil Code 2005 
(entry into force as of 1 January 2006) and the Intellectual Property Law (entry into force as of 1 July 2006) in the following manner: those contents  that have been changed by the new laws will be 
revised accordingly and those contents that rema in unchanged by the new laws (i.e. the new laws 
retain the same what was in the previous system) will be affixed with corresponding provisions of the 
new laws.  We believe that the update will not change  the nature of the contents that are explained, 
examined and on-going updated during the last period.  
Question 176 
At this time it is not possible to complete a full and definitive analysis of TRIPS compliance in 
the area of enforcement, because many aspects of  TRIPS procedural obligations are left to be 
fleshed out by various ordinances, implementi ng regulations, decrees, and circulars.   
Answer
: 
In general, in terms of form, the Civil Code 200 5, the Intellectual Property Law 2005 and the decrees 
and circulars guiding the implementation thereof whic h is to be promulgated this year will form a 
complete and uniform system of laws and regul ations on intellectual pr operty and substitute the 
prevailing one.  However, in terms of contents, th e new system substantially inherits the prevailing 
one basically.  Besides, it also has certain additions  and amendments, all targeted at compliance with 
provisions of the international agreements with in the framework of WTO as well as with new 
situation of Viet Nam in the context of WTO accession. 
Question 177 
It would help speed the process, if Viet Nam could provide a schedule of how it plans to 
implement the new Intellectual Property law in the areas of civil, criminal, administrative, and 
border measures. 
Answer : 
According to the Resolution No. 45/2005/QH11 on the implementation of the Civil Code 2005, 
regulations guiding the implementation of the Civ il Code 1995 remain in force until the Government 
promulgates substituting provisions.  WT/ACC/VNM/44 
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  The formulation and implementation of provisions on  intellectual property in the Civil Code 2005 and 
the Intellectual Property Law have been carried out systematically under a plan.  
In the program of formulation of regulations of the year 2006, the Government of Viet Nam has 
planned to promulgate the following Decrees by 1 Ju ly 2006 (the entry into force of the Intellectual 
Property Law for making detailed pr ovisions and guidance to the implementation of the Intellectual 
Property Law). 
- The Decree guiding the implementation of the provisions on copyrights and related rights of 
the Intellectual Property Law; 
- The Decree guiding the implementation of the provisions on industrial property of the 
Intellectual Property Law; 
- The Decree guiding the implementation of the pr ovisions on plant varieties of the Intellectual 
Property Law; 
- The Decree guiding the implementation of the provisions on the enforcement of intellectual 
property rights of the Intellectual Property La w (including detailed regulations on the State 
administration of intellectual property, the enforcement of intellectual property rights with 
civil remedies, administrative remedies, intellect ual property rights control with regard to 
import and export and assessment on intellectual property). 
The Drafts of the above decrees are scheduled to be published for comments of ministries, industries, 
concerned organizations and individuals in May 2006. 
In addition, the Ministry of Culture and Informati on, the Ministry of Science and Technology and the 
Ministry of Agriculture and Rural Development ha ve planned to promulgate circulars guiding the 
implementation of procedures of registration of copyrights and related rights, industrial property 
rights and rights in plant varieties, a circular guiding the implementation of  provisions on industrial 
property representatives and a circul ar guiding the implementation of procedures of transfer of 
industrial property. 
Question 178 
It is unclear how the new laws will interact wi th pre-existing ordinances, decrees, rules, and 
regulations.  Over the past five years, we have  reviewed numerous ordinances, decrees, rules, 
and regulations.   
- Given that the Civil Code amendments and the new Intellectual Property Law provide 
for further implementing provisions, what is the status of the pre-existing ordinances, decrees, rules, and regulations?   
- When will Viet Nam promulgate ordinances,  decrees, rules, and regulations under the 
new laws? 
Answer
: 
The above-mentioned decrees and circulars when en ter into force will substitute the existing ones 
which have the same scope of regulation.  In gene ral, in terms of form, the Civil Code 2005, the 
Intellectual Property Law 2005 and the decrees and circulars guiding the implementation thereof 
which is to be promulgated this year will form a co mplete and uniform system of laws and regulations 
on intellectual property and substitute the existing sy stem.  However, in terms of contents, the new 
system substantially inherits the existing system.  Besides, it also has certain additions and amendments, all targeted at compliance with provisi ons of the international agreements within the 
framework of WTO as well as with the new situation of Viet Nam in the context of WTO accession. WT/ACC/VNM/44 
Page 70  
 
  Question 179 
Throughout the drafting process of the amende d Civil Code and the new Intellectual Property 
Law, we advocated that the Civil Code provisions on intellectual property be kept to a minimum so as not to conflict with the Intell ectual Property Law.  We now note that the 
amended Civil Code contains numerous intellect ual property provisions that overlap with and 
are inconsistent with the Intellectual Property Law.  We believe that there should not be 
overlapping and conflicting provisions in these two laws because any such conflict will create 
uncertainty about the laws’ implementation.   
Please explain how Viet Nam intends to remed y the inconsistencies between these two laws. 
Answer
: 
The Civil Code, as a "master" law, regulates civ il relations, including relations on intellectual 
property.  Therefore, the Civil Code 2005 has reta ined certain provisions on intellectual property 
enough to form basic civil principals of intellectual property rights. 
The Intellectual Property Law, as a uniform law regulating intellectual property relations, is not 
confined to civil aspects but also  deals with administrative and penal aspects of intellectual property 
rights.  The Intellectual Property Law complies with and details provisions on basic civil principals of 
intellectual property rights provided for in the Civil C ode 2005.  In addition, to ensure the completion 
of the Intellectual Property Law as a special law re gulating intellectual property relations, there has 
been repeated certain provisions on intellectual prope rty provided for in the Civil Code 2005 in it. 
Therefore, even though there are some repeated provisions, the Intellectual Property Law has not 
conflicted with the Civil Code 2005 in term of contents.  Moreover, Article 5 (2) of the Intellectual 
Property Law expressly specifies the principle on the a pplication of laws as follows: "Where there is 
any difference between provisions on intellectual prope rty rights of this Law and those of other laws, 
the former shall be applied".  Thus, in Viet Na m's opinion, the implementation of these two laws will 
not meet any difficulty. 
Question 180 
Articles 7(2) and 7(3) of the Intellectual Pr operty Law appear to give the State powers to 
interfere with a rightholder’s exercise of its excl usive rights, including by compelling licensing.  
These particular articles do not include any of  the limitations or procedural requirements set 
out in the TRIPS Agreement.  Under TRIPS, some Intellectual Property Rights, e.g. trademarks, are not subject to compulsory licensing.  Please clarify the meaning of these 
Articles and explain how they will be applied in a manner that complies with the obligations 
that Viet Nam will assume under the TRIPS Agreement. 
Answer
: 
The Article 7 on limitations to Intellectual Property Rs, as whole in general and its Sections 7(2) and 
7(3) in particular are introduced into the Intellect ual Property Law for the sole purpose of striking the 
balance of interest between the individuals (i.e . the Intellectual Property Rights owners) and the 
public (the society) with a view to creating incentives for the creative research and business 
development towards the higher living standards of the society in terms of material and spiritual 
conditions.  
Particularly, Article 7(2) expresses the principle that the Intellectual Property Protection does not 
affect either the Intellectual Property Right s owner’s obligations with respect to the legitimate interest  WT/ACC/VNM/44 
 Page 71 
 
 
  of the other individuals and entities or his obligations  under the other laws and re gulations.  That is an 
obvious principle having been recognized both in national laws and international law. 
Article 7(3) represents the power of the State to in terfere in the urgent circumstances for the purposes 
of national defence, security, people living and othe r interests of the society.  That is a permitted 
exception under the TRIPS Agreement with regards to  the exclusive rights of the Intellectual Property 
Rights owner. Furthermore, Article 7(3) stipulates clearly that the exercise of the State’s authority 
shall be "subject to appropriate conditions", rath er than "not include any of the limitations or 
procedural requirements as commented by a Working Party Member.  For instance, when Article 7(3) 
is applied for such a particular intellectual propert y object as inventions, it is required to conform to 
the conditions and procedures set forth in Section 3 of Chapter X concerning compulsory licensing of 
inventions; and as for plant varieties to those set forth in articles from 195 to 197 of Chapter XV, as 
for a protected plant variety.  
This also means that the application of Article 7(3) of the Intellectual Property Law 2005 would be 
very restricted, on the basis of case-by-case consideration. 
The old Civil Code 1995 and the current Civil C ode 2005, and the Intellectual Property  Law do not 
provide for the compulsory licensing as to trademar ks, therefore they are not inconsistent with the 
TRIPS Agreement. 
- Copyright and related rights  
Question 181 
Article 8(1), when applied to copyright and related rights, would constitute an impermissible 
content-based restriction of rights.   
- Please confirm that this provision will not be  used to strip copyright and related rights 
holders of their rights to works that Viet Nam deems "contrary to the social morality, 
public order or harmful to national defence and security." 
Answer : 
We confirm this understanding. 
Question 182 
Article 17(4) appears to create an unacceptable hi erarchy of the rights of authors over related 
rights. "Performances, phonograms and broadca sts and satellite signals carrying encrypted 
program shall only be protected as stipulated in paragraph 1, 2, 3 of this Article provided that 
they do not influence the copyrights exercise."  The need for the authorization of the author 
does not cease to exist because the authorization of the performer or producer is also required, 
and vice versa.  It may be that what is meant here is that performances, phonograms and broadcasts and satellite signals carrying encrypted program are protected without prejudice to the rights in any underlying copyright work.  
- Please clarify the intent of Article 17(4). 
Answer
: 
It means that performances, sound recordings, vi deo recordings, broadcasts and satellite signals 
carrying encrypted program shall only be protected without prejudice to copyrights. WT/ACC/VNM/44 
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  Question 183 
The new "broadcasting" right defined in Arti cle 4(11) is only provided to performers 
(Article 29(3)(c)) and broadcasters (Article 31(1)(a )).  Under Article 20(1)(d), authors and other 
related rights owners are granted a lesser right "to communicate the work to the public by wire 
or wireless means, through electronic information network or by any other technical means."    
- Please explain the reason for these differences. 
- Please explain how Viet Nam intends to im plement the Berne and TRIPS requirement of 
a presumption of copyright ownership. 
Answer
: 
-  "Broadcasting" means the transmission of sou nds or of images or of sounds and images of 
works, performances, sound recordings, video reco rdings and broadcasts to the public by wire 
or wireless means, including through satellite, the public may access them from a place and at 
a time individually chosen by them. 
 "Communicating" the work to the public by wire or wireless means, through electronic 
information network or by any other technical means. There for "broadcasting" is one means 
of "communicating". 
-  Viet Nam has the obligations to implement the provisions of an international treaty to which 
Viet Nam is party. 
 In cases where an international treaty which th e Socialist Republic of Viet Nam is party to 
contains provisions different from the Vietnam ese Laws, the provisions of such international 
treaty shall be applied.  
Question 184 Article 30 appears to provide sound recording pro ducers with an exclusive right to "distribute 
to the public the original or copies of the phonogram by sale, rental or distribution or any other technical means accessible to the public."  The Article goes on to say, however, that "[t]he 
producer of a phonogram shall have the right to get material benefits when his or her 
phonogram is distributed to the public.  This latte r provision appears to contradict the exclusive 
right provision by providing only a remuneration right.   
Please explain what is intended by the second sentence of Article 30. 
Answer
: 
There is no contradiction between paragraphs 1 an d 2 of Article 30 because the right owner having 
material benefits when his/her exclusive rights are exploited. 
Question 185 Please explain what is meant by the Article 23 provision that requires anyone making use of folk 
artistic and literary works to "protect their real values."  WT/ACC/VNM/44 
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  Answer : 
The term of "protect their real values when usi ng a work" means there is no amendment, cutting or 
distortion of the work and it must indicate the origin of the work. 
Question 186 
Please clarify that the provisions in Article 42 relating to State ownership of copyright related 
only to works created by Viet Nam's citizens. 
Answer : 
Article 42 shall be applied to circumstances when works created by Vietnamese citizens or when 
foreign persons or legal entities transfer  their works to the Vietnamese State. 
Question 187 
Please explain how Viet Nam will protect pre-exis ting works as required by Berne Article 18, as 
incorporated by the TRIPS Agreement. 
Answer : 
Works protected in Viet Nam shall be in accordance  with the provisions of Vietnamese Laws and the 
provisions under international treati es to which Viet Nam is a party. 
In cases where there is any difference between the provisions of the Vietnamese laws and of an 
international treaty, to which the Socialist Republic of Viet Nam is a party to deal with a subject 
matter, the provisions of the intern ational treaty shall be applied. 
Question 188 
Please confirm that Article 25(1)(d) will not allo w libraries and archives to  make and distribute 
unlimited copies of works in digital form. 
Please confirm that the 25(1)(k) is limited to the importation of a single copy for personal use. 
The exception in Article 25(1)(e) appears to conf lict with the Berne and TRIPS three-step test, 
as it provides that it is permissible to put on stage "dramatic works and other forms of performing arts in cultural gatherings or in  promotional campaigns."  The terms "cultural 
gatherings" and "promotional campaigns" are capa ble of being interpreted so as to allow for 
commercial gain other than through sale of tickets. 
Answer
: 
Article 25 (1.d) shall be provided in detail in  the Decree of the Government guiding the 
implementation of a number of articles on copyrigh t and related rights of the Intellectual Property 
Law. 
Article 25 (1.k) shall be provided in detail in  the Decree of the Government guiding the 
implementation of a number of articles on copyrigh t and related rights of the Intellectual Property 
Law. 
In that case this provision meets requirements of cultural performances to the public without 
commercial purposes. WT/ACC/VNM/44 
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  Question 189 
The exceptions provided for in Article 26 and 33 appear to be overbroad and in our view 
inconsistent with TRIPS.  Broadcasters must be  required to obtain authorization from right 
holders in order to provide for a meaningful broadcasting rights and a right to authorize communication to the public. 
Answer
: 
The exceptions provided for in Article 26(1) shall be  only applied with the conditions of no influence 
to normal exploitation of work, no prejudice to the rights of the authors or copyright owners; it must show information of names of authors as well as th e origin and sources of works; it shall not be 
applied to works of motion pictures. 
The exceptions provided for in Article 33(1) shall be  only applied with the conditions of no influence 
to normal exploitation of the performance, phonogr ams, video tapes, broadcasting programs and no 
prejudice to the rights of the performers, phonogram  and video-tape produ cers, and broadcasting 
organisations. 
Broadcasting organisations in Viet Nam are author ities having functions of pr opaganda and education 
of laws, and operating by the State finance, ther efore, these organisations shall pay royalties and 
remuneration only when they broadcast programs under other sponsors, a dvertisement or other 
manner of collecting fees. 
Question 190 
We would like to propose further modification to paragraph 386 of 
WT/ACC/SPEC/VNM/5/Rev.2: 
 386. [Some Members observed that it had b een brought to their attention that some 
agencies of the Government of Viet Nam used computer software that had not been authorized by the right holder.  Th e Members also noted that an agency of 
the Government of Viet Nam and a State-owned enterprise were providing 
unlicensed cable television progra mming to Vietnamese customers.   T h e y  
requested that such practices should be eliminated by Viet Nam in the context of 
its accession to the WTO and the implemen tation of the obligations in the WTO 
Agreement on TRIPS.  The representative of Viet Nam confirmed that prior to the date of accession, Viet Nam would issue appropriate legal instruments mandating that all government agencies us e only legitimate computer software 
and only as authorized by the right holder.  Such measures shall actively 
regulate the acquisition and management of all software for use by government 
agencies.  Such management may take the form of procedures, such as preparing and maintaining inventories of software present on agency computers, and inventories of existing software licenses.  The representative of Viet Nam 
also confirmed that prior to the date of accession, Viet Nam would issue 
appropriate legal instruments mandating that all cable television purveyors 
provide only fully licensed products to their customers.  The Working Party took 
note of these commitments.] 
Answer : 
In implementing the Civil Code 2005 and the Inte llectual Property Law 2005 and the international 
treaties that Viet Nam is a party, Viet Nam woul d issue appropriate legal instruments strengthening 
the use of legitimate computer software, in  particular within Government agencies.  WT/ACC/VNM/44 
 Page 75 
 
 
  The provision of unlicensed cable television programming by one company has been stopped right 
away after the issue was brought to the Government's attention. 
- Patents and undisclosed information  
Question 191 
Article 123 of the Intellectual Property law states that the owner of an industrial property right 
is permitted to use its industrial property object  according to certain uses listed in Article 124. 
Article 123 further states that the industrial property holder is prohibited from using the industrial property object according to listed prohibitions in Article 125.   
(a) Please explain how these provisions, or any other provisions of the Intellectual Property 
Law, comport with TRIPS Article 28(1), whic h confers to the patent owner the exclusive 
right to prevent third parties, without the patent owner’s consent, from the acts of 
making, using, offering for sale, selling or importing a product.  
(b) Please state which provision in the Intellectual Property Law complies with TRIPS 
Article 28(2) and explain how it complies. 
Answer
: 
(a) The rights conferred to the owner of an inve ntion patent as required by Article 28(1) of the 
TRIPS Agreement are set out in articles 123.1.b,  124.1 and 125 of the Intellectual Property  
Law as follows:    
Article 123.1.b reads:  
  "The Intellectual Property  owner has the right to prevent others from using the respective 
industrial property subject matter in accordance with Article 125 of this Law". 
Article 125 reads:  
  "1.  The owner of an industrial property subj ect matter (...) has the right to prevent others 
from using the respective industrial property subject matter unless such use falls into the cases 
provided for in paragraph 2 [permitted exceptions to the exclusive rights of the owners of inventions, industrial designs, layout designs and trademarks] or paragraph 3 [permitted 
exceptions to the rights of the owners of business secrets] of this Article." 
Therefore, according to articles 123.1.b and 125, except for the cases of the permitted exceptions, the 
owner of an invention has the right to prevent others from using his invention , while the concept 
"using an invention" is defined clearly in Article 124 as follows: 
 "1. The use of an invention means the conduct of the following acts: 
  a) Manufacturing the protected product; 
  b) Applying the protected process; 
c) Exploiting the uses of the protected product or a product obtained by the 
protected process; 
d) Circulating, or advertising, offering, stocking for circulating the product 
provided for in subparagraph c of this paragraph; 
d') Importing such product as provided for in subparagraph c of this paragraph." WT/ACC/VNM/44 
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  This means that: 
- Where the patented invention is a product, the patent owner has the right to prevent third 
parties from performing any of the following acts: manufacturing, exploiting, circulating, 
advertising, offering, stocking for ci rculating and importing such product; and 
- Where the patented invention is a process, th e patent owner has the right to prevent third 
parties from performing any of the following acts: applying the patented process, exploiting 
the uses of the product obtained by the patented  process, circulating, advertising, offering, 
stocking for circulating and importing the product obtained by the patented process. 
The aforesaid provisions are fully consistent with  the contents of Article 28(1) of the TRIPS 
Agreement.  To this point, it is affirmable that the provisions set forth in Articles 123.1.b, 124.1 and 
125 of the Intellectual Property  Law satisfy the requirements under Article 28(1) of the TRIPS.  
- The provisions of articles 123.1a and 123.1c of the Intellectual Property  Law is in accordance 
with Article 28(2) of the TRIPS. Particularly, Article 123.1 reads: 
"1. The owner of an industrial property subject matter shall have the following property 
rights: 
a. To (...) or permit others to use the industrial property subject matter in 
accordance with Article 124 an d Chapter X of this Law; 
b. (...); 
c. To dispose off the industrial property subject matter in accordance with 
Chapter X of this Law;" 
Reading into the context of the above-mentioned provision, the right to permit others to use the 
industrial property subject matter includes the right to conclude the licensing contracts; the right to dispose off the industrial property subject matter incl udes the right to assign it and the right to let it be 
inherited.   
To this point, it is affirmable that the provision s of Articles 123.1a and 123.1c of the Intellectual 
Property Law satisfy Article 28(2) of the TRIPS.   
Question 192 Regarding Article 146(d) of the Intellectual Property law, please explain what the 
"remuneration frame" provided for by the Government is.  How does the Government 
determine the amount of remuneration in the "remuneration frame"?  
Answer
: 
Regarding Article 146.1(d) of the Intellectual Prope rty Law, "remuneration fra me" is the ceiling level 
and principles to determine the remuneration with in such frame.  Accord ing to the intellectual 
property Law, the State authority will base on th e remuneration frame to determine an adequate 
remuneration (Article 146.1(d)) and fix such remune ration as a condition of use of invention in the 
decision on compulsory licensing of invention. 
The specific content of the remuneration frame will be  provided for in the Decree stipulating in details 
and guiding the implementation of certain provisions  on industrial property rights in the Intellectual 
Property Law (The Decree is expected  to be promulgated by July 2006).  In the light of the draft 
Decree, the remuneration shall be determined taking into account th e economic value of right of use 
as transferred, on the basis of following elements: 
- The contractual licensing price of the invention;  WT/ACC/VNM/44 
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  - Investment fund for creating the invention; 
- Profits gained through using the invention; 
- Remaining duration of validity of the patent; and 
- The need of licensing the invention. 
Question 193 
Regarding the "Compulsory licensing inventions" section of the Intellectual Property Law 
(found in Section 3), please state which provision complies with Article 31(j) of the TRIPS Agreement and explain how it complies. 
Answer
: 
In the legal system of Viet Nam, possibility of review of administrative decisions including any 
decision relating to compulsory licensing which provi des for the remuneration for the use of invention 
under a compulsory licence by judicial or by a distinct higher authority is provided for in the Law on Claim and Denunciation and the Ordinance on the Settle ment of Administrative Cases. Particularly, 
Article 147.2 of the Intellectual property Law stipul ates that "A decision on compulsory licensing of 
inventions shall provide for appr opriate scope and conditio ns of use in accordance with Article 146 of 
this Law", including condition "to pay the holder of exclusive right to use invention an adequate 
remuneration" (Article 146.1.d).  Therefore, th e decision on the payment of remuneration is a 
mandatory content of the decision on licensing.  Mo reover, Article 147.4 provides that "A decision on 
compulsory licensing and a decision on refusal of compulsory licensing shall be subject to an administrative appeal or a judicial litigation in accord ance with the laws".  It follows that the review 
of decisions regarding the payment of remunerati on can be implemented under administrative appeal 
or judicial litigation against a part of decision compulsory on licensing invention provided for in 
Article 147.4. 
To this point, it can be affirmed that Articles 146.1.d, 147.2 and 147.4 of the Intellectual Property 
Law as combined are fully compliant with the requirement of Article 31(j) of TRIPS. 
Question 194 
Please state which provision in the Intellectual Property Law complies with TRIPS Article 34 
and explain how it complies. 
Answer
: 
Article 203.4 of the Intellectual Property Law is fu lly compliant with Article 34 TRIPS on the burden 
of proof of defendant in the case of patented process , particularly, it reads: 
"In a lawsuit against an infringement of the right to a patented invention, which is a 
production process in the following cases, the defendant shall prove that his or her products 
are made by a process other than the protected process: 
a)  The product made by the protected process is new; 
b)  The product made by the protected process is not new, but the owner of the protected 
process holds that the product of the defendant is made by the protected process he 
failed to identify the process used by the defendant despite that reasonable measures 
have been taken".  
Therefore, in above cases, the process used by the defendant will be considered to be the protected 
process if the defendant cannot prove to the contrary. WT/ACC/VNM/44 
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  - Geographical indications, including appellations of origin 
Question 195 The definition of a geographical indication in  Article 4.22 does not comply with the TRIPS 
definition, as it only describes a geographical indi cation as a "sign used to indicate a product 
originating from a specific area, locality, regio n or country", without reference to the quality, 
characteristics or reputation being attributable to  the origin of the goods.  This may have been 
an oversight, as Article 79.2 goes on to state that a geographical indication needs to have 
"reputation, quality or characteristics essentially attributable to the geographical conditions of 
the area, locality, territory or country corresponding to such ge ographical indication" in order 
to be eligible for protection.  
Answer
: 
The definition stated in Article 22.1 of TRIPS in  its nature is the definition of a geographical 
indication eligible for protection.  
The definition on geographical indication and the conditions for a geographical indication to be 
protected in the Intellectual Property Law of Viet  Nam are separated into two Articles of 4.22 and 
79.2, respectively.  The same is applied consisten tly to all other intellectual property objects (work, 
invention, industrial design, trademark, layout d esign, business secret, etc) so as to ensure consistence 
and science in the structure and language of the law. 
In spite of the difference in the structure, the meaning of definition of a geographical indication 
eligible for protection in Article 22.1 of the TRIPS and Vietnamese Intellectual Property Law 
(combination of Articles of 4.22 and 79.2) is the sa me.  Therefore, the Intellectual Property Law is 
consistent with TRIPS. 
Question 196 
Article 88 refers to who has the "[r]ight to regis tration of geographical indications", and states 
that "[t]he right to register geographical indi cations of Viet Nam belongs to the State". 
- How do foreign applicants have the right to registration of geographical indications 
under Law No. 50, as opposed to the "mode of filing registration applications" set out in 
Article 89?  
Answer : 
The Intellectual Property Law commits to protect ge ographical indications of Viet Nam as well as 
other countries in conformity with TRIPS.  
As the TRIPS just provides for subjects matter, conditions and level of pr otection of geographical 
indications without stipulating right holders thereo f, therefore Vietnamese Intellectual Property Law 
introduces provisions on entities having the right to re gistration, ownership, management and use of 
geographical indications in applicable only to Vi etnamese geographical indications.  For foreign 
geographical indications, Viet Nam respects forei gn national law. Particul arly, regarding entities 
having the right to registration of geographical  indications, according to Article 80.2 of the 
Intellectual Property Law (in conformity with Artic le 24.4 of TRIPS), a geographical indication is 
only protected in Viet Nam when it is protected in  its country of origin.  Therefore, any entities 
having the right to use or to file application for re gistration of geographical indications in its country 
will have right to file application for registration of  such geographical indications in Viet Nam.  The 
mode of exercise of the right to registration (direc tly or through a lawful representative in Vietnam)  WT/ACC/VNM/44 
 Page 79 
 
 
  shall comply with Article 89 of the Intellectual Property Law.  In Viet Nam's view, two provisions, 
one on entities having right to registration and the ot her on mode of filing registration application for 
geographical indication in the Intellectual Property Law are not contrary.  For example, the National 
Bureau of Inter-profession of Cognac (BNIC) has filed through France Embassy in Viet Nam the 
application for registration of "Cognac", which is currently protected in Viet Nam.    
Question 197 Further, Article 121 states that the "owner of Viet Nam's  geographical indications is the State", 
and that the State then regulates the use of Vietnamese geographical indications.   
- How is the ownership and regulation of fo reign owned geographical indications treated 
under Law No. 50? 
Answer
: 
Regarding the right holder of ownership, manageme nt and use, the Intellectual Property Law just has 
specific provisions on Vietnamese geographical indi cations.  For foreign geographical indications, 
any entities having right to ownership, management  and use such geographical indication in its 
countries of origin will be recorded as such in Re gistry of Geographical Indication in Viet Nam.  
However, the exercise of ownership, management and use of geographical indications in Viet Nam 
shall comply with relevant provisions in Chapter IX of Intellectual Property Law. 
The conformity with provisions of TRIPS on prot ection of geographical indications is ensured in 
Article 5.3 of Intellectual Property Law as follows: "W here the provisions of the international treaties 
to which the Socialist Republic of Viet Nam is part y contravene the provisions of this Law, the former 
shall be applied".  
- Enforcement Question 198 The draft Report section on enforcemen t needs significant revisions.   
Answer
: 
Viet Nam is updating and revising this secti on as per Working Party member's suggestion. 
Question 199 
Since the Intellectual Property Law does not provide  expressly for criminal penalties, but makes 
clear that such penalties are to be provided for under the Criminal Code and regulations, one 
must look to those in order to make a determin ation of TRIPS compliance.  It would be helpful 
in our evaluation of the relevant Criminal Code penalty provisions if we were provided with the 
definitions that will be set out in implementing regulations or judicial sentencing guidelines 
relating to the various gradations that are used in the Criminal Code, i.e. "serious consequences", "very serious consequences, " and "particularly serious consequences." 
Answer
: 
The use of terminologies of "serious consequences ", "very serious consequences," and "especially 
serious consequences" in the legal documents on crimes and criminal procedures as well as 
application of legal provisions on such consequences in practical judgment on crimes in Viet Nam 
have been implemented in Viet Nam for a long time.   However, the idea of criminal procedures has WT/ACC/VNM/44 
Page 80  
 
  only now been extended to the Intellectual Property  area under the Law on Intellectual Property 
No. 50/2005/QH11 on 29 November 2005. 
For example, prior to the passage of this Law, Paragraph 3.4 of the Joint Circular of Supreme 
People’s Court, Supreme People’s Prosecution, Ministry of Public Security and Ministry of Justice No. 02/2001/TTLT-TANDTC-VKSNDTC-BCA-BTP  of 25 December 2001 on guiding the 
implementation of certain provisions of Chapter XI V – "Crime of ownership violation" of the 1999 
Criminal Code provides as follows: 
"In order to determine circumstances in which cr ime causes "serious consequences", "very serious 
consequences," and "especially serious consequences", in principle consequences are to be determined 
completely and comprehensively (damages in asset, in life, in health and other immaterial damages)." 
The practice has shown that apart from damages in life, health and asset, there are also immaterial 
consequences which negatively impact on the implem entation the Party’s direction, the State policies, 
security, social safety and order, etc.  In su ch cases, "serious consequences", "very serious 
consequences" and "especially serious consequen ces" caused by crime shall be determined on the 
circumstances of the case on particular cases. 
VI. POLICIES AFFECTING TRADE IN SERVICES Question 200 This section will need review and revision in li ght of the results of bilateral negotiations on 
services commitments and to reflect significant ch anges in Viet Nam's  regulatory legislation.  
In addition, we will be proposing language on licensing transparency and more detailed text 
concerning distribution, express delivery, road  transportation, and telecommunications.  
Answer
: 
We are looking forward to receiving these texts. 
Question 201 
On 29 September 2005, Viet Nam promulgated Decree No. 238/2005/QD/TTg allowing foreign 
entities or individuals to increase the share of lis ted Vietnamese enterprises they can own from 
30 per cent to 49 per cent. With reference to paragraph 461, and in light of Decree No. 238, 
Viet Nam indicated at the recent Working Party meeting that it would move to increase an individual foreign legal entity or foreign individu al’s allowable share of registered capital in a 
listed Vietnamese joint-stock commercial bank or joint-stock financial company to 30 per cent.  
Can Viet Nam update this section to refl ect the current policies in this area? 
Answer
: 
According to Decision No. 36/2003/QD-TTg date d 11 March 2003 on issuing the Regulation on 
contributing capital and purchasing shares of forei gn investors in Vietnamese enterprises, the 
maximum ratio of contributing capital and buying  shares of foreign investors in Vietnamese 
enterprises, including banks is equal to 30 per cent of the charter capital of Vietnamese enterprises. 
As for the ownership ratio of foreign organizations  and individuals in enterprises listed in the stock 
market, Decree No. 238/2005/QD-TTg only adjusts th e ownership ratio of foreign partners in 
enterprises which are listed, registered for doing tr ansaction and doing business in the stock market. It 
allows foreign individuals and or ganizations to own up to 49 per cent of the total of investment  WT/ACC/VNM/44 
 Page 81 
 
 
  certificates listed and registered for doing busin ess by a securities investment fund.  It has no 
discrimination between joint-stock financial compani es and joint-stock commercial banks.  If they list 
or register for transaction at the Securities Transacti on Centre, they will fall under the scope of this 
Decree.  However, if they are not yet listed, th ey will not fall under the scope of the same legal 
document. 
Question 202 With reference to paragraph 461 and Decree No. 22/2006/ND-CP (promulgated 
28 February 2006), we request that Viet Nam sp ecify the minimum capital requirements that 
are intended to be implemented for the various types of credit institutions covered by this 
Decree, including 100 per cent foreign invested ba nks.  We also request Viet Nam confirm that 
Decree No. 22 will permit foreign banking bran ches to establish their own ATM network.  
(Currently the Decree only refers to "transaction points" but we request information on ATMS specifically). 
Answer
: 
Paragraph 461 related to banking services has been updated and adjusted to conform to recently 
promulgated regulations of Viet Nam in banking  sector, including the Decree No. 22/2006/ND-CP 
dated 28 February 2006 (please refer to adjusted  paragraph).  Regarding the minimum capital 
requirement, Viet Nam will adjust the level of minimum capital requirement in accordance with the 
national treatment principle, regardless of dome stic or foreign credit institutions operating in 
Viet Nam. 
Regarding the ATM placement of foreign bank bran ches, Viet Nam already made a commitment on 
these issues in its offer for the banking sector  within the framework of its WTO accession 
negotiations. Viet Nam confirms to fully impl ement its international commitments, upon which 
foreign bank branch operating in Viet Nam sha ll enjoy full MFN and NT in the placement of 
Automatic Teller Machines (ATMs). 
Question 203 
Paragraph 455 onwards, general comment: this section should be redrafted to reflect the new 
legislation.  
Answer : 
We take note of the comment and will work with  Members of the Working Party to redraft this 
section. 
Question 204 
What are the criteria for awarding licenses in  the financial sector (banking, insurance, 
securities)? 
Answer : 
Please find enclosed the Criteria for issuance of an  insurance service licence and the Criteria for 
issuance of a securities service licence (Annex II). 
Question 205 Proposed text for Working Party Report (paragraph 467): WT/ACC/VNM/44 
Page 82  
 
   The representative of Viet Nam confirmed that upon accession Viet Nam would ensure 
that Viet Nam's  licensing procedures a nd conditions would not act as barriers to 
market access and would not be more trade re strictive than necessary.  In accordance 
with Viet Nam's  commitments under the WTO Agreement, the Draft Protocol and its Schedule of Specific Commitments, the representative of Viet Nam confirmed that for 
those services included in Viet Nam's  Sc hedule of Specific Commitments, Viet Nam 
would ensure that:  
 (a) Viet Nam's licensing procedures and conditions were published prior to 
becoming effective;  
 (b) In that publication, Viet Nam would specify reasonable time frames for review 
and decision by all relevant authorities in  Viet Nam's  licensing procedures and 
conditions;  
 (c) Applicants would be able to request licensing without individual invitation;   (d) Any fees charged, which were not deem ed to include fees determined through 
auction or a tendering process, would be commensurate with the administrative 
cost of processing an application; 
 (e) The competent authorities of Viet Nam would, after receipt of an application, 
inform the applicant whether the app lication was considered complete under 
Viet Nam's  domestic laws and regulations and in the case of incomplete applications, identify the additional in formation that was required to complete 
the application and provide the o pportunity to cure deficiencies;  
 (f) Decisions would be taken promptly on all applications;  
 (g) If an application was terminated or denied, the applicant would be informed in 
writing and without delay the reasons for such action. The applicant would have 
the possibility of resubmitting, at its di scretion, a new application that addressed 
the reasons for termination or denial; 
 (h) If an application was approved, the applicant would be informed in writing and 
without delay.  The licence or approval would enable the applicant to start the commercial operations upon registration of  the company with [name of relevant 
Vietnamese authority] for fiscal and other similar administrative purposes.  This 
registration would be completed within 2 months of the submission of a complete file, as required by public [name of relevant Vietnamese authority] regulations, 
and in accordance with Viet Nam's  Schedule of Specific Commitments;  
 (i) Where Viet Nam required an examination to licence professionals, such 
examinations would be scheduled at reasonable intervals.   
 The Working Party took note of these commitments.  
Answer
: 
There are some proposals here that are not totally cl ear to us.  We would like to discuss with Members 
of the Working Party in order to unders tand it better before agreeing on any text.  WT/ACC/VNM/44 
 Page 83 
 
 
  VII.  TRANSPARENCY 
Question 206 With reference to paragraph 474, we  request that Viet Nam provide  further details in the report 
of the mass media outlets and internet sites where these draft legal instruments are published 
for comment. 
Answer
: 
At present, Viet Nam has neither specializing newspape r, magazine nor website that publish drafts of 
legal and normative documents.  Appropriate mean s for announcement of those drafts have been 
chosen based on the content, scope and direct impact  of the documents.  For example drafts of legal 
and normative documents that have direct effect s on the business community will be put out on the 
website (http://www.vibonline.com.vn) of the Viet  Nam Chamber of Commerce and Industry. 
Besides, Ministries and agencies also have their we bsites for publishing in Vietnamese drafts of legal 
and normative acts relating to their areas of authority.  For instance, drafts of legal and normative acts in investment to be brought out at the website www.mpi.gov.vn; trade rules and regulations to be put 
out at the web www.mot.gov.vn; documents on tax and finance to be published on the web 
www.mof.gov.vn and many other documents to be put out at the Ministry of Justice www.moj.gov.vn. 
Question 207 
Viet Nam has taken great strides in the past fi ve years to improve transparency.  Indeed, the 
degree to which Viet Nam incorporated public comme nts in the drafting of new laws last year 
was most impressive.  We support the proposed  commitment language for this section and we 
request Viet Nam to remove the brackets. 
Answer
:  
There are some proposals here that are not totally cl ear to us.  We would like to discuss with Members 
of the Working Party in order to unders tand it better before agreeing on any text. 
 
_______________ WT/ACC/VNM/44 
Page 84  
 
  ANNEX I 
List of culture and information legal documents with stipulations on types of cultural products 
prohibited from popularization, circulation and import in Vietnam  
(those which are reactionary or sup erstitious or pornographic, etc.) 
Legal documents with general stipulations on import and export: 
1.  Circular No. 48/2006/TT-BVHTT of 28 April 2006 by the Ministry of Culture and 
Information guiding the implementation of the government's Decree No. 12/2006/ND-CP detailing the implementation of the Trade La w as regards international goods sales and 
purchases and activities such as agenting, buying, selling, processing or tr ansiting goods with 
foreign partners: Point 2.2, Section 2, Part I, and Section 2, Part II.
  
2.  Decree No. 88/2002/ND-CP of 7 November  2002 on the management of the export and 
import of cultural products not for profitable purposes: Section 1, Article 4, Chaper II.    
Legal documents specializing in culture and information 
Cultural activities and services: 
4.  Decree No. 11/2006/ND-CP of 18 January 20 06 issuing regulations for the operation of 
cultural activities and business in public cu ltural services: Article 4, Chapter 1. 
5.  Circular No. 08/2000/TT-BVHTT of 28 April 2000 by the Ministry of Culture and 
Information guiding the management of computer games: Article 4, Part I. 
6.  Decision No. 41/2004/QD-BVHTT of 2 July 2004 by the Minister of Culture and Information 
issuing regulations for professional art perfo rmances and their organization: Article 3, 
Chapter I. 
7.  Decision No. 41/2002/QD-BVHTT of 31 December 2002 by the Minister of Culture and 
Information issuing regulations for exhibition hosting: Article 4, Chapter I.   
8.  Decision No. 07/2003/QD-BVHTT of 13 March 2003 by the Minister of Culture and 
Information issuing regulations for music teaching: Article 4, Chapter I.   
9.  Decision No. 55/1999/QD-BVHTT of 5 August 1999 by the Minister of Culture and 
Information issuing regulations for the productio n, export, import, circulation and trade in 
audio tapes and CDs and music and theater videos , VCDs and DVDs: Article 3, Chapter I.   
Fine arts and photography: 
10.  Decision No. 10/QD-BVHTT of 15 May 2000 by the Minister of Culture and Information 
issuing regulations for the operation of fine arts  exhibition and galleries: Article 4, Chapter I   
11.  Decision No. 29/2000/QD-BVHTT of 20 Nove mber 2000 by the Minister of Culture and 
Information issuing regulations for photographic activities: Article 4, Chapter I.   
12.  Decision No. 17/2004/QD-BVHTT of 5 May 2004 by the Minister of Culture and 
Information issuing regulations for the repr oduction of plastic art works: Article 11, 
Chapter II.  
Advertising: 
13.  Ordinance on Advertising No. 39 /2001/PL-UBTVQH of 16 November 2001: Article 5, 
Chapter I.    
14.  Decree No. 24/2003/ND-CP of 13 March 2003 detailing the implementation of the Ordinance 
on Advertising: Article 3, Chapter I.  WT/ACC/VNM/44 
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  15.  Circular No. 43/2003/TT-BVHTT of 16 July  2003 guiding the implementation of Decree 
No. 24/2003/ND-CP of 13 March 2003 detailing the implementation of the Ordinance on 
Advertising: Point 2 (e), Section I.  
The cinema: 
16.  Decree No. 48/CP by the government on th e organization and operation of the cinema: 
Article 2, Chapter 1 (section 3). 
17.  Decision No. 2455/QD-DA of 9 August by the Minister of Culture and Information issuing 
regulations for movie approval: Article 4, Chapter I.   
The press: 
18.  The Law on the Press 1989: Article 10, Chapter III.   
19.  Decree No. 133 of 20 April 1992 by the Counc il of Ministers detailing the implementation of 
the Law on the Press 1989: Article 4, Chapter I.   
20.  Decree No. 51/2002/ND-CP of 26 Ap ril 2005 by the government detailing the 
implementation of the Law on the Press and th e Law on Amendment and Supplementation of 
the Law on the Press: Article 5, Chapter III. 
21.  Decision 28/2002/QD-BVHTT of 21 November 2002 by the Minister of Culture and 
Information issuing regulations for the publi cation of newsletters, brochures and leaflets; 
issuance of press releases; running and distri bution of newsletters on electronic screens by 
foreign agencies or organizations or legal entities with foreign elements in Vietnam: Article 5, 
Chapter I.  
Publishing: 
22.  The Law on Publishing No. 30/2004/QH11: Article 10, Chapter I . 
Libraries: 
23.  The Ordinance on Libraries No. 31/PL-UBTVQH: Article 5, Chapter I.   
The Internet: 
24.  Circular No. 02/2005/TTLT-BCVT-VHTT-CA-K HDT of 14 July 2005 on the management of 
Internet agents: Clause 3 (a,b). 
25.  Decision No. 27/2002/QD-BVHTT of 10 Oct ober 2003 by the Ministry of Culture and 
Information issuing regulations for the manage ment and licensing of information supply and 
establishment of electronic news websites on the Internet: Article 4, Chapter I.  
Publication and popularization of works abroad:  
26.  Decree No. 72/2000/ND-CP of 5 December 2000 by the government on the publication and 
popularization of works abroad: Article 5. 
 
 
  
  WT/ACC/VNM/44 
Page 86 ANNEX II 
Criteria For Insurance Services Licen se and Securities Services License  
I. Criteria for an Insurance Services License  
No. Name of license Legal framework Crite ria for an insurance business license 
1. Licence for 
establishment of an insurance, 
insurance broker 
representative 
office in 
Viet Nam.  Insurance Business Law. Article 107 Conditions for issuance of lic ence for establishment of a representative office in Viet Nam  
The conditions for issuance of a licence for establishment of a representative office in Viet Nam to a foreign insurer 
or insurance broker shall comprise: 
1.  The foreign insurer or insurance broker has been operating for five years; 
2.  The foreign insurer or insurance broker has a co-operative relationship with Vietnamese bodies and 
organizations. 
2. Licences for 
establishment and 
operation of an 
insurer.  Insurance Business Law. Article 63  Conditions for i ssuance of licences for es tablishment and operation 
The conditions for issuance of a licence for establishment and operation shall comprise: 
1.  he amount of paid-up charter capital is not less than the level of legal capital required by the regulations of the 
Government; 
2.  here is an application requesting issuance of a licence for establishment a nd operation in accordance with 
Article 64 of this Law; 
3.  The form of the enterprise and its charter comply with  the provisions of this Law and the provisions of other 
relevant laws; 
4.  The management personnel
1  have managerial skills and have expertise and professional qualifications in 
insurance.2 
3. Licences for 
establishment and 
operation of an  
insurance broker. Insurance Business Law. Article 93  Issuance  of licences for establishment and operation 
The issuance of licences for establishm ent and operation of insurance broker s shall be carried out in accordance 
with the provisions in Articles 62 and 63, Clauses 1, 2, 3 and 4 of Article 64, and articles 65, 66, 67, 68 and 69 of 
this Law. Article 106  Conditions for issuance of licence for establishment and operation 
The conditions for issuance of a licence for establishment and operation to an insurer or insurance broker with 
foreign owned capital shall comprise: 1.  The conditions prescribed in Article 63 of this Law; 
2.  The foreign insurer or foreign insurance broker is currently legally operating and has normal financial 
standing; 
3.  The foreign insurer or foreign insurance broker is licensed by the authorized body of its country to conduct 
insurance business or to conduct insurance broking in the sectors in which it proposes to operate in Viet Nam. 
                                                      
1 The literal translation is "personnel in management and operation". 
2 There is no "fit and proper person" condition for management pers onnel of an insurer, as there is for individual insurance age nts in Article 86.3.  
   WT/ACC/VNM/44
 Page 87II.  Criteria for a Securities Services License 
No. Name of license Legal framework Criteria for a securities business license 
1. Securities business 
license. Decree No. 144/2003/ND-CP 
dated 28 November 2003 of the 
Government on securities and securities markets; 
 
Decision No. 55/2004/QD-BTC dated 17 June 2004 of the Minister 
of Finance to promulgate the 
Regulation on organization and 
operation of a securities company. 
 A securities company, which applies for a securitie s business licence shall be either limited liability 
company or joint-stock company and meet the following requirements:  
- Having set up a business plan in line with the objectives of socio-economi c development and growth 
of the securities industry; 
- Having adequate premises and technical facilities for securities business; 
- Having the minimum legal capital as prescribed for each type of securities business (Brokerage: 
VND 3 billion; Dealing on own accounts: VND 12 billion; Underwriting: VND 22 billion; Financial 
and securities investment advisory: VND 3 billion; Securities investment portfolio management:  
VND 3 billion); 
- Having its CEO, Vice-CEO and its practitioners qu alified for being granted the securities practitioner 
licence by the State Securities Commission; 
- The underwriting licence shall be granted only to securities companies that have the business licence 
of securities dealing (dealing on their own accounts). 
2. Practitioner license; 
Fund management practitioner license. Decree No. 144/2003/ND-CP 
dated 28 November 2003 of the Government on securities and 
securities markets; 
 Decision No. 55/2004/QD-BTC 
dated 17 June 2004 of the Minister 
of Finance to promulgate the Regulation on organization and 
operation of the securities 
company;  
Decision No. 73/2004/QD-BTC 
dated 28 November  2004 of the Minister of Finance to promulgate 
the Regulation on organization 
and operation of the investment 
securities fund and investment 
securities fund management company. Upon request by the securities company, the investment  fund management company, the securities business 
practitioner licence shall be granted to individuals working for that company and meeting the following requirements: 
- Having adequate legal and civil behavior capacity; 
- Meeting the requirements of qualification (having relevant university degree(s)); - Having obtained all securities professional certif icates granted by the State Securities Commission; 
- Not being criminally prosecuted, or serving impris onment    terms, or having the practitioner license 
 revoked by the Court.  
A foreign citizen shall have to meet the following requirements to be granted a securities business 
practitioner license:  - Meeting the requirements of qualification (having relevant university degree); 
- Not being criminally prosecuted, or serving impris onment    terms, or having the practitioner licence 
revoked by the Court; 
- Having practitioner licence granted by relevant foreign regulator and having the Certificate of 
applicable laws in the securities industry granted by SSC; 
- Having working permit in Viet Nam.   
  WT/ACC/VNM/44 
Page 88 No. Name of license Legal framework Criteria for a securities business license 
3. License for offering 
investment fund units 
to public.  Decree No. 144/2003/ND-CP 
dated 28 November 2003, on 
securities and securities markets;   
Decision No. 73/2004/QD-BTC 
dated 18 November 2004 of Minister of Finance to promulgate 
the regulation on organization and 
operation of securities investment fund and fund management 
companies.   - Having minimum chartered capital of VND 5 billion; 
- Issuing investment units to not less than 50 investors; 
- Having appropriate scheme on investment of the proceeds obtained from issuance of the investment 
units in accordance with the applicable laws.  
4. Registration for 
establishment of public investment 
fund and listing of 
investment units.  Decree No. 144/2003/ND-CP 
dated 28
 November 2003, on 
securities and securities markets; 
 
Decision No. 73/2004/QD-BTC dated 18
 November 2004 of 
Minister of Finance to promulgate 
the regulation on organization and 
operation of securities investment 
fund and fund management companies.  Eligible application shall include the following documents:  
 - Application for registration of establishment of securities investment fund; 
- Article of Association of securities investment fund; 
- Contract for management of fund assets; - List of participants contributing capital for establishment of securities investment fund; 
- Prospectus; 
- List and brief biographies of members of repr esentative board; written commitments of independent 
members in the representative board for their inde pendence with the fund management company; 
- Commitment of founders and members of representative board for no transfer of their investment 
fund units within 2 years from the date of listing;  
- Minutes and other relevant records to General Meeting of Investors  
5. Licenses for 
management of securities investment 
fund. Decree No. 144/2003/ND-CP 
dated 28
 November 2003, on 
securities and securities markets;  
 
Decision No. 73/2004/QD-BTC dated 18
 November 2004 of 
Minister of Finance to promulgate 
the regulation on organization and operation of securities investment 
fund and fund management 
companies.  - Being joint stock companies, limited liabilit y company, having minimum legal capital of 
VND 5 billion;  
- Having sufficient premises and facilities for fund management operation; 
- CEO, Vice CEO and other executives of the fund ar e qualified to be grante d the securities practitioner 
licence of investment fund management.   
   WT/ACC/VNM/44
 Page 89No. Name of license Legal framework Criteria for a securities business license 
6. License of securities 
depository. Decree No. 144/2003/ND-CP 
dated 28 November 2003 on 
securities and securities markets;  
Decision No. 60/2004/QD-BTC 
by the Financial Minister to promulgate regulation on 
securities registry, depository, 
clearing and settlement. Criteria for licensing securities depository licence to domestic commercial banks and branches of foreign 
banks: 
- Having licence for establishmen t and operation in Viet Nam; 
- Having sound financial status; 
- Having sufficient infrastructure for providing se curities registry, depository, clearing and settlement 
services; 
- Having at least two professional practitioners an d a member of Management Board who are experts 
on securities; 
- Foreign banks having branches in Viet Nam is permitted to provide securities depository services in 
accordance with laws of th eir original country; 
- Securities firms are permitted to provide securities depository service. 
7. License for 
stock/bond/ investment fund unit 
listing. Decree No. 144/2003/ND-CP 
dated 28 November 2003 on securities and securities markets; 
 
Circular No. 59/2004/TT-BTC dated 28 November 2004 by 
Ministry of Finance providing 
guidelines for stock/bond listing 
on securities markets. 1.  Stock Listing: 
 - Being joint stock company with chartered capital not less than VND 5 billions  - Having been profit making for two consecutive years right before the year of filing the listing 
application; 
 - Having members of Board of Directors, Management Board, and Supervision Board pledge on 
holding at least 50% of their current stock holding in 3 years since the day of listing; 
  Having at least 20% of company’s equity capital held by outside 50 shareholders (15% in the case 
where companies have equity capital of more than VND 100 billions). 
 
2.  Bond Listing:  - Being joint stock company, limited liability co mpany with the chartered capital not less than 
VND 10 billions; 
 - Having been profit making for 2 consecutive years right before the year of filing the listing 
application and having a sound financial condition; 
 - Having at least 50 bond holders. 
 3.  Government bond is listed upon the request of issuers 
 
4.  Listing of investment fund unit:  - The total value of investment fund units to be issued is not less than VND 5 billions; 
 - Having at least 50 investment unit holders.  
8. Registration for public 
offering of stock (instead of License of 
stock public offering). Decree No. 144/2003/ND-CP 
dated 28 November 2003 on securities and securities markets; 
 
Circular No. 60/2004/TT-BTC dated 18 June 2004 of Ministry of 
Finance providing guidelines on 
public offering of stock. - Having the minimum chartered capital of VND 5 billion at time of securities public offering 
registration; 
- Having been profit making in the year prior to the one of applying for public offering registration; 
- Having the feasibility study to utilize the proceeds from th e issuance of shares approved by General 
Shareholder Meeting; 
- Offering of shares done by market intermediaries; 
- Having financial statements independently audited.  
  WT/ACC/VNM/44 
Page 90 No. Name of license Legal framework Criteria for a securities business license 
9. Registration for a 
public offering of 
bond.  Decree No. 48/ ND-CP dated 
11 July 1998 of The Government 
on Securities and securities market; 
 
Circular No. 75/TT-BTC dated 23 July 2004 of the Ministry of 
Finance providing guidelines on a 
public offering of bond. - Having a minimum chartered capital of VND 10 billion at time of public offering registration; 
- Having been profit making in the year before the one of public offering registration; 
- Having the feasibility study to utilize the proceeds obtained from th e issuance of bonds and to fulfill 
the obligations to the investors approved by The Board of Directors or Board of members or capital 
owners; 
- Having the public offering done by an underwriter; - Designating the bondholders’ trustee. 
 
 
Note:   Criteria for securities service licensing is now being provided for in Decree No. 144/2003/ND-CP dated 28 November 2003 of th e Government on securities and 
securities markets.  This Decree will be re placed by the Securities Law which will tent atively be discussed and passed in the 2nd half of 2006 by the National Assembly. 
  WT/ACC/VNM/44 
 Page 91 
 
 
   
ANNEX III 
Table 8 (a):  Schedule of Commitments on Import Trading Rights  
HS Description Schedule Rationale 
  Pharmaceutical products 
3003 Medicaments nesoi of mixtures, not dosage etc form... 2009 Essential to human life 
3003.10. 10 - - Containing amoxicillin (INN) or its salts    
3003.10. 20 - - Containing ampicillin (INN) or its salts    
3003.10. 90 - - Other    
3003.20. 00 - Containing other antibiotics    
3003.31. 00 - - Containing insulin   
3003.39. 00 - - Other   
3003.40. 10 - - Antimalarial    
3003.40. 90 - - Other    
3003.90. 10 - - Containing vitamins   
3003.90. 20 - - Containing analgesics or antipyretics, whether or not 
containing antihistamines    
3003.90. 30 - - Other preparations for the treatment of coughs and 
colds, whether or not c ontaining antihistamines   
3003.90. 40 - - Antimalarial    
3003.90. 90 - - Other    
3004 Medicaments nesoi, mixed or not, in dosage etc fm... 2009 Essential to human life 
3004.10. 11 - - - Containing penicillin G or its salts (excluding 
penicillin G benzathin)   
3004.10. 12 - - - Containing phenoxymethyl penicillin or its salts     
3004.10. 13 - - - Containing ampicillin or  its salts, for taking orally    
3004.10. 14 - - - Containing amoxycillin or its salts, for taking orally   
3004.10. 19 - - - Other    
3004.10. 21 - - - Ointment   
3004.10. 29 - - - Other      
3004.20. 11 - - - For taking orally    
3004.20. 12 - - - Ointment   
3004.20. 19 - - - Other                 
3004.20. 21 - - - For taking orally     
3004.20. 22 - - - Ointment   
3004.20. 29 - - - Other     
3004.20. 31 - - - For taking orally    
3004.20. 32 - - - Ointment   
3004.20. 39 - - - Other      
3004.20. 41 - - - Containing gentamycines or derivatives thereof, for 
injection    
3004.20. 42 - - - Containing lincomycins or derivatives thereof, for 
taking orally    
3004.20. 43 - - - Ointments   
3004.20. 49 - - - Other       
3004.20. 51 - - - For taking orally   
3004.20. 52 - - - Ointments   
3004.20. 59 - - - Other    
3004.20. 60 - - Containing isoniazide,  pyrazinamide or derivatives 
thereof, for taking orally     
3004.20. 90 - - Other      
3004.31. 00 - - Containing insulin   
3004.32. 10 - - - Containing hydroc ortisone sodium succinate   
3004.32. 20 - - - Containing dexamethasone or its derivatives   
3004.32. 30 - - - Containing fluocinolone acetonide   
3004.32. 90 - - - Other    
3004.39. 10 - - - Containing adrenaline    
3004.39. 90 - - - Other    
3004.40. 10 - - Containing morphine or  its derivatives, for injection   WT/ACC/VNM/44 
Page 92  
 
  HS Description Schedule Rationale 
3004.40. 20 - - Containing quinine hydrochloride or dihydrochloride, 
for injection   
3004.40. 30 - - Containing quinine sulphate or bisulphate, for taking 
orally   
3004.40. 40 - - Containing quinine or its salts and anti-malarial 
substances, other than goods of subheadings 3004.10 to 
30    
3004.40. 50 - - Containing papaverine or berberine    
3004.40. 60 - - Containing theophylline     
3004.40. 70 - - Containing atropin sulphate    
3004.40. 90 - - Other    
3004.50. 10 - - Syrups and drops of vitamins, of a kind suitable for 
children    
3004.50. 20 - - Containing vitamins A, other than goods of subheading 
3004.50.10 and 3004.50.79    
3004.50. 30 - - Containing vitamins B1, B2, B6 or B12 , other than 
goods of subheadings 3004.50.10, 3004.50.71 and 
3004.50.79    
3004.50. 40 - - Containing vitamins C, other than goods of 
subheadings 3004.50.10 and 3004.50.79    
3004.50. 50 - - Containing vitami ns PP, other than goods of 
subheadings 3004.50.10 and 3004.50.79    
3004.50. 60 - - Containing other vitamins, other than goods of 
subheadings 3004.50.10 and 3004.50.79      
3004.50. 71 - - - Containing B complex vitamins    
3004.50. 79 - - - Other    
3004.50. 90 - - Other    
3004.90. 10 - - Specialised medicine s for cancer, AIDS or other 
intractable diseases      
3004.90. 21 - - - Sodium chloride solution   
3004.90. 22 - - - 5% glucose solution    
3004.90. 23 - - - 30% glucose solution     
3004.90. 29 - - - Other    
3004.90. 30 - - Antiseptics   
3004.90. 41 - - - Containing procaine hydrochloride   
3004.90. 49 - - - Other    
3004.90. 51 - - - Containing acetyls alicylic acid, paracetamol or 
dipyrone (INN)   
3004.90. 52 - - - Containing chlorpheniramine maleate   
3004.90. 53 - - - Containing diclofenac     
3004.90. 54 - - - Analgesic balm oil, solid or liquid     
3004.90. 59 - - - Other     
3004.90. 61 - - - Containing artemisi nin, artesunate or chloroquine 
(INN)   
3004.90. 62 - - - Containing primaquine    
3004.90. 69 - - - Other     
3004.90. 71 - - - Containing pipera zine or mebendazole (INN)   
3004.90. 72 - - - Containing dichlorophen (INN)    
3004.90. 79 - - - Other   
3004.90. 80 - - Transdermal therapeutic systems (TTS) patches for 
cancer or heart diseases      
3004.90. 91 - - - Containing sulpiride (INN), cimetidine (INN), 
ranitidine (INN), aluminium hydroxide or magnesium 
hydroxide or oresol        
3004.90. 92 - - - Containing piroxicam (INN) or ibuprofen (INN)   
3004.90. 93 - - - Containing phenobarbital, diazepam, chlorpromazine    
3004.90. 94 - - - Containing salbutamol (INN)   
3004.90. 95 - - - Closed sterile wate r for inhalation, pharmaceutical 
grade   
3004.90. 96 - - - Containing o-methoxyphenyl glyceryl ether 
(Guaifenesin)     WT/ACC/VNM/44 
 Page 93 
 
 
  HS Description Schedule Rationale 
3004.90. 97 - - - Nose-drop medicaments containing naphazoline, 
xylometazoline or oxymetazoline      
3004.90. 98 - - - Sorbitol    
3004.90. 99 - - - Other    
3006 Pharmaceutical goods in note 4 to chapter 30... 2009 Essential to human life 
3006.10. 00 - Sterile surgical catgut, similar sterile suture materials 
and sterile tissue adhesivesfor surgical wound closure; 
sterile laminaria and sterile laminaria tents; sterile 
absorbable surgical or dental haemostatics   
3006.20. 00 - Blood-grouping reagents   
3006.30. 10 - - Barium sulfate (for taking orally)    
3006.30. 20 - - Reagents of microbial origin for veterinary biological 
diagnosis    
3006.30. 30 - - Other microbial diagnostic reagents     
3006.30. 90 - - Other    
3006.40. 10 - - Dental cements and other dental fillings    
3006.40. 20 - - Bone recons truction cements    
3006.50. 00 - First-aid boxes and kits   
3006.60. 00 - Chemical contraceptive preparations based on 
hormones, on other products of heading 29.37 or on 
spermicides   
3006.70. 00 - Gel preparations desi gned to be used in human or 
veterinary medicine as a lubr icant for parts of the body for 
surgical operations or physic al examinations or as a 
coupling agent between the body and medical instruments    
3006.80. 00 - Waste pharmaceuticals    
  Cinematographic film  
3706 Motion-picture film, exposed and developed... 2009 Sensitive to public morals 
3706.10. 10 - - Newsreels, travelogues, t echnical and scientific films    
3706.10. 20 - - Consisting only of sound track    
3706.10. 91 - - - With picture taken abroad    
3706.10. 99 - - - Other    
3706.90. 10 - - Newsreels, travelogues, t echnical and scientific films    
3706.90. 20 - - Consisting only of sound track    
3706.90. 90 - - Other    
  Unused postage, printed cards, calendars...  
4907 Unused postage, check forms, banknotes, st ock, etc... 2009 Sensitive to public morals 
4907.00. 10 - Banknotes, being legal tender    
4907.00. 20 - Unused postage stamps    
4907.00. 30 - Revenue or similar stamps    
4907.00. 40 - Stock, share or bond cer tificates and si milar documents 
of title; cheque forms    
4907.00. 90 - Other    
4909 Printed or illustrated post cards, greeting cards, etc.... 2009 Sensitive to public morals 
4909.00. 00 Printed or illustrated postcards; printed cards bearing 
personal greetings, messages or announcements, whether 
or not illustrated, with or without envelopes or trimmings.   
4910 Calendars, calendar blocks of any kind,  printed... 2009 Sensitive to public morals 
4910.00. 00 Calendars of any kind, printe d, including calendar blocks.   
4911 Printed matter nesoi, incl print pictures & photos... 2009 Sensitive to public morals 
4911.10. 00 - Trade advertising mate rial, commercial catalogues and 
the like    
4911.91. 10 - - - Anatomical or bot anical instruction charts and 
diagrams and the like    
4911.91. 20 - - - Other wall pictures  and diagrams for instructional 
purposes; pictures, designs and photographs for 
incorporation into books, advertising circulars or 
commercial catalogues    
4911.91. 90 - - - Other    WT/ACC/VNM/44 
Page 94  
 
  HS Description Schedule Rationale 
4911.99. 10 - - - Printed cards for jewellery or for small objects of 
personal adornment or for articles of personal use 
normally carried in the pocket, in the handbag or on the 
person    
4911.99. 20 - - - Printed stickers for explosives    
4911.99. 90 - - - Other   
  Industrial printers  
8442 Machinery etc nesoi for type-setting, making printing 
plates etc... 2009 Sensitive to public order 
8442.10. 10 - - Electrically operated   
8442.10. 20 - - Not electrically operated   
8442.20. 10 - - Electrically operated   
8442.20. 20 - - Not electrically operated   
8442.30. 11 - - - Impressed fl ongs and matrices    
8442.30. 12 - - - Machinery for type founding machines    
8442.30. 19 - - - Other    
8442.30. 21 - - - Impressed fl ongs and matrices    
8442.30. 22 - - - Machinery for type founding machines    
8442.30. 29 - - - Other    
8442.40. 10 - - Of electrically operated machines, apparatus or 
equipment    
8442.40. 21 - - - Of type-founding or type-setting machinery    
8442.40. 29 - - - Other    
8442.50. 10 - - Printing type of all kinds    
8442.50. 90 - - Other   
8443 Print machinery excluding ink-jet printers 
(HS 84435100), machinery for used ancillary to printing 
nesoi... 2009 Sensitive to public order 
8443.11. 10 - - - Electrically operated    
8443.11. 20 - - - Not electrically operated    
8443.12. 10 - - - Electrically operated    
8443.12. 20 - - - Not electrically operated    
8443.19. 10 - - - Electrically operated    
8443.19. 20 - - - Not electrically operated    
8443.21. 10 - - - Electrically operated    
8443.21. 20 - - - Not electrically operated    
8443.29. 10 - - - Electrically operated    
8443.29. 20 - - - Not electrically operated    
8443.30. 10 - - Electrically operated    
8443.30. 20 - - Not electrically operated    
8443.40. 10 - - Electrically operated    
8443.40. 20 - - Not electrically operated    
8443.59. 10 - - - Platen presses   
8443.59. 20 - - - Screen printing machinery for the manufacture of 
PCB/PWBs [ITA/2 (AS2)]    
8443.59. 90 - - - Other   
8443.60. 10 - - Electrically operated   
8443.60. 20 - - Not electrically operated   
8443.90. 10 - - Of screen printing machinery for the manufacture of 
PCB/PWBs [ITA/2 (AS2)]   
8443.90. 20 - - Other, for electri cally operated machines   
8443.90. 90 - - Other    
  Other machinery  
8525 Transmission apparatus fo r radio-telephony etc; TV 
camera & other video camera recorders excluding mobile 
phones (HS 852520) and consumer cameras 
(HS 85254010) 2009 Sensitive to national 
security 
8525.10. 10 - - For radio-broadcasting    
8525.10. 21 - - - Video senders   
8525.10. 22 - - - Central monitoring systems    
8525.10. 23 - - - Telemetry monitoring systems    
8525.10. 29 - - - Other     WT/ACC/VNM/44 
 Page 95 
 
 
  HS Description Schedule Rationale 
8525.10. 30 - - Data compression tools    
8525.30. 90 - - Other    
8525.40. 20 - - Other still image video cameras    
8525.40. 30 - - Digital cameras    
8525.40. 40 - - Other video camera recorders   
8526 Radar apparatus, radio navi gational aid apparatus and 
radio remote control apparatus 2009 Sensitive to national 
security 
8526.10. 90 - - Other    
8526.91. 90 - - - Other    
8526.92. 00 - - Radio remote control apparatus   
Note:  For the purpose of this Table, schedule st arts from 1 January of  the specified year. 
 
__________